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Investment Strategy

Published by Raymond James & Associates

Harry G. Katica, CFA, Director of Private Client Research, (727) 567-2248, Harry.Katica@RaymondJames.com

March 23, 2012

Investment Strategy ____________________________________________________________________________________

Who is the Next Apple? Tech Stocks with High Cash per Share

Source: Raymond James, Thomson Reuters.

The Next Apple. While most investors think of the next super growth stock, Apple has now set a new precedent by initiating a dividend expected to produce an annual yield of about 1.75%. The Most Likely Candidates are in the Circle. We took the largest technology stocks and compared the dividend yield and cash as a percent of the total share price. Big bubbles = lots of cash. Time to Increase the Dividend? Technology stocks have historically been stingy with dividends. Following Apples move, we believe the biggest bubbles are the most able to increase dividends.

Please read domestic and foreign disclosure/risk information beginning on page 309 and Analyst Certification on page 309.
2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

Investment Strategy

Global Research

Contents

Investment Commentary ....................................................................... 3 Equity Favorites for Yield-Oriented Investors ........................................ 4 Energy Master Limited Partnerships (MLPs) ........................................ 16 REITs ..................................................................................................... 19 Closed-End Funds ................................................................................. 24 Index of Companies .............................................................................. 26

Additional information is available on request.

Additions & Removals


The following changes were made in this Equity Income Report. Please check the recent research on each stock to determine the reason for the change. An addition usually reflects an upgrade or price decline, creating a higher yielding stock. A deletion often results from price appreciation, a downgrade, or lower confidence in the near-term earnings outlook.

Added
Microsoft (MSFT-MO2) - Recent Initiation of Coverage

Deleted
Time Warner Cable (TWC-MO2) Analyst thought the stock was fairly valued following recent run. Wal-Mart (MP3) Downgraded from Strong Buy to Market Perform on 2/22.

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

Global Research

Investment Strategy

Investment Commentary
Apple Pays a Dividend
Capping off a nearly 20% move in the S&P since November was the news that Apple, the perennial darling of technology investors and one of the best growth stocks in recent memory, is going to pay a dividend. Not just a token one, but a whopping $10.60 per share, equating to about a 1.75% annual yield. If you were one of those fortunate investors that bought the stock under $400, where it traded as recently as December 2011, the yield is close to 3%. This move could mark a game change in tech. It seems like not even Apple can figure out a way to spend $100 billion and generate an acceptable return on investment. Thus, management decided on a direct return to shareholders. Also, the initiation of a dividend also brings on board a whole group of mutual funds and other investors that can only buy stocks with a dividend. A real yield also provides some buffer to the stock as many dividend-paying stocks seem to gain support at a 3.5%-4.0% yield, even if earnings trends are lackluster. This might be even lower for quality tech stocks, but that is just a gut feel. Apples announcement puts the spotlight on other large cap tech stocks with significant cash positions, strong cash flow, and more moderate earnings growth. As indicated by the large bubbles in the chart on page 1, these stocks include (GOOG, ORCL, DELL, and CSCO). In our view, there will be growing shareholder pressure to follow Apples lead and raise or implement dividends to provide a more reasonable dividend yield. In turn, income investors will have more than just Intel and Microsoft from which to choose. Good news on dividends is coming from more than just the technology sector, according to Standard and Poors.com. Year to date, over 100 stocks in the S&P 500 have raised or initiated a dividend, compared to a rough average of 70-75 per year since 2004. Better economic prospects and healthy corporate profits have created enough cash flow to significantly benefit dividends and stock buybacks. Capitalism does appear to work after all. Equity Research management believes a dividend-focused approach reflects the long-term needs of many of our clients. The Equity Income Report features common equities, REITs, Energy MLPs, and closed-end funds that pay a sustainable dividend or distribution. We believe these investments offer sustainable income at current rates or higher, above average prospects for total return, and may be considered alternatives to other lower yielding instruments. The basic parameters of these securities are as follows: 1. 2. 3. 4. Better-than-average dividend yield with favorable financial track record High yield, low leverage REITS and MLPs High quality preferred stocks with good yields Discounted, low leverage closed-end funds

The Equity Favorites for Yield-Oriented Investors section highlights stocks under coverage by Raymond James with Strong Buy and Outperform ratings that have favorable earnings prospects, attractive dividends, healthy balance sheets, and robust cash flow. Both current income and total return potential will be considered in determining whether a stock makes the list. We also highlight some preferred or convertible bonds, which could represent alternatives to the common stock. For growth investors or follow-up information on these stocks, please refer to the Analysts Current Favorites, Analysts Best Picks, or individual company reports. These lists present a wide variety of recommendations for the long-term investor, opportunistic intermediate-term buyer, and the active trader. Harry G. Katica, CFA, Director of Private Client Research
2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

Investment Strategy

Global Research

Equity Favorites for Yield-Oriented Investors


These stocks, from a screening of the Raymond James Strong Buy- and Outperform-rated universe feature healthy balance sheets, attractive cash flows, and superior total return prospects. Each has a market capitalization of more than $1 billion and most offer a dividend yield of 2.0% or greater.

Abbott Laboratories (ABT)


Outperform Price 3/21/12 $60.39 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $4.66 $5.00 $5.35 P/E1 12.1x Dividend/ Yield $2.04/3.3% Market Cap.2 $94,570.7

Abbott Laboratories is a diversified healthcare company with a history of solid execution and returning value to shareholders. Abbott is in the process of splitting into two separate entities: Pharmaceuticals and Diversified Medical Products (DMP). We expect the combined company to generate high single-digit EPS growth in 2012. Abbott generates an approximate 10% free cash flow yield and a 3.5% dividend yield. Pharmaceuticals (approximately 44% of revenue) is a slow growth, high-margin business that is expected to generate significant free cash flow. Humira (for Rheumatoid Arthritis) makes up nearly half of Pharma revenue, but continues to grow well. The pipeline is somewhat early, but has improved over the last year. It includes drugs for chronic kidney disease, multiple sclerosis, and HCV. Diversified Medical Products features: Branded Generic Pharmaceuticals (roughly 15% of revenue), Nutritionals (~16% of revenue), Diagnostics (~11% of revenue), and Vascular products (~9% of revenue). The DMP business has many of the characteristics that healthcare investors are looking for in this environment: solid mid-to-high singledigit revenue growth, potential for operating margin expansion, diversity (four segments, none over 30% of sales), emerging markets exposure (39% of sales), and less reimbursement risk (40% of sales stems from self pay). We believe DMP will garner a higher multiple as a stand-alone business.

Jayson Bedford, Medical Supplies & Devices

Aflac, Inc. (AFL)


Outperform Price 3/21/12 $46.69 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $6.33 $6.43 $6.66 P/E 7.3x
1

Dividend/ Yield $1.32/2.8%

Market Cap.2 $21,771.5

Aflac, Inc. has reported solid earnings over the past few quarters, even excluding the strength of the Japanese yen. Japanese sales increased 11% in 2010 and 19% in 2011 impressive considering the Tohoku earthquake and its repercussions with much of the growth being driven by the bank channel. Sales guidance for Japan suggests a range of -2% to -5% for 2012 as bank sales tail off. U.S. sales were up 6.8% for 2011 on an annual basis driven by group insurance sales through the independent agency force. Sales growth guidance remains +3% to +8% for the next year. Exposure to PIIGS, perpetual, and below investment grade bonds has been significantly reduced (total holdings are now down to $2.2 billion on amortized cost) now that the company has exited its Greek, non-senior holdings in Ireland, and its Portuguese bank holdings. Exposure is primarily senior debt in certain Spanish, Irish, and Italian banks, Italian sovereign debt, and Spanish municipal debt. As the total unrealized loss in the PIIGS portfolio is now $294 million with $271 million deriving from bank securities we believe the de-risking with regard to losses has been substantially completed. Earnings are still expected to increase 2% to 5% in 2012 on a functional currency basis. The key remains relatively limited losses in 2012, allowing for maximum dividends and share repurchase in 2013.

Steven D. Schwartz, CFA, Insurance

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

Global Research Analog Devices, Inc. (ADI)


Strong Buy Price 3/21/12 $40.14 Fiscal Year Oct Non-GAAP EPS Estimate 2011A 2012E 2013E $2.72 $2.29 $2.87 P/E1 17.5x

Investment Strategy

Dividend/ Yield $1.20/3.0%

Market Cap.2 $12,262.8

Analog Devices, Inc. (ADI) is driving financial model changes through cost-saving initiatives, which is resulting in record-high margins as we move through this cycle. We see possible peak-year gross margin in the low 70% range with operating margin in the low 40% range, above managements current 62-65% and 30-33 targets, respectively. ADI delivered record gross and operating margin in the most recent quarter. ADI manufactures 60-65% in-house, therefore providing leverage to an upturn. On the cost side, ADI is benefitting from the consolidation of two facilities as well as a renewed focus on keeping operating costs under control. ADI has the #1 market share position in analogto-digital/digital-to-analog converters and the #2 position in amplifiers, which should allow the company to leverage solid brand recognition across multiple applications. With regard to markets, ADI has leverage to industrial and automotive, which are driving revenue upside. Additionally, the company is well positioned for ramping global carrier capital spending on communications infrastructure (industrial, automotive, and communications combined are more than 80% of revenue for ADI). The companys 3.0% dividend yield adds to the total return potential.

J. Steven Smigie, Analog and Communications Semiconductors

Automatic Data Processing (ADP)


Strong Buy Price 3/21/12 $55.08 Fiscal Year Jun Non-GAAP EPS Estimate 2011A 2012E 2013E $2.52 $2.74 $3.03 P/E 20.1x
1

Dividend/ Yield $1.58/2.9%

Market Cap.2 $27,611.6

Automatic Data Processing remains well positioned as the leading payroll/benefits processor to continue to gain market share leveraging its investments in sales and technology. The company is led by an experienced management team, enjoys a high level of recurring revenue (approximately 90%), and maintains a AAA credit rating. Cash flow from operations for FY12 is expected to remain solid in the range of $1.6-1.7 billion. The spending on acquisitions will likely track close to the historical norm of $300-400 million per year. The company has enough in the coffers to spend $400-500 million on share repurchases.

Michael J. Baker, Benefits Management

BB&T Corporation (BBT)


Strong Buy Price 3/21/12 $31.07 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $1.83 $2.63 $3.04 P/E1 11.8x Dividend/ Yield $0.80/2.6% Market Cap.2 $21,658.9

While the U.S. banking sector remains plagued by economic uncertainty, increasing regulatory burdens, and European debt/banking issues, we believe BB&Ts lower risk profile, diverse business mix, and capital strength provide for an attractive investment opportunity at a reasonable valuation. Moreover, the company recently passed the Feds latest round of stress tests where it raised its quarterly dividend from $0.16/share to $0.20/share which was in line with our expectations. Going forward, we anticipate continued improvement in asset quality, solid loan growth, and positive operating leverage while also remaining cognizant that it has minimal exposure to European banks, no sovereign debt exposure, and is not hampered by mortgage issues affecting several of its peers.

Michael Rose, Banking

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

Investment Strategy BP plc (BP)


Strong Buy Price 3/21/12 $46.00 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $6.69 $6.04 $4.98 P/E1 7.6x Dividend/ Yield $1.92/4.1%

Global Research

Market Cap.2 $147,319.6

BP plc, based in the United Kingdom, is one of the world's largest private-sector integrated oil and gas companies, with E&P and refining assets primarily located in the U.S. and Russia. Our constructive stance on BP is based on several factors. First, BP has an asset base with an enhanced profitability profile following numerous divestitures, with additional sales still to come. Second, BPs current valuation is the lowest in its peer group, on both NAV and earnings. Third, the dividend provides a yield of 4.1%, near the high end of the peer group. As with any of the majors, BPs earnings are subject to volatility in commodity prices and (to a lesser extent) refining margins. Notwithstanding numerous legal settlements already in place, BP shares are also subject to oil spill-related legal risk.

Pavel Molchanov, Integrated Majors and Refiners

Brinker International (EAT)


Strong Buy Price 3/21/12 $28.58 Fiscal Year Jun Non-GAAP EPS Estimate 2011A 2012E 2013E $1.52 $1.90 $2.15 P/E 15.0x
1

Dividend/ Yield $0.64/2.1%

Market Cap.2 $2,389.3

Brinker International is among the highest yielding stocks in our casual dining universe. During the last recession the company harvested free cash flow and aggressively reduced its balance sheet debt (net debt/EBITDA currently at 1.4x) and streamlined its operations by selling ancillary brands. Shortly thereafter, management unveiled a five-year turnaround plan to improve the profitability of its core Chilis brand (targeting 500 bp EBITDA margin improvement and doubling EPS to roughly $2.75 by 2015) by restructuring the physical layout of its kitchens, implementing a new labor model, updating the units' exteriors and interiors, and upgrading its technology infrastructure. The companys FY11 (June) results reflected solid margin gains from the first phase of the turnaround and a comp recovery at Chilis, and we expect additional gains in FY12 and FY13 as we enter phase two of the turnaround (kitchen retro-fits, technology upgrades, remodels). We expect the companys free cash flow to grow considerably from the current annual rate of approximately $150 million, which should support consistent dividend increases of 10-15% annually, in addition to significant share repurchases ($125 million+ per year) going forward.

Bryan C. Elliott, CFA, Restaurants

Cardinal Health Inc. (CAH)


Outperform Price 3/21/12 $41.41 Fiscal Year Jun Non-GAAP EPS Estimate 2011A 2012E 2013E $2.80 $3.16 $3.55 P/E 13.1x
1

Dividend/ Yield $0.86/2.2%

Market Cap.2 $14,443.8

Cardinal Health, Inc. continues to offer an attractive risk/reward, especially when considering the earnings leverage from upcoming brand-to-generic conversions and the opportunities to drive growth through more active capital deployment. More specifically, our constructive rating is predicated on the belief that the combination of executing on strategic initiatives (improving margins in the Rx distribution business, Medical segment re-positioning), a solid balance sheet, accretion from recent acquisitions and continued traction of its turnaround (improvement in generic "wallet share" and share gains among independents, to name a few) should facilitate further momentum in shares. Plus, the generic wave in FY12/FY13 will also lead to strong margin performance over the next couple of fiscal years and could be additive to our current forecasts. We note that the company raised its annual dividend in mid-2011 by 10% to $0.86 per share, with expectations for further gains over the coming quarters.

John W. Ransom & Nicholas Jansen, Drug Distributors

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

Global Research CenturyLink (CTL)


Strong Buy Price 3/21/12 $39.52 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $2.64 $2.28 $2.43 P/E1 17.3x

Investment Strategy

Dividend/ Yield $2.90/7.3%

Market Cap.2 $24,487.0

CenturyLink and the other incumbent local exchange carriers (ILECs) have been impacted by the economy and competition to some degree; however, CenturyLink now stands as the third-largest provider in the U.S. based on access lines. Following the acquisitions of Embarq, Qwest, and SAVVIS, we believe CenturyLink can drive improved top-line growth, especially by focusing on some of the small- to medium-sized business customers that were previously ignored at both Embarq and Qwest. The SAVVIS acquisition shows a strong desire by management to grow one of the highest demand areas of business. We believe the SAVVIS management team can drive higher returns within the former Qwest data centers, and also gain access to customers through CenturyLink that it otherwise would not have reached. Trading at 6.9x our 2013 FCF estimate vs. the group at 7.5x and with a 7.3% yield, we believe the shares have upside from current levels.

Frank G. Louthan IV, Telecommunications Services

Chevron Corp. (CVX)


Strong Buy Price 3/21/12 $107.91 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $13.20 $11.78 $10.78 P/E1 9.2x Dividend/ Yield $3.24/3.0% Market Cap.2 $214,428.0

Chevron Corp. is one of the world's largest private sector integrated oil and gas companies, with E&P and refining assets primarily located in the U.S. and Asia-Pacific. Our positive thesis on Chevron is based on three main points. The first one is an above-average oil focus, seen within the context of our bifurcated commodity outlook constructive on oil (globally), ultra bearish on natural gas (in North America). The second factor is Chevrons impressive drill-bit track record, with the highest organic resource replacement rate among peers. Third, while current production growth is minimal, the mid-decade start-up of the Gorgon and Wheatstone liquefied natural gas (LNG) projects should accelerate growth toward 5% per year, well ahead of most peers. Chevron has a negative net debt/cap ratio (as of 4Q11) and offers a current dividend yield of 3.0%. As with any of the majors, Chevrons earnings are subject to volatility in commodity prices and (to a lesser extent) refining margins.

Pavel Molchanov, Integrated Majors and Refiners

Chubb Corporation (CB)


Outperform Price 3/21/12 $69.04 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $5.12 $6.00 $6.10 P/E 11.5x
1

Dividend/ Yield $1.64/2.3%

Market Cap.2 $19,483.1

Chubb Corporation has an attractive franchise in all of its specialty lines of businesses due in part to the integrity of its claims operation, reserves/balance sheet, the AA financial strength rating from S&P, and the A++ rating from A.M. Best. Chubb has many other positive investment characteristics, including strong brand name recognition, scale (Chubb ranks in the top 10 for commercial insurance underwriters writers and top 20 for personal lines underwriters by market share), and an inexpensive stock valuation. Chubb continues to utilize various capital management strategies such as an active share repurchase program and quarterly cash dividends. The company has increased its quarterly dividend every year since 1985. Dividend increase announcements generally occur in late February/early March.

C. Gregory Peters, Insurance

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

Investment Strategy CME Group Inc. (CME)


Outperform Price 3/21/12 $298.67 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $17.03 $17.50 $19.76 P/E1 17.1x Dividend/ Yield $8.92/3.0%

Global Research

Market Cap.2 $19,921.3

We believe that CME Group is well positioned from both a competitive and capital perspective to drive healthy shareholder returns over the next several years. From a competitive perspective, the firms core exchange-traded futures business stands to benefit from a diverse product set and macroeconomic/regulatory trends that should drive continued transaction volume growth, with a bevy of organic growth initiatives contributing to earnings growth longer term. The firm is also returning a meaningful amount capital to shareholders. In February, CME raised its quarterly dividend by 59% to $2.23, this after raising its dividend by 22% at the beginning of 2011. In addition to the most recent increase, CME also announced the implementation of an annual variable dividend to be determined at the end of each calendar year. All told, CME will return approximately $800 million to shareholders through dividend payments during 2012. CMEs financial position is strong with debt-to-EBITDA at 1.0x and over $1 billion in cash on the balance sheet at the end of the December quarter. While we dont see a meaningful catalyst for earnings in the near term due primarily to a shift back on the timing for future interest rate hikes, we believe that CMEs strong cash flow generation abilities should support the outlined capital returns to shareholders.

Patrick O'Shaughnessy, CFA, Brokerages and Exchanges

Copa Holdings, S.A. (CPA)


Outperform Price 3/21/12 $76.65 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $7.09 $7.62 $8.75 P/E1 10.1x Dividend/ Yield $1.64/2.1% Market Cap.2 $3,394.1

We believe Copa is well positioned to benefit from the continued strong LatAm economic growth with its advantageous and defensive market position for intra-LatAm air traffic movements at its hub in Panama. Furthermore, Copa has pricing power because of the strong commodity-based economies in Latin American countries. While dividend payments are at the discretion of its Board of Directors, Copa generally pays out 20% to 30% of its annual net income. Copa ended 2011 with $506 million in cash and short-term investments, representing 28% of TTM revenue. Net adjusted debt (including the present value of operating leases minus unrestricted cash) was $998 million, which equates to 42% of total capitalization.

James D. Parker, Ph.D. & Savanthi Syth, CFA, Airlines

Darden Restaurants (DRI)


Outperform Price 3/21/12 $52.33 Fiscal Year May Non-GAAP EPS Estimate 2011A 2012E 2013E $3.41 $3.61 $4.15 P/E1 14.5x Dividend/ Yield $1.72/3.3% Market Cap.2 $6,970.4

Darden Restaurants brand portfolio is comprised of concepts that are among the largest and most profitable within their respective segments and are led by the broadest and deepest management team in the casual dining sector. The 750-unit Olive Garden brand (approximately 50% of profits) remains the strongest profit producer among major casual dining chains despite underperforming industry peers in 2011 as industry competitors encroached on the brands value leadership position. We believe managements renewed efforts to reinvigorate said value positioning, brand messaging, and the launch of a significant remodeling program should support comps soon. The company is working through the final stage (remodels) of its revitalization and repositioning of the 700-unit Red Lobster brand. Recent comp trends seem to indicate that managements overhaul of the brand (menu, advertising, remodels) executed over the last few years is clearly gaining traction with consumers. The 350-unit Longhorn concept continues to generate strong comp gains supported by strong menu innovation and an emerging advertising presence, which should support 10%+ annual unit growth for some time. In all, this adds up to potential annual EPS growth of 10%+, and management expects to grow the dividend in line with EPS.

Bryan C. Elliott, CFA, Restaurants

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

Global Research Ensco plc (ESV)


Outperform Price 3/21/12 $54.44 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $3.04 $5.15 $6.50 P/E1 10.6x

Investment Strategy

Dividend/ Yield $1.50/2.8%

Market Cap.2 $12,581.1

Enscos leverage to the high spec jackup and floater markets, as well as its substantial newbuild program, should drive meaningful earnings growth in 2012 and beyond. Leading edge dayrates for high spec assets continues to strengthen, and Ensco is ideally situated to take advantage of this scenario. We estimate the company will generate free cash flow in excess of $1 billion in 2013, which is good for an 8% yield. We also note the $1.50 per share annual dividend (supported by our projected free cash flow) yields roughly 2.8%.

J. Marshall Adkins & Collin Gerry, Oilfield Services

Glacier Bancorp, Inc. (GBCI)


Strong Buy Price Fiscal GAAP EPS Estimate Dividend/ Market 3/21/12 Year 2011A 2012E 2013E P/E1 Yield Cap.2 $15.02 Dec $0.24 $0.78 $1.13 19.3x $0.52/3.3% $1,080.2 Glacier's credit quality continues to improve, and although loan growth will likely be muted over the near term, we continue to be constructive on shares of GBCI given the companys position as a consolidator, strong management team, and promising earnings potential. With a large excess capital base, the company remains on the hunt for acquisitions which, coupled with declining credit costs, will boost profitability ratios beyond current levels. Additionally, Glaciers roughly 3.5% dividend yield is the highest among our West Coast bank coverage universe, further providing value to a stock that, in our opinion, is undervalued.

W. Christian Stulpin, Banking

Hancock Holding Company (HBHC)


Strong Buy Price 3/21/12 $35.86 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $2.02 $2.45 $3.00 P/E 14.6x
1

Dividend/ Yield $0.96/2.8%

Market Cap.2 $3,037.3

Despite the noise surrounding the Whitney acquisition last June, results are beginning to exhibit the positive merits afforded by the deal. Indeed, 4Q11 results reflected loan growth that exceeded our forecast, noninterest expenses that declined more than expected, a higher than forecast net interest margin (NIM), improvement in its deposit mix, and asset quality that remained solid but exhibited modest deterioration. Moreover, it reiterated that it expects to meet its previous cost savings targets ($134 million by the beginning of 2013) and now expects merger-related charges will be less than its previous $125 million guidance. Bottom line, we continue to believe the combination of Hancock/Whitney should provide for stronger fundamental performance/profitability over the next few years relative to peers given a higher concentration of C&I loans, outsized cost savings opportunities, greater downside NIM protection, and opportunities for revenue synergies not incorporated into our forecasts.

Michael Rose, Banking

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

Investment Strategy Harris Corporation (HRS)


Strong Buy Price 3/21/12 $43.82 Fiscal Year Jun Non-GAAP EPS Estimate 2011A 2012E 2013E $4.88 $5.15 $5.54 P/E1 8.5x Dividend/ Yield $1.32/3.0%

Global Research

Market Cap.2 $4,989.8

Harris Corporations core business has been excellent, the balance sheet is strong, and recent acquisitions appear promising. Management continues to expect the RF business to rebound, aided by strong international orders ($2 billion pipeline), contribution of non-tactical radio products, and improving public radio sales. The 3% dividend yield is well supported and the company has demonstrated a consistent commitment to returning cash to shareholders.

Chris Quilty, Defense Electronics

Huntington Bancshares Inc. (HBAN)


Strong Buy Price 3/21/12 $6.41 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $0.59 $0.60 $0.69 P/E 10.7x
1

Dividend/ Yield $0.16/3.1%

Market Cap.2 $5,540.8

Dating back to the installation of a new senior management team in 2009 and the subsequent aggressive measures to de-risk the balance sheet by writing down problem loans, Huntington has been better positioned to take advantage of market disruption following the credit cycle. As credit quality distractions have subsided, Huntington has been quicker than many of its peers in returning to offense. Most notably, the strong growth in its commercial and industrial (C&I) portfolio (+12.2% year-over-year) reflects its success in taking market share from competitors as well as the resurgence in manufacturing activity throughout its upper Midwest footprint. While growing the loan portfolio, its Fair Play banking philosophy, which emphasizes convenience and fairness for retail customers, is clearly enhancing its deposit mix, and cross-sell initiatives throughout the firm have boosted noninterest income. Following the completion of the Federal Reserve's stress tests, Huntington maintained its quarterly dividend at $0.04 per share for the next 12 months. The $0.16 per share annualized dividend equates to a 27% payout ratio based on our 2012 EPS estimate of $0.60.

David J. Long, CFA, Banking

IBERIABANK Corporation (IBKC)


Strong Buy Price 3/21/12 $54.21 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $2.36 $3.12 $3.64 P/E 17.4x
1

Dividend/ Yield $1.36/2.6%

Market Cap.2 $1,593.8

IBERIABANK Corporation stands as one of the best-positioned banks in the Southeast and Southwest, in our view, and we believe it will have a plethora of avenues in which to deploy capital going forward in a manner that is both accretive to franchise value and earnings power. In this vein, the company has completed five FDIC-assisted acquisitions and two open bank deals during this cycle. We believe this will translate to superior returns for shareholders. Moreover, its fortress-like balance sheet and superior asset quality set the stage for strong fundamental performance even if the capital is not fully deployed in the near term (next 6-12 months). Outside of acquisitions, de novo expansion into new markets (including Memphis, Mobile, and Houston), and new business lines (capital markets and wealth management) provide growth tailwinds as these investments, among others, reach and exceed profitability, thus broadening IBERIABANKs reach while providing bottom-line contribution. Going forward, we would not be surprised to see additional acquisitions or expansion into new markets.

Michael Rose, Banking

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

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International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

Global Research j2 Global, Inc. (JCOM)


Outperform Price 3/21/12 $30.27 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $2.53 $2.53 $2.64 P/E1 12.0x

Investment Strategy

Dividend/ Yield $0.84/2.6%

Market Cap.2 $1,422.7

j2 is a leading provider of cloud-based services. The company has over 50% market share in its core IP fax market. Low-to-mid single-digit organic growth, solid operating margins and accretive M&A should serve as catalysts to drive shares higher. Historically, j2 has achieved at least 20% cash-on-cash returns on acquisitions (very successful M&A track record). j2 has also been an aggressive buyer of its own stock when M&A valuations are not attractive. We see limited downside given the strong and steady FCF generation (grew FCF during the previous recession) and current valuation.

Shyam Patil, CFA, Communications Software

Leggett & Platt (LEG)


Outperform Price 3/21/12 $22.86 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $1.18 $1.33 $1.51 P/E1 17.2x Dividend/ Yield $1.12/4.8% Market Cap.2 $3,317.0

Leggett & Platt is a leading manufacturer of engineered products for the furnishings and non-furnishings markets. While near-term revenue trends remain captive to the uncertain macroeconomic climate, margins seem likely to benefit from incremental restructuring actions and improved pricing discipline. In the meantime, Leggetts strong balance sheet, positive cash flow, ongoing share repurchase program, and roughly 5% dividend yield provide a measure of downside support.

Budd Bugatch, CFA, Furniture & Furnishings Suppliers

Lincare Holdings Inc. (LNCR)


Outperform Price 3/21/12 $27.16 Fiscal Year Dec GAAP EPS Estimate 2011A 2012E 2013E $1.93 $2.28 $2.45 P/E1 11.9x Dividend/ Yield $0.80/2.9% Market Cap.2 $2,363.2

We continue to believe that Lincare shares offer intriguing long-term value at current levels, driven by (1) ongoing healthy FCF generation (approximately $250 million or a +10% FCF yield) even during periods of Medicare reimbursement reductions, (2) strong organic top-line growth with opportunities for additional market share gains as well as cost cutting opportunities as management prepares for competitive bidding in Round 2, (3) ancillary growth opportunities (such as specialty pharmacy, INR monitoring) as the company leverages its existing customer base, and (4) myriad of capital deployment availability (dividends, share repurchases, and M&A). We see the roughly 3% dividend yield providing support for shares at current levels, with long-term multiple expansion driven by better clarity on the reimbursement front, something we would expect to see over the next six months.

John W. Ransom & Nicholas Jansen, Alternate Site Healthcare Providers

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

11

Investment Strategy Marsh and McLennan Companies, Inc. (MMC)


Strong Buy Price 3/21/12 $32.86 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $1.77 $2.10 $2.40 P/E1 15.6x Dividend/ Yield $0.88/2.7%

Global Research

Market Cap.2 $17,711.5

Marsh & McLennan is positioned as the second-largest global insurance broker (largest in U.S.) with a diversified revenue base. We continue to favor Marsh & McLennan's leverage to a potentially improving global economy, higher interest rates, stabilizing property/casualty rate environment, expected margin improvement, and attractive valuation. Marsh & McLennan utilizes various capital management strategies including share repurchases and quarterly cash dividends.

C. Gregory Peters, Insurance

Maxim Integrated Products, Inc. (MXIM)


Outperform Price 3/21/12 $28.51 Fiscal Year Jun Non-GAAP EPS Estimate 2011A 2012E 2013E $1.72 $1.39 $1.66 P/E1 20.5x Dividend/ Yield $0.88/3.2% Market Cap.2 $8,533.0

We believe Maxim is positioned to outgrow the analog market this year due to multiple growth levers across major end-markets as well as smaller, under-penetrated areas that Maxim has entered through acquisition. We believe Maxim can achieve revenue growth three to five points above the industry and we think the company will continue to deliver on its target financial model for gross margin for 61-64% and operating margin above 30%. We believe Maxim is benefitting from a balanced business model and should see meaningful growth from its consumer and industrial businesses in CY12. Consumer is Maxims largest end market, from which we expect outperformance as the company ramps analog baseband, power SoC, audio and other design wins on smartphones/tablets. Maxim has design wins at every major handset OEM and wins on over 45 tablets. In industrial, we see potential for upside from growing analog content in broad applications such as automobiles and energy meters. We think recent and future acquisitions will materially impact the top line in CY12. In addition to solid fundamentals, Maxim has a solid balance sheet, a healthy stock buyback program, and a 3.2% dividend yield.

J. Steven Smigie, Analog and Communications Semiconductors

Microsoft (MSFT)
Outperform Price 3/21/12 $31.91 Fiscal Year Jun GAAP EPS Estimate 2011A 2012E 2013E $2.69 $2.66 $2.87 P/E1 12.0x Dividend/ Yield $0.80/2.5% Market Cap.2 $267,749.5

Microsoft faces a broad set of secular challenges as computing shifts from the client/server model towards a mobile/cloud-based architecture. However, we believe the stock has underpriced several cyclical opportunities in the medium-term including: a) the Windows 8 (W8) launch which expands the operating system's addressable market by supporting ARM-based devices including tablets and potentially smartphones; b) refreshes of the Office and Windows Server product lines; and c) a modest macroeconomic recovery and PC shipment "snapback" in 2H12 following the HDD shortage. MSFT pays a 2.5% dividend and the company has a very strong balance sheet with over $50 billion in cash and equivalents. In addition, the stock is trading at 10.5x CY13 EPS and an 11% FCF yield, below its three-year average P/E of 11.1x. With several medium-term catalysts, strong fundamentals, and compelling valuation, MSFT remains a top value pick in our software coverage.

Michael Turits, Ph.D., Infrastructure Software

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

12

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

Global Research New York Community Bancorp (NYB)


Strong Buy Price 3/21/12 $13.75 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $1.09 $1.06 $1.12 P/E1 13.0x

Investment Strategy

Dividend/ Yield $1.00/7.2%

Market Cap.2 $5,996.4

New York Community Bancorp continues to be the quintessential defensive play yielding more than 7%. Profitability, capital, and credit quality ratios should continue to rank very high, as the company bridges the gap to a more favorable rate environment. In 2012, we estimate ROA and ROTE at 1.08% and 14.85%, respectively, with NCOs at only 0.12% of total loans. Going forward, the company expects to originate more loans in 2012 than in 2011. Additionally, multifamily prepayment fees are expected to remain strong, and residential refinancing activity is expected to significantly pick up due to the very low interest rate environment. As a reminder, in 4Q11, the NIM was higher than expected due to a significant increase in prepayment income (to $28.9 million in 4Q11 from $12.1 million in 3Q11). As a result, the NIM expanded 12 bp from the prior quarter. Fourth quarter results were also highlighted by strong loan growth, including a pickup in multifamily lending. Total loan originations increased to $5.1 billion in 4Q11 from $3.7 billion in 3Q11. The company remains focused on enhancing growth through acquisitions, however, will only consider deals that are immediately accretive and add value to shareholders. Additionally, because of potential regulatory burdens of going over the $50 billion threshold, the company would prefer relatively large deals that would put it well over the threshold. As for the $0.25/share quarterly common stock dividend, it anticipates no changes.

Anthony Polini, Banking

Norfolk Southern Corp. (NSC)


Strong Buy Price 3/21/12 $67.20 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $5.35 $5.67 $6.42 P/E 11.9x
1

Dividend/ Yield $1.88/2.8%

Market Cap.2 $22,753.9

Norfolk Southern continues to be lifted by a strong industry backdrop of garnering "inflation plus" pricing and benefiting from continued market share gains (via intermodal) given the enduring cost and "green" advantages of the rails vs. truck. We point out that while rising fuel may be margin dilutive, it is largely recovered through fuel surcharge mechanisms over the long term. Importantly, higher fuel costs should drive faster truck-to-rail conversions given the inherent fuel efficiency advantages of rail driving a higher "value proposition" to shippers. After a dismal 2009, traffic rebounded sharply in 2010 and was up a healthy 5% in 2011 with domestic intermodal and lucrative export coal leading the way. Norfolk Southern generates strong free cash flow with a 5.1% yield on our 2012 estimates. Given approximately $275 million of cash on the balance sheet, moderate debt maturities over the next few years, a reinstituted share buyback program and dividend increases of 18% in the past 12 months we foresee further capital returned to shareholders in the form of dividend increases. In part due to a recent pullback on utility coal concerns, NSC showcases an industry-leading 2.8% dividend yield (33% payout on our 2012 EPS estimate).

Patrick Tyler Brown, CFA & William H. Fisher, CFA, Transportation Services

Northern Trust Corporation (NTRS)


Outperform Price 3/21/12 $47.40 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $2.58 $2.90 $3.30 P/E 16.3x
1

Dividend/ Yield $1.20/2.5%

Market Cap.2 $11,423.4

In our view, NTRS shares offer investors ownership of a well diversified, high-quality, large-cap financial institution with a relatively conservative balance sheet. Northern Trust operates in two highly attractive businesses: global custody and private banking (including wealth management), and it carries considerably less credit risk than its peers. Global secular trends are favorable and are supported by the modernization of global pension plans, favorable demographics, and increasing cross-border investing and complexity of investment strategies and products. We believe growth over the next few years will be driven primarily by new opportunities in Europe. However, activity in China, India, and throughout Asia has accelerated and is likely to become a larger portion of assets under custody (AUC) growth over the next several years. Of the custody banks (including State Street [STT] and Bank of New York Mellon [BK]), we believe Northern Trust is positioned to produce the strongest top-line growth given its smaller relative size, attractive competitive positioning, and personal wealth management leadership. Following the completion of the Federal Reserve's stress tests in mid-March, Northern Trust increased its quarterly dividend to $0.30 per share from $0.28. The $1.20 per share annualized dividend equates to a 41% payout ratio based on our 2012 EPS estimate of $2.90.

David J. Long, CFA, Banking


2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

13

Investment Strategy People`s United Financial (PBCT)


Strong Buy Price 3/21/12 $13.25 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $0.65 $0.84 $0.94 P/E1 15.8x Dividend/ Yield $0.63/4.5%

Global Research

Market Cap.2 $4,619.0

We believe Peoples United is one of the best-positioned banks for rising interest rates given its excess capital and asset sensitive balance sheet. We believe PBCT shares will benefit from a better-than-average NIM outlook, strong organic loan and deposit growth, and more share buybacks as the company leverages its excess capital and eventually benefits from a rising interest rate environment. Peoples United is expected to deliver at least doubledigit annual growth in operating EPS and mitigate NIM compression (largely through strong loan growth), even during these challenging times. The company remains focused on deploying its excess capital via its decent dividend, additional share repurchases, and possible M&A activity if the right opportunity were to present itself. The company did not repurchase any shares in 4Q11, after repurchasing 15.8 million shares in 3Q11. It has authorization to repurchase an additional 5% of common shares. Furthermore, PBCT has one of the strongest balance sheets in the industry and its performance during the last recession was head and shoulders above the industry from a fundamental and stock price perspective.

Anthony Polini, Banking

Stanley Black & Decker (SWK)


Strong Buy Price 3/21/12 $79.13 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $5.24 $5.80 $6.55 P/E 13.6x
1

Dividend/ Yield $1.64/2.0%

Market Cap.2 $13,214.7

Stanley Black & Decker is seeing significant benefits from the recently acquired Black & Decker business. The recent rollout of new lithium ion products should improve the companys competitive position, and cost synergies, which we expect will allow the company to grow free cash flow to more than $1 billion by 2012, are coming in ahead of plan. Stanley enjoys terrific operating leverage on incremental sales (30-40% contribution margins) and as such should benefit meaningfully from an economic recovery. Further, its legacy mid-cycle businesses (primarily commercial security applications and, to a lesser extent, industrial tools) are fundamentally high margin, low in capital-intensity, and have a high level of recurring sales, making it a very attractive complement to its early cycle exposure. Stanley has increased its dividend for 44 consecutive years, the longest record among all industrial companies listed on the New York Stock Exchange.

Sam Darkatsh & Budd Bugatch, CFA, Home & Building Products

Umpqua Holdings Corp. (UMPQ)


Outperform Price 3/21/12 $13.40 Fiscal Year Dec GAAP EPS Estimate 2011A 2012E 2013E $0.65 $0.76 $1.01 P/E1 17.6x Dividend/ Yield $0.28/2.2% Market Cap.2 $1,503.5

With the three government-assisted acquisitions completed in 2010 are now fully phased in, we are optimistic of Umpquas earnings power going forward. The majority of credit issues are now well in the past, the company has ample capital, and with loan growth turning in a positive direction driven by strong commercial loan growth, we believe this company provides an attractive investment opportunity. On the growth side, we expect Umpqua will continue to open new branches, and will be open to additional attractive M&A opportunities throughout its footprint (we believe one to two small bank acquisitions could take place by year-end 2012 in its urban markets). With strong capital levels, Umpqua recently raised its quarterly common stock dividend by 40%, representing a dividend payout ratio of 37% based on reported 2011 earnings. Management expects its longer-term dividend payout ratio to be in the 35% to 45% range; however, we believe the company will retain capital to focus on acquisition opportunities.

W. Christian Stulpin, Banking

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

14

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

Global Research United Parcel Service (UPS)


Outperform Price 3/21/12 $80.51 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $4.35 $4.85 $5.40 P/E1 16.6x

Investment Strategy

Dividend/ Yield $2.28/2.9%

Market Cap.2 $78,658.3

United Parcel Service (UPS) continues to be buoyed by pricing power given its strong position in the U.S. ground parcel market. UPS remains entrenched in the global supply chain as it moves an estimated 6% of U.S. and 2% of world GDP. Further, while domestic volumes will likely highly correlate with U.S. economic activity, an added boost could come from e-commerce, the newer SurePost offering, and Postal Service woes. Supply chain operations continue above trend-line growth in part with a strong global healthcare vertical. International operations have several fast growing end markets and could also get an added boost from a potential acquisition of TNT Express, which could be a nice catalyst for 2013. Strong free cash flow generation remains a hallmark at UPS with the company boasting a robust 7.5% yield on our $5.5 billion 2012 estimates. With over $4 billion of cash on the balance sheet, UPS recently stated plans to return 100% of net income to shareholders in the form of dividends and share buybacks (50/50). Over the next three years, UPS expects annual share count reduction of 2.5-3.0%, barring the potential TNT acquisition. Importantly, UPS raised its dividend 10% in February bringing the eight-year cumulative increase to 75%. UPS currently garners a transportation industry-leading 2.9% dividend yield, with a 46% payout on our 2012 forecast.

William H. Fisher, CFA & Patrick Tyler Brown, CFA, Transportation Services

Valley National Bancorp (VLY)


Outperform Price 3/21/12 $13.11 Fiscal Year Dec Non-GAAP EPS Estimate 2011A 2012E 2013E $0.81 $0.78 $0.80 P/E 16.8x
1

Dividend/ Yield $0.69/5.3%

Market Cap.2 $2,228.7

We believe Valley National Bancorp represents an attractive defensive play given its conservative balance sheet, superior credit culture, and long-term track record for high-quality growth, in our opinion. The fourth quarter was highlighted by a 3.2% LQ increase in core noninterest income, commercial loan growth driven by increases in C&I and CRE loans, and strong growth in noninterest bearing deposits. On December 30, 2012, the company completed its merger with Long Island-based State Bancorp ($1.6 billion in assets) with an effective date of January 1, 2012. The deal has expanded the companys footprint in the metro NYC area. The acquisition is expected to be fully integrated in 1Q12. The companys capital position remains very strong with a tangible common equity ratio of 6.90%. Historically, VLY has been accorded a premium valuation largely due to its above-average profitability and superior balance sheet strength.

Anthony Polini, Banking

Xilinx, Inc. (XLNX)


Outperform Price 3/21/12 $36.48 Fiscal Year Mar GAAP EPS Estimate 2011A 2012E 2013E $2.39 $1.90 $1.98 P/E1 19.2x Dividend/ Yield $0.88/2.5% Market Cap.2 $9,773.0

Xilinx currently pays a quarterly dividend of $0.22 per share or $0.88 on an annual basis. This is up 16% from the company's previous quarterly dividend of $0.19. Xilinx finished the December quarter with cash and short-term investments at $1.76 billion, which equates to $6.69 per share. We believe Xilinxs strong balance sheet, along with its duopolistic position in programmable logic devices (PLDs), positions the company to take advantage of a significant share shift from application specific integrated circuits (ASICs) and application specific standard products (ASSPs) to PLDs (a market opportunity approximately 10x the PLD market of roughly $5 billion in the next several years).

Hans Mosesmann, Semiconductors


1

P/E multiple based on fiscal 2012 EPS estimate. 2 $ in millions.

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

15

Investment Strategy

Global Research

Energy Master Limited Partnerships (MLPs)


The Alerian MLP Index (AMZ/404.12), which represents a diversified group of the 50 most prominent Master Limited Partnerships (MLPs) using a float-adjusted, capitalization-weighted methodology, appreciated approximately 1.3% in February and is currently up roughly 4.7% year-to-date. The year has gotten off to a solid start, as investors have become more confident around the U.S. economy. The higher beta, energy stocks have performed well since the beginning of the year, lending to the underperformance of the AMZ index compared to the S&P 500, OSX, and EPX indices. Respectively, these indices posted returns of 8.6%, 17.5%, and 10.0%, exemplifying gravitation toward greater growth and the increasing acceptance of slightly more risk necessary to achieve such growth. Another example of this trend is visible in the Volatility Index (VIX), which sat at 17.11 as of March 12, more than 1 standard deviation below the mean. The drop in the VIX demonstrates two things: 1) a tempering of investor sentiment toward market volatility, and 2) mitigation of fear within the market. As the so-called fear index subsides, this could imply a bullish signal as skittish investors are more likely to move back into the market. Compared to the other yield-oriented assets, the AMZ Index is outpacing the Utilities Index (XLU) which is down 3.0%, while slightly trailing the REIT Index (VNQ) which is up 5.2%. From a macroeconomic perspective, positive market momentum continued into January and February due in large part to improvements in the labor market and positive economic indicators. This was partially offset by concern of a Greek default and geopolitical tensions in the Middle East both of which remain unresolved in our view. Despite perpetuating sovereign volatility, from a fundamental perspective, the need for domestic midstream infrastructure has never been more evident than today, underscored by the amount of production growth from emerging unconventional sources. By our models, the top five shale plays account for approximately 50% of the rigs currently drilling and are on pace to account for approximately 50% of natural gas production in the next five to seven years. We estimate that roughly $8 billion per year of capital investment in new infrastructure will be necessary to fulfill the growth in production from crude, refined products, natural gas, and NGLs over the next decades. Breaking this down a bit further, our outlook on 1) crude oil transportation, storage and logistics (i.e. asset optimization to capitalize on regional and grade quality differentials) and 2) NGL supply and logistics remains positive as the exponential rise in supply of both crude and natural gas liquids seems poised to spur above-average investment in midstream infrastructure serving as a key catalyst for future cash distribution growth. In addressing the former, WTI crude oil posted a year-to-date gain of 8.3%, while natural gas continues to experience bearish headwinds (prompt month prices decreased over 18.3% since the start of the year as the structural over-supplied status and mild weather has pushed record surplus in storage). The steepness of the yield curve continues to signal an economic recovery and in addition to the accommodative stance of the Fed, the low interest rate environment is conducive to strong performance by the MLP asset class. Of note, the low interest rate environment and subsequently more attractive cost of capital thresholds remain favorable to returns on invested capital (ROIC), thereby underscoring the potential for greater distributable cash flow generation over the long term. As our long-term fundamental thesis remains intact, we reiterate our view that the MLP asset class remains a compelling investment when considering the long-term, tax-advantaged total return potential. In addressing selectivity, the characteristics core to our long-term thesis include: 1) geographic scale and asset diversity; 2) stable and visible contracted cash flow from underlying assets; 3) scope in backlog via organic initiatives (i.e., low risk, low capital intensity projects) and prudence in capital allocation regarding potential acquisitions; 4) the financial/liquidity flexibility to facilitate growth; 5) sound management with a track record of execution; and 6) greater transparency into above-average y/y cash distribution growth without taking on disproportionate risk in achieving that objective. The partnerships that exemplify such characteristics include: Enterprise Products Partners LP (EPD), EV Energy Partners (EVEP), Linn Energy (LINE), Plains All American Pipeline L.P. (PAA), Targa Resources Corporation (TRGP), Teekay LNG Partners L.P. (TGP), and Teekay Offshore Partners L.P. (TOO).

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

16

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

Global Research MLP Priority List


3-Yr ('11-'14) RJ Price 3/15/12 $50.82 $29.14 $39.19 $71.92 $38.44 $44.99 $79.02 Yield 3/15/12 4.88% 6.86% 6.89% 4.24% 7.18% 2.99% 5.19% 5.4% AMZX 396.49 6.0% Dist. CAGR 5.51% 5.22% 6.69% 8.76% 13.44% 29.75% 8.06% 10.6% Total Return Since 12/31/2010 29.8% 12.0% 10.2% 92.3% 11.0% 71.8% 32.6% 36.8% 9.1% TTM Total Return 30.3% 6.5% 4.5% 67.3% 6.3% 37.9% 32.7% 26.4% 10.4% Credit Rating Mdy's Ba a 3 NR NR B3 B2 B3 Ba a 3 S&P BBBNR NR B B N/A BBB-

Investment Strategy

Debt/ Total Capital 25% 48% 41% 27% 27% 35% 24% 32%

Dist. 2012E 1.71x 1.10x 1.12x 1.22x 1.52x 1.23x 1.24x 1.29x

Cash in 1000s $107,700 $179,934 $93,627 $30,312 $1,114 $145,800 $14,000

Coverage & Equivs.

MLP Enterprise Products Partners L.P. Teekay Offshore Partners L.P. Teekay LNG Partners L.P. EV Energy Partners LP Linn Energy L.L.C. Targa Resources Corporation Plains All American Pipeline L.P.
Average Al eri a n MLP Index Tota l Return

Ticker Rating EPD TOO TGP EVEP LINE TRGP PAA


SB1 SB1 SB1 SB1 SB1 MO2 MO2

This analysis does not include transaction costs and tax considerations. If included these costs would reduce an investors return. Past performance is not indicative of future results. A complete record of our MLP Priority List and stock recommendations for the trailing 12 months is available upon request. Source: Thomson and Raymond James Estimates. Priced: 03/15/2012 (at close)

Enterprise Products Partners L.P. (EPD)


Strong Buy Price 3/21/12 $51.26 Fiscal Year Dec 2011A $2.37 EPU Estimate 2012E 2013E $2.36 $2.53 P/E 21.7x
1

Dividend/ Yield $2.48/4.9%

Market Cap.2 $45,621.9

Enterprise Products Partners L.P. is the largest publicly traded MLP and enjoys one of the lowest costs of capital in the MLP space. Stable cash flows are supported by a geographically diverse and vertically integrated asset base with a large and growing fee-based component. Given the partnerships excellent financial flexibility and visible growth opportunities in emerging shale plays, we believe Enterprise is optimally positioned to generate higher returns on invested capital over the long term.

Darren Horowitz & Kevin Smith, Midstream Suppliers

EV Energy Partners L.P. (EVEP)


Strong Buy Price 3/21/12 $71.40 Fiscal Year Dec Operating EPU Estimate 2011A 2012E 2013E $2.24 $2.63 $1.81 P/E 27.1x
1

Dividend/ Yield $3.05/4.3%

Market Cap.2 $3,021.6

EV Energy Partners has a tremendous amount of untapped value held in its undeveloped Utica Shale acreage. Over the next several months, we expect to hear more about this emerging shale play as the industry accelerates the development, providing additional catalysts for EV Energy Partners. Given the partnerships improving distribution growth outlook, organic Barnett Shale growth potential, and its undeveloped Utica Shale acreage, EV Energy Partners' distribution growth outlook is as strong as it has been at any time in the partnership's history.

Kevin Smith & Darren Horowitz, Exploration and Production

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

17

Investment Strategy LINN Energy, LLC (LINE)


Strong Buy Price 3/21/12 $38.10 Fiscal Year Dec Operating EPU Estimate 2011A 2012E 2013E $1.81 $1.61 $2.12 P/E1 23.7x Dividend/ Yield $2.76/7.3%

Global Research

Market Cap.2 $7,596.0

LINN Energy is the largest upstream MLP and has one of the strongest organic growth prospects of any MLP. Through the combination of the partnerships horizontal Granite Wash and Permian Basin drilling program, along with its disciplined commodity hedging program, the partnership has the opportunity to consistently grow its distribution by approximately 5% per year for the next several years. Furthermore, given the partnerships premium valuation and accretive nature, LINN stands to capitalize on the tremendous acquisition opportunities in the upstream space.

Kevin Smith & Darren Horowitz, Exploration and Production

Plains All American Pipeline L.P. (PAA)


Outperform Price 3/21/12 $79.64 Fiscal Year Dec 2011A $5.11 EPU Estimate 2012E 2013E $4.75 $4.97 P/E 16.8x
1

Dividend/ Yield $4.10/5.2%

Market Cap.2 $12,389.6

Plains All American Pipeline L.P. is an MLP engaged in the transportation, storage, terminalling, and marketing of crude oil, refined products, and LPGs (liquid petroleum gas) of more than 3 MMbbls/d in the U.S. and Canada. Plains possesses a vertically integrated model strongly positioned to capture profit opportunities related to growing domestic oil production. With one of the most visible/stable cash flow profiles, enhanced by 8-9% growth in its feebased business, we project distribution CAGR slightly above 6% over the next several years.

Darren Horowitz & Kevin Smith, Midstream Suppliers

Targa Resources Corp. (TRGP)


Outperform Price 3/21/12 $45.41 Fiscal Year Dec GAAP EPS Estimate 2011A 2012E 2013E $0.73 $1.03 $1.40 P/E 44.1x
1

Dividend/ Yield $1.35/2.9%

Market Cap.2 $1,927.2

With Targa Resources Partners L.P. crossing the 50% incentive distribution rights (IDR) threshold, Targa Resources Corp is positioned to capitalize on above-average LP distribution growth. Given the underlying partnerships favorable geographic asset scale and growing NGL logistics footprint benefitting from liquids-rich shale production, TRGP embodies an attractive total return and will outperform the market in the year ahead with a projected 3-Yr Cash Dividend CAGR of 19%. Targa Resources Corp.s ownership in Targa Resources Partners provides levered growth to assets with a significant presence in liquids rich shale plays and exposure to a vertically integrated business model maximizing value across every step of the gathering and processing/NGL supply chain.

Darren Horowitz & Kevin Smith, Midstream Suppliers

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

18

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

Global Research Teekay LNG Partners L.P. (TGP)


Strong Buy Price 3/21/12 $39.55 Fiscal Year Dec 2011A $1.51 EPU Estimate 2012E 2013E $1.22 $1.47 P/E1 32.4x

Investment Strategy

Dividend/ Yield $2.52/6.3%

Market Cap.2 $2,565.2

Teekay LNG Partners, L.P. is headquartered in Hamilton, Bermuda and is an international provider of liquefied natural gas (LNG) and crude oil marine transportation services. It was formed in November 2004 by Teekay Corporation, the world's largest owner and operator of medium-sized crude oil tankers, to expand its operations in the LNG shipping sector. Teekay LNG is the third-largest independent operator of LNG carriers in the world. With a visible suite of acquisition opportunities and favorable industry dynamics to support cash flow growth, we believe Teekay LNG has the potential to deliver above-average long-term cash distribution growth (+6% targeted over the next several years).

Darren Horowitz & Kevin Smith, Midstream Suppliers

Teekay Offshore Partners L.P. (TOO)


Strong Buy Price 3/21/12 $29.50 Fiscal Year Dec 2011A $(1.58) EPU Estimate 2012E 2013E $1.25 $1.57 P/E 23.6x
1

Dividend/ Yield $2.00/6.8%

Market Cap.2 $2,083.6

Teekay Offshore Partners was formed by Teekay Corporation, the worlds largest operator of mid-size crude oil tankers, to expand its operations in deepwater offshore markets. Teekay Offshore benefits from the expertise of its general partner and visible drop down opportunities provided to it by Teekay Corp. We believe that the partnership will benefit not only from positive trends in global deepwater oil production but also through accretive acquisitions from its parent.

Darren Horowitz & Kevin Smith, Midstream Suppliers


1

P/E multiple based on fiscal 2012 EPS estimate. 2 $ in millions.

REITs
We remain bullish on REIT prospects over the next year and expect attractive returns from these levels, driven by 8% FFO growth and 4% dividend yields (and growing dividends). This is the fourth year of the third up-cycle since the modern REIT era began in 1991, with the two previous up-cycles spanning seven years each and delivering compound annual returns of 20% (1991-1997) and 22% (2000-2006). The REITs have delivered a 21% compound return the first three years of this up-cycle, still tracking our expectations of a 10-15% compound return for the entire up-cycle. While early in the year, economic data points have thus far been slightly better than we expected and continue to provide an accommodative backdrop for commercial real estate. We believe REITs present an attractive value at current levels, with the REIT sector average yield at 3.6%. Additionally, outsized dividend growth could be a catalyst for the REITs, as the REITs exited the downturn with lower payout ratios (72% AFFO payout for 2012E vs. a historical average of 80%). Valuations appear fair on an NAV basis, with the Raymond James REIT Index trading at an 8% premium to consensus NAV estimates, above the midpoint of the historical range of 20% in any given part of the cycle. However, continued demand growth across all property types, driven by an improving economy with virtually no new supply, should keep REITs on an upward trajectory in 2012. As for individual stock recommendations, the Raymond James REIT Priority List is our compilation of REIT stocks that we believe are better positioned to deliver a superior relative return given earnings growth, dividend yield, sector exposure, and capital appreciation potential as compared to other REITs we cover. The following table provides details on the current composition of the list.
2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

19

Investment Strategy
3/15/2012 Price 146.84 10.02 11.81 45.01 71.48 44.69 23.46 Current Div.Yield 3.0% 4.0% 2.7% 2.0% 4.1% 3.6% 2.0% 3.1% 2012 2013 FFO Growth FFO Growth 16% -9% 30% 21% 8% NA 23% 10% 3% 8% 8% 11% NA 22%

Global Research
2012 Multiple 22.0x 4.9x 16.2x 20.3x 16.2x NA 18.9x 16.4x 2013 Multiple 20.0x 4.8x 14.9x 18.8x 14.6x NA 15.5x 14.8x

Company Essex Property Trust, Inc. Glimcher Realty Trust CubeSmart Post Properties Digital Realty Trust Rayonier, Inc. Pebblebrook Hotel Trust Average:

Ticker ESS GRT CUBE PPS DLR RYN PEB

Rating Strong Buy Outperform Outperform Strong Buy Strong Buy Outperform Outperform

Source: Raymond James, Thomson Reuters.

Since its introduction in the second quarter of 1998, the Income Focused/Priority List combo has delivered a cumulative 220% total return, compared to 163% for the RMS index. To date in 2012, the REIT Priority List has returned 9.6% compared to 8.4% for the MSCI REIT Total Return index. Below is a table detailing the YTD performance of the list constituents.

REIT Priority List - 2012 Year to Date Performance


Holding Period (Days) 9 9 9 Holding Period or 15-Mar Start End Price Price Price Change 18.08 5.37 24.21 18.19 5.56 25.93 0.6% 3.5% 7.1% Holding Trailing Period 12-Month Total Total Return Income Return 0.6% 3.5% 7.1% 0.0% 0.0% 0.0%

REIT Previously on the List BioMed Realty Trust Strategic Hotels & Resorts LaSalle Hotel Properties Currently on the List Rayonier, Inc. Essex Property Trust, Inc. Glimcher Realty Trust CubeSmart Post Properties Digital Realty Trust Pebblebrook Hotel Trust

Ticker BMR BEE LHO

Date Added 1/1/2012 1/1/2012 1/1/2012

End Date 1/10/2012 1/10/2012 1/10/2012

Dvd -

RYN ESS GRT CUBE PPS DLR PEB

1/10/2012 1/1/2012 1/10/2012 1/1/2012 1/1/2012 1/1/2012 1/10/2012

3/15/2012 3/15/2012 3/15/2012 3/15/2012 3/15/2012 3/15/2012 3/15/2012

65 74 65 74 74 74 65

45.18 140.51 9.16 10.64 43.72 66.67 19.65

44.69 146.84 10.02 11.81 45.01 71.48 23.46

-1.1% 4.5% 9.4% 11.0% 3.0% 7.2% 19.4% 9.2% 8.4% 7.8% 12.2% 11.5% -2.2%

0.40 0.07 0.73 -

-0.2% 4.5% 9.4% 11.7% 3.0% 8.3% 19.4% 9.6% 8.4% 7.8% 12.5% 12.1% -1.2%

0.9% 0.0% 0.0% 0.6% 0.0% 1.1% 0.0% 0.4%

15.5% 26.6% 21.8% 20.3% 24.1% 33.8% 13.0%

MSCI REIT Index MSCI REIT Index price only Russell 2000 S&P 500 Dow Jones Utility Index

RMS RMZ RUT SPX DUX

1/1/2012 1/1/2012 1/1/2012 1/1/2012 1/1/2012

3/15/2012 3/15/2012 3/15/2012 3/15/2012 3/15/2012

74 74 74 74 74

1,086.88 796.76 740.92 1,257.60 464.68

1,178.72 858.55 831.46 1,402.60 454.66

14.6% 10.3% 6.5% 11.8% 17.3%

This analysis does not include transaction costs and tax considerations. If included, these costs would reduce an investors return. Past performance is not indicative of future results.

Source: Raymond James, Thomson Reuters, Bloomberg.

Since its inception in 2Q98, a total of 80 stocks have been recommended through the Raymond James REIT Priority List. Of these, 62 advanced and 22 declined on a total return basis within the recommended holding period. A complete record of all stocks recommended on the REIT Priority List is available on request.

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

20

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

Global Research CubeSmart (CUBE)


Outperform Price 3/21/12 $11.85 Fiscal Year Dec FFO /Share Estimate 2011A 2012E 2013E $0.56 $0.73 $0.79 P/E1 16.2x

Investment Strategy

Dividend/ Yield $0.32/2.5%

Market Cap.2 $1,516.8

Investors looking to play to a recovery in the self storage sector should take a look at CubeSmart (formerly known as U-Store-It), which we believe is well positioned to take advantage of improving demand given its high vacancy rate. We anticipate an extended slow growth recovery that will play out over the next several years and believe CubeSmart is well positioned to take advantage of improving fundamentals given its higher vacancy rate which allows the company to drive revenue growth from both rent and occupancy increases versus its peers which are almost at peak occupancy levels. However, we believe all of the public storage REITs are well positioned to outperform given the fundamental recovery and anticipated earnings growth across the industry. The current stock price implies a $98/ square foot valuation for CubeSmart compared to Public Storage ($191/sq. ft.) and Extra Space Storage ($140/sq. ft.). We expect CUBEs valuation gap will narrow now that the company has right sized the balance sheet and portfolio fundamentals have started to improve.

Paul D. Puryear & RJ Milligan, REITs

Digital Realty Trust, Inc. (DLR)


Strong Buy Price 3/21/12 $72.48 Fiscal Year Dec FFO /Share Estimate 2011A 2012E 2013E $4.06 $4.40 $4.88 P/E 16.5x
1

Dividend/ Yield $2.92/4.0%

Market Cap.2 $7,653.9

Digital Realty Trust is the leader among the data center REITs in terms of portfolio size, global footprint, market capitalization, and historical dividend growth. The demand for server power in data centers is expected to readily surpass new supply growth for the next several years, which should drive increasing pricing power on new and renewal leases. In addition to impressive organic growth, Digital's value-added acquisition/redevelopment platform, growing global footprint, and strong balance sheet allow the company to tally among the highest levels of cash flow, NAV, and dividend growth in the REIT space.

William A. Crow & Paul D. Puryear, REITs

Essex Property Trust, Inc. (ESS)


Strong Buy Price 3/21/12 $147.15 Fiscal Year Dec FFO /Share Estimate 2011A 2012E 2013E $5.74 $6.67 $7.35 P/E1 22.1x Dividend/ Yield $4.40/3.0% Market Cap.2 $5,488.7

Based on our analysis of MSA-level employment trends, housing vacancy statistics, and rent-vs.-own cost spreads, we believe Essexs concentration in robust West Coast rental markets gives Essex a high likelihood of exceeding revenue and earnings growth expectations. Thus far, we are very encouraged by the rental recovery across Essexs West Coast markets, and we expect these high-barrier-to-entry coastal markets to experience above-average rental growth over the next several years assuming just modest job growth. With rent-to-own metrics heavily skewed towards renting across its markets, we believe Essex remains positioned to achieve some of the strongest multi-year rent growth in the industry. Thus, we think Essexs strong multi-year revenue and earnings growth prospects warrant a premium valuation relative to peers and our current NAV estimate. For context, Essex management (which has been known to be historically conservative) currently believes its portfolio could experience weighted average market rent growth of approximately 28% over the next five years. In particular, we would highlight improving fundamentals in Seattle, San Jose, and Orange County, which all have low housing vacancy rates, job growth trends among the best in the country, and very limited supply pressure.

Buck Horne, CFA & Paul D. Puryear, REITs

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

21

Investment Strategy Glimcher Realty Trust (GRT)


Outperform Price 3/21/12 $10.21 Fiscal Year Dec FFO /Share Estimate 2011A 2012E 2013E $0.45 $0.69 $0.75 P/E1 14.8x Dividend/ Yield $0.40/3.9%

Global Research

Market Cap.2 $1,212.9

We continue to recommend Glimcher Realty Trust (GRT) to investors as we believe the company has multiple levers that will continue to drive both earnings growth (positive leasing spreads, occupancy increases, and the Scottsdale Quarter development) and multiple expansion (upgrading the portfolio through acquisitions/dispositions and reducing leverage). Mall fundamentals have surprised to the upside over the past year despite numerous macroeconomic headwinds and we believe the higher-end luxury consumer will continue to spend, driving higher sales (resulting in higher rents). On an NAV basis, we believe shares of GRT are attractively priced, trading at a 16% discount to our NAV estimate of $11.99 and an 7.6% implied cap rate. On an FFO multiple basis, GRT shares are trading at a 14.8x our 2012 FFO per share estimate, representing a significant six-turn FFO premium to regional mall REITs Pennsylvania Real Estate Investment Trust (PEI) and CBL & Associates (CBL) but a four-turn discount to the much better capitalized, larger mall REITs Simon Property (SPG) and Macerich (MAC).

RJ Milligan & Paul D. Puryear, REITs

Pebblebrook Hotel Trust (PEB)


Outperform Price 3/21/12 $23.23 Fiscal Year Dec FFO /Share Estimate 2011A 2012E 2013E $1.01 $1.24 $1.52 P/E 18.7x
1

Dividend/ Yield $0.48/2.2%

Market Cap.2 $1,203.3

Outperform rated Pebblebrook Hotel Trust is our top pick for 2012 within the lodging REITs. We believe Pebblebrook remains very well positioned to capitalize on what should continue to be an extended period of strengthening hotel fundamentals. The companys current portfolio, focused on urban tracts within key U.S. gateway markets benefitting from strong domestic demand and robust inbound international travel, should react well to the low supply growth and improving pricing environment. Further, opportunities for robust margin expansion should drive outsized FFO growth even amidst a slower acquisition environment.

William A. Crow & Paul D. Puryear, REITs

Post Properties, Inc. (PPS)


Strong Buy Price 3/21/12 $45.17 Fiscal Year Dec FFO /Share Estimate 2011A 2012E 2013E $1.83 $2.22 $2.40 P/E1 20.3x Dividend/ Yield $0.88/2.0% Market Cap.2 $2,398.5

In our view, Posts accelerating rent growth, low rent/income ratios, and attractive development pipeline present a compelling multi-year earnings growth profile at a valuation that still remains quite attractive. Post continues to have tremendous success pushing rents higher, with pricing power supported by a portfolio of well-located assets populated by higher income households. Specifically, 4Q same-store revenue rose 7.4% y/y, accelerating relative to last quarter's +6.7%. Fourth quarter renewal rates accelerated, rising 7.4%, up from 6.6% on average in 3Q. Importantly, this momentum has continued into 1Q, with renewals rates expected to match the 4Q average. In our view, Post's high mix of A-quality assets and exposure to households with rising incomes (resident-based income +9% y/y) is allowing the company to push rents more aggressively than many peers. With rent-to-income ratios (approximately 17%) in many of its markets still below peak levels, we expect momentum to continue through 2012.

Buck Horne, CFA & Paul D. Puryear, REITs

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

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International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

Global Research Rayonier, Inc. (RYN)


Outperform Price 3/21/12 $44.15 Fiscal Year Dec GAAP EPS Estimate 2011A 2012E 2013E $2.11 $2.10 $2.45 P/E1 21.0x

Investment Strategy

Dividend/ Yield $1.60/3.6%

Market Cap.2 $5,405.7

In our view, Rayonier is uniquely positioned for earnings growth due to the ongoing strength of its performance fibers business. Specifically, 2012 cellulose specialty price increases (+12-13% y/y) exceeded our expectations. Looking beyond 2012, we believe the company has positioned itself for future earnings and dividend growth by 1) investing in a cellulose specialties expansion project, 2) increasing its timber asset base by approximately 320,000 acres in 2011, and 3) securing entitlements on nearly 39,000 acres within its "coastal corridor" land portfolio. We currently find RYN shares trading at a 4% discount to our $46.44 NAV estimate (versus our REIT coverage universe which trades at a 14% premium) and yielding 3.6% (30 bp above our REIT coverage universe).

Buck Horne, CFA & Paul D. Puryear, REITs


1

P/E multiple based on fiscal 2012 EPS or FFO/share estimate. 2 $ in millions.

REIT Preferred Stock Issues


We do not formally cover or rate REIT preferred shares; rather, our view is based on an overview of the economy, credit and capital markets, and REIT preferreds more normalized 200-300 basis point spread over Treasuries. With the spread currently at 360 bp over Treasuries, REIT preferred yields offer an attractive investment opportunity for income-focused investors, though over the long term we believe rising interest rates could negatively affect preferred share prices (depending on the magnitude and timing).

Raymond James REIT Coverage Universe of Outstanding Investment Grade Preferred Stock Issues
Cusip Issue Ticker PSA.PRW-USA PSA.PRX-USA PSA.PRZ-USA PSA.PRA-USA PSA.PRC-USA PSA.PRD-USA PSA.PRF-USA PSA.PRM-USA PSA.PRN-USA PSA.PRO-USA PSA.PRP-USA PSA.PRQ-USA PSA.PRR-USA PSA.PRS-USA PSA.PRT-USA SPG.PRJ-USA KIM.PRF-USA KIM.PRG-USA KIM.PRH-USA KIM.PRI-USA EQR.PRN-USA REG.PRC-USA REG.PRD-USA REG.PRE-USA REG.PRF-USA O.PRE-USA O.PRF-USA NNN.PRD-USA HCN.PRD-USA HCN.PRF-USA HCN.PRJ-USA Sector Self Storage Self Storage Self Storage Self Storage Self Storage Self Storage Self Storage Self Storage Self Storage Self Storage Self Storage Self Storage Self Storage Self Storage Self Storage Malls Retail Retail Retail Retail Apartments Retail Retail Retail Retail Retail Retail Retail Health Care Health Care Health Care Issue Date 10/06/03 11/13/03 03/05/04 03/31/04 09/13/04 02/28/05 08/23/05 01/09/07 07/02/07 04/13/10 10/07/10 04/14/11 07/26/11 01/12/12 03/13/12 10/13/97 06/05/03 10/10/07 08/30/10 03/09/12 06/19/03 04/03/03 08/31/04 08/02/05 02/16/12 12/07/06 02/07/12 02/23/12 07/09/03 09/14/04 03/07/12 Call/ Conv. Date Callable Callable Callable Callable Callable Callable Callable Callable 07/02/12 04/15/15 10/07/15 04/14/16 07/26/16 01/12/17 03/13/17 10/15/27 Callable 10/10/12 08/30/15 03/20/17 Callable Callable Callable Callable 02/16/17 Callable 02/15/17 02/23/17 Callable Callable 03/07/17 Shs. Liq. Out. Pref. (Mil) $ 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 50 25 25 25 25 25 25 25 25 25 25 25 25 25 25 25 5.3 $ 4.8 4.5 4.6 4.4 5.4 9.9 19.1 6.9 5.8 5.0 13.0 17.0 16.0 17.0 0.8 7.0 18.4 7.0 16.0 6.0 3.0 5.0 3.0 10.0 8.8 15.0 11.5 4.0 7.0 11.5 Pcpl. Amt. ($Mil) 132.5 120.0 112.5 115.0 110.6 135.0 247.3 476.6 172.5 145.0 125.0 325.0 425.0 400.0 425.0 39.8 175.0 460.0 175.0 400.0 150.0 75.0 125.0 75.0 250.0 220.0 373.8 287.5 100.0 175.0 287.5 Pfd. Yield 6.500% 6.450% 6.250% 6.125% 6.600% 6.180% 6.450% 6.625% 7.000% 6.875% 6.500% 6.500% 6.350% 5.900% 5.750% 8.375% 6.650% 7.750% 6.900% 6.000% 6.480% 7.450% 7.250% 6.700% 6.625% 6.750% 6.625% 6.625% 7.875% 7.625% 6.500% 6.72% Price 3/15/2012 $25.22 $25.19 $25.30 $25.70 $25.29 $25.57 $25.21 $25.02 $25.80 $27.11 $27.16 $27.46 $26.58 $25.24 $24.85 $66.62 $25.32 $25.81 $27.94 NA $25.40 $24.99 $24.98 $24.95 $24.85 $25.15 $25.31 $25.04 $25.46 $25.47 $25.04 $26.97 Current Yield 6.44% 6.40% 6.18% 5.96% 6.52% 6.04% 6.40% 6.62% 6.78% 6.34% 5.98% 5.92% 5.97% 5.84% 5.78% 6.29% 6.57% 7.51% 6.17% NA 6.38% 7.45% 7.26% 6.71% 6.67% 6.71% 6.54% 6.61% 7.73% 7.48% 6.49% 6.53% Rating S&P Moody's BBB+ BBB+ BBB+ BBB+ BBB+ BBB+ BBB+ BBB+ BBB+ BBB+ BBB+ BBB+ BBB+ BBB+ BBB+ BBB BBBBBBBBBNR BBBBB+ BB+ BB+ BB+ BB+ BB+ BB+ BB BB BB Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 Baa1 NR Baa2 Baa2 Baa2 Baa2 NR Baa3 Baa3 Baa3 Baa3 Baa2 Baa2 Baa3 Baa3 Baa3 Baa3

INVESTMENT GRADE PREFERRED* 74460D570 Public Storage Inc Ser W 74460D554 Public Storage Inc Ser X 74460D521 Public Storage Inc Ser Z 74460D497 Public Storage Inc Ser A 74460D448 Public Storage Inc Ser C 74460D430 Public Storage Inc Ser D 74460D380 Public Storage Inc Ser F 74460D232 Public Storage Inc Ser M 74460D190 Public Storage Inc Ser N 74460D182 Public Storage Inc Ser O 74460D158 Public Storage Inc Ser P 74460D141 Public Storage Inc Ser Q 74460D125 Public Storage Inc Ser R 74460W206 Public Storage Inc Ser S 74460W404 Public Storage Inc Ser T 828806885 Simon Property Group Ser J 49446R869 Kimco Realty Corp Ser F 49446R844 Kimco Realty Corp Ser G 49446R828 Kimco Realty Corp Ser H 49446R794 Kimco Realty Corp Ser I 29476L784 Equity Residential Ser N 758849202 Regency Centers Corp Ser C 758849400 Regency Centers Corp Ser D 758849608 Regency Centers Corp Ser E 758849707 Regency Centers Corp Ser 6 756109708 Realty Income Corp Ser E 756109807 Realty Income Corp Ser F 637417601 National Retail Properties Ser D 42217K304 Health Care REIT Ser D 42217K403 Health Care REIT Ser F 42217K700 Health Care REIT Ser J

Investm ent Grade Total/Average: *From at least one rating agency

$ 6,835.7

Source: SNL Financial, Thomson Reuters, Raymond James.

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

23

Investment Strategy

Global Research

Closed-End Funds
Coinciding with the first one-percent down day for the S&P 500 that occurred on Tuesday, March 6, 2012 closed-end funds also posted their first week of average negative price return in 2012 during the week ending March 9, 2012. Over that week, closed-end funds pulled back in 11 sectors on a price basis, and 12 sectors on NAV. However, year to date, equity closed-end funds have returned 10.77% compared to the S&P 500 Index which has returned 9.31% as of March 13, 2012. Even so, there is still an abundance of double-digit yielding funds trading at discounts; however, we continue to advise caution when assessing the sustainability of dividends. As evidenced by municipal closed-end funds year-to-date return of 5.38% as of March 13, 2012, the municipal closed-end fund average premium continues to climb to an unsustainable level of 2.98%. We encourage you to review your holdings for funds trading at abnormally high levels, as there are currently 56 municipal funds trading above a 5% premium. Please contact Closed-End Fund Research for a review of your holdings and for any potential swap ideas as there are still attractively priced options available.

Ticker AOD NFJ GPM EXG GLQ FSD MFT NPX GBAB

Name Alpine Total D ynamic D ividend Fund NF J D ividend, Inte res t & Prem ium Strategy Fund Guggenheim Enhanced Equity Income Fund Eaton Vance Tax-Managed Global Div Eq Inc Fund Clough Global Equity Fund First T rust High Income Long/Short Fund BlackRock MuniYield Investment Quality Fund Nuveen Premium Income Municipal Opp Fund Guggenheim Build America Bonds Managed Duration Trust

NA V 5.21 18.85 9.64 10.43 15.60 18.41 14.91 14.33 22.65

Pr ice 4.80 18.13 9.44 9.15 13.26 17.88 14.69 14.02 22.06

Discount -7.87% -3.82% -2.07% -12.27% -15.00% -2.88% -1.48% -2.16% -2.60%

Yield 13.75% 9.93% 10.17% 12.43% 8.75% 8.96% 5.80% 5.31% 7.02%

12-mo. Av g. Discount -5.34% -4.94% -4.65% -12.06% -13.63% -6.09% -2.58% -5.03% -6.10%

Source: Raymond James Closed-End Fund Research. Prices as of 3/13/12.

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

24

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

Global Research

Investment Strategy

Exchange-Traded Funds
Investors seeking income opportunities will find many options available in the exchange-traded fund (ETF) universe. There are many sectors which have historically generated income on a relatively consistent basis, including master limited partnerships (MLPs) and utilities. One such product that offers exposure to these and other areas is the Guggenheim Multi-Asset Income ETF (CVY). This fund provides exposure not only to dividend-paying stocks that may include utilities, but also master limited partnerships, real estate investment trusts, closed-end funds, and preferred securities. Another product which offers specific MLP exposure is the Alerian MLP ETF (AMLP), which tracks an index that is comprised of energy infrastructure MLPs that earn a majority of their cash flow from the transportation and storage of energy commodities. In the utility space the Utilities Select Sector SPDR Fund (XLU) tracks an index which includes those companies within the S&P 500 that are from the following industries: electric utilities, gas utilities, multiutilities, and independent power producers & energy traders. Another option in the utility space, which offers global utility exposure, is the iShares S&P Global Utilities Sector Index Fund (JXI). This fund tracks an index comprised of U.S. and non-U.S. companies that S&P deems to be part of the utilities sector (providers of electric, gas or water utilities, or companies that operate as independent producers and/or distributors of power). Please contact Exchange-Traded Fund Research for additional ideas or any questions you may have.

Ticker CVY AMLP XLU JXI

Name Gugg enheim Multi-Asset I ncome ET F Alerian MLP ETF Utilities Select Sector SPDR Fund iShares S&P Global Utilities Sector Index Fund

NAV 22.26 16.89 35.21 42.73

Pr ice 22.28 16.90 35.69 42.85

Indicated Yield* 5.00% 5.56%** 3.83% 4.51%

*Indicated Yield The forecasted annual yield at the current distribution rate. **Yield for the underlying index, the Alerian MLP Infrastructure Index, as of 2/29/12

Source: Raymond James Closed-End Fund Research. Prices as of 3/13/12.

Amy Charles, Closed-End Funds

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

25

Investment Strategy

Global Research

Index of Companies
Page Company 4 4 5 5 5 6 6 6 7 7 7 8 8 21 8 21 9 17 21 17 9 22 9 9 10 10 10 11 18 18 11 12 12 12 13 13 Abbott Laboratories Aflac, Inc. Analog Devices, Inc. Automatic Data Processing BB&T Corporation BP plc Brinker International Cardinal Health Inc. CenturyLink Chevron Corp. Chubb Corporation CME Group Inc. Copa Holdings, S.A. CubeSmart Darden Restaurants Digital Realty Trust, Inc. Ensco plc Enterprise Products Partners L.P. Essex Property Trust, Inc. EV Energy Partners L.P. Glacier Bancorp, Inc. Glimcher Realty Trust Hancock Holding Company Harris Corporation Huntington Bancshares Inc. IBERIABANK Corporation j2 Global, Inc. Leggett & Platt Lincare Holdings Inc. LINN Energy, LLC Marsh and McLennan Companies, Inc. Maxim Integrated Products, Inc. Microsoft New York Community Bancorp Norfolk Southern Corp. Northern Trust Corporation Symbol ABT AFL ADI ADP BBT BP EAT CAH CTL CVX CB CME CPA CUBE DRI DLR ESV EPD ESS EVEP GBCI GRT HBHC HRS HBAN IBKC JCOM LEG LNCR LINE MMC MXIM MSFT NYB NSC NTRS Rating 2 2 1 1 1 1 1 2 1 1 2 2 2 2 2 1 2 1 1 1 1 2 1 1 1 1 2 2 2 1 1 2 2 1 1 2

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International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863

Global Research

Investment Strategy

Page Company 22 13 18 22 23 14 18 19 19 14 14 15 15 Pebblebrook Hotel Trust People`s United Financial Plains All American Pipeline L.P. Post Properties, Inc. Rayonier, Inc. Stanley Black & Decker Targa Resources Corp. Teekay LNG Partners L.P. Teekay Offshore Partners L.P. Umpqua Holdings Corp. United Parcel Service Valley National Bancorp Xilinx, Inc.

Symbol PEB PBCT PAA PPS RYN SWK TRGP TGP TOO UMPQ UPS VLY XLNX

Rating 2 1 2 1 2 1 2 1 1 2 2 2 2

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27

Investment Strategy

Global Research

Additional Company Citations Accenture Ltd. Bank of New York Mellon Corp BioMed Realty Trust Inc. CBL & Associates Properties, Inc. Cisco Systems Dell Inc. eBay Inc. EMC Corporation Equity Residential Extra Space Storage Google Inc. Health Care REIT, Inc. Hewlett-Packard Intel Corporation International Business Machines Corp. Kimco Realty Corporation LaSalle Hotel Properties Macerich Co. MasterCard, Inc. MSCI Inc. National Retail Properties, Inc. NuStar Energy L.P. Oracle Corp. Pennsylvania REIT Public Storage QUALCOMM Inc Realty Income Regency Centers Corp. Regions Financial Corporation Simon Property Group, Inc. State Street Corporation Strategic Hotels & Resorts Targa Resources Partners L.P. Teekay Corp. Texas Instruments Incorporated Visa, Inc.

Ticker ACN BK BMR CBL CSCO DELL EBAY EMC EQR EXR GOOG HCN HPQ INTC IBM KIM LHO MAC MA MSCI NNN NS ORCL PEI PSA QCOM O REG RF SPG STT BEE NGLS TK TXN V

Exchange NYSE NYSE NYSE NYSE NASDAQ NASDAQ NASDAQ NYSE NYSE NYSE NASDAQ NYSE NYSE NASDAQ NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NASDAQ NYSE NYSE NASDAQ NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NASDAQ NYSE

Currency Closing Price RJ Rating RJ Entity $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 63.52 23.70 19.01 18.63 20.38 17.02 37.62 29.13 59.50 27.40 646.05 53.65 23.03 27.90 205.49 19.17 28.42 55.43 416.84 37.01 26.76 59.94 28.63 15.24 135.50 66.29 37.96 44.23 6.44 142.77 45.01 6.47 42.73 32.85 33.43 117.28 NC 1 2 2 2 1 1 1 2 2 2 2 2 3 NC 2 2 NC 2 3 2 3 2 NC 2 NC 3 3 2 2 2 2 2 NC 2 1 RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates RJ & Associates

Notes: Prices are as of the most recent close on the indicated exchange and may not be in US$. See Disclosure section for rating definitions. Stocks that do not trade on a U.S. national exchange may not be approved for sale in all U.S. states. NC=not covered.

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Important Investor Disclosures


Raymond James & Associates (RJA) is a FINRA member firm and is responsible for the preparation and distribution of research created in the United States. Raymond James & Associates is located at The Raymond James Financial Center, 880 Carillon Parkway, St. Petersburg, FL 33716, (727) 567-1000. Non-U.S. affiliates, which are not FINRA member firms, include the following entities which are responsible for the creation and distribution of research in their respective areas; In Canada, Raymond James Ltd., Suite 2200, 925 West Georgia Street, Vancouver, BC V6C 3L2, (604) 659-8200; In Latin America, Raymond James Latin America, Ruta 8, km 17, 500, 91600 Montevideo, Uruguay, 00598 2 518 2033; In Europe, Raymond James European Equities, 40, rue La Boetie, 75008, Paris, France, +33 1 45 61 64 90. This document is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of or located in any locality, state, country, or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. The securities discussed in this document may not be eligible for sale in some jurisdictions. This research is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction where such an offer or solicitation would be illegal. It does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Investors should consider this report as only a single factor in making their investment decision. Investing in securities of issuers organized outside of the U.S., including ADRs, may entail certain risks. The securities of non-U.S. issuers may not be registered with, nor be subject to the reporting requirements of, the U.S. Securities and Exchange Commission. There may be limited information available on such securities. Investors who have received this report may be prohibited in certain states or other jurisdictions from purchasing the securities mentioned in this report. Please ask your Financial Advisor for additional details. The information provided is as of the date above and subject to change, and it should not be deemed a recommendation to buy or sell any security. Certain information has been obtained from third-party sources we consider reliable, but we do not guarantee that such information is accurate or complete. Persons within the Raymond James family of companies may have information that is not available to the contributors of the information contained in this publication. Raymond James, including affiliates and employees, may execute transactions in the securities listed in this publication that may not be consistent with the ratings appearing in this publication. Additional information is available on request.

Analyst Information
Registration of Non-U.S. Analysts: The analysts listed on the front of this report who are not employees of Raymond James & Associates, Inc., are not registered/qualified as research analysts under FINRA rules, are not associated persons of Raymond James & Associates, Inc., and are not subject to NASD Rule 2711 and NYSE Rule 472 restrictions on communications with covered companies, public companies, and trading securities held by a research analyst account. Analyst Holdings and Compensation: Equity analysts and their staffs at Raymond James are compensated based on a salary and bonus system. Several factors enter into the bonus determination including quality and performance of research product, the analyst's success in rating stocks versus an industry index, and support effectiveness to trading and the retail and institutional sales forces. Other factors may include but are not limited to: overall ratings from internal (other than investment banking) or external parties and the general productivity and revenue generated in covered stocks. The covering analyst and/or research associate owns shares of the common stock of Chevron Corp. and Leggett & Platt.

The views expressed in this report accurately reflect the personal views of the analyst(s) covering the subject securities. No part of said person's compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report. In addition, said analyst has not received compensation from any subject company in the last 12 months.

Ratings and Definitions


Raymond James & Associates (U.S.) definitions Strong Buy (SB1) Expected to appreciate, produce a total return of at least 15%, and outperform the S&P 500 over the next six to 12 months. For higher yielding and more conservative equities, such as REITs and certain MLPs, a total return of at least 15% is expected to be realized over the next 12 months. Outperform (MO2) Expected to appreciate and outperform the S&P 500 over the next 12-18 months. For higher yielding and more conservative equities, such as REITs and certain MLPs, an Outperform rating is used for securities where we are comfortable with the relative safety of the dividend and expect a total return modestly exceeding the dividend yield over the next 12-18 months. Market Perform (MP3) Expected to perform generally in line with the S&P 500 over the next 12 months.

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Underperform (MU4) Expected to underperform the S&P 500 or its sector over the next six to 12 months and should be sold. Suspended (S) The rating and price target have been suspended temporarily. This action may be due to market events that made coverage impracticable, or to comply with applicable regulations or firm policies in certain circumstances, including when Raymond James may be providing investment banking services to the company. The previous rating and price target are no longer in effect for this security and should not be relied upon. Raymond James Ltd. (Canada) definitions Strong Buy (SB1) The stock is expected to appreciate and produce a total return of at least 15% and outperform the S&P/TSX Composite Index over the next six months. Outperform (MO2) The stock is expected to appreciate and outperform the S&P/TSX Composite Index over the next twelve months. Market Perform (MP3) The stock is expected to perform generally in line with the S&P/TSX Composite Index over the next twelve months and is potentially a source of funds for more highly rated securities. Underperform (MU4) The stock is expected to underperform the S&P/TSX Composite Index or its sector over the next six to twelve months and should be sold. Raymond James Latin American rating definitions Strong Buy (SB1) Expected to appreciate and produce a total return of at least 25.0% over the next twelve months. Outperform (MO2) Expected to appreciate and produce a total return of between 15.0% and 25.0% over the next twelve months. Market Perform (MP3) Expected to perform in line with the underlying country index. Underperform (MU4) Expected to underperform the underlying country index. Suspended (S) The rating and price target have been suspended temporarily. This action may be due to market events that made coverage impracticable, or to comply with applicable regulations or firm policies in certain circumstances, including when Raymond James may be providing investment banking services to the company. The previous rating and price target are no longer in effect for this security and should not be relied upon. Raymond James European Equities rating definitions Strong Buy (1) Expected to appreciate, produce a total return of at least 15%, and outperform the Stoxx 600 over the next 6 to 12 months. Outperform (2) Expected to appreciate and outperform the Stoxx 600 over the next 12 months. Market Perform (3) Expected to perform generally in line with the Stoxx 600 over the next 12 months. Underperform (4) Expected to underperform the Stoxx 600 or its sector over the next 6 to 12 months. In transacting in any security, investors should be aware that other securities in the Raymond James research coverage universe might carry a higher or lower rating. Investors should feel free to contact their Financial Advisor to discuss the merits of other available investments. Rating Distributions Coverage Universe Rating Distribution RJA Strong Buy and Outperform (Buy) Market Perform (Hold) Underperform (Sell) Suitability Categories (SR) For stocks rated by Raymond James & Associates only, the following Suitability Categories provide an assessment of potential risk factors for investors. Suitability ratings are not assigned to stocks rated Underperform (Sell). Projected 12-month price targets are assigned only to stocks rated Strong Buy or Outperform. Total Return (TR) Lower risk equities possessing dividend yields above that of the S&P 500 and greater stability of principal. Growth (G) Low to average risk equities with sound financials, more consistent earnings growth, possibly a small dividend, and the potential for long-term price appreciation. Aggressive Growth (AG) Medium or higher risk equities of companies in fast growing and competitive industries, with less predictable earnings and acceptable, but possibly more leveraged balance sheets. High Risk (HR) Companies with less predictable earnings (or losses), rapidly changing market dynamics, financial and competitive issues, higher price volatility (beta), and risk of principal. 56% 37% 6% RJL 67% 32% 1% RJ LatAm 38% 53% 9% Investment Banking Distribution RJA 15% 6% 3% RJL 42% 30% 0% RJ LatAm 13% 2% 0%

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Venture Risk (VR) Companies with a short or unprofitable operating history, limited or less predictable revenues, very high risk associated with success, and a substantial risk of principal.

Raymond James Relationship Disclosures


Raymond James expects to receive or intends to seek compensation for investment banking services from the subject companies in the next three months. Company Name Aflac, Inc. Automatic Data Processing Bank of New York Mellon Corp BB&T Corporation Disclosure Raymond James & Associates received non-investment banking securities-related compensation from AFL within the past 12 months. Raymond James & Associates makes a market in shares of ADP.Raymond James & Associates received non-investment banking securities-related compensation from ADP within the past 12 months. Raymond James & Associates received non-investment banking securities-related compensation from BK within the past 12 months. Howe Barnes Hoefer & Arnett, Inc. (a wholly owned subsidiary of Raymond James Financial) received non-investment banking securities-related compensation from BBT within the past 12 months.Raymond James & Associates received non-investment banking securities-related compensation from BBT within the past 12 months. Raymond James & Associates co-managed a public offering of debt for BioMed Realty Trust Inc. in March 2011.Raymond James & Associates received non-investment banking securitiesrelated compensation from BMR within the past 12 months.Raymond James & Associates received non-securities-related compensation from BMR within the past 12 months. Raymond James & Associates received non-investment banking securities-related compensation from EAT within the past 12 months. Raymond James & Associates received non-securities-related compensation from CBL within the past 12 months. Raymond James & Associates co-managed a public offering of debt for Qwest Corporation, a subsidiary of CenturyLink, in March 2012. Raymond James & Associates received non-investment banking securities-related compensation from CB within the past 12 months. Raymond James & Associates makes a market in shares of CSCO.Raymond James & Associates received non-investment banking securities-related compensation from CSCO within the past 12 months. Raymond James & Associates makes a market in shares of CME. Raymond James & Associates co-managed a follow-on offering of CUBE shares in October 2011.Raymond James & Associates co-managed an offering of preferred equity for CubeSmart in October 2011. Raymond James & Associates makes a market in shares of DELL. Raymond James & Associates co-managed an offering of preferred equity for Digital Realty Trust, Inc. in September 2011.Raymond James & Associates received non-securities-related compensation from DLR within the past 12 months. Raymond James & Associates makes a market in shares of EBAY. Limited Partnerships may generate Unrelated Business Taxable Income (UBTI), which can create a tax liability that must be paid from a retirement account. You should receive a Schedule K-1 from the partnership annually that would include UBTI and other financial information. Please consult with your tax advisor to determine whether you must file and pay tax from your account.Raymond James & Associates co-managed a follow-on offering of EPD shares in December 2011.Raymond James & Associates received non-securities-related compensation from EPD within the past 12 months. Raymond James & Associates lead-managed an offering of preferred shares for Essex Property Trust, Inc. in April 2011.

BioMed Realty Trust Inc.

Brinker International CBL & Associates Properties, Inc. CenturyLink Chubb Corporation Cisco Systems

CME Group Inc. CubeSmart

Dell Inc. Digital Realty Trust, Inc. eBay Inc. Enterprise Products Partners L.P.

Essex Property Trust, Inc.

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Company Name EV Energy Partners L.P.

Disclosure Limited Partnerships may generate Unrelated Business Taxable Income (UBTI), which can create a tax liability that must be paid from a retirement account. You should receive a Schedule K-1 from the partnership annually that would include UBTI and other financial information. Please consult with your tax advisor to determine whether you must file and pay tax from your account.Raymond James & Associates lead-managed a follow-on offering of EVEP shares in March 2011 and co-managed a follow-on offering of EVEP shares in February 2012.Raymond James & Associates makes a market in shares of EVEP.Raymond James & Associates received non-investment banking securities-related compensation from EVEP within the past 12 months. Raymond James & Associates makes a market in shares of GBCI.Glacier Bancorp, Inc. has a joint marketing agreement with Raymond James Financial Services, a subsidiary of Raymond James Financial, Inc. Raymond James & Associates co-managed a follow-on offering of GRT shares in March 2012. Raymond James & Associates makes a market in shares of GOOG. Raymond James & Associates co-managed a follow-on offering of HBHC shares in March 2011.Raymond James & Associates makes a market in shares of HBHC. Raymond James & Associates received non-investment banking securities-related compensation from HRS within the past 12 months. Raymond James & Associates co-managed follow-on offerings of HCN shares in March 2011, November 2011, and February 2012.Raymond James & Associates received non-securitiesrelated compensation from HCN within the past 12 months. Raymond James & Associates received non-investment banking securities-related compensation from HPQ within the past 12 months. Raymond James & Associates makes a market in shares of HBAN. Howe Barnes Hoefer & Arnett, Inc. (a wholly owned subsidiary of Raymond James Financial) has managed or co-managed a public offering of securities within the last 12 months with respect to IBERIABANK Corporation.Howe Barnes Hoefer & Arnett, Inc. (a wholly owned subsidiary of Raymond James Financial) has received compensation for investment banking services within the last 12 months with respect to IBERIABANK Corporation.Raymond James & Associates makes a market in shares of IBKC.Raymond James & Associates received noninvestment banking securities-related compensation from IBKC within the past 12 months.IBERIABANK Corporation has a joint marketing agreement with Raymond James Financial Services, a subsidiary of Raymond James Financial, Inc. Raymond James & Associates makes a market in shares of INTC. Raymond James & Associates makes a market in shares of JCOM.Raymond James & Associates received non-investment banking securities-related compensation from JCOM within the past 12 months. Raymond James & Associates co-managed an offering of preferred equity for Kimco Realty Corporation in March 2012. Raymond James & Associates managed a follow-on offering of LHO shares in April 2011.Raymond James & Associates received non-investment banking securities-related compensation from LHO within the past 12 months.Raymond James & Associates received non-securities-related compensation from LHO within the past 12 months. Raymond James & Associates received non-investment banking securities-related compensation from LEG within the past 12 months. Raymond James & Associates makes a market in shares of LNCR. Raymond James & Associates co-managed a follow-on offering of LINE shares in March 2011 and lead-managed a follow-on offering of LINE shares in January 2012.Raymond James & Associates makes a market in shares of LINE. Raymond James & Associates received non-investment banking securities-related compensation from MMC within the past 12 months.

Glacier Bancorp, Inc.

Glimcher Realty Trust Google Inc. Hancock Holding Company Harris Corporation Health Care REIT, Inc.

Hewlett-Packard Huntington Bancshares Inc. IBERIABANK Corporation

Intel Corporation j2 Global, Inc.

Kimco Realty Corporation LaSalle Hotel Properties

Leggett & Platt Lincare Holdings Inc. LINN Energy, LLC

Marsh and McLennan Companies, Inc.

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Global Research
Company Name Maxim Integrated Products, Inc. Microsoft Disclosure Raymond James & Associates makes a market in shares of MXIM.

Investment Strategy

Raymond James & Associates makes a market in shares of MSFT.Raymond James & Associates received non-investment banking securities-related compensation from MSFT within the past 12 months. Raymond James & Associates received non-securities-related compensation from MSCI within the past 12 months. Raymond James & Associates co-managed a public offering of debt for National Retail Properties, Inc. in July 2011 and an offering of preferred shares for National Retail Properties, Inc. in February 2012.Raymond James & Associates co-managed follow-on offerings of NNN shares in September 2011 and November 2011.Raymond James & Associates received nonsecurities-related compensation from NNN within the past 12 months. Raymond James & Associates received non-investment banking securities-related compensation from NYB within the past 12 months. Raymond James & Associates received non-investment banking securities-related compensation from NSC within the past 12 months. Raymond James & Associates makes a market in shares of NTRS.Raymond James & Associates received non-investment banking securities-related compensation from NTRS within the past 12 months. Limited Partnerships may generate Unrelated Business Taxable Income (UBTI), which can create a tax liability that must be paid from a retirement account. You should receive a Schedule K-1 from the partnership annually that would include UBTI and other financial information. Please consult with your tax advisor to determine whether you must file and pay tax from your account.Raymond James & Associates co-managed a follow-on offering of NS shares in December 2011. Raymond James & Associates makes a market in shares of ORCL. Raymond James & Associates lead-managed a follow-on offering of PEB shares in April 2011.Raymond James & Associates lead-managed offerings of preferred shares for Pebblebrook Hotel Trust in March 2011 and September 2011.Raymond James & Associates received non-securities-related compensation from PEB within the past 12 months. Raymond James & Associates makes a market in shares of PBCT. Limited Partnerships may generate Unrelated Business Taxable Income (UBTI), which can create a tax liability that must be paid from a retirement account. You should receive a Schedule K-1 from the partnership annually that would include UBTI and other financial information. Please consult with your tax advisor to determine whether you must file and pay tax from your account.Raymond James & Associates co-managed follow-on offerings of PAA shares in March 2011, August 2011, and March 2012, and lead-managed a follow-on offering of PAA shares November 2011.Raymond James & Associates received non-securities-related compensation from PAA within the past 12 months. Raymond James & Associates co-managed offerings of preferred shares for Public Storage in April 2011, July 2011, and March 2012. Raymond James & Associates makes a market in shares of QCOM. Raymond James & Associates co-managed a public offering of debt for Realty Income in June 2011 and lead-managed an offering of preferred equity for Realty Income in January 2012.Raymond James & Associates lead-managed follow-on offerings of O shares in March 2011 and September 2011.Raymond James & Associates received non-securities-related compensation from O within the past 12 months. Raymond James & Associates co-managed a follow-on offering of RF shares in March 2012.Raymond James Financial, our parent company, has executed an agreement to purchase Morgan Keegan, a subsidiary of Regions Financial. Raymond James & Associates received non-investment banking securities-related compensation from SPG within the past 12 months.

MSCI Inc. National Retail Properties, Inc.

New York Community Bancorp Norfolk Southern Corp. Northern Trust Corporation NuStar Energy L.P.

Oracle Corp. Pebblebrook Hotel Trust

People`s United Financial Plains All American Pipeline L.P.

Public Storage QUALCOMM Inc Realty Income

Regions Financial Corporation Simon Property Group, Inc.

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Company Name Strategic Hotels & Resorts Targa Resources Corp. Targa Resources Partners L.P.

Disclosure Raymond James & Associates received non-securities-related compensation from BEE within the past 12 months. Raymond James & Associates co-managed a follow-on offering of TRGP shares in April 2011. Limited Partnerships may generate Unrelated Business Taxable Income (UBTI), which can create a tax liability that must be paid from a retirement account. You should receive a Schedule K-1 from the partnership annually that would include UBTI and other financial information. Please consult with your tax advisor to determine whether you must file and pay tax from your account.Raymond James & Associates lead-managed a follow-on offering of NGLS shares in January 2012.Raymond James & Associates received non-securities-related compensation from NGLS within the past 12 months. Limited Partnerships may generate Unrelated Business Taxable Income (UBTI), which can create a tax liability that must be paid from a retirement account. You should receive a Schedule K-1 from the partnership annually that would include UBTI and other financial information. Please consult with your tax advisor to determine whether you must file and pay tax from your account.Raymond James & Associates co-managed a follow-on offering of TGP shares in April 2011. Limited Partnerships may generate Unrelated Business Taxable Income (UBTI), which can create a tax liability that must be paid from a retirement account. You should receive a Schedule K-1 from the partnership annually that would include UBTI and other financial information. Please consult with your tax advisor to determine whether you must file and pay tax from your account. Raymond James & Associates makes a market in shares of UMPQ. Valley National Bancorp has a joint marketing agreement with Raymond James Financial Services, a subsidiary of Raymond James Financial, Inc. Raymond James & Associates makes a market in shares of XLNX.

Teekay LNG Partners L.P.

Teekay Offshore Partners L.P.

Umpqua Holdings Corp. Valley National Bancorp Xilinx, Inc.

Stock Charts, Target Prices, and Valuation Methodologies


Valuation Methodology: The Raymond James methodology for assigning ratings and target prices includes a number of qualitative and quantitative factors including an assessment of industry size, structure, business trends and overall attractiveness; management effectiveness; competition; visibility; financial condition, and expected total return, among other factors. These factors are subject to change depending on overall economic conditions or industry- or company-specific occurrences. Only stocks rated Strong Buy (SB1) or Outperform (MO2) have target prices and thus valuation methodologies.

Risk Factors
General Risk Factors: Following are some general risk factors that pertain to the projected target prices included on Raymond James research: (1) Industry fundamentals with respect to customer demand or product / service pricing could change and adversely impact expected revenues and earnings; (2) Issues relating to major competitors or market shares or new product expectations could change investor attitudes toward the sector or this stock; (3) Unforeseen developments with respect to the management, financial condition or accounting policies or practices could alter the prospective valuation; or (4) External factors that affect the U.S. economy, interest rates, the U.S. dollar or major segments of the economy could alter investor confidence and investment prospects. International investments involve additional risks such as currency fluctuations, differing financial accounting standards, and possible political and economic instability.

Additional Risk and Disclosure information, as well as more information on the Raymond James rating system and suitability categories, is available at rjcapitalmarkets.com/SearchForDisclosures_main.asp. Copies of research or Raymond James summary policies relating to research analyst independence can be obtained by contacting any Raymond James & Associates or Raymond James Financial Services office (please see raymondjames.com for office locations) or by calling 727-567-1000,

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toll free 800-237-5643 or sending a written request to the Equity Research Library, Raymond James & Associates, Inc., Tower 3, 6th Floor, 880 Carillon Parkway, St. Petersburg, FL 33716. International securities involve additional risks such as currency fluctuations, differing financial accounting standards, and possible political and economic instability. These risks are greater in emerging markets. Small-cap stocks generally involve greater risks. Dividends are not guaranteed and will fluctuate. Past performance may not be indicative of future results. Investors should consider the investment objectives, risks, and charges and expenses of mutual funds carefully before investing. The prospectus contains this and other information about mutual funds. The prospectus is available from your financial advisor and should be read carefully before investing. For clients in the United Kingdom: For clients of Raymond James & Associates (RJA) and Raymond James Financial International, Ltd. (RJFI): This report is for distribution only to persons who fall within Articles 19 or Article 49(2) of the Financial Services and Markets Act (Financial Promotion) Order 2000 as investment professionals and may not be distributed to, or relied upon, by any other person. For clients of Raymond James Investment Services, Ltd.: This report is intended only for clients in receipt of Raymond James Investment Services, Ltd.s Terms of Business or others to whom it may be lawfully submitted. For purposes of the Financial Services Authority requirements, this research report is classified as objective with respect to conflict of interest management. RJA, Raymond James Financial International, Ltd., and Raymond James Investment Services, Ltd. are authorized and regulated in the U.K. by the Financial Services Authority. For institutional clients in the European Economic Area (EEA) outside of the United Kingdom: This document (and any attachments or exhibits hereto) is intended only for EEA institutional clients or others to whom it may lawfully be submitted. For Canadian clients: Review of Material Operations: The Analyst and/or Associate is required to conduct due diligence on, and where deemed appropriate visit, the material operations of a subject company before initiating research coverage. The scope of the review may vary depending on the complexity of the subject companys business operations. This report is not prepared subject to Canadian disclosure requirements. For Latin American clients: Registration of Brazil-based Analysts: In accordance with Regulation #483 issued by the Brazil Securities and Exchange Commission (CVM) in October 2010, all lead Brazil-based Research Analysts writing and distributing research are CNPI certified as required by Art. 1 of APIMECs Code of Conduct (www.apimec.com.br/supervisao/codigodeconduta). They abide by the practices and procedures of this regulation as well as internal procedures in place at Raymond James Brasil S.A. A list of research analysts accredited with the APIMEC can be found on the webpage (www.apimec.com.br/ certificacao/Profissionais Certificados). Non-Brazil-based analysts writing Brazil research and or making sales efforts with the same are released from these APIMEC requirements as stated in Art. 20 of CVM Instruction #483, but abide by recognized Codes of Conduct, Ethics and Practices that comply with Articles 17, 18, and 19 of CVM Instruction #483. Proprietary Rights Notice: By accepting a copy of this report, you acknowledge and agree as follows: This report is provided to clients of Raymond James only for your personal, noncommercial use. Except as expressly authorized by Raymond James, you may not copy, reproduce, transmit, sell, display, distribute, publish, broadcast, circulate, modify, disseminate or commercially exploit the information contained in this report, in printed, electronic or any other form, in any manner, without the prior express written consent of Raymond James. You also agree not to use the information provided in this report for any unlawful purpose.
This is RJA client releasable research

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The Raymond James Research Liaison Office


Harry G. Katica, CFA, Vice President, Director of Private Client Research Suzi Fiorini Justin Jenkins Roopal Mehta John Messina Michelle Pav Patrick Sauve

2012 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. All rights reserved.

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International Headquarters: The Raymond James Financial Center | 880 Carillon Parkway | St. Petersburg, Florida 33716 | 800-248-8863