Financial Institutions

REITs/U.S.
Special Report
U.S. Equity REIT Liquidity Update:
Hold the Applause
Analysts Overview
Steven Marks Fitch Ratings believes the maintenance of sufficient liquidity represents the primary
+1 212 908-9161 credit risk to U.S. equity REITs despite recent opportunistic actions to reduce financial
steven.marks@fitchratings.com pressures. Challenges remain, including:
Janice Svec
+1 212 908-0304
 Tenuous financing available across the capital markets.
janice.svec@fitchratings.com
 Deteriorating performance in commercial real estate and the sizable overhang of
Linda Hammel debt maturities for equity REITs looming in 2011.
+1 212 908-0303
linda.hammel@fitchratings.com  Limited visibility regarding net operating income capitalization rates, which
continues to stress commercial property values constraining the magnitude of
Sean Pattap institutional investor-secured debt lending volume.
+1 212 908-0642
sean.pattap@fitchratings.com Recent improvements in financial markets indicate some positive momentum. Four
Fitch-rated REITs have accessed the unsecured debt market since March at yields of
Kimberly Chan
+1 212 908-0346 between 7.0% and 10.75%. In addition, several REITs have executed bond tender offers
kimberly.chan@fitchratings.com in recent months, while common equity issuances of over $12 billion have enabled
REITs to reduce leverage and bolster liquidity since the beginning of 2009.
Taqim Spradley
+1 212 908-0291 Fitch has undertaken a review of its liquidity metrics and added a metric that scales a
taqim.spradley@fitchratings.com
company’s liquidity surplus or shortfall based on its size, calculated as the liquidity
Joseph Engelken surplus or deficit divided by cash flows from operating activities based on a first-
+1 212 908-0569 quarter 2009 run rate through Dec. 31, 2010. The tables on pages 47 provide an
joseph.engelken@fitchratings.com
evaluation of issuers’ liquidity by sector and rating indicating this new metric. While
Related Research most REITs possess a liquidity surplus, Fitch anticipates that more REITs will likely
have liquidity deficits starting next quarter, when Fitch will begin to include 2011
 U.S. Equity REIT Liquidity Update: debt maturities in its liquidity calculations.
The Clock is Ticking, April 2, 2009
 U.S. REIT Liquidity — On Thinning Year to date, Fitch’s rating actions have included 15 downgrades, 16 affirmations, and
Ice, Dec. 17, 2008 two upgrades. Certain downgrades have been driven by weakening liquidity profiles,
 REITs and Cost of Debt Capital:
Slow Motion Erosion, Dec. 12, 2008. while further rating downgrades may occur in instances where liquidity shortfalls
 2009 REIT Outlook: Survive and become a growing concern. Nevertheless, despite various challenges, many REITs have
Advance, Dec. 10, 2008 taken advantage of opportunities to bolster liquidity. Given that opportunities are
 Renewal and Pricing Risk for U.S. company-specific rather than broad for the sector, Fitch’s view is to “hold the
Equity REITs’ Revolving Lines of
Credit, Oct. 22, 2008
applause” on REIT liquidity and highlights the following challenges.
 Criteria for Rating U.S. Equity
REITs, Aug. 9, 2007  Likely Reduced Revolving Credit Facility Commitments: Most REITs’ unsecured
revolving credit facilities mature beyond Dec. 31, 2010. Within the tables on page
47, Fitch has reduced the borrowing capacity under revolving lines of credit by
33% for REITs that have revolving lines of credit that mature before Dec. 31, 2010
after taking into account extension options for illustrative purposes. This capacity
reduction reflects a “what if” scenario for certain REITs as revolving credit facility
maturities approach. While a limited number of REITs have either recently
extended or increased the borrowing capacity under such revolving facilities, Fitch
believes that many of these facilities will be reduced in size. For its rated
universe, Fitch does not believe that many of these facilities will be converted
from unsecured to secured given the strong lending relationships most of these

www.fitchratings.com June 23, 2009

 Financial Institutions
issuers have with their banking groups. That said, for weaker issuers across the
equity REIT universe, the prevalence of secured credit facilities will likely increase
given banks’ limited capital and concerns regarding borrower credit.
 Limited Unsecured Bond Issuances: Recent unsecured bond issuances do not
constitute a panacea for REIT liquidity, as the unsecured bond market remains
unattractive to most equity REITs. Credit spreads have tightened, but indicative
pricing across the industry remains unattractive to many companies, particularly
relative to secured debt.
 Near-Dormant CMBS Market: Liquidity remains weak in certain areas such as
secured funding in the commercial mortgage-backed securities (CMBS) market.
Although the inclusion of legacy CMBS for eligibility under the Federal Reserve’s
Term Asset Backed Securities Loan Facility beginning in July may play a role in the
restoration of investor confidence in commercial real estate, CMBS issuance
volumes are highly unlikely to be restored to pre-2008 levels.
 Reduced Bond Tender Activity: While $2.8 billion in bond tender offers executed year
to date have allowed companies to reduce uses of liquidity, such transactions have
been a byproduct of bonds trading at discounts to par, which have included securities
issued by REITs with below-investment-grade issuer default ratings (IDRs). Spreads have
tightened recently, shrinking the arbitrage opportunity bond tenders present.
 Uncertain Common Equity Issuance: With $12.4 billion in new equity raised year
to date by REITs, the re-equitization wave has enabled REITs to strengthen their
capital bases. However, investor demand may be driven in part by low share prices
relative to net asset values, while share prices of certain other equity REITs are
such that prospective equity issuances are unlikely.

Encouraging Signs Are Not Ubiquitous

Year to date, 18 REITs have launched tender offers to repurchase approximately $7.0 billion
of outstanding bonds and have tendered for approximately $3.1 billion of securities. Many
REITs that have launched tender offers have IDRs in the ‘BBB’ rating category. Fitch’s ratings
for REITs that have launched tender offers range widely, from Public Storage (which has an
IDR of ‘A’ by Fitch, with a Stable Rating Outlook) to Centro NP LLC (which has an IDR of
‘CCC’ by Fitch, with a Negative Rating Outlook). Fitch views consummated tender offers as
encouraging in that they demonstrate REITs’ ability to reduce their future funding
obligations and temporarily reduce cash interest expense by utilizing low-cost unsecured
lines of credit. Such tender offers have been affected by REITs with capacity under their
credit facilities. REITs that have not executed tender offers may have limited liquidity to
launch tender offers, while others have shorter tem funding needs to address.
Similarly, the equity issuance wave has been encouraging for REIT liquidity, as year to
date, 38 REITs have raised an aggregate of approximately $12.8 billion in proceeds.
With certain companies reluctant to issue at these prices due to resultant dilution,
liquidity across the equity markets is not uniformly strong.

Relative Inactivity in Certain Markets Indicates Capital

Remains Constrained
Year to date in 2009, $18.2 billion in CMBS have been issued but approximately
$18.1 billion of these securities were non-U.S. CMBS transactions. Insurance
companies have also reduced primary market commercial mortgage originations.
With respect to unsecured bond issuances, four REITs have issued $2.55 billion in five
unsecured notes transactions year to date, compared with seven transactions aggregating

2 U.S. Equity REIT Liquidity Update: Hold the Applause June 23, 2009
 Financial Institutions
$4.6 billion issued by six REITs in 2008. Discounts to yield declined following Simon Property
Group, L.P.’s $650 million 10-year 10.35% note issuance on March 20, 2009 priced to yield
10.75% (rated ‘A’ by Fitch, with a Stable Rating Outlook). For example, on May 26, 2009
WEA Finance LLC, an affiliate of The Westfield Group, issued $700 million five-year 7.5%
notes priced to yield 7.75% (rated ‘A’ by Fitch, with a Stable Rating Outlook). However,
credit spreads remain high across the REIT sector, ranging from approximately 400800
basis points over 10-year treasury notes for many investment-grade-rated issuers. In Fitch’s
view, the five unsecured bond transactions year to date do not yet constitute a broader
trend to indicate that the unsecured bond market has reached a market-clearing level.
As noted in Fitch’s April 2, 2009 liquidity study titled “U.S. Equity REIT Liquidity Update:
The Clock is Ticking,” REITs continue to rely principally on the secured debt markets,
unused capacity under bank revolving lines of credit, and retained cash flow to address
near-term unsecured debt maturities. Of the companies in the table on pages 45,
amounts available under bank lines have been reduced to 51.0% of total sources of
liquidity as of March 31, 2009 (after taking into account reductions in revolving line of
credit borrowing capacity for revolving credit facilities that mature before Dec. 31,
2010 after extension options), compared with 64.4% of total sources of liquidity as of
Dec. 31, 2008. Certain companies have used proceeds from recently raised capital to
reduce borrowings under bank lines. However, Fitch remains particularly concerned
with companies that are almost exclusively reliant on bank revolving lines of credit for
unsecured bond maturity takeouts.
In this environment, it has been rare for REITs to both extend and increase the
borrowing capacity under revolving lines of credit. As such, for illustrative purposes,
Fitch has reduced the borrowing capacity under revolving lines of credit by 33% for
REITs that have such revolving line of credit maturities. For other companies,
commitment sizes of revolving credit facilities that mature before Dec. 31, 2010 (after
taking into account extension options) may be reduced. One exception is Ventas, Inc.,
which has an IDR of ‘BBB’ by Fitch, with a Positive Rating Outlook. In March 2009,
Ventas announced it extended and amended its unsecured revolving credit facilities to
April 2012, increasing the total borrowing capacity from $850 million to $867 million.

What the Data Show

There are no “bright lines” regarding mapping the magnitude of the liquidity surplus
or shortfall to a specific IDR. However, a large majority of REITs with investment-
grade IDRs have liquidity surpluses. Additionally, Fitch has added a metric that scales
a company’s liquidity surplus or shortfall based on its size, calculated as the liquidity
surplus or deficit divided by cash flows from operating activities based on a first-
quarter 2009 run rate through Dec. 31, 2010.

Even though 36 REITs in the table on pages 45 have liquidity surpluses and eight have
liquidity shortfalls through Dec. 31, 2010, Fitch anticipates that more REITs will likely
have liquidity deficits starting next quarter, when Fitch will begin to include 2011 debt
maturities in the liquidity calculations. Year to date, Fitch’s rating actions have included
15 downgrades, 16 affirmations, and two upgrades. Certain downgrades have been driven
by weakening liquidity profiles, while further rating downgrades may occur in instances
where liquidity shortfalls become a growing concern. Nevertheless, despite various
challenges, many REITs have taken advantage of opportunities to bolster liquidity.
Given that opportunities are company-specific rather than broad for the sector, Fitch’s
view is to hold the applause on REIT liquidity.

U.S. Equity REIT Liquidity Update: Hold the Applause June 23, 2009 3
 Financial Institutions
Selected U.S. Equity REIT Liquidity Profiles
($000, As of/For the Quarter Ended March 31, 2009: Projected for March 31, 2009 to Dec. 31, 2010, plus adjustments as applicable)

Sources of Liquidity Uses of Liquidity Liquidity Liquidity Liquidity

Retained Future Surplus/ Surplus/ Surplus/
Amount Cash Flows Recurring (Shortfall) (Shortfall) (Shortfall)/Cash
Issuer Available Provided by Other Total 2009 Debt Capital Total Uses Before with Flows from
Default Rating Under Operating Adjust- Sources of Maturities 2010 Debt Expenditures of Liquidity Revolver Revolver Operating
Company Rating Outlook/Watch Cash Bank Line Activities (a) ments (b) Liquidity (c) (d) Maturities (d) (e) (f) Haircut(g) Haircut (h) Activities (%)
Healthcare
HCP, Inc. (i) BBB Positive Outlook 66,376 1,265,000 (65,023) 440,000 1,706,353 542,744 510,470 67,494 1,120,708 585,645 N.A. 71.5
Health Care REIT, Inc. BBB Stable Outlook 19,180 815,000 14,497 0 848,677 37,451 15,120 16,975 69,546 779,131 N.A. 131.6
Healthcare Realty Trust, Inc. (j) BBB Negative Outlook 12,376 0a 32,592 0 44,968 0 0 49,371 49,371 70,597 (4,403)a (2.3)
Nationwide Health Properties, Inc. BBB Stable Outlook 80,285 700,000 (24,178) 0 756,107 60,000 108,864 77,000 245,864 510,243 N.A. 166.0
Ventas, Inc. (k) BBB Positive Outlook 95,806 654,590 270,172 294,333 1,314,901 105,923 295,255 27,090 428,268 886,633 N.A. 112.9

Industrial
AMB Property Corporation (l) BBB+ Negative Outlook 263,003 1,225,037 224,106 0 1,712,146 245,944 1,152,386 50,813 1,449,142 263,004 N.A. 60.8
Duke Realty Corporation (m) BBB Negative Outlook 22,171 640,000 (49,420) 500,000 1,112,751 156,573 515,305 104,986 776,864 335,887 N.A. 99.1
EastGroup Properties, Inc. BBB Stable Outlook 279 60,791 34,279 0 95,349 13,150 18,185 24,605 55,940 39,409 N.A. 31.3
First Industrial Realty Trust, Inc. (n) BB Negative Outlook 37,802 11,392 14,511 154,200 217,905 132,392 15,815 32,102 180,309 37,596 N.A. 25.9
ProLogis (o) BBB Negative Outlook 123,779 640,900a 766,458 946,900 2,478,037 666,784 1,190,079 147,098 2,003,961 1,874,149 474,076a 37.0

Multifamily
Apt. Investment & Mgmt. Co. (p) BB+ Stable Outlook 93,233 165,000 109,349 100,712 468,294 300,329 302,135 108,794 711,258 (242,964) N.A. (32.9)
AvalonBay Communities, Inc. NR Not Applicable 90,335 641,000 153,685 0 885,020 266,637 284,415 7,931 558,983 326,037 N.A. 51.3
BRE Properties, Inc. (q) BBB Negative Outlook 5,845 385,000 (92,043) 18,500 317,302 151,844 183,271 17,542 352,657 (35,355) N.A. (25.9)
Camden Property Trust (r) BBB Negative Outlook 7,256 359,000 56,112 225,400 647,768 86,800 302,800 37,919 427,519 220,249 N.A. 61.5
Colonial Properties Trust (s) BB+ Stable Outlook 9,564 387,255 (3,913) 257,400 650,306 88,300 374,000 26,530 488,830 161,476 N.A. 130.3
Equity Residential A Stable Outlook 428,596 1,309,800 (8,477) 0 1,729,919 619,166 446,046 186,508 1,251,720 478,199 N.A. 48.0
Home Properties, Inc. BBB Stable Outlook 8,260 17,833a 40,390 0 66,483 18,718 332,982 50,638 402,338 (289,188) (335,855) a (133.0)
UDR, Inc. (t) NR N.A. 37,132 548,900 155,596 0 741,628 107,839 358,619 39,767 506,225 235,403 N.A. 47.0

Office
Boston Properties, Inc. (u) BBB Stable Outlook 143,789 900,000 75,138 863,000 1,981,927 292,617 580,178 61,698 934,493 1,047,434 N.A. 135.9
Brandywine Realty Trust (v) BB+ Negative Outlook 4,083 369,600 234,353 343,800 951,836 227,984 308,074 59,829 595,887 355,949 N.A. 81.0
Highwoods Properties, Inc. (w) BBB- Stable Outlook 7,757 101,700a 108,346 151,000 368,803 116,807 0 44,761 161,568 357,235 207,235a 64.8
HRPT Properties Trust (x) NR N.A. 35,517 203,000a 159,691 0 398,208 6,647 59,507 67,900 134,054 514,154 264,154a 60.1
Liberty Property Trust BBB+ Stable Outlook 131,009 600,000 321,741 0 1,052,750 247,551 181,005 100,513 529,069 523,681 N.A. 74.6
Mack-Cali Realty Corporation (y) BBB Stable Outlook 31,898 447,000 (1,540) 288,000 765,358 6,944 340,332 67,438 414,714 350,644 N.A. 96.3
PS Business Parks, Inc. (z) BBB Stable Outlook 5,093 17,701a 167,731 0 190,524 954 1,376 34,566 36,896 186,962 153,628a 45.5
SL Green Realty Corp. (ab) BB+ Negative Outlook 433,654 110,933 493,703 406,000 1,444,290 77,327 774,870 218,867 1,071,064 373,226 N.A. 51.7
Vornado Realty Trust (ac) BBB Stable Outlook 1,526,853 1,891,967 601,398 654,600 4,674,818 440,433 1,371,990 309,932 2,122,354 2,552,464 N.A. 214.7
Washington REIT (ad) NR N.A. 9,685 187,167a 75,999 107,000 379,851 53,207 125,933 32,284 211,424 255,760 168,427a 70.8
a
Availability under revolving lines of credit that mature (after taking into account extension options) between March 31, 2009 and Dec. 31, 2010 is reduced by one-third for illustration purposes where applicable. In the event that amounts
drawn under revolving lines of credit as of March 31, 2009 exceed amounts committed after reduction of one-third commitment, amounts available are shown at $0 for illustration purposes. NR  Not rated. N.A.  Not applicable.

4 U.S. Equity REIT Liquidity Update: Hold the Applause June 23, 2009
 Financial Institutions
Selected U.S. Equity REIT Liquidity Profiles (continued)
($000, As of/For the Quarter Ended March 31, 2009: Projected for March 31, 2009 to Dec. 31, 2010, plus adjustments as applicable)

Sources of Liquidity Uses of Liquidity Liquidity Liquidity Liquidity

Future Surplus/ Surplus/ Surplus/
Amount Retained Cash Recurring (Shortfall) (Shortfall) (Shortfall)/Cash
Issuer Available Flows Provided Other Total 2009 Debt 2010 Debt Capital Total Uses Before with Flows from
Default Rating Under by Operating Adjust- Sources of Maturities Maturities Expenditures of Liquidity Revolver Revolver Operating
Company Rating Outlook/Watch Cash Bank Line Activities (a) ments (b) Liquidity (c) (d) (d) (e) (f) Haircut (g) Haircut (h) Activities(%)
Retail
Developers Diversified Realty (ae) BB Negative Outlook 36,323 73,869 92,922 806,107 1,009,221 189,727 1,201,594 56,000 1,447,321 (438,100) N.A. (89.8)
Equity One, Inc. (af) NR N.A. 3,183 60,370 (10,136) 93,000 146,417 53,137 74,970 31,570 159,677 (13,260) N.A. (8.7)
Federal Realty Inv. Trust (ag) NR N.A. 22,460 159,000 227,486 372,000 780,946 398,618 8,575 35,609 442,802 338,144 N.A. 66.6
Kimco Realty Corporation (ah) NR N.A. 149,982 780,550 (113,344) 967,000 1,784,188 404,644 544,135 116,200 1,064,979 719,209 N.A. 89.4
National Retail Properties, Inc. (ai) BBB Stable Outlook 1,858 243,767a 103,124 0 348,749 753 20,997 0 21,750 460,332 326,999a 101.5
Pennsylvania REIT (aj) NR N.A. 19,256 0a 195,804 0 215,060 179,063 42,737 28,084 249,884 18,176 (34,824)a (12.4)
Realty Income Corporation (ak) BBB+ Stable Outlook 10,438 355,000 (105,469) 0 259,969 0 0 0 0 259,969 N.A. 104.9
Regency Centers Corporation (al) BBB+ Stable Outlook 24,669 573,800 (112,882) 408,200 893,787 82,090 350,279 31,115 463,484 430,303 N.A. 154.5
Simon Property Group, Inc. (am) A- Stable Outlook 863,928 3,083,000 1,947,817 1,750,000 7,644,745 1,004,623 2,972,283 150,000 4,126,906 3,517,839 N.A. 115.6
Taubman Centers, Inc. (an) NR N.A. 41,731 334,200 (137,571) 0 238,360 15,500 279,700 12,950 308,150 (69,790) N.A. (22.1)
Urstadt Biddle Properties Inc. (ao) NR N.A. 2,986 55,000 2,799 0 60,785 4,227 6,607 5,088 15,922 44,863 N.A. 75.6
Weingarten Realty Investors (ap) NR N.A. 118,260 167,000 43,736 371,700 700,696 91,834 138,453 66,808 297,095 403,601 N.A. 95.5
The Westfield Group (aq) A Stable Outlook 311,000 4,866,667 a 1,261,800 3,200,000 9,639,467 1,400,000 3,400,000 2,800,000 7,600,000 2,672,800 2,039,467a 25.1

Lodging
Host Hotels & Resorts, Inc. (ar) BB Negative Outlook 653,000 200,000 0 900,000 1,753,000 247,000 411,000 343,000 1,001,000 752,000 N.A. 89.5

Self Storage
Public Storage A Stable Outlook 493,400 300,000 667,016 0 1,460,416 7,887 13,244 59,493 80,624 1,379,792 N.A. 76.0
Sovran Self Storage, Inc. (as) BB+ Negative Watch 7,416 10,000 (1,414) 30,551 46,553 27,558 2,265 11,200 41,023 5,530 N.A. 5.4
a
Availability under revolving lines of credit that mature (after taking into account extension options) between March 31, 2009 and Dec. 31, 2010 is reduced by one-third for illustration purposes where applicable. In the event that amounts
drawn under revolving lines of credit as of March 31, 2009 exceed amounts committed after reduction of one-third commitment, amounts available are shown at $0 for illustration purposes. NR  Not rated. N.A.  Not applicable.

U.S. Equity REIT Liquidity Update: Hold the Applause June 23, 2009 5
 Financial Institutions
Supplementary Information Regarding U.S. Equity REIT Liquidity Profiles
($000, As of/For the Quarter Ended March 31, 2009: Projected for March 31, 2009 to Dec. 31, 2010, plus adjustments as applicable)

2009 2009 2010 3/31/09 Consolidated 1Q09 Cash 1Q09 Cash

Issuer Unsecured Secured Unsecured 20092010 Unsecured Debt/ Flows from Distributions Future
Default Rating Total Bank % Debt Debt Debt 2010 Secured Total Debt Consolidated Total Operating (Excluding Special Development
Company Rating Outlook/Watch Line Drawn Maturities Maturities Maturities Debt Maturities Maturities Debt (%) Activities Distributions) Spending
Healthcare
HCP, Inc. (i) BBB Positive Outlook 1,500,000 15.7 320,000 222,744 206,421 304,049 1,053,214 71.5 117,012 126,301 $101,491
Health Care REIT, Inc. BBB Stable Outlook 1,150,000 29.1 0 37,451 0 15,120 52,571 82.8 84,557 82,486 592,515
Healthcare Realty Trust, Inc. (j) BBB Negative Outlook 266,667a 100.0 a 0 0 0 0 0 92.1 27,528 22,872 85,459
Nationwide Health Properties, Inc. BBB Stable Outlook 700,000 0.0 60,000 0 0 108,864 168,864 70.0 43,909 47,363 N.A.
Ventas, Inc. (k) BBB Positive Outlook 867,000 24.5 49,807 56,116 102,076 193,179 401,178 50.8 112,142 73,546 N.A.
Average  33.9      73.5   

Industrial
AMB Property Corporation (l) BBB+ Negative Outlook 1,605,700 23.7 0 245,944 250,000 902,386 1,398,329 44.4 61,825 6,070 141,354
Duke Realty Corporation (m) BBB Negative Outlook 1,300,000 50.8 121,440 35,133 164,728 350,577 671,878 84.8 48,428 55,488 275,580
EastGroup Properties, Inc. BBB Stable Outlook 225,000 73.0 0 13,150 0 18,185 31,335 23.0 17,995 13,098 231,962
First Industrial Realty Trust, Inc. (n) BB Negative Outlook 500,000 97.7 124,991 7,401 0 15,815 148,207 96.3 20,776 18,703 6,616
ProLogis (o) BBB Negative Outlook 2,800,145a 77.1 a 284,375 382,409 190,278 999,801 1,856,863 90.4 183,124 73,630 259,251
Average  64.5      67.8   

Multifamily
Apt. Investment & Mgmt. Co. (p) BB+ Stable Outlook 180,000 8.3 0 300,329 0 302,135 602,464 5.4 105,370 89,749 106,900
AvalonBay Communities, Inc. NR N.A. 1,000,000 35.9 208,162 58,475 247,777 36,638 551,052 59.5 90,821 68,866 438,152
BRE Properties, Inc. (q) BBB Negative Outlook 750,000 48.7 150,000 1,844 150,000 33,271 335,115 93.2 19,510 32,659 404,200
Camden Property Trust (r) BBB Negative Outlook 600,000 40.2 81,900 4,900 247,900 54,900 389,600 76.0 51,171 43,155 25,900
Colonial Properties Trust (s) BB+ Stable Outlook 675,000 42.6 0 88,300 35,384 338,616 462,300 74.0 17,698 18,257 404,200
Equity Residential A Stable Outlook 1,425,000 0.0 122,213 496,953 0 446,046 1,065,212 51.0 142,451 143,662 150,182
Home Properties, Inc. BBB Stable Outlook 93,333 a 80.9 a 0 18,718 0 332,982 351,700 9.2 36,087 30,317 114,621
UDR, Inc. (t) NR N.A. 600,000 8.5 91,899 15,940 290,000 68,619 466,458 48.9 71,557 49,329 149,695
Average  33.1      52.1   

Office
Boston Properties, Inc. (u) BBB Stable Outlook 1,000,000 10.0 0 292,617 0 580,178 872,795 56.3 110,136 99,402 814,828
Brandywine Realty Trust (v) BB+ Negative Outlook 600,000 38.4 152,301 75,683 251,222 56,852 536,058 82.1 62,767 29,288 54,994
Highwoods Properties, Inc. (w) BBB Stable Outlook 300,000a 66.1 a 0 116,807 0 0 116,807 58.9 45,667 30,189 36,635
HRPT Properties Trust (x) NR N.A. 500,000 59.4 0 6,647 50,000 9,507 66,154 84.9 62,808 39,995 12,187
Liberty Property Trust BBB+ Stable Outlook 600,000 0.0 238,562 8,989 169,739 11,266 428,556 81.5 100,228 54,265 134,971
Mack-Cali Realty Corporation (y) BBB Stable Outlook 775,000 42.3 0 6,944 164,943 175,389 347,276 73.7 52,029 52,249 8,314
PS Business Parks, Inc. (z) BBB Stable Outlook 66,667 a 73.4 a 0 954 0 1,376 2,330 0.0 48,205 24,243 9,000
SL Green Realty Corp. (ab) BB+ Negative Outlook 1,500,000 92.6 0 77,327 180,515 594,355 852,197 49.6 103,161 32,632 N.A.
a
Where applicable; availability under revolving lines of credit that mature (after taking into account extension options) between March 31, 2009 and Dec. 31, 2010 is reduced by one-third for illustration purposes. In the event that
amounts drawn under revolving lines of credit as of March 31, 2009 exceed amounts committed after reduction of one-third commitment, amounts available are shown at $0 for illustration purposes. N.A.  Not applicable.
Note: Footnotes (a) through (h) do not apply to this table.

6 U.S. Equity REIT Liquidity Update: Hold the Applause June 23, 2009
 Financial Institutions
Supplementary Information Regarding U.S. Equity REIT Liquidity Profiles (continued)
($000, As of/For the Quarter Ended March 31, 2009: Projected for March 31, 2009 to Dec. 31, 2010, plus adjustments as applicable)

3/31/09
2009 2009 2010 Consolidated 1Q09 Cash 1Q09 Cash
Issuer Unsecured Secured Unsecured 20092010 Unsecured Debt/ Flows from Distributions Future
Default Rating Total Bank % Debt Debt Debt 2010 Secured Total Debt Consolidated Total Operating (Excluding Special Development
Company Rating Outlook/Watch Line Drawn Maturities Maturities Maturities Debt Maturities Maturities Debt (%) Activities Distributions) Spending
Office (continued)
Vornado Realty Trust (ac) BBB Stable Outlook 2,595,000 25.4 154,812 285,621 176,915 1,195,075 1,812,422 30.7 169,812 83,898 927,703
Washington REIT (ad) NR N.A. 249,667a 19.2a 0 53,207 100,000 25,933 179,140 66.1 33,993 23,136 15,658
Average  42.7      58.4   

Retail
Developers Diversified Realty (ae) BB Negative Outlook 1,325,000 94.4 0 189,727 478,683 722,911 1,391,321 56.9 69,657 10,991 102,964
Equity One, Inc. (af) NR N.A. 242,000 75.1 0 53,137 0 74,970 128,107 51.3 21,694 23,142 12,898
Federal Realty Investment Trust (ag) NR N.A. 300,000 47.0 369,973 28,645 861 7,714 407,193 74.5 72,586 40,088 39,000
Kimco Realty Corporation (ah) NR N.A. 1,698,250 54.0 102,677 301,967 312,941 231,194 948,779 72.0 114,905 131,097 307,300
National Retail Properties, Inc. (ai) BBB Stable Outlook 266,667a 8.6a 0 753 19,975 1,022 21,750 96.8 46,018 31,286 17,309
Pennsylvania REIT (aj) NR N.A. 333,333a 100.0a 0 179,063 0 42,737 221,800 30.7 40,021 12,049 81,000
Realty Income Corporation (ak) BBB+ Stable Outlook 355,000 0.0 0 0 0 0 0 100.0 35,395 50,462 0
Regency Centers Corporation (al) BBB+ Stable Outlook 713,800 19.6 50,000 32,090 160,000 190,279 432,369 87.0 39,793 55,919 264,962
Simon Property Group, Inc. (am) A Stable Outlook 3,500,000 11.9 200,000 804,623 1,100,000 1,872,283 3,976,906 63.7 434,818 43,383 341,400
Taubman Centers, Inc. (an) NR N.A. 590,000 43.4 0 15,500 0 279,700 295,200 0.0 45,095 64,748 31,500
Urstadt Biddle Properties Inc. (ao) NR N.A. 80,000 21.4 0 4,227 0 6,607 10,834 15.7 19,790 18,857 0
Weingarten Realty Investors (ap) NR N.A. 575,000 71.0 32,000 59,834 50,500 87,953 230,287 67.6 60,349 54,101 77,176
The Westfield Group (aq) A Stable Outlook 8,966,66 a 45.7 a 0 1,400,000 3,100,000 300,000 4,800,000 77.2 2,704,500 2,073,600 2,800,000
Average  45.5      61.0   

Lodging
Host Hotels & Resorts, Inc. (ar) BB- Negative Outlook 600,000 33.3 0 247,000 0 411,000 658,000 72.8 120,000 30,000 Not Available
Average  33.3      72.8   

Self-Storage
Public Storage A Stable Outlook 300,000 0.0 1,057 6,830 2,207 11,037 21,131 55.6 259,525 164,237 18,900
Sovran Self Storage, Inc. (as) BB+ Negative Watch 125,000 18.4 0 27,558 0 2,265 29,823 82.8 14,499 14,701 15,000
Average  9.2      69.2   

Industry Average  37.5      65.0   

a
Where applicable; availability under revolving lines of credit that mature (after taking into account extension options) between March 31, 2009 and Dec. 31, 2010 is reduced by one-third for illustration purposes. In the event that
amounts drawn under revolving lines of credit as of March 31, 2009 exceed amounts committed after reduction of one-third commitment, amounts available are shown at $0 for illustration purposes. N.A.  Not applicable.
Note: Footnotes (a) through (h) do not apply to this table.

U.S. Equity REIT Liquidity Update: Hold the Applause June 23, 2009 7
 Financial Institutions
Notes
(a) Retained cash flows from operating activities is first-quarter 2009 cash flows from operating activities less dividends and distributions paid in first-quarter 2009, multiplied by
seven for a run rate through Dec. 31, 2010.
(b) Other adjustments include equity and debt raised subsequent to March 31, 2009, along with other adjustments as specified in company-specific notes.
(c) Total sources of liquidity represent cash, availability under revolving lines of credit, and retained cash flows from operating activities.
(d) Debt maturities include consolidated debt maturities and pro rata share of debt in unconsolidated entities. Excludes maturities under revolving lines of credit. For term loans
or other obligations due in 20092010 that have extension options beyond 2010 at the company’s option, debt maturity schedules reflect the exercise of such extension options.
(e) Future recurring capital expenditures are estimated as first-quarter 2009 recurring capital expenditures multiplied by seven for a run rate through Dec. 31, 2010.
(f) Total uses of liquidity represent debt maturities and recurring capital expenditures.
(g) Liquidity surplus/(shortfall) before revolver haircut does not incorporate a reduction of one-third the committed amount for revolving lines of credit that mature (after taking
into account extension options) between March 31, 2009 and Dec. 31, 2010.
(h) Liquidity surplus/(shortfall) with revolver haircut as applicable incorporates a reduction of one-third the committed amount for revolving lines of credit that mature (after
taking into account extension options) between March 31, 2009 and Dec. 31, 2010.
(i) For HCP, Inc., adjustments reflect $440 million in equity raised on May 5, 2009.
(j) For Healthcare Realty Trust, Inc., $400 million revolving line of credit matures in January 2010.
(k) For Ventas, Inc., adjustments include $200 million in senior notes issued on April 7, 2009, $299.7 million raised through common equity offering, and $205.367 million of
bonds repurchased via the April 6, 2009 tender offer that mature beyond 2010.
(l) For AMB Property Corporation, retained cash flow reflects run rate of dividend payments for the six quarters between June 30, 2009 and Dec. 31, 2010 based on
98.916 million shares outstanding and $0.28 quarterly dividend. AMB also repurchased $175 million in 2010 bonds on April 28, 2009.
(m) For Duke Realty Corporation, adjustments reflect a $500 million equity issuance on April 16, 2009.
(n) For First Industrial Realty Trust, Inc., $154.2 million in secured debt was raised in May 2009 that was used in part to repay $124.991 million of bonds outstanding as of
March 31, 2009 that matured in June 2009.
(o) For ProLogis, adjustments include $1.154 billion in equity raised on April 8, 2009 less $207.1 million in 2012 and 2013 bonds repurchased via the company’s May 7, 2009
tender offer. $4.2 billion in total commitments are adjusted by one-third since the global line and credit facility matures in October 2010 after extension options, and the
Sterling facility matures in December 2009.
(p) In May 2009, the commitment size of Apartment Investment and Management Co.’s revolving credit facility was reduced from $635 million to $180 million. Retained cash
flows from operating activities are based on 2008 numbers as follows: $421.481 million in cash flows from operating activities less $212.286 million in class A stock dividends, less
$55.215 million in preferred dividends, less $311.695 million in distributions to minority interest, plus $220.2 million in special dividends paid in cash, plus $100.712 million in
additional retained cash flows due to the company’s quarterly dividend reduction from $0.60 per share to $0.10 per share based on 115.099 million shares outstanding as of
March 31, 2009.

8 U.S. Equity REIT Liquidity Update: Hold the Applause June 23, 2009
 Financial Institutions

Notes (continued)
(q) BRE Properties, Inc. executed a March 25, 2009 tender offer, repurchasing $291.5 million of 2011 and 2013 notes, and an April 8, 2009 tender offer, repurchasing
$180.8 million of 2009 and 2010 notes. The $291.5 million in 2011 and 2013 bonds are shown as a reduction in sources of liquidity.
(r) For Camden Property Trust, adjustments reflect $285 million in equity raised on May 6, 2009 less $59.6 million in bonds repurchased via an April 21, 2009 tender offer that
mature after 2010.
(s) For Colonial Properties Trust, adjustments reflect $140 million in dividend savings based on projected $80 million in annual dividend savings, $38.6 million in 2011 bonds
purchased via the company’s $250 million tender offer on April 6, 2009, and $156 million Fannie Mae facility that closed on June 1, 2009.
(t) UDR, Inc.’s debt maturities are shown after extension options under a $110.3 million secured construction loan due in 2009, $31 million of permanent financing due in 2010,
and an $18.5 million construction loan due in 2010.
(u) Boston Properties, Inc. raised $863 million in equity on June 5, 2009.
(v) Brandywine Realty Trust repurchased $34.5 million in bonds via an April 29, 2009 tender offer and raised $254 million in equity on May 28, 2009. The company also closed an
$89.8 million mortgage loan on April 1, 2009 to repay a $68.9 million mortgage loan and for general corporate purposes.
(w) Highwoods Properties, Inc. raised $151 million in common equity on May 27, 2008. Highwoods has a $70 million secured construction facility, of which $39.1 million was
available as of March 31, 2009, extendable for two years at the company’s option.
(x) For HRPT Properties Trust, expected development spending is $1.741 million in first-quarter 2009 development expenditures multiplied by seven for a run rate through
Dec. 31, 2010.
(y) Mack-Cali Realty Corporation issued $288 million in equity on May 1, 2009.
(z) For PS Business Parks, Inc., availability under revolver and retained cash flows from operating activities reflects $111.5 million in preferred stock repurchased year to date,
including repurchases subsequent to March 31, 2009.
(ab) SL Green Realty Corp. raised $406 million in equity on May 12, 2009. Capital expenditure projections are based on a company estimate of $76.4 million of CapEx from
March 31, 2009 to Dec. 31, 2009 and $17.4 million in the company’s share of capital expenditures in joint ventures (JVs) from March 31, 2009 to Dec. 31, 2009.
(ac) Vornado Realty Trust raised $742 million in equity on April 22, 2009 and repurchased $173.3 million in bonds via an April 30, 2009 tender offer, of which $87.4 million was
2011 bonds. Development pipeline projected as $132.529 million in first-quarter 2009 development and redevelopment expenditures applied over a seven-quarter period.
(ad) Washington Real Estate Investment Trust raised $107 million of equity on April 30, 2009.
(ae) For Developers Diversified Realty, adjustments include $112.5 million of equity raised with the Otto family (excluding warrants) and $125 million of recently
executed secured debt transactions. Retained cash flows and capital expenditures are consistent with the retained cash flow estimate in the June 1, 2009 rating report.
(af) Equity One, Inc. raised $93 million in an equity offering and paid off $172 million in unsecured notes on April 9, 2009.
(ag) Federal Realty Investment Trust refinanced its $200 million term loan with a new $372 million term loan and repurchased $40.3 million of 2009 bonds via a May 26, 2009
tender offer for subsequent to March 31, 2009.

U.S. Equity REIT Liquidity Update: Hold the Applause June 23, 2009 9
 Financial Institutions

Notes (continued)
(ah) Kimco Realty Corporation issued $747 million in equity on April 3, 2009 and raised $220 million through a new secured term loan in April 2009.
(ai) For National Retail Properties, Inc., cash flows from operating activities includes an add-back for additions to real estate and proceeds from disposition of the company's
Inventory portfolio.
(aj) For Pennsylvania Real Estate Investment Trust, the debt maturity schedule excludes a $170 million senior unsecured term loan due in 2010, which has a one-year extension
option.
(ak) For Realty Income Corporation, cash flows from operating activities exclude cash provided by discontinued operations.
(al) For Regency Centers Corp., adjustments reflect $311.2 million in equity issuance on April 24, 2009 and annual retention of funds of $55.4 million due to an announced
dividend reduction.
(am) Simon Property Group, Inc. raised approximately $1 billion in equity on May 7, 2009 and issued $600 million of unsecured bonds on May 11, 2009. The company’s cash
balance is shown net of $34.4 million in cash related to Simon’s co-branded gift card programs. $150 million in projected capital expenditures is based on company disclosures
and consistent with first-quarter 2009 tenant allowances and operational capital expenditures of $14.253 million. Retained cash flows are based on the trailing 12 months ended
March 31, 2009 as follows: cash flows from operating activities of $1.812 billion less $1.138 billion in dividends to be paid at $0.90 per share for all shares and units outstanding
at March 31, multiplied by seven divided by four. Dividend policy revision is based on a dividend cut to $0.60 per share in the second quarter of 2009, with 90% of dividend being
paid in stock. Savings are assumed for 2009 only.
(an) For Taubman Centers, Inc., Fitch applies $65.066 million in consolidated construction in process in first-quarter 2009 over a seven-quarter period for projected future
development spending.
(ao) For Urstadt Biddle Properties, Inc. all calculations are shown as of and for the six months ended April 30, 2009, as the company’s 2009 and 2010 fiscal years end Oct. 31,
2009 and Oct. 31, 2010, respectively. Recurring capital expenditures are based on $888,000 in recurring capital expenditures through April 30, 2009 and
$1.2 million in projected capital expenditures through Oct. 31, 2009.
(ap) Weingarten Realty investors raised $459 million in equity on April 17, 2009 and tendered for $98 million of bonds through its June 1, 2009 tender offer, of which $87.3
million was 2011 bonds.
(aq) Calculations for The Westfield Group are as of and for the year ended Dec. 31, 2008 except for $700 million of unsecured notes raised on May 27, 2009. One-third deduction
is only applied to the $1.9 billion credit facility due in December 2010; therefore, $5.5 billion available as of Dec. 31, 2008 has been adjusted to
$4.867 billion available after haircut.
(ar) For Host Hotels & Resorts, Inc., retained cash flow is shown at $0 for illustrative purposes. Host Hotels raised $400 million in unsecured notes in a private placement offering
on May 5, 2009 and raised $500 million in equity on April 24, 2009. $49 million in CapEx per quarter from March 31, 2009 to Dec. 31, 2010 is shown for illustration purposes.
(as) For Sovran Self Storage, Inc., $10 million available under the company’s revolving credit facility represents availability within covenant compliance requirements.
Adjustments include dividend savings over seven quarters of the company’s quarterly dividend reduction from $0.64 to $0.45 per share based on $14.701 million in dividends
paid in first-quarter 2009.

10 U.S. Equity REIT Liquidity Update: Hold the Applause June 23, 2009
 Financial Institutions

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U.S. Equity REIT Liquidity Update: Hold the Applause June 24, 2009 11