This document discusses an analysis of real estate investment trusts (REITs) American Tower (AMT), Crown Castle (CCI), and Equity Residential (EQR). It provides an overview of the real estate sector, the investment choices for the fund, and analyses including fundamental, quantitative, strategic, and environmental, social and governance (ESG). The key takeaways are that EQR has the best quantitative data with lower volatility and higher returns than peers, strongest ESG performance, and a positive strategic outlook with growth opportunities.

1. Real Estate Team
Lancaster University Ghosal Fund

2. Agenda
Real Estate Sector
Investment Choice
Fundamental Analysis
Quantitative Analysis
Strategic Analysis
Environmental, Social and Governance
Key Takeaways

3. Real Estate Sector
Types: Retail, Residential, Office,
Healthcare, Self-Storage, Infrastructure
Value added in sector by cutting
costs, increasing rental revenue and
increasing value of real estate
REIT – Real Estate Investment Trust
0.
5.
10.
15.
20.
25.
30.
2010 2011 2012 2013 2014 2015 2016 2017 2018
Real estate average value/EBITDA Worldwide
2010-2018, by region
Americas EMEA Europe Asia (excluding Japan)

4. Real Estate Sector
Key Success Factors
Cost Structure Asset Development
Asset/ Liability
Ratio
Long-term returns
Standardization Location
Financial
Management
Rent development

5. Agenda
Real Estate Sector
Investment Choice
Fundamental Analysis
Quantitative Analysis
Strategic Analysis
Environmental, Social and Governance
Key Takeaways

6. Investment Choice
• Focus on acquisition, development and
management of rental apartment properties
• Urban and high-density suburban markets
• “Where today's renters want to live, work and
play.”
• Owns or has investments in 308 properties
consisting of 80,299 apartment units

7. Agenda
Real Estate Sector
Investment Choice
Fundamental Analysis
Quantitative Analysis
Strategic Analysis
Environmental, Social and Governance
Key Takeaways

8. Fundamental Analysis

9. Fundamental Analysis
• S&P 500
• EQR

10. Agenda
Real Estate Sector
Investment Choice
Fundamental Analysis
Quantitative Analysis
Strategic Analysis
Environmental, Social and Governance
Key Takeaways

11. Quantitative Analysis
-
500,000,000
1,000,000,000
1,500,000,000
2,000,000,000
2,500,000,000
3,000,000,000
1/1/2019 1/1/2020 1/1/2021 1/1/2022
Discounted Cash Flow
EBIT Less: Cash Taxes Plus: D&A Less: Capex

12. Quantitative Analysis
Financials in Billion AMT CCI EQR Volatility AMT CCI EQR
Price $ 210.00 $ 131.00 $ 85.00 1 month 1.45% 1.27% 1.00%
Market Capitalisation $ 91.00 $ 54.00 $ 31.00 3 months 1.46% 1.30% 0.80%
Revenue $ 7.40 $ 5.40 $ 2.50 12 months 1.17% 1.19% 0.99%
Net Income $ 1.20 $ 0.67 $ 0.65
Assets $ 33.00 $ 32.80 $ 20.40 Return AMT CCI EQR
Liabilities $ 26.10 $ 20.80 $ 9.60 1 month -0.78% -3.56% -0.76%
Net Assets $ 6.90 $ 12.00 $ 10.80 3 months -4.54% -6.13% 5.12%
12 months 29.32% 21.12% 25.37%
Ratio AMT CCI EQR
Assets / Liabilities 79% 63% 47% Ratio AMT CCI EQR
Price/ Net Income 175.00 195.52 130.77 1 month -0.54 -2.81 -0.76
Price/ Net Assets 30.43 10.92 7.87 3 months -3.11 -4.72 6.42
Price/Net Income*Net Assets 25.36 16.29 12.11 12 months 25.16 17.77 25.55
ESG AMT CCI EQR
Percentile 31st 45th 64th

13. Agenda
Real Estate Sector
Investment Choice
Fundamental Analysis
Quantitative Analysis
Strategic Analysis
Environmental, Social and Governance
Key Takeaways

14. Strategic Analysis
SWOT: Strength
OCCUPANCY RATES
• Occupancy rates >96%. Efficient in satisfying client's requirements.
• Secured long-term revenue flows.
PROPERTY PORTFOLIO
• EQR is one of the largest owners and operators of multi-family apartment complexes in the US.
OPERATING PERFORMANCE
• EQR recorded a strong operating performance in 2018 during which it recorded revenues of
US$2,578.4 million, with an annual growth of 4.3%.

15. Strategic Analysis
SWOT: Weakness
FINANCIAL LEVERAGE
• Shared with the rest of the sector, debt to earnings ratio is high. Potentially restricting earnings
with high costs of interest payments.

16. Strategic Analysis
SWOT: Threats
INCREASING MANPOWER COSTS
• Tight labour markets and the US government increasing the minimum wage.
• Increases in operational costs could hamper profits.
RENT COLLECTION
• Like with any property rental, there is a threat that the tenants will default on payments. As
Equity Residential increase their portfolio, there is an increased risk of this happening.

17. Strategic Analysis
SWOT: Opportunities
US HOUSING MARKET
• The increasing US Housing Market Index can result in a bullish market for EQR.
POSITIVE OUTLOOK FOR RESIDENTIAL CONSTRUCTION MARKET IN THE US
• According to in-house research, the US construction industry is expected to grow at a CAGR of
4.52% during 2019-2022.
GROWTH INITIATIVES
• EQR are acquiring apartment blocks around many major US cities.
• Recently completed construction in San Francisco and Washington D.C.
• On-going construction project in Boston valued at US$409.7 million.

18. Agenda
Real Estate Sector
Investment Choice
Fundamental Analysis
Quantitative Analysis
Strategic Analysis
Environmental, Social and Governance
Key Takeaways

19. Environmental, Social and
Governance

20. Environmental, Social and
Governance

21. Environmental, Social and
Governance

22. Environmental, Social and
Governance
1%
1%
2%
6%
20%
29%
41%
Employee Diversity
American Indian or Alaska
Native
Native Hawaiian or other
Pacific Islander
Two or more races
Asian
Black or African American
Hispanic or Latino
White

23. Agenda
Real Estate Sector
Investment Choice
Fundamental Analysis
Quantitative Analysis
Strategic Analysis
Environmental, Social and Governance
Key Takeaways

24. Key Takeaways
• Best quantitative data in the US REIT Market
– Lowest volatility amongst competitors.
– Undervalued unlike competition.
– Highest Return to Volatility Ratio (Tenor 1.03).
– 20% upside potential based on DCF model.
• Best ESG Performance compared to competitors.
• Very positive strategic outlook (SWOT: Opportunities).