EFTA01389050.pdf

Adelante Capital Management Real Estate (REITs) As 030 2016 20.0 Adelante's investment philosophy is founded on the belief that the values of the underlying teal estate assets will uksmately drive stock performance over the king term. In the short term, the stock's price may diverge from the 18.0 real estate operating value due to a variety of factors. including broader equity trends, interest rate measures and 16O corporate events. The portfolio management team attempts to take advantage of these arbitrage opportunities, buying at a discount to fall value and selling at a large premium. 14.0 12.0 nvestment Selection Process 10.0 Adelaide adheres to specilic investment guidelines to achieve pedormance objectives and to manage portfolio risk. 8.0 Adelaide maintains a preference for 'core' institutional real estate property typos (o.g. apartments, office, industrial and retail), avoiding securities in narrovAy focused specialty real estate companies that they believe will not deliver 6.0 adequate long-term returns in relation to the level of risk assumed. M a diversification measure, accounts must be exposed to at least three property types. In addition, companies with a market capitalization of less than $100 milNon are screened out to avoid illiquid securities. • mud I 0 00 4.0 E 2.0 a YTD 1 Year 3 Years 5 Years II 0 Years Date Founded 9/3/1993 US Equity % 97.65 afitidelarde TRW/ (gross) iaitidelanto TRSW (n00 - S&P US REIT Firm Assets (SB) 2.3 Non-US Equity % 0.00 Quarter YTD 1 Year 3 Years 5 Years 10 Years Firm Employee Ownership (%) 100.00 US Bond % 0.00 Adelaide TRSW (gross) -1.0 7.3 14.2 t5.0 16.1 5.3 Inception Date 4/3/2000 Non-US Bond % 0.00 Adelante TRSW (net) -1.6 5.3 11.3 12.2 13.2 2.7 Product AUM (50) 0.1 Cash% 2.35 S8P US REIT -1.3 11.8 19.6 14.0 15.8 6.1 ..... ..... ..... ...„, ..... ...„, ..... 2015 2014 2013 2012 2011 2010 Display Benchmark 1: S&P US REIT Adel:into TRSW (gross) 5.9 33.7 2.8 17.1 9.7 29.6 Inv Bin" Adente la TRSW (net) 3.3 30.4 0.3 14.2 7.0 26.4 Inception Date 4/3/2000 — _ S&P US REIT 2.5 30.3 24 18.0 8.5 28.5 Product AUM (50) 0.1 a of Holdings 35 157 Avg Market Cap (SB) 14.7 10.3 Poor Group (1.100%). oA US REIT Portfolio Turnover (%) 47 — imu Top Quartile maw 2nd Quartile 3rd Quartile Bottom Quartile Div Yld 3.28 4.34 P/E 30.89 28 2.43.79 ii 30.0 P/8 3.04 25.0 P/S 6.77 6.87 E 20.0 CF Growth LT Earn Growth Sales Growth 4.92 6.78 417 14.45 5.73 1.50 a9 15.0 ix 7! 10.0 '7 3 5.0 •. Mist Earn Growth 26.49 19.62 0.0 ROA % (1TM) 4.96 4.05 el ROE % (TIM) 14.32 11.96 IS -5.0 OTD YT0 1 Year 3 Yeats 5 Years 10 Years Debt to Capital % (trailing) 52.43 51.95 Net Margin % (trailing) 28.79 25.81 • Ad•Irl• 1RSVIIna) • Abrial• TARN • Otos) Performance d snoian both gross and net of fees Net of fee returns reflect deduction of the maximum 2 5% annual fee Data frequency is monthly and all performance data and analysis is for the pencil circling as of current quarter end unless OthOMISO indicated C'ettSche flank weans siaregement These documents are for use in one-on-one client presentations. Page 1 of 5 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0093245 CONFIDENTIAL SDNY_GM_00239429 EFTA01389050