San Joaquin County Employees Retirement Association€¦ · Banez OTHERS PRESENT: ... Suite 400 •...

San Joaquin County EmployeesRetirement Association

A G E N D AREAL ESTATE COMMITTEE QUARTERLY MEETING

SAN JOAQUIN COUNTY EMPLOYEES RETIREMENT ASSOCIATIONBOARD OF RETIREMENT

FRIDAY, NOVEMBER 3, 2017AT 8:00 AM

Location: SJCERA Conference Room6 S. El Dorado Street, Suite 400

Stockton, California

1.0 ROLL CALL2.0 APPROVAL OF MINUTES

2.01 Approval of the Minutes for the Real Estate Committee meeting of August 16,2017

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2.02 Committee to approve minutes3.0 QUARTERLY REPORT FROM THE REAL ESTATE CONSULTANT FOR THE

PERIOD ENDED JUNE 30, 20174

3.01 Real Estate Quarterly Performance Measurement Report - Executive Summary 53.02 Real Estate Quarterly Performance Measurement Report - Investment Summary 223.03 Courtland Partners will present the quarterly report on SJCERA’s real estate

investments and highlights of the market conditions3.04 Committee to review and give direction to staff and consultant as necessary

4.0 REAL ESTATE INVESTMENT OPPORTUNITIES (VALUE-ADDED) 734.01 Almanac Realty Securities Fund VIII Presentation 74

01 Presentation by Matt Kaplan, Managing Partner, and Josh Overbay, ManagingDirector

4.02 Stockbridge Value Fund III Presentation 10601 Presentation by Sol Raso, Executive Managing Director, and Doug Sturiale,

Managing Director4.03 Courtland Partners Evaluation of Proposed Investments

01 Almanac Realty Securities VIII 14802 Stockbridge Value Fund III 164

4.04 Committee to consider investment opportunity and give direction to staff andconsultant as appropriate

5.0 REPORTS ON MANAGER ANNUAL MEETINGS5.01 Courtland Partners update on meetings with real estate managers 1825.02 Courtland Partners memo on annual meeting with Prologis 183

6.0 COMMENTS7.0 ADJOURNMENT

6 South El Dorado Street, Suite 400 • Stockton, CA 95202(209) 468-2163 • (209) 468-0480 • www.sjcera.org

SJCERA Real Estate Committee Quarterly Meeting • 11/3/2017 •

M I N U T E SREAL ESTATE COMMITTEE QUARTERLY MEETING

SAN JOAQUIN COUNTY EMPLOYEES RETIREMENT ASSOCIATIONBOARD OF RETIREMENT

WEDNESDAY, AUGUST 16, 2017AT 8:03 AM

Location: SJCERA Conference Room6 S. El Dorado Street, Suite 400 Stockton, California

San Joaquin County EmployeesRetirement Association

1.0 ROLL CALL1.01 MEMBERS PRESENT: J.C. Weydert, Margo Praus, and Raymond McCray presiding

MEMBERS ABSENT: Michael RestucciaSTAFF PRESENT: Chief Executive Officer Johanna Shick, Chief Investment OfficerNancy Calkins, Management Analyst III Greg Frank, and Senior Office Assistant RonBanezOTHERS PRESENT: Deputy County Counsel Jason Morrish, Michael Murphy andJacqueline Smith of Courtland Partners, and David Sancewich of PCA

2.0 APPROVAL OF MINUTES2.01 Approval of the Minutes for the Real Estate Committee meeting of June 9, 20172.02 The Committee unanimously approved the Minutes of the Real Estate

Committee Meeting of June 09, 2017.3.0 QUARTERLY REPORT FROM THE REAL ESTATE CONSULTANT FOR THE PERIOD

ENDED MARCH 31, 20173.01 Real Estate Quarterly Performance Measurement Report - Executive Summary3.02 Real Estate Quarterly Performance Measurement Report - Investment Summary3.03 Courtland Partners presented the quarterly report on SJCERA’s real estate

investments and highlights of the market conditions. For the period ended 3/31/2017,the real estate portfolio market value was $312 million, which equates to 12.0% oftotal plan assets. The Private portion of the real estate portfolio had a net-of-feesreturn for the quarter of 1.8% while the one-year return was 7.7%. The benchmarkreturned 1.8% for the quarter, while the one-year return was 8.4%. The Invesco USRES portfolio had a gross return of 2.7% and 4.8% for the quarter and one-yearperiod, respectively while the benchmark returned 2.6% and 5.3% over the same timeperiods. The Blackrock Developed Ex-US REIF portfolio had a gross return of 4.9%and 1.5% for the quarter and one-year period, respectively while the benchmarkreturned 4.9% and 1.7% over the same time periods. The entire real estate portfoliohad a net-of-fees return of 2.1% for the quarter and 6.8% for the trailing one yearperiod while the portfolio blended benchmark returned 2.2% and 7.3%, respectively.

For the period ended 6/30/2017, the US Public Real Estate portfolio return was 2.3%for the quarter and 1.2% for the one-year period compared to the NAREIT index of2.3% and 0.2% respectively. For the non-US Public Real Estate portfolio, the quarter-ended 6/30/2017 return was 4.8%, while the one-year return was 5.8%. Incomparison, the EPRA/NAREIT Developed Ex. U.S. Index was 4.7% and 5.3%respectively.

3.04 Committee accepted and filed the reports.4.0 REAL ESTATE INVESTMENT CONSULTANT RFP #2017-02

6 South El Dorado Street, Suite 400 • Stockton, CA 95202(209) 468-2163 • (209) 468-0480 • www.sjcera.org

SJCERA Real Estate Committee Quarterly Meeting • 8/16/2017 • Page 1

4.01 Proposed RFP for Real Estate Investment Consultant4.02 Committee unanimously approved the Real Estate Investment Consultant RFP

and authorized staff to disseminate the RFP to potential proposers inNovember as established in the RFP timeline.

5.0 ANALYSIS OF SJCERA’S REAL ESTATE MANAGERS’ FEES5.01 Courtland Partners memo on Real Estate Managers’ Fees5.02 Committee reviewed and accepted the report.

6.0 REPORTS ON MANAGER ANNUAL MEETINGS6.01 Courtland Partners memo on annual meeting with Colony Realty Partners6.02 Courtland Partners memo on annual meeting with Walton Street

7.0 COMMENTS - NONE8.0 ADJOURNMENT

8.01 There being no further business, the meeting was adjourned at 9:11 a.m.

Respectfully submitted:

________________________________Michael Restuccia, ChairReal Estate Committee

SJCERA Real Estate Committee Quarterly Meeting • 8/16/2017 • Page 2

MEMORANDUM

1

To: San Joaquin County Employees’ Retirement Association (“SJCERA”) Real Estate Committee (the “Committee”)

From: Courtland Partners, Ltd. ("Courtland") Date: October 20, 2017 Subject: Second Quarter 2017 Performance Report Key Takeaways

Due to the full agenda at the November Committee meeting, Courtland has prepared the following summary of the key takeaways from the second quarter 2017 real estate performance report.

There are currently $60 million of unfunded commitments with approximately $49 million likely to be called. GAP VIII expects to call $5 million of SJCERA’s $30 million commitment during the fourth quarter. In addition, there remain commitments of $12 million to AG Core Plus IV and $6.5 million to GAP VII still to be invested.

The current real estate allocation is 11.5% of the total portfolio.

The second quarter 2017 and the one-year returns exceeded their benchmarks. Both private real estate and U.S. public real estate securities performed relatively well during these periods.

Returns in general have continued to revert towards long-term averages for the asset class. A solid income return is especially important in today’s pricing environment. SJCERA’s one-year income return was above 5%.

There were nearly $10 million of distributions made by the GAP VI, GAP VII, Miller Global VII, and Walton Street V funds during the quarter. There were also approximately $3 million of distributions made during the third quarter, including the final distribution from Legacy III.

RREEF III and Sarofim have no remaining assets and expect to be dissolved this year.

The ProLogis USLF, which is the largest investment in the portfolio, continues to perform well and was up 3.4% for the quarter. Industrial continues to be a very strong sector.

Almanac VI was up 12.6% for the year with an income return of 7%. This fund continues to trend towards a net 14%, which is above its original underwriting.

GAP VII was up 7% for the quarter due to strong valuations during its latest valuation period.

MG VII was up 6% for the quarter as it generated some nice gains from an asset disposition.

MG V and MG VI are both generating solid cash flows while their hotel investment remains on the market. The manager remains hopeful that an exit will be achieved by first quarter 2018.

Hurricanes hit the U.S. recently. Based upon the information provided by SJCERA’s managers, there has been little impact to its properties with two exceptions. There is an asset in AG Core Plus IV in Florida which suffered major damage. In addition, the storms are expected to have a negative impact on the operating performance of the hotel investment held in MG V and MG VI. However, that property did not sustain any damage.

We will be happy to address any questions regarding the 2nd quarter performance report during the meeting.

COURTLAND PARTNERS, LTD.

CLEVELAND, OH 44114

SAN JOAQUIN COUNTY EMPLOYEES' RETIREMENT ASSOCIATION

REAL ESTATE PORTFOLIO

PERFORMANCE MEASUREMENT REPORT

EXECUTIVE SUMMARY

Second Quarter 2017


127 PUBLIC SQUARE, SUITE 5050

216-522-0330

10866 WILSHIRE BLVD., SUITE 830LOS ANGELES, CA 90024

310-474-3040

____________________________________________________________________________________________________COURTLAND PARTNERS, LTD.

San Joaquin County Employees' Retirement Association Second Quarter 2017

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14Performance Attribution.......................................................................................................................................................................

Executive Summary................................................................................................................................................................................

Table of Contents

Summary of Portfolio Investment Net Returns................................................................................................................................

Total Returns vs. Benchmarks..............................................................................................................................................................

Gross Returns vs. Benchmarks............................................................................................................................................................

Risk/Return Review...............................................................................................................................................................................

Portfolio Property Type Diversification.............................................................................................................................................

Total Portfolio Investment Activity Statement.................................................................................................................................

Portfolio Geographic Diversification..................................................................................................................................................

Investment Structure Diversification..................................................................................................................................................

Portfolio Partner/Manager Concentration........................................................................................................................................

Investment Leverage Review................................................................................................................................................................

Investment Activity Statement Since Inception by Fund................................................................................................................

____________________________________________________________________________________________________COURTLAND PARTNERS, LTD.


Current Portfolio Market Value:

Current Portfolio, % of Total Plan Assets:

Current Unfunded Investment Commitments:

Current Market Value + Unfunded Investment Commitments:

Current Capital Available for Investment:

Target Allocation to Real Estate:

Target Real Estate, % of Total Plan Assets:

Net Capital Invested:

Portfolio Inception Date:

Total Number of Current Investments:

Income

Appreciation

Total Gross Return

Total Net Return

Total Portfolio Internal Rate of Return:

209,372,017$

EXECUTIVE SUMMARY

San Joaquin County Employees' Retirement AssociationPORTFOLIO SUMMARY(for period ended June 30, 2017)

308,808,696$

11.5%

60,044,326$

368,853,022$

-$

267,761,580$

10.0%

August 2004

21

SUMMARY OF PORTFOLIO RETURNS(for period ended June 30, 2017)

Quarter YTD 1-Year 2-Year 3-Year 5-Year 10-Year Incept.

1.5% 2.8% 5.3% 4.9% 4.8% 4.6% 3.4% 3.3%

-2.0% 2.8%

13.4% 1.4% 6.2%

1.6% 2.8% 4.2% 5.0% 5.5% 8.5%

3.1% 5.6% 9.7% 10.0% 10.5%

-0.9% 4.0%

$ 308,808,696 4.0%

2.7% 4.8% 7.8% 8.1% 8.5% 11.1%

COURTLAND PARTNERS, LTD. PAGE 1


Vintage % of IRR **Investments Year Portfolio QuartilePrincipal US Property 2015 * N/APrologis Targeted US Logistics 2007 * N/ARREEF America REIT II 2016 * N/ARREEF America REIT III 2004 * N/AOpen-endedAG CPRF IV 2015 3Almanac VI 2012 2Colony Realty Partners III 2008 3Colony Realty Partners IV 2012 2Greenfield Acquisition V 2007 1Greenfield Acquisition VI 2011 3Greenfield Acquisition VII 2013 2Legacy Partners Realty II 2006 4Legacy Partners Realty III 2007 3Miller Global V 2004 2Miller Global VI 2007 2Miller Global VII 2012 1Sarofim Multifamily II 2008 4Walton Street RE V 2005 2Walton Street RE VI 2009 4ClosedTotal Private Real EstateBlackRock Developed Ex-US REIF 2014 N/AInvesco US RES 2004 N/AREITTotal Portfolio

CoreValueOpportunistic* The first year of SJCERA investing in the open-ended fund.** ITD IRR ranking based on prior-quarter Courtland Partners Index by vintage year.

SUMMARY OF PORTFOLIO INVESTMENT NET RETURNS(for period ended June 30, 2017)

Total Net Returns Equity ITD Target5-Yr. Incept. Multiple IRR ReturnMarket Value Strategy Quarter YTD 1-Yr. 3-Yr.

$47,073,170 15.2% Core 3.4% 7.5% 16.6% 15.5% 15.2% 3.2%N/A N/A 9.0% 1.15 10.6% N/A$28,644,757 9.3% Core 2.1% 4.0% 8.8%

1.28 3.2%

-3.3% -4.0% -16.4% -2.6% 6.5% N/M

9.0%$47,182,833 15.3% Core 1.5% 2.8% 7.1% N/A N/A N/M 1.08 9.5% 2.0%

7.3% N/A N/A 1.4%

0.79 -3.2% 12.0%$123,134,015 39.9% 2.3% 4.8% 10.8% 12.8% 14.4% 4.3% 1.09 1.9%

$233,255 0.1% Value

6.2% -13.0%

1.07 5.4% 11.0%$12,369,720 4.0% Value 1.3% 2.8% 12.6% 15.0% N/A 16.1% 1.41 16.9% 12.0%$8,293,414 2.7% Value 4.8% 5.4%

1.45 7.8% 13.0%$22,731,095 7.4% Value 1.9% 4.3% 10.3% 15.5% N/A 16.6% 1.48 17.0% 9.0%$15,544,336 5.0% Value 1.2% 1.4% 2.2% 4.3%

1.37 8.5% 15.0%$5,840,185 1.9% Opp 2.9% 2.9% 8.6%

$873,424 0.3% Opp -9.4% -7.8% -1.9% -3.7% 2.7% -0.7%

$17,553,046 5.7% Opp 7.0% 7.6% 14.2% 12.3% N/A 12.3%

N/M 0.57

1.35 15.6% 13.0%8.5% 11.8% 11.1% 1.39 13.1% 15.0%

-9.8% 12.0%8.5% -5.6%

0.03 -33.0% 13.0%$221,261 0.1% Value 2.6% 0.5% -2.7%

$1,000 0.0% Value N/M N/M N/M N/M N/M N/M-10.7% N/M

1.15 4.2% 16.0%$16,394,895 5.3% Opp 3.5% 6.2% 10.9% 10.3% 9.8% 2.1% 1.49 7.7% 16.0%$5,143,584 1.7% Opp -1.8% -0.9% -7.0% 6.2%

$194,680 0.1% Value -3.5% 6.4% 2.9% 0.6% 3.2% 3.5% 1.27 4.7% 16.0%$3,709,714 1.2% Opp 6.1% 7.9% 11.8% 13.8% N/A 15.3%

0.5% 0.9% -0.2% 6.0% 8.3% -0.9%

1.25 16.8% 13.0%

7.6% 8.1% 11.2% -4.8%

0.81 -2.5% 18.0%$6,764,896 2.2% Opp 1.9% 3.2% -2.4% 4.2% 8.4% -31.3% 1.50 9.3% 18.0%$8,511,048 2.8% Opp

N/A 1.0%

1.18 4.1%$247,280,313 80.1% 2.5% 4.3% 9.0% 9.5% 12.1% 1.3% 1.15 3.4%$124,146,298 40.2% 2.7% 3.9%

1.03 1.1% N/A$35,616,245 11.5% Core 2.2% 4.8% 0.7% 8.1% 9.1% 9.5% 2.21 11.0% 9.0%$25,912,137 8.4% Value 4.8% 9.9% 5.6% 1.0%

1.35 6.2%$308,808,696 100.0% 2.7% 4.8% 7.8% 8.5% 11.1% 4.0% 1.19 4.0%

$61,528,383 19.9% 3.3% 6.9% 2.7% 5.2% 7.6% 6.7%

$158,517,005 51.3% 2.3% 4.8%$85,500,898 27.7% 2.8% 5.2% 7.6% 5.6% 11.1% -0.4%

8.5% 11.2% 11.7% 8.0% 1.36 7.0%

10.5% -2.3% 1.26 5.3%1.02 1.0%

$64,790,793 21.0% 3.3% 4.4% 6.7% 8.7%



Private Real Estate (Net):CoreValueOpportunisticTotal Private Real EstateNCREIF ODCE Index (net) + 100 bps (1)Over (Under) Performance

US Public RE Securities (Gross):Invesco US RESFTSE NAREIT All Equity REIT IndexOver (Under) Performance

Non-US Public RE Securities (Gross):BlackRock Developed Ex-US REIFEPRA/NAREIT Developed Ex. U.S. Index (2)Over (Under) Performance

Total Portfolio (Net)Portfolio Blended Benchmark (3)Over (Under) Performance

(2) EPRA/NAREIT Developed Ex. U.S. Index starting 10/1/12. Previously GPR General Global Index.

TOTAL RETURNS vs. BENCHMARKS - INVESTMENT TYPE(for period ended June 30, 2017)

Quarter YTD 1-Yr. 2-Yr. 3-Yr. 5-Yr. Incept.

2.6%1.9% 3.4% 8.3% 6.1% 7.2% 13.0% -3.3%2.4% 4.8% 11.0% 11.6% 13.1% 13.8%

-2.3%2.5% 4.3% 9.0% 8.3% 9.5% 12.1% 1.3%3.3% 4.4% 6.7% 6.9% 8.7% 10.5%

9.4%0.8% 0.8% 1.1% -1.6% -1.9% 0.4% -8.1%1.7% 3.5% 8.0% 9.9% 11.4% 11.7%

10.0%2.3% 4.9% 0.2% 11.3% 8.9% 10.0% 9.5%2.3% 5.1% 1.2% 10.7% 8.6% 9.6%

0.6%

4.8% 10.0% 5.8% 3.4% 1.1% N/A 1.1%

0.1% 0.2% 1.0% -0.6% -0.2% -0.3%

1.4%-0.2% -0.1% -0.2% -0.2% -0.3% N/A -0.3%5.0% 10.1% 6.0% 3.7% 1.4% N/A

4.0%2.1% 4.4% 6.6% 9.6% 10.1% 11.1% 11.4%2.7% 4.8% 7.8% 8.1% 8.5% 11.1%

For the period ended 9/30/2017, the US Public Real Estate portfolio return was 0.9% for the quarter and 2.4% for the one-year periodcompared to the NAREIT index of 1.1% and 2.6% respectively. For the non-US Public Real Estate portfolio, the quarter-ended 9/30/2017return was 3.2%, while the one-year return was 4.7%. In comparison, the EPRA/NAREIT Developed Ex. U.S. Net Index (USD) Index was3.0% and 4.2% respectively.

-7.4%

(1) NCREIF ODCE Index (net) + 100 bps starting 10/1/12. Previously NCREIF Index.

(3) Comprised of approximate portfolio weightings and indexes as per above.

COMMENTS ON TOTAL RETURNS

For the period ended 6/30/2017, the real estate portfolio market value was $309 million, which equates to 11.5% of total plan assets. ThePrivate portion of the real estate portfolio had a net-of-fees return for the quarter of 2.5% while the one-year return was 9.0%. Thebenchmark returned 1.7% for the quarter, while the one-year return was 8.0%. The Invesco US RES portfolio had a gross return of 2.3% and1.2% for the quarter and one-year period, respectively while the benchmark returned 2.3% and 0.2% over the same time periods. TheBlackrock Developed Ex-US REIF portfolio had a gross return of 4.8% and 5.8% for the quarter and one-year period, respectively while thebenchmark returned 5.0% and 6.0% over the same time periods. The entire real estate portfolio had a net-of-fees return of 2.7% for thequarter and 7.8% for the trailing one year period while the portfolio blended benchmark returned 2.1% and 6.6%, respectively.

0.5% 0.4% 1.2% -1.4% -1.7% 0.1%



TOTAL GROSS RETURNS vs. BENCHMARKS(for period ended June 30, 2017)

Total Gross Returns vs. Courtland Index (for the period ended March 31, 2017)Quarter YTD 1-Yr 2-Yr 3-Yr 5-Yr 10-Yr Inception

13.3% 1.3% 6.1%Courtland 2.5% 2.5% 10.6% 11.8% 13.4% 13.9%SJCERA - Gross 2.4% 2.4% 8.4% 9.3% 11.1%

5.1% 9.4%Weighted Courtland * 2.6% 2.6% 11.2% 12.3% 13.8% 14.0% 9.4% 9.4%* The Courtland Partners Index returns have been weighted to match SJCERA - Gross's current risk return profile.

PORTFOLIO PERFORMANCE COMMENTS(for period ended June 30, 2017)

The Courtland Partners Index ("CPI") refers to investments reported in Courtland's Quarterly Performance Measurementdatabases. It contains 427 realized investments and 480 active pooled funds, separate accounts, direct investments, and realestate securities in which public and ERISA pension funds, endowments and/or foundations currently have investmentssince 1971. The CPI has a total net asset value of $412.4 billion with a total gross real estate value of $703.8 billion and36.5% leverage weighted by the market value of Courtland's clients. It includes three risk/return categories: 59% core,20% value and 21% opportunistic. The CPI differs from NCREIF because it includes leverage and higher risk/returninvestments (i.e., value and opportunistic). It cannot be finalized until all of its members submit their data; therefore, theprior quarter is shown above.

Quarter YTD 1-yr. 2-yr. 3-yr. 5-yr. 10-yr. InceptionSJCERA - Gross 3.1% 5.6% 9.7% 10.0% 10.5% 13.4% 1.4% 6.2%SJCERA - Net 2.7% 4.8% 7.8% 8.1% 8.5% 11.1% -0.9% 4.0%Blended Benchmark 2.1% 4.4% 6.6% 9.6% 10.1% 11.1% 8.7% 11.4%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%



Remaining Est.Investments CommitmentCore * -$ Invesco US RES -$ Principal US Property -$ Prologis Targeted US Logistics -$ RREEF America REIT II -$ Value 20,185,873$ AG CPRF IV 12,200,000$ Almanac VI 4,500,000$ BlackRock Developed Ex-US REIF -$ Colony Realty Partners III -$ Colony Realty Partners IV 3,485,873$ Legacy Partners Realty II -$ Legacy Partners Realty III -$ RREEF America REIT III -$ Sarofim Multifamily II -$ Opportunistic 39,858,453$ Greenfield Acquisition V -$ Greenfield Acquisition VI -$ Greenfield Acquisition VII 6,522,340$ Greenfield Acquisition VIII 30,000,000$ Miller Global V -$ Miller Global VI -$ Miller Global VII 3,336,113$ Walton Street RE V -$ Walton Street RE VI -$ Total Portfolio 60,044,326$ * Other Core real estate investments in the form of debt are included in the Fixed Income category.

43.0%8/04 9.7%35,616,245$ 11.5% 25,000,000$

R ISK/R ETURN R EVIEW

RISK/RETURN REVIEW - MARKET VALUES AND INVESTMENT COMMITMENTS(for period ended June 30, 2017)

Investment Commitments SummaryClient

Market Value% of Port.

Original Inv. Unfund. % of Current &Incept. Commitment Commitment Unfunded Port.

158,517,005$ 51.3%

2.7% 20,000,000$ 12,200,000$

130,000,000$ -$

4/16 47,182,833$ 15.3% 45,000,000$ -$ 7/07 47,073,170$ 15.2% 35,000,000$ -$

-$ 10/15 28,644,757$ 9.3% 25,000,000$ -$ 7.8%

12.8%12.8%

8/14 25,912,137$ 8.4% 25,040,616$ -$ 7.0%11/12 12,369,720$ 4.0% 30,000,000$ 4,500,000$ 4.6%

5.6%85,500,898$ 27.7% 197,040,616$ 24,213,073$ 28.7%

6/15 8,293,414$

12/12 22,731,095$ 7.4% 21,000,000$ 3,485,873$ 7.1%9/09 15,544,336$ 5.0% 21,000,000$ 4,027,200$ 4.2%

2/08 221,261$ 0.1% 20,000,000$ -$ 0.1%11/06 1,000$ 0.0% 15,000,000$ -$ 0.0%

10/08 194,680$ 0.1% 20,000,000$ -$ 0.1%11/04 233,255$ 0.1% 25,000,000$ -$ 0.1%

4/08 873,424$ 0.3% 30,000,000$ 420,000$ 0.2%64,790,793$ 21.0% 204,122,340$ 43,092,133$ 28.4%

9/14 17,553,046$ 5.7% 19,122,340$ 6,522,340$ 6.5%1/12 5,840,185$ 1.9% 20,000,000$ 2,813,680$ 1.6%

7/05 5,143,584$ 1.7% 15,000,000$ -$ 1.4%N/A -$ 0.0% 30,000,000$ 30,000,000$ 8.1%

12/13 3,709,714$ 1.2% 15,000,000$ 3,336,113$ 1.9%2/08 16,394,895$ 5.3% 30,000,000$ -$ 4.4%

4/09 6,764,896$ 2.2% 15,000,000$ -$ 1.8%8/06 8,511,048$ 2.8% 30,000,000$ -$ 2.3%

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

308,808,696$ 100.0% 531,162,956$ 67,305,206$ 100.0%



Note: All totals may not sum to 100% due to rounding.

SUMMARY OF PORTFOLIO RISK/RETURN PROFILEMarket Value Market Value plus Unfunded Commitments


Core51%

Value28%

Opp.21%

Core43%

Value29%

Opp.28%

0% 10% 20% 30% 40% 50% 60% 70%

Opp.

Value

Core

Policy Range Current Market Value Potential Exposure




P ORTFOLIO C OMPOSITION R EVIEW

PORTFOLIO PROPERTY TYPE DIVERSIFICATION(for period ended June 30, 2017)

(for period ended June 30, 2017)PROPERTY TYPE DIVERSIFICATION vs. BENCHMARKS

26%29%

9%11% 11%

13%

0

37%

14%

24% 24%

1%0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Office Industrial Retail Residential Hotel Other

SJCERA Policy Range NCREIF

Office27%

Industrial29%

Retail9%

Resid'l11%

Hotel11%

Healthcare1%

Land0.3%

Timber1%

Storage1%

Mixed Use3%

Gaming1%

Leisure<0.1%

Other6%

Other13%




PORTFOLIO GEOGRAPHIC DIVERSIFICATION(for period ended June 30, 2017)

GEOGRAPHIC DIVERSIFICATION vs. BENCHMARKS(for period ended June 30, 2017)

25%

9%

26%

31%

0%

9%

0

33%

9%

20%

38%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

East Midwest South West US Not Allocated Int'l

SJCERA Policy Range NCREIF

East25%

Midwest9%

South26%

West31%

US Not Allocated0.5%

Foreign9%



* Residual value of liquidating funds

Investment Public Equity Private Equity Public Debt Private DebtAG CPRF IV 0.0% 97.9% 2.1% 0.0%Almanac VI 29.0% 1.9% 0.0% 69.1%BlackRock Developed Ex-US REIF 100.0% 0.0% 0.0% 0.0%Colony Realty Partners III 0.0% 100.0% 0.0% 0.0%Colony Realty Partners IV 0.0% 100.0% 0.0% 0.0%Greenfield Acquisition V 0.0% 100.0% 0.0% 0.0%Greenfield Acquisition VI 0.0% 100.0% 0.0% 0.0%Greenfield Acquisition VII 0.0% 87.5% 0.0% 12.5%Invesco US RES 100.0% 0.0% 0.0% 0.0%Legacy Partners Realty II 0.0% 100.0% 0.0% 0.0%Legacy Partners Realty III 0.0% 0.0% 0.0% 0.0%Miller Global V 0.0% 100.0% 0.0% 0.0%Miller Global VI 0.0% 100.0% 0.0% 0.0%Miller Global VII 0.0% 100.0% 0.0% 0.0%Principal US Property 0.0% 100.0% 0.0% 0.0%Prologis Targeted US Logistics 0.0% 100.0% 0.0% 0.0%RREEF America REIT II 0.0% 100.0% 0.0% 0.0%RREEF America REIT III 0.0% 0.0% 0.0% 0.0%Sarofim Multifamily II 0.0% 0.0% 0.0% 0.0%Walton Street RE V 0.0% 100.0% 0.0% 0.0%Walton Street RE VI 0.0% 100.0% 0.0% 0.0%

Weighted Total 21.1% 75.2% 0.1% 3.5%

INVESTMENT STRUCTURE DIVERSIFICATION

(for period ended June 30, 2017)

(for period ended June 30, 2017)INVESTMENT CAPITAL STRUCTURE REVIEW

Public Equity

Private Equity

Public Debt

Private DebtResidual Value *



Managers $ % Managers $ % Managers $ %Greenfield $99,122,340 18.7% Deutsche AWM $47,416,087 15.4% Greenfield $60,788,995 16.5%Deutsche AWM $70,000,000 13.2% Prologis $47,073,170 15.2% Deutsche AWM $47,416,087 12.9%Miller Global $60,000,000 11.3% Colony $38,275,431 12.4% Prologis $47,073,170 12.8%Walton Street $45,000,000 8.5% Invesco $35,616,245 11.5% Colony $41,761,304 11.3%Colony $42,000,000 7.9% Principal REI $28,644,757 9.3% Invesco $35,616,245 9.7%Prologis $35,000,000 6.6% Blackrock $25,912,137 8.4% Principal REI $28,644,757 7.8%Legacy $35,000,000 6.6% Miller Global $25,248,193 8.2% Miller Global $28,584,306 7.7%Almanac $30,000,000 5.6% Greenfield $24,266,655 7.9% Blackrock $25,912,137 7.0%Blackrock $25,040,616 4.7% Walton Street $15,275,945 4.9% Angelo Gordon $20,493,414 5.6%Invesco $25,000,000 4.7% Almanac $12,369,720 4.0% Almanac 16,869,720 4.6%Principal REI $25,000,000 4.7% Angelo Gordon $8,293,414 2.7% Walton Street $15,275,945 4.1%Angelo Gordon $20,000,000 3.8% Legacy $222,261 0.1% Legacy $222,261 0.1%Sarofim $20,000,000 3.8% Sarofim $194,680 0.1% Sarofim $194,680 0.1%

Total 531,162,956 100.0% Total $308,808,696 100.0% Total $368,853,022 100.0%

(2) All totals may not sum to 100% due to rounding.(3) Including current market value and estimated unfunded commitments.

(1) Investment Policy generally limits private manager exposure to 30% of the Private Real Estate portfolio, or approximately 21% of thetotal Real Estate portfolio (70% * 30%).

PORTFOLIO PARTNER/MANAGER CONCENTRATION (1) (2)

ORIGINAL COMMITMENTS CURRENT INVESTMENTS POTENTIAL EXPOSURE

Original Commitments Current Investments Potential Exposure (3)

Greenfield16%

Deutsche AWM13%

Prologis13%

Colony11%

Invesco10%

Principal REI…

Miller Global

8%

Blackrock7%

Angelo Gordon

5%

Almanac5%

Walton Street4%

Legacy0.1%

Sarofim0.1%

Deutsche AWM…

Prologis15%

Colony13%

Invesco12%

Principal REI9%

Blackrock8%

Miller Global

8%

Greenfield8%

Walton Street5%

Almanac4%

Angelo Gordon

3%

Legacy0.1%

Sarofim0.1%Greenfield

19%

Deutsche AWM13%

Miller Global11%

Walton Street8%

Colony8%

Prologis6%

Legacy6%

Almanac6%

Blackrock5%

Invesco5%

Principal REI5%

Angelo Gordon

4%

Sarofim4%

0%2%4%6%8%

10%12%14%16%18%20%

Original Current Potential



Investment Market Value Leverage Policy Limit

AG CPRF IV Value $8,293,414 64.6%Miller Global VII Opportunistic $3,709,714 63.6%Greenfield Acquisition VI Opportunistic $5,840,185 58.5%Greenfield Acquisition VII Opportunistic $17,553,046 58.1%Miller Global VI Opportunistic $16,394,895 53.3%Walton Street RE VI Opportunistic $6,764,896 53.0%Colony Realty Partners IV Value $22,731,095 48.5%Miller Global V Opportunistic $5,143,584 46.4%Walton Street RE V Opportunistic $8,511,048 45.8%Colony Realty Partners III Value $15,544,336 44.6%Greenfield Acquisition V Opportunistic $873,424 33.9%Legacy Partners Realty II Value $1,000 30.6%Prologis Targeted US Logistics Core $47,073,170 24.1%Principal US Property Core $28,644,757 23.1%RREEF America REIT II Core $47,182,833 20.0%Almanac VI Value $12,369,720 N/ARREEF America REIT III Value $233,255 N/ALegacy Partners Realty III Value $221,261 N/ASarofim Multifamily II Value $194,680 N/A

* Core $122,900,760 22.3% 50.0%* Value $59,588,761 39.1% 65.0%* Opportunistic $64,790,793 53.8% 75.0%* Total Private Real Estate $247,280,313 34.6% 65.0%

* Weighted by market value.

INVESTMENT LEVERAGE REVIEW


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Equity Debt



VintageYear

AG CPRF IV 2015Almanac Realty Securities VI 2012BlackRock Developed Ex-US REIF 2014Colony Realty Partners III 2008Colony Realty Partners IV 2012Greenfield Acquisition Partners V 2007Greenfield Acquisition Partners VI 2011Greenfield Acquisition Partners VII 2013Invesco US Real Estate Securities 2004Legacy Partners Realty Fund II 2006Legacy Partners Realty Fund III 2007Miller Global Fund V 2004Miller Global Fund VI 2007Miller Global Fund VII 2012Principal US Property OpenPrologis Targeted US Logistics Fund OpenRREEF America REIT II (2) OpenRREEF America REIT II OpenRREEF America REIT III OpenSarofim Multifamily Fund II 2008Walton Street Real Estate Fund V 2005Walton Street Real Estate Fund VI 2009Completed Investments N/A

Total(1) Fees are shown for informational purposes, and are also included as a deduction from Net Income.(2) The investment made in the 2nd quarter of 2005 was completed in the 3rd quarter of 2007.

Total PortfolioInvestment Activity Statement Since Inception by Fund

Investment Original Inv. Gross Return of Net Unrealized Realized Ending Commitment Contributions Fees (1) Capital Distributions Income Appreciation Gain Market Value

20,000,000 7,800,000 (537,581) - (18,728) (61,819) 567,227 6,734 8,293,414 3,003,180 1,696,008 12,369,720

25,040,616 25,124,441 (83,824) - - 2,919,830 (2,132,134) 30,000,000 18,646,238 (2,595,280) (9,531,800) (4,346,671) 2,902,765

- 25,912,137 21,000,000 20,111,684 (2,592,700) (12,410,167) (1,124,900) 4,108,339 2,068,580 2,790,800 15,544,336 21,000,000 21,739,813 (2,019,500) (9,188,581) (222,200) 2,754,137 5,561,134 2,086,792 22,731,095

(1,366,260) 11,393,066 873,424 20,000,000 24,119,741 (2,848,482) (18,480,833) (9,122,024) 1,383,183 (699,267) 30,000,000 29,580,000 (4,791,280) (29,199,547) (10,491,591) 957,756

8,639,385 5,840,185 19,122,340 14,050,000 (1,764,377) (1,110,000) (362,939) 727,820 2,503,302 1,744,863 17,553,046 25,000,000 26,630,472 (1,674,992) (23,114,551) - 10,456,740 2,166,845 19,476,739 35,616,245

(7,481,683) - 1,000 20,000,000 18,798,121 (2,052,578) (10,442,637) - 552,816 (8,687,039) 15,000,000 15,000,000 (1,570,980) (404,054) - (7,113,263)

- 221,261 15,000,000 24,111,448 (1,960,431) (9,646,545) (12,893,721) (23,824) 2,328,613 1,267,613 5,143,584 30,000,000 21,245,720 (3,522,727) (125,712) (15,204,189) 5,419,287 4,584,893 474,897 16,394,895

270,487 4,842,907 3,709,714 25,000,000 25,000,000 (408,845) - - 1,587,332 2,057,425 15,000,000 16,299,175 (2,732,172) (4,329,936) (12,324,021) (1,048,899)

- 28,644,757 35,000,000 45,062,216 (5,316,866) - (10,438,118) 14,809,110 (2,360,037) - 47,073,170 7,500,000 9,109,553 (225,737) - (11,873,065) 797,484 - 1,966,028 -

1,813,135 (1,968,208) 47,182,833 25,000,000 29,260,996 (2,013,765) (21,830,052) (1,140,735) 1,969,430 (10,479,445) 45,000,000 35,890,447 (239,721) - 10,626,549 820,909

2,453,060 233,255 20,000,000 15,931,956 (540,688) (15,428,793) (4,571,206) (43,998) - 4,306,721 194,680 30,000,000 30,000,000 (3,078,756) (15,671,733) - 598,750 (1,353,189) (5,062,779) 8,511,048

(784,010) 7,392,893 6,764,896 N/A 41,458,376 (1,458,377) (16,167,466) (25,110,506) 1,914,094 (0)

15,000,000 13,297,180 (2,154,961) (13,195,087) - 53,921 (2,094,498) -

N/A 528,267,576 (46,184,619) (210,277,493) (108,618,065) 46,441,900 (8,418,242) 61,413,021 308,808,696




Total PortfolioInvestment Activity Statement

Qtr. Gross Return of Net Unrealized Realized Ending

Contributions Fees Capital Distributions Income Appreciation Gain Market Value6,568,010

Q4-04 9,654,128 (29,848) - (22,400) 131,315 1,326,370 53,640 17,711,062 Q3-04 6,250,000 (4,128) - - 30,310 237,109 50,591

(1,075,482) 19,786 16,796,422 Q2-05 8,737,650 (60,904) - (18,551) 156,726 2,313,687 Q1-05 40,173 (39,120) - (29,211) 130,092

42,288 28,028,221 Q3-05 12,527,788 (283,083) (1,577,585) (39,759) 77,394 1,111,612 226,095 40,353,766 Q4-05 1,472,575 (181,235) (931,034) (91,959) 212,953 1,210,509 46,056 42,272,865

4,326,767 329,508 48,226,946 Q2-06 8,258,887 (176,568) (161,984) (173,369) 303,829 100,217 Q1-06 3,712,881 (165,670) (2,586,205) (67,774) 238,905

294,364 56,848,890 Q3-06 25,463,258 (93,126) (2,632,068) (62,057) 225,059 2,181,341 890,363 82,914,786 Q4-06 17,401,610 (549,345) (4,551,721) (326,898) (183,563) 9,663,039 587,529 105,504,781

2,856,057 1,450,834 121,614,190 Q2-07 18,460,185 (511,938) (17,114,551) (1,437,017) 25,000 (3,081,717) Q1-07 12,078,117 (353,453) (96,239) (161,148) (18,214)

4,841,800 123,307,889 Q3-07 22,226,324 (681,008) (221,480) (3,394,443) (837,858) 2,879,241 1,074,452 145,034,125 Q4-07 16,666,409 (324,003) (8,490) (452,196) (305,207) (4,417,265) 473,841 156,991,217

(2,675,316) (152,405) 170,732,458 Q2-08 7,796,822 (1,136,846) (2,123,709) (479,682) (299,034) (7,207,354) Q1-08 18,018,807 (925,351) (125,712) (468,265) (855,867)

9,017 168,428,519 Q3-08 8,062,648 (716,917) - (406,380) 294,955 (22,874,595) (772,168) 152,732,980 Q4-08 18,446,936 (803,147) - (230,940) (806,729) (48,660,178) (2,311,032) 119,171,038

(32,790,080) (1,938,820) 88,991,779 Q2-09 3,655,722 (754,006) - - (352,120) (13,429,246) Q1-09 2,901,878 (729,773) - - 1,647,763

(648,094) 78,218,042 Q3-09 6,340,725 (1,209,585) - - (1,897,029) 750,204 306,601 83,718,542 Q4-09 3,653,403 (747,569) - (229,167) (807,985) 5,244,877 (1,266,305) 90,313,366

2,567,090 (750,111) 99,286,100 Q2-10 3,489,105 (744,034) - (430,994) 42,513 226,138 Q1-10 7,422,944 (752,691) - (154,471) (112,718)

966,106 103,578,968 Q3-10 4,542,141 (748,235) - (157,556) (70,990) 15,824,579 200,287 123,917,429 Q4-10 13,424,962 (709,935) - (159,011) 135,324 16,284,458 (8,251) 153,594,910

3,542,147 550,752 159,746,346 Q2-11 9,041,958 (703,316) (635,900) (586,287) 604,943 8,963,274 Q1-11 1,328,817 (746,668) (201,100) (296,479) 1,227,299

567,286 177,701,619 Q3-11 4,652,145 (787,442) (4,100,000) (588,019) 581,388 (12,146,607) 1,986,946 168,087,472 Q4-11 9,170,581 (787,539) (2,662,879) (1,183,070) 970,545 5,227,630 829,044 180,439,325

7,515,324 607,191 202,493,526 Q2-12 5,197,375 (897,479) (2,986,470) (685,475) 2,252,817 7,545,454 Q1-12 14,612,563 (951,908) (1,147,122) (219,885) 686,130

(5,009,101) 208,808,126 Q3-12 25,919,578 (671,988) (16,454,671) (1,663,820) 1,628,754 16,951,304 (5,269,009) 229,920,263 Q4-12 14,563,576 (1,467,293) (9,463,574) (528,819) 1,171,684 8,802,044 1,257,526 245,722,701

2,109,468 1,724,602 256,408,491 Q2-13 720,202 (2,073,883) (8,481,299) (350,989) 1,487,135 2,948,918 Q1-13 9,306,196 (951,626) (3,638,559) (868,653) 2,052,735

2,924,228 255,656,685 Q3-13 7,086,702 (1,291,178) (7,073,938) (5,277,554) 1,723,980 2,633,631 2,276,978 257,026,485 Q4-13 12,270,011 (2,096,786) (13,248,864) (3,426,752) 894,240 1,586,459 6,628,100 261,729,678

708,434 3,633,790 267,212,592 Q2-14 7,606,147 (1,705,264) (12,801,051) (5,402,454) 2,583,599 1,540,694 Q1-14 2,818,965 (1,904,475) (2,645,759) (951,740) 1,919,225

7,182,480 267,922,008 Q3-14 29,000,303 (1,153,951) (12,007,193) (34,630,140) 1,418,273 (3,234,111) 4,338,761 252,807,900 Q4-14 7,211,765 (1,845,306) (13,787,129) (3,532,028) 2,140,297 6,513,494 2,222,367 253,576,666

1,903,668 1,553,700 253,245,490 Q2-15 4,723,259 (1,542,883) (7,252,148) (7,624,272) 1,827,150 (5,067,502) Q1-15 879,988 (942,078) (4,613,111) (2,947,200) 2,891,779

6,124,553 245,976,531 Q3-15 9,214,263 (1,215,771) (7,912,302) (4,940,336) 2,296,055 (2,449,112) 5,125,276 247,310,374 Q4-15 22,081,625 (1,538,584) (4,155,377) (3,529,169) 1,407,830 2,340,075 2,504,593 267,959,952

(31,561) 2,884,241 266,343,545 Q2-16 24,486,063 (615,632) (10,236,944) (2,489,352) 1,977,904 142,541 Q1-16 3,986,446 (1,533,885) (4,608,393) (6,593,061) 2,745,920

2,873,207 283,096,965 Q3-16 25,024,255 (1,510,451) (7,473,166) (1,986,351) 3,123,484 (1,902,549) 3,596,941 303,479,580 Q4-16 15,306,729 (1,392,930) (7,580,956) (1,847,258) 2,745,955 893,535 247,131 313,244,716

3,142,924 308,808,696 618,499 2,892,539 312,123,215

Q2-17 761,807 (1,481,481) (6,806,587) (5,400,355) 3,953,148 1,034,545 Q1-17 590,180 (943,301) (6,172,224) (2,075,301) 3,024,806

(8,418,242) 61,413,021


Total 528,267,576 (46,184,619) (210,277,493) (108,618,065) 46,441,900



Investments Current Qtr 1-Yr 2-Yr 3-Yr 5-Yr 10-YrAG CPRF IV Net Return 4.8% 7.3% 4.8% N/A N/A N/A

Contribution to Total Net Return 0.1% 0.2% 0.1% N/A N/A N/A% Contribution to Total Net Return 4.8% 2.2% 1.2% N/A N/A N/A

Almanac VI Net Return 1.3% 12.6% 20.1% 15.0% N/A N/AContribution to Total Net Return 0.1% 0.5% 0.9% 0.6% N/A N/A% Contribution to Total Net Return 1.9% 6.5% 11.7% 8.4% N/A N/A

Alpine Woods Non US RES Net Return 0.0% 0.0% 0.0% 0.0% 0.8% N/AContribution to Total Net Return 0.0% 0.0% 0.0% 0.0% 0.0% N/A% Contribution to Total Net Return 0.0% 0.0% 0.0% 0.0% 0.0% N/A

BlackRock Developed Ex-US REIF Net Return 4.8% 5.6% 3.3% 1.0% N/A N/AContribution to Total Net Return 0.4% 0.5% 0.3% 0.1% N/A N/A% Contribution to Total Net Return 15.0% 5.7% 3.8% 1.2% N/A N/A

Colony Realty Partners III Net Return 1.2% 2.2% 2.3% 4.3% 6.2% N/AContribution to Total Net Return 0.1% 0.1% 0.1% 0.3% 0.4% N/A% Contribution to Total Net Return 2.3% 1.4% 1.9% 3.9% 2.2% N/A

Colony Realty Partners IV Net Return 1.9% 10.3% 11.9% 15.5% N/A N/AContribution to Total Net Return 0.1% 0.8% 0.9% 1.1% N/A N/A% Contribution to Total Net Return 5.2% 10.2% 12.5% 14.3% N/A N/A

EII Non US RES Net Return 0.0% 0.0% 0.0% N/A N/A N/AContribution to Total Net Return 0.0% 0.0% 0.0% N/A N/A N/A% Contribution to Total Net Return 0.0% 0.0% 0.0% N/A N/A N/A

Greenfield Acquisition V Net Return -9.4% -1.9% -3.8% -3.7% 2.7% N/AContribution to Total Net Return 0.0% 0.0% 0.0% -0.1% 0.1% N/A% Contribution to Total Net Return -1.0% -0.1% -0.5% -0.8% 0.7% N/A

Greenfield Acquisition VI Net Return 2.9% 8.6% 5.2% 8.5% 11.8% N/AContribution to Total Net Return 0.1% 0.2% 0.2% 0.5% 0.7% N/A% Contribution to Total Net Return 2.1% 3.1% 2.9% 6.3% 3.3% N/A

Greenfield Acquisition VII Net Return 7.0% 14.2% 14.3% 12.3% N/A N/AContribution to Total Net Return 0.4% 0.8% 0.7% 0.6% N/A N/A% Contribution to Total Net Return 14.8% 9.9% 10.0% 7.5% N/A N/A

Invesco US RES Net Return 2.2% 0.7% 10.2% 8.1% 9.1% 6.2%Contribution to Total Net Return 0.3% 0.1% 1.2% 1.0% 1.0% 0.8%% Contribution to Total Net Return 9.5% 1.0% 16.2% 12.7% 5.0% 118.4%

Legacy Partners Realty II Net Return N/M N/M N/M N/M N/M N/MContribution to Total Net Return N/A N/A N/A N/A N/A N/A% Contribution to Total Net Return N/A N/A N/A N/A N/A N/A

Legacy Partners Realty III Net Return 2.6% -2.7% -16.4% -10.7% N/M N/AContribution to Total Net Return 0.0% 0.0% -0.2% -0.2% N/M N/A% Contribution to Total Net Return 0.1% 0.0% -3.0% -3.3% N/A N/A

Miller Global V Net Return -1.8% -7.0% 3.8% 6.2% 8.5% -5.6%Contribution to Total Net Return 0.0% -0.1% 0.1% 0.1% 0.2% -0.2%% Contribution to Total Net Return -1.1% -1.5% 1.0% 1.8% 1.2% -25.0%

Miller Global VI Net Return 3.5% 10.9% 9.7% 10.3% 9.8% N/AContribution to Total Net Return 0.2% 0.6% 0.5% 0.6% 0.7% N/A% Contribution to Total Net Return 6.9% 7.1% 7.4% 8.4% 3.4% N/A

Miller Global VII Net Return 6.1% 11.8% 10.8% 13.8% N/A N/AContribution to Total Net Return 0.1% 0.2% 0.2% 0.4% N/A N/A% Contribution to Total Net Return 2.7% 2.5% 3.3% 5.0% N/A N/A

SJCERANet Total Return Attribution

as of June 30, 2017(Based on Averaged Weight)



Investments Current Qtr 1-Yr 2-Yr 3-Yr 5-Yr 10-Yr

SJCERANet Total Return Attribution

as of June 30, 2017(Based on Averaged Weight)

Principal US Property Net Return 2.1% 8.8% N/A N/A N/A N/AContribution to Total Net Return 0.2% 0.8% N/A N/A N/A N/A% Contribution to Total Net Return 7.2% 9.9% N/A N/A N/A N/A

Prologis Targeted US Logistics Net Return 3.4% 16.6% 15.1% 15.5% 15.2% 3.2%Contribution to Total Net Return 0.5% 2.4% 2.2% 2.2% 1.9% 0.5%% Contribution to Total Net Return 19.2% 30.1% 29.6% 29.1% 9.5% 69.0%

RREEF America REIT II Net Return 1.5% 7.1% N/A N/A N/A N/AContribution to Total Net Return 0.2% 1.0% N/A N/A N/A N/A% Contribution to Total Net Return 8.6% 12.7% N/A N/A N/A N/A

RREEF America REIT III Net Return -3.3% -16.4% -13.3% -2.6% 6.5% -5.7%Contribution to Total Net Return 0.0% 0.0% -0.1% 0.0% 0.2% -0.3%% Contribution to Total Net Return -0.1% -0.2% -0.8% -0.5% 0.9% -45.0%

Sarofim Multifamily II Net Return -3.5% 2.9% 9.0% 0.6% 3.2% N/AContribution to Total Net Return 0.0% 0.0% 0.1% 0.0% 0.1% N/A% Contribution to Total Net Return -0.1% 0.1% 1.1% 0.1% 0.5% N/A

Walton Street RE V Net Return 0.5% -0.2% 1.9% 6.0% 8.3% -1.4%Contribution to Total Net Return 0.0% 0.0% 0.1% 0.3% 0.4% -0.1%% Contribution to Total Net Return 0.5% -0.1% 1.1% 3.7% 2.2% -17.4%

Walton Street RE VI Net Return 1.9% -2.4% 1.0% 4.2% 8.4% N/AContribution to Total Net Return 0.0% -0.1% 0.0% 0.2% 0.4% N/A% Contribution to Total Net Return 1.5% -0.7% 0.4% 2.0% 1.8% N/ANet Return 2.7% 7.8% 8.1% 8.5% 11.1% -0.9%Total % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Total Investments



216-522-0330

10866 WILSHIRE BLVD., SUITE 830LOS ANGELES, CA 90024

310-474-3040

CLEVELAND, OH 44114

SAN JOAQUIN COUNTY EMPLOYEES' RETIREMENT ASSOCIATION

REAL ESTATE PORTFOLIO

PERFORMANCE MEASUREMENT REPORT

INVESTMENT SUMMARY

Second Quarter 2017


127 PUBLIC SQUARE, SUITE 5050

____________________________________________________________________________________________________ COURTLAND PARTNERS, LTD.


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43444546474849

APPENDIX - Real Estate Market Overview

Prima Mortgage Investment Trust Investment Activity Statement..............................................................................................

Walton Street Real Estate Fund VI Investment Activity Statement.............................................................................................

Doubleline Total Return Mortgage Backed Securities Investment Summary.............................................................................

Mesa West Real Estate Income Fund III Investment Summary...................................................................................................Mesa West Real Estate Income Fund III Investment Activity Statement...................................................................................Prima Mortgage Investment Trust Investment Summary..............................................................................................................

Commercial Mortgage Portfolio

Doubleline Total Return Mortgage Backed Securities Investment Activity Statement.............................................................

Sarofim Multifamily Fund II Investment Summary.........................................................................................................................Sarofim Multifamily Fund II Investment Activity Statement.........................................................................................................Walton Street Real Estate Fund V Investment Summary...............................................................................................................Walton Street Real Estate Fund V Investment Activity Statement..............................................................................................Walton Street Real Estate Fund VI Investment Summary.............................................................................................................

Prologis Targeted US Logistics Fund Investment Activity Statement.........................................................................................RREEF America REIT II Investment Summary.............................................................................................................................RREEF America REIT II Investment Activity Statement.............................................................................................................RREEF America REIT III Investment Summary............................................................................................................................RREEF America REIT III Investment Activity Statement...........................................................................................................

Miller Global Fund VII Investment Summary..................................................................................................................................Miller Global Fund VII Investment Activity Statement.................................................................................................................Principal US Property Account Investment Summary....................................................................................................................Principal US Property Account Investment Activity Statement....................................................................................................Prologis Targeted US Logistics Fund Investment Summary..........................................................................................................

Legacy Partners Realty Fund III Investment Activity Statement..................................................................................................Miller Global Fund V Investment Summary.....................................................................................................................................Miller Global Fund V Investment Activity Statement.....................................................................................................................Miller Global Fund VI Investment Summary...................................................................................................................................Miller Global Fund VI Investment Activity Statement...................................................................................................................

Invesco US Real Estate Securities Investment Summary................................................................................................................Invesco US Real Estate Securities Investment Activity Statement...............................................................................................Legacy Partners Realty Fund II Investment Summary....................................................................................................................Legacy Partners Realty Fund II Investment Activity Statement....................................................................................................Legacy Partners Realty Fund III Investment Summary..................................................................................................................

Greenfield Acquisition Partners V Investment Activity Statement..............................................................................................Greenfield Acquisition Partners VI Investment Summary.............................................................................................................Greenfield Acquisition Partners VI Investment Activity Statement.............................................................................................Greenfield Acquisition Partners VII Investment Summary...........................................................................................................Greenfield Acquisition Partners VII Investment Activity Statement...........................................................................................

Colony Realty Partners III Investment Summary............................................................................................................................Colony Realty Partners III Investment Activity Statement............................................................................................................Colony Realty Partners IV Investment Summary.............................................................................................................................Colony Realty Partners IV Investment Activity Statement............................................................................................................Greenfield Acquisition Partners V Investment Summary..............................................................................................................

AG Core Plus Realty Fund IV Investment Activity Statement.....................................................................................................Almanac Realty Securities VI Investment Summary........................................................................................................................Almanac Realty Securities VI Investment Activity Statement.......................................................................................................BlackRock Developed Ex-US Real Estate Index Fund Investment Summary...........................................................................BlackRock Developed Ex-US Real Estate Index Fund Investment Activity Statement...........................................................

AG Core Plus Realty Fund IV Investment Summary......................................................................................................................

Table of Contents

____________________________________________________________________________________________________ COURTLAND PARTNERS, LTD.


Fund-Level Information Client-Level InformationLegal Structure: Risk/Return:Inception Date: Equity Value:Investment Ends: % Ownership of Fund:Expiration Date: % of Portfolio:No. of Investments: Client Investment Date:Target Return: Investment Commitment:NAV + Debt: Remaining Commitment:Net Asset Value: Contributions:Leverage Ratio: Distributions/Ret. Of Cap:Investment Strategy: Net Internal Rate of Return:

Equity Multiple:

Since Inception


4.1% 4.3% 8.5% 1.4% 10.6%

Property Type Diversification Geographic Diversification

Five-Year N/A N/A N/A N/A N/A

7.3%

N/ATwo-Year 5.3% 4.8% 10.4% 4.8% 9.9%Three-Year N/A N/A N/A N/A

8.0%One-Year 4.7%

1.7%Year-to-Date 2.7% 4.2% 7.0% 5.4% 3.5%Quarter 1.4% 4.2% 5.6% 4.8%

6.2%

Income Appreciation Total

11.1%

(After Fees) Net Total

AG CPRF IVSummary of Performance

(for period ended June 30, 2017)SJCERA

Gross Gross Gross Net Total ODCE +1%

11.0% $20,000,000$1,530,046,958 $12,200,000$542,244,129 $7,800,00064.6% $18,728Focus on sub-performing office, retail, apartment, and industrial real estate, predominantly located in the largest U.S. markets.

5.4%1.07

3/2019 1.5%1/2025 2.5%19 6/2015

10/2014 $8,293,414

AG Core Plus Realty Fund IVPartner/Manager: Angelo Gordon

Limited Partnership Value

East 30%

Midwest 8%

South 17%

West 39%

US Not Allocated

2%

Europe 4%

Office 80%

Retail 3%

Resid'l 15%

Land 0.2%

Other 2%

Private Equity 98%

Public Debt 2%

Investment Structure Diversification

COURTLAND PARTNERS, LTD. Page 1


567,227 6,734


Total 7,800,000 (537,581) - (18,728) (61,819) 68 8,293,414

495 73 7,910,012 Q2-17 - (60,336) - - 50,727 332,607 Q1-17 - (60,177) - - 41,525 Q4-16 2,400,000 (58,790) - - (4,583) 109,498 587 7,867,919 Q3-16 800,000 (56,248) - - (4,523) 9,448 672 5,362,417

- - 3,152,487 Q2-16 1,400,000 (55,285) - (18,728) 8,992 8,735 Q1-16 - (54,394) - - (16,178)

5,334 4,556,820

Q4-15 (500,000) (54,793) - - (36,478) 106,444 - 3,168,665

- 1,692,638 Q3-15 1,900,000 (53,740) - - 6,061 - - Q2-15 1,800,000 (83,818) - - (107,362) -

3,598,699

AG Core Plus Realty Fund IVInvestment Activity Statement


Contributions Fees Capital Distributions Income Appreciation Gain Market Value




Equity Multiple:

Since Inception


8.3% 12.8% 22.0% 16.1% 11.9%



12.6%

11.4%Two-Year 7.0% 17.5% 25.4% 20.1% 9.9%Three-Year 6.8% 12.2% 19.6% 15.0%

8.0%One-Year 7.2%

1.7%Year-to-Date 3.5% -0.1% 3.4% 2.8% 3.5%Quarter 1.7% -0.4% 1.3% 1.3%

8.4%


16.0%


Almanac VISummary of Performance



12.0% $30,000,000$369,690,899 $4,500,000$369,690,899 $18,646,238N/A $13,878,471Private placements of growth capital into REITs and REOCs in convertible preferred stock or debentures.

16.9%1.41

11/2016 3.7%11/2022 3.7%3 11/2012

1/2012 $12,369,720

Almanac Realty Securities VIPartner/Manager: Almanac Realty Investors


East 19%

Midwest 22%

South 45%

West 14%

Office 11%

Industrial 1%

Retail 8%

Resid'l 27%

Hotel 47%

Land 3%

Other 3%

Public Equity 29%

Private Equity 2%

Private Debt 69%




3,003,180 1,696,008


Total 18,646,238 (2,595,280) (9,531,800) (4,346,671) 2,902,765 50,562 12,369,720

(2,038) - 12,544,241 Q2-17 188,384 (9,672) (317,804) (202,323) 195,440 (88,780) Q1-17 - (60,770) - (191,150) 194,450 Q4-16 74,401 (177,416) (1,136,774) (324,056) 219,819 338,392 155,859 12,542,979 Q3-16 569,021 (153,826) (132,963) (201,747) 184,350 283,523 - 13,215,338

71,211 - 13,444,370 Q2-16 - (156,262) (859,564) (410,208) 177,772 (117,871) Q1-16 1,136,960 (45,724) - (168,220) 164,933

278,655 12,513,154

Q4-15 837,746 (433,168) - (129,970) 186,849 1,640,110 - 12,239,486 Q3-15 650,258 (47,480) - (146,572) 117,947 198,656 - 9,704,751

(175,859) - 8,039,229 Q2-15 819,146 (35,079) - (26,100) 94,138 (41,951) Q1-15 450,121 23,042 (290,901) (214,627) 34,165

- 8,884,462

Q4-14 - (381,515) (6,690,842) (1,293,978) 136,212 (426,919) 1,161,020 8,236,330 Q3-14 173,982 (59,979) (102,952) (231,489) 180,788 (163,016) 49,912 15,350,837

189,409 - 12,671,372 Q2-14 2,893,482 (86,859) - (289,635) 201,469 (33,076) Q1-14 2,173,714 (166,655) - (98,082) 263,955

- 15,443,612

Q4-13 399,682 (459,883) - (85,244) 97,292 1,161,371 - 10,142,376 Q3-13 1,112,020 (48,908) - (40,920) 98,136 (68,883) - 8,569,275

461,858 - 7,340,735 Q2-13 369,245 (175,251) - (55,037) 63,460 (249,481) Q1-13 128,930 (73,973) - (237,313) 105,850

- 7,468,922

Q4-12 6,669,146 (45,902) - - 185,740 26,524 - 6,881,410

Almanac Realty Securities VIInvestment Activity Statement






Equity Multiple:

Since Inception


4.2% -2.9% 1.1% 1.0% 1.4%



5.6%

1.4%Two-Year 3.9% -0.4% 3.4% 3.3% 3.7%Three-Year 4.2% -2.9% 1.1% 1.0%

6.0%One-Year 4.2%


1.6%


5.8%

(After Fees) Gross Total

Blackrock Developed Ex-US REIFSummary of Performance

(for period ended June 30, 2017)SJCERA EPRA NAREIT

Gross Gross Gross Net Total Ex U.S.

N/A $25,040,616$4,217,850,000 $0$3,090,000,000 $25,124,44126.7% $0Invest in the public stock market through a diversified portfolio of Non-US real estate securities.

1.1%1.03

N/A 0.8%N/A 7.7%187 8/2014

8/2014 $25,912,137

BlackRock Developed Ex-US Real Estate Index FundPartner/Manager: Blackrock

N/A Value

Europe 34%

Asia 46%

Australia/ Pacific 13%

Canada 6%

Global Not

Allocated 1%

Office 9%

Industrial 6%

Retail 22%

Resid'l 3%

Hotel 1%

Healthcare 1%

Mixed Use 35%

Leisure 0.1%

Other 23%

Public Equity 100%




(2,132,134) -


Total 25,124,441 (83,824) - - 2,919,830 - 25,912,137

909,694 - 24,718,516 Q2-17 7,722 (7,722) - - 363,357 822,542 Q1-17 7,241 (7,241) - - 242,896 Q4-16 7,142 (7,142) - - 156,701 (2,153,205) - 23,558,685 Q3-16 7,734 (7,734) - - 212,797 825,734 - 25,548,047

976,439 - 24,353,380 Q2-16 7,368 (7,368) - - 248,298 (107,263) Q1-16 6,829 (6,829) - - 203,680

- 24,501,782

Q4-15 7,120 (7,120) - - 141,518 81,191 - 23,166,432 Q3-15 7,108 (7,108) - - 219,946 (1,509,893) - 22,936,603

315,885 - 24,844,175 Q2-15 7,479 (7,479) - - 265,005 (897,217) Q1-15 7,389 (7,389) - - 533,582

- 24,219,441

23,603,041 Q4-14 7,324 (7,324) - - 206,197 170,757 - 23,987,319 Q3-14 25,043,985 (3,369) - - 125,853 (1,566,797) -

BlackRock Developed Ex-US Real Estate Index FundInvestment Activity Statement






Equity Multiple:

Since Inception


-0.2% 3.4% 0.0% -13.0% 10.6%


Five-Year 6.1% 1.3% 7.4% 6.2% 11.7%

2.2%

11.4%Two-Year 5.1% -1.7% 3.4% 2.3% 9.9%Three-Year 5.4% 0.0% 5.4% 4.3%

8.0%One-Year 4.0%

1.7%Year-to-Date 2.3% -0.5% 1.8% 1.4% 3.5%Quarter 1.0% 0.2% 1.2% 1.2%

-0.8%


3.2%


Colony Realty Partners IIISummary of Performance



13.0% $21,000,000$516,013,800 $4,027,200$285,670,800 $20,111,68444.6% $13,535,067Focus on core-enhanced, core-plus and value added investment properties in major cities located in the U.S.

7.8%1.45

6/2012 5.4%6/2020 4.6%19 9/2009

1/2008 $15,544,336

Colony Realty Partners IIIPartner/Manager: Colony Realty Partners


East 35%

Midwest 28%

South 11%

West 26%

Office 46% Industrial

54%

Private Equity 100%




2,068,580 2,790,800


Total 20,111,684 (2,592,700) (12,410,167) (1,124,900) 4,108,339 - 15,544,336

(105,700) (500) 15,518,680 Q2-17 - (49,124) (163,044) - 160,800 27,900 Q1-17 - (48,500) (163,044) - 140,623 Q4-16 - (50,200) (1,187,499) - 89,200 (58,100) 108,800 15,647,301 Q3-16 - (59,300) (2,698,900) - 108,200 (1,578,600) 1,457,000 16,694,900

104,280 - 19,812,500 Q2-16 - (62,200) (209,200) - 193,900 (390,000) Q1-16 - (62,200) (260,870) - 145,100

- 19,407,200

Q4-15 - (62,200) (260,870) - 355,800 (415,100) - 19,823,990 Q3-15 - (62,200) (260,870) - 260,500 204,000 - 20,144,160

137,000 - 19,766,800 Q2-15 - (62,200) (260,870) - 251,200 183,400 Q1-15 - (63,000) (672,300) - 240,000

- 19,940,530

Q4-14 - (65,000) (1,169,600) - 166,700 315,700 108,300 20,062,100 Q3-14 - (18,300) (271,700) - 283,300 (360,900) 328,700 20,641,000

321,200 - 20,280,600 Q2-14 688,100 (85,800) (826,100) - 419,800 99,200 Q1-14 - (90,200) (538,000) - 208,800

- 20,661,600

Q4-13 - 70,900 (271,700) - 541,000 (935,500) 264,000 20,288,600 Q3-13 217,400 (58,500) (271,700) - 304,200 83,200 - 20,690,800

555,500 - 20,120,500 Q2-13 - (90,200) (271,700) - 294,600 214,300 Q1-13 - (138,800) (271,700) - 149,300

- 20,357,700

Q4-12 - (118,400) (244,600) - 92,800 548,200 (200) 19,687,400 Q3-12 - (30,200) (233,700) - 214,500 95,400 - 19,291,200

385,200 - 16,947,900 Q2-12 2,184,800 (135,900) (168,500) (222,800) 257,800 198,800 Q1-12 - (121,300) (206,500) - 277,100

17,000 19,215,000

Q4-11 1,902,200 (75,000) (190,200) - 238,600 479,400 (300) 16,492,100 Q3-11 - (75,000) (500,000) (396,700) 175,000 (72,200) 233,400 14,062,400

759,800 (200) 12,077,500 Q2-11 2,717,400 (75,000) (635,900) (396,700) 175,400 398,200 Q1-11 - (75,000) (201,100) (108,700) 173,400

287,000 14,622,900

Q4-10 4,076,100 (75,000) - - 179,000 794,500 (12,200) 11,454,300 Q3-10 2,717,400 (75,000) - - (8,500) 382,900 - 6,416,900

64,600 - 3,123,700 Q2-10 - (75,000) - - (60,000) 261,400 Q1-10 2,717,400 (75,000) - - (81,300)

- 3,325,100

451,900 Q4-09 - (75,000) - - (2,500) (26,400) - 423,000 Q3-09 2,890,884 (504,000) - - (1,835,984) (603,000) -

Colony Realty Partners IIIInvestment Activity Statement






Equity Multiple:

Since Inception


5.3% 15.3% 21.4% 16.6% 11.9%



10.3%


8.0%One-Year 7.4%


3.6%


11.3%


Colony Realty Partners IVSummary of Performance



9.0% $21,000,000$259,256,700 $3,485,873$133,471,300 $21,739,81348.5% $9,410,781A diversified Core-plus/Value-add portfolio in the U.S.

17.0%1.48

7/2016 18.9%7/2024 6.8%9 12/2012

1/2012 $22,731,095

Colony Realty Partners IVPartner/Manager: Colony Realty Partners


East 16%

Midwest 8%

South 29%

West 47%

Office 38%

Industrial 41%

Resid'l 21%

Private Equity 100%




5,561,134 2,086,792


Total 21,739,813 (2,019,500) (9,188,581) (222,200) 2,754,137 5,300 22,731,095

(849,600) 1,171,292 22,557,695 Q2-17 - (66,825) (251,743) - 387,100 32,743 Q1-17 - (70,000) (4,207,706) - 273,900 Q4-16 - (76,000) (251,743) - 438,400 259,886 - 26,169,809 Q3-16 4,944,954 (76,000) (251,743) - 451,122 278,900 - 25,723,266

223,429 - 20,139,700 Q2-16 - (75,000) (251,743) - 298,500 113,576 Q1-16 - (75,000) (233,700) - 309,243

- 20,300,033

Q4-15 - (75,000) (215,780) - 307,400 41,200 - 19,840,728 Q3-15 4,351,559 (75,000) (179,816) - 139,100 1,006,400 - 19,707,908

673,700 - 13,710,300 Q2-15 - (75,000) (161,835) - 151,200 691,000 Q1-15 - (75,000) (148,300) - 97,200

- 14,390,665

Q4-14 - (75,000) (134,900) - 154,100 457,700 - 13,087,700 Q3-14 - (136,200) (130,400) - 55,200 480,200 - 12,610,800

407,300 - 11,394,100 Q2-14 3,002,900 (37,100) (2,769,172) - 75,272 502,700 Q1-14 - (242,700) - - (25,800)

- 12,205,800

Q4-13 428,900 (1,600) - (122,200) 250,000 (1,163,100) 910,200 11,012,600 Q3-13 - (211,700) - - (460,200) 502,900 - 10,708,800

82,000 - 9,261,100 Q2-13 - (368,800) - - (155,900) 1,560,900 Q1-13 5,406,900 (88,100) - - 170,200

- 10,666,100

Q4-12 3,604,600 (186,300) - (100,000) (161,900) 259,300 - 3,602,000

Colony Realty Partners IVInvestment Activity Statement






Equity Multiple:

Since Inception


2.6% 2.7% 5.4% -0.7% 6.7%


Five-Year 2.2% 3.8% 6.2% 2.7% 11.7%

-1.9%

11.4%Two-Year -3.7% 4.1% 0.5% -3.8% 9.9%Three-Year 0.7% -1.4% -0.4% -3.7%

8.0%One-Year -0.1%

1.7%Year-to-Date 0.5% -6.9% -6.4% -7.8% 3.5%Quarter -0.2% -9.6% -9.8% -9.4%

3.0%


2.9%


Greenfield Acquisition VSummary of Performance



15.0% $30,000,000$55,040,597 $420,000$36,392,663 $29,580,00033.9% $39,691,138Invest in urban redevelopment, undervalued or distressed real estate and real estate in need of market repositioning.

8.5%1.37

11/2011 3.0%11/2017 0.3%6 4/2008

2/2007 $873,424

Greenfield Acquisition Partners VPartner/Manager: Greenfield Partners

Limited Partnership Opportunistic

East 75%

West 7%

US Not Allocated

18% Office 21%

Resid'l 46%

Mixed Use 33%

Private Equity 100%




(1,366,260) 11,393,066


Total 29,580,000 (4,791,280) (29,199,547) (10,491,591) 957,756 116,444 873,424

(400,804) 437,612 1,119,344 Q2-17 - 4,515 (51,600) (92,400) (23,485) (194,879) Q1-17 - (28,655) (220,440) (355,560) (11,446) Q4-16 - (65,292) (463,176) (115,224) (39,329) 879,000 (693,476) 1,669,982 Q3-16 - (7,640) (72,000) - (14,079) (21,392) 21,691 2,102,187

(1,163) 22,663 3,468,105 Q2-16 - (12,487) (310,920) (778,440) (55,913) (842,067) Q1-16 - (53,011) (540,628) (39,750) (20,721)

707,202 2,187,967

Q4-15 - (8,016) (236,820) (123,180) (543,378) 576,690 (239,848) 4,047,704 Q3-15 - (129,420) (636,600) (1,388,400) 98,758 (895,103) 1,131,106 4,614,240

(30,456) - 7,934,749 Q2-15 - 110,228 (525,363) (449,637) 133,071 (1,336,682) Q1-15 - (90,496) (108,000) (252,000) 203,657

548,341 6,304,479

Q4-14 - (82,939) (915,000) (1,245,000) 146,497 (129,370) 84,092 8,121,548 Q3-14 - (84,741) (2,139,000) (651,000) 65,881 (1,325,349) 1,451,969 10,180,329

(49,108) 101,346 19,473,609 Q2-14 - (79,532) (3,579,000) (3,321,000) 72,331 (3,401,847) Q1-14 - (63,035) - (240,000) 31,677

3,533,735 12,777,828

Q4-13 - (395,769) (9,801,000) - 157,052 (2,642,759) 3,919,804 19,629,694 Q3-13 - (348,017) (2,730,000) - 342,127 1,018,392 649 27,996,597

46,935 - 30,069,023 Q2-13 - (501,324) (2,700,000) - 267,076 753,485 Q1-13 - (62,865) - (300,000) 186,121

975,845 29,365,429

Q4-12 - (350,739) (360,000) - 415,129 1,227,869 (268,395) 30,135,967 Q3-12 720,000 (39,142) - - 79,833 71,598 - 29,121,364

237,595 (165,728) 27,366,707 Q2-12 480,000 (184,075) (150,000) (150,000) 337,373 660,561 Q1-12 1,650,000 (39,984) - - 68,075

(294,708) 28,249,933

Q4-11 4,800,000 (173,905) (60,000) (990,000) 94,513 1,735,779 (12,025) 25,576,765 Q3-11 - (112,500) (3,600,000) - 64,498 (249,598) 261,967 20,008,498

127,599 (127,981) 19,216,793 Q2-11 3,150,000 (112,500) - - 1,278 1,163,560 Q1-11 1,050,000 (112,500) - - (84,817)

- 23,531,631

Q4-10 - (112,500) - - (68,207) 3,013,046 (137,247) 18,251,992 Q3-10 600,000 (112,500) - - 21,376 668 119 15,444,400

(32,749) - 12,667,979 Q2-10 750,000 (112,500) - - (39,483) 1,443,741 Q1-10 3,750,000 (112,500) - - (5,074)

- 14,822,237

Q4-09 3,000,000 (112,500) - - (151,819) (187,605) 230 8,955,802 Q3-09 450,000 (112,500) - - 90,833 (18,078) - 6,294,996

- 16,828 7,950,033 Q2-09 - (112,500) - - (58,805) (2,118,987) Q1-09 - (112,500) - - (81,450)

- 5,772,241

Q4-08 3,180,000 (112,500) - - (135,731) (682,643) - 8,014,655

831 2,539,913 Q3-08 3,000,000 (112,500) - - 113,116 - - Q2-08 3,000,000 (642,441) - - (698,779) 237,861

5,653,029

Greenfield Acquisition Partners VInvestment Activity Statement






Equity Multiple:

Since Inception



Five-Year 3.7% 11.4% 15.4% 11.8% 11.7%3.4% 11.3% 15.0% 11.1% 11.7%

8.6%


8.0%One-Year 2.2%


9.8%


12.2%


Greenfield Acquisition VISummary of Performance



15.0% $20,000,000$308,434,332 $2,813,680$128,140,467 $24,119,74158.5% $27,602,857Invest in urban redevelopment, undervalued or distressed real estate and real estate in need of market repositioning.

13.1%1.39

4/2015 5.6%4/2020 1.7%11 1/2012

4/2011 $5,840,185

Greenfield Acquisition Partners VIPartner/Manager: Greenfield Partners


East 93%

Midwest 7%

Office 100%

Private Equity 100%




(699,267) 8,639,385


Total 24,119,741 (2,848,482) (18,480,833) (9,122,024) 1,383,183 898,091 5,840,185

(443,878) 447,738 9,079,569 Q2-17 - (89,441) (2,262,858) (1,185,037) (12,020) (677,560) Q1-17 - (22,681) (744,880) (440,157) (7,553) Q4-16 - (142,760) (208,792) - 6,135 361,054 108,546 10,268,299 Q3-16 - (41,059) (440,157) (349,868) 48,453 (422,115) 447,933 10,001,356

(1,149,050) 1,172,735 12,795,959 Q2-16 - 87,633 (1,254,809) (381,671) 41,490 (874,885) Q1-16 - (50,902) (1,582,687) (1,030,039) 109,602

391,026 10,717,110

Q4-15 - (129,790) (1,156,822) (349,868) 52,782 34,603 394,131 15,275,398 Q3-15 - (97,905) (1,873,488) (2,595,796) 203,333 (2,400,540) 2,563,045 16,300,572

(264,271) 230,250 21,794,365 Q2-15 - (360,269) (1,619,551) (1,173,751) 216,811 (4,158) Q1-15 - 2,231 (643,306) (214,435) (4,529)

1,190,302 20,404,018

Q4-14 - (371,564) (411,942) (152,362) 41,335 1,252,635 229,559 22,690,656 Q3-14 677,164 (52,806) (45,144) (293,438) 155,136 2,619 29,859 21,731,431

7,346 (39,812) 20,148,497 Q2-14 620,734 (437,512) (450,878) (508,437) 181,319 772,403 Q1-14 - (11,715) (146,719) (304,724) 106,448

441,597 21,205,235

Q4-13 1,636,480 (361,764) - - 171,152 1,303,040 2,342 20,525,958 Q3-13 4,796,580 (60,132) (705,379) - 86,377 (18,790) 77,994 17,412,944

9,169 - 13,264,985 Q2-13 - (144,883) (695,625) (27,114) 27,352 552,515 Q1-13 2,992,854 (51,365) - - 140,731

54,049 13,176,162

Q4-12 1,321,237 (202,154) (2,072,382) (69,998) 68,162 923,881 - 10,122,231 Q3-12 3,303,093 (62,156) (55,497) (505) 6,937 - - 9,951,331

31,923 - 8,001,026 Q2-12 434,757 (59,734) (2,109,917) (44,824) 111,469 304,792 Q1-12 8,336,842 (187,755) - - (367,739)

- 6,697,303

Greenfield Acquisition Partners VIInvestment Activity Statement






Equity Multiple:

Since Inception


5.5% 13.6% 19.8% 12.3% 11.4%



14.2%


8.0%One-Year 4.2%


13.7%


18.3%


Greenfield Acquisition VIISummary of Performance



13.0% $19,122,340$872,665,458 $6,522,340$366,034,222 $14,050,00058.1% $1,472,939Invest in suburban office and industrial properties in markets with situational opportunities and in university student housing.

15.6%1.35

6/2018 5.0%6/2023 5.2%28 9/2014

12/2013 $17,553,046

Greenfield Acquisition Partners VIIPartner/Manager: Greenfield Partners


East 31%

Midwest 17%

South 47%

West 5%

Office 44%

Industrial 26%

Resid'l 7%

Hotel 8%

Other 15%

Private Equity 87%

Private Debt 13%




2,503,302 1,744,863


Total 14,050,000 (1,764,377) (1,110,000) (362,939) 727,820 974,189 17,553,046

40,893 (28,475) 17,789,812 Q2-17 - (318,137) (1,110,000) (340,000) 100,336 138,709 Q1-17 - (37,253) - - 79,304 Q4-16 1,125,000 (242,541) - - 88,913 628,142 184,089 17,698,090 Q3-16 1,975,000 (44,190) - - 120,604 (65,598) 30,356 15,671,946

(215,443) 263,440 13,025,718 Q2-16 - (174,550) - - 48,566 498,029 Q1-16 250,000 (58,857) - - 72,587

39,271 13,611,584

Q4-15 600,000 (230,710) - - 1,059 556,869 284,728 12,655,134 Q3-15 - (204,858) - - 267,769 (129,539) (5,157) 11,212,478

(1,927) 2,422 9,688,798 Q2-15 600,000 (159,078) - - (51,680) 842,287 Q1-15 - (57,048) - - 87,134

- 11,079,405

2,659,386 Q4-14 6,750,000 (80,242) - (4,839) 14,501 182,121 - 9,601,169 Q3-14 2,750,000 (156,913) - (18,100) (101,273) 28,759 -

Greenfield Acquisition Partners VIIInvestment Activity Statement






Equity Multiple:

Since Inception


3.9% 6.0% 10.0% 9.5% 9.5%


Five-Year 3.4% 6.1% 9.6% 9.1% 10.0%

0.7%


0.2%One-Year 3.5%


-2.2%


1.2%

(After Fees) Gross Total

Invesco US RESSummary of Performance


Gross Gross Gross Net Total NAREIT

9.0% $25,000,000$35,616,245 $0$35,616,245 $26,630,4720.0% $23,114,551Invest in the public equity REITs through well-diversified portfolios with exposure to major sectors of the U.S. market.

11.0%2.21

N/A 100.0%N/A 10.6%57 8/2004

8/2004 $35,616,245

Invesco US Real Estate SecuritiesPartner/Manager: Invesco Real Estate

Separate Account Core

East 34%

Midwest 11% South

23%

West 29%

US Not Allocated

3%

Office 10%

Industrial 7%

Retail 17%

Resid'l 18% Hotel

5%

Healthcare 8%

Timber 4%

Storage 5%

Other 25%

Public Equity 100%




2,166,845 19,476,739


Total 26,630,472 (1,674,992) (23,114,551) - 10,456,740 62,528 35,616,245

252,822 361,543 34,802,350 Q2-17 43,503 (44,520) - - 254,053 453,811 Q1-17 42,377 (43,503) - - 243,816 Q4-16 43,868 (42,377) - - 255,445 (1,462,497) (29,720) 33,901,792 Q3-16 43,992 (43,868) - - 270,093 (1,188,205) 775,505 35,094,696

760,347 524,097 33,210,617 Q2-16 41,513 (43,992) - - 236,250 491,337 Q1-16 39,586 (41,513) - - 217,486

1,213,595 35,193,312

Q4-15 37,141 (39,586) - - 281,423 551,633 1,085,779 31,669,100 Q3-15 36,312 (37,141) - - 217,815 (160,496) 569,992 29,713,123

325,172 595,299 31,974,601 Q2-15 39,968 (36,312) - - 127,525 (3,938,113) Q1-15 38,529 (39,968) - - 192,161

845,521 29,049,501

Q4-14 34,020 (38,529) - - 245,927 3,165,844 161,338 30,823,440 Q3-14 34,729 (34,020) - - 183,187 (944,873) 159,801 27,216,311

1,892,383 (18,942) 25,823,810 Q2-14 32,280 (34,729) - - 179,615 1,446,307 Q1-14 29,689 (32,280) - - 169,613

301,453 27,783,466

Q4-13 29,745 (29,689) - - 198,791 (284,434) 11,360 23,751,067 Q3-13 34,285 (29,745) (3,000,000) - 169,758 (1,731,973) 895,755 23,795,605

80,588 1,573,707 27,924,570 Q2-13 34,906 (34,285) - - 188,986 (1,746,775) Q1-13 36,340 (34,906) (3,000,000) - 161,839

1,026,093 27,427,781

Q4-12 35,468 (36,340) - - 217,132 17,581 427,520 29,072,096 Q3-12 35,113 (35,468) - - 176,797 (643,899) 715,612 28,374,395

1,572,313 768,570 27,183,753 Q2-12 33,980 (35,113) - - 166,439 (39,021) Q1-12 30,799 (33,980) - - 172,837

745,622 28,090,772

Q4-11 26,567 (30,799) - - 202,291 3,085,759 70,943 24,639,234 Q3-11 31,151 (26,567) - - 162,494 (4,278,778) 418,132 21,253,674

540,999 737,636 23,957,292 Q2-11 29,947 (31,151) - - 158,445 440,147 Q1-11 28,121 (29,947) - - 153,676

334,845 24,920,675

Q4-10 26,430 (28,121) - - 179,580 394,540 752,466 22,496,860 Q3-10 23,314 (26,430) - - 159,319 2,138,466 171,536 21,143,845

1,007,476 279,324 19,558,668 Q2-10 24,448 (23,314) - - 147,367 (1,561,200) Q1-10 22,614 (24,448) - - 156,879

481,927 18,651,209

Q4-09 20,641 (22,614) - - 171,676 1,557,608 (170,714) 18,092,374 Q3-09 15,614 (20,641) - - 159,369 3,896,861 (50,070) 16,513,162

(2,560,679) (1,589,169) 9,898,573 Q2-09 12,373 (15,614) - - 171,271 3,355,076 Q1-09 17,321 (12,373) - - 172,467

(945,907) 12,491,387

Q4-08 26,748 (17,321) - - 210,270 (5,484,274) (2,292,768) 13,858,633 Q3-08 25,666 (26,748) - - 209,749 1,301,943 (671,628) 21,398,657

482,505 (111,390) 21,611,331 Q2-08 27,014 (25,666) - - 210,897 (1,324,688) Q1-08 26,266 (27,014) - - 201,015

8,372 20,532,927

Q4-07 30,157 (26,266) - - 250,802 (3,929,391) 535,804 21,012,935 Q3-07 28,871 (30,157) - - 183,687 499,139 316,950 24,125,563

(262,688) 1,471,244 43,123,391 Q2-07 53,904 (28,871) (17,114,551) - 252,508 (7,589,606) Q1-07 51,941 (53,904) - - 279,398

4,371,270 23,096,917

Q4-06 47,106 (51,941) - - 399,414 2,830,406 621,665 41,583,496 Q3-06 43,402 (47,106) - - 256,606 1,772,633 890,363 37,684,905

3,816,790 329,508 34,614,705 Q2-06 43,268 (43,402) - - 263,538 (505,527) Q1-06 37,735 (43,268) - - 242,626

305,916 34,721,901

Q4-05 36,265 (37,735) - - 280,786 812,725 46,056 30,188,047 Q3-05 6,277,100 (36,265) - - 277,640 551,133 226,095 29,012,216

(1,218,856) 19,786 13,151,577 Q2-05 6,266,439 (27,100) - - 155,883 2,064,060 Q1-05 17,773 (16,439) - - 114,472

42,288 21,680,247

6,568,010 Q4-04 6,254,128 (17,773) - - 115,318 1,227,305 53,640 14,218,401 Q3-04 6,250,000 (4,128) - - 30,310 237,109 50,591

Invesco US Real Estate SecuritiesInvestment Activity Statement






Equity Multiple:

Since Inception


N/M N/M N/M N/M N/A


Five-Year N/M N/M N/M N/M N/A

N/M

N/ATwo-Year N/M N/M N/M N/M N/AThree-Year N/M N/M N/M N/M

N/AOne-Year N/M

N/AYear-to-Date N/M N/M N/M N/M N/AQuarter N/M N/M N/M N/M

N/M


N/M


Legacy Partners Realty IISummary of Performance



13.0% $15,000,000$33,751,047 $0$23,422,125 $15,000,00030.6% $404,054Invest in office and industrial properties which may require lease-up emphasis and renovation or rehabilitation.

-33.0%0.03

10/2009 3.3%12/2015 0.0%2 11/2006

4/2006 $1,000

Legacy Partners Realty Fund IIPartner/Manager: Legacy Partners

Limited Liability Company Value

West 100%

Office 67%

Land 33%

Private Equity 100%




(7,481,683) -


Total 15,000,000 (1,570,980) (404,054) - (7,113,263) - 1,000

(9,354) - 1,000 Q2-17 - (1,093) - - (106,224) 106,224 Q1-17 - (1,081) - - 9,354 Q4-16 - (2,347) - - 44,586 (44,586) - 1,000 Q3-16 - (3,456) (404,054) - 31,393 372,661 - 1,000

599 - 1,000 Q2-16 - (5,639) - - (1,051,505) 1,051,505 Q1-16 - (7,850) - - (599)

- 1,000

Q4-15 - (13,574) - - (275,418) 275,418 - 1,000 Q3-15 - (17,521) - - (201,433) 201,433 - 1,000

51,384 - 1,000 Q2-15 - (22,361) - - (194,733) 194,733 Q1-15 - (25,293) - - (51,384)

- 1,000

Q4-14 - (25,855) - - 107,847 (107,847) - 1,000 Q3-14 - (25,854) - - (206,694) 206,694 - 1,000

204,190 - 1,000 Q2-14 - (27,803) - - (258,985) 258,985 Q1-14 - (27,498) - - (204,190)

- 1,000

Q4-13 - (28,109) - - (598,156) 598,156 - 1,000 Q3-13 - (28,109) - - (204,114) 204,114 - 1,000

161,754 - 1,000 Q2-13 - (27,803) - - (209,773) 209,773 Q1-13 - (27,498) - - (161,754)

- 1,000

Q4-12 - (28,032) - - (118,683) 118,683 - 1,000 Q3-12 - (28,515) - - (2,252) 2,252 - 1,000

117,584 - 1,000 Q2-12 - (29,144) - - 112,192 (112,192) Q1-12 - (29,144) - - (117,584)

- 1,000

Q4-11 - (32,034) - - 211,269 (211,269) - 1,000 Q3-11 - (32,993) - - (858,765) 858,765 - 1,000

(82,363) - 1,000 Q2-11 - (39,111) - - (322,551) 322,551 Q1-11 - (42,562) - - 82,363

- 1,000

Q4-10 - (46,372) - - (65,669) 65,669 - 1,000 Q3-10 - (46,372) - - (75,649) 75,649 - 1,000

8,520 - 1,000 Q2-10 - (45,868) - - 18,885 (18,885) Q1-10 - (55,479) - - (8,520)

- 1,000

Q4-09 54,050 (56,712) - - (155,862) 101,812 - 1,000 Q3-09 - (56,712) - - (6,877) 6,877 - 1,000

(7,768,431) - 1,000 Q2-09 - (56,153) - - 14,832 (14,832) Q1-09 - (55,422) - - 18,090

- 1,000

Q4-08 1,411,862 (56,499) - - (193,349) (6,287,319) - 7,751,341 Q3-08 820,850 (59,319) - - (204,108) 56,106 - 12,820,147

80,089 - 13,298,713 Q2-08 985,023 (58,674) - - (186,297) (1,950,139) Q1-08 - (58,674) - - (333,146)

- 12,147,300

Q4-07 - (40,811) - - (368,774) 1,133,059 - 13,551,769 Q3-07 1,313,364 (56,712) - - (391,500) 253,903 - 12,787,484

(7,448) - 4,224,487 Q2-07 5,745,968 (56,096) - - (200,378) 1,841,640 Q1-07 - (55,479) - - (123,613)

- 11,611,717

Q4-06 4,668,883 (129,347) - - (305,537) (7,799) - 4,355,548

Legacy Partners Realty Fund IIInvestment Activity Statement






Equity Multiple:

Since InceptionFive-Year N/M N/M N/M N/M N/A

N/M N/M N/M N/M N/A

-2.7%

11.4%Two-Year 12.9% -26.1% -15.5% -16.4% 9.9%Three-Year 10.2% -18.5% -9.4% -10.7%

8.0%One-Year 18.1%


-19.3%


-2.7%


Legacy Partners Realty IIISummary of Performance



12.0% $20,000,000$4,816,402 $0$4,816,402 $18,798,1210.0% $10,442,637Invest in office and industrial properties which may require lease-up emphasis and renovation or rehabilitation.

-9.8%0.57

9/2011 4.5%2/2017 0.1%N/A 2/2008

9/2007 $221,261

Legacy Partners Realty Fund IIIPartner/Manager: Legacy Partners

Limited Liability Company Value



(8,687,039) -


Total 18,798,121 (2,052,578) (10,442,637) - 552,816 - 221,261

- - 215,634 Q2-17 - - - - 5,622 5 Q1-17 - - - - (4,522) Q4-16 - - (367,512) - 20,727 (37,359) - 220,156 Q3-16 - - (551,268) - 129,823 (132,198) - 604,300

(348,066) - 7,358,708 Q2-16 - (41,019) (6,434,883) - 242,713 (8,595) Q1-16 - (48,931) - - 113,462

- 1,157,943

Q4-15 - (50,198) - - 56,688 (3,109,051) - 7,593,312 Q3-15 - (50,198) - - 32,860 25,066 - 10,645,675

(18,604) - 10,460,396 Q2-15 - (49,652) - - 82,664 44,689 Q1-15 - (49,107) - - 95,479

- 10,587,749

Q4-14 - (50,198) - - 61,704 (107,405) - 10,383,521 Q3-14 - (50,198) - - 52,841 (310) - 10,429,222

(215) - 10,161,498 Q2-14 - (49,652) - - 67,460 147,733 Q1-14 - (49,107) - - 89,432

- 10,376,691

Q4-13 - (52,618) (965,265) - 216,902 1,389,141 - 10,072,281 Q3-13 - (53,847) - - (1,151) 6,714 - 9,431,503

- - 9,244,750 Q2-13 - (53,262) - - (80,122) 261,312 Q1-13 459,650 (51,567) - - 58,358

- 9,425,940

Q4-12 - (51,974) - - (24,696) 1,052,771 - 8,726,742 Q3-12 - (51,974) - - 56,525 7,641,142 - 7,698,667

991 - 1,000 Q2-12 - (51,409) - - 9,914 (9,914) Q1-12 - (51,409) - - (991)

- 1,000

Q4-11 - (52,117) - - (412,884) 412,884 - 1,000 Q3-11 3,447,375 (60,419) - - 13,181 (3,460,556) - 1,000

(39,773) - 1,000 Q2-11 - (63,220) - - (74,149) 74,149 Q1-11 - (62,525) - - 39,773

- 1,000

Q4-10 3,546,480 (65,203) - - (168,667) (3,318,102) - 1,000 Q3-10 - (66,781) - - (117,075) 23,688 - (58,711)

13,165 - 44,991 Q2-10 - (67,223) - - (116,952) 106,637 Q1-10 - (64,462) - - (97,008)

- 34,676

Q4-09 - (69,833) - - (420,761) 55,977 - 128,834 Q3-09 - (71,836) - - (168,092) (6,342) - 493,618

(34,128) - 3,677,168 Q2-09 - (71,055) - - (136,949) (2,872,167) Q1-09 - (70,274) - - 1,595,229

- 668,052

Q4-08 - (107,693) - - 459,224 (6,252,402) - 2,116,067 Q3-08 1,652,779 (50,632) - - (180,536) (17,949) - 7,909,245

(54,443) - 8,889,027 Q2-08 - (55,003) (2,123,709) - (194,843) (115,524) Q1-08 9,691,837 (147,983) - - (748,367)

- 6,454,951

Legacy Partners Realty Fund IIIInvestment Activity Statement






Equity Multiple:

Since Inception


0.6% 0.2% -0.2% -5.6% 8.8%


Five-Year 9.6% 0.5% 10.1% 8.5% 11.7%

-7.0%

11.4%Two-Year 10.4% -5.0% 5.2% 3.8% 9.9%Three-Year 9.9% -2.1% 7.7% 6.2%

8.0%One-Year 11.2%

1.7%Year-to-Date 7.0% -7.1% -0.3% -0.9% 3.5%Quarter 4.2% -5.7% -1.5% -1.8%

-15.8%


-5.8%


Miller Global VSummary of Performance



16.0% $15,000,000$185,521,650 $0$99,442,808 $24,111,44846.4% $22,540,266Focus on Class A office and hotel properties primarily located in major markets throughout the U.S.

4.2%1.15

7/2011 5.2%6/2018 1.5%1 7/2005

12/2004 $5,143,584

Miller Global Fund VPartner/Manager: Miller Global Properties

Limited Liability Company Opportunistic

South 100%

Hotel 100%

Private Equity 100%




2,328,613 1,267,613


Total 24,111,448 (1,960,431) (9,646,545) (12,893,721) (23,824) - 5,143,584

(79,007) - 5,407,215 Q2-17 - (16,878) - (166,241) 207,461 (304,850) Q1-17 - (16,878) - (35,199) 127,512 Q4-16 - (18,753) - (86,043) 47,527 (155,360) - 5,393,909 Q3-16 - (18,753) - (123,233) 143,467 (398,571) 884 5,587,785

6,841 (1,034) 5,965,608 Q2-16 - (18,753) - (128,224) 159,492 (31,638) Q1-16 - (18,753) - (64,914) 118,571

- 5,965,238

Q4-15 - (21,862) - (1,377,930) 88,883 561,335 40,386 5,906,144 Q3-15 - (22,413) - (116,793) 126,197 (92,611) - 6,593,470

(43,383) - 6,519,277 Q2-15 - (22,413) - (207,543) 210,482 154,461 Q1-15 - (22,413) - (51,724) 164,141

- 6,676,677

Q4-14 - (25,077) - (120,358) (15,656) 1,615,379 (1,594,566) 6,450,243 Q3-14 - (26,409) - (153,829) 97,698 92,803 21,506 6,565,444

(197,270) - 6,708,340 Q2-14 - (26,409) - (710,431) 294,155 215,201 Q1-14 - (26,409) - - 69,769

- 6,507,266

Q4-13 - (27,746) - (1,758,620) 32,090 (399,313) 561,740 6,835,841 Q3-13 - (39,529) - (3,113,791) 236,421 (1,119,110) 999,905 8,399,944

(45,542) - 10,843,789 Q2-13 - (44,391) - - 230,146 322,584 Q1-13 - (44,391) - - 146,837

- 11,396,519

Q4-12 - (44,391) - - 27,117 626,803 - 10,742,494 Q3-12 - (44,391) - - 223,989 (105,606) - 10,088,574

449,754 - 9,316,050 Q2-12 - (48,387) - - 104,983 549,158 Q1-12 - (40,395) - - 139,248

- 9,970,191

Q4-11 - (40,395) - - 47,432 (133,355) - 8,727,048 Q3-11 53,512 (41,671) - - 261,236 - - 8,812,971

129,985 - 7,554,223 Q2-11 114,569 (44,003) - - 67,888 761,543 Q1-11 43,965 (43,649) - - 72,958

- 8,498,223

Q4-10 684,899 (42,040) - - 1,182 2,686,896 - 7,307,314 Q3-10 232,758 (40,367) - - 60,836 786,832 - 3,934,337

434,109 - 1,561,787 Q2-10 517,241 (39,024) - - 115,278 659,604 Q1-10 344,082 (37,471) - - (71,935)

- 2,853,910

Q4-09 74,252 (36,728) - - (83,257) (747,008) - 855,531 Q3-09 - (36,647) - - (13,279) - - 1,611,544

- - 4,633,613 Q2-09 - (36,647) - - (75,780) (2,933,009) Q1-09 1,368,447 (34,855) - - (167,870)

- 1,624,823

Q4-08 573,687 (30,373) - - (1,051,213) (977,064) - 3,433,036 Q3-08 624,158 (28,012) - - (153,990) (267,673) - 4,887,626

- - 4,796,243 Q2-08 453,647 (51,026) - - (188,271) (376,302) Q1-08 365,214 (56,250) - - (245,127)

(186) 4,685,130

Q4-07 938,375 (56,250) - - (299,774) (538,821) 719 4,676,157 Q3-07 829,655 (56,250) - (2,985,921) (359,705) - 767,729 4,575,658

- - 6,339,441 Q2-07 1,045,654 (56,250) - (1,382,583) (149,142) - Q1-07 586,034 (56,250) - (77,586) (233,416)

470,530 6,323,901

Q4-06 7,172,840 (56,250) (4,551,721) (232,758) (97,521) 1,220,817 - 6,064,409 Q3-06 386,741 (56,250) - - (62,369) - - 2,552,752

- - 1,633,456 Q2-06 647,844 (56,250) - - (52,920) - Q1-06 3,583,187 (56,250) (2,586,205) - (40,511)

- 2,228,380

300,569 Q4-05 1,396,551 (56,250) (931,034) - (89,101) - - 676,985 Q3-05 2,074,136 (179,229) (1,577,585) - (195,982) - -

Miller Global Fund VInvestment Activity Statement






Equity Multiple:

Since Inception


5.9% 1.1% 7.0% 2.1% 6.7%


Five-Year 8.5% 2.6% 11.3% 9.8% 11.7%

10.9%


8.0%One-Year 12.9%


-0.6%


12.3%


Miller Global VISummary of Performance



16.0% $30,000,000$383,357,684 $0$178,853,346 $21,245,72053.3% $15,329,901Focus on Class A office and hotel properties primarily located in major markets throughout the U.S.

7.7%1.49

12/2011 9.2%12/2017 4.9%4 2/2008

7/2007 $16,394,895

Miller Global Fund VIPartner/Manager: Miller Global Properties


East 17%

South 83%

Office 9% Resid'l

1%

Hotel 90%

Private Equity 100%




4,584,893 474,897


Total 21,245,720 (3,522,727) (125,712) (15,204,189) 5,419,287 - 16,394,895

33,233 - 16,180,722 Q2-17 - (50,392) - (349,617) 736,359 (172,569) Q1-17 - (50,392) - (80,712) 374,120 Q4-16 - (50,392) - (175,404) 216,000 (57,002) - 15,854,081 Q3-16 - (50,653) - (518,604) 436,334 100,662 - 15,870,487

40,460 1,040 16,194,071 Q2-16 - (50,710) - (312,134) 480,488 (510,329) Q1-16 - (50,610) - (277,338) 282,058

- 15,852,095

Q4-15 - (51,052) - (645,412) 195,134 249,606 (917) 16,147,851 Q3-15 - (51,200) - (332,108) 416,482 163,382 (38) 16,349,440

(348,588) 489,157 17,110,230 Q2-15 - (51,680) - (858,229) 435,454 (584,490) Q1-15 - (55,468) - (1,879,442) 424,753

(1,243) 16,101,722

Q4-14 - (55,675) - (397,524) 483,542 340,527 (52,568) 18,424,350 Q3-14 - (61,175) - (4,010,418) (28,217) 3,008,300 (2,084,954) 18,050,373

434,080 - 21,133,693 Q2-14 - (72,175) - (275,000) 163,030 143,939 Q1-14 - (72,175) - - 212,132

- 21,165,662

Q4-13 - (72,555) - (1,163,336) 74,708 (39,722) 491,136 20,487,481 Q3-13 - (74,531) - (1,834,326) 249,503 (557,312) 720,286 21,124,695

(115,277) - 22,721,715 Q2-13 - (74,938) - - 307,353 (1,138,250) Q1-13 - (74,938) - (68,750) 154,408

655,726 22,546,544

Q4-12 2,654,492 (112,500) - (36,667) 126,533 392,943 - 22,751,335 Q3-12 78,833 (112,500) - (1,439,167) 228,975 808,493 257,272 19,614,034

454,765 - 18,300,842 Q2-12 880,000 (112,500) - (45,833) 263,077 281,542 Q1-12 2,108,334 (112,500) - - 281,321

- 19,679,628

Q4-11 1,420,834 (112,500) - - 140,151 (603,308) - 15,456,421 Q3-11 834,167 (112,500) - - 140,123 - - 14,498,745

368,732 - 12,000,042 Q2-11 87,083 (112,500) - - (77,332) 1,514,661 Q1-11 - (112,500) - - 27,016

- 13,524,454

Q4-10 3,177,168 (112,500) - - (131,864) 1,695,416 - 11,604,294 Q3-10 776,417 (112,500) - - (74,905) - - 6,863,575

- - 6,346,103 Q2-10 110,000 (112,500) - (275,000) (19,041) - Q1-10 548,340 (112,500) - - (121,088)

- 6,162,062

Q4-09 504,460 (112,500) - (229,167) (86,109) 671,420 - 5,918,851 Q3-09 1,295,138 (112,500) - - (70,445) - - 5,058,248

- - 3,658,542 Q2-09 1,364,739 (112,500) - - (68,392) (1,121,336) Q1-09 421,667 (112,500) - - (40,350)

- 3,833,554

Q4-08 - (112,500) - - (133,560) (649,450) - 3,277,225 Q3-08 - (112,500) - - (117,130) (219,635) - 4,060,235

- - 4,034,972 Q2-08 458,334 (112,500) - - (96,305) - Q1-08 4,525,714 (314,516) (125,712) - (365,030)

- 4,397,000

Miller Global Fund VIInvestment Activity Statement






Equity Multiple:

Since Inception


0.7% 26.4% 27.6% 15.3% 11.5%



11.8%


8.0%One-Year 6.8%


16.9%


24.4%


Miller Global VIISummary of Performance



13.0% $15,000,000$182,562,223 $3,336,113$66,534,797 $16,299,17563.6% $16,653,957Focus on Class A office and hotel properties primarily located in major markets throughout the U.S.

16.8%1.25

6/2018 6.6%6/2021 1.1%4 12/2013

6/2012 $3,709,714

Miller Global Fund VIIPartner/Manager: Miller Global Properties


South 28%

West 72%

Office 100%

Private Equity 100%




270,487 4,842,907


Total 16,299,175 (2,732,172) (4,329,936) (12,324,021) (1,048,899) 1,144,965 3,709,714

96,143 (38,682) 5,734,548 Q2-17 65,982 (376,288) - (2,325,129) 29,440 (940,092) Q1-17 85,776 (45,722) - (121,738) 39,009 Q4-16 32,991 20,101 - (108,304) 26,404 (64,992) (16,018) 5,674,040 Q3-16 49,487 (83,410) - (228,590) 15,530 309,052 (64,695) 5,803,959

(562,851) 898,046 5,633,517 Q2-16 125,366 (66,418) - (75,880) (26,259) 67,764 Q1-16 2,177,406 (423,889) (1,204,171) (4,600,984) (29,169)

(1,333) 5,723,175

Q4-15 745,550 (283,872) - (527,144) (150,499) 149,639 174,243 8,955,240 Q3-15 2,025,647 (125,700) (1,214,068) (6,598) (54,897) 193,781 350 8,563,451

265,286 - 10,378,306 Q2-15 1,121,694 (286,649) - (4,266,971) (336,976) (2,022,848) Q1-15 65,982 (123,781) - - 58,754

2,746,031 7,619,236

Q4-14 112,216 (38,935) - - (48,388) (143,888) - 9,988,284 Q3-14 - (236,821) - (62,683) 301,385 765,709 - 10,068,344

291,452 - 8,359,254 Q2-14 - (257,038) - - 277,204 427,475 Q1-14 261,949 (56,250) (1,007,208) - (7,971)

- 9,063,933

Q4-13 9,429,129 (347,500) (904,489) - (1,142,466) 1,438,857 - 8,821,032

Miller Global Fund VIIInvestment Activity Statement






Equity Multiple:

Since Inception


4.8% 5.0% 10.1% 9.0% 9.1%



8.8%

N/ATwo-Year N/A N/A N/A N/A N/AThree-Year N/A N/A N/A N/A

8.0%One-Year 4.8%


4.8%


9.8%


Principal US PropertySummary of Performance



N/A $25,000,000$9,170,991,019 $0$7,052,757,345 $25,000,00023.1% $0Invest in a well-diversified portfolio reflecting overall performance of the U.S. commercial real estate market with a low to moderate risk profile.

10.6%1.15

N/A 0.4%N/A 8.5%140 10/2015

1/1982 $28,644,757

Principal US Property AccountPartner/Manager: Principal Real Estate Investors

Insurance Separate Account Core

East 23%

Midwest 7%

South 25%

West 45%

Office 42%

Industrial 23%

Retail 17%

Resid'l 16%

Hotel 1%

Land 1%

Private Equity 100%




2,057,425 -


Total 25,000,000 (408,845) - - 1,587,332 - 28,644,757

248,798 - 28,062,894 Q2-17 - (67,031) - - 258,695 323,168 Q1-17 - (65,022) - - 262,837 Q4-16 - (65,491) - - 242,164 432,346 - 27,551,259 Q3-16 5,000,000 (60,768) - - 236,063 256,429 - 26,876,748

174,107 - 20,905,917 Q2-16 - (52,513) - - 210,361 267,977 Q1-16 - (51,464) - - 203,153

- 21,384,256

Q4-15 20,000,000 (46,556) - - 174,059 354,599 - 20,528,658

Principal US Property AccountInvestment Activity Statement






Equity Multiple:

Since Inception


6.5% -1.4% 5.0% 3.2% 7.0%


Five-Year 5.6% 11.5% 17.6% 15.2% 11.7%

16.6%


8.0%One-Year 5.8%


13.5%


19.9%


Prologis Targeted US LogisticsSummary of Performance



9.0% $35,000,000$5,816,630,000 $0$4,416,553,000 $45,062,21624.1% $10,438,118Invest in logistics real estate assets in key U.S. Submarkets near airports, seaports and ground transportation hubs that are critical to trade.

3.2%1.28

N/A 1.1%N/A 14.0%182 7/2007

10/2004 $47,073,170

Prologis Targeted US Logistics FundPartner/Manager: Prologis

Limited Partnership Core

East 15%

Midwest 9%

South 24%

West 52%

Industrial 100%

Private Equity 100%




(2,360,037) -


Total 45,062,216 (5,316,866) - (10,438,118) 14,809,110 - 47,073,170

1,222,581 - 45,444,099 Q2-17 456,216 (376,439) - (375,903) 562,246 986,512 Q1-17 454,785 (325,259) - (456,216) 535,104 Q4-16 373,327 (422,425) - (454,785) 551,252 1,741,554 - 43,687,845 Q3-16 384,067 (116,992) - (373,327) 548,449 617,757 - 41,476,496

310,652 - 39,031,964 Q2-16 411,816 (128,311) - (384,067) 504,954 734,884 Q1-16 375,665 (39,347) - (411,816) 473,977

- 40,299,551

Q4-15 354,068 (272,086) - (375,665) 476,926 1,226,181 - 38,283,485 Q3-15 243,379 (145,420) - (354,068) 473,728 660,998 - 36,601,975

599,476 - 34,166,205 Q2-15 334,972 (203,734) - (243,379) 443,114 877,026 Q1-15 317,967 (113,642) - (334,972) 411,935

- 35,577,937

Q4-14 308,205 (296,278) - (317,967) 415,410 1,293,437 - 33,171,799 Q3-14 297,951 (97,688) - (308,205) 407,634 541,196 - 31,472,714

379,310 - 29,481,035 Q2-14 308,934 (151,422) - (297,951) 401,489 640,631 Q1-14 297,352 (73,395) - (308,934) 342,488

- 30,534,138

Q4-13 288,517 (184,185) - (297,352) 383,403 686,674 - 28,770,819 Q3-13 268,838 (130,975) - (288,517) 283,300 567,542 - 27,709,577

202,825 - 25,016,481 Q2-13 262,590 (349,690) - (268,838) 49,063 1,819,118 Q1-13 226,263 (54,059) - (262,590) 347,995

- 26,878,414

Q4-12 224,148 (93,490) - (226,263) 279,928 469,371 - 24,501,988 Q3-12 222,019 (69,942) - (224,148) 311,599 301,195 - 23,754,804

673,300 - 22,665,139 Q2-12 219,885 (50,225) - (222,019) 330,744 150,390 Q1-12 193,070 (132,591) - (219,885) 245,261

- 23,144,140

Q4-11 191,319 (66,056) - (193,070) 331,387 539,261 - 21,773,393 Q3-11 189,587 (51,549) - (191,319) 317,101 (173,623) - 20,904,497

615,076 - 19,494,857 Q2-11 187,779 (49,348) - (189,587) 299,550 970,151 Q1-11 159,011 (51,882) - (187,779) 300,637

- 20,762,750

Q4-10 157,556 (58,788) - (159,011) 340,795 1,207,104 - 18,607,912 Q3-10 155,994 (58,945) - (157,556) 321,244 1,165,284 - 17,061,468

(54,791) - 15,669,303 Q2-10 154,471 (60,254) - (155,994) 312,546 (403,823) Q1-10 - (63,383) - (154,471) 300,738

- 15,576,503

Q4-09 - (75,856) - - 365,454 (1,838,403) - 15,577,826 Q3-09 - (74,244) - - 392,107 (5,275,382) - 17,050,775

(726,128) - 24,472,583 Q2-09 - (82,959) - - 399,788 (2,938,321) Q1-09 230,940 (82,508) - - 401,007

- 21,934,050

Q4-08 406,380 (86,352) - (230,940) 443,536 (6,539,058) - 24,566,764 Q3-08 401,980 (82,347) - (406,380) 429,867 (6,667,449) - 30,486,846

475,045 - 35,904,677 Q2-08 397,578 (156,489) - (401,980) 300,863 527,689 Q1-08 385,303 (220,829) - (397,578) 228,217

- 36,728,827

20,317,741 Q4-07 15,220,284 (68,869) - (385,303) 382,396 (321,428) - 35,213,690 Q3-07 20,000,000 (98,613) - (220,284) 161,876 376,149 -

Prologis Targeted US Logistics FundInvestment Activity Statement






Equity Multiple:

Since Inception


4.4% 3.8% 8.3% 7.3% 8.1%



7.1%

N/ATwo-Year N/A N/A N/A N/A N/AThree-Year N/A N/A N/A N/A

8.0%One-Year 4.3%


3.7%


8.1%


RREEF America REIT IISummary of Performance



7.0% $45,000,000$11,902,534,180 $0$9,518,082,925 $45,000,00020.0% $1,246,515Attractive risk adjusted returns from a portfolio of modestly leveraged equity investments in income producing real estate.

9.5%1.08

N/A 0.5%N/A 14.0%98 4/2016

7/1998 $47,182,833

RREEF America REIT IIPartner/Manager: Deutsche Asset & Wealth Management

Private REIT Core

East 32%

Midwest 9%

South 16%

West 43%

Office 42%

Industrial 22%

Retail 22%

Resid'l 14%

Private Equity 100%




1,813,135 (2,180)


(1,246,515) 1,618,393 Total 45,000,000 (465,458) - 128 47,182,833

205,811 5,322 46,839,188

Q3-16 11,250,000 (81,329)

372,069 335,153 Q1-17 - (110,435) - (394,569) 363,704 Q2-17 - (111,026) - (363,705)

394,320 710,051 3,012 46,658,920 297,642 280,287 19,594

Q4-16 11,250,000 (108,933) - (297,260)

Q2-16 22,500,000 (53,736) - - - (190,981)

281,833

Ending Contributions Fees Capital Distributions Income Appreciation Gain Market Value

(30,237) 22,942,255 190,658 34,598,796

RREEF America REIT IIInvestment Activity Statement

Qtr. Gross Return of Net Unrealized Realized




Equity Multiple:

Since InceptionFive-Year 2.8% 4.9% 7.7% 6.5% 11.7%

N/M N/M N/M N/M N/A

-16.4%

11.4%Two-Year -0.2% -12.3% -12.5% -13.3% 9.9%Three-Year 1.5% -2.9% -1.5% -2.6%

8.0%One-Year -4.4%

1.7%Year-to-Date -3.7% 0.0% -3.7% -4.0% 3.5%Quarter -3.3% 0.0% -3.3% -3.3%

-11.6%


-15.7%


RREEF America REIT IIISummary of Performance



12.0% $25,000,000$15,895,428 $0$15,895,428 $29,260,9960.0% $22,970,787Diversified domestic properties with potential to generate higher income or appreciation.

-3.2%0.79

N/A 1.5%N/A 0.1%N/A 11/2004

3/2003 $233,255

RREEF America REIT IIIPartner/Manager: Deutsche Asset & Wealth Management

Real Estate Investment Trust Value



(10,479,445) 2,453,060


Total 29,260,996 (2,013,765) (21,830,052) (1,140,735) 1,969,430 - 233,255

- - 241,260 Q2-17 - - - - (8,005) - Q1-17 - (758) - - (1,802) Q4-16 - (945) - - (860) - - 243,062 Q3-16 - (2,901) (1,100,576) - (14,755) - (179,158) 243,923

- (124,500) 1,527,512 Q2-16 - (4,033) - - 10,900 - Q1-16 - (5,136) (513,602) - 21,393

- 1,538,411

Q4-15 - (7,275) (880,461) - 39,956 (18,975) (49,434) 2,144,221 Q3-15 - (13,185) (2,568,010) - 9,934 (308,715) (13,664) 3,053,134

(60,719) 157,812 7,592,388 Q2-15 - (18,557) (2,568,010) - 74,479 841,726 Q1-15 - (21,461) (953,832) - 92,258

(6,994) 5,933,589

Q4-14 - (62,545) (1,467,435) - 59,934 36,015 85,900 8,356,870 Q3-14 - (29,980) (366,859) - 93,797 244,060 166,095 9,642,456

254,819 4,550 11,013,180 Q2-14 - (49,345) (2,934,869) - 111,099 (141,488) Q1-14 - (32,875) (953,832) - 177,492

1,457,440 9,505,363

Q4-13 - (33,478) (366,859) - 154,003 82,912 85,734 11,530,152 Q3-13 - (33,445) (366,859) - 163,593 345,805 (7,166) 11,574,361

206,266 13,181 13,696,707 Q2-13 - (37,568) (2,934,869) - 83,960 506,712 Q1-13 - (39,537) (366,859) - 150,505

86,478 11,438,987

Q4-12 - (22,024) (366,859) - (37,002) 299,743 (10,438) 13,693,614 Q3-12 - (22,803) - - 70,280 833,167 73,423 13,808,170

597,085 237,008 11,828,868 Q2-12 - (22,505) - - (10,314) 984,444 Q1-12 - (23,090) - - (450,575)

28,302 12,831,300

Q4-11 - (24,911) - - (139,558) 164,956 99,398 11,445,349 Q3-11 - (26,631) - - (40,141) (258,244) 897,841 11,320,553

441,713 - 7,957,345 Q2-11 - (25,932) - - (45,621) 2,833,760 Q1-11 - (24,860) - - 72,208

(24,388) 10,721,097

Q4-10 - (24,705) - - (27,675) 3,264 (4,921) 7,443,425 Q3-10 - (27,405) - - (90,581) 7,821,984 (259,647) 7,472,756

(187,242) 45,760 1,000 Q2-10 - (27,543) - - 39,877 23,876 Q1-10 - (28,230) - - 141,482

(63,754) 1,000

Q4-09 - (29,458) - - 247,612 (277,935) 30,324 1,000 Q3-09 - (30,068) - - 59,892 (50,419) (9,474) 1,000

(19,717,015) - 1,000 Q2-09 - (31,973) - - 140,631 (140,630) Q1-09 - (70,505) - - 119,274

- 1,000

Q4-08 - (81,863) - - (65,795) (8,602,800) (16,365) 19,598,741 Q3-08 77,701 (90,486) - - 92,981 (2,822,163) (107,385) 28,283,701

(370,738) - 33,343,229 Q2-08 70,687 115,915 - (77,701) 346,611 (2,640,259) Q1-08 75,384 122,942 - (70,687) 232,305

- 31,042,567

Q4-07 409,718 20,980 (8,490) (66,893) 133,018 (14,106) (44,721) 33,476,966 Q3-07 54,434 (354,364) (221,480) (188,237) (294,705) 2,154,789 (70,987) 33,068,441

751,823 (11,640) 29,616,076 Q2-07 179,800 (238,560) - (54,434) (77,673) 1,970,859 Q1-07 7,594,140 (59,610) (96,239) (83,562) 104,524

- 31,634,627

Q4-06 2,694,124 (282,937) - (94,140) (121,873) 1,137,715 - 21,357,030 Q3-06 335,353 56,349 (2,632,068) (62,057) 172,904 28,462 - 17,741,204

509,977 - 11,978,785 Q2-06 7,567,774 (76,916) (161,984) (173,369) 93,211 605,744 Q1-06 91,959 (66,152) - (67,774) 36,790

(11,552) 19,898,609

Q4-05 39,759 (87,250) - (91,959) 21,268 397,784 - 11,407,834 Q3-05 4,176,551 (67,588) - (39,759) (4,264) 560,479 - 11,040,981

143,374 - 3,644,845 Q2-05 2,471,211 (33,804) - (18,551) 844 249,627 Q1-05 22,400 (22,681) - (29,211) 15,620

- 6,347,974

Q4-04 3,400,000 (12,075) - (22,400) 15,996 99,065 - 3,492,661

RREEF America REIT IIIInvestment Activity Statement






Equity Multiple:

Since InceptionFive-Year 0.8% 2.8% 3.5% 3.2% 11.7%

-0.2% 4.3% 4.1% 3.5% 7.0%

2.9%

11.4%Two-Year 2.5% 6.8% 9.4% 9.0% 9.9%Three-Year -1.3% 2.5% 1.0% 0.6%

8.0%One-Year 2.1%

1.7%Year-to-Date 6.4% 0.0% 6.4% 6.4% 3.5%Quarter -3.5% 0.0% -3.5% -3.5%

1.0%


3.1%


Sarofim Multifamily IISummary of Performance



16.0% $20,000,000$584,006 $0$584,006 $15,931,9560.0% $20,000,000Invest in the development of multifamily properties in the U.S.

4.7%1.27

11/2011 33.3%10/2016 0.1%N/A 10/2008

10/2008 $194,680

Sarofim Multifamily Fund IIPartner/Manager: Sarofim Realty Advisors




- 4,306,721


Total 15,931,956 (540,688) (15,428,793) (4,571,206) (43,998) - 194,680

- - 201,775 Q2-17 - - - - (7,095) - Q1-17 - - - - 18,794 Q4-16 - (307) (3,213,818) (286,182) (19,377) - - 182,981 Q3-16 - (4,040) - - (3,650) (187,409) 225,024 3,702,358

(34,754) - 3,863,169 Q2-16 - (3,984) - - 16,925 (211,701) Q1-16 - (4,006) - - 25,778

- 3,668,393

Q4-15 - (4,050) - - 18,473 (146,958) - 3,872,145 Q3-15 - (4,051) - - 26,197 798,062 - 4,000,630

(8,600) (16,566) 4,249,572 Q2-15 - (4,014) (601,339) (398,661) (73,202) - Q1-15 - (4,704) - - 10,744

- 3,176,371

Q4-14 - (4,808) - - (193,342) (208,640) - 4,263,994 Q3-14 - (9,235) (5,876,194) (3,790,472) (334,609) - (68,560) 4,665,976

(3,217,304) 3,068,002 14,588,236 Q2-14 - (12,081) - - 31,370 193,406 Q1-14 - (11,948) - - 61,384

(77,200) 14,735,812

Q4-13 - (12,214) - - 172,109 19,535 - 14,676,154 Q3-13 - (12,214) - - 218,455 694,736 - 14,484,510

(16,260) - 13,445,782 Q2-13 - (12,081) - - 140,744 (15,207) Q1-13 - (11,948) - - 108,139

- 13,571,319

Q4-12 - (18,265) (5,737,442) (95,891) 143,252 (1,129,015) 1,134,194 13,353,903 Q3-12 - (19,445) - - 247,942 300,054 - 19,038,805

(124,456) - 16,383,905 Q2-12 924,561 (18,309) - - 254,260 928,083 Q1-12 - (18,080) - - 190,293

- 18,490,809

Q4-11 792,838 (21,612) - - 259,467 144,772 - 16,318,068 Q3-11 - (25,000) - - 201,479 35,742 41,827 15,120,991

- - 14,184,392 Q2-11 505,180 (25,000) - - 152,371 - Q1-11 - (25,000) - - 211,193

- 14,841,943

Q4-10 159,150 (25,000) - - 136,535 2,575,520 - 13,973,199 Q3-10 - (25,000) - - (193,196) (10,204) - 11,101,994

- - 10,941,553 Q2-10 693,170 (25,000) - - (329,329) - Q1-10 - (25,000) - - (461,460)

- 11,305,394

Q4-09 - (25,000) - - (526,709) 293,684 - 11,403,013 Q3-09 - (25,000) - - (227,249) - - 11,636,038

- - 11,985,673 Q2-09 - (25,000) - - (122,386) - Q1-09 821,833 (25,000) - - (79,872)

- 11,863,287

Q4-08 12,035,224 (54,292) - - (118,426) (673,086) - 11,243,712

Sarofim Multifamily Fund IIInvestment Activity Statement






Equity Multiple:

Since Inception


2.1% -0.9% 1.1% -0.9% 7.9%


Five-Year 3.9% 5.7% 9.8% 8.3% 11.7%

-0.2%


8.0%One-Year 5.4%


-4.0%


1.2%


Walton Street RE VSummary of Performance



18.0% $30,000,000$835,522,428 $0$452,931,004 $30,000,00045.8% $15,671,733Diversified global value enhancement, value investing & event-driven investment by capital market or real estate fundamentals.

-2.5%0.81

6/2010 1.9%6/2017 2.5%14 8/2006

11/2005 $8,511,048

Walton Street Real Estate Fund VPartner/Manager: Walton Street


East 10% Midwest

2%

South 32%

West 24%

Asia 21%

Latin America

11%

Retail 2%

Resid'l 50%

Hotel 39%

Mixed Use 9%

Private Equity 100%




(1,353,189) (5,062,779)


Total 30,000,000 (3,078,756) (15,671,733) - 598,750 (182,609) 8,511,048

(499,047) 484,784 11,113,160 Q2-17 - (33,439) (2,649,538) - 341,588 (111,553) Q1-17 - (37,759) (375,821) - 59,512 Q4-16 - (42,816) (751,642) - (2,666) (395,728) 245,780 11,443,732 Q3-16 - (44,987) (1,127,463) - (27,779) (297,893) 355,252 12,347,988

(20,143) (17,552) 13,433,595 Q2-16 - (45,184) - - 40,036 (28,903) Q1-16 - (45,184) - - 259,295

1,143 13,445,871

Q4-15 - (45,184) - - 66,723 53,547 (13,453) 13,211,995 Q3-15 - (45,324) (469,776) - (112,924) 390,676 (95,023) 13,105,178

415,030 (138,887) 12,933,284 Q2-15 - (45,600) - - 32,866 429,822 Q1-15 - (45,600) - - 257,689

(3,747) 13,392,225

Q4-14 - (47,852) (2,067,015) - 43,848 (64,147) 669,036 12,399,452 Q3-14 - (50,934) (2,067,015) - (12,615) (125,375) 315,731 13,817,730

324,548 (57,815) 16,879,946 Q2-14 - (53,064) (1,465,702) - 73,091 (916,567) Q1-14 - (54,272) - - 294,522

1,136,236 15,707,004

Q4-13 - (54,600) (939,552) - 130,810 474,648 (215,982) 16,318,692 Q3-13 - (55,971) - - 64,072 903,163 (449,854) 16,868,768

125,115 (2,699) 17,602,121 Q2-13 - (59,232) (1,879,105) - (8,956) 543,545 Q1-13 - (88,329) - - 177,971

93,782 16,351,387

Q4-12 - (61,661) - - (5,567) 1,163,710 (316,807) 17,301,734 Q3-12 - (53,559) - - (102,036) 467,131 (149,827) 16,460,398

409,928 (361,544) 16,219,669 Q2-12 - (68,271) - - (12,482) 4,464,753 Q1-12 - (76,189) (939,552) - 130,752

(4,426,810) 16,245,130

Q4-11 - (82,078) (939,552) - 8,774 (47,024) 213,559 16,980,085 Q3-11 - (86,116) - - 161,248 54,489 113,919 17,744,328

197,422 (36,556) 16,852,658 Q2-11 - (87,383) - - 99,257 476,105 Q1-11 - (88,381) - - 99,718

(13,348) 17,414,672

Q4-10 - (91,526) - - (173,102) 3,542,191 (669,336) 16,592,074 Q3-10 - (95,336) - - (5,327) 516,932 20,850 13,892,321

1,454,091 (922,262) 12,309,052 Q2-10 - (95,336) - - (85) 527,278 Q1-10 - (95,082) - - 258,256

523,621 13,359,866

Q4-09 - (112,167) - - (52,090) 5,414,644 (1,007,891) 11,518,967 Q3-09 - (112,167) - - (176,330) (670,405) 26,950 7,164,304

(1,683,057) (113,072) 14,617,507 Q2-09 - (112,167) - - (57,377) (6,543,868) Q1-09 - (112,167) - - (295,067)

(32,173) 7,984,089

Q4-08 779,922 (110,641) - - (227,344) (7,830,601) (1,898) 16,708,703 Q3-08 1,409,329 (104,187) - - 99,793 (7,354,884) 6,845 23,988,624

(417,877) (41,015) 26,662,800 Q2-08 2,348,881 (95,303) - - (4,187) 820,047 Q1-08 2,818,657 (92,593) - - 239,773

- 29,827,541

Q4-07 - (84,912) - - (414,348) 1,925,247 (17,961) 24,063,262 Q3-07 - (84,912) - - (334,979) (226,241) 60,760 22,570,324

376,777 (8,770) 11,614,256 Q2-07 11,368,583 (65,886) - - 43,319 44,626 Q1-07 3,758,209 (40,416) - - (38,676)

- 23,070,784

4,392,459 Q4-06 2,818,657 (28,870) - - (116,276) 466,012 (34,136) 7,526,716 Q3-06 4,697,762 (46,119) - - (203,950) (101,353) -

Walton Street Real Estate Fund VInvestment Activity Statement






Equity Multiple:

Since Inception


-14.4% 2.0% -23.7% -31.3% 9.6%


Five-Year 3.2% 7.7% 11.1% 8.4% 11.7%

-2.4%


8.0%One-Year 2.8%


-2.6%


0.1%


Walton Street RE VISummary of Performance



18.0% $15,000,000$1,841,011,430 $0$865,433,436 $13,297,18053.0% $13,195,087Diversified global value enhancement, value investing & event-driven investment by capital market or real estate fundamentals.

9.3%1.50

3/2013 0.8%3/2021 2.0%23 4/2009

3/2009 $6,764,896

Walton Street Real Estate Fund VIPartner/Manager: Walton Street


East 61% Midwest

10%

South 9%

West 15%

Asia 2%

Latin America

3% Office 13%

Retail 6%

Resid'l 20%

Hotel 10% Land

4%

Mixed Use 4%

Gaming 38%

Other 5%

Private Equity 100%




(784,010) 7,392,893


Total 13,297,180 (2,154,961) (13,195,087) - 53,921 73,257 6,764,896

(2,544) 51,832 6,641,501 Q2-17 - 76,418 - - 84,685 (34,547) Q1-17 - 88,785 (460,333) - 43,670 Q4-16 - 161,897 - - 15,177 (137,559) 179,672 7,008,876 Q3-16 - (553,297) (694,042) - (46,049) (945,021) 506,883 6,951,586

(368,457) 145,306 9,025,651 Q2-16 - 354,178 (915,825) - 1,286 (249,847) Q1-16 - (390,285) (272,734) - 92,270

268,551 8,129,816

Q4-15 - 297,507 (1,404,624) - (30,070) (428,907) 828,978 9,429,266 Q3-15 - (25,908) (709,674) - 48,682 (794,670) 974,665 10,463,889

73,142 234,213 12,081,816 Q2-15 - (129,217) (1,515,180) - 73,094 (501,186) Q1-15 - (172,982) (1,796,472) - 44,041

806,342 10,944,886

Q4-14 - (135,970) (930,396) - 113,929 (1,128,404) 1,370,256 13,526,892 Q3-14 - 3,162 (1,007,929) - 102,971 (55,488) 243,933 14,101,507

176,025 554,356 15,200,689 Q2-14 - (185,026) (775,330) - 41,593 17,822 Q1-14 - (837,701) - - 74,724

333,246 14,818,020

Q4-13 - (48,419) - - 33,928 105,442 477,868 14,395,584 Q3-13 600,000 (47,977) - - 100,618 132,146 10,252 13,778,346

190,516 59,690 12,407,137 Q2-13 - (46,715) - - 71,752 382,419 Q1-13 - (54,093) - - 112,435

74,022 12,935,330

Q4-12 - (40,636) (682,291) - (41,504) 403,314 262,316 12,044,496 Q3-12 1,500,000 (41,373) - - 125,535 22,241 19,749 12,102,661

30,984 23,610 10,870,463 Q2-12 - (42,514) (557,130) - 170,249 944,335 Q1-12 2,250,000 (41,974) - - 129,121

(992,781) 10,435,136

Q4-11 - (39,308) (1,473,127) - (2,663) (149,876) 432,946 8,436,748 Q3-11 - (40,144) - - 21,916 (123,129) 171,875 9,629,468

418,589 30,419 7,210,707 Q2-11 2,250,000 (38,167) - - 6,774 89,254 Q1-11 - (30,143) - - 16,929

2,071 9,558,806

Q4-10 1,597,180 (28,180) - - (103,796) 2,144,211 19,958 6,744,770 Q3-10 - (25,341) - - (74,942) 153,474 42,792 3,087,217

81,235 - 1,104,254 Q2-10 1,200,000 (20,698) - - (111,405) 600,551 Q1-10 - (18,628) - - (138,641)

172,493 2,965,893

Q4-09 - (19,201) - - (158,997) (342,503) (9,907) 1,161,660

(6,780) 159,662 Q3-09 1,650,000 (14,182) - - (120,366) (47,039) 30,810 Q2-09 2,250,000 (68,829) - - (643,025) (1,440,533)

1,673,067

Walton Street Real Estate Fund VIInvestment Activity Statement




Notes:

Commercial Mortgage Portfolio

For Monitoring Purposes Only

Performance Data excluded from Total Real Estate Composite

The Commercial Mortgage Portfolios, transitioned to the Fixed Income AssetClass as of January 1, 2008, include characteristics of both fixed income and realestate. Therefore, both our investment and real estate consultants are monitoringvarious aspects of these investment vehicles.




Equity Multiple:

Since Inception


2/2012 $74,547,823

Doubleline Total Return Mortgage Backed SecuritiesPartner/Manager: Doubleline Capital

Separate Account Core

N/A $100,000,000$74,547,823 $0$74,547,823 $113,750,832

N/A 100.0%N/A N/A197 2/2012

0.0% $72,849,405Produce a total return in excess of Barclays' Capital U.S. Mortgage Backed Securities Index.

SJCERA Barclays US AggregateGross Gross Gross Net Total

6.6%1.30

Doubleline Total Return MBSSummary of Performance

(After Fees)

-0.9% 4.1% 3.7% 2.3%

Benchmark

-0.3%

1.5%Year-to-Date 5.0%


2.3%

One-Year 10.4% -5.0% 5.1% 4.3%

Quarter 2.4%


Three-Year 9.2% -3.5%

0.1% 2.5%

Two-Year 9.9% -4.1% 5.5%


Five-Year 8.6% -2.0% 6.5% 5.8% 2.2%8.4% -1.5% 6.8% 6.1% 2.4%

4.8%5.5% 4.8% 2.5%

2.8%

US Not Allocated

100% Other 100%

Public Debt 100%




Doubleline Total Return Mortgage Backed SecuritiesInvestment Activity Statement


Contributions Fees Capital Distributions Income Appreciation Gain Market ValueQ1-12 100,000,000 (114,461) - - 744,792 1,228,257 (124,926) 101,848,123

(752,712) 104,619,628 Q3-12 180,461 (187,301) - - 2,089,210 4,986,515 (691,225) Q2-12 114,461 (180,461) - - 2,105,390 1,304,366

111,184,590 Q4-12 187,301 (193,054) (1,867,246) - 2,000,101 1,863,624 (943,286) 112,425,084 Q1-13 193,054 (195,245) (1,809,322) - 1,883,621 895,948 (980,182) 112,608,203

(1,000,176) 109,204,293 Q3-13 191,499 (186,658) (1,781,716) - 1,817,322 (1,166,706) (860,420) Q2-13 195,245 (191,499) (1,892,730) - 1,822,768 (2,529,018)

107,404,272 Q4-13 186,658 (184,288) (1,653,440) - 1,740,644 (854,688) (579,663) 106,243,782 Q1-14 184,288 (185,148) (5,616,159) - 1,731,819 1,562,224 (476,112) 103,629,841

(463,123) 105,148,361 Q3-14 10,180,495 (181,754) (1,599,246) - 1,723,733 73,632 (446,109) Q2-14 185,148 (180,495) (1,629,546) - 1,739,574 1,686,467

115,080,866 Q4-14 181,754 (202,560) - - 1,897,216 1,086,437 (588,901) 117,657,372 Q1-15 202,560 (207,482) - - 2,034,911 1,148,279 (619,537) 120,423,585

(718,889) 119,499,859 Q3-15 208,400 (212,103) - - 2,359,885 1,275,862 (818,692) Q2-15 207,482 (208,400) - - 2,198,351 (2,610,671)

122,525,314 Q4-15 212,103 (214,429) - - 2,314,311 (1,964,189) (753,120) 122,334,419 Q1-16 214,429 (211,773) (45,000,000) - 2,330,635 (2,118,250) 1,687,852 79,449,084

136,387 70,938,313 Q3-16 138,580 (125,322) - - 1,760,247 (107,834) (445,764) Q2-16 211,773 (138,580) (10,000,000) - 2,043,984 (902,915)

72,283,541 Q4-16 125,322 (125,956) - - 1,675,898 (1,766,060) (699,218) 71,619,483 Q1-17 125,956 (123,863) - - 1,652,738

(591,539) 74,547,823 (25,637) (655,617) 72,716,923

Q2-17 123,863 (127,653) - - 1,646,802 651,774 - 41,313,950 3,717,417 (11,384,971)


Total 113,750,832 (3,878,484) (72,849,405)




Equity Multiple:

Since Inception


11/2012 $27,094,240

Mesa West Real Estate Income Fund IIIPartner/Manager: Mesa West Capital


12.0% $45,000,000$1,526,156,847 $19,307,929$456,050,506 $34,090,524

10/2017 6.0%10/2021 N/A39 9/2013

70.1% $14,139,629Originate and service first mortgage loans on middle-market, value-added and transitional commercial real estate assets.

SJCERAGross Gross Gross Net Total

8.7%1.21

Mesa West RE Income IIISummary of Performance


(After Fees)

0.4% 5.5% 4.4% 4.5%

Benchmark

Quarter 2.3%


9.0%Three-Year 12.2% -0.3%

0.2% 2.5% 2.0%

One-Year 10.9% 0.5% 11.4% 8.7% 9.0%


Two-Year 11.5% -0.2% 11.4% 9.0%11.9% 9.2%

4.5%

9.0%N/A N/A

9.0%12.6% -1.0% 11.5%


Five-Year N/A N/A N/A

East 37%

Midwest 7%

South 26%

West 30%

Office 59%

Retail 2%

Resid'l 30%

Hotel 9%

Private Debt 100%




Mesa West Real Estate Income Fund IIIInvestment Activity Statement



11,940,670 Q2-14 - (151,875) - (197,468)

Q3-13 3,733,690 (455,625) - - (273,272) 3,452,612 Q4-13 6,937,338 (151,875) (25,803) (82,098) (18,377) (206,610) (75) 10,056,987 Q1-14 1,830,022 (151,875) - (182,675) 93,416

- (7,806)

142,920 - (468) 12,023,003

Q3-14 8,013,821 (151,875) - (294,596) 331,917 (2,761) - 226,389 53,880

20,071,384 Q4-14 - (151,875) - (335,684) 526,780 (113,088) (467) 20,148,925 Q1-15 - (151,875) - (328,386) 458,060 51,433 - 20,330,032

(467) 25,234,618 Q3-15 - (151,875) - (411,129) 550,705 (51,904) - Q2-15 4,604,957 (151,875) - (405,841) 752,709 (46,772)

25,322,290 Q4-15 4,485,348 (151,875) - (436,690) 733,258 (54,849) (467) 30,048,890 Q1-16 4,485,348 (151,875) - (529,816) 840,890 (4,955) - 34,840,357

(467) 34,959,265 Q3-16 - (114,968) (2,392,186) (674,633) 791,078 87,831 - Q2-16 - (114,968) - (550,527) 797,273 (127,371)

32,771,355 Q4-16 - (338,747) (5,980,464) - 716,848 (280,250) (468) 27,227,021 Q1-17 - (135,811) - (895,281) 633,652

(467) 27,094,240 - - 26,965,392

Q2-17 - (134,305) - (416,352) 545,667 - (5,741,176) 7,706,993 (552,496) (11,152)


Total 34,090,524 (2,813,174) (8,398,453)




Equity Multiple:

Since Inception


7/1995 $99,172,991

Prima Mortgage Investment TrustPartner/Manager: Prima Capital Advisors

Limited Liability Company Core

10.0% $135,000,000$843,406,863 $0$843,406,863 $170,511,054

N/A 11.8%N/A N/A67 4/2008

0.0% $141,260,782Invest in first mortgages with superior risk adjusted prospects, senior debt securities and B/Mezzanine notes

SJCERA Barclays US AggregateGross Gross Gross Net Total

6.2%1.41

PRIMA Mortgage ITSummary of Performance


(After Fees)

0.3% 2.6% 2.5% 2.3%

Benchmark

Quarter 1.2%


2.8%Three-Year 5.0% -0.9%

0.2% 1.4% 1.3%

One-Year 4.7% -0.7% 3.9% 3.8% -0.3%


Two-Year 4.8% -1.3% 3.4% 3.3%4.0% 3.8%

5.0%

2.5%4.3% 2.2%

4.0%6.8% -1.5% 5.2%


Five-Year 5.2% -0.7% 4.5%

East 34%

Midwest 1%

South 1%

West 1%

US Not Allocated

63%

Office 25%

Industrial 6%

Retail 6%

Resid'l 8%

Other 55%

Public Debt 35%

Private Debt 65%




73,027,412 73,943,464

Prima Mortgage Investment TrustInvestment Activity Statement


Contributions Fees Capital Distributions Income Appreciation Gain Market ValueQ2-08 75,000,000 (34,689) (40,060) (490,375) 1,101,656 - Q3-08 - (65,217) (302,956) (1,023,768) 1,203,834 (889,838) 96,676

(1,627,757)

Q1-09 25,000,000 (75,280) (91,730) (1,570,414) 2,086,916 81,082,359

(138,667) - 106,368,464 Q4-08 25,000,000 (68,127) (647,816) (1,401,904) 1,492,291 (16,387,624) -

- 109,370,366 Q3-09 - (94,181) (378,601) (1,659,480) 2,589,505 5,129,407 -

3,332,620 Q2-09 - (92,571) (1,028,593) (1,930,646) 2,628,521 115,051,197

Q4-09 - (103,645) (622,626) (2,087,991) 2,763,579 1,334,016 (171,525) 116,266,650 Q1-10 - (103,011) - (1,845,690) 2,800,061 3,925,792 - 121,146,813

- 138,689,212 Q3-10 1,765,084 (127,534) - (1,765,084) 2,992,317 2,638,591 (12,991) Q2-10 11,435,998 (114,004) - (2,001,099) 3,436,414 4,671,086

144,307,129 Q4-10 2,147,785 (139,291) - (2,147,785) 4,716,965 (3,831,283) (317,547) 144,875,264 Q1-11 1,853,143 (142,158) - (1,853,143) 3,230,819 (436,224) (859,792) 146,810,067

44,255 150,369,821 Q3-11 1,620,844 (143,794) - (1,620,844) 1,620,170 (1,459,781) 450,306 Q2-11 2,378,546 (143,141) - (2,378,546) 2,485,644 1,029,855

150,980,515 Q4-11 1,753,719 (74,137) - (1,753,719) 1,243,435 802,507 (671,955) 152,354,502 Q1-12 1,710,545 (91,320) - (1,710,545) 1,858,880 1,349,203 314,589 155,877,174

134,498 159,456,500 Q3-12 2,403,397 (128,201) - (2,403,397) 2,606,667 1,557,138 (729,572) Q2-12 2,039,754 (117,149) - (2,039,754) 2,112,575 1,332,253

162,890,733 Q4-12 - (124,955) - (2,213,784) 2,375,433 (5,123,566) 4,775,518 162,704,336 Q1-13 - (109,018) - (2,128,690) 2,949,944 423,174 11,013 163,959,776

286,649 161,288,351 Q3-13 - (118,678) - (1,905,935) 1,703,831 1,409,180 (990,310) Q2-13 - (118,021) - (1,915,259) 2,457,993 (3,500,808)

161,505,117 Q4-13 - (66,485) - (943,619) 1,178,530 (806,431) 452,190 161,385,787 Q1-14 - (84,879) - (1,898,718) 2,328,484 1,540,589 (655,467) 162,700,675

(22,677) 130,434,467 Q3-14 1,855,808 (75,110) - (1,855,808) 1,741,300 (264,132) 13,210 Q2-14 - (76,775) (32,000,000) (2,055,973) 1,341,275 471,167

131,924,845 Q4-14 1,414,237 (84,004) - (1,414,237) 1,492,818 733,119 (32,756) 134,118,026 Q1-15 1,266,892 (86,874) - (1,266,892) 1,430,422 1,725,940 (722,948) 136,551,440

237,885 136,816,557 Q3-15 1,592,388 (86,165) - (1,593,399) 1,548,752 (873,479) 153,720 Q2-15 1,660,092 (93,285) - (1,660,092) 2,030,587 (2,003,355)

137,644,539 Q4-15 1,439,665 (81,760) - (1,438,654) 1,570,587 (1,064,188) (720,067) 137,431,882 Q1-16 1,933,403 (62,626) - (1,933,403) 2,085,222 (945,564) - 138,571,540

182,759 95,561,515 Q3-16 1,102,203 (46,485) - (1,102,203) 1,151,265 1,194,399 - Q2-16 1,210,754 (53,641) (45,000,000) (1,210,754) 1,058,594 748,622

97,907,179 Q4-16 1,062,910 (46,963) - (1,062,910) 1,004,869 (856,510) (1,321,533) 96,734,006 Q1-17 957,546 (25,519) - (957,546) 1,008,009

- 99,172,991 131,563 6,579 97,880,158

Q2-17 906,340 (35,021) - (906,340) 1,136,178 156,655 (61,148,400) 74,564,342 (4,572,330) (69,293)


Total 170,511,054 (3,333,717) (80,112,382)


MEMORANDUM

1

To: San Joaquin County Employees’ Retirement Association (“SJCERA”) Real Estate Committee (the “Committee”)

From: Courtland Partners, Ltd. ("Courtland") Date: October 20, 2017 Subject: Value-Added Real Estate Manager Presentations Courtland prepared this memo to provide the Committee with a brief refresher regarding the process that resulted in two managers presenting for potential allocations at the November 3rd meeting. Courtland and Staff explored and evaluated different concepts for SJCERA’s real estate program in late 2016 through February 2017. These efforts culminated in a February educational session with the SJCERA Board whereby SJCERA’s real estate objectives, the evolution of its real estate program, current policy, and current portfolio considerations were all discussed. The Board ultimately concluded that it wanted to continue along its current path. As a part of its annual strategic review of the SJCERA real estate portfolio, Courtland presented the 2017-2018 Implementation Plan (the “Plan”) to the Committee at its meeting on June 9th. Current market conditions, SJCERA portfolio needs, and current investment opportunities were all taken into consideration. The Plan recommended that SJCERA allocate up to $90 million in 2017 and 2018 with the ability to potentially utilize all this capital in the Value-Added sector, with an emphasis on investments that are targeting a solid current income. Two managers have been currently identified as candidates for allocation. Courtland believes that these represent excellent opportunities that fit well within SJCERA’s long-term strategic direction for its real estate program.

1. Almanac Realty Securities VIII (“ARS VIII”)- SJCERA is an existing investor with Almanac through its $30 million commitment to Almanac Realty Securities VI (“ARS VI”). ARS VI has been one of SJCERA’s top performers. Courtland believes that ARS VIII represents an attractive potential commitment for the following reasons: (i) ARS VIII’s attractive entity level investment strategy that is unique to the SJCERA portfolio; (ii) ARS VIII’s current income focus; (iii) Almanac’s track record; (iv) Almanac’s experienced, cohesive team; and (v) Almanac’s conservative investment approach with an emphasis on risk mitigation.

2. Stockbridge Value Fund III (“SVF III”)- SJCERA does not have an existing relationship with Stockbridge. Courtland believes that SVF III represents an attractive potential commitment for the following reasons: (i) SVF III’s tactical, flexible investment strategy with its focus on demographic-driven themes and markets; (ii) Stockbridge’s demonstrated sale discipline; (iii) Stockbridge’s track record; (iv) SVF III’s anticipated strong income return; and (v) SVF III’s attractive fee structure with no GP catch-up in its incentive fee. In addition, there exists the potential for a Courtland client discount on the management fee.

Courtland has prepared complete due diligence reports on both managers that are also included in the meeting materials. We will be happy to discuss any questions that the Committee may have regarding these opportunities at the November meeting.


San Joaquin County Employees' Retirement Association

Overview of Almanac Realty Investors, LLCNovember 3, 2017

i

DisclosureThis document is confidential and is intended solely for the information of the person to which it has been delivered by Almanac Realty Investors, LLC ("Almanac"). It is not to be reproduced ortransmitted, in whole or in part, by any means, to third parties, or to be used for any purpose other than monitoring or evaluating an investment in a Fund (as defined below), without the priorwritten consent of Almanac.

Each of the following is a “Fund”, and, together, the “Funds”: Almanac Realty Securities I, L.P., Almanac Realty Securities II, L.P., Almanac Realty Securities III, L.P., Almanac Realty SecuritiesIV, L.P., Almanac Realty Securities V, L.P., Almanac Realty Securities VI, L.P., Almanac Realty Securities Canada I, L.P., and Almanac Realty Securities VII, L.P.

Notwithstanding the foregoing, each intended recipient of this document (and each of the employees, representatives or other agents of such recipient) may disclose to any and all persons,without limitation of any kind, (i) the tax treatment and tax structure of the transactions contemplated by these materials and (ii) all materials of any kind (including opinions or other taxanalyses) that are provided to such recipient relating to such tax treatment and tax structure. For this purpose, the tax treatment of a transaction is the purported or claimed U.S. Federal incometax treatment of the transaction and the tax structure of a transaction is any fact that may be relevant to understanding the purported or claimed U.S. Federal income tax treatment of thetransaction.

The information contained herein is provided for informational purposes only, is not complete, and does not contain certain material information about the Funds, including important disclosuresrelating to conflicts of interest and risk factors associated with an investment in the Funds, and is subject to change without notice. This document is not intended to be, nor should it be construedor used as an offer to sell, or a solicitation of any offer to buy, interests in any Almanac Realty Securities fund. No offer or solicitation may be made prior to the delivery of a definitive privateplacement offering memorandum (the "Memorandum"). In the event of any conflict between information contained herein and information contained in the applicable Memorandum, theinformation in the Memorandum will control and supersede the information contained herein. The information contained herein does not take into account the particular investment objectives orfinancial circumstances of any specific person who may receive it. The information herein is not intended to provide, and should not be relied upon for, accounting, legal or tax advice orinvestment recommendations. You should make an independent investigation of the investment described herein, including consulting your tax, legal, accounting or other advisors about thematters discussed herein.

Each of the Funds is a closed-end private investment fund that has held its final closing. As a result, new subscriptions for interests in the referenced Funds are not being accepted. Investments ina Fund are speculative and involve a high degree of risk. Investments in a Fund and in vehicles similar to the Funds are suitable investments only for sophisticated investors (i) who do not requireimmediate liquidity for their investments and are able to bear the financial risks of their investment for an indefinite period of time, (ii) for whom such an investment does not constitute acomplete investment program and (iii) who fully understand, are willing to assume and who have the financial resources necessary to withstand, the risks involved in a specialized investmentprogram and to bear the potential loss of their entire investment. Further, such investments involve significant risks associated with the nature of the underlying investments. There will be nopublic market for the Fund interests, and an investment in the Fund is subject to significant restrictions on transferability and resale, including, without limitation, under the Securities Act of 1933,as amended, and the applicable laws of any country, state or other jurisdiction, pursuant to registration or exemption therefrom.

Almanac believes the information contained in this document to be reliable but does not warrant its accuracy or completeness. The estimates, investment strategies, and views expressed in thisdocument are based upon current market conditions and/or data and information provided by unaffiliated third parties and are subject to change without notice. Certain economic and marketinformation contained herein has been obtained from published sources prepared by other parties. While such sources are believed to be reliable, neither the Fund, Almanac, nor their respectiveaffiliates assume any responsibility for the accuracy or completeness of such information. Neither delivery of this document nor any statement herein should be taken to imply that anyinformation contained herein is correct as of any time subsequent to the date hereof.

No guarantee or representation is made that the Fund's investment program, including, without limitation, the Fund's investment objectives, diversification strategies, or risk monitoring goals,will be successful, and investment results may vary substantially over time. Investment losses may occur from time to time. Nothing herein is intended to imply that Almanac's investmentmethodology may be considered "conservative", "safe", "risk free" or "risk averse". PAST PERFORMANCE IS NOT INDICATIVE NOR A GUARANTEE OF FUTURE RESULTS. NO ASSURANCECAN BE MADE THAT PROFITS WILL BE ACHIEVED OR THAT SUBSTANTIAL LOSSES WILL NOT BE INCURRED.

Almanac Executive Summary

2

Almanac Executive Summary

Note: Please refer to the “Performance Notes” on pages 26-30 for important information regarding defined terms and performance calculations. Past performance is notindicative of future results, and there can be no assurance that any Almanac fund will achieve rates of return or portfolio diversification comparable to the ARSFund Series.

1. Includes ARS I-VII and not CARS I.

Almanac Realty Investors (“ARI”) Real estate investment manager founded in 1981 as Rothschild Realty Partner owned since 2007 Changed name from Rothschild Realty to Almanac Realty Investors, LLC in 2011 RAUM of $2.6 billion as of June 30, 2017 A focus on making investments in real estate companies (“entity-level,” “platform,” or “corporate” investments)

in both private and public markets

Almanac Realty Securities (“ARS”) Established Almanac Realty Securities (“ARS”) Fund Series in 1996 (formerly known as Five Arrows Realty

Securities) Focused investment mandate: private placements of debt and equity capital into private and public real estate

companies 21 years; seven funds; $4.2 billion committed for investments across more than 38 companies1

Attractive absolute, relative and risk-adjusted returns 12.9% net IRR1 since inception (1996): approximately half from current income, half from appreciation as of June

30, 2017

Almanac Realty Public Securities (“ARPS”) New strategy launched in May 2017 focused on investing in publicly traded real estate securities ARPS will leverage Almanac’s knowledge, experience, and infrastructure to capture opportunities that persist

in public markets

As of June 30, 2017 - Estimated Fair Value

Index Comparison1

Net Net DPI Citi BBFund (Investment Period) IRRs2 Multiples2 Ratio3 RMS4 NCREIF5 S&P 5006 Bond7

ARS I (1996-1998) 15.7% 2.3x 1.9 9.4% 9.9% 7.1% 7.3%ARS II (1998-1999) 14.3% 1.5x 1.5 14.9% 10.5% 0.0% 6.4%ARS III (1999-2001) 9.3% 1.4x 1.4 15.1% 10.2% 4.4% 7.3%ARS IV (2004-2007) 9.4% 1.5x 1.5 7.0% 7.0% 7.0% 7.8%ARS V (2007-2011) 11.6% 1.5x 1.4 11.2% 10.2% 12.8% 7.4%ARS VI (2011-2016) 16.2% 1.4x 0.7 11.8% 10.3% 14.9% 5.4%ARS VII (2015-2019) 10.8% 1.2x 0.1 7.4% 7.7% 13.5% 6.4%Total 12.9% 1.5x 1.2 11.2% 9.6% 7.5% 7.2%CARS I (2014-2016) 13.4% 1.4x 0.2 6.4% 9.2% 9.5% 4.7%

Almanac Funds Performance

3

Total LP distributions of $3.6 billion out of $3.1 billion invested by ARS I-VII 8

Sources: NCREIF, Bloomberg.Note: Please refer to the “Performance Notes” on pages 26-30 for corresponding footnotes and other important information regarding defined terms and performance

calculations. Past performance is not indicative of future results, and there can be no assurance that any Almanac fund will achieve rates of return or portfoliodiversification comparable to the ARS Fund Series. Performance information includes both realized and unrealized investments and the actual realized return ofunrealized investments may differ materially from the returns indicated herein.

LEGAL & COMPLIANCE, AND INVESTOR

RELATIONS

PUBLIC SECURITIES

4

Almanac Organizational Structure

4

Note: Years correspond to date of initial hiring by ARI, its predecessors and/or its affiliates. Senior advisors are consultants, not full-time employees, of Almanac Realty Investors, LLC.

Andrew M. Silberstein

Partner2009

John D. McGurk

Partner1981

Justin J.Hakimian

Partner2005

Matthew W. Kaplan

ManagingPartner

1990

D. Pike Aloian

Partner1988

Josh K. Overbay

Managing Director

2014

Jennifer M.CattierGeneral

Counsel & CCO2015

Matthew J. Wolpert

Portfolio Manager

2016

FINANCE & REPORTING

Henry C.HermsChief

Financial Officer

2012

Joseph M. Sacchetti

Controller2012

Michael A. Mitchell

Accounting Supervisor

2013

Jason A. Dumont

SeniorAccountant

2012

Vincent M. Parente

Accountant2015

Xiu Zheng

Tax Manager2016

Lisa Liu

Accountant2016

PARTNERS

INVESTMENTS

David K.Haltiner

Director2008

Kenny K.Moon

Director2009

Scott J.Peters

Director2007

Madeline K. Chiavini

Vice President

2013

Michael H. O’Neill

Vice President

2014

Matthew P. Marshall

Associate2015

SENIOR ADVISORS

Simon R.C.Wadsworth

SeniorAdvisor

2012

Gabrielle M. Porter

Associate2017

Sidney Kanell

Associate2017

Andrew Batinovich

SeniorAdvisor

2017

5

Almanac Core Investment Competencies

Evaluating Real Estate

Management Teams

Underwriting Corporate

Structures & Securities

Pricing of Investments & Valuation

Boards & Corporate

Governance

Risk Assessment & Mitigation

North American

Real Estate

6

Almanac Investment StrategiesFLAGSHIP / VALUE ADD

Almanac Realty Securities

Formed 1996 – ARS I-VII, CARS I

21 years; eight funds; $4.4 billion committed for investment across more than 39 companies

12.9% compounded annual Net IRR1 generated in ARS Fund Series since inception in 1996

Established, high quality companies Experienced management teams Growth oriented use of proceeds Structured / senior securities where possible Shared control Existing portfolio of assets typically contributed $100 - $250+ million investment size Additional investment opportunities:

Start up & early stage Control/take private, operating businesses,

financial/management distress

Note: All information as of date hereof unless otherwise noted. This is not intended to be an offer to sell, or a solicitation of any offer to buy, interests in any Almanac fund or product. Any such offer will only be made by means of a confidentialprivate offering memorandum or other similar document, which will contain material information (including certain risks of investing in the fund or product) not contained in this presentation and which would qualify in its entirety theinformation set forth in this presentation. Past performance is not indicative of future results, and there can be no assurance that any Almanac fund will achieve rates of return or portfolio diversification comparable to the ARS Fund Series.

1. As of 6/30/2017. Includes ARS I-VII and not CARS I. Please refer to the “Performance Notes” on pages 26-30 for important information regarding defined terms and performance calculations.2. Target returns are not a reliable indicator of future performance and no guarantee or assurance is given that such returns will be achieved or that an investment in the strategy will not result in a loss. Such target returns are based on

assumptions made by Almanac, which may differ materially from actual events or conditions, take into account anticipated use of leverage and assume the reinvestment of proceeds from asset liquidations, income, and other earnings.

PUBLIC SECURITIES

Almanac Realty Public Securities

2017 Formation

Value oriented long / short real estate securities strategy investing primarily in +/- 250 real estate companies publicly listed North America

Concentrated portfolio with 20 – 40 total long and short positions

Potential for long-only sleeves/SMA’s

LONG-TERM INVESTMENTS

Almanac Horizon Fund

Targeted 2017 Formation

Large portfolio of stabilized industrial and office assets Strong cash flow profile Opportunity for modest growth 20 year history with the Company 9-10% net annualized return target2

Almanac Realty Securities VI, L.P. (“ARS VI”)

8

As of 6/30/2017.Please refer to the “Performance Notes” on pages 43-47 for important information regarding defined terms and performance calculations. Past performance is not indicative of future results, and therecan be no assurance that any Almanac fund will achieve rates of return or portfolio diversification comparable to the ARS Fund Series.1. Total Commitment reflects the original commitment amount including accordions and sidecar participations. 2. Reflects ARS VI share of total commitment. 3. Fully realized. 4. Reflects final rateprior to redemption. 5. In May 2014, Nolan exercised its option to downsize the original total commitment to $85.0 million and ARS VI’s original commitment of $110.0 million to $74.8 million. Of the$74.8 million, Nolan drew $61.4 million and the remaining commitment was canceled and net settled. 6. In March 2016, Winter Total Commitment downsized to $55.0 million (ARS VI Commitment to$48.1 million) and remaining was cancelled on settlement. 7. Stock Appreciation Rights. 8. Almanac does not disclose projected return information for individual portfolio investments in publicly tradedcompanies. 9. 100% of REIT taxable income distributed annually. 10. In December 2014, Shaner Hospitality Finance commitment downsized to $3.0 million. 11. Increased from 7.75% in April 2016. 12.Investment terms provide for a minimum return of 16.0% Gross IRR. 12. As of 12/31/16

ARS VI Portfolio Company InvestmentsHRI

(Upsize)

Origination Date Dec-11 Jul-12 Mar-14 Oct-12 Jun-13 Apr-14 Jan-16

Property Type Office / R&D MultifamilyMix of Commercial

Types

Commercial Loans,

Multifamily, Office, Retail

HotelsHotels /

MultifamilyHotels /

Multifamily

Original Structure Convertible Debt Convertible DebtDebentures, Warrants,

Common Stock

Preferred Stock, Warrants, SARs7

Debentures, Common Stock

Convertible DebtNon-Convertible

Debt

Interest / Dividend Rate 8.5%4 8.5%4 7.5%4 / Varies 8.50% N/A / Varies9 8.5%11 8.5%11,12

Total Commitment1 $150.00 $125.05 $200.06 $100.00 $50.01 $150.00 $50.00

ARS VI Commitment2 $132.00 $110.05 $175.06 $100.00 $50.01 $121.90 $40.60

Initial Projected IRR 15.5-17.0% 15.5-17.5% 15.0-16.0% N/A8 17.0-19.0% 16.0-18.0% 16.00%

Current Projected IRR N/A N/A N/A N/A8 22.5-27.5%12 15.0-19.0%12 16.0%12

Expected Exit -- -- -- N/A8 18-Jun 21-Mar 21-Mar

% of Capital Returned 100% 100% 100% 19% 0% 0% 0%

ARS VI Net IRR

ARS VI Net Multiple

HRI

16.2%1.4x

($ in millions) Drawbridge3 Nolan3 Winter3 RAITShaner

Hospitality Finance

Almanac Realty Securities VII, L.P. (“ARS VII”)

10

ARS VII Portfolio Company Investments

As of 6/30/2017, pro forma for subsequent commitments.Please refer to the “Performance Notes” on pages 26-30 for important information regarding defined terms and performance calculations. Past performance is not indicative of future results, and there can be

no assurance that any Almanac fund will achieve rates of return or portfolio diversification comparable to the ARS Fund Series. 1. Investment terms provide for a minimum return: greater of 15.5% IRR or multiple of 1.65x.2. Investment terms provide for 10.0% interest rate, 6.0% of which must be paid current.3. 100% of REIT taxable income is distributed annually.4. Investment terms provide for 10.0% interest rate, 8.0% of which must be paid current in Years 1-3 and 9.0% thereafter.5. Additional capital which may be requested by the respective portfolio companies that is subject to approval by the ARS VII investment committee.6. Fully Realized.7. Values are as of 6/30/2017 and do not reflect final realized numbers.

ARS VII is approximately 86% committed (through Total Commitments and potential Accordions)

($ in millions) CA Student Living6 Mount Auburn Claros REIT Westcore Properties II Mount Auburn (Upsize) PREP Property Group

Origination Date 4/2015 4/2015 8/2015 9/2016 4/2017 6/2017

Property Type Student Housing Multifamily Mortgage REIT Industrial / Office Multifamily Retail

Original StructureNon-Convertible

Debentures, Profit Participation Units

Non-Convertible Debentures, Warrants, Convertible Preferred

Non-Convertible Debentures, Common

Equity


Equity

Convertible Preferred Equity


Equity

Interest / Dividend Rate 8.0%1 7.5% / 8.25% 10.0%2 / Varies 8.0% / Varies3 6.60% 10.0%4 / Varies3

Total Commitment $125.00 $150.00 $175.20 $270.00 $75.00 $200.00

Accordion5 -- -- -- $67.50 $75.00 $100.00

ARS VII Commitment $100.00 $134.20 $149.60 $222.10 $60.00 $189.70

Initial Projected IRR 17.0-19.0% 15.0-17.0% 15.0-16.0% 15.0-16.5% 16.5-18.5% 16.0-17.5%

Expected Exit - 4/21 8/22 9/24 2021 2025

% of Capital Returned 100% 0% 0% 0% 0% 0%

ARS VII Net IRR 10.8%

ARS VII Net Multiple 1.2x

Almanac Realty Securities VIII (“ARS VIII”)

12

Executive Summary: ARS VIII LaunchStrategy

Provide growth capital to private and public companies which own and operate real estate Concentrated portfolio with 6-8 portfolio company investments

Market Opportunity

Continuing consolidation and proliferation of real estate ownership in fully integrated corporate structures

Proven real estate entrepreneurs seeking strategic capital for continued growth

Process & Approach

Value-oriented and conservative underwriting with a focus on capital preservation Create an alignment of interest with company management through significant co-investment/asset

contribution requirements Oversight and governance exercised through active participation on board of directors

CompetitiveAdvantages

Almanac’s long track record of focusing exclusively on investing in real estate companies Reputation as both a significant financial partner as well as a provider of strategic intellectual capital Ability to size commitments ($100-500 million) based on the company’s size and pipeline opportunity

Target Size $1,500,000,000

Target Returns 12% Net IRR or greater; 1.5 - 1.75x Net Multiple1

Experience 21 years; eight funds; $4.4 billion committed for investment across more than 39 companies 12.9% Net IRR generated since inception2

Note: This information is not intended to be an offer to sell, or a solicitation of any offer to buy, interests in any Almanac sponsored fund. Any such offer will only be made by means of a confidential privateoffering memorandum or other similar document, which will contain material information (including certain risks of investing in the vehicle) not contained in this presentation and which would qualify in itsentirety the information set forth in this presentation.

1. Target returns are not a reliable indicator of future performance and no guarantee or assurance is given that such returns will be achieved or that an investment in the strategy will not result in a loss. Suchtarget returns are based on assumptions made by Almanac, which may differ materially from actual events or conditions, take into account anticipated use of leverage and assume the reinvestment ofproceeds from asset liquidations, income, and other earnings.

2. As of 6/30/2017. Includes ARS I-VII and not CARS I. Please refer to the “Performance Notes” on pages 26-30 for important information regarding defined terms and performance calculations. Pastperformance is not indicative of future results, and there can be no assurance that ARS VIII will achieve rates of return or portfolio diversification comparable to the ARS Fund Series.

■ Seek to deliver attractive absolute, relative and risk adjusted returns

■ The ARS and CARS Fund Series target net annual returns of 12% or more and net investment multiple of 1.5x-1.75x1

■ Expect to derive approximately half of the total returns from current yield distributed quarterly

■ Seek to generate capital gains by growing a company’s equity value through acquiring, developing and/or repositioning real estate assets

■ Almanac seeks to protect capital through some or all of the following:

Conservative leverage levels

Cash flow generation – typically 6-9% gross current yield

Unsecured debt or preferred equity structures

Active governance and control provisions

Portfolio company senior management has significant equity/”skin in the game”

Mitigation or significant neutralization of the J-curve

13

ARS VIII Investment Objectives

1. There can be no assurance that any Fund will achieve its stated target returns. The target returns set forth herein have been established based on assumptions withrespect to market conditions and the expected structure of each investment and takes into consideration the investment experience of managing principals of Almanacin making investments utilizing investment strategies similar to those contemplated by the Funds. Target returns are based upon assumptions regarding future eventsand situations, however, investment conditions are dynamic and may change during the term of the Funds. As a result, the assumptions used to establish target returnsmay prove not to be accurate or not to materialize. Accordingly, the target returns set forth herein should not be used as a primary basis for an investor's decision toinvest in any Fund. Further, there can be no assurance that the investment objectives of any Fund will be achieved of that an investor will receive a return of its capital.

Almanac Realty Investors Conclusion

15

Conclusion

Note: Please refer to the “Performance Notes” on pages 26-30 for important information regarding defined terms and performance calculations. Past performance is not indicative of future results, and there can be no assurance that any Almanac fund will achieve rates of return or portfolio diversification comparable to the ARS Fund Series. (1) Includes ARS I-VII and CARS I. (2) Including sidecar participations. (3) As of 6/30/2017. Includes ARS I-VII and not CARS I. (4) As of 12/31/2016

Almanac Realty Investors 36 year-history of real estate investing Proven, stable, and experienced investment team Philosophy of putting investors first

Almanac Funds 8 funds; $4.4 billion committed for investment across more than 39 companies1

12.9% Net IRR to investors over 20 years in the ARS Fund Series3

ARS VI Funded $577.8 million2 to 6 companies, 3 of which have been fully realized Fund Net IRR expectation of 12.0- 14.0%4

Since inception, generated a Fund Net IRR of 16.2% and Fund Net Multiple of 1.4x

ARS VII Through 2017 YTD, ARS VII committed $995.2 million2 to 5 companies, 1 of which has been fully realized Fund Net IRR expectation in excess of 12.0%4

Since inception in April 2015, ARS VII has generated a Fund Net IRR of 10.8% and a Fund Net Multiple of 1.2x Pipeline remains active; ARS VII is 86% committed through primary commitments and potential accordions. With the

20% reserve for follow-on investments, ARS has additional capacity for 1 potential deal.

ARS VIII Launched September 2017

Appendix

17

Almanac Professional Biographies

Managing Partner

Matthew W. Kaplan

Matthew W. Kaplan, 54, Managing Partner. Mr. Kaplan joined Almanac in 1992 and is currently responsible for overseeing theactivities of Almanac and is the Portfolio Manager of the ARS Fund Series. From 1990 to 1992, he served in the Corporate FinanceDepartment of Rothschild Inc. Mr. Kaplan serves on the boards of Westcore Properties and Westcore Properties II. Mr. Kaplan hasalso served on the boards of Allegro Holdings, Ambassador Apartments Inc., CNL Financial Services, CNL Hospitality Properties,Encore Hospitality, Hallmark Holdings, National RV Communities, Parkway Properties, RXR Realty, Vanta Commercial Properties(formerly known as T. Wall Holdings), Winter Properties, and WNY Group. Mr. Kaplan is a member of NAREIT’s Real EstateInvestment Advisory Council. From 1988 to 1990, he was a management consultant at Touche Ross & Co. Mr. Kaplan graduatedcum laude from Washington University in 1984 and received an MBA from The Wharton School in 1988.

Partner

D. Pike Aloian

D. Pike Aloian, 62, Partner. Mr. Aloian joined Almanac in 1988 and is responsible for the origination, economic analysis, closing andon-going review of Almanac’s investments. From 1980-1988, he was a vice president at The Harlan Company, where he wasresponsible for property acquisition, development and financing. Mr. Aloian serves on the boards of EastGroup Properties, MerrittProperties, Metrogate LLC, Mount Auburn, and Shaner Hospitality Finance. Mr. Aloian has also served on the boards ofBrandywine Realty Trust (NYSE:BDN), BSR Trust (formerly known as Summit Housing Partners), CRT Properties (NYSE:CRO),Denholtz Holdings, Drawbridge Realty Trust, Morningstar Mini-Storage, Shaner Hotel Holdings, Shaner Mortgage REIT, andVictory Real Estate Investments. He has also served as an adjunct professor of the Columbia University Graduate School ofBusiness. Mr. Aloian graduated from Harvard College in 1976 and received an MBA from Columbia University in 1980.

Partner

Justin J. Hakimian

Justin J. Hakimian, 37, Partner. Mr. Hakimian joined Almanac in 2005 and is responsible for the origination, economic analysis,transaction execution, and ongoing review of Almanac’s investments. From July 2001 to April 2005, he was an Associate in theEquity Research department at Morgan Stanley, with coverage of oil & gas companies. Mr. Hakimian serves on the boards of CAStudent Living, HRIP Holdings and Vanta Commercial Properties (formerly known as T. Wall Holdings). Mr. Hakimian has alsoserved on the boards of Drawbridge Realty Trust and JH Real Estate. Mr. Hakimian graduated from the University at Albany inMay 2001 with a Bachelor of Science in Finance.

18


Chief Financial Officer

Henry C. Herms

Henry C. Herms, 50, Chief Financial Officer. Mr. Herms joined Almanac in 2012 and is responsible for the oversight of financial andinvestor reporting, tax compliance and structuring, treasury management and the performance measurement and reporting processesof Almanac and its funds. From 1997 to 2012, he was employed by Lazard Frères & Co., where he served in various roles, including asthe Controller and Treasurer of a manager of a series of real estate private equity and mezzanine debt funds, and as the Chief FinancialOfficer of one of the Lazard Funds’ portfolio companies. From 1989 to 1997, he was employed by Arthur Andersen LLP, where he wasresponsible for audit and consulting engagements primarily for real estate developers and operators, and real estate focusedinvestment funds. Mr. Herms graduated from Adelphi University in 1989 with a Bachelor of Business Administration in Accounting,magna cum laude. He is a CPA licensed in the state of New York, and a Chartered Global Management Accountant.

Partner


Andrew M. Silberstein, 49, Partner. Mr. Silberstein joined Almanac in 2009 and is responsible for the origination, structuring, andmanagement of Almanac’s investments. From 2004 to 2008, he served as the Chief Investment Officer and Chief Operating Officer forStoltz Real Estate and during the same period established AMS Real Estate Partners. From 1994 through 2004, Mr. Silberstein workedin real estate investment banking and private equity, first at Bear Stearns and then Morgan Stanley. Mr. Silberstein serves on theboards of the following companies: RAIT Financial Trust (NYSE:RAS), Claros Mortgage Trust, Slate Asset Management, WestcoreProperties and Westcore Properties II. He has also served on the boards of NRES Holdings, RXR Realty, Welsh Property Trust, WinterProperties and WPT Industrial Real Estate Investment Trust (TSX:WIR). He has been a member of National Association of Real EstateInvestment Managers, Urban Land Institute, International Council of Shopping Centers and the Real Estate Roundtable. Mr.Silberstein graduated from Yale University in 1989 and received an MBA in 1995 from New York University Stern School of Businesswhere he was a Glucksman Fellow.

Partner

John D. McGurk

John D. McGurk, 74, Partner. Mr. McGurk founded Rothschild Realty Inc., the predecessor to Almanac, in 1981. Mr. McGurk serves onthe boards of CA Student Living, Merritt Properties, Metrogate LLC, Shaner Hospitality Finance, Vanta Commercial Properties(formerly known as T. Wall Holdings), and Welshco Holdco, LLC. Mr. McGurk has also served on the boards of Allegro Holdings,Denholtz Holdings, JH Real Estate, Lexington Corporate Partners (NYSE:LXP), Shaner Hotel Holdings, and Welsh Property Trust. Heis a member of the National Association of Real Estate Investment Managers, the Urban Land Institute, and the Pension Real EstateAssociation. He graduated from Loyola University in 1965 and received an MBA from the University of Southern California in 1971.


19

Managing Director

Josh K. Overbay

Josh K. Overbay, 37, Managing Director. Mr. Overbay joined Almanac in 2014 and is responsible for leading the firm’s capital raisingand investor relations activities. From 2010 to 2014, he was a Director at Lazard Frères in the Private Fund Advisory Group, withspecific responsibility for advising and raising capital for real estate private equity fund managers. From 2007 to 2010, he was a VicePresident of Perseus Realty Partners, a Washington, DC, based real estate private equity firm, where he led the firm’s global capitalraising and investor relations activities. Previously, he worked in financial services public policy roles at the U.S. Chamber ofCommerce. Mr. Overbay graduated from Roanoke College in 2002, received a Masters in Legislative Affairs and Public Policy fromThe George Washington University in 2007, and a Masters in Real Estate from Georgetown University in 2010.

Director

David K. Haltiner

David K. Haltiner, 33, Director. Mr. Haltiner joined the predecessor to Almanac Realty Investors, Rothschild Realty Managers, in 2008and is responsible for analyzing, underwriting, structuring and managing investments. Mr. Haltiner serves on the boards of ClarosMortgage Trust and Westcore Properties II, and has also served on the board of Winter Properties. Prior to joining Almanac, Mr.Haltiner was an Analyst in the Real Estate Finance and Securitization Group of Credit Suisse. Mr. Haltiner graduated from theUniversity of Georgia with a Bachelor of Business Administration in Finance.

General Counsel & Chief Compliance Officer

Jennifer M. Cattier

Jennifer M. Cattier, 47, General Counsel & Chief Compliance Officer. Ms. Cattier joined Almanac in 2015 and is responsible forleading its legal and compliance activities. From 2013 to 2015, she was employed by Deutsche Bank AG, where she was Director &Senior Counsel, providing senior counsel to Deutsche Asset & Wealth Management’s alternative investments business and onvarious regulatory maters. From 2000 to 2013, she was employed by Morgan Stanley, where as a Director she held various roles inthe Legal and Compliance Department, including as senior counsel and as chief compliance officer for the Merchant Banking andReal Estate Investing businesses. From 1997-2000, she was an associate at Sullivan & Cromwell, LLP. Ms. Cattier graduated fromBrooklyn Law School in 1997, with a JD, summa cum laude, and from Trinity College in 1992. She is licensed to practice law in thestates of New York and Connecticut.

20


Director

Scott J. Peters

Scott J. Peters, 57, Director. Mr. Peters is responsible for overseeing the due diligence on potential investee companies and assistsmanagement teams of investees in the preparation of financial statements and management reports. Mr. Peters possesses more than28 years of commercial real estate financial and operational experience. Mr. Peters currently serves as a director of Slate AssetManagement. Prior to joining Almanac, Mr. Peters held the position of Executive Vice President of Asset Management forCombined Properties, Inc. Previously, he was the Executive Vice President and Chief Operating Officer of Charter Oak Group, Ltd.,a subsidiary of Rothschild Realty Inc. from 2000 to 2004. Concurrently, he was the Chief Financial Officer of Charter Oak Groupfrom 1990 to 2004. He is a Certified Public Accountant and graduated from the University of Wisconsin in 1982 with a Bachelor ofBusiness Administration.

Director

Kenny K. Moon

Kenny K. Moon, 34, Director. Mr. Moon joined Almanac in 2009 and is responsible for securities and sector analysis, valuation, andtransaction execution. Mr. Moon serves on the board of HRIP Holdings. Previously, he was an Associate in the CorporateAcquisitions Group at ING Clarion Partners. From July 2006 to February 2008, he was an Analyst in the Real Estate InvestmentBanking Group at Citigroup. Mr. Moon graduated from the University of California, Berkeley in May 2005 with a Bachelor ofScience in Business Administration.

Portfolio Manager

Matthew J. Wolpert

Matthew J. Wolpert, 34, Portfolio Manager. Mr. Wolpert joined Almanac in 2016 and serves as the portfolio manager for AlmanacRealty Public Securities, L.P, Almanac’s REIT/real estate public securities investment platform. From June 2011 to September 2016he was a Principal and Analyst at V3 Capital Management, L.P., a hedge fund focused on value and event-driven investing in realestate securities across the capital structure. From August 2009 to May 2011 he was an Analyst at High Rise Capital management, a$1.5 billion public real estate securities fund. From 2007 to 2009 he was an Analyst in the Real Estate & Lodging Investment BankingGroup at Citi and from 2005 to 2007 he was an Analyst in Citi Global Transaction Services. Mr. Wolpert is a CFA Charterholder andgraduated from Washington University in St. Louis in May 2005 with a Bachelor of Science in Business Administration.

21


Madeline K. Chiavini, 29, Vice President. Ms. Chiavini joined Almanac in 2013 and is responsible for securities and sector analysis,valuation, and transaction execution. From August 2012 to September 2013, she was an Analyst in the Industrials InvestmentBanking Group at Macquarie Capital. Ms. Chiavini graduated from The University of Notre Dame in May 2010 with a Bachelor ofArts in the Program of Liberal Studies and Economics, received a Master of Science in Commerce from the University of Virginiain August 2011 and a Masters in Finance from Claremont McKenna College in May 2012.

Vice President

Madeline K. Chiavini

Vice President

Michael H. O’Neill

Michael H. O’Neill, 29, Vice President. Mr. O’Neill joined Almanac in 2014 and is responsible for securities and sector analysis,valuation, and transaction execution. From July 2013 to August 2014, he was an Analyst in the Real Estate & Lodging InvestmentBanking group at Citi. Prior to joining Citi’s Real Estate & Lodging team, he was an Analyst in Citi’s Treasury and TradeSolutions. Mr. O’Neill graduated Phi Beta Kappa and with distinction from Krannert School of Management at Purdue Universityin May 2010 with a Bachelor of Science in Honors Economics.

Controller

Joseph M. Sacchetti

Joseph M. Sacchetti, 37, Controller. Mr. Sacchetti joined Almanac in 2012 and is responsible for the financial accounting andreporting of the ARS Fund Series and for Almanac, including the analysis of fund performance, investor reporting, tax complianceand treasury reporting. Previously, he held the position of Fund Controller for The Hampshire Companies, a fully integrated realestate investment firm. From 2003 to 2011, he was employed by Lazard Frères & Co. as an Accounting Manager for the managerof a series of real estate private equity funds, where he worked closely with Mr. Herms. Mr. Sacchetti graduated from theUniversity of Notre Dame in 2002 with a Bachelor of Science degree. He is a CPA licensed in the state of New York, and is amember of the American Institute of Certified Public Accountants and NAREIT.

22


Associate

Sidney Kanell

Sidney Kanell, 23, Associate. Ms. Kanell joined Almanac in 2017 and is responsible for investment analysis, underwriting, structuring, transaction execution, and ongoing management of the investments of the ARS Fund Series and CARS. From July 2016 to August 2017, she was an Analyst in the Real Estate, Gaming & Lodging Investment Banking group at Bank of America Merrill Lynch. Ms. Kanell graduated with Honors from Johns Hopkins University in 2016, with a Bachelor’s Degree in Applied Mathematics and Statistics.

Associate

Matthew P. Marshall

Matthew P. Marshall, 28, Associate. Mr. Marshall joined Almanac in 2015 and is responsible for securities and sector analysis,valuation, and transaction execution. From March 2014 to August 2015, he was an Analyst in the Real Estate & LodgingInvestment Banking group at J.P. Morgan. Prior to joining J.P. Morgan, he was an Analyst in INTL FCStone’s Investment Bankinggroup in New York. Mr. Marshall graduated Cum Laude from the University of Texas at Austin in May 2012 with a Bachelor ofBusiness Administration in Finance.

Associate

Gabrielle M. Porter

Gabrielle M. Porter, 29, Associate. Ms. Porter joined Almanac in 2017 and is responsible for supporting the firm’s business development and investor relations activities. From December 2013 to August 2017, she was an Investment Operations Associate at Carnegie Corporation of New York. In her previous role, she was responsible for overseeing all investment operations for the foundation’s portfolio. Prior to Carnegie, she enjoyed a successful acting career in New York. Ms. Porter received her B.F.A. from NYU Tisch School of the Arts, with a minor in French and Political Science as well as a Certificate in Business Finance from NYU School of Professional Studies.

Tax Manager

Xiu Zheng

Xiu Zheng, 38, Tax Manager. Ms. Zheng joined Almanac in 2016 and is responsible for tax compliance of the ARS Fund Series.From 2011 to 2016, she was a Finance Manager in IGG Inc group. From 2005 to 2010, she was employed by Deloitte Tax LLP,where she served as Tax Manager who was responsible for tax compliance engagements for real estate companies. Ms. Zhenggraduated from the City College of New York – Baruch College in 2004 with a Bachelor of Business Administration in Accounting,summa cum laude. She is a CPA licensed in the state of New York.

23


Accounting Supervisor

Mike Mitchell

Mike Mitchell, 26, Accounting Supervisor. Mr. Mitchell joined Almanac in 2013 and is responsible for the financial accounting andreporting of Almanac Realty Public Securities, L.P., including the oversight of its fund administrator, the budgeting, forecastingand financial reporting for Almanac, and the calculation of fund performance metrics for all Almanac managed funds. Mr.Mitchell graduated from Pepperdine University in 2013 with a Bachelor of Science in Accounting.

Senior Accountant

Jason Dumont

Jason Dumont, 32, Senior Accountant. Mr. Dumont joined Almanac in 2012 and is primarily focused on the accounting andfinancial reporting for the ARS Fund Series and CARS, along with certain treasury functions. From 2009 to 2012, he wasemployed within the finance department of a charitable research organization. Mr. Dumont graduated from St. Francis College in2009 with a Bachelor of Science in Accounting, magna cum laude, and Master of Science in Accounting. He is a Certified PublicAccountant licensed in the state of New York

Accountant

Lisa Liu

Lisa Liu, 31, Accountant. Ms. Liu joined Almanac in October 2016 and is primarily focused on the accounting and financialreporting for the ARS Fund Series and CARS, including the preparation of quarterly and annual investor reports. Ms. Liugraduated from Baruch College in 2011 with a Bachelor of Business Administration in Accounting and Brooklyn College in 2014with a Master of Science in Accounting. She recently became a Certified Public Accountant licensed in the state of New York.

24


Accountant

Vincent Parente

Vincent Parente, Accountant. Mr. Parente joined Almanac in 2015 and is primarily focused on the accounting and financialreporting for Almanac Realty Public Securities, L.P., Almanac and its affiliates, including the monitoring and reconciliation ofdaily trade activity. Mr. Parente graduated from Rider University in 2015 with a Bachelor of Science in Finance, magna cum laude.

25


Senior Advisor

Andrew Batinovich

Andrew Batinovich, 58, Senior Advisor. Mr. Batinovich joined Almanac as a Senior Advisor in 2017 and is responsible forrepresenting Almanac on the board of PREP Property Holdings. He currently serves as President and Chief Executive ofGlenborough, LLC, a privately held full service real estate investment and management company focused on the acquisition,management and leasing of institutional quality commercial properties. He has served as Chief Executive Officer and as amember of the board of directors of Strategic Realty Trust (SRT), a public non-traded REIT, since Glenborough, LLC and itsaffiliate SRT Advisors, LLC became property manager and advisor to SRT in 2013. In 2010 he led a private investor group inacquiring Glenborough, LLC and related real estate assets that were originally part of Glenborough Realty Trust, a NYSE listedREIT, which was sold to affiliates of Morgan Stanley in 2006. From 2006 to 2010, he served as President and CEO of GlenboroughAcquisition, LLC, a company formed by an affiliate of Morgan Stanley to acquire Glenborough Realty Trust. In 1996 he co-founded Glenborough Realty Trust and was President and CEO at the time of the sale in 2006. Prior to founding GlenboroughRealty Trust, he served as Chief Operating Officer and Chief Financial Officer of Glenborough Corporation until 1996 when it wasmerged into Glenborough Realty Trust, Inc. Prior to joining Glenborough Corporation in 1983, he was an officer of SecurityPacific National Bank. He currently serves as a director of Sunstone Hotel Investors (NYSE:SHO), since November 2011, and as adirector of RAIT Financial Trust (NYSE:RAS), since March 2013. He is a member of the International Council of Shopping Centers(ICSC) and other trade associations. He also serves as a trustee of The American University of Paris. Mr. Batinovich earned a BAin International Business Administration from The American University of Paris.

Senior Advisor

Simon Wadsworth

Simon Wadsworth, 70, Senior Advisor. Mr. Wadsworth joined Almanac as a Senior Advisor in 2012 and is responsible forrepresenting Almanac on the boards of HRIP Holdings and Mount Auburn. He served for 16 years as Chief Financial Officer forMid-America Apartment Communities, a Real Estate Investment Trust with multifamily investments across the U.S. Sunbelt.Upon retirement as CFO, he served as Special Advisor to the Chairman from 2010 to 2012. He was also a Director of the companyduring his entire tenure there, from 1994 to 2012. He is the author of “REIT Cash is King,” which focuses on investing in REITPreferred Securities. Mr. Wadsworth received a Bachelor’s Degree from Cambridge University in England in 1968 and an MBAfrom Harvard Graduate School of Business Administration in 1973.

26

Performance Notes

Performance information included in this presentation is intended solely to provide recipients with information about theexisting Funds and their respective investments. In considering the performance information contained herein, prospectivelimited partners should understand that an investment in any fund does not represent an interest in any investment orinvestment portfolio of any prior, related or other investment fund sponsored, managed or advised by Almanac. Informationrespecting prior performance is not indicative of actual results to be obtained by any Fund, and there can be no assurancethat any Fund will be able to implement its investment strategy or investment approach, achieve comparable results, that anytarget results will be met or that it will be able to avoid losses.

The performance returns attributable to any particular limited partner may vary from the returns presented due to differencein timing of net cash flows between investors and the amount of net cash flows attributable to each investors interest. Theperformance returns may include returns for investments that are not fully realized. In the case of investments that are notfully realized, the actual realized returns on such investments will depend on, among other factors, future operating results,the value of the assets, market conditions at the time of realization, the level of transaction costs incurred, and the timing andmanner of sale, all of which may differ from the assumptions used to estimate the future value of the investments.Accordingly, the actual realized return of investments that are not fully realized may differ materially from the returnsindicated herein. Fund level returns represent a measurement of the performance of the Fund related to the capital interestsheld by the unaffiliated limited partner group taken as a whole (hereinafter referred to as the “limited partners”), andexcluding the capital interests in the Fund that are held by the general partner and any limited partner that is a current orformer affiliate of the general partner.

Footnotes to Almanac Fund Performance Table on Page 3

1. Returns are calculated for each index starting from the date each Almanac investment is made and ending with the earlier of theinvestment exit or 6/30/2017 and are weighted by the size of each Almanac investment. Indices are shown for comparisonpurposes only and are not investment products available for purchase. Indices are unmanaged and generally do not take intoaccount fees or expenses.

2. The returns reflect investment management fees and carried interest paid/accrued.

3. The Distributions to Paid-In (“DPI”) Ratio is calculated by dividing the cumulative distributions as of 6/30/2017 by the amountof paid-in capital.

4. MSCI US REIT Index, calculated by Morgan Stanley Capital International, Inc. The index is calculated with dividends reinvestedon a daily basis and is designed to measure the performance of equity REIT securities. All index members are real estate equitysecurities from the MSCI US Investable Market 2500 Index.

5. NCREIF Property Index, published and distributed by the National Council of Real Estate Investment Fiduciaries. The NCREIFProperty Index consists of both equity and leveraged properties, but the leveraged properties are reported on an unleveragedbasis, so the index is completely unleveraged.

6. Standard and Poor’s 500 Index. The S&P 500 is an index consisting of 500 stocks chosen for market size, liquidity and industrygrouping, among other factors, which is meant to reflect the risk/return characteristics of the large-cap universe.

7. Citigroup Investment-Grade Bond Index for BB-rated bonds. This is a total return index.

8. Does not include sidecar participation amounts. Distributions represent realized proceeds from unaffiliated limited partnercapital invested into portfolio companies as of 6/30/2017. Does not include CARS I.

27

Performance Notes

28

Performance Notes

“Fund Gross IRR” is calculated in the same manner as the Gross IRR, and combines the cash flows from investments in allportfolio companies of the referenced fund.

“Net IRR”: The inception to date net fund IRR, as it applies to the capital interests of the Limited Partners as a whole, and thenet partner IRR, as it applies to the capital interest of an individual partner (collectively, the “Net IRR”) (the Limited Partnersand an individual partner referred to as an “Investor” with reference to the net fund IRR and net partner IRR, respectively) isthe compounded per annum rate of return on an Investor’s investment in the Fund, after deduction of management fees,partnership expenses, carried interest and fund reserves, measured from inception through the last day of the reporting period.The Net IRR is calculated using the actual dates that the Investor made its capital contributions to the Fund and the actualdates that the Investor received a distribution of the available net cash flow from the Fund. The Net IRR uses the estimated fairvalue of the Investor’s interest in the Fund as of the last day of the reporting period, net of the estimated carried interest thatwould be due as of such date based on such estimated fair value, as the residual value.

“Net Multiple” is the ratio of (x) the net value of the limited partners’ interest in the referenced Fund, over (y) the amount ofcapital invested by such limited partners in the referenced Fund. The Net Multiple is measured from the inception (the date offirst investment in a portfolio company) through the last day of the reporting period, and is not impacted by the time thatcapital has been invested. In determining the Net Multiple, the net value of the limited partners’ interest in the referencedFund represents (a) the inception to date operating net cash flow distributed to such limited partners (after deduction ofmanagement fees, partnership expenses, carried interest and fund reserves), plus (b) the inception to date realized gainsdistributed to such limited partners, and (c) the estimated fair value of the limited partners’ interest in the referenced Fund asof the last day of the reporting period, net of the estimated carried interest that would be due as of such date based on suchestimated value. As it relates to performance measurement, the Net Multiple for the referenced Fund may differ from the netmultiple generated for any single limited partner.

“Distributions to Paid-In (DPI) Ratio” is the ratio of (x) the cumulative distributions to limited partners, over (y) the amountof capital invested by such limited partners in the referenced Fund.

29

Performance Notes

“% of Partner Capital Returned” represents the percentage of partner capital invested into portfolio companies of thereferenced Fund that has been returned as of June 30, 2017.

Investment level returns represent a measurement of the performance of the Fund’s investments related to the capital investedin each investment. Gross investment level returns are reported for each investment and for all of the Fund’s investments on acombined basis.

“Gross IRR”: The inception to date Gross Investment Level Internal Rate of Return (the “Gross IRR”) is the compounded perannum rate of return on an investment in a portfolio company, before the allocation and deduction of management fees,partnership expenses and carried interest, and fund reserves. The Gross IRR presented for each investment represents thereturn through the earlier of the current reporting date or the date of full realization. The Gross IRR is calculated using theactual dates that an investment is made into, or returned from, a portfolio company. The Gross IRR calculation generallyrecognizes income from an investment when contractually due (i.e. interest on loans, fees and preferred dividends), or in thecase of common equity investments, when received. The estimated fair value of an investment, before deduction for carriedinterest, is utilized as the residual value in the calculation of the Gross IRR for any investments that have not been fullyrealized as of the current reporting date. Under the terms of the applicable Partnership Agreement, capital contributions madeto the partnership which are used to fund temporary investments, and which are returned before a specified date (BridgeInvestments), if any, are excluded from the Gross IRR presentation.

“Gross Multiple” is the ratio of (x) the total value of the Fund’s interest in a portfolio company, over (y) the amount of capitalthat the Fund invested in such portfolio company. The Gross Multiple is measured from the inception of an investmentthrough the last day of the reporting period (or through the date of full realization, if earlier), and is not impacted by the timethat capital has been invested. In determining the Gross Multiple for an investment that has been fully realized, the total valueof the Fund’s interest in a portfolio company equals (a) the inception to date gross cash received from an investment, plus (b)the gain (loss) realized upon disposition of such investment. In determining the Gross Multiple for an investment that has notbeen fully realized, the total value of the Fund’s interest in a portfolio company represents (a) the inception to date gross cashreceived from an investment, plus (b) the gain (loss) realized from any partial disposition of such investment, and (c) theestimated fair value of the Fund’s interest in such investment as of the last day of the reporting period.

30

Performance Notes

“Gross Projected IRR” is calculated in a manner similar to the calculation of Gross IRR for inception to date returns, exceptthat these calculations contain estimates and assumptions about the timing and amount of future investment and partnershiplevel cash flows and expenses, including the timing, form, and estimated proceeds resulting from assumed future exittransactions. Gross Projected IRRs are presented as a range. The extent of the range is a function of the level of the current yieldAlmanac expects to achieve through the projected realization date, the timing of the assumed future exit transaction, as well asthe ultimate net exit price (which typically Almanac projects across various scenarios). These estimates and assumptions areinherently uncertain, and subject to numerous factors, many of which are not in Almanac’s control. These estimates andassumptions were not prepared with a view towards public disclosure or compliance with any published guidelines. Theinternal projected return information set forth above is presented only for illustrative purposes as a guideline to assistprospective investors in understanding the types of portfolio investments made by Almanac on behalf of the ARS Funds. Assuch, neither Almanac Realty Investors, LLC, nor the referenced Fund, represent or warrant, and there can be no assurances,that these estimates and assumptions will be accurate; actual results may differ materially from these estimates.

“Initial Projected IRRs” are based on the original underwriting of a transaction. When projected IRRs are presented as arange, the extent of the range is a function of the level of the current yield Almanac expects to achieve through the projectedrealization date, the timing of the assumed future exit transaction, as well as the ultimate net exit price (which typicallyAlmanac projects across various scenarios).

“Initial Contractual Yield” is the stated interest rate set forth in the transaction agreement of each applicable investment ineffect during the initial period that the investment was outstanding. Where investments were made that included commonequity, the weighted average yield is shown assuming no dividends on the common equity investment. This figure may differfrom the realized yield on cost over the life of the investment, due to changes in interest rates, payment terms, and other loanmodifications. The Initial Contractual Yield is included solely for the purpose of providing prospective limited partners withhistorical context with respect to Almanac’s emphasis on achieving current yield. There can be no assurance that any Fund willachieve similar Initial Contractual Yields with respect to its investment program.

November 3, 2017

Value Fund IIIPresentation to San Joaquin County Employees’ Retirement Association

Third Quarter 2017

Triad at Orchard Station | Greenwood Village, CO

V101917

Table of Contents

SECTION

01 STOCKBRIDGE OVERVIEW

02 VALUE FUND SERIES

03 VALUE FUND III

04 PREDECESSOR FUNDS

05 APPENDIX

Stockbridge Overview

.01

Houston, Texas

STOCKBRIDGE OVERVIEW | 6

Stockbridge OverviewStockbridge is an independent real estate investment manager with $6.5 billion in assets under management across 33 million square feet and 6,694 multifamily units. The firm offers a national focus with regional offices in San Francisco, Atlanta, Chicago and New York.

33%30+48+11+11East11%

Midwest11%

West48%

South30%26+41+15+18Office

20%

Industrial40%

Retail16% Multifamily

24% 61+24+6+9Other9%

Corporate24%

Public61%

Foreign Investor

6%

Diversification

* As of second quarter 2017


Stockbridge Overview Stockbridge Organizational Chart

$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

2009 2010 2011 2012 2013 2014 2015 20160

10

20

30

40

50

60

70

80

$2.1 B in AUM

52 Employees

$6.5B in AUM

$2.6 B in AUM

71 Employees

26 Employees

PORTFOLIO MANAGEMENT Strategic Planning • Resource Allocation • Investor Interface

INVESTMENT COMMITTEEJUDGMENT & ACCOUNTABILITY

Acquisitions • Capital Expenditures • Financing • Dispositions

CLIENT ACCOUNTING & REPORTING ACQUISITIONS ASSET MANAGEMENT

CLIENT RELATIONS & MARKETING

COMPLIANCE & OPERATIONS

Mark CarlsonJay JehleTuba MalinowskiJean-Marie MurphyDavid NixSol RasoSteve SteppeDoug SturialeDan Weaver

2009 2010 2011 2012 2013 2014 2015 2016 2017

VALUE FUND II | 8

Preston Park | Plano, TX


Acquisitions & Asset Management CoverageACQUISITIONS PERSONNEL

San Francisco Chicago AtlantaMark Carlson | Managing Director Dan Weaver | Managing Director David Nix | Managing DirectorBrad Cardon | Vice President Patrick Hackett | Vice President Jeffrey Brunette | Vice President+2 associates/analysts Steve Azar | Vice President +2 associates/analysts

+1 analyst

ASSET MANAGEMENT PERSONNELSan Francisco Chicago AtlantaDrew Stepanek | Senior Vice President Gary Hunter | Senior Vice President Brian Bill | Senior Vice PresidentMatthew Jerry | Senior Vice President Sebastian Grisoni | Vice President Bianca Tabourn | Senior Vice PresidentDoug Cabeal | Vice President +2 associates/analysts Darik Afshani | Vice PresidentMeghan Concannon | Vice President +2 associates/analysts+2 associates/analysts

Value Fund Series

.02

San Francisco, California

VALUE FUND SERIES | 12

Value Fund Series Strategy OverviewThe Stockbridge Value Funds are diversified closed-end real estate vehicles targeting value-added office, retail, industrial and multifamily assets in the United States. Stockbridge has a seasoned investment staff with deep local market knowledge to both accurately underwrite investments and execute successful turnarounds.

25+50+25

DEEP VALUE-ADD

LIGHT RENOVATIONS

REPOSITIONING

DEEP VALUE-ADD• Substantial physical improvements and full/partial lease up

• Targeting high-teen returns or greater

• Minimal cash flow until stabilization or sale

• 2-5 years until stabilization

• Replace/re-incentivize property management

• Cosmetic and revenue generating improvements

• Targeting low to mid-teen returns• Cash flow positive on Day One• High cash-on-cash returns upon stabilization


REPOSITIONING• Rent ready improvements and lease-up

• Targeting mid-teen returns• Cash flow positive on Day One• High cash-on-cash returns upon stabilization


LIGHT RENOVATIONS

VALUE FUND SERIES | 13

Value Series Organizational Chart

INVESTMENT COMMITTEE

ACQUISITIONS, DUE DILIGENCE & UNDERWRITING

ACCOUNTING & REPORTING ASSET MANAGEMENT

COMPLIANCE & CONTROLS

CLIENT RELATIONS & MARKETING

SENIOR PORTFOLIO MANAGERDOUG STURIALE | MANAGING DIRECTOR

PORTFOLIO MANAGEMENT PORTFOLIO CONTROLLER | VALUE FUND II & III PORTFOLIO CONTROLLER | VALUE FUNDELIZABETH KIRLEYVICE PRESIDENT

BREANNA STAGGS VICE PRESIDENT

JACQUELINE BEKKER VICE PRESIDENT

PORTFOLIO ASSOCIATE PORTFOLIO ANALYST

KEVIN KUECHLER ASSOCIATE

KENNEDY SHIELDS ANALYST

Value Fund III

.03

Seattle, Washington

VALUE FUND III | 16

WHY VALUE ADD NOW?

• Economic recovery and strengthened capital market fundamentals• Stimulated tenant demand• Housing market on firm footing• In-process construction across all sectors has doubled over the past four years

Value Fund III Strategy

STRATEGY

MULTIFAMILYInvest in neighborhoods, not markets

Target properties in suburban markets, proximate to city centers to cater to tenants who have been priced out of the “top” of the urban market

INDUSTRIALE-commerce impact on industrial use

Target “last mile” facilities that serve compressed delivery times in the supply chain process

RETAILThink like a retailer

Target properties in trade areas experiencing high population growth and above average household income, where older grocery-anchored retail properties can be repositioned to better serve the community

OFFICEInvest in markets with outsized job growth Target markets experiencing outsized employment growth with upscale

amenities, excellent university systems and an executive workforce

VALUE FUND III | 17

Value Fund III Strategy - Geographic

5

Five of the nation’s fastest growing cities are in Texas

367,525

Net inflow of residents to Florida in 2016

4th

Atlanta’s 2016 population growth was fourth in the nation

3rd

California ranked 3rd in employment growth from June 2016 to June 2017

6th

Phoenix is the 6th most populated city in the United States

10,145,217

In 2016, North Carolina became the 9th most populous state in the United States with population exceeding 10 million

Source: Bloomberg, Moody’s, GoverningBrooking’s, Census*Calculated on initial acquisition price

600,000 Americans moved from the Midwest and Northeast to the Sunbelt states in 2016

11 / 1511 of the top 15 fastest growing cities are in the Sunbelt region as of July 2016

TOP 1&2

San Francisco, CA, Dallas, TX lead the nation in employment growth (as of May 2017)

The Value Fund Series has a proven track record of focusing on the Sunbelt Region, with 92%* of the series’ investments in this region. The Sunbelt Region is attractive to residents and businesses, due to a lower cost of living, state tax incentives, temperate weather and a high quality workforce.

VALUE FUND III | 18

Value Fund III SnapshotVintage Year 2017

Equity Commitments $248.0 million

GAV $75.2 million

LTV 67.7%

Number of Active Investments 2

Pending Investment 1

IndustrialOffice

MultifamilyRetail

Active InvestmentPending Investment

Note: GAV, LTV and number of active investments as of September 2017

VALUE FUND III | 19

Asset Summary - Port America Dallas, Texas

Property Type Industrial

Acquisition Date July 2017

Purchase Price $59.7 M ($83 PSF)

Size 717,094 SF

Occupancy 96%

Underwritten IRR 13.3%

Multiple (Levered) 1.7x

LTV 69.4%

OVERVIEW

• 15-building shallow-bay industrial portfolio notably located on fee simple land while the surrounding competitive set is largely on 40-year ground leases

• Constructed between 1981-2002, the portfolio features an average clear height of 26’ and average building size of 47,806 square feet

• High quality industrial portfolio with strong historical occupancy. Currently 96% leased to 100± tenants with an average remaining lease term of 2.5 years

• Located adjacent to the Dallas Fort Worth Airport. The DFW industrial submarket is among Dallas’ strongest with a current vacancy rate of 3.0%

• Ideal location for tenants in logistics industry allowing immediate access to DFW airport and ease of distribution throughout the Metroplex

FUTURE GOALS & STRATEGY

• The portfolio’s quality, combined with the tightness in the market, lack of competitive supply and rents that do not justify new construction of competitive product are all expected to drive strong Portfolio performance for the foreseeable future

• The Fund acquired the Class-B industrial warehouse portfolio that is well-located in a strong supply-constrained submarket at a basis below replacement cost

• With 46% of the tenancy rolling in the first two years and in-place rents below market, the business plan is to invest in rebranding the Portfolio and complete cosmic upgrades while continuing to capitalize on the strong leasing momentum and roll tenants to market rates

VALUE FUND III | 20

Asset Summary - Northview Plaza Dallas, Texas

Property Type RetailAcquisition Date July 2017Purchase Price $16.5 M ($142 PSF)Size 116,098 SFOccupancy 86%Underwritten IRR 12.9%Multiple (Levered) 1.7xLTV 61.7%

OVERVIEW

• 2-building Kroger anchored retail center, built in 1983 and 1991

• Currently 86% occupied by 19 tenants with a weighted average remaining lease term of 7.3 years

• Located in the “L” streets neighborhood, 10 miles northeast of the Dallas CBD

• Strong surrounding demographics with an expected population growth of 5.2% over the next five years

• With the recent closure of the primary competitive grocer one-mile west of the property, Kroger stands to gain an increased market share

FUTURE GOALS & STRATEGY• Acquired a Kroger-anchored shopping center in a dense, affluent and growing location with a grocer exhibiting strong sales productivity and in-line rents well-below market as a result of the Seller being unwilling to give market TI packages

• Implement a light value-add program totaling $1.3 million to the common areas, roofs and systems to improve the Property’s physical appearance and signage

• Invest an additional $370,000 in leasing capital and engage best-in-class leasing and management teams, which the Property lacked under prior ownership, to aggressively market the existing vacancies and operate the Property in an institutional manner

VALUE FUND III | 21

Asset Summary - Burnham 600 Chicago, Illinois

Property Type Office

Expected Acquisition Date November 2017

Expected Purchase Price $24.1 M ($211 PSF)

Size 114,141 SF

Occupancy 65%

Underwritten IRR 12.5%Multiple (Levered) 1.6x

Expected LTV 65%

OVERVIEW

• Eight-story creative loft office building totaling 114,141 sqaure feet in Chicago’s Near West Loop neighborhood

• Historic building constructed in 1906 and renovated in 2016• Situated just west of Union Station, the Property benefits from its strategic, transit-oriented location, timeless architecture and walkable amenities

FUTURE GOALS & STRATEGY• The Property’s current occupancy of 65% is well below that of the competitive set of 92%, allowing for significant upside through lease-up of vacant office suites

• The potential to convert the lower level into a retail amenity offers additional upside that would further improve the building’s profile within the submarket

• The Property is expected to achieve a stabilized yield on cost of 7.6% and a leveraged IRR of 12.5% over a five-year hold

• Current in-place tenancy is expected to provide stable cash flows with a weighted average remaining lease term of 6 years

VALUE FUND III | 22

Port America | Dallas, TX

VALUE FUND III | 23

FUND TERMS

Return Target 12% - 15% per annum on a gross basis*

Targeted Fund Size $400 - $500 million | $500 million Hard Cap

First Close $248.0 million, April 2017

Minimum Commitment $5 million

Sponsor Commitment 2% of total Capital Commitments, up to $5 million

Term Five years from the end of the Investment Period with two successive, one-year extension options

Leverage Limitation 65% loan-to-value of the Fund’s aggregate investments

Concentration Limitation

20% of equity max in any one asset25% of equity max in any one MSA60% of equity max in any one property type10% of equity max in development activities

Preferred Return 8% net per annum, compounded annually

Carried Interest 20% of distributions in excess of a return of capital and preferred return, with no catch-up provision

Asset Management Fee 125 bps on commitments over $50 million and 150 bps on commitments under $50 million. Fees on committed capital during investment period. After investment period, fees based on invested capital.

Value Fund III Highlights

*Target returns are objectives. There can be no assurance that the Fund will achieve its return target. Gross returns to investors will be reduced by costs, expenses, fees and incentive compensation.

WHAT SETS US APART?

Unique Geographic Approach

Shorter Fund Term

Tactical Asset Management

Strong Track Record

Limited Competing Capital

PREDECESSOR FUNDS

.04

Phoenix, Arizona

VALUE FUND II | 26

Value Fund II SnapshotCURRENT FUND DIVERSIFICATION

Fund’s share of gross asset value

Vintage Year 2014Equity Commitments $320.5 millionGAV $666.9 millionLTV 53.5%Cumulative Distributions $57.6 millionNumber of Active Investments 21Number of Realized Investments 1Return on Realized Investments 33.9% IRR Multiple on Realized Investments 1.63x Since Inception IRR (net) 15.0% Investment Multiple 1.4x

32+23+8+37Multifamily32%Office

37%

Industrial23%

Retail8%

57+4+36+3South57%

East4%

West36%

Midwest3%

44+38+18Deep Value-Add

18%

Light Renovation

38%

Repositioning44%

Industrial

Active Investment

Office

MultifamilyRetail

Pending DispositionRealized Investment

VALUE FUND I | 27

Value Fund I Snapshot

41+46+13South41%

West46%

East13%

PEAK FUND DIVERSIFICATIONFund’s share of gross asset value

32+4+53+11Multifamily32%

Office 53%

Industrial11%

Retail 4%

*Only includes current investments50+36+14

Deep Value-Add

14%

Light Renovation

36%

Repositioning50%

Vintage Year 2011Equity Commitments $217.9 millionGAV $189.4 million*

LTV 39.4%*

Cumulative Distributions $217.0 millionNumber of Active Investments 4Number of Realized Investments 8Return on Realized Investments 24.6% IRRMultiple on Realized Investments 1.76xSince Inception IRR (net) 20.6%Investment Multiple 1.9x

Industrial

Realized Investment

Active Investment

Office

MultifamilyRetail

Pending Disposition

Appendix

.05

Charlotte, North Carolina

APPENDIX | 30

View from Triad at Orchard Station

APPENDIX | 31

Stockbridge Presenter BiographiesDoug SturialeManaging Director, San Francisco• Serves as the Senior Portfolio Manager of Stockbridge’s Value Fund Series

• Managed more than $4.5B of assets throughout his career, including as President of RREEF’s value-added commingled investment vehicle

• Prior role as Vice President and Director of Real Estate Services with Colliers International

• B.S. in Industrial Technology from California Polytechnic State University in San Luis Obispo

Sol RasoExecutive Managing Director, Chicago• 35 years of experience in real estate investment and portfolio management

• Head of Stockbridge’s core and value-added business lines

• Former partner in charge of RREEF’s Client Relations group and served on its Global Alternatives Investments Executive Committee and North America Investment Committee

• Served as Director of Real Estate for Colorado PERA for 10 years

• Former Chairman of the Pension Real Estate Association (PREA)

• B.S. in Finance/Real Estate from the University of Colorado and M.B.A. from the University of Denver

APPENDIX | 32

Value Fund Series Team Members

Kevin KuechlerAssociate, San Francisco• 7 years of real estate industry experience

• Serves as the Associate for the Value Fund Series

• Responsible for financial analysis, valuations and forecasting of the Fund

• Formerly Staff Auditor at KPMG where he served public and private companies across a variety of industries, including real estate

• B.S. in Environmental Economics and Policy from the University of California at Berkeley

Doug SturialeManaging Director, San Francisco• See Presenter Biography

Elizabeth KirleyVice President, San Francisco• 8 years of real estate industry experience

• Serves as a Vice President for the Value Fund Series

• Responsible for portfolio-level strategy, capital markets oversight, asset management coordination, and cash flow management for the Fund

• Prior role as an asset manager covering the Pacific Northwest region

• Formerly an analyst responsible for asset management and investor reporting at PCCP, LLC, a real estate investment firm

• B.S. in Business Administration with an emphasis in Finance from the University of Colorado at Boulder

APPENDIX | 33

Value Fund Series Team MembersAlan PurserManaging Director, Atlanta• 19 years of real estate industry experience client relations, real estate investments and business development

• Serves as the Head of Stockbridge’s Client Relations team

• Responsible for fundraising and new business development for the firm’s core and value business lines

• Formerly Head of Global Consultant Relations at Heitman where he was responsible for developing key relations within the global consultant community

• Previously with Deutsche Bank/RREEF where he focused on developing new and existing relationships for their alternative investment platform

• B.A. in Marketing from University of California, Berkeley

Andrew KnoxVice President, Atlanta• 10 years of real estate industry experience

• Focuses on client relations and new business development

• Former Acquisitions Associate for Preferred Real Estate Funds, LLC where he led acquisition efforts and established partnerships and joint venture opportunities

• Evaluated over $950 million in acquisitions and recapitalizations from 2008 to 2011

• B.A. in Communications from Wake Forest University

APPENDIX | 34

Investment Committee MembersSol RasoExecutive Managing Director, Chicago• See Presenter Biography

Doug SturialeManaging Director, San Francisco• See Presenter Biography

APPENDIX | 35

Investment Committee MembersMark Carlson Managing Director, San Francisco• 34 years of real estate industry experience

• Focuses on acquisitions in the West Coast markets

• Former Managing Director with RREEF’s San Francisco acquisitions group, responsible for its office, industrial and retail investments in Southern California; also served as a voting member on its North America Investment Committee

• Previously oversaw RREEF’s Disposition Department, which closed over $6B of transactions during his tenure

• B.A. in Business Administration with a Real Estate emphasis from the University of California at Berkeley

Jay JehleManaging Director, Atlanta• 33 years of real estate industry experience

• Serves as a separate account Portfolio Manager

• Responsible for the management of approximately $3.4B of real estate assets throughout his career, including separate accounts and commingled funds

• Formerly with RREEF for 17 years serving as a Managing Director and Portfolio Manager

• B.A. from the University of Michigan and M.B.A. in Real Estate Finance from the University of Denver

Investment Committee Members

APPENDIX | 36

Investment Committee MembersTuba MalinowskiManaging Director, Atlanta• 29 years of real estate industry experience, including portfolio management, acquisitions, dispositions, asset management and client

relations• Serves as Senior Portfolio Manager of the Smart Markets Fund• Responsible for sourcing and closing more than $900M of real estate assets across all property types• Oversaw disposition efforts for $1B in real estate assets• Former Director of Marketing and Client Relations for Principal Global Investors, and responsible for the firm’s acquisition and disposition

activity in Atlanta and Tampa• Previously served as Vice President of acquisitions and portfolio management at Equitable Real Estate/Lend Lease• B.A. in Economics from Agnes Scott College

Jean-Marie MurphyManaging Director, New York• 41 years of real estate industry experience• Serves as a separate account Portfolio Manager• Responsible for the management of more than $4B of real estate assets throughout her career• Former Managing Director in the Portfolio Management division of RREEF, responsible for the oversight of a $2B national portfolio on behalf

of four separate account clients• Held Senior Vice President position at Greystone Realty Corporation, with responsibility for a $1B portfolio and Greystone’s transaction

management functions • B.A. in Sociology from Queens College

APPENDIX | 37

Investment Committee Members

Steve SteppeManaging Director, San Francisco• 45 years of real estate industry experience• Focuses on acquisitions and strategic client relations and is Chair of the firm’s Investment Committee for the core and

value-added business lines• Former Chairman of RREEF North America and an active member of its key North American Investment Committees and

Fund Boards• Past member of the RREEF Global Securities Strategic Investment Committee and Global Investment Committee • Former Chairman of the Pension Real Estate Association (PREA)• B.A. from the University of Arizona

Investment Committee MembersDavid NixManaging Director, Atlanta• 19 years of real estate industry experience• Focuses on acquisitions in the Southeastern United States• Former Principal and head of the North America Real Estate Group for Mercer Investment Consulting for two years, where

he directed the evaluation of more than 100 private equity real estate funds• Mr. Nix held several lead acquisitions roles for property transactions in the Southeast region of the U.S., during which

time he sourced and closed more than $2 billion in transactions• B.A. in Real Estate from the University of Georgia

APPENDIX | 38

Investment Committee MembersDan WeaverManaging Director, Chicago• 30 years of experience in commercial real estate investments and capital markets transactions• Focuses on acquisitions in the Midwest and Texas, as well as capital market transactions• Formerly led RREEF’s retail acquisition efforts and served on its North America Investment Committee and Securities Investment Committee• Joined RREEF in 1996 to start its Capital Markets group, where he was responsible for all of the firm’s financing activities• B.E.D. in Architecture and M.B.A. in Finance from Miami University

VALUE FUND III | 39

Los Angeles, California

APPENDIX | 40

Endnotes to Value Fund I, II and III Snapshot1. The performance of Stockbridge Value Fund I, Value Fund II and Value Fund III are not necessarily indicative of the returns that will ultimately be realized

by the Fund. There can be no assurance that the Fund will be able to make investments similar to those made by Stockbridge Value Fund I and Fund II, including in terms of size, location and diversification.

2. Past performance is not necessarily indicative of future results, and there can be no assurance that investments made by the Fund will achieve comparable results to any of the prior performance information contained herein or that targeted returns or any of the Fund’s investment objectives will be achieved.

Endnotes to Value Fund I, II and III Assets1. The Value Fund I, Value Fund II and Value Fund III Assets demonstrate the application of the Manager’s value-added investment strategy. The

investments described on the preceding pages do not constitute all of the Manager’s investments through its prior investment vehicles and accounts and do not purport to be a representative sample of investments reflecting the Manager’s track record for real estate investments. The investments described herein are meant to be representative of some of the types of investments that may be targeted by the Fund and are not necessarily indicative of future investments or performance of the Fund. The Fund will not own any interest in any of the investments described herein. The ultimate investments made and returns realized by the Fund will depend on a number of factors that are subject to uncertainty.

Endnotes

APPENDIX | 41

Endnotes Important NoticeThe Interests in the Fund Have Not and Will Not Receive Any Regulatory Approval. The interests in the Fund have not been filed with or approved or disapproved by an regulatory authority, nor has any such regulatory authority passed upon or endorsed the merits of such interests. Interests in the Fund have not been and will not be registered for sale, an there will be no public offering of such interests. There is no active secondary market for interests in the Fund and none is expected to develop. There will also be substantial restrictions on the transfers of interests in the Fund. Investments in private funds are speculative and involve special risks including, the fact that private funds: (i) may be highly illiquid; (ii) are not required to provide periodic pricing or valuation information to investors; (iii) may involve complex tax structures and delays in distributing important tax information; (iv) are not subject to the same regulatory requirements as mutual funds; (v) often charge higher fees and the high fees may offset the fund’s trading profits; (vi) may have a limited operating history; (vii) may have performance that is volatile; (viii) may have a fund manager who has total trading authority over the fund and the use of a single adviser applying generally similar trading programs could mean a lack of diversification, and consequently, higher risk; (ix) may not have a secondary market for an investor’s interest in the fund and none may be expected to develop; and (x) may have restrictions on transferring interests in the fund. This Investor Presentation has been provided to you on a confidential basis and prepared for information and discussion purposes only. By accepting this Investor Presentation, you agree to keep the information contained herein confidential and not to disclose it to anyone except to: (i) your legal, tax and financial advisers who agree to maintain these materials in confidence or (ii) a government official upon request, if entitled to such information pursuant to a judicial or governmental order. This Investor Presentation has been designed for use on a one-on-one basis for investors who are sophisticated about financial matters, and of whom CVA has some prior knowledge, experience and relationship. If you are not within one of the categories of recipients described above, then this Investor Presentation is not intended for you and should be returned unread. Also, please note that not all of the information contained in this “Important Notice” is applicable to every page of this Investor Presentation but the relevant portions of the Important Notice should be referenced and are hereby incorporate on each page, as applicable. Please discuss any questions you may have with an appropriate representative of CVA. Each person accepting this Investor Presentation agrees to return it promptly upon request.

Outside Sources; Estimates and Other Information. Certain information contained in this Investor Presentation has been obtained from sources outside of CVA. While such information is believed to be reliable for the purposes used herein, no warranty, express or implied, is made as to the accuracy, completeness, correctness or fairness of the information, opinions or estimates and projections contained in this Investor Presentation. No responsibility or liability, whether direct or indirect, express or implied, contractual, statutory or otherwise, can be accepted by CVA, SCG or the Fund for the contents or accuracy of this Investor Presentation or any omission from this Investor Presentation.

VALUE FUND SERIES CONTACTS

DOUG STURIALE Managing DirectorValue Funds Portfolio Manager415.658.3393 | [email protected]

ANDREW KNOX Vice PresidentClient Relations404.793.0393 | [email protected]

ALAN PURSERManaging DirectorClient Relations404.920.8501 | [email protected]

SAN FRANCISCO | ATLANTA | CHICAGO | NEW YORK

SAN JOAQUIN COUNTY EMPLOYEES’ RETIREMENT ASSOCIATION

EVALUATION OF A PROPOSED INVESTMENT IN

ALMANAC REALTY SECURITIES VIII, L.P.

OCTOBER 2017

LOS ANGELES CLEVELAND LONDON

SJCERA ARS VIII

PAGE 2


ALMANAC REALTY SECURITIES VIII, L.P.

TABLE OF CONTENTS I. EXECUTIVE SUMMARY ................................................................................................................... 3

II. COURTLAND RECOMMENDATION .............................................................................................. 4

III. ADVANTAGES AND RISKS/CONCERNS ...................................................................................... 5

IV. COURTLAND DUE DILIGENCE ACTIVITIES .............................................................................. 7

V. FIRM OVERVIEW ............................................................................................................................. 7

VI. INVESTMENT STRATEGY ............................................................................................................. 10

VII. TRACK RECORD ............................................................................................................................ 12

VIII. FEE COMPARISON ........................................................................................................................ 13

IX. MARKET CONDITIONS ................................................................................................................ 13

SJCERA ARS VIII

PAGE 3

I. EXECUTIVE SUMMARY

Courtland Partners, Ltd. (“Courtland”) prepared the following evaluation of Almanac Realty Securities VIII, L.P. (the “Fund” or “ARS VIII”) in consideration of a potential investment by San Joaquin County Employees’ Retirement Association (“SJCERA”). SJCERA previously committed $30 million to Almanac Realty Securities VI, L.P. (“ARS VI”). The table below summarizes the principal terms of the Fund.

SUMMARY OF FUND INVESTMENT TERMS Investment Almanac Realty Securities VIII, L.P. Manager Almanac Realty Investors, L.L.C. (the “Manager” or “Almanac”). General Partner Almanac Realty Partners VIII, L.L.C. (the “GP”). Fund Size $1.5 billion target. Term Ten years, with up to three one-year extensions by GP. Investment Period

Four years.

GP Co-Investment

Greater of 1% of Fund Commitments or $15 million.

Leverage None at the Fund level; portfolio companies will typically utilize leverage between 50%-70%.

Investment Strategy

Invest growth capital at the entity level in private or public real estate companies. Investments will typically be structured as preferred equity, convertible debt, or common equity.

Limitations

No more than 30% in a single portfolio company; No more than 15% in investments outside of the U.S.; No more than 50% in common equity securities of a portfolio company; and No portfolio investment will be made through the purchase of securities in an

open market transaction; provided, that the Fund shall not be restricted from acquiring securities in a private placement of public equities.

Risk/Return Value-Added. Expected Return 15% Gross IRR (1.75-2.0X); 12% Net IRR (1.5-1.75X). Preferred Return 8%. Promote 20% over an 8% preferred return with a 50/50 catch-up. Fund-level. Clawback Yes. Management Fees

1.25% on committed and invested.

Key Persons Matthew W. Kaplan, D. Pike Aloian, Andrew M. Silberstein, and Justin J. Hakimian.

Co-Investments May be made available. Advisory Committee

Yes.

Control Rights/ Termination:

67% in interest of the LPs may remove the GP for cause. 75% in interest of the LPs may remove the GP without cause.

Placement Agent None.

SJCERA ARS VIII

PAGE 4

II. COURTLAND RECOMMENDATION SUMMARY After consideration of the relative advantages and risks/concerns, Courtland recommends that SJCERA consider an investment in Almanac Realty Securities VIII, L.P in an amount up to $50 million, subject to legal review and the final negotiation of terms and conditions. The Fund provides the opportunity to invest with an existing manager that has provided strong relative returns. Throughout the course of our current due diligence on Almanac, the sponsor has displayed the following strengths which support our positive view:

Attractive entity level investment strategy; Current income focus; Strong absolute and relative track record; Experienced, cohesive team; Conservative investment approach with emphasis on risk mitigation; and Strong alignment of interests between Fund investments and portfolio company management teams

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

SJCERA ARS VIII

PAGE 5

III. ADVANTAGES AND RISKS/CONCERNS ADVANTAGES

1. Attractive Entity Level Investment Strategy. Almanac will invest at the entity level, providing growth capital for real estate companies that have high-quality management teams with long-standing track records. Fund investments are typically structured as convertible debt or preferred equity and enable the Fund to earn a high current income return, while seeking to generate capital gains by growing a company’s equity value through acquiring, developing, and/or repositioning real estate assets.

2. Current Income Focus. Almanac expects to derive approximately half of the total return, 6%-9% gross, from current income distributed quarterly. In addition, due to the high current yielding investments, the prior funds have historically mitigated the impact of the "J-Curve." The emphasis on current income as a percentage of total return results in a higher confidence of projected returns as returns are not heavily dependent on appreciation upside.

3. Strong Absolute and Relative Track Record. Almanac has a strong track record across 21 years, eight funds, and approximately $4.4 billion of committed capital and 39 portfolio companies. Funds V and VI rank in the 1st and 2nd quartile, respectively, against all real estate in the Courtland Partners Index. Across the entire ARS fund series, Almanac has generated a 12.9% net IRR on total realized and unrealized investments. To date, approximately $3.0 billion has been fully realized and generated a gross IRR of 15.7%.

4. Experienced, Cohesive Team. Almanac's senior management team (Partners and Managing Directors) has on average 25 years of experience and an average of 16 years of tenure at Almanac. The senior management's experience spans across real estate, capital markets, and corporate management, allowing for Almanac to evaluate and add value to portfolio companies. Matt Kaplan currently leads the team and is further supported by experienced senior executives that, if required, have the necessary experience to step into the Managing Partner role and continue to manage Fund investments.

5. Conservative Investment Approach Emphasizing Risk Mitigation. Almanac believes that risk mitigation is one of the most essential components of the firm’s strategy. One of the ways in which it mitigates risk is by actively participating on the board of the companies in which it infuses capital. Almanac also maintains continuous dialogue with the management of the companies regarding strategy and various ways to create value. Risk is further reduced by Almanac’s philosophy of acquiring assets at or below net asset value. Investments in these companies are primarily made in equity-oriented senior securities, such as preferred equity or convertible debt. Seniority in the capital structure provides additional protection of investor principal. Lastly, for private company investments, Almanac typically has half of the board seats, with control rights to take additional seats. Almanac typically receives one board seat for public companies. Almanac appears to have the available capacity to continue to monitor portfolio companies through its board presence.

6. Strong Alignment of Interests Between Fund Investments and Portfolio Company Management Teams. As a consequence of the investment structures of the Almanac investments in the portfolio companies, there is a strong alignment of interests between both Almanac and the management team of the portfolio company. In addition, the management team of the portfolio company typically has a significant amount of personal wealth invested in the entity.

SJCERA ARS VIII

PAGE 6

RISKS/CONCERNS

1. Investment Concentration. The Fund will make private placement investments in a limited number of real estate companies (previous funds have averaged 6-8 deals) that have a focus on a specific property type in a specific geographic region. Investment size ranges from $100 - $250+ million. Investment concentration in any form could be a notable concern as it can expose investors to return volatility that can negatively impact the overall performance of the Fund. Mitigation: Almanac has demonstrated the ability to deliver strong returns despite the risks associated with constructing a concentrated portfolio. Furthermore, the acquired companies will continue to make real estate investments, which in many cases provides further diversification.

2. Reliance on Key Personnel. The success of the Fund will be largely dependent upon the participation of the firm’s principals. If any of the principals cease to be actively involved in the activities of the Fund, the performance is likely to be negatively impacted. Of critical importance to the Fund are Messrs. Kaplan, Aloian, Silberstein, and Hakimian; these four individuals are covered in the key person provision. Although the key members are still intact after many years with the firm, retention of important personnel should be monitored closely. Mitigation: The key man provision states that if at any time during the Investment Period any two of Matthew Kaplan, D. Pike Aloian, Andrew Silberstein, and Justin Hakimian are no longer devoting substantially all of their business time to the Fund, the investment period will be suspended until LPs decide what is the next best course of action. This provision should provide LPs protection in case Almanac has issues regarding turnover of key personnel.

3. Exit Uncertainty of Entity Level Investments. Almanac's entity level investment strategy may result in more difficulty in exiting investments than property level investments. Accordingly, Almanac's assumptions about exit strategies may prove to be incorrect as exits may be delayed or underwritten proceeds are not achievable. Mitigation: Entity level investments may be less liquid than property investments; however, Almanac has a track record of achieving exits and realizing strong returns. CA Student Living, a Fund VII investment, is projected to be the next near-term realization (ARS VII) and is expected to achieve mid-30’s IRR and a 1.63x multiple.

4. Development or Redevelopment Risk. The Fund may invest in portfolio companies that pursue

development or redevelopment projects. These types of investments will include risks normally associated with such activities that will ultimately affect investment performance at the Fund level. There are no Fund restrictions on development or redevelopment exposure at the underlying portfolio company level. Mitigation: Previous funds have not had a significant concentration of development exposure. Development was less than 5% in ARS VI and approximately 10% in ARS VII.

5. Leverage. Almanac does not intend to utilize leverage at the Fund level. However, underlying portfolio companies will typically utilize leverage between 50%-70%. The use of leverage with any real estate investment magnifies risk. Leveraged investments are subject to increased exposure to adverse economic factors, such as a significant rise in interest rates or a severe downturn in the economy. Mitigation: No debt at the Fund level is a conservative approach. Further, investment level leverage of 50%-70% is reasonable.

SJCERA ARS VIII

PAGE 7

IV. COURTLAND DUE DILIGENCE ACTIVITIES

Courtland has completed the following due diligence activities for the evaluation of the Fund:

Reviewed the presentation materials and offering memoranda prepared by Almanac;

Reviewed the Courtland’s Due Diligence Questionnaire completed by Almanac;

Courtland professionals met with Almanac senior professionals in Courtland's Cleveland office;

Performed a detailed review of the Almanac track record;

Evaluated the appropriateness of the strategy given current market conditions;

Courtland conducted an on-site meeting in Almanac’s office in October 2017.

V. FIRM OVERVIEW

Almanac Realty, formerly known as Rothschild Realty, is a real estate investment advisor to public and private institutional pension plans, endowments, and foundations. From the time of its founding in 1981, it has invested into a wide array of real estate companies via platform and corporate investments. Since 1996, its primary investment activity has consisted of making private placements into public and private real estate operating companies through its Almanac Realty Securities private equity fund series. Almanac, the successor entity to Rothschild Realty, was formed in March 2007 and is owned by five partners, Matthew Kaplan, John McGurk, Pike Aloian, Andrew Silberstein, and Justin Hakimian (collectively, the "Managing Principals"). The majority of the team has worked together for over 25 years, undertaking real estate investments and acting as real estate investment managers on a large number of real estate and securities transactions. There have been no recent changes in Almanac’s ownership and none are contemplated in the immediate future. The Managing Principals form the leadership of a 29-person team that has a significant combination of real estate, capital markets, and corporate management expertise. These skills are essential to the successful implementation of the Fund's investment objectives. These professionals have experience in real estate investment management, including acquisition, development, leasing, construction, underwriting, and financing. Almanac has broad capital markets expertise in corporate financing and restructuring, equity underwriting, debt financing, and mergers and acquisitions. In addition, the Managing Principals have experience managing and building successful organizations. Almanac professionals have collectively occupied over 50 board seats. Almanac has a strong track record across 21 years, eight funds, and approximately $4.4 billion of committed capital and 39 portfolio companies. Across the entire ARS fund series, Almanac has generated a 12.9% net IRR on total realized and unrealized investments. To date, approximately $3.0 billion has been fully realized and generated a gross IRR of 15.7%.


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The following table details the approximately $1.5 billion current assets under management as of December 31, 2016. Summary of Assets under Management by Fund

Source: Almanac Almanac has a total of 29 employees. The following table outlines biographies of the Partners.

Partner Biographies

Matthew W. Kaplan

Managing Partner

Mr. Kaplan joined the Manager in 1992 and is responsible for overseeing the activities of Almanac and is the Portfolio Manager of the ARS Fund Series. Mr. Kaplan is a director of Winter Properties, Allegro Holdings and Westcore Properties. Mr. Kaplan has been a director of RXR Realty, National RV Communities, T. Wall Holdings, Ambassador Apartments Inc., CNL Financial Services, CNL Hospitality Properties, Encore Hospitality, Parkway Properties Inc. and WNY Group. Prior to joining Almanac, he served in the Corporate Finance Department of Rothschild Inc. from 1990 to 1992 and was a management consultant at Touche Ross & Co. from 1988 to 1990. Mr. Kaplan has been a member of the Urban Land Institute and of the Institutional Investor Council to the National Association of Real Estate Investment Trusts Board of Governors. Mr. Kaplan graduated cum laude from Washington University in 1984 and received an MBA from The Wharton School in 1988.

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Partner Biographies

John D. McGurk

Partner

Mr. McGurk founded Rothschild Realty Inc., the predecessor to Almanac, in 1981. He is a director of Advance Realty Group, Denholtz Holdings, JH Real Estate, Allegro Holdings, Merritt Properties, Shaner Hotel Holdings, T. Wall Holdings and Welsh Property Trust. He is a member of the National Association of Real Estate Investment Managers, the Urban Land Institute, Pension Real Estate Association, and the Real Estate Board of New York. Mr. McGurk graduated from Loyola University in 1965 and received an MBA from the University of Southern California in 1971.

D. Pike Aloian

Partner

Mr. Aloian joined Almanac in 1988 and is responsible for the origination, economic analysis, closing and on-going review of Almanac’s investments. Mr. Aloian is a director of Advance Realty Group, Denholtz Holdings, Drawbridge Realty Trust, EastGroup Properties, Merritt Properties, Shaner Hotel Holdings, and BSR Trust (formerly known as Summit Housing Partners). From 1980-1988, he was a vice president at The Harlan Company, where he was responsible for property acquisition, development and financing. He has also served as an adjunct professor of the Columbia University Graduate School of Business. Mr. Aloian graduated from Harvard College in 1976 and received an MBA from Columbia University in 1980.


Partner

Mr. Silberstein joined Almanac in 2009 and is responsible for the origination, structuring, and management of Almanac’s investments. Mr. Silberstein is a director of Winter Properties, RAIT (NYSE:RAS), WPT Industrial Real Estate (TSX:WIR), NRES Holdings and Westcore Properties. From 2004 through 2008, he served as the Chief Investment Officer and Chief Operating Officer for Stoltz Real Estate and during the same period established AMS Real Estate Partners. From 1994 through 2004, Mr. Silberstein worked in real estate investment banking and private equity, first at Bear Stearns and then Morgan Stanley. He has been a member of National Association of Real Estate Investment Trusts, the Urban Land Institute, ICSC and the Real Estate Roundtable, and the board of directors of RXR Realty. Mr. Silberstein graduated from Yale University in 1989 and received an MBA from New York University Stern School of Business where he was a Glucksman Fellow in 1995.

Justin J. Hakimian

Partner

Mr. Hakimian joined Almanac in 2005 and is responsible for the origination, economic analysis, transaction execution, and ongoing review of the investments of Almanac’s funds. From July 2001 to April 2005, he was an Associate in the Equity Research department at Morgan Stanley, with coverage of oil & gas companies. He currently serves on the boards of CA Student Living, HRIP Holdings and Vanta Commercial Properties (formerly known as T. Wall Properties). He has also served on the boards of Drawbridge Realty Trust and JH Real Estate. He has been a member of Urban Land Institute and International Council of Shopping Centers. Mr. Hakimian graduated from the University at Albany in May 2001 with a Bachelor of Science in Finance.

Henry C. Herms

Chief Financial Officer

Mr. Herms joined Almanac in 2012 and is responsible for financial and investor reporting, tax compliance, internal accounting, monitoring regulatory compliance and filings, and treasury management. From 1997 to 2012, he was employed by Lazard Frères & Co., where he served as the Controller and Treasurer for Almanac of a series of real estate private equity and mezzanine debt funds. From 1989 to 1997, he was employed by Arthur Andersen LLP, where as an experienced manager he was responsible for audit and consulting engagements for organizations in the real estate, hospitality and construction industries. Mr. Herms is a Certified Public Accountant licensed in the state of New York, and a Chartered Global Management Accountant. He is a member of the American Institute of Certified Public Accountants and the National Association of Real Estate Investment Trusts. Mr. Herms graduated magna cum laude from Adelphi University in 1989.

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VI. INVESTMENT STRATEGY The Fund’s strategy is to invest growth capital via private placements of debt and equity in high-quality real estate companies that are active in the ownership, management, and enhancement of real estate in the United States. The investment strategy will primarily fall within the following two investment categories: (1) structured investments and (2) common equity investments.

Investment Types Structured Investments Common Equity Investments

Debt or preferred equity convertible into common equity

Debt or preferred equity, sometimes including equity warrants or equity-like participation rights

Secondary and unregistered offerings and private placements of debt and equity

Common equity of a real estate company Joint venture investments in conjunction with

a real estate company into which the Partnership has invested

Management buy-outs

Almanac's approach is premised on investing in companies with high-quality management teams that have long-standing and proven track records. The targeted companies are focused on generating recurring real estate cash flow and have a demonstrated competitive advantage with a real estate niche. Almanac focuses on a pricing discipline that is based on a company's net asset value and projected unleveraged real estate returns. Almanac expects that most of the Fund's portfolio investments will be structured with a five to eight-year holding period. Almanac believes that this time period will allow a portfolio company to realize its business plan and capture enterprise value. Exit strategies include a sale of the equity stake or debt position, a sale or IPO of the portfolio company, or a partial or complete liquidation or recapitalization of the assets of the portfolio company. The Fund’s investment objective is to target a net annual return of 12% or more and a net investment multiple of 1.5x - 1.75x. Importantly, Almanac expects to generate approximately half of the total return from current yield distributed quarterly of 6%-9% gross. The remainder of total return will come from capital gains generated by growing a company's equity value through acquiring, developing, and/or repositioning real estate assets. Almanac will allow conservative leverage levels of 50%-70% at the underlying portfolio company level with no fund level leverage.

Source: Almanac

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INVESTMENT PROCESS Transaction Sourcing. Many of the 39 investments made by Almanac’s prior funds into real estate companies were internally sourced through the Managing Principals and their extensive contacts and relationships within the real estate ownership, financial services, and private equity communities. Further, the Managing Principals and investment team maintain extensive relationships with intermediaries including investment banks, mortgage brokers, and financial advisors. Opportunity Assessment. The Managing Principals combine a macro-level understanding of real estate markets and economics, with a familiarity of industry participants to identify investment opportunities. In evaluating an investment, Almanac undertakes extensive due diligence of a company’s management team, business plan, internal controls, assets (including site visits to substantially all of the company’s real estate assets), and corporate structure. This process serves as a basis for financial analysis and provides the information driving the assumptions underlying its return projections. Thorough due diligence enables Almanac to make an informed assessment of the real estate opportunity, the business strategy to take advantage of the opportunity, and management’s ability to implement the strategy. Transaction Execution. The negotiated structure of each investment aims to optimize the balance between company needs, capital market dynamics, and the investment objectives of Almanac. The team has completed 39 transactions and has established procedures and documentation which have allowed for the quick and efficient execution of transactions. Investment Management. Almanac believes that investment management is one of the key components of realizing the maximum potential of any investment while helping to mitigate risk. To accomplish proper management, Almanac seeks to actively participate on the board of directors or other similar governance committee of most of its portfolio companies and maintain a continuous dialogue with company management regarding strategic options and opportunities for value creation. The experience of the Managing Principals and professional staff in real estate operations and investment, capital markets, and corporate management allows for meaningful contribution to management teams and boards of directors on acquisitions, development, leasing, underwriting, and financing of real estate and real estate companies. Continuous communication with contacts throughout the real estate and financial communities allows Almanac to recognize potential value enhancement and exit opportunities. Realization of Return. Almanac expects that most of the Fund’s portfolio investments will be structured with a five to eight-year holding period. Almanac believes that this time period will allow a portfolio company to realize its business plan and capture enterprise value. Exit strategies include a sale of the equity stake or debt position, a sale or IPO of the portfolio company, or a partial or complete liquidation or recapitalization of the assets of the portfolio company.


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VII. TRACK RECORD Almanac has a strong track record across 21 years, eight funds, and approximately $4.4 billion of committed capital and 39 portfolio companies. Across its entire fund series dating back to 1996, Almanac has generated a 12.9% net IRR on total realized and unrealized investments. Since inception, Almanac has recognized a loss on only one realized transaction: Denholtz (-17.8% IRR and 0.6x multiple). Of the unrealized investments, only one is marked to generate a multiple of less than 1.0x. Summary Performance Track Record

Source: Almanac as of March 31, 2017

The Courtland Partners Index (“CPI”) refers to investments reported in Courtland's Quarterly Performance Measurement databases. The track record for the four prior vehicles sponsored by Almanac has been favorable in comparison to all real estate of the same vintage in the CPI (the older funds do not have a meaningful comparable universe of peer funds). ARS IV and ARS V are currently first quartile performers. ARS VI is currently a second quartile performer, while ARS VII is also a second quartile performer in its relatively early stages.


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VIII. FEE COMPARISON The following table provides a fee comparison of the Fund relative to peer value-add funds. The base management fee of 1.25% is relatively favorable compared to other value-add funds, which typically have management fees of 1.25%-1.50%. Notably, Almanac does not charge management fees until the final closing has occurred. The 8% preferred return is considered market for peer value-add funds. The Fund incentive fee is based on overall fund performance, so the firm does not receive distributions until after the Fund is completely liquidated. Overall, the fee structure is relatively attractive given the management fee structure.

FUND SIZE MANAGEMENT FEES/PROMOTED INTERESTS TARGET

RETURN

ARS VIII $1.5B

Management Fee: 1.25% on committed and invested capital. Incentive Fee: 8% preferred return, then 50/50 split until the GP has received 20% of total distributions (“catch-up”), then 80 (LP)/20 (GP).

15%, gross

Fund I $1.0B

Management Fee: 0.75% on uncalled committed equity provided that upon the date that any commitments are contributed to the Fund, the fee will be 1.5% on invested equity. 1.5% on invested capital thereafter. Incentive Fee: 8% preferred return, then 40/60 split until the GP has received 20% of total distributions (“catch-up”), then 80 (LP)/20 (GP).

15% gross

Fund II $1.0B

Management Fee: 1.0% on committed and 1.5% on invested capital. Incentive Fee: 8% preferred return, then 50/50 split until the GP has received 20% of total distributions (“catch-up”), then 80 (LP)/20 (GP).

14-15% gross

Fund III $750M

Management Fee: 1.5% on committed and invested capital. Incentive Fee: 9% preferred return, then 60/40 split until the GP has received 20% of total distributions (“catch-up”), then 80 (LP)/20 (GP).

15% gross

IX. MARKET CONDITIONS

U.S. real GDP expanded at an annual rate of 1.4% in first quarter 2017, according to the Bureau of Economic Analysis. This compares to fourth quarter 2016 GDP growth of 2.1%. 545,000 new jobs were added during the first quarter, compared to 510,000 in fourth quarter 2016 and 703,000 in third quarter 2016. The unemployment was flat at 4.7% in comparison to 4.7% at the end of December. Rates on the 10-year U.S. Treasury decreased 19 basis points from 2.45% on December 31, 2016 to 2.26% on March 31, 2017. The Atlanta Fed’s GDPNow model projects a 2.9% annualized real growth rate of the U.S. economy for second quarter 2017 as of June 26, 2017. First quarter transaction volume according to Real Capital Analytics was $126.2 billion across the five main property types. The past four quarters have seen a slight rise in volume after a record-high volume of transactions ($152.6 billion) in fourth quarter 2015. Industrial transactions have decreased by 14% in the trailing

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12 months year over year but are still well above their 10-year average transaction volume. Similarly, retail transactions are down 9% in the trailing 12 months year over year but are also above their 10-year average. Apartment and office transactions are largely flat in the trailing 12 months year over year. Overall U.S. transaction volumes on a rolling-four-quarter basis are down 2% at $456 billion compared to the year ago average of $467 billion. The $490 billion in transaction volume in 2015 is the highest trailing twelve-month transaction volume since 2007 when transaction volume was $515 billion. Industrial properties recorded the largest total one year returns at 12.2% while office had the lowest one-year return at 5.7%. Over the previous 10-year however, the returns on all asset types were within 2.3% of each other.

NCREIF Property Index – Returns

The overall NCREIF Property Index (“NPI”) cap rate is at its all-time low as is the cap rate on Industrial and Retail properties. Apartment and Office cap rates are only slightly off their all-time lows. The NPI annualized cap rate moved up slightly in first quarter 2017 to 4.60% from 4.56% in fourth quarter 2016. Relative to the 10-Year U.S. Treasury yields of 2.40%, the cap rate spread increased to 2.20%. The first quarter NPI net operating income (NOI) growth was at 5.3%, 1.8% above the ten-year average growth rate of 3.5%. Industrial NOI growth of 6.3% led the property types with Industrial significantly above its 10-year average. The NPI vacancy rate was 7.0% which is slightly up from its 10-year low of 6.8% reached in fourth quarter 2016. Similarly, Industrial vacancy is up slightly to 4.2% from its 10-year low of 3.9% reached in fourth quarter 2016. Apartment vacancy is at 6.5% which is also its 10-year average. Retail vacancy is 7.5% which is 0.9% below its 10-year average of 8.4%. Commercial mortgage debt availability is tightening a bit as banks tighten underwriting standards and the market embraces regulatory changes. CMBS issuance of $15.2 billion in first quarter 2017 was the smallest issuance in a first quarter since 2012. The significant decline in CMBS issuance in 2016 from 2015 indicates that it is losing market share to other sources of real estate debt issuers such as insurance and life companies. Low supply growth for retail and office property types has been a major differentiator in the current recovery. Apartment and industrial deliveries were quite robust in 2015 and 2016 but have yet to put significant upward pressure on vacancy for apartment properties and industrial properties. Vacancy for both continue to be low

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by historical standards with industrial reaching its all-time low in fourth quarter 2016 despite significant new product coming to market. Certain markets are seeing new supply of apartments put downward pressure on NOI growth, with the most notable being New York City. But outside of New York City, most markets are still experiencing strong positive NOI growth. The Industrial market continues to grow NOI significantly despite significant new deliveries. The apartment market appears to have hit an inflection point as the rate of NOI growth is slowing after growing very rapidly for the past 7 years although the trailing twelve-month NOI growth rate of 5.4% represents historically strong growth.

Note: REIS only reports Industrial statistics on an annual basis. Apartments Apartment annual returns as of first quarter 2017 averaged 6.7% according to NCREIF NPI. For the 12 months ended March 2017, returns were the highest in Oakland (+11.1%), Portland (+11.0%), and Santa Ana (+10.3%). On the other end of the spectrum, Houston (-3.1%), San Francisco (+3.0%), and New York (+4.7%) had the lowest annual total returns. Apartments have been the beneficiary of strong NOI growth since 2010, well above the average growth rate between 2000 and 2010. As a result of this strong NOI growth, new supply has been coming to market at a historically rapid pace hitting a record of 2.0% of existing inventory in 2015 with 2016 slightly off the 2015 mark. The result of new supply hitting the market will have an effect on the prices apartment owners can charge for rent and in turn the NOI generated by apartments. NOI growth was 4.7% in 2016 compared to 10.3% in 2015 and 9.8% in 2014 so the rate of NOI growth is slowing. What remains to be seen is at what growth rate NOI growth will bottom. Construction lending for apartments has been tightened as the market anticipates significant new product being delivered to the market which is a positive sign for future NOI growth as new supply is expected to slow. But there is still significant supply in the pipeline to be delivered over the next year or two. Industrial Industrial annual returns as of first quarter 2017 averaged 12.7% according to NCREIF NPI. For the 12 months ended December 2016, returns were the highest in San Jose (+20.9%), Oakland (+18.5%), and Seattle

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(+17.0%). On the other end of the spectrum, Houston (+7.1%), Baltimore (+7.5%) and Miami (+7.9%) had the lowest annual total returns. Industrial NOI growth has been extremely strong in comparison to its historical trend since 2011. As shown in the chart below, there was near zero net NOI growth between 2000 and 2014 in NPI tracked industrial properties. Since 2010, NOI has grown at a much faster pace. This rapid pace of NOI growth does not appear to be abating. Office New office supply is generally minimal aside from a few high-growth and technology markets including Dallas, Houston, and Phoenix. San Francisco, New York, and West Los Angeles remain healthy, although there are concerns of a broader tech sector slowdown. Uncertainty exists in energy markets such as Houston, where a shadow space market also exists. Nationally, fourth quarter occupancy was 88.8% and was up 67 basis points year-over-year. Office annual returns as of first quarter 2017 averaged 5.7% according to NCREIF NPI. For the twelve months ended March 2017, returns were the highest in Portland (+12.4%), Cambridge (+11.3%), and Dallas (+10.9%). On the other end of the spectrum, Houston (-3.2%), Miami (+2.5%, and Washington D.C. (+3.7%) had the lowest annual total returns. Office NOI growth has been quite strong since 2012. It is notable how much of a drawdown in NOI was experienced in the early 2000s in comparison to the NOI drawdown during the GFC which was much less severe. The asset price drawdown during the GFC was largely attributable to the very large expansion in cap rates which offset the large cap rate compression prior to the GFC. Retail Higher quality retail centers continue to perform well, particularly those that offer an experience not easily replicated through internet shopping. Minimal supply growth benefits the sector. Tenant sales growth has been volatile as internet shopping pressures are mounting. Retail bankruptcies have significantly increased which has put downward pressure on retail asset prices. Houston and Las Vegas led the retail markets with total returns of 10.1% and 10.0% year-over-year as of first quarter 2017. This compares to 7.6% for the aggregate retail NPI. Oakland and Orlando were the laggards with returns of 5.8% and 6.4%, respectively. According to NCREIF NPI, all retail subtypes saw positive returns for the four quarters ending first quarter 2017. Neighborhood Centers performed best at 8.9% followed by Super Regional malls at 8.4% and Community retail at 7.1%. Retail NOI was barely affected by the recession in the early 2000s and had a modest drawdown during the GFC. It has grown at a 3.14% annualized rate since 2000. Housing U.S. housing starts were at an annualized rate of 1.238 million in the first quarter of 2017. While housing starts have greatly recovered from the annualized rate of approximately 0.5 million during the GFC, they are still significantly lower than they were prior to the GFC when they topped out at almost twice the current rate. The Case-Shiller 20 city composite home price index was at 198.42 in April 2017 and grew 5.6% year over year. House prices have been steadily rising since 2012 and are 4.0% below the all-time peak of 206.65 reached in March 2006.

COURTLAND PARTNERS, LTD


EVALUATION OF A PROPOSED INVESTMENT IN

STOCKBRIDGE VALUE FUND III, L.P.

OCTOBER 2017

LOS ANGELES CLEVELAND LONDON

SJCERA STOCKBRIDGE VALUE III

PAGE 2


STOCKBRIDGE VALUE FUND III, L.P.

TABLE OF CONTENTS

I. EXECUTIVE SUMMARY ................................................................................................................... 3

II. COURTLAND RECOMMENDATION .............................................................................................. 4

III. ADVANTAGES AND RISK/CONCERNS SUMMARY ..................................................................... 4

IV. COURTLAND DUE DILIGENCE ACTIVITIES .............................................................................. 7

V. FIRM OVERVIEW ............................................................................................................................. 7

VI. INVESTMENT STRATEGY ............................................................................................................. 11

VII. TRACK RECORD ............................................................................................................................ 14

VIII. FEE COMPARISON ........................................................................................................................ 15

IX. MARKET CONDITIONS ................................................................................................................ 15


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I. EXECUTIVE SUMMARY

Courtland Partners, Ltd. (“Courtland”) prepared the following evaluation of Stockbridge Value Fund III, L.P. (the “Fund” or “Fund III”), in consideration of a potential investment by San Joaquin County Employees’ Retirement Association (“SJCERA”). The table below summarizes the terms of Fund III.

SUMMARY OF INVESTMENT TERMS

Investment: Stockbridge Value Fund III, LP, a Delaware limited partnership.

General Partner: Stockbridge Value Fund III, LLC, (the “GP”) a Delaware limited liability company.

Manager: Core and Value Advisors, LLC, Delaware limited liability company, dba Stockbridge CVA (“Stockbridge”).

Fund Size: $400-$500 million target. $247.5 million closed to date.

Closings: First closing occurred in April 2017. The final closing will be one year after initial. Investment Period: Two years from the final closing.

Term: Five years from the end of the Investment Period with two, one-year extension options.

Leverage: Maximum of 65%.

Fund Strategy: The Fund will invest in a portfolio of multifamily, retail, industrial, and office properties across the U.S. seeking value-added returns.

GP Commitment: The lower of 2% of capital commitments or $5 million. Co-Investment Opportunities:

May be made available.

Limitations: No more than: 20% in any one asset; 25% in any one MSA; 60% in any one property type; or 15% in development activities.

Risk/Return: Value-Add.

Expected Return: 12%-15% gross total return.

Preferred Return: 8%.

Promote/Waterfall: 80 (LP)/20 (GP) split after 8%. Based on overall Fund performance. No catch-up.

Clawback: Not applicable, as the carried interest distributions will not be made until the Fund is fully liquidated.

Management Fee:

For commitments during the investment period and aggregate invested capital thereafter:

150 bps on investors under $50 million, and 125 bps on investors $50 million and up.

Additional Fees: None. Key Person: Douglas Sturiale.

Control Rights/ Termination:

The LPs, by a majority-in-interest vote, may remove the GP for a cause event that has not been cured. The LPs, by a vote of at least 75% in interest, may also remove the GP for any reason other than a cause event.

Placement Agent: None.


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II. COURTLAND RECOMMENDATION SUMMARY After consideration of the relative advantages and risks/concerns, Courtland recommends that SJCERA consider an investment in Stockbridge Value Fund III, LP in an amount up to $50 million, subject to legal review and the final negotiation of terms and conditions. The Fund provides the opportunity to invest with a manager that has provided strong relative returns. Throughout the course of our current due diligence on Stockbridge, the sponsor has displayed the following strengths which support our positive view:

Tactical, Flexible Strategy; Favorable Demographics Underpinning Strategy; Demonstrated Sale Discipline; Track Record; Strong Income Return; Experienced Management Team; Alignment of Interests; and Attractive Fee Structure-No GP Catch-up

III. ADVANTAGES AND RISK/CONCERNS SUMMARY

ADVANTAGES 1. Tactical, Flexible Strategy. The Fund has the flexibility to adjust its strategy to changing market

conditions within the four major property types. Currently, the Manager is focused on investing in (i) multifamily properties, particularly suburban markets proximate to city centers that cater to tenants who have been priced out of the “top” of the urban market, and (ii) industrial properties, specifically “last mile” facilities that serve compressed delivery times in the supply chain process, resulting from the impact of e-commerce on industrial use. In addition, the Fund will target retail investments in trade areas experiencing high population growth and above average household income, where older grocery-anchored retail properties can be repositioned to better serve the community, as well as office properties in “out of favor” suburban markets that have proven historically strong occupancy and fundamentals in down market cycles.

2. Favorable Demographics Underpinning Strategy. Stockbridge’s value-add series has a proven track record targeting markets on the West and East Coasts and along the Sunbelt region (Arizona to Florida). Approximately 92% of the series’ investments have been in this region. The Fund will target these same markets. The Sunbelt Region is attractive to residents and businesses, due to a lower cost of living, state tax incentives, temperate weather, and a high quality workforce. Furthermore, the Fund will strategically evaluate and target markets that have proven historically resilient during the Global Financial Crisis and other periods of market turmoil as well as markets that have demonstrated exceptional risk adjusted returns, population growth, job creation, and corporate relocations.

3. Demonstrated Exit Discipline. Stockbridge returned all Fund I capital contributions within four

years of investors’ initial investment in the fund. As of March 31, 2017, cumulative distributions since inception reflect a 124% return of cumulative capital called for Fund I. Stockbridge has demonstrated its ability to deploy capital, successfully execute the investment strategy, exit investments, and provide distributions to investors, rather than hold on to assets to increase management fees. Consistent with the Fund’s predecessors, Fund investments will be underwritten to an average of three to five year hold periods, with dispositions following the completion of the value-added strategy. It should be noted that Fund II is fully invested but is largely unrealized due to its recent vintage.

4. Track Record. The performance for the two prior value-add funds sponsored by Stockbridge has

been favorable on both an absolute and a relative basis. Fund I (2011 vintage) is 32% realized, and has


PAGE 5

ADVANTAGES delivered an inception to date net IRR of 20.6% and a net equity multiple of 1.76x. Fund II (2014 vintage) is 100% unrealized but has delivered an inception to date net IRR of 14.4% and a net equity multiple of 1.25x. In comparison to peer value funds of the same vintage in the Courtland Partners Index, Fund I and Fund II currently rank in the second quartile.

5. Strong Income Return. Approximately 50% of the total return for the Fund is expected to be from

income. The Manager has demonstrated its ability to create strong income returns. As of March 31, 2017, Fund II has generated a 9% gross income return since inception. A significant income return component increases the transparency and decreases the volatility of total return. This is particularly important at the current point in the market cycle.

6. Experienced Management Team. The nine Investment Committee (“IC”) members average of 30

years of real estate experience and have collectively been responsible for the acquisition, development, management, and/or sale of more than $50 billion of real estate assets throughout their careers. In addition, the IC members form a cohesive team of individuals who have worked together for an average of 21 years. The IC is supported by the broader firm, which, at 74 employees, presents a full complement of expertise in acquisitions, dispositions, portfolio management, and asset management.

7. Alignment of Interests. The GP will make an investment of the lower of 2% of capital commitments

or $5 million to the Fund. Stockbridge’s principals will personally contribute a significant portion of this capital to the Fund alongside investors. Stockbridge’s principals, as well as other firm employees, will also participate in the carried interest distributions. As the carried interest is calculated on the overall performance of the Fund, Stockbridge will not receive any distributions until after the Fund is completely liquidated.

8. Attractive Fee Structure-No GP Catch-up. The Fund does not have a catch-up, and the incentive

fee is based on overall fund performance, so the firm does not receive distributions until after the Fund is completely liquidated. Overall, the fee structure is attractive given the management fee structure and back-ended performance fee with no catch-up.

RISKS/ CONCERNS

1. SEC Examination Findings/Rotation Policy. The U.S. Securities and Exchange Commission (“SEC”) examined the Manager in 2015 and issued multiple findings related to the Manager’s Investment Allocation Policy (the “Policy”). Notably, these findings included that the Policy was inaccurate due to a material change in practice that was not reflected in the Policy, that an error had occurred in connection with the Policy’s rotation list, and that the Policy’s methodology could create a potential for “cherry picking.” Mitigation: The Manager’s separate accounts generally do not compete with the value funds. After establishing the Policy, the Manager later decided to apply the Policy only in the case of contested investments, such that, in the case of uncontested investments, a client would not be moved to the bottom of the rotation list. Stockbridge analyzed historical investment allocations and found that the impact of this modified interpretation was minimal. The Manager has since revised the Policy to accurately reflect current practices. In addition, the Manager self-identified and corrected the error once it was discovered, and it was confirmed that no investments were improperly allocated as a result. Also, Stockbridge has significant controls to mitigate any risk of “cherry picking.”

2. Operating Partner Risks. The Fund may co-invest with third parties through partnerships, joint

ventures, or other entities, thereby acquiring less than 100% of the ownership interests in certain investments. Stockbridge historically utilizes operating partners approximately 50% of the time, and anticipates continuing to do so in the Fund. Such investments may involve risks not present in investments where a third party is not involved, including the possibility (i) the Fund and the operating partner may reach an impasse on a major decision that requires the approval of both parties; (ii) the


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RISKS/ CONCERNS operating partner may have economic or business interests or goals that are inconsistent with those of the Fund; (iii) the operating partner may encounter liquidity or insolvency issues or may become bankrupt; (iv) the operating partner may be in a position to take action contrary to the Fund’s investment objective; (v) the operating partner may take actions that subject the property to liabilities in excess of those contemplated; or (vi) in certain circumstances the Fund may be liable for actions of its operating partners. Mitigation: Stockbridge intends to structure its agreements so that the Fund will have control over major decisions, and, to create an alignment of interests, require an equity co-investment from the operating partner and include an incentive fee for the operating partner.

3. Development Risk. Development investments pose additional investment risks, including zoning, entitlement, construction, and lease-up risk. Mitigation: The Fund may only invest up to 15% of commitments in development. The Manager has stated that it does not expect to pursue development in the Fund, and that it would not invest in multifamily or office development.

4. Competition and Oversupply in Multifamily. The growth in demand for apartments has caused a

large increase in units delivered over the past several years, which has softened rental growth in many markets. New supply is expected to be delivered over the next few years as well. Mitigation: The Fund is specifically focused on more affordable garden-style multifamily located in suburban markets outside of the CBD, focusing on renters who have been priced out of new luxury developments in city centers. Further, the Fund will be diversified across property types.

5. Increase in Fund Size. The Manager is targeting up to $500 million in capital commitments, which is a considerable increase from Fund II, which had total commitments of $320 million. As fund sizes increase significantly, there is increased concern that a manager may be improperly incentivized to deploy capital quickly and may lower its underwriting standards in order to put more capital to work during the investment period. In addition, during a downturn it may be harder to manage wide-scale vacancy and workout situations with a larger portfolio that is spread out geographically. Mitigation: The Manager has proportionately increased its employee base to support its growing assets under management (“AUM”); in 2009, the Manager had 26 employees and $2.1 billion in AUM; as of 2017, the Manager employs 74 employees to cover its $6.5 billion in AUM. In addition, the General Partner’s co-investment in the Fund, as well as the fund-level incentive fee, should mitigate any concerns relating to performance.

6. Leverage. By utilizing leverage, there is the risk that the leverage can magnify losses if the investment market conditions deteriorate and underlying property values decline. The Manager may make acquisitions up to 65% loan-to-value of the Fund’s aggregate investments. Leverage is used to enhance the Fund return but also adds the risk of accelerated losses. Mitigation: Stockbridge has extensive experience in arranging and structuring financing for the types of transactions contemplated by the Fund. Notably, Fund II has current leverage at 58% and Fund I has current leverage at 42%.



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IV. COURTLAND DUE DILIGENCE ACTIVITIES

Courtland has completed the following due diligence activities for the evaluation of the Fund:

Reviewed the Courtland Real Estate Investment and Operational Due Diligence Questionnaire,

Private Placement Memorandum, and presentation materials provided by Stockbridge;

Met with Stockbridge in its San Francisco office in January 2017;

Conducted follow-up phone calls with the Manager to discuss the strategy, pipeline, and historical

transactions;

Evaluated the appropriateness of the Fund’s strategies given current market conditions;

Compared the strategy and track record to other value-add opportunities in the marketplace; and

Compared the fee structure of the Fund to other offerings in the marketplace of similar

risk/return profile.

V. FIRM OVERVIEW Stockbridge CVA is an affiliated investment adviser of Stockbridge Capital Group, LLC. Stockbridge has two platforms: (1) a core and value-add platform and (2) an opportunistic platform. As of June 30, 2017, Stockbridge’s core and value-add platform has $6.5 billion of assets under management, with 33 million square feet of real estate and 6,694 multifamily units. Stockbridge’s opportunistic platform has $4.3 billion of assets under management, including four million square feet of real estate and 44,600 manufactured home sites. Founded in July 2009, the Manager is headquartered in San Francisco, with additional offices in Atlanta, Chicago, and New York. The Manager is a Delaware Limited Liability Company privately held by its senior management and Stockbridge Capital Group. The Manager is registered with the U.S. Securities and Exchange Commission. The Manager’s organizational chart is provided below.

Source: Stockbridge


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The following table provides the job function, number of employees, average years of experience, and average years of tenure for the Manager’s 74 employees.

Job Function Number of Employees

Average Years Experience

Average Years Tenure

Legal, Compliance, and Risk Management 3 7 5Portfolio Managers 12 14 4Marketing 3 9 1Accounting and Reporting 13 8 4Acquisitions 12 16 5Asset Management 15 12 3Corporate Finance and Operations 6 17 10Firm Management 1 35 10Administrative Staff 7 N/A 6Total Firm Employees 74 12 5

Source: Stockbridge The Manager’s IC is comprised of nine Managing Directors with an average of 30 years of real estate experience. The following table provides the professional biographies for Stockbridge’s Managing Directors, which includes the Fund’s Key Man, Douglas Sturiale.

Professional Biographies

Stephen M. Steppe, Managing Director, San Francisco

Steve Steppe focuses on acquisitions and strategic client relationships, and chairs the Investment Committee for the firm’s core and value-added business lines. Mr. Steppe was the founding member of Stockbridge’s core and value-added business lines, and served as Firm Co-Head from 2007 through 2015. During this time, Mr. Steppe led the growth of Stockbridge’s core and value business from inception to over $5 billion of assets under management. Mr. Steppe has more than 40 years of real estate industry experience. He was formerly Managing Partner and Chairman of RREEF North America, and an active member of all of the firm’s key North American investment committees and fund boards as well as its Global Securities Strategic Investment Committee and Global Investment Committee (RGIC). Mr. Steppe began his career in commercial real estate in 1972, and he joined RREEF in 1986 as a Partner responsible for acquisitions in the Western United States. In 1990, Mr. Steppe took over as head of RREEF’s Client Relations and Marketing Department and, for the remainder of his tenure, served as a member of the firm’s Investment and Policy Committees in North America. In April 2003, Mr. Steppe was named RREEF’s Managing Partner and oversaw strategic direction and management of the firm’s business throughout North America. Mr. Steppe is a former chairman of the Pension Real Estate Association (PREA). He is a graduate of the University of Arizona.

Mark D. Carlson, Managing Director, San Francisco

Mark Carlson joined Stockbridge in 2007, and focuses on property acquisitions in the Western United States. Mr. Carlson has experience in real estate acquisition, disposition, leasing and management involving all major property types. Prior to joining Stockbridge, he was a Partner and Managing Director of RREEF, where he managed the firm’s San Francisco-based acquisitions group and was a member of its North America Investment Committee. Beginning in 2003, Mr. Carlson assumed direct responsibility for the acquisition of RREEF’s office, industrial and retail investments in Southern California, and closed over $3 billion in transactions during the succeeding four years. Mr. Carlson joined RREEF in 1994 in the Property Management Department. From 1996 to 2000, he oversaw the Dispositions Department, which closed over 400 transactions with a total cost of $6 billion. From 2000 through 2002, he was part of the Portfolio Management Department, responsible for developing and implementing investment strategies for


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Professional Biographies specific clients. Previously, Mr. Carlson served as a principal of Equity Resource Group, a company that he formed in 1988 which developed investment partnerships for the purchase and management of commercial and residential properties. Mr. Carlson received a degree in Business Administration with a real estate emphasis from the University of California at Berkeley. He is a certified Commercial Investment Manager and a member of both the Institute of Real Estate Management and the Urban Land Institute (“ULI”). In 1987 and 1988, he represented the United States playing rugby for the U.S. National Team.

Jay Jehle, Managing Director, Atlanta

Jay Jehle joined Stockbridge in 2007, and serves as a separate account Portfolio Manager. Mr. Jehle has 32 years of real estate industry experience and has been responsible for the direct oversight of more than $4 billion of real estate assets throughout his career. Prior to joining Stockbridge, Mr. Jehle was with RREEF for over 17 years where he was most recently a Managing Director in its San Francisco office. From 1992 to 2007, he was a Portfolio Manager of both commingled funds and separate accounts, including for the Los Angeles Employees Retirement Association (“LACERA”), one of RREEF’s largest separate account clients. The LACERA portfolio, consisting of both core and value-add properties, grew to over $1.3 billion in size during his 14-year account tenure. Mr. Jehle joined RREEF in 1990 as Vice President in its New York office, where he was responsible for acquisitions, participating debt lending, dispositions and securing mortgage financings. Formerly, Mr. Jehle was Director of Acquisitions and Mortgages in the New York regional office of Equitable Real Estate Investment Management. He began his career as an investment analyst in the real estate department of Metropolitan Life Insurance Company. Mr. Jehle has a B.A. from the University of Michigan and an M.B.A. Real Estate Finance degree from the University of Denver.

Tuba G. Malinowski, Managing Director, Atlanta

Tuba Malinowski joined Stockbridge in 2010, and is the Senior Portfolio Manager of the Smart Markets Fund, the firm’s open-end core fund. Ms. Malinowski has experience in client relations, acquisitions and asset management. Prior to joining Stockbridge, she served as Director of Marketing and Client Relations for Principal Global Investors, where she was responsible for prospecting U.S. private and public pension plans, as well as client relationship management for the firm’s largest pension plan clients. During her five years with Principal, she also sourced acquisitions for the firm in the Atlanta and Tampa markets. Ms. Malinowski has also served as Director of Marketing and Client Relations for RREEF, where she held primary responsibility for 82 clients, including several of the largest pension plans in the U.S. Ms. Malinowski started her real estate career as an investment analyst with Equitable Real Estate Investments. Over her 14-year tenure she was portfolio manager on several public fund accounts as well as a Japanese commingled fund and later became Vice President of acquisitions, multifamily, retail, office and industrial real estate in the Southeast region. She has a B.A. in Economics from Agnes Scott College.

Jean-Marie Murphy, Managing Director, New York

Jean-Marie Murphy joined Stockbridge in 2007, and serves as a separate account Portfolio Manager. Ms. Murphy has been responsible for the management of more than $5.1 billion of real estate assets throughout her career. Prior to joining Stockbridge, she was a Managing Director in the Portfolio Management division of RREEF, responsible for the oversight of a $2.2 billion national portfolio on behalf of four separate account clients. Previously, Ms. Murphy was a Senior Vice President at Greystone Realty Corporation, where she was responsible for the oversight of a $1 billion portfolio, as well as the transaction management functions for the firm. While at Greystone, she was involved in the acquisition and disposition of more than $500 million of commercial real estate assets. Prior to joining Greystone, Ms. Murphy was an Assistant Vice President in the Asset Management division of New York Life Insurance Company. She is a member of New York Women Executives in Real Estate. Ms. Murphy has a B.A. in Sociology from Queens College.

Sol A. Raso, Executive Managing Director, Chicago

Sol Raso is head of Stockbridge’s core and value business lines. Mr. Raso joined Stockbridge in 2007 to form Stockbridge’s core and value business, leading client relations and new business development for this effort. Mr. Raso has experience in real


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Professional Biographies estate investment and portfolio management. Prior to joining Stockbridge in 2007, he

was with RREEF from 1998 through 2007, where he was a member of the firm’s Investment Committee from 2000 to 2007, as well as a member of the North America Policy Committee from 2003 to 2007. In his role as head of the firm’s Global Client Relations Group, Mr. Raso was responsible for managing a large team of fundraising professionals as well as being directly involved with existing and prospective investors. Mr. Raso has previous experience as an Investment Officer and Director of Real Estate for the Colorado Public Employees’ Retirement Association (Colorado PERA) where, during his 10-year tenure, he oversaw the investment of over $2 billion in real estate on behalf of this multi-billion dollar public pension fund. Prior to joining Colorado PERA, Mr. Raso was an investment sales specialist for Coldwell Banker Commercial Real Estate Services. He was the 1997 Chairman of the PREA and is a past Chairman of the University of Colorado Real Estate Council. Mr. Raso graduated from the University of Colorado with a degree in Finance and Real Estate, and received his M.B.A. from the University of Denver.

Douglas D. Sturiale, Managing Director, San Francisco

Doug Sturiale joined Stockbridge in 2007, and is the Senior Portfolio Manager of the Stockbridge Value Fund series. Mr. Sturiale has experience in real estate portfolio, asset and construction management. Previously, he was a Managing Director with RREEF and President of the firm’s value-added commingled investment fund, which he launched in 2003 and grew to $3.5 billion in total assets, encompassing over 100 investments throughout the United States. Mr. Sturiale joined RREEF in 1999 as a Portfolio Manager where he was responsible for managing in excess of $1 billion in separate accounts, utilizing core, value-added and development strategies covering all major property types. He has prior experience as Vice President and Director of Real Estate Services for Colliers International. In this role, he served as an asset manager and real estate advisor, acquiring, redeveloping, managing and disposing of real estate assets on behalf of both foreign and domestic investors. Mr. Sturiale has a B.S. in Industrial Technology from California Polytechnic State University in San Luis Obispo.

Daniel S. Weaver, Managing Director, Chicago

Dan Weaver joined Stockbridge in 2007, and focuses on acquisitions in the Midwest and Texas, as well as on capital markets transactions. Prior to joining Stockbridge, he was a Partner and Managing Director with RREEF, where he most recently directed retail property acquisitions and served on the firm’s North America Investment Committee and Strategic Investment Committee for the firm’s real estate securities business. Mr. Weaver joined RREEF in 1996 to start its Capital Markets group, where he was responsible for managing the firm’s financing activities. In 1999, he transitioned to Rodamco North America, N.V., after Rodamco’s purchase of RREEF, and was named Chief Financial Officer. He rejoined RREEF after the sale of Rodamco in 2002. Previously, Mr. Weaver served as a Vice President of Capital Markets with Homart Development Co. He is a member of the International Council of Shopping Centers and chairs a retail council of the ULI. Mr. Weaver graduated from Miami University with a B.E.D. in architecture and an M.B.A. with a concentration in finance.

David Nix, Managing Director, Atlanta

David Nix joined Stockbridge in 2011, and focuses on acquisitions in the Southeastern United States. Mr. Nix has real estate industry experience in acquisitions, asset management, dispositions, and investment consulting. Prior to joining Stockbridge, he was a Principal and head of the North America Real Estate Group for Mercer Investment Consulting for two years, where he directed the evaluation of more than 100 private equity real estate funds. Previously, Mr. Nix held several lead acquisitions roles for property transactions in the Southeast region of the U.S., during which time he sourced and closed more than $2 billion of industrial, office, retail and multifamily properties between 1998 and 2008. These roles include serving as Vice President of Acquisitions for AMB Property Corporation out of Atlanta; Senior Acquisitions Manager for Industrial Developments International (IDI) out of Atlanta; Director of Acquisitions and Investment Sales for Trinity Capital Advisors out of Charlotte; and Associate at Lend Lease Real Estate Investments out of Atlanta. Mr. Nix has a B.B.A. in Real Estate from the University of Georgia.


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VI. INVESTMENT STRATEGY The Fund will invest in a portfolio of multifamily, retail, industrial, and office properties across the U.S. with the goal of generating gross equity returns of 12%-15% annually on a portfolio-wide basis. The Fund anticipates making between 25 and 30 investments of $20 to $70 million in typical gross asset size over an approximately three-year time period. This size will allow the Fund to achieve diversification across property type, region, industry, and property life cycle (e.g. lease-up vs. operating). Consistent with a value-added strategy, investments will be underwritten to an average of three to five-year periods, with dispositions following the completion of each value-added strategy. The Fund will concentrate on the following factors: Property Type Focus. Stockbridge will pursue investments for the Fund in multifamily, industrial, retail, and traditional/medical office properties, as discussed below. Multifamily: Invest in neighborhoods not markets. Stockbridge’s market research has uncovered a large

population of renters who desire “newer” in town product but are not willing or able to pay new construction rental rates. The Fund will take advantage of renters priced out of the city centers of certain markets, by investing in immediate surrounding suburban markets with the opportunity to reposition the original or close to original property condition and take advantage of renter demand.

Industrial: E-commerce impact on industrial use. The rise of e-commerce is shaping the evolution of the

industrial property sector, as supply chains adapt to the changes in consumer demand. Logistics operators are facing compressed delivery requirements as consumer expectations for delivery have shortened. Over the past few market cycles, a majority of developers and investors have focused on big box spaces and while demand for this type of product will continue, user demand has spread to smaller, strategically located industrial buildings. Logistics operations are focusing on “last-mile” facilities to serve as a key component of their overall supply chain and the Fund will target these opportunities.

Retail: Think like a retailer. Retailers spend a majority of their time understanding market data including

trade mix, demographics, walkability, and affordability. The Fund will focus on the immediate trade area opportunities that have above-average population density and average to above-average household incomes, good visibility, high traffic counts and a deep and dedicated pool of shoppers from nearby centers of housing and employment. Often opportunities to add value within retail may not appear on the surface, but through careful due diligence and an in depth knowledge of a trade area, opportunities can be identified which may include renewal of strong performing anchor tenants with short term leases, re-tenanting certain underperforming anchor tenants or changing overall tenant mix within a property to better serve the surrounding trade area. In some cases, the Fund may determine the surrounding trade area’s needs will require a tenant to remerchandise its store. In this instance, the tenant will have the opportunity to rearrange its store or product to project a more favorable appearance to the market.

Office: Invest in “out of favor” locations. Many managers categorize suburban office locations as secondary or

tertiary; however, Stockbridge has a strong track record of uncovering hidden value in these “out of favor” suburban office markets through extensive sourcing and market due diligence. Understanding historical occupancy including performance through down cycles is key to making strategic value investments with defensive traits. The Fund will take advantage of these “out of favor” locations by making strategic investments in high quality suburban office with growth and future demand potential.

Geographic Focus. Stockbridge’s value-add series has a proven track record targeting markets on the West and East Coasts and along the Sunbelt region (Arizona to Florida). The Sunbelt Region is attractive to residents and businesses, due to a lower cost of living, state tax incentives, temperate weather, and a high


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quality workforce. The Manager believes the Fund will benefit from targeting these same markets. Furthermore, the Fund will strategically evaluate and target markets that have proven historically resilient during the Global Financial Crisis and other periods of market turmoil as well as markets that have demonstrated exceptional risk adjusted returns, population growth, job creation, and corporate relocations. Value-Add Focus. The Fund will principally seek real estate investments at discounts to replacement cost that Stockbridge believes are undervalued, underutilized, or otherwise not operating to their full potential. Properties typically present some operational risk and/or deficiency such as vacancy in excess of 20%, capital requirements, or inefficient management. Such investments present the opportunity to add value through active management strategies, including additional capital investment, leasing, recapitalization, renovation, redevelopment, and/or other strategies undertaken by the Manager. Examples of opportunities the Fund may identify include:

Fully or partially vacant buildings that may have deferred maintenance or other capital improvement needs;

Physically enhancing properties through renovation, repositioning, or redevelopment with a more efficient use;

Recapitalizing properties or portfolios from undercapitalized or over-leveraged owners; Upgrading outdated or obsolete properties to meet modern tenant demand; Investing in properties or portfolios with a preferred equity position; Acquiring assets in recovering markets at discounts to replacement costs; Acquiring counter-cyclical assets at attractive pricing; Investing in secured debt (i.e., debt backed by individual properties or property portfolios) with the

ultimate goal of owning the underlying real estate collateral; and Investing in select development properties.

The Fund has made two investments to date. The first is an industrial portfolio adjacent to the Dallas-Fort Worth Airport. It has an underwritten return of 13%. The business plan is to complete some cosmetic upgrades and re-set upcoming tenant expirations to market levels. The second is a grocer-anchored retail center in Dallas. It has an underwritten return of 12.9%. The Fund will implement a light value-add program and institutionalize the asset. INVESTMENT PROCESS Stockbridge utilizes a disciplined investment process that is meant to determine expeditiously if a prospective investment meets the Fund’s investment criteria. The components of the Fund’s investment process include (i) sourcing and preliminary screening of potential acquisition opportunities; (ii) due diligence, structuring and IC approval; (iii) asset management; and (iv) investment disposition. Investment Sourcing and Preliminary Screening Prospective investment opportunities generally will be sourced from the network of relationships throughout the real estate industry developed by Stockbridge professionals, including existing and former operating and development partners, potential new operating partners, real estate broker contacts, consultants, investors, lenders, and various other real estate industry professionals. In addition, the Fund professionals expect to proactively identify investment opportunities that have not been broadly marketed. The initial screening process for a potential investment may include market review, preliminary financial analysis, and property research. Investment opportunities that are preliminarily determined to be consistent


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with the Fund’s investment strategy and likely to achieve the return objectives of the Fund will be assigned a team (the “Transaction Team”) to further pursue the investment opportunity. Due Diligence, Structuring, and Investment Committee Approval The Transaction Team will organize and pursue the due diligence of prospective investments for the Fund. Such due diligence will include a financial review of the asset or portfolio, including an assessment of the market or markets where the investment is located. Financial analysis may utilize various valuation benchmarks, including estimated internal rates of return, expected cash-on-cash yields, projected investment yields on either a leveraged or unleveraged basis or both, and testing of expected debt service coverage ratios and other assumptions. The Transaction Team may utilize sensitivity analyses to consider investment returns based on a variety of potential scenarios and standardized financial, accounting and/or real estate software, such as ARGUS, to assist in the development of financial forecasts and projections. The Transaction Team will also develop a preliminary transaction structure for the proposed investment, including investigating various debt financing options and loan terms. Prospective investments may be reviewed by qualified third-party professionals regarding environmental, engineering/structural, and legal issues. If the Transaction Team believes the Fund should proceed with a proposed investment, it will present the proposed investment to the IC for formal review. To enter into a new investment for the Fund, at least a majority of IC members present must approve the investment and no more than one of those present may vote against the investment. In addition, in the case of property investments, at least three members of the IC will be required to make a physical inspection of the subject property before the acquisition is presented to the IC for consideration. Property Management Stockbridge expects generally to arrange for property management services through third-party property managers. Such services will be provided on a market-based fee basis. In joint venture structures, property management services may be provided by an operating partner, also on a market-based fee basis. Investment Disposition Potential exit strategies will be considered as part of the due diligence and approval process for all of the Fund’s investments. Stockbridge expects the Fund to hold investments generally for three to five years. Where feasible, Stockbridge will seek to convert assets acquired by the Fund into core assets for sale through a competitive auction process to REITs or other institutional investors.



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VII. TRACK RECORD Fund I (2011 vintage) raised $217.9 million from six limited partners and made 12 investments. The fund has realized eight investments (41% realized), and has delivered an inception to date IRR of 23.4% gross and 20.6% net. Fund II (2014 vintage) raised $320.5 million from 11 limited partners and made 21 investments, including one fully realized investment. Fund II has delivered an inception to date IRR of 18.7% gross and 14.4% net. Provided below is the historical track record of the Manager.

Fund I Fund II % Unrealized 59% 100% Strategy Value-Add Value-Add Vintage Year 2011 2014 Total Commitments $218M $321M # of Investments 12 21 # of Properties 15 25

Inception-to-Date Return Metrics Gross IRR 23.4% 18.7% Gross Multiple 1.9x 1.3x Net IRR 20.6% 14.4% Net Multiple 1.8x 1.3x

Projected Return Metrics Gross IRR 22.2% 15.3% Gross Multiple 1.9x 1.6x Net IRR 19.8% 12.8% Net Multiple 1.8x 1.6x

Source: Stockbridge The Courtland Partners Index (“CPI”) refers to investments reported in Courtland's Quarterly Performance Measurement databases. The track record for the two prior value-add vehicles sponsored by Stockbridge has been favorable in comparison to all real estate funds of the same vintage in the CPI. Both funds are currently second quartile performers.



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VIII. FEE COMPARISON The following table provides a fee comparison of the Fund relative to peer value-add funds. The base management fee of 1.5% is comparable to other value-add funds, which typically have management fees of 1.25%-1.50%. While the 8% preferred return is comparable to other peer value-add funds, the Fund does not have a catch-up, and the incentive fee is based on overall fund performance, so the firm does not receive distributions until after the Fund is completely liquidated. Overall, the fee structure is very attractive given the lack of a catch-up. There is the potential for a Courtland client fee aggregation discount of 35 basis points, which would make the fee structure even more attractive. In addition, a commitment of $50 million would also result in reduced fees from those shown below.

FUND SIZE MANAGEMENT FEES/PROMOTED INTERESTS TARGET

RETURN

Stockbridge Value Fund III

$500M

Management Fee: 1.50% on committed capital during the investment period and aggregate invested capital thereafter. Incentive Fee: 8% preferred return and an 80/20 split between LP/GP thereafter. No catch-up.

12-15%, gross

Fund I $1.0B

Management Fee: 0.75% on uncalled committed equity provided that upon the date that any commitments are contributed to the Fund, the fee will be 1.5% on invested equity. 1.5% on invested capital thereafter. Incentive Fee: 8% preferred return, then 40/60 split until the GP has received 20% of total distributions (“catch-up”), then 80 (LP)/20 (GP).

15% gross

Fund II $1.0B

Management Fee: 1.0% on committed and 1.5% on invested capital Incentive Fee: 8% preferred return, then 50/50 split until the GP has received 20% of total distributions (“catch-up”), then 80 (LP)/20 (GP).

14-15% gross

Fund III $750M

Management Fee: 1.5% on committed and invested capital Incentive Fee: 9% preferred return, then 60/40 split until the GP has received 20% of total distributions (“catch-up”), then 80 (LP)/20 (GP).

15% gross

IX. MARKET CONDITIONS

U.S. real GDP expanded at an annual rate of 1.4% in first quarter 2017, according to the Bureau of Economic Analysis. This compares to fourth quarter 2016 GDP growth of 2.1%. 545,000 new jobs were added during the first quarter, compared to 510,000 in fourth quarter 2016 and 703,000 in third quarter 2016. The unemployment was flat at 4.7% in comparison to 4.7% at the end of December. Rates on the 10-year U.S. Treasury decreased 19 basis points from 2.45% on December 31 2016 to 2.26% on March 31, 2017. The Atlanta Fed’s GDPNow model projects a 2.9% annualized real growth rate of the U.S. economy for second quarter 2017 as of June 26, 2017.


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First quarter transaction volume according to Real Capital Analytics was $126.2 billion across the five main property types. The past four quarters have seen a slight rise in volume after a record-high volume of transactions ($152.6 billion) in fourth quarter 2015. Industrial transactions have decreased by 14% in the trailing 12 months year over year but are still well above their 10-year average transaction volume. Similarly retail transactions are down 9% in the trailing 12 months year over year but are also above their 10-year average. Apartment and office transactions are largely flat in the trailing 12 months year over year. Overall U.S. transaction volumes on a rolling-four-quarter basis are down 2% at $456 billion compared to the year ago average of $467 billion. The $490 billion in transaction volume in 2015 is the highest trailing twelve month transaction volume since 2007 when transaction volume was $515 billion. Industrial properties recorded the largest total one year returns at 12.2% while office had the lowest one year return at 5.7%. Over the previous 10 year however, the returns on all asset types were within 2.3% of each other.

NCREIF Property Index – Returns

The overall NCREIF Property Index (“NPI”) cap rate is at its all-time low as is the cap rate on Industrial and Retail properties. Apartment and Office cap rates are only slightly off their all time lows. The NPI annualized cap rate moved up slightly in first quarter 2017 to 4.60% from 4.56% in fourth quarter 2016. Relative to the 10-Year U.S. Treasury yields of 2.40%, the cap rate spread increased to 2.20%. The first quarter NPI net operating income (NOI) growth was at 5.3%, 1.8% above the ten-year average growth rate of 3.5%. Industrial NOI growth of 6.3% led the property types with Industrial significantly above its 10-year average. The NPI vacancy rate was 7.0% which is slightly up from its 10-year low of 6.8% reached in fourth quarter 2016. Similarly Industrial vacancy is up slightly to 4.2% from its 10-year low of 3.9% reached in fourth quarter 2016. Apartment vacancy is at 6.5% which is also its 10-year average. Retail vacancy is 7.5% which is 0.9% below its 10-year average of 8.4%. Commercial mortgage debt availability is tightening a bit as banks tighten underwriting standards and the market embraces regulatory changes. CMBS issuance of $15.2 billion in first quarter 2017 was the smallest issuance in a first quarter since 2012. The significant decline in CMBS issuance in 2016 from 2015 indicates that it is losing market share to other sources of real estate debt issuers such as insurance and life companies. Low supply growth for retail and office property types has been a major differentiator in the current recovery. Apartment and industrial deliveries were quite robust in 2015 and 2016 but have yet to put significant upward


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pressure on vacancy for apartment properties and industrial properties. Vacancy for both continue to be low by historical standards with industrial reaching its all time low in fourth quarter 2016 despite significant new product coming to market. Certain markets are seeing new supply of apartments put downward pressure on NOI growth, with the most notable being New York City. But outside of New York City, most markets are still experiencing strong positive NOI growth. The Industrial market continues to grow NOI significantly despite significant new deliveries. The apartment market appears to have hit an inflection point as the rate of NOI growth is slowing after growing very rapidly for the past 7 years although the trailing twelve month NOI growth rate of 5.4% represents historically strong growth.

Note: REIS only reports Industrial statistics on an annual basis. Apartments Apartment annual returns as of first quarter 2017 averaged 6.7% according to NCREIF NPI. For the 12 months ended March 2017, returns were the highest in Oakland (+11.1%), Portland (+11.0%), and Santa Ana (+10.3%). On the other end of the spectrum, Houston (-3.1%), San Francisco (+3.0%), and New York (+4.7%) had the lowest annual total returns. Apartments have been the beneficiary of strong NOI growth since 2010, well above the average growth rate between 2000 and 2010. As a result of this strong NOI growth, new supply has been coming to market at a historically rapid pace hitting a record of 2.0% of existing inventory in 2015 with 2016 slightly off the 2015 mark. The result of new supply hitting the market will have an effect on the prices apartment owners can charge for rent and in turn the NOI generated by apartments. NOI growth was 4.7% in 2016 compared to 10.3% in 2015 and 9.8% in 2014 so the rate of NOI growth is slowing. What remains to be seen is at what growth rate NOI growth will bottom. Construction lending for apartments has been tightened as the market anticipates significant new product being delivered to the market which is a positive sign for future NOI growth as new supply is expected to slow. But there is still significant supply in the pipeline to be delivered over the next year or two. Industrial Industrial annual returns as of first quarter 2017 averaged 12.7% according to NCREIF NPI. For the 12 months ended December 2016, returns were the highest in San Jose (+20.9%), Oakland (+18.5%), and Seattle (+17.0%). On the other end of the spectrum, Houston (+7.1%), Baltimore (+7.5%) and Miami (+7.9%) had the lowest annual total returns.


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Industrial NOI growth has been extremely strong in comparison to its historical trend since 2011. As shown in the chart below, there was near zero net NOI growth between 2000 and 2014 in NPI tracked industrial properties. Since 2010, NOI has grown at a much faster pace. This rapid pace of NOI growth does not appear to be abating. Office New office supply is generally minimal aside from a few high-growth and technology markets including Dallas, Houston, and Phoenix. San Francisco, New York, and West Los Angeles remain healthy, although there are concerns of a broader tech sector slowdown. Uncertainty exists in energy markets such as Houston, where a shadow space market also exists. Nationally, fourth quarter occupancy was 88.8% and was up 67 basis points year-over-year. Office annual returns as of first quarter 2017 averaged 5.7% according to NCREIF NPI. For the twelve months ended March 2017, returns were the highest in Portland (+12.4%), Cambridge (+11.3%), and Dallas (+10.9%). On the other end of the spectrum, Houston (-3.2%), Miami (+2.5%, and Washington D.C. (+3.7%) had the lowest annual total returns. Office NOI growth has been quite strong since 2012. It is notable how much of a drawdown in NOI was experienced in the early 2000s in comparison to the NOI drawdown during the GFC which was much less severe. The asset price drawdown during the GFC was largely attributable to the very large expansion in cap rates which offset the large cap rate compression prior to the GFC. Retail Higher quality retail centers continue to perform well, particularly those that offer an experience not easily replicated through internet shopping. Minimal supply growth benefits the sector. Tenant sales growth has been volatile as internet shopping pressures are mounting. Retail bankruptcies have significantly increased which has put downward pressure on retail asset prices. Houston and Las Vegas led the retail markets with total returns of 10.1% and 10.0% year-over-year as of first quarter 2017. This compares to 7.6% for the aggregate retail NPI. Oakland and Orlando were the laggards with returns of 5.8% and 6.4%, respectively. According to NCREIF NPI, all retail subtypes saw positive returns for the four quarters ending first quarter 2017. Neighborhood Centers performed best at 8.9% followed by Super Regional malls at 8.4% and Community retail at 7.1%. Retail NOI was barely affected by the recession in the early 2000s and had a modest drawdown during the GFC. It has grown at a 3.14% annualized rate since 2000. Housing U.S. housing starts were at an annualized rate of 1.238 million in the first quarter of 2017. While housing starts have greatly recovered from the annualized rate of approximately 0.5 million during the GFC, they are still significantly lower than they were prior to the GFC when they topped out at almost twice the current rate. The Case-Shiller 20 city composite home price index was at 198.42 in April 2017 and grew 5.6% year over year. House prices have been steadily rising since 2012 and are 4.0% below the all time peak of 206.65 reached in March 2006.


MEMORANDUM

1

To: San Joaquin County Employees’ Retirement Association (“SJCERA”) Staff From: Courtland Partners, Ltd. ("Courtland") Date: October 20, 2017 Subject: Update on Meetings with Managers to Date

The SJCERA Real Estate Committee (the “Committee”) is no longer requiring that each manager come in for an in-person due diligence session. The Committee expects that Courtland will be meeting with each manager at some point during each year. The table below provides a progress report for the year to date.

Manager Update

Almanac Attended annual meeting in May.

Angelo Gordon Attended annual meeting in March.

Colony Attended the June annual meeting telephonically.

Greenfield The 2017 annual meeting has been moved to Spring 2018, which Courtland will attend. Met in Courtland’s Cleveland office in July.

Legacy Only two assets remain in Legacy II.

Miller Global Attended annual meetings in April telephonically.

Principal Open-ended fund. Most recently met with in Courtland’s office in August.

ProLogis Open-ended fund. Attended annual meeting in September.

RREEF Open-ended fund. Attended annual meeting in April.

Sarofim Fund liquidated last asset in 2016.

Walton St. Attended annual meetings in June telephonically.

BlackRock Passive REIT strategy. However, BlackRock regularly visits to discuss to its private real estate platforms.

Invesco Public REIT strategy. Have met with recently regarding private market strategies.

MEMORANDUM

1

To: San Joaquin County Employees’ Retirement Association (“SJCERA”) Real Estate Committee

From: Courtland Partners, Ltd. ("Courtland")

Date: September 29, 2017

Subject: Prologis Annual Investor Meetings

SJCERA is an investor in Prologis Targeted US Logistics Fund (“USLF” or the “Fund”) through a commitment of $35 million into the Fund. Jacqueline Smith of Courtland attended the Prologis Annual Investor Meeting, which occurred on September 26-27, 2017. A summary of the items discussed is below. USLF On July 14, 2017, the Fund acquired the NAIF portfolio of 190 assets representing 40 million square feet for $2.8 billion. The transaction was funded in part by $954 million of capital commitments from 14 new and existing USLF investors, and Prologis’ interest in the Fund increased to 27%. The NAIF portfolio is complementary with USLF’s strategy of investing in high-quality, core assets in prime locations. USLF now owns 572 buildings representing 89 million square feet in 25 markets with $6.3 billion in net asset value. The portfolio has an occupancy level of 97.3%. The Fund has leverage of 27%, with $2.3 billion of total debt with an average interest rate of 4.5% and an average of 3.5 years to maturity. As of June 30, 2017, the Fund has a year-to-date gross fund level return of 19.1% and is in its eighth consecutive year of double digit gross fund level returns. The Fund is on pace for a strong 2017, and is producing greater occupancy (currently 97.8%), same store net operating income growth (currently 6.6%), and gross fund level returns than predicted in the business plan. The Fund has outperformed ODCE over the 1-year, 3-year, and 5-yeear time periods by 1,200 basis points (“bps”), 660 bps, and 580 bps respectively. Please contact us if you have any questions, comments, or require additional information.


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