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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
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
People ∞ Positive
Parent ∞ Positive
Price ∞ Positive
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
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
15.0
20.0
5.0
Historical Profile
Return
Risk
Rating
Average
Average
QQQQ
Above Avg
5 5 8 5 5 8 8 8 Investment Style
Equity
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
& ) ( * & ( * & * & ) Performance Quartile
(within Category)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 07-16 History
25.33 19.18 11.13 13.83 17.50 18.36 21.01 21.21 26.86 27.49 31.05 NAV
36.75 -18.80 -39.08 31.65 29.89 7.32 17.03 3.28 29.75 4.78 14.05 Total Return %
0.72 -2.10 -0.74 3.06 1.42 -1.15 -0.96 0.88 -0.52 2.24 -4.27 +/- Bmark 1
15.80 -30.46 3.12 -2.97 17.22 14.67 0.90 -19.52 25.59 7.14 8.46 +/- Bmark 2
3.23 2.90 3.91 5.06 3.07 2.30 2.53 2.35 2.86 2.33 1.02 Income Return %
33.52 -21.70 -42.99 26.59 26.82 5.02 14.50 0.93 26.89 2.45 13.03 Capital Return %
20 82 55 26 16 59 43 14 45 6 78 Total Rtn % Rank Cat
0.62 0.72 0.74 0.55 0.42 0.40 0.46 0.49 0.60 0.62 0.28 Income $
0.60 0.79 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Capital Gains $
0.78 0.74 0.75 0.77 0.76 0.78 0.78 0.79 0.76 0.76 . Expense Ratio %
1.60 1.49 2.85 2.84 1.26 1.10 1.35 1.25 1.54 1.51 . Income Ratio %
25 33 15 20 13 5 6 4 3 7 . Turnover Rate %
2,333 1,940 1,585 2,206 2,519 2,670 3,392 3,476 4,826 5,212 . Net Assets $mil
Performance 07-31-16
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2012 12.53 2.40 0.15 1.41 17.03
2013 5.90 -0.85 -2.34 0.72 3.28
2014 10.00 6.51 -3.05 14.23 29.75
2015 5.55 -9.89 2.66 7.31 4.78
2016 4.26 4.64 — — —
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo 12.03 -2.14 8.22 64 11,203
6 Mo 18.99 -3.57 6.62 72 11,899
1 Yr 18.88 -3.46 19.33 53 11,888
3 Yr Avg 14.36 -0.26 8.49 31 14,957
5 Yr Avg 12.41 -0.66 5.79 25 17,950
10 Yr Avg 6.90 -0.47 2.27 46 19,494
15 Yr Avg 11.83 0.12 1.51 30 53,495
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) 13.21 10 1.01 20
5 Yr (estimated) 11.36 13 0.94 28
10 Yr (estimated) 5.61 25 1.21 32
Potential Capital Gain Exposure: 42% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr 18.88
3 Yr 14.36 Avg Avg QQQQ
5 Yr 12.41 +Avg -Avg QQQQ
10 Yr 6.90 Avg +Avg QQQ
Incept 10.72
Other Measures Standard Index Best Fit Index
Alpha 10.8 0.6
Beta 0.58 0.94
R-Squared 22 98
Standard Deviation 14.58
Mean 14.36
Sharpe Ratio 0.99
Portfolio Analysis 06-30-16
Total Stocks: 37
Share change since 03-31-16 Sector YTD Ret % % Assets
TSimon Property Group Inc Real Est 18.41 9.16
YT. Rowe Price Reserve Inv — — 5.02
TGeneral Growth Properties Real Est 18.82 4.78
TAvalonBay Communities Inc Real Est 2.29 4.70
TPrologis Inc Real Est 28.91 4.69
TEquity Residential Real Est -5.63 4.21
YPublic Storage Real Est -2.13 4.06
TRegency Centers Corp Real Est 26.15 3.89
TEssex Property Trust Inc Real Est -0.97 3.64
YFederal Realty Investment Real Est 17.44 3.63
TMacerich Co Real Est 12.28 3.57
TSL Green Realty Corp Real Est 5.56 3.54
Douglas Emmett Inc Real Est 23.41 3.07
TCamden Property Trust Real Est 18.67 3.04
TKimco Realty Corp Real Est 23.24 3.03
TBoston Properties Inc Real Est 12.46 2.88
Vornado Realty Trust Real Est 8.70 2.67
TWeingarten Realty Investo Real Est 27.01 2.44
THealthcare Realty Trust I Real Est 29.80 2.35
DCT Industrial Trust Inc Real Est 35.94 2.33
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 0.0
Large 42.0
Mid 43.2
Small 13.8
Micro 1.0
Avg $mil:
12,585
Value Measures Rel Category
Price/Earnings 30.32 0.87
Price/Book 2.71 1.07
Price/Sales 8.05 1.17
Price/Cash Flow 19.18 1.20
Dividend Yield % 3.47 0.82
Growth Measures % Rel Category
Long-Term Erngs 6.46 0.93
Book Value 3.99 1.36
Sales 2.56 -0.39
Cash Flow 7.47 -1.29
Historical Erngs 28.31 1.20
Profitability %
Return on Equity 14.01
Return on Assets 4.95
Net Margin 32.62
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 100.00 -0.05
r BasicMat 1.02 —
t CnsmrCyc 1.60 11.43
y FinanSvcs 0.00 —
u Real Est 97.38 0.99
j Sensitive 0.00 0.00
i CommSrvs 0.00 —
o Energy 0.00 —
p Industrl 0.00 0.00
a Technlgy 0.00 —
k Defensive 0.00 —
s CnsmrDef 0.00 —
d Hlthcare 0.00 —
f Utilities 0.00 —
Composition - Net
Cash 5.0
Stocks 94.3
Bonds 0.0
Other 0.7
Foreign 0.0
(% of Stock)
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.
Address: T. Rowe Price Real Estate Fund, Inc. Minimum Purchase: $2500 Add: $100 IRA: $1000
Baltimore, MD 21202 Min Auto Inv Plan: $2500 Add: $100
800-638-5660 Sales Fees: No-load, 1.00%R
Web Address: Management Fee: 0.30%, 0.15%A
Inception: 10-31-97 Actual Fees: Mgt:0.59% Dist:0.00%
Advisor: T. Rowe Price Associates, Inc. Expense Projections: 3Yr:$243 5Yr:$422 10Yr:$942
Subadvisor: None Income Distribution: Quarterly
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