GATEWAY TO REAL ESTATE OPPORTUNITIES AND EXPERTISE REACH RESEARCH RESULTS

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1 GATEWAY TO REAL ESTATE OPPORTUNITIES AND EXPERTISE REACH RESEARCH RESULTS

2 PRINCIPAL GLOBAL INVESTORS REAL ESTATE HAS THE MARKET CONNECTIONS AND INSIGHTS TO DELIVER A CONTINUOUS SUPPLY OF QUALITY INVESTMENTS TO HELP MEET INVESTORS NEEDS. Pat Halter, Chief Executive Officer Principal Global Investors Real Estate

3 OVERVIEW Commercial real estate can play an important role in helping investors achieve their investment objectives, but getting the most out of the opportunities available requires specialized market knowledge, dedicated and experienced teams, and broad market access. Principal Global Investors Real Estate traces its history over more than six decades of real estate investment experience. 1 Over that time we have earned a reputation as a trusted advisor and built a top-tier investment platform. The breadth of our capabilities provides a distinct perspective on real estate and capital markets, and enables us to deliver the investment solutions our global client base expects. REAL ESTATE CAPABILITIES AND EXPERTISE Comprehensive market coverage provides benefits beyond relativevalue perspective We invest in all four quadrants of the commercial real estate market public and private equity, public and private debt. This holistic understanding of the market allows us to make a comprehensive risk-adjusted return assessment, across all quadrants, for our clients portfolios. Market reach and access enhanced by seasoned investment teams and extensive industry networks Our teams of experienced investment professionals, located in the United States, London, Singapore and Sydney, combined with their extensive industry networks, provide us access to a wide range of commercial real estate investment opportunities. RETURN Value-Added REITs Private Equity CMBS Core-Plus B-Notes REITs Mezzanine Debt Private Equity Preferred Equity CMBS Core Bridge Loans REITs Private Equity Core Mortgages CMBS Benefiting Performance and the Environment with an Innovative Sustainability Initiative Our Pillars of Responsible Property Investing initiative targets increased investment performance and environmental benefits through real estate fundamentals and operational excellence. In the past two years we have been recognized for being ranked among the top two Greenest Commercial Real Estate Companies. 2 Opportunistic REITs Private Equity CMBS Distressed Debt REOCs RISK 1 Experience includes investment activities beginning in the real estate investment area of Principal Life Insurance Company and continuing through the firm to present. 2 Ranked #2 in Commercial Property Executive rankings, published April 2012 and April 2013.

4 REACH The scope and scale of our commercial real estate platform, the size and geographic diversity of our investment teams, and the depth of their relationships within the industry frequently provide us with preferred access to commercial real estate investment opportunities. These same factors are also important contributors to our research, continuously incorporating real-time data and information into our underwriting and investment decisions. PRINCIPAL REAL ESTATE INVESTORS: OFFICE LOCATIONS RESEARCH Research is fundamental to our ability to assess relative value both within and across quadrants and to deliver on our clients investment goals. We combine top-down economic and sector analysis with bottom-up asset analysis as the foundation for our investment decisions and to equip our investment professionals with the insights they need to successfully execute strategies. At the top-down level, our macroeconomic and microeconomic research incorporates analysis of economic, demographic, political, technological, property and capital market trends. A COMMITMENT TO INNOVATION Established Private Equity Real Estate Division Launched Principal U.S. Property Separate Account3 First nonaffiliated domestic mortgage client Developed proprietary commercial mortgage credit risk rating model First non-affiliated international client Launched Commercial MortgageBacked Securities Investment Program Launched ConstructionPermanent Lending Program 3 The Principal U.S. Property Separate Account is an open-end, commingled real estate account available to retirement plans meeting the requirements for qualification under section 401(a) of the Internal revenue code of 1986 ( code ), as amended, and governmental plans meeting the requirements of section 457 of the code, as amended, since The account is managed by Principal Global Investors Real Estate, and maintained by Principal Life Insurance Company. It is only available to U.S. based investors through group annuity contracts issued by Principal Life Insurance Company.

5 We use current forecasts to develop a firm-wide consensus outlook for domestic and global economies and capital markets. From a bottom-up perspective, data from our extensive equity and debt transaction, leasing, and asset management portfolio provides information that is used in conjunction with external space and capital markets intelligence to develop forecasts for the 45-plus metropolitan statistical areas (MSAs) that we cover. Importantly, in order to determine relative value, we also use capital markets information including cap rate and pricing trends to evaluate whether space market trends are currently accurately priced into the commercial real estate markets. Both top-down and bottom-up data is used to complete an Economic Base Analysis (EBA) for each market that we cover. The EBAs are both qualitative and quantitative in nature and provide relative rankings as to the attractiveness of each MSA and the property types within each MSA. In addition, an integral part of our research is an in-depth evaluation of tenant credit quality, conducted by dedicated resources within Principal Global Investors Real Estate and supported by the fixed income credit team at Principal Global Fixed Income. Ultimately, the assessment made by each quadrant s team of dedicated investment professionals is the primary driver of investment decisions for that quadrant; however, insights from the investment professionals of the other quadrants may be leveraged when evaluating investment opportunities. We share our research insights with our clients and the industry in general, through a number of monthly, quarterly and annual publications. Our monthly Real Estate Four Quadrant Report is a key insight resource for all of our investment professionals and for commercial real estate professionals industry-wide. Our quarterly publications include Real Estate Insights and Capital Markets Insights. Additionally, our supply and demand research culminates in an annual Economic Base Analysis report for each MSA market. RESULTS Our goal is to deliver consistent, risk-adjusted, relative-value performance to our clients combined with superior service. Our market reach and research are vital to achieving that goal, but so is our commitment to innovation, whether it be sustainable investing or the next new generation investment strategy or solution Launched U.S. Real Estate Securities Strategy Launched Principal Development Investors, office development Launched Australian Real Estate Securities Strategy Launched open-end, Private Core-Plus Real Estate Strategy Launched Global Real Estate Securities Strategy Launched a dedicated closed-end Green Strategy for Private Real Estate Equity Launched CMBS Institutional Commingled Trust Launched High Yield Real Estate Debt Strategy Launched Retirement REdirect, suite of real estate solutions

6 Principal Global Investors Real Estate has the market connections and insights to deliver a continuous supply of investments to meet investors needs. REAL ESTATE PRIVATE EQUITY Our private equity platform covers all aspects of the private equity investment process, including portfolio management, acquisitions, dispositions, development, financing and asset management while the overall scale and scope of our business enables us to source and close a significant volume of quality investments to meet our clients needs. Our ability to continually deliver this pipeline of investment opportunities is supported by our in-depth coverage of more than 45 U.S. property markets and our access to off-market transactions. COMPREHENSIVE SUITE OF PRIVATE EQUITY ALTERNATIVES Range of Investment Capabilities: spanning from traditional core strategies that focus on stabilized, income-producing investments, to opportunistic property development and redevelopment. Principal U.S. Property Separate Account: a diversified, open-end, core commercial real estate equity fund for employee benefit plans that is one of the most widely used private commercial real estate investment vehicles in the United States. Targeted and foundational Green investing options: Our closed-end, value-added commingled fund and our open-end, core-plus commingled fund ranked #1 and #4, respectively, for corporate environmental policies and management in the United States. Across our investment vehicles, our Pillars of Responsible Property Investing Initiative strengthens financial performance through market resilience, corporate governance, and property performance strategies. 4 An investor initiative in partnership with UNEP FI and the UN Global Compact 4 Principal Global Investors Real Estate s closed-end value-added commingled fund ranked 1st in the U.S for corporate environmental policies and management. Rankings out of 6 U.S. diversified office/residential property funds. Principal Real Estate Investors core plus commingled fund ranked 4th among U.S. diversified property funds. Rankings out of 26 U.S. diversified property funds Global Real Estate Sustainability Benchmark (GRESB) survey, GRESB Foundation, data as of December 31, 2012.

7 We use our specialized knowledge of regional property markets to exploit inefficiencies and generate alpha for our clients. REAL ESTATE PUBLIC EQUITY Principal Global Investors Real Estate has been managing commercial real estate securities since Our dedicated investment team manages both separate accounts and commingled funds focused on: U.S. Real Estate Securities Global Real Estate Securities Global ex-u.s. Real Estate Securities IDENTIFYING INVESTMENT OPPORTUNITIES Our real estate securities team uses its specialized knowledge of regional property markets to exploit inefficiencies and generate alpha for our clients. They enhance their real estate securities expertise by leveraging the broader real estate insights of our combined debt and equity teams, as well as the global public securities intelligence of our investment colleagues at Principal Global Equities. The team uses both fundamental and quantitative research to analyze and select securities. We believe the integration of these two independent, but complementary, approaches to securities analysis provides us with a stronger indication of a security s performance potential by combining subjective and objective analysis.

8 When it comes to real estate private debt but particularly core mortgages and subordinated debt REAL ESTATE PRIVATE DEBT Principal Global Investors Real Estate is recognized as a leader in the commercial mortgage market, with significant experience in commercial loan origination and servicing. Our debt platform is vertically-integrated and incorporates underwriting, closing, appraisal, engineering, research, and servicing, which helps us control the timing and quality of every aspect of a deal. We have leveraged our experience to build an industry-leading real estate debt capability and as the complexity of real estate has increased, we have expanded our team s expertise to specialize in complex transactions including B-notes, mezzanine loans, construction loans and bridge loans in the same manner as traditional loans. our scale is a distinct advantage. Our ability to participate optimally anywhere along the debt spectrum makes us a recognized go-to resource for borrowers and peer lenders, which ultimately benefits our investors. COMMERCIAL MORTGAGE LENDING CAPABILITIES Fixed and Variable Rate Loans Subordinated Debt Construction/Permanent Lending Office, Retail, Industrial, Multi-Family, Hotel Lending Self-Storage and Manufactured Housing Lending Preferred Equity Investors can execute these debt strategies through a variety of vehicles, including closed-end funds, separately managed accounts, and co-lending/investment.

9 Our ability to analyze, at a very granular level, the loans that make up a CMBS pool is absolutely critical to our investment process. It hinges not only on the expertise of our dedicated CMBS team, but the market insights provided by all of our real estate investment professionals and it ultimately drives our potential to deliver consistent, risk-adjusted outperformance for our clients. REAL ESTATE PUBLIC DEBT Principal Global Investors Real Estate was one of the early investors in the Commercial Mortgage-Backed Securities (CMBS) market, and we have been applying our proprietary default model to every conduit issuance since Today, we conduct independent research on more than 600 CMBS bonds per year both seasoned and new issue pools. All of our strategies are managed by a dedicated team of investment professionals focused exclusively on CMBS. CMBS STRATEGIES Asset-Liability Matching Total Return Yield Oriented Opportunistic / Specialty SEEKING CONSISTENT OUT-PERFORMANCE Our CMBS investment philosophy is based on the belief that security selection, combined with disciplined surveillance and monitoring, is the key to consistent outperformance. We aim to achieve this through a consistent balance of quantitative modeling and fundamental qualitative analysis. A key component in our analysis is our proprietary dynamic CMBS default model, which allows us to analyze a full distribution of potential bond returns, under 2,000 different economic scenarios, including tail events. Granular loan-level analysis is an essential part of our investment process, incorporating insights from Principal Real Estate Investors debt and equity professionals. Given the fixed income characteristics of CMBS, the team also leverages the expertise of Principal Global Fixed Income.

10 Core, Value-Added and Opportunistic Properties PRIVATE EQUITY PUBLIC EQUITY Real Estate Investment Trust Securities FOUR QUADRANTS YOUR CHOICE YOUR PORTFOLIO Principal Global Investors Real Estate Commercial Mortgages, Bridge & Mezzanine Loans PRIVATE DEBT PUBLIC DEBT Commercial Mortgage-Backed Securities Today s investor increasingly wants an investment solution that is uniquely theirs. Principal Global Investors Real Estate can deliver such a solution because we are not limited to any one commercial real estate strategy. Our expertise in all four real estate quadrants can help clients by customizing a commercial real estate portfolio that helps to meet their unique risk and return objectives. One example of how we put our broadbased real estate expertise to work for investors is Retirement REdirect a suite of solutions-based commercial real estate strategies designed for Defined Benefit (DB) and Defined Contribution (DC) target-date funds. These strategies make it possible for DB and DC plans to efficiently access a dynamic allocation to the four quadrants of commercial real estate. So, whatever commercial real estate strategy or combination of strategies you believe is right for your objectives, Principal Global Investors Real Estate can help and we look forward to talking with you. CLIENTS GET THE BEST OF BOTH WORLDS WITH PRINCIPAL REAL ESTATE INVESTORS: THE FOCUSED EXPERIENCE OF EACH QUADRANT TEAM COMBINED WITH THE INSIGHTS AND POTENTIAL VALUE ADDED FROM CROSS-TEAM COLLABORATION.

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12 OUR EXPERTISE IN ALL FOUR QUADRANTS OF THE REAL ESTATE MARKET EQUIPS US WELL TO MEET THE SOLUTIONS-ORIENTED NEEDS OF TODAY S INSTITUTIONAL INVESTOR. The information in this document has been derived from sources believed to be accurate as of March Information derived from sources other than Principal Global Investors is believed to be reliable; however, we do not independently verify or guarantee its accuracy or validity. Investments in real estate are subject to various risks including liquidity risk and other risks inherent in real estate such as those associated with general local economic conditions. Payment of principal and earnings may be delayed. Investment guidelines are subject to change. The information in this document contains general information only on investment matters and should not be considered as a comprehensive statement on any matter and should not be relied upon as such nor should it be construed as specific investment advice, an opinion or recommendation. The general information it contains does not take account of any investor s investment objectives, particular needs or financial situation, nor should it be relied upon in any way as a forecast or guarantee of future events regarding a particular investment or the markets in general. All expressions of opinion and predictions in this document are subject to change without notice. Any reference to a specific investment or security does not constitute a recommendation to buy, sell, or hold such investment or security. Subject to any contrary provisions of applicable law, no company in the Principal Financial Group nor any of their employees or directors gives any warranty of reliability or accuracy nor accepts any responsibility arising in any other way (including by reason of negligence) for errors or omissions in this document. All figures shown in this document are in U.S. dollars unless otherwise noted. This document is issued in: The United States by Principal Global Investors, LLC, which is regulated by the U.S. Securities and Exchange Commission. The United Kingdom by Principal Global Investors (Europe) Limited, Level 1, 1 Wood Street, London EC2V 7JB, registered in England, No , which has approved its contents, and which is authorised and regulated by the Financial Conduct Authority. Singapore by Principal Global Investors (Singapore) Limited (ACRA Reg. No H), which is regulated by the Monetary Authority of Singapore. In Singapore this document is directed exclusively at institutional investors [as defined by the Securities and Futures Act (Chapter 289)]. Hong Kong by Principal Global Investors (Hong Kong) Limited, which is regulated by the Securities and Futures Commission and is directed exclusively at professional investors as defined by the Securities and Futures Ordinance. Australia by Principal Global Investors (Australia) Limited (ABN , AFS Licence No ), which is regulated by the Australian Securities and Investments Commission. This document is issued by Principal Global Investors LLC, a branch registered in the Dubai International Financial Centre and authorized by the Dubai Financial Services Authority as a representative office and is delivered on an individual basis to the recipient and should not be passed on or otherwise distributed by the recipient to any other person or organisation. This document is intended for sophisticated institutional investors only. In the United Kingdom this document is directed exclusively at persons who are eligible counterparties or professional investors (as defined by the rules of the Financial Conduct Authority). In connection with its management of client portfolios, Principal Global Investors (Europe) Limited may delegate management authority to affiliates that are not authorised and regulated by the FCA. In any such case, the client may not benefit from all protections afforded by rules and regulations enacted under the Financial Services and Markets Act Insurance products, plan administrative services and separate accounts which are available through a group annuity contract are provided by Principal Life Insurance Company (Principal Life) a member of the Principal Financial Group (The Principal ), Des Moines, IA The Principal Financial Group and The Principal are registered trademarks of Principal Financial Services, Inc., a member of the Principal Financial Group. FF