BMO 2026 Real Assets Conference: State of the REIT Industry

Research evidence excerpt

BMO 2026 Real Assets Conference: State of the REIT Industry

(a)

as of the end of the month prior to the issuance date of the research report, or (b) as of the end of the second most recent month if the report

issuance date is less than 10 days after the end of the prior month.

Disclosure 8C: BMO Capital Markets or an affiliate has a financial interest in 0.5% or more in the issued share capital of RioCan REIT.

Methodology and Risks to Target Price/Valuation for BXP (BXP-NYSE)

Methodology: Our target price is based on a combination of our forward NAV and DCF (five-year FCFE), taking into account AFFO multiple

relative to peers and ROIC relative to WACC.

Risks: Primary risks include rising interest rates and cost of capital, rising capitalization rates impacting valuations, a slowing economy leading

to lower-than-expected job growth, and new competitive supply. BXP's major risks include development and construction risks, particularly as

its large, complex developments may take a significant number of years from planning stages to completion.

Methodology and Risks to Target Price/Valuation for BlackRock (BLK-NYSE)

Methodology: Our target price is determined using an EV/EBITDA multiple on our 2027 EBITDA estimates.

Risks: Primary risks to the Traditional Asset Managers (AMs) include the shift to passive investing, secular pricing pressure and equity market

drawdowns. Only a minority of Traditional AMs costs are linked to revenues, so the impact of negative operating leverage can be substantial.

In the short-term, these risks typically manifest themselves in multiple compression, and if they prove durable, ultimately weigh on earnings

forecasts. Also, these risks are more pronounced in firms with more leverage than peers. While the secular pressure facing active-oriented