(PUB) Investing 2016

6

Data through July 31, 2016 FINRA members: For internal or institutional use only. T. Rowe Price Real Estate

Ticker TRREX

Yield 2.1%

Total Assets $6,523 mil

Mstar Category Real Estate

Benchmark 1: S&P United States REIT TR USD Benchmark 2: MSCI ACWI NR USD Morningstar Analyst Rating 07-10-16 Œ

Investment Style Equity

Historical Profile Return Risk Rating Average Average QQQQ Above Avg

5 5 8 5 5 8 8 8

15.0 20.0

Growth of $10,000

Investment Values of Fund Investment Values of Benchmark 1

Morningstar Pillars Process

10.0

∞ Positive ∞ Positive ∞ Positive ∞ Positive ∞ Positive

Performance

5.0

People Parent

Performance Quartile (within Category)

& ) ( * & ( * & * & ) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 07-16 25.33 19.18 11.13 13.83 17.50 18.36 21.01 21.21 26.86 27.49 31.05 36.75 -18.80 -39.08 31.65 29.89 7.32 17.03 3.28 29.75 4.78 14.05 0.72 -2.10 -0.74 3.06 1.42 -1.15 -0.96 0.88 -0.52 2.24 -4.27 15.80 -30.46 3.12 -2.97 17.22 14.67 0.90 -19.52 25.59 7.14 8.46 3.23 2.90 3.91 5.06 3.07 2.30 2.53 2.35 2.86 2.33 1.02 33.52 -21.70 -42.99 26.59 26.82 5.02 14.50 0.93 26.89 2.45 13.03 0.62 0.72 0.74 0.55 0.42 0.40 0.46 0.49 0.60 0.62 0.28 0.60 0.79 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.78 0.74 0.75 0.77 0.76 0.78 0.78 0.79 0.76 0.76 . 1.60 1.49 2.85 2.84 1.26 1.10 1.35 1.25 1.54 1.51 . 20 82 55 26 16 59 43 14 45 6 78

Price

History

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ ‰ Á

NAV

Total Return % +/- Bmark 1 +/- Bmark 2 Income Return % Capital Return % Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil Total Rtn % Rank Cat Income $

Pillar Spectrum ∞ Positive

§ Negative

¶ Neutral

Performance 07-31-16 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

2012 2013 2014 2015 2016

12.53 2.40 0.15 1.41 17.03 5.90 -0.85 -2.34 0.72 3.28 10.00 6.51 -3.05 14.23 29.75 5.55 -9.89 2.66 7.31 4.78

. .

25

33

15

20

13

5

6

4

3

7

2,333 1,940 1,585 2,206 2,519 2,670 3,392 3,476 4,826 5,212

Rating and Risk Time Period Load-Adj Return %

Portfolio Analysis 06-30-16 Total Stocks: 37 Share change since 03-31-16 T Simon Property Group Inc Y T. Rowe Price Reserve Inv T General Growth Properties T AvalonBay Communities Inc

4.26 4.64

— — —

Morningstar Rtn vs Cat

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Sector

YTD Ret % % Assets 18.41 9.16

Trailing

Total Return%

+/- Bmark 1

+/- Bmark 2

%Rank Cat

Growth of $10,000

Real Est

1 Yr 3 Yr 5 Yr

18.88 14.36 12.41

3 Mo 6 Mo

12.03 -2.14 8.22 18.99 -3.57 6.62 18.88 -3.46 19.33 14.36 -0.26 8.49 12.41 -0.66 5.79 6.90 -0.47 2.27

64 11,203 72 11,899 53 11,888 31 14,957 25 17,950 46 19,494 30 53,495

—

— 5.02

Avg QQQQ -Avg QQQQ

Avg

Real Est Real Est Real Est Real Est Real Est Real Est Real Est Real Est Real Est Real Est Real Est Real Est Real Est Real Est Real Est Real Est Real Est Real Est

18.82 4.78 2.29 4.70 28.91 4.69 -5.63 4.21 -2.13 4.06 26.15 3.89 -0.97 3.64 17.44 3.63 12.28 3.57 5.56 3.54 23.41 3.07 18.67 3.04 23.24 3.03 12.46 2.88 8.70 2.67 27.01 2.44 29.80 2.35 35.94 2.33

+Avg

1 Yr

+Avg QQQ

10 Yr Incept

6.90

Avg

3 Yr Avg 5 Yr Avg 10 Yr Avg

T Prologis Inc

10.72

T Equity Residential Y Public Storage T Regency Centers Corp T Essex Property Trust Inc Y Federal Realty Investment T SL Green Realty Corp Douglas Emmett Inc T Camden Property Trust T Kimco Realty Corp T Boston Properties Inc T Weingarten Realty Investo T Healthcare Realty Trust I T Macerich Co Vornado Realty Trust

Other Measures

Standard Index

Best Fit Index

15 Yr Avg 11.83 0.12 1.51

Alpha

10.8 0.58

0.6

Beta

0.94

Tax Analysis

Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

R-Squared

22

98

3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)

13.21 11.36

10 13 25

1.01 0.94 1.21

20 28 32

Standard Deviation

14.58 14.36

5.61

Mean

Sharpe Ratio

0.99

Potential Capital Gain Exposure: 42% of assets

Morningstar's Take by David Kathman, CFA 07-10-16 T. Rowe Price has been managed since its 1997 inception by David Lee, using a strategy that’s focused on the long term and thoroughly grounded in fundamentals. With the help of a small team of analysts, Lee seeks out REITs (and some realestateoperatingcompanies) thataremanaged well, likely to keep growing at a steady pace, and trading below the net asset value of their underlying real estate assets. He tends to hold on to favorite stocks for a long time,soturnover isvery low,under10%annually in recent years, and nine of the 10 largest holdings (as of March 31, 2016) have been in the portfolio for more than a decade. Lee and his team pay particular attention to the real estate characteristics of the underlying assets in the stocks they own, especially location and the length of leases. The fund has long been underweight in healthcare REITs relative to their peers and the Wilshire US REIT Index, because the properties owned by those REITs are often in unattractive locations. Similarly, this fund doesn’t own any data center REITs, which have been hot lately as a play on cloud computing, because they also tend to be in out-of-the-way locations. Another reason Lee

doesn’t like healthcare REITs is they usually have very long-term leases, which makes them more bond-like and increases their interest-rate risk; he has shied away from triple-net lease REITs for the same reason. REITs performed well in the first half of 2016, but this fund trailed the category and the Wilshire benchmark due to its lack of exposure to hot areas such as data centers, and weak returns by apartment and office REIT holdings such as Equity Residential EQR and SL Green Realty SLG. However, the fund did very well in the tough REIT market of 2015, and it has been a steadily solid performer in the nearly 20 years since it launched, handily beating the category and the Wilshire benchmark over that time. On top of that, its 0.76% expense ratio is the lowest of any actively managed fund in Morningstar's real estate category, and T. Rowe Price is a topnotch steward that treats investorswell.All thisearns the fundaMorningstar Analyst Rating of Gold.

DCT Industrial Trust Inc

Current Investment Style

Sector Weightings h Cyclical r BasicMat t CnsmrCyc y FinanSvcs u Real Est j Sensitive i CommSrvs o Energy p Industrl a Technlgy k Defensive s CnsmrDef d Hlthcare f Utilities

% of Stocks

Rel Bmark 1

Market Cap % Giant 0.0 Large 42.0 Mid 43.2 Small 13.8 Micro 1.0 Avg $mil: 12,585

Value Blend Growth

Large Mid Small

100.00 -0.05

1.02

—

1.60 11.43

0.00

—

97.38 0.99 0.00 0.00

0.00 0.00

— —

Value Measures

Rel Category

Price/Earnings 30.32

0.87 1.07 1.17 1.20 0.82 0.93 1.36 -0.39 -1.29 1.20

0.00 0.00

Price/Book Price/Sales

2.71 8.05

0.00 0.00 0.00 0.00 0.00

— — — — —

Price/Cash Flow 19.18 Dividend Yield % 3.47

Growth Measures

% Rel Category

Long-Term Erngs 6.46

Book Value

3.99 2.56 7.47

Composition - Net

Sales

Cash 5.0 Stocks 94.3 Bonds 0.0 Other 0.7 Foreign 0.0 (% of Stock)

Address:

T. Rowe Price Real Estate Fund, Inc.

Minimum Purchase: Min Auto Inv Plan:

$2500 Add: $100 IRA: $1000

Cash Flow

Baltimore, MD 21202

$2500 Add: $100

Historical Erngs 28.31

800-638-5660

Sales Fees:

No-load, 1.00%R 0.30%, 0.15%A

Web Address:

www.troweprice.com

Management Fee:

Profitability

%

Inception:

10-31-97

Actual Fees:

Mgt:0.59% Dist:0.00%

Return on Equity Return on Assets

14.01

Advisor:

T. Rowe Price Associates, Inc.

Expense Projections: 3Yr:$243 5Yr:$422 10Yr:$942

4.95

Subadvisor:

None

Income Distribution:

Quarterly

Net Margin

32.62

A

ß ® Mutual Funds

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