Weekly REIT and Lodging Strategy-4Q Earnings Preview:Heroes versus Ashes to Ashes

Earnings Preview — REITs enter year-end earnings and 2016 guidance seasonwith a backdrop of predictable uncertainty relating to the global macro environment,the economic cycle and credit market conditions amongst other risks. Current realestate activity is likely starting to be impacted by the considerable market volatility oflate and unease with many of the “uncertainties”. REITs are standing out like DavidBowie’s “Heroes” amidst a bunch of “Ashes to Ashes” - domestic, stable, still soliddemand for space and assets, backed by improved balance sheets and solid freecash flow growth. That said, they are not recession proof, and would be impactedshould the environment and growth materially change. The weekly contains a fullpreview of 4Q earnings and key trends by sector and company, including a helpfultwo-page “tear sheet” with estimates and company commentary on pages 7-17.

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