Invesco Equity Global Real Estate Securities Trust. 4Q09 Preliminary Fund Review. January 26, 2010

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1 Invesco Equity Global Real Estate Securities Trust 4Q09 Preliminary Fund Review January 26, 2010 North America: Dallas San Francisco Newport Beach New York Atlanta Europe: London Paris Munich Prague Madrid Asia: Hong Kong Shanghai Tokyo

2 Table of Contents 1. Invesco Overview 2. Performance & Portfolio Overview 3. Current Valuations 4. Current Market Commentary CONFIDENTIALITY NOTICE: All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments there are associated inherent risks. Please obtain and review all financial material carefully before investing. This publication may contain confidential and proprietary information of Invesco Institutional and/or Invesco Ltd. Circulation, disclosure, or dissemination of all or any part of this material to any unauthorized persons is prohibited. Unauthorized reproduction or distribution of all or any part of this material is prohibited. 2

3 Section 1 Invesco Overview

4 The Value We Deliver To Our Clients Specialized investment capabilities globally Invesco Ltd. Investment Teams 600 investment professionals On the ground research in over 20 countries Distinctive investment teams Disciplined investment processes Local and global oversight Total AUM: $416.9 Billion Invesco Aim Investment focus: U.S., international and global equities Invesco Asia- Pacific Investment focus: Asian Ex-Japanese, Greater Chinese, Japanese and Australian equities Atlantic Trust Investment focus: High-net-worth multimanagement Invesco Global Strategies Investment focus: Global Equity (Global, non-u.s., and Emerging Market equities) Global Quantitative Equity (quantitative active, enhanced and long/short strategies) Global Asset Allocation (tactical asset allocation, alternative beta, and multi-asset class solutions) Invesco Perpetual Investment focus: U.K. equities, fixed income and European equities Invesco PowerShares Investment focus: ETFs Invesco Private Capital Investment focus: Fund of funds and venture capital private equities Invesco Real Estate Investment focus: Global direct real estate investing and public real estate investing Invesco Trimark Investment focus: Canadian equities, fixed income and global value WL Ross Investment focus: Distressed and restructuring private equities Invesco Worldwide Fixed Income Investment focus: Money market, stable value, global fixed income and alternatives/ financial structures As of September 30, The listed investment centers do not all provide products or services that are available in the U.S., nor are their products and services available on all platforms. Please consult Invesco for more information. 4

5 Invesco Real Estate As of December 31, 2009 $26.3 Billion Under Management 223 employees worldwide San Francisco Newport Beach New York Atlanta Dallas Prague London Paris Munich Madrid Tokyo Shanghai Hong Kong Direct Real Estate Investments $17.9 billion under management Since 1983 Real Estate Securities Management $8.4 billion under management Since 1988 Assets as of Dec. 31, 2009 in U.S. billions 5

6 Invesco Real Estate Global Equity Real Estate Securities Team as of December 31, 2009 Name Real Estate Securities Investment Team Joe V. Rodriguez, Jr. James Trowbridge Mark Blackburn, CPA, CFA Ping-Ying Wang, Ph.D., CFA Paul Curbo, CFA James Cowen Patrick Beytagh Chris Faems, CFA Martin Hurtado Grant Jackson Xiaoying (Catherine) Li Shabab Qadar Larisa Sanders Credit and Tenant Research Darin Turner Min Zhang, CFA Average portfolio manager experience: Average analyst experience: Average investment team experience: Title Portfolio Manager Portfolio Manager Portfolio Manager Portfolio Manager Portfolio Manager Portfolio Manager Senior Analyst Senior Analyst Securities Analyst Securities Analyst Securities Analyst Securities Analyst Associate Analyst Manager, Credit Market Analysis Securities Analyst 21 years 11 years 15 years Years of Experience Years With Invesco Laler DeCosta Client Portfolio Manager 27 Client Portfolio Managers * Rita Ling Client Portfolio Manager 19 ** Walt Stabell Client Portfolio Manager 24 4 Max Swango Client Portfolio Manager *Not involved in managing assets of the fund and are excluded from portfolio manager and investment team experience calculations. **Started with Invesco 11/09/09 6

7 Section 2 Performance & Portfolio Overview

8 Invesco Equity Global Real Estate Securities Trust Fund Summary As of December 31, Percent QTR 1 Year 3 Year Since Inception (9/06-12/31/09) Global IRT FTSE EPRA/NAREIT Developed Index Sources: FTSE International Limited ( FTSE ) FTSE FTSE is a trade mark of London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited under license. All rights in the FTSE Indices vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE Indices or underlying data. Past performance is not a guarantee of future results. 8

9 Stanislaus County Employees Retirement Association As of December 31, 2009 Client Funded 3/2008 $20,000, Market Value as of 12/09 $15,594, Performance QTR 1 Year Since Inception (03/08-12/09) Total Fund Gross 4.38% 34.87% % Total Fund Net 4.17% 33.83% % FTSE EPRA/NAREIT Developed Index 4.40% 38.26% % 9

10 Invesco Equity Global Real Estate Securities Trust Fund Characteristics Quarter Ended December 31, Country Weights vs. Current Guidelines Fund FTSE EPRA/NAREIT Developed Index percent US Canada UK Netherlands France Australia Japan Hong Kong Singapore Other Cash North America Europe Asia No. of Securities Market Correlation (R-Squared) Equity Beta Earnings Multiple Expected Earnings Growth Multiple to Growth Ratio Leverage Dividend Yield Dividend Coverage Dividend Payout Average Market CAP Fund x 3% N/M 2 40% 3.98% x 62% $5,585 MM FTSE EPRA/NAREIT Developed Index x 0% N/M 2 42% 3.9% 1.72x 58% $2,913 MM 1 Sources: FTSE EPRA/NAREIT and IRE as of 12/31/09. FTSE International Limited ( FTSE ) FTSE FTSE is a trade mark of London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited under license. All rights in the FTSE Indices vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE Indices or underlying data. Past performance is not a guarantee of future results. The FTSE EPRA/NAREIT Developed Index is an unmanaged index considered representative of global real estate companies and REITs. An investment cannot be made directly in an index. 2 N/M=Not meaningful 3 Dividend yield for fund is based on indicated yield per Bloomberg which incorporates company dividend reductions that may not yet be included in the 10 index dividend yield.

11 Invesco Equity Global Real Estate Securities Trust Fund Commentary Quarter Ended December 31, 2009 Australian portfolio weight remained overweight throughout the period. Key portfolio activity was the sale of GPT (diversified) and the addition of Commonwealth Property Office Fund, which stands to directly capture any improvement in office markets from the improving economic environment. After successful recapitalization activity, we increased our holding in diversified investor and developer, Goodman Group, given more attractive relative value. In Europe, a general trend has been to increase exposure to mid-cap sized companies which we believe are well placed to emerge as outperformers through the next cycle. In particular, we added to existing holdings in Big Yellow (Self Storage) and Unite Group (Student Housing) and established a new holding in Hansteen (industrial) in the UK. These additions saw the UK move from underweight to a relative overweight within the global portfolio. Reductions were made to Land Securities and Derwent London as their relative value reduced through relatively stronger performance. In Europe, we increased our holding weight to Castellum (offices), which moved Sweden to a relative overweight. This search for higher cashflow yielding companies with higher quality assets and management strategies, trading at discounted valuations, also saw us take a new position in Prologis European Trust (logistics). Relatively stronger performance among the mall owners in Europe saw reductions in positions in Corio, Klepierre and Vastned Retail. In France, we also sold a position in diversified, Foncierre des Regions, and acquired a holding in Gecina in order to obtain an exposure toward the recovery in values in higher quality Paris located offices. In Singapore, we sold a position in Keppel Land after relatively strong performance and re-invested proceeds to obtain similar office focused exposure by establishing a position in Suntec REIT. In addition, we reduced exposure in CapitaLand and increased weight in higher yielding and more sector focused CapitaMall (retail) and CapitaCommercial Trust (office). In Japan, most of the portfolio activity centered on trading relative value amongst the J-REIT stocks. A key theme here was a repositioning away from exposure to regional city office markets toward the Tokyo office market, which retains better prospects of stability and renewed letting activity. Disposals included NTT Urban, with reductions to Nippon Building Fund and Japan Real Estate. New positions were established in United Urban, Frontier Real Estate and Kennedix. In Hong Kong, changes to the portfolio centered on modestly flattening exposure between Hong Kong focused investors and China developers and across the real estate sectors. Additionally, within the China developer stocks, we reduced exposure to those likely to be more sensitive to government policy measures designed to avoid excessive real estate speculation. Overall, we reduced the level of overweight exposure to Hong Kong/China. In specific stock weight changes, a position in China developer, Shimao, was sold, while reductions were made to holdings in China Overseas Land, Kerry Properties and Link REIT. New positions were established in Hong Kong focused Glorious and China developer names including Agile, Guangzhou R&F and KWG Property. In the U.S., the underweight exposure to the region was marginally reduced during the period. At the stock level, key activity saw addition to positions in the lodging sector given favorable relative valuations which have incorporated a significant decline in underlying fundamentals. If economic growth continues to progress, then lodging fundamentals should stabilize and begin to improve during We added to existing positions in Regency Centres (shopping centers) and AMB (industrial) given favorable valuations relative to peers. We also added to our existing position in Digital Realty Trust given the outlook for better than peer earnings growth, supported by above-average fundamentals in the data center space and the firm s growing external growth (e.g., acquisitions and redevelopments) pipeline. Regardless of sector we reduced exposure to several relatively low risk stocks where valuations appeared relatively rich. Such reductions occurred in several positions in the shopping center and apartment sectors. 11

12 Section 3 Current Valuations

13 Annual FTSE EPRA/NAREIT Equity Index Returns (%) Average annualized return = 12.2% Source: FTSE EPRA/NAREIT as of 12/31/09 13

14 Global REIT Performance During Correction (Index, 1999 = 100) % Decline From Peak /31/99 03/31/00 06/30/00 09/30/00 12/31/00 03/31/01 06/30/01 09/30/01 12/31/01 03/31/02 06/30/02 09/30/02 12/31/02 03/31/03 06/30/03 09/30/03 12/31/03 03/31/04 06/30/04 09/30/04 12/31/04 03/31/05 06/30/05 09/30/05 12/31/05 03/31/06 06/30/06 09/30/06 12/31/06 03/31/07 06/30/07 09/30/07 12/31/07 03/31/08 06/30/08 09/30/08 12/31/08 03/31/09 06/30/09 09/30/09 12/31/09 Source: Ibbotson Associates and FTSE EPRA/NAREIT as of 12/31/09 14

15 YTD Performance: Quoted Property Stocks As of December 31, 2009 Divergence of returns may provide active management opportunities Global Weighted Average: 38.26% North America Canada U.S. Germany France Europe Sweden Netherlands U.K. Singapore Asia Pacific Japan Hong Kong Australia Percent Source: Invesco Real Estate based on data from FTSE International Limited (FTSE) 2009 in U.S. dollars. Past performance cannot guarantee comparable future results. 15

16 Global Real Estate Securities Valuation Metrics As of December 31, % 30% 28% 7.9% Cap Rate Next 12 Months Earnings/Cashflow per Share Growth Next 12 Months NAV per Share Growth Premium/Discount to NAV/Share at 12/31/ % 20% 7.5% Cap Rate 10% 0% 8% 0% 0% 7.0% Cap Rate 7% -2% 4% 7% 1% 7% 5% 4% 8% 4% 2% 0% 0% -2% 0% -2% 2% 0% 8% -10% -12% -14% -15% -20% USA Singapore Canada Global UK Australia Cont. Europe Japan Hong Kong 16 Source: Invesco Real Estate estimates based on consensus data as of 12/31/09. Note: The USA NAV premium is based on third party provided 7.9% nominal cap rate. If the cap rate is 7.5%, the current USA valuation would be a 15% premium. If the cap rate is 7.0%, the current USA valuation would be a 1% premium. If the cap rate is 7.5%, the current Global valuation would be a 2% premium. If the cap rate is 7.0%, the current Global valuation would be a 3% discount.

17 Section 4 Market Commentary

18 Market Commentary Quarter Ended December 31, 2009 Global Market Commentary: The past quarter saw continued economic recovery across the globe, with expectations that GDP growth will be positive for all developed and major developing economies during the period. Asian economies continue to lead the way, with western economies evidencing positives despite the obvious longer-term impacts of the ongoing de-leveraging process. Key questions now lie in the timing of the withdrawal of stimulus packages and the likely unpalatable measures required across most western economies to stem and then reduce rising debt to GDP ratios. While trends are positive in the West, labor markets remain weak, capacity utilization is still low, and the availability of credit is still constrained. Real estate occupier markets remain challenging across most of the globe, with minimal corporate expansion as yet evident in the Western economies. However, demand for quality real estate investment product remains high in all regions, particularly for prime quality assets with long term income. As such, asset values have risen in many markets during the period and are expected to be evidenced in rising net asset values among the listed companies. Having seen the bulk of the sectors capital raising activity in previous quarters, recent months have begun to see companies with stronger balance sheets using their resources to acquire assets and reposition portfolios for the upcoming cycle. 18

19 Market Commentary Quarter Ended December 31, 2009 U.S. Market Commentary: The U.S. economy provided signs of continued improvement during the fourth quarter. Most economic measures improved, offering indications that the economy has transitioned from a contraction phase into an expansionary phase. Nevertheless, the pace of the recovery remains relatively modest and the transition from government stimulus-induced growth to a private economic recovery is uncertain. While the labor markets have improved as layoffs have moderated, significant capacity persists and new hiring remains quite weak when measured by historical standards. Following the improvement in many economic indicators, most equity markets trended higher during the quarter. However, rising interest rates remain a potential headwind to future economic growth. Indeed, the 10-year treasury rate sold off with the yield rising by over 50 bps during the quarter. Real estate property fundamentals remained challenging with most property sectors still experiencing weak tenant demand and falling rents. Despite the challenging underlying property fundamentals, the U.S. REIT market generally followed the overall equity markets and continued to post gains during the quarter. From a sector perspective, the industrial sector generated the strongest performance following relatively positive commentary from company management teams during earnings conference calls. Canada (N.A.) Market Commentary: Canadian economic data remained mixed with a near-term bias toward stabilization and modest recovery. The most recent GDP report in October indicated an increase of 0.2%, the second consecutive monthly advance. As was the case during September, industrial production increased in most major sectors. In addition, November employment grew by 79,000, five times expectations. The unemployment rate however remains near an 11- year high of 8.5%. The Canadian REIT market significantly outperformed the broader market as favorable job reports boosted investor expectations for improving real estate space demand. Hotel and retail REITs were among the better performing property sectors during the final calendar quarter. 19

20 Market Commentary Quarter Ended December 31, 2009 Asia Market Commentary: Asian economies saw continued signs of economic recovery during the quarter as industrial production, retail sales and labor market conditions improved and in some cases, exceeded expectations. Hiring intentions across Asia ex-japan showed significant improvement. Against the backdrop of global economic recovery taking hold, various Asian countries embarked on the initiatives of withdrawing stimulus put in place over the past months. While Vietnam was the first Asian country to raise interest rates, Singaporean, Chinese and Hong Kong authorities took various tightening measures targeting the residential real estate market following a year of substantial price increases and concerns for asset bubbles. Commercial real estate tenant demand continued to improve during the period. During the quarter, a substantial amount of capital raising and merger and acquisition activities took place in the Asian real estate sector. One of Singapore s largest developers, CapitaLand, listed its pan-asia retail real estate business in an IPO that was the largest in Singapore in over two decades. A number of Chinese residential developer stocks also conducted initial public offerings in Hong Kong. Meanwhile, the Japanese real estate sector saw a number of JREITs finding new sponsors, issuing equity, and/or acquiring assets as the Japanese real estate capital market continued to improve. Australia Market Commentary: The Australian economy s resilience continued with 3Q09 QoQ GDP growth of +0.2% and YoY growth of +0.6%. While this has slowed from 2Q09 numbers of +0.6% and +0.4%, it was somewhat expected in light of the reduction in government stimulus and the fact that the Reserve Bank of Australia (RBA) raised interest rates by 75 basis points in the quarter. The unemployment rate in Australia has actually decreased in the quarter, going from 5.8% to 5.6%, and all indications are that hiring will continue to be positive heading in Real estate property fundamentals are showing signs of bottoming, especially in the more economically sensitive office and industrial sectors. Retail continues to be strong given favorable trends in retail sales, buoyed by government handouts earlier in the year, historically low interest rates for most of the year, and a much stronger than anticipated labor market. Australian REIT performance for the fourth quarter 2009 was relatively in-line with the broader equity markets. Although a few A-REITs continued to raise equity capital in the quarter to reduce debt, the first signs of accretive acquisition activity also occurred. Look for this trend to continue into 2010 as the haves look to deploy their strengthened balance sheets in accretive acquisitions and M&A deals. During the quarter, the sectors that outperformed were primarily office and industrial as investors confidence increased regarding property fundamentals. 20

21 Market Commentary Quarter Ended December 31, 2009 Europe Market Commentary: Consistent with the rest of the world, European economic conditions generally maintained their improvement through the fourth quarter. All major European economies are expected to exhibit expansionary GDP growth in the period. However, evidence of divergent trends and the long-term nature of de-leveraging remain evident with national debt to GDP still rising in most nations, savings rates maintaining their relatively higher levels, and bank lending activity remaining weak. Greece saw its sovereign debt downgraded by rating agencies, with some expectations in the market that other higher leveraged European economies may see the same fate in However, with general data trends still creating positive sentiment, equity markets generally continued to rally in the period. Listed real estate securities generally maintained comparable performance, with the UK and Dutch companies generally better performing and the Austrian and German companies generally lagging. This is consistent with the market looking beyond a high beta bounce and seeking value with the prospect of earnings or net asset value growth and sustainable cashflow. Evidence of greater private real estate market liquidity has been seen during the quarter, with a number of the listed real estate companies beginning to use their balance sheet capacity to acquire assets or strategically re-shape their portfolios. This has been most notable in the UK, albeit signs of life in France and across the mall sector in Europe have also been evident. Renewed liquidity is leading to a rise in asset values, in particular for higher quality assets with longer term, higher quality income. It is expected that year-end net asset values for listed companies will positively reflect this demand. 21