e qi Listed real estate Preference: neutral UBS Global Index DTR (24 Oct): 1,490 (last month: 1,500) | Recommendations UBS View UBS Global Index DTR (6-month target): 1,600 Tactical (6 months) ¢ Since July global listed real estate has again performed well. Despite the good performance the asset class © We continue to be neutral global listed remains slightly attractive based the high dividend yield and implied property yield compared to bonds. real estate recommending to have Asia has been the strongest performer and Europe has outperformed the US year-to-date as tail risk was exposure to the Hong Kong, Singapore reduced by the ECB launching the OMT. QE3 is not an imminent performance driver but provides a support and Australia markets. The asset class is for capital values going forward and helps to keep interest levels low. _ overall slightly attractive on relative ¢ Due to the current search for yields, listed real estate companies are able to refinance their investments at valuation and the currant low interest lower yields with longer maturities. The implied property yields to bonds and earnings yields over five-year te i ti but th fai swap rates are even more attractive due to low interest rates offering good opportunities within the global rate =! supportive, 6u € uncertain real estate space. SARNORIRSENL warrants a neutral stance. e Low to decent supply of commercial surfaces helps to push vacancy rates down which in turn increases Strategic (1 to2 years) the rent. We further see capital appreciation as possible in the light of overall stable fundamentals. e Real estate is supported by several factors e Asia remain the positive performance generators in our view as this is the more cyclical market, whereas in the long term. We anticipate a gradual Australia is supported by high dividend yields. Overall Europe remains comparatively weak, while the UK increase in payout ratios coupled with and the US have already priced in some market improvements. portfolio