Attractive Risk-Adjusted Returns through Strategic Investments

The Fund seeks to generate attractive risk-adjusted returns through real estate investments. This strategy is executed by combining sophisticated capital market and investment expertise with extensive asset management, operating capabilities and experience.

Recognizing and Responding Quickly to Capital Flow Cycles

Real estate is a cyclical business with its cycles determined, in large part, by capital flows. A sound investment strategy must recognize the importance of these cycles and requires a commitment to maintain pricing discipline when buying and a willingness and an ability to move quickly to sell when the value enhancement program has been completed and the markets are fully valuing asset and market fundamentals.

Utilizing Debt Appropriately

The Fund believes leverage should be used at a level that provides a meaningful enhancement to investment returns, but not be so high that a fundamentally sound asset will be put at risk during periods when rental markets soften or capital markets become constrained.

Mitigating Risk through Asset Quality and Tenant Service

In selecting investment opportunities, careful assessment must be made of the risk profile of the various alternatives. In rental real estate, risk comes in basically two forms: rental rate risk and vacancy risk, with the greatest investment risk coming from the substantial costs that are incurred through vacancy. The Fund believes that both of these risks are best mitigated by investing in properties that, due to their location, physical quality, amenities and other attributes, will always be preferred locations. These risks are then further mitigated by operating these properties with an unwavering focus on responsive and cost-effective service to tenants so that opportunities to expand and retain tenants on the most favorable terms are maximized.