Discount Rate Study N°33

During the analysis period corresponding to the second quarter of 2023, an average increase of 13 basis points is observed in the discount rates of the Residential, Commercial and Strip Center Real Estate sub-industries in relation to the previous quarter, while the sub-industries -Office, Industrial and Development industries decreased by 20 basis points, on average. The main cause of variations in Real Estate discount rates is due to changes in the market credit spread, variations in beta and an increase in the risk-free rate by 19 basis points. The impacts by sub-industry were diverse, with positive effects in Office, Development and Industrial and negative effects in Residential, Commercial and Strip Center.