Lubert-Adler Real Estate Funds Since its founding in 1997, the firm has invested $6.5 bln of equity into $16 bln of assets. Lubert-Adler's Investment Thesis and Strategy: 1. CREATE CURRENT YIELD: ● Pursue a disciplined investment strategy of creating Cash‐Yielding Rental Assets, with the goal of achieving: ► 10‐12% cash yield within 18 months of acquisition ► Overall returns of 2.0x equity and a 20% IRR ► 2/3 of overall return from current cash yield 2. SPECIFIC ASSET FOCUS: ● From 2010 to 2014 L‐A exclusively pursued Value‐Add Rental Assets: ► Multifamily ► Credit Retail ► Urban Retail/Multifamily Mixed‐Use ► Limited Service Hospitality ● L‐A specifically excluded assets that were back‐end weighted, because these asset types did not have the Cash‐Flow downside protection that rental assets have. ► Residential Resort; Speculative Land Assemblages; Large Scale Development 3. VALUE‐ADD EXECUTIONS: ● Current yield is too expensive to purchase. Lubert‐Adler utilizes value‐add strategies with strong local partners for multifamily and urban executions, together with national specialists for retail and hospitality. ● Value‐Add Executions Include: ► Renovations ► Repositionings ► Redevelopments ● Finally, L‐A focuses on prime mid‐size assets ($25m-$75m) that can generate higher margins due to their execution requirements, as well as being too large for local operators and too small for larger Funds. 4. DOWNSIDE PROTECTION: ● Lubert‐Adler is focused on creating downside protection: ► Redevelopments are targeted to be 2/3rds the cost of its competitive set ► Targeted margins must be sufficient to offset an expected rise in interest rate

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