Approved Policy 9/30/10 With Fund III Core 30% 35% 33% Non-Core Equity 30% 50% 47% Non-Core Debt 20% 15% 19% Public REIT s 20% 0% 0%

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1 THE TOWNSEND GROUP INVESCO REAL ESTATE DEBT FUND III, L.P. POOLED FUND REVIEW Portfolio Compliance and Recommendation The Staff of the San Bernardino County Employees Retirement Association ( SBCERA ) has requested that Townsend review a potential investment of $30 million in the Invesco Real Estate Debt Fund III ( Fund III ). The following provides a compliance review on the proposed investment relative to applicable SBCERA Strategic Plan and program restrictions. All data is as of September 30, Available Capital - The $30 million allocation exceeds the estimated $20 million SBCERA has available for investment on a funded and committed basis. Staff and Townsend project that total Plan growth, planned dispositions, requested redemptions from open-end funds (RREEF III $18 million) and the likely release from contractual commitments (Bryanston I $11 million) should allow for additional allocations in Portfolio Structure - Fund III is a non-core debt investment. Approval of the allocation would result in the following portfolio structure on a funded and committed basis: Approved Policy 9/30/10 With Fund III Core 30% 35% 33% Non-Core Equity 30% 50% 47% Non-Core Debt 20% 15% 19% Public REIT s 20% 0% 0% As demonstrated above, the allocation would help to rebalance the portfolio toward the approved Policy structure. Further rebalancing would occur through previously mentioned dispositions, redemptions and uncalled commitments. Manager/Fund Invesco is an existing manager for SBCERA with active investment positions in three portfolios, the Invesco Real Estate Fund, Invesco High Yield Debt Fund and Invesco High Yield Debt Fund II. SBCERA committed $30.0 million to Fund II in the second half of In 2009, SBCERA added an additional $30.0 million commitment. Invesco only called $35.1 million from the total $60.0 million commitment. SBCERA was the sole outside investor. SBCERA maintains a preference for continuing relationships with existing managers when performance and strategy are appropriate and aggregate exposure is not imprudent. Conclusion An Investment in Fund III is within reasonable range of the limits set forth in the Strategic Plan and assists SBCERA in moving toward their approved Real Estate Structure. Townsend concurs with Staff s recommendation to commit up to $30.0 million to Invesco Real Estate Debt Fund III.

2 The remainder of this memo provides a review of Invesco Real Estate Debt Fund III. Strategy The strategy for Fund III is to invest in various forms of real estate debt including but not limited to: First-lien commercial mortgages for hold or partial sale Retained mezzanine position from originated first-lien mortgages Subordinated interests in first-lien commercial mortgages ( B notes ) Acquired mezzanine debt Investment and non-investment grade tranches of Commercial Mortgage Backed Securities ( CMBS ) Other financial investments such as preferred equity or debtor-in possession facilities Invesco has indicated it will initially focus on private real estate debt investments. Within the capital stack of a typical private debt transaction, a first mortgage would represent 60% to 65%. Invesco s mezzanine investment would be subordinate to the first mortgage which would place it in the next 15% to 20%, but ahead of common equity which would make up 15% to 25%. The anticipated capital stack of a typical Fund III investment is depicted in the chart below: Fund III will provide a significant portion of the total return from current income and origination fees paid by the borrowers. Invesco projects this fund to produce a total gross return of 14% and a total net return of 12%. Comparative Advantages 1. Stable Platform 100% 90% Typical Private Debt Investment Capital Stack 80% 70% 60% 50% 40% 30% 20% 10% 0% First Mortgage 60% Mezzanine/ B Note 20% Fund III is sponsored by Invesco Real Estate Advisors ( Invesco RE ), a subsidiary of the parent company, Invesco Ltd. Invesco Ltd has in excess of 600 investment professionals with $605 billion of Assets Under Management ( AUM ). Invesco Ltd is a publically traded entity ( IVZ ) with a market capitalization of $11.5 billion (as of January 14, 2011). Invesco RE has 231 employees worldwide with $28 billion AUM (approximately ½ public, ½ private). In North America Invesco RE employs 146 individuals with $22.5 billion AUM including $3.6 billion in real estate debt. Equity 20% Fund III Investment - 2 -

3 2. Experienced Team Invesco RE combines direct real estate expertise, with fixed income expertise that invests across all types of investment strategies from Core to Opportunistic. The debt team has in excess of 20 years of managing and trading fixed income assets including ten years of actively investing in CMBS. Invesco RE utilizes proprietary fixed income and credit tenant analysis systems along with proprietary research and trading specialists dedicated to structured real estate securities. The Private Debt Investment Committee oversees private debt investments. The Committee is chaired by Blaine Smith, includes the Fund III Portfolio Manager (Blaine Smith) and six additional professionals as noted by the * in the table below. Name INVESCO Private Real Estate Debt Team Title Years of Experience Years with INVESCO Scott Dennis *,** Managing Director, CEO David Farmer *,** Managing Director, COO Michael Kirby * Managing Director, Director North Am. Operations and Asset Management Blaine Smith, CFA *,** Director, Portfolio Manager and Chair of Debt Investment Committee Mark Roberts, CFA *,** Senior Director, Global Director of Research Greg Kraus *, ** Senior Director, Director Acquisitions Ron Ragsdale * Senior Director, Director Closings Bert Crouch Investment Officer 9 <1 Jed Melson Investment Analyst 5 5 Chase Bolding Investment Analyst 3 <1 Notes: * members of the North American Debt Investment Committee, ** members of the Fund Investment Strategy Committee The Real Estate Securities Investment Committee oversees public debt investments. The Committee is chaired by Mark Blackburn, includes Fund III Portfolio Manager (Blaine Smith) and six additional professionals as noted by the * in the table below. INVESCO Public Real Estate Debt Team Name Mark Blackburn, CFA, CPA Years of Experience Years with INVESCO Title Managing Director, Real Estate Securities, Portfolio Manager, Chair of RE Securities Investment Committee Joe Rodrqguez *,** Managing Director, Real Estate Securities James Trowbridge * Senior Director, Portfolio Manager Ping-Ying Wang, Ph.D.,CFA * Senior Director, Portfolio Manager Paul Curbo, CFA * Senior Director, Portfolio Manager James Cowen * Senior Director, Portfolio Manager Darin Turner *,** Director, Portfolio Manager (High Yield Debt Fund I and II) 7 5 Kevin Collins Portfolio Manager 7 3 Jason Marshall Mortgage Backed Securities Trader 13 3 Brian Norris, CFA Mortgage Backed Securities Trader 12 9 Minn Shang, CFA Analyst 10 3 Daniel Saylor Analyst 3 <1 Notes: * members of the North American Debt Investment Committee, ** members of the Fund Investment Strategy Committee Invesco RE also utilizes an additional Investment Strategy Committee chaired by Scott Dennis, CEO along with six senior investment professionals noted by the ** in both tables above. This committee approves the Fund III Annual Investment Plan and reviews Fund performance

4 3. Sourcing and Asset Management Loan originations and loan acquisitions are sourced through Invesco s network of contacts including: insurance companies, commercial banks, investment banks, developers, conduit loan originators and capital market intermediaries. During due diligence, Invesco s team evaluates the loan collateral, borrower and guarantor assessment and has third parties assess the property s physical and environmental condition. When Invesco underwrites new debt investments it values the underlying real estate collateral on today s income and valuation metrics. After an investment is made, asset management provides loan servicing oversight, collateral surveillance, monitors loan performance and its relationship with the borrower. To the extent Invesco acquires CMBS assets it performs a thorough investment analysis, focusing on: Collateral Evaluation-subjecting the investment to a comprehensive financial and market analysis to determine the appropriate value and cash flow Structural Analysis-evaluating the various tranches, each which have varying credit enhancement levels each which provide different Issues and Concerns 4. Favorable Fees Fund III s Incentive Fee has a preferred return of 8% IRR to the LPs, then an 80% LP/20% GP split for future distributions, no catch up and an investment management fee based at 1% of invested equity. As shown in the following graph, the impact of this fee structure is less dilutive than that associated with most alternative vehicles. Net Investor IRR 30% 25% 20% 15% 10% 5% Net Return Comparison Net Investor IRR -H/2 SO II Net Investor IRR -Lone Star VII Net Investor IRR - Ladder Net Investor IRR - Bayview Net Investor IRR - Invesco 0% 5% 10% 15% 20% 25% Gross Portfolio IRR - 4 -

5 5. Manager Discipline Fund II s strategy was to invest in the most senior part of the CMBS capital structure (e.g. AAA rated tranches) and to capture returns due to capital market dislocation while protecting it from deteriorating fundamentals. Fund II did not use any leverage to acquire the CMBS portfolios. As capital market liquidity and pricing improved from 2009 to 2010, spreads narrowed to the point where Invesco harvested the gains and liquidated the portfolio in late May 2010 rather than take additional market risk. As of September 30, 2010, SBCERA realized net proceeds of $42.9 million which resulted in a net gain of $7.8 million on the $35.1 million contribution. Fund II generated a realized net IRR of 18.6% and an equity multiple of 1.22x in a vintage year where many debt managers lost significant equity. Invesco earned an incentive fee of $1.95 million. 20% 15% Invesco High Yield Debt Fund II 2Q10 End Date 15.7% 18.1% Time Weighted Returns 10% 5% 0% -5% -10% -15% -20% 2.9% 4.0% 0.9% Second Quarter 2010 Return Idx: Barclays Mortgage-Backed INVESCO High Yield Debt Fund II (gross) 7.5% 7.0% 1.9% -16.1% One Year Return Since Inception Return Townsend Debt Oriented Fund Index (gross) Issues and Concerns 1. Under Performance of Invesco High Yield Debt Fund I ( Fund I ) SBCERA committed $20.0 million to Fund I. Fund I s strategy was to invest in CMBS portfolios which included various tranches of A, BBB, BB, B, and below investment grade positions. When the market dislocation occurred in the fourth quarter 2008 and through the 2009, CMBS tranches below AAA were hit hard with significant un-realized losses. As of December 31, 2010 Fund I held one CMBS portfolio; two CMBS portfolio investments have been liquidated; as part of the sale of one CMBS portfolio, Fund I still maintains a share of future special servicing fees. The IRR through September 30, 2010 was -42.4%. Invesco s goal over the next two-three years is to manage its interest in the one remaining CMBS pool and the special servicing fees generating future distributions of $2.4 million to SBCERA. If Fund I is successful in distributing the additional capital it would result in an overall equity multiple of 0.5x. Fund I was unsuccessful in achieving a risk adjusted return

6 Time Weighted Returns 20% 10% 0% -10% -20% -30% -40% -50% -60% -70% 0.6% 8.8% Third Quarter 2010 Return Invesco High Yield Debt Fund I 13.2% 5.7% 7.8% 7.0% -64.9% -65.7% -17.8% -62.5% -13.8% -53.0% One Year Return Two Year Return Since Inception Return Idx: Barclays Mortgage-Backed INVESCO High Yield Debt Fund (gross) Townsend Debt Oriented Fund Index (gross) 2. Lack of Outside Investors The first two funds were structured like Individual Managed Accounts with SBCERA as the sole outside investor; Invesco was unsuccessful in raising additional capital. Invesco began marketing Fund III in the late fall 2010, but has not had a first closing yet. An allocation at this time would constitute lead investor status and may ultimately have limited investor participation. Some of this concern could be mitigated through parent company co-investment however Invesco LTD has made no such commitment. Certain executive officers and key employees of Invesco may invest equity capital in parallel funds either directly or indirectly but are not required to do so. As such, SBCERA may choose to make a provisional approval to be used for negotiating closing documents, fund structure, investors rights or other issues where advantages could be inured to SBCERA

7 Fund Profile The Partnership: Delaware limited partnership Fund Structure: Investments may be made through a subsidiary Delaware limited liability company, or at the GP s discretion, through a REIT subsidiary General Partner: IRI III-GP, L.P. an Invesco affiliate Size: $ million Minimum Commitment: $20 million, but may be less, subject to GP discretion Invesco Commitment: Certain executive officers and key employees of Invesco may invest equity capital in parallel funds either directly or indirectly. Closing: GP may conduct an initial closing at any time after capital commitments have been received from one or more investors. Subsequent closings may occur no later than one year after the initial closing. Investment Period: Three years after the final closing Term: Fund III will end on December 31 st following the seventh anniversary of the final closing. The GP may extend for three (3) consecutive one year periods in its sole discretion. Investment Management Fee: 1%/year on invested equity. During negotiations of fund terms, suggest the investment management fee be the lower of 1% of invested equity or market value. Preferred Return/Incentive Fee: A Net IRR of 8%, then 80% to LP/ 20% to the GP (no catch up) During negotiations of fund terms, suggest the preferred return increase to 9% or a multiple floor consistent with a net 8% IRR (an estimated 1.4X). Offering Expenses: Up to $500,000 paid by the Fund Leverage: Fund III does not expect to use leverage. However, to the extent the fund uses leverage it is limited to 50% of the market value of its aggregated investments. However, until the one year anniversary of the initial closing, the maximum leverage is 75%. For example, the Fund could use a line of credit to fund new investment until capital is called

8 Appendices Invesco Realty Advisors Organizational Chart Invesco Global Real Estate Client Portfolio Management Max Swango GLOBAL EXECUTIVE COMMITTEE David Ridley, Chair Mark Blackburn, Scott Dennis, David Farmer, Paul Joubert, Michael Kirby, Cheng-Soon Lau, Paul Michaels, Doris Pittlinger, Simon Redman, Mark Roberts, Joe Rodriguez, Andy Rofe, Max Swango, Alexander Taft Global Research Committee Strategy Review Committee Business Administration Compliance Corporate Finance Fund Accounting Oversight Human Resources Information Technology David Ridley, Executive Chairman Scott Dennis, CEO David Farmer, COO North American Executive Committee Asian Executive Committee European Executive Committee Global Real Estate Securities Management Committee Blaine Smith, Jeff Cavanaugh, Scott Dennis, David Farmer, Bill Grubbs, Michael Kirby, Greg Kraus, Paul Michaels, Ron Ragsdale, David Ridley, Mark Roberts, Max Swango Scott Dennis, David Farmer, Cheng-Soon Lau, David Ridley, Joe Rodriguez, Max Swango Scott Dennis, David Farmer, Paul Joubert, Doris Pittlinger, Simon Redman, David Ridley, Andy Rofe, Alexander Taft Mark Blackburn, Alesia Coffman, James Cowen, Paul Curbo, David Farmer, David Ridley, Joe Rodriguez, Max Swango, Jim Trowbridge, Ping-Ying Wang Managing Directors: Paul Michaels Michael Kirby Managing Director: Cheng-Soon Lau Managing Director: Andy Rofe Managing Director: Joe Rodriguez Source: Invesco Real Estate as of 31 September

9 Invesco Real Estate: High Yield Debt Fund III Biographies Key Investment Professionals R. Scott Dennis Managing Director, Chief Executive Officer Mr. Dennis is head of Private Real Estate at Invesco Real Estate, which is responsible for the firm s investment effort in the United States, Europe and Asia. He is a member of the Executive and Investment Committees. Mr. Dennis joined Invesco in 1992 and has 28 years of real estate experience. Before joining Invesco, Mr. Dennis worked at Bankers Trust Company, where he was responsible for structuring equity and debt investments on behalf of Bankers Trust and other institutional clients. Additionally, Mr. Dennis was with Trammell Crow Company, where he was responsible for investments on behalf of their commingled funds. He has been involved in more than $10 billion of real estate investments throughout the United States, covering a broad range of property types and investment structures. Mr. Dennis holds a BBA in Finance and Real Estate from The University of Texas at Austin and is actively involved in the Urban Land Institute. David N. Farmer, CPM, CSM, CRE Managing Director, Chief Operating Officer of IRE Mr. Farmer is responsible for overseeing the day-to-day operations of the company. Mr. Farmer s 31 years of real estate experience include development, leasing, financing and the sale of commercial properties. Before joining IRE in 1987, Mr. Farmer served as Vice President and Director of Henry S. Miller Management Corporation, HDW Group ( Henry S. Miller ), responsible for managing more than 4.5 million square feet of commercial real estate. During his tenure with Henry S. Miller, he was actively involved in developing 20 neighborhood shopping centers and four industrial facilities, the redevelopment of specialty retail centers, and the repositioning and lease-up of several office buildings providing asset management services on behalf of institutional clients. Mr. Farmer received his Bachelor of Science degree in Finance from Louisiana State University. He is a member of the Institute of Real Estate Management (IREM), having earned IREM s designation as a Certified Property Manager (CPM ) and has served on IREM s Dallas Board of Directors and on numerous national committees. He is also a member of the National Council of Real Estate Investment Fiduciaries, Pension Real Estate Association, National Association of Real Estate Investment Managers and the International Council of Shopping Centers. Mr. Farmer has the designation of Certified Shopping Center Manager (CSM) and Counselor of Real Estate (CRE). Max Swango Managing Director, Director of Client Portfolio Management Mr. Swango has been with IRE since For the last ten years he has served as IRE s Director of Product and Client Portfolio Management. He is responsible for developing and managing real estate investment products for Invesco s diverse client base and for overseeing existing and new client and consultant relationships. He spent the first 10 years with the firm in the Acquisitions group originating direct real estate investments. Those investments included acquisitions of existing properties, pre-sale commitments on to-be-completed properties, equity investments in development transactions, mortgages, participating mortgages, second participating mortgages and recapitalization of existing partnerships. From , Mr. Swango oversaw the firm s West Coast investment activity from its San Francisco office. That office is responsible for executing IRE s investment strategy in the western United States for its institutional client portfolios. Mr. Swango serves on the Editorial Advisory Board of the Institutional Real Estate Letter and is a - 9 -

10 member of numerous other retirement system industry associations, including PREA, SACRS, CALAPRS and TEXPERS. He holds a Bachelor of Business Administration degree with a double major in Real Estate and Finance from The University of Texas at Austin. Mr. Swango has 20 years of real estate experience. Joe V. Rodriguez, Jr. Managing Director, Real Estate Securities Management Mr. Rodriguez is an Invesco Managing Director and is the head of real estate securities for Invesco. In addition to portfolio management, Mr. Rodriguez oversees all phases of the unit including securities research and administration. He has served on the following industry boards: Editorial Board for the National Association of Real Estate Investment Trusts; and Editorial Board for Institutional Real Estate Securities Newsletter. Mr. Rodriguez has been a guest on CNBC and Bloomberg News. He has published for The Institute for Fiduciary Education and Real Estate Finance. He was also a contributing author to Real Estate Investment Trusts: Structure Analysis and Strategy, a book published by McGraw Hill. He is a member of the National Association of Business Economists, the American Real Estate Society and the Business Advising Board for the Hankamer School of Business at Baylor University. He has also served as adjunct professor of economics at the University of Texas at Dallas. He holds a Bachelor of Business Administration degree in Economics and Finance and a Master of Business Administration degree in Finance from Baylor University. Mr. Rodriguez has 26 years of investment experience. He joined Invesco in Mark Blackburn, CFA, CPA Managing Director, Real Estate Securities Portfolio Manager Mr. Blackburn is an Invesco Managing Director and a member of the Real Estate Securities Portfolio Management and Research Teams. His current duties include work as Director of Securities Research and a Portfolio Manager. Prior to joining Invesco in 1998, he worked as an Associate Director of Research focusing on equity securities research and recommendations with a regional brokerage firm. He has approximately 22 years of experience in institutional investing and risk management along with a background in evaluating the high-yield and convertible securities markets. Mr. Blackburn received his Bachelor of Science degree in Accounting from Louisiana State University and his Master of Business Administration degree from Southern Methodist University. He is a member of the National Association of Real Estate Investment Trusts (NAREIT). Mark Roberts, CFA Senior Director, Director of Research Mr. Roberts is an Invesco Senior Director and the head of Invesco s North American real estate research and chairman of the firm s Investment Strategy Group, and a member of the Executive & Investment Committees. Mr. Roberts also serves a leading role on the following industry boards and organizations: President, Real Estate Research Institute; NCREIF Fund Index Subcommittee (FISC); Past Chairman, NCREIF Research Committee; and Past member, Real Estate Information Standards Committee (REIS). As a member of NCREIF-FISC, Mr. Roberts has played a key role developing and setting policies for several real estate industry benchmarks, such as the NCREIF Open-End Diversified Core Equity Index and the Open and Closed- Ended Value-Added and Opportunistic Fund Indices. Mr. Roberts was also a contributing author to The Handbook of Alternative Investments. He has published for The Institute of Fiduciary Education, the NCREIF Quarterly and the Pension Real Estate Association Quarterly. Mr. Roberts is a Fellow of the Homer Hoyt Institute and member of the

11 National Association of Real Estate Investment Trusts, the Urban Land Institute, American Real Estate Society, National Council of Real Estate Investment Fiduciaries (NCREIF), Pension Real Estate Association (PREA), and the American Institute of Architects. He holds the Chartered Financial Analyst (CFA ) designation and is a registered architect. Mr. Roberts earned an MS in Real Estate from the Massachusetts Institute of Technology, a BA in Architecture from the University of Illinois at Urbana and attended the Graduate School of Management at the University of Dallas. He joined Invesco in Ron Ragsdale Senior Director, Director of Closing Services Mr. Ragsdale joined IRE in As a member of IRE s Acquisitions Team, Mr. Ragsdale directs the legal and contract administration functions. His responsibilities include negotiation of legal agreements, such as purchase and sale contracts and loan documents. He also oversees due diligence management, including legal, environmental and engineering assessments, acting as a liaison with legal counsel; supervision of project construction, ensuring conformance to client criteria and closing of investment transactions and final transition to the asset management group. Mr. Ragsdale is also a member of IRE s Investment Committee. Mr. Ragsdale has 26 years of real estate experience including planned developments, distribution centers and build-to-suit projects. He also has construction experience in a finance capacity in tenant finish, retail and various special-use projects. Mr. Ragsdale received his Bachelor of Science degree in Finance from the University of South Alabama. Michael C. Kirby, CPM Invesco Managing Director, Director of North American Real Estate Operations and U.S. Asset Management Mr. Kirby joined Invesco in 1993 after a varied career in commercial real estate management. He currently serves as Director of North American Real Estate Operations and U.S. Asset Management for IRE. In this capacity he comanages IRE s North American direct real estate investment platform and heads asset management of Invesco s $13 billion portfolio of office, industrial, retail, and multi-family investments in the U.S. He currently chairs IRE s North American Executive Committee and serves on both the Investment Committee and Investment Strategy Group. Mr. Kirby has 26 years of real estate experience. Mr. Kirby is a graduate of The University of Texas at Austin with a Bachelor of Science degree in Civil Engineering. He is a Certified Property Manager (CPM ) and has served on the Executive Council of the Dallas Chapter of the Institute of Real Estate Management (IREM)

12 T. Gregory Kraus Invesco Senior Director, Director of Acquisitions Mr. Kraus joined IRE in 2000 where he directs IRE s Acquisition Group. In addition, Mr. Kraus serves on IRE s Investment Committee, North American Executive Committee and Direct Management Committee. Since joining IRE, Mr. Kraus has served in both a portfolio management and acquisition role with the firm. Prior to joining IRE, Mr. Kraus was previously affiliated with the Harberg-Masinter Company, Crescent Real Estate Equities, the L&B Group and its predecessor company Lehndorff USA, Ltd., Hall Financial Group and Southland Financial Corporation. Mr. Kraus holds a Bachelor of Business Administration degree from Southern Methodist University. He has 29 years of real estate experience. R. Blaine Smith, CFA Director, Portfolio Manager Mr. Smith joined IRE in 1990 and serves dual roles as Director of Strategic Planning & Development and Portfolio Manager. As Director of Strategic Planning & Development, he is responsible for development and implementation of business opportunities and operational initiatives for IRE. His portfolio management responsibilities include the portfolio design and investment management for two of IRE s separate account clients. From 1992 through 2000, Mr. Smith served as Director of Underwriting for seven years, where he was responsible for design, implementation and oversight of the underwriting and valuations processes, as well as supervision of the acquisitions and valuations analysts. Mr. Smith holds a Bachelor of Science degree in Civil Engineering from Texas A&M University and a Master of Business Administration degree in Real Estate and Finance from Southern Methodist University. He also holds the Chartered Financial Analyst (CFA ) designation. Prior to joining IRE, Mr. Smith held financial and marketing positions with two real estate development firms rounding out his 21years of real estate experience. Darin Turner Director, Portfolio Manager Mr. Turner is a member of the Real Estate Securities Portfolio Management and Research Teams. Mr. Turner is a voting member on fixed income portfolios and a non-voting member on equities portfolios. His current duties as a Portfolio Manager involve evaluating structured real estate securities with a focus on fixed income instruments such as CMBS, corporate debt and corporate preferred stock. Mr. Turner also provides tenant and credit quality analysis, capital structure analysis and debt pricing analysis for equity portfolios. Mr. Turner joined Invesco in 2005 as an Acquisitions Analyst and later served as the Associate Portfolio Manager for Invesco Real Estate s U.S. Value Added Funds. Prior to joining Invesco, Mr. Turner was a financial analyst in the corporate finance group of ORIX Capital Markets where he was responsible for the daily evaluation of a $2 billion fixed income portfolio, as well as, analyzing the performance of specific collateralized debt obligations. Additionally, he was responsible for the execution of a high-yield repurchase facility and a leveraged loan swap agreement, as well as, implementing certain portfolio hedging strategies. Mr. Turner holds a Bachelor of Business Administration degree in Finance from Baylor University, a Master of Science degree in Real Estate from the University of Texas at Arlington, and a Master of Business Administration degree specializing in Investments from Southern Methodist University. James Cowen Invesco Senior Director, Portfolio Manager Mr. Cowen is an Invesco Senior Director and a member of the Real Estate Securities Portfolio Management and Research Teams. His current duties as a Portfolio Manager involve the evaluation of real estate companies and the

13 analysis of fundamental real estate factors at the macro and property levels. He has a particular focus and responsibility for the UK and Continental European region. Other responsibilities include client reporting and the provision of quantitative analysis to assist with risk management within the Invesco portfolio management process. Mr. Cowen has 11 years of experience in real estate and has worked for Invesco for 9 years. Prior to joining the real estate securities management team in 2004, he worked in a real estate corporate finance role for Invesco in Europe and as a financial analyst for a management consulting business based in London. He has a Bachelor and a Masters Degree from the University of Manchester and a Master of Philosophy (M.Phil) degree from Cambridge University. He is a member of the UK Society of Investment Professionals, UK Securities & Investment Institute and is a UK FSA approved person. James W. Trowbridge Invesco Senior Director, Portfolio Manager Mr. Trowbridge is an Invesco Senior Director and a member of the Real Estate Securities Portfolio Management Team. He has an extensive background in evaluating commercial real estate investments and securities. With 34 years of real estate investment experience for major institutional investors, Mr. Trowbridge is responsible for integrating this knowledge into Invesco s publicly traded REIT investments. He specializes in analyzing market and property level supply and demand relationships and evaluating REIT company strategic direction and management. Mr. Trowbridge joined Invesco in Mr. Trowbridge received a Bachelor of Science degree in Finance from Indiana University. He has completed numerous appraisal and income property courses sponsored by the American Appraisal Institute and the Mortgage Bankers Association. Mr. Trowbridge has been active on several income property sub-committees for the Mortgage Bankers Association. He is a member of the National Association of Real Estate Investment Trusts (NAREIT). Paul Curbo, CFA Invesco Senior Director, Portfolio Manager Mr. Curbo is an Invesco Senior Director and a member of the Real Estate Securities Portfolio Management and Research Teams. His current duties include work as a Portfolio Manager performing quantitative and fundamental research on real estate securities. Mr. Curbo joined Invesco in 1998 and worked for several years in the real estate research group as a Senior Research Analyst. He led one of Invesco s regional teams and directed the firm s research and strategy efforts in the Western region of the U.S. Prior to joining Invesco, Mr. Curbo was a senior research associate with Security Capital Group where he was responsible for analyzing multifamily, industrial and office real estate markets. He produced extensive research on economic, demographic and real estate market information for Security Capital s affiliate companies. Mr. Curbo previously held a position with Texas Commerce Bank. He has 16 years of real estate experience. Mr. Curbo holds a Bachelor of Business Administration degree in Finance from the University of Texas at Austin and has completed graduate coursework in Economic Theory and Econometrics at the University of Texas at Dallas. Additionally, he holds the Chartered Financial Analyst (CFA ) designation. Ping-Ying Wang, PhD, CFA Invesco Senior Director, Portfolio Manager Ms. Wang is an Invesco Senior Director and a Portfolio Manager on the Real Estate Securities Investment Team. As a Portfolio Manager, Ms. Wang evaluates global real estate companies with a particular focus on Asian and North American countries while managing and performing portfolio risk analysis. In addition to these duties, Ms. Wang

14 formulates investment strategies, spearheads thematic research projects and serves on the Real Estate Securities Management Executive Committee. Ms. Wang holds a Bachelor s degree in International Finance from the People s University of China (Beijing, China) and a Doctorate of Philosophy degree in Finance from the University of Texas at Dallas. Ms. Wang is a published author whose work has appeared in the Journal of Empirical Finance. During her Ph.D. education, Ms. Wang served as an instructor, a teaching assistant and a research assistant. Ms. Wang is a native mandarin Chinese speaker and prior to her Ph.D. education, had experience with China Computer Technologies and Services Co. in China. She holds the Chartered Financial Analyst (CFA ) designation and has 12 years of real estate and analytical investment experience. Bert Crouch Investment Officer, Real Estate Debt Investments Mr. Crouch recently joined IRE in conjunction with the expansion of its Real Estate Debt platform. In his role as Investment Officer, Mr. Crouch is primarily focused on the transactional side of private commercial mortgage investments including sourcing, structuring, pricing, and execution. More specifically, his responsibilities will include the acquisition and origination of senior and subordinated debt that is secured by commercial real estate. Before joining IRE, Mr. Crouch served as the Director of Acquisitions for Presidio Investments, a wholly-owned subsidiary of Hunt Realty Investments that is focused on secondary commercial mortgage acquisitions and more highly structured investments including CMBS and re-remic s. He was responsible for leading the execution of Presidio s investment strategy and assisting in the firm s overall effort with regard to capital markets, equity capital raise, and financing alternatives. Prior to Presidio, Mr. Couch worked in the New York office of Wells Fargo s Real state Merchant Banking Group rounding out his 9 years of experience. At Wells, he focused on originating and cquiring highly structured commercial mortgage products including nonrecourse bridge loans, construction loans, mezzanine financing, and preferred equity. Mr. Crouch holds a B.B.A. in finance with honors from the McCombs School of Business at the University of Texas at Austin, and he has also completed Wells Fargo s Credit Management Training Program in San Francisco