Presentation for - Retirement...Producer-Writers Guild of America Sompo Japan Nipponkoa Asset Management Co., Ltd. State Board of Administration of Florida State of Wisconsin Investment

Presentation for:

Water and Power Employees’ Retirement PlanAugust 8, 2018

Please see appendix for important disclaimers and other important information.In addition, please note that this presentation does not constitute (i) an offer to sell, or the solicitation of an offer to buy, any interests in any investment vehicle, or (ii) a solicitation for any investment advisory or asset management services of Heitman or any of its affiliates. Any such offer or solicitation, if made, will only be made by means of a placement memorandum (in the case of an investment vehicle) or a proposed investment advisory agreement (in the case of advisory or asset management services). Further, this presentation is subject to correction, completion and amendment without notice.

Table of Contents

2Table of Contents

Heitman Overview 3

Investment Process & Discipline 7

Market Overview 9

Performance Review 13

Portfolio Review & Characteristics 21

Conclusion 27

APPENDICES

− Fee Schedule 29− Glossary of Investment Terms 31− Biographies 33− Performance Notes & Disclaimer 35

Michael MoranSENIOR VICE PRESIDENT, PUBLIC REAL ESTATE EQUITYT: +1.312.425.0383 • [email protected]

John MancusoSENIOR VICE PRESIDENT, CLIENT SERVICE & MARKETING – NORTH AMERICAT: +1.312.912.6672 • [email protected]

Heitman is a Real Estate Specialist

As of June 30, 208

3

50 years investing on behalf of clients with an exclusive focus on real estate

$42 billion managed across three complementary business units

36 partners from across the Heitman platform own 100% of the company

CHICAGO

LOS ANGELES

LONDON

FRANKFURT

LUXEMBOURG

MUNICH

WARSAW

HONG KONG

MELBOURNE

SEOUL

TOKYO

11 Offices

332Employees

$35BPRIVATE EQUITY

$2BPRIVATE DEBT

$5BPUBLIC EQUITY

Heitman Overview

Client Relationships Built on Trust and Experience

AUM of $41.5 billion as of June 30, 2018Heitman selected clients for inclusion in this list to indicate the scope of clients served using the following criteria: category, geographic location, size, investment style and name recognition. Only clients who have consented to their name appearing on this list have been included, however, their inclusion is not construed to be approval or disapproval of Heitman or its advisory services.1. Other clients include: Individual, Endowment/Foundation, Union/Taft-Hartley, Insurance, Fund of Funds, Mutual Fund and Sovereign

Wealth Funds2. Corporate includes sub-advised and model-only portfolios

4

REPRESENTATIVE CLIENT LIST

APG Investments

ATP Real Estate

BT Investment Solutions (Australia)

California State Teachers’ Retirement System

Exelon Corporation

GE Capital Real Estate

HI Asset Management Co., Ltd

L-3 Communications Corporation

Munich Ergo Asset Management GmbH

National Pension Service (South Korea)

Navy Exchange Service Command Retirement Trust

New York State Common Retirement Fund

Nomura Asset Management Co., Ltd.

Ohio Public Employees Retirement System

Pennsylvania State Employees’ Retirement System

Producer-Writers Guild of America

Sompo Japan Nipponkoa Asset Management Co., Ltd.

State Board of Administration of Florida

State of Wisconsin Investment Board

Stichting Instituut Gak

Syntrus Achmea

Sunsuper (Australia)

Teacher Retirement System of Texas

Teachers' Retirement System of the State of Illinois

The Korean Teachers’ Credit Union

Tokio Marine Asset Management Co., Ltd.

59%

Public

$24,616

32%

Corporate²

$13,312

9%

Other¹

$3,576

TOTAL AUM BY CLIENT TYPE

74%

North America

$30,627

10%

Europe

$4,278

16%

Asia-Pac

$6,599

TOTAL AUM BY DOMICILE

Heitman Overview

Global

Benchmarked

Securities

$1.2B

23%

Prime

$2.6B

50%

US

Benchmarked

Securities

$1.4B

27%

Why Heitman?

Experience− 18 member global investment team made up of country

and sector specialists with 15 average years of experience

Information Advantage− Over $36B global private platform

Risk-Adjusted Performance− Top quartile information ratio

− Consistently low tracking error

Team Alignment− Employee ownership and compensation structure

aligns the team with clients

5Heitman Overview

As of June 30, 2018From Thomson Reuters Lipper Awards, ©2017 Thomson Reuters. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited.

$5.3 Billion Assets Under Management

Heitman’s Global Public Equity Team

6Heitman Overview

As of June 30, 20181. Jerry Ehlinger was with Heitman’s Public Securities group from 2000 to 2004; he rejoined in 2013 as Managing Director & Portfolio Manager of the North America team.2. John White began his relationship in 2007 as a Portfolio Manager at Challenger Financial Services Group, Heitman’s former strategic partner covering Asia-Pacific

Jerry Ehlinger, CFA¹Senior Managing Director

Firm Tenure

Years Experience8

23

REGIONALINVESTMENT TEAM

Jerry Ehlinger, CFA¹SENIOR MANAGING DIRECTOR

Jeff Yurk, CFAPORTFOLIO MANAGER

Charles Harbin, CFAPORTFOLIO MANAGER

Mat SpencerPORTFOLIO MANAGER

Gabriel HilmoeSENIOR ANALYST

John Minor, CFA ANALYST

Mark ZaharaHEAD TRADER

Vicky Madison TRADER

14

16

8

16

3

7

2

14

<1

7

18

18

John White²SENIOR MANAGING DIRECTOR

Karena FungPORTFOLIO MANAGER

Jeff Mak, CFAASSISTANT PORTFOLIO MANAGER

Jason Lai, CFASENIOR ANALYST

Philip HunterTRADER

Jacques PerdrixSENIOR VICE PRESIDENT,

PORTFOLIO MANAGER

Andreas WelterSENIOR VICE PRESIDENT,

PORTFOLIO MANAGER

Jacques PerdrixPORTFOLIO MANAGER

Andreas WelterPORTFOLIO MANAGER

Fabien VaccaroSENIOR ANALYST

Peter BurdettTRADER

5

14

9

16

5

20

7

16

<1

16

1

14

8

23

11

27

EUROPE ASIA-PACIFICNORTH AMERICA STRATEGY

Mike Moran, CFASENIOR VICE PRESIDENT,

GLOBAL INVESTMENT STRATEGIST

10

13

6

6

25

25

3

6

12

14GLOBAL INVESTMENT COMMITTEE

5

172

11

ANALYTICS

Shruti WaghrayVICE PRESIDENT

Will LouxAVP, PORTFOLIO ANALYST

Tony VoASSOCIATE

Diane LehmannPORTFOLIO COORDINATOR

<1

7

OPERATIONSBill Pogorelec

DIRECTOR OF OPERATIONS

Hima PandyaMANAGER

David RadziwonMANAGER

Colleen CallahanTRADING

ADMINISTRATOR

Paul Wilson TRADING

ADMINISTRATOR

Michael ServialRECONCILIATION

ASSOCIATE

23

25

<1

11

1

9

2

23

2

6

1

12

5

14

9

16

Philosophy & Process

As of June 30, 2018

7Investment Process & Discipline

$36.2 billion private global portfolio

Experienced and local securities teams

Private real estate expertise

Public market acumen

Sophisticated portfolio

construction & risk management

Top quartileperformance

Over the long term, underlying real estate

and management’s ability to affect value

drive share prices

Short-term pricing inefficiencies create alpha opportunities

Summary of WPERP’s Investment GuidelinesPORTFOLIO GUIDELINES:

1. Global securities with minimum market capitalizations of $200mm at purchase, restricted to those listed on major local-country stock exchanges.

Investible markets are those within the FTSE EPRA/NAREIT Developed Index

2. Non-currency derivatives within the portfolio are not permissible without the expressed written consent of the Plan

3. Currency hedging maximum of 25% of the portfolio

4. Minimum of 50 issues quoted in at least 10 countries/regions. The maximum size of any single issue shall be the greater of 5% of the portfolio or 125% of

the benchmark weight, except at no time shall any specific issue represent more than 10% of the lesser of cost or market value of the portfolio. No issue

purchased in the portfolio if more than 10% of outstanding share of that company are held by Heitman in the total of all accounts

5. Cash equivalent not to exceed 5% of the portfolio

6. Turnover not to exceed 150% in any twelve month period

7. Cannot purchase letter or restricted stock, naked options or future contracts, and uncovered short positions or commodities. Use of any derivative

instruments for speculation is prohibited

8. Rule 144A international equity instruments with registration rights are permissible up to 10% of the lesser of cost or market value of any single international

equity portfolio

9. Ineligible for cross transactions

PORTFOLIO CHARACTERISTICS:

1. Invested in broad array of countries within the FTSE EPRA/NAREIT Developed Index

2. Weighted average dividend yield on a quarterly basis to be within a +/- 0.5x range of the market as represented by the FTSE EPRA/NAREIT Developed

Index

3. Market sensitivity (beta) to be no less than 0.80 and no greater than 1.20 of the market as represented by the FTSE EPRA/NAREIT Developed Index on a 24-

month rolling basis, using monthly holdings data

PERFORMANCE OBJECTIVES:

− On an annual basis, Heitman is expected to outperform the FTSE EPRA/NAREIT Developed Index, net of fees, to be measured over a market cycle of three-to-

five years

COMPLIANCE:

− With the exception of the recent portfolio turnover, Heitman is in compliance with the guidelines for the year ending June 30, 2018

− As of June 30, 2018, the one-year turnover was 154% for both accounts

8Investment Process & Discipline

Investment Themes & Outlook

9Market Overview

GLOBAL INVESTMENT OUTLOOK

Macro Economy

− The economic cycle continues as global growth has become

more synchronized

− Political uncertainties continue to add to market uncertainty,

along with concerns about a potential US-led global trade war

Capital Markets

− The after effects of unprecedented central bank easing policies

are allowing continued access to equity and debt capital globally

− M&A activity has picked up and could continue as long as the

capital markets remain robust

Real Estate Markets

− Economic growth should lead to slow but steady job growth that

will drive demand for commercial real estate

− New supply remains in check in most areas given risk aversion

and lack of funding due to tighter regulations on banks-2

-1

0

1

2

3

4

5

6

7

Jun

-07

Oc

t-0

7F

eb

-08

Jun

-08

Oc

t-0

8F

eb

-09

Jun

-09

Oc

t-0

9F

eb

-10

Jun

-10

Oc

t-10

Fe

b-1

1Ju

n-1

1O

ct-

11F

eb

-12

Jun

-12

Oc

t-12

Fe

b-1

3Ju

n-1

3O

ct-

13F

eb

-14

Jun

-14

Oc

t-14

Fe

b-1

5Ju

n-1

5O

ct-

15F

eb

-16

Jun

-16

Oc

t-16

Fe

b-1

7Ju

n-1

7O

ct-

17F

eb

-18

Jun

-18

Spread L-T Avg.

As of June 30, 2018

Sources: Heitman Research, FTSE EPRA/NAREIT

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

40%

Jun

-08

No

v-0

8

Ap

r-0

9

Se

p-0

9

Fe

b-1

0

Jul-

10

De

c-1

0

Ma

y-1

1

Oc

t-11

Ma

r-12

Au

g-1

2

Jan

-13

Jun

-13

No

v-1

3

Ap

r-14

Se

p-1

4

Fe

b-1

5

Jul-

15

De

c-1

5

Ma

y-1

6

Oc

t-16

Ma

r-17

Au

g-1

7

Jan

-18

Jun

-18

DIVIDEND YIELD SPREAD TO GLOBAL BONDSFTSE EPRA/NAREIT ADEVELOPED INDEX

PREMIUM/(DISCOUNT) TO NAVFTSE EPRA/NAREIT DEVELOPED INDEX

NORTH AMERICA INVESTMENT OUTLOOK

Macro Economy

− The economic recovery should continue and likely receive a boost

from tax law and spending changes

− Canadian growth is strong, but NAFTA risk lingers

− Though, the potential of a US-led global trade war could dampen

sentiment

Capital Markets

− REIT equity and debt markets are open with strong demand from

investors and increasing IPO activity

− There remains strong demand for REIT debt and several companies

have successfully issued 30-year bonds

− Public-to-public M&A activity has increased

Real Estate Markets

− Property fundamentals remain strong for this late in the cycle. Rent

growth remains above trend growth as new supply is reasonable

− REIT transaction activity has slowed in most sectors

-10.47%

-1.64%

-7.54%

0.62% 0.19%

-1.77%

-15%

-10%

-5%

0%

5%

10%

15%

US Canada FTSE EPRA/NAREIT

Developed Index

5-yr average prem/(disc) to NAV


10Market Overview

PREMIUM/DISCOUNT TO NAV BY REGION –FTSE EPRA/NAREIT DEVELOPED INDEX

-2

-1

0

1

2

3

4

5

6

7

8

Jun

-07

Oc

t-0

7F

eb

-08

Jun

-08

Oc

t-0

8F

eb

-09

Jun

-09

Oc

t-0

9F

eb

-10

Jun

-10

Oc

t-10

Fe

b-1

1Ju

n-1

1O

ct-

11F

eb

-12

Jun

-12

Oc

t-12

Fe

b-1

3Ju

n-1

3O

ct-

13F

eb

-14

Jun

-14

Oc

t-14

Fe

b-1

5Ju

n-1

5O

ct-

15F

eb

-16

Jun

-16

Oc

t-16

Fe

b-1

7Ju

n-1

7O

ct-

17F

eb

-18

Jun

-18

Spread L-T Avg.

As of June 30, 2018


FTSE EPRA/NAREIT NORTH AMERICADIVIDEND YIELD SPREAD TO BONDS

-3

-2

-1

0

1

2

3

4

5

Jun

-07

Oc

t-0

7F

eb

-08

Jun

-08

Oc

t-0

8F

eb

-09

Jun

-09

Oc

t-0

9F

eb

-10

Jun

-10

Oc

t-10

Fe

b-1

1Ju

n-1

1O

ct-

11F

eb

-12

Jun

-12

Oc

t-12

Fe

b-1

3Ju

n-1

3O

ct-

13F

eb

-14

Jun

-14

Oc

t-14

Fe

b-1

5Ju

n-1

5O

ct-

15F

eb

-16

Jun

-16

Oc

t-16

Fe

b-1

7Ju

n-1

7O

ct-

17F

eb

-18

Jun

-18

Spread L-T Avg.

-6.40%

-10.47%

-7.54%

2.76%

-2.12% -1.77%

-15%

-10%

-5%

0%

5%

10%

Continental Europe UK FTSE EPRA/NAREIT

Developed Index


EUROPE INVESTMENT OUTLOOK

Macro Economy

− Growth in Continental Europe is expected to continue as the

lagged effects of QE support the economy

− UK consumer data to remain soft as Brexit bites into sentiment and

inflation remains relatively high

Capital Markets

− Policy issues surrounding the EU, such as Brexit, will continue to

cause near-term uncertainty

− Accommodative central bank policies to continue to support

capital markets in the short-term

Real Estate Markets

− There is a shortage of new supply in most asset classes and

countries

− Selected asset classes (residential, offices, logistics) and prime

locations expected to continue to outperform

− Expect consolidation and M&A to continue to be a theme


11Market Overview

PREMIUM/DISCOUNT TO NAV BY REGION –FTSE EPRA/NAREIT DEVELOPED INDEX

As of June 30, 2018


FTSE EPRA/NAREIT EUROPEDIVIDEND YIELD SPREAD TO BONDS

-1.35%

-24.65%

-11.44%-7.54%

1.94%

-22.03%

6.22%

-1.77%

-30%

-20%

-10%

0%

10%

20%

Australia/New

Zealand

Asia Ex-Japan Japan FTSE

EPRA/NAREIT

Developed Index


ASIA-PACIFIC INVESTMENT OUTLOOK

Macro Economy

− Japan, Hong Kong and Singapore are growing above trend as global

growth becomes more synchronized, while domestic conditions in

Australia remain sluggish

− Rising rates in the US are a concern, possibly leading to tighter credit

conditions in most markets

Capital Markets

− Rising US rates and a flattening yield curve implies the potential for

tightening financial conditions

− Sentiment remains cautiously positive

Real Estate Markets

− Office markets appear buoyant throughout the region with rent

growth now evident in all markets while retail conditions remain

challenging, except in Hong Kong

− Apart from pockets of oversupply in some markets, the logistics

sector is benefiting from strong ongoing demand from e-commerce

growth


12Market Overview

PREMIUM/(DISCOUNT) TO NAV BY REGION –FTSE EPRA/NAREIT DEVELOPED INDEX

0

1

2

3

4

5

6

7

Jun

-07

Oc

t-0

7F

eb

-08

Jun

-08

Oc

t-0

8F

eb

-09

Jun

-09

Oc

t-0

9F

eb

-10

Jun

-10

Oc

t-10

Fe

b-1

1Ju

n-1

1O

ct-

11F

eb

-12

Jun

-12

Oc

t-12

Fe

b-1

3Ju

n-1

3O

ct-

13F

eb

-14

Jun

-14

Oc

t-14

Fe

b-1

5Ju

n-1

5O

ct-

15F

eb

-16

Jun

-16

Oc

t-16

Fe

b-1

7Ju

n-1

7O

ct-

17F

eb

-18

Jun

-18

Spread L-T Avg

As of June 30, 2018


FTSE EPRA/NAREIT ASIA-PACIFICDIVIDEND YIELD SPREAD TO BONDS

Portfolio Portfolio FTSE EPRA/NAREIT Spread Spread

(Gross of Fee)1 (Net of Fee)1 Developed Index (Gross of Fee) (Net of Fee)

Month To Date 1.67% 1.62% 1.58% +0.10% +0.04%

Quarter To Date 6.08% 5.91% 5.45% +0.63% +0.46%

Year To Date 1.49% 1.17% 0.91% +0.58% +0.26%

Rolling One Year 7.18% 6.51% 6.70% +0.47% -0.20%

Rolling Three Years 6.79% 6.12% 6.70% +0.08% -0.59%

Since Inception (10/31/13) 6.89% 6.23% 6.21% +0.68% +0.02%

1.67%

6.08%

1.49%

7.18%6.79% 6.89%

1.62%

5.91%

1.17%

6.51%6.12% 6.23%

1.58%

5.45%

0.91%

6.70% 6.70%

6.21%

0%

1%

2%

3%

4%

5%

6%

7%

8%

Month To Date Quarter To Date Year To Date Rolling One Year Rolling Three Years Since Inception

(10/31/13)

Gross of Fees¹

Net of Fees¹

Index²

LA Water and Power Employees’ Retirement Plan Performance

13

1. Returns are calculated and presented in US Dollars. Periods Ending 6/30/18.2. FTSE EPRA/NAREIT Developed IndexPlease read Performance Notes pages for important disclosure information

ENDING MARKET VALUE AS OF JUNE 30, 2018: $24,265,166

Performance Review

Portfolio Portfolio FTSE EPRA/NAREIT Spread Spread

(Gross of Fee)1 (Net of Fee)1 Developed Index (Gross of Fee) (Net of Fee)

Month To Date 1.67% 1.61% 1.58% +0.09% +0.04%

Quarter To Date 6.07% 5.91% 5.45% +0.62% +0.46%

Year To Date 1.49% 1.17% 0.91% +0.58% +0.26%

Rolling One Year 7.20% 6.53% 6.70% +0.49% -0.18%

Rolling Three Years 6.80% 6.14% 6.70% +0.10% -0.57%

Since Inception (10/31/13) 6.90% 6.23% 6.21% +0.69% +0.02%

LA Water and Power Employees’ Retiree Health Benefit Plan Performance

1. Returns are calculated and presented in US Dollars. Periods Ending 6/30/18. 2. FTSE EPRA/NAREIT Developed IndexPlease read Performance Notes pages for important disclosure information

1.67%

6.07%

1.49%

7.20%6.80% 6.90%

1.61%

5.91%

1.17%

6.53%6.14% 6.23%

1.58%

5.45%

0.91%

6.70% 6.70%6.21%

0%

1%

2%

3%

4%

5%

6%

7%

8%

Month To Date Quarter To Date Year To Date Rolling One Year Rolling Three Years Since Inception

(10/31/13)

Gross of Fees¹

Net of Fees¹

Index²

ENDING MARKET VALUE AS OF JUNE 30, 2018: $6,031,540


LA Water and Power Employees’ Retiree Health Benefit Plan

Performance Review

Source: eVestment; HeitmanQuartile performance ranking calculated using the Global Diversified Developed CompositeReturns calculated and presented in USD and Gross of Fees for the Composite. As of 6/30/18

LA Water and Power Employees ’ Retirement Plan LA Water and Power Employees ’ Retiree Health B enefit Plan

1 Year 3 Years 1 Year 3 Years

l LA Water ERP 7.18% 6.79% l LA Water ERHBP 7.20% 6.80%

1st Quart ile 1st Quart ile

2nd Quart ile 2nd Quart ile

3rd Quart ile 3rd Quart ile

4t h Quart ile 4t h Quart ile

High 11.52 11.93 High 11.52 11.9325th Percentile 8.35 7.49 25th Percentile 8.35 7.49Median 7.37 6.52 Median 7.37 6.5275th Percentile 6.08 5.40 75th Percentile 6.08 5.40Low 2.38 3.81 Low 2.38 3.81Observations 53 53 Observations 53 53

COMPETITIVE PERFORMANCE IN USD COMPETITIVE PERFORMANCE IN USD

LA WATER AND POWER EMPLOYEES’ RETIREMENT PLAN

LA WATER AND POWER EMPLOYEES’ RETIREE HEALTH BENEFIT PLAN

21

LA Water and Power Employees’ Retiree Health Benefit Plan


LA WATER AND POWER EMPLOYEES’ RETIREMENT PLAN

LA WATER AND POWER EMPLOYEES’ RETIREE HEALTH BENEFIT PLAN

Source: eVestment; HeitmanQuartile performance ranking calculated using the Global Diversified Developed CompositeReturns calculated and presented in USD and Gross of Fees for the Composite. As of 6/30/18

2017 2016 2015 2014 2017 2016 2015 2014

l LA Water ERP 10.98 4.33 1.10 18.15 l LA Water 11.00 4.33 1.13 18.13

1st Quart ile 1st Quart ile

2nd Quart ile 2nd Quart ile

3rd Quart ile 3rd Quart ile

4t h Quart ile 4t h Quart ile

High 23.43 14.33 6.13 25.04 High 23.43 14.33 6.13 25.0425th Percentile 15.11 4.96 2.58 18.33 25th Percentile 15.11 4.96 2.58 18.33Median 12.77 4.00 1.28 16.60 Median 12.77 4.00 1.28 16.6075th Percentile 11.57 1.73 -0.11 14.87 75th Percentile 11.57 1.73 -0.11 14.87Low 7.49 -1.41 -21.97 11.28 Low 7.49 -1.41 -21.97 11.28Observations 57 58 58 54 Observations 57 58 58 54

COMPETITIVE PERFORMANCE IN USDCOMPETITIVE PERFORMANCE IN USD

Heitman Global Real Estate Securities StrategyRisk-Adjusted Performance

17Performance Review

HEITMAN GLOBAL REAL ESTATE SECURITIES STRATEGY

The Risk Adjusted Performance is shown above as supplemental information to the Heitman Global Real Estate Securities Strategy Composite.

1. Returns are calculated and presented in US Dollars and Gross of Fees. Periods Ending 6/30/18.

2. FTSE EPRA/NAREIT Developed Index3. Linked monthly excess returns over risk-free T-bills.

4. For the periods when the excess returns over risk-free T-bills are negative, the Sharpe ratio has been adjusted to the Modified Sharpe Ratio.

Please read Performance Notes pages for important disclosure information.

Portfolio¹ Index2 Portfolio¹ Index2 Portfolio¹ Index2

Annualized return 6.60% 6.70% 7.47% 6.89% 8.46% 7.59%

Excess return over 90-day T-bills 3 5.89% 5.99% 7.03% 6.45% 8.14% 7.28%

Annualized standard deviation 11.12% 11.24% 10.87% 11.06% 13.40% 13.44%

Sharpe Ratio4 0.53 0.53 0.65 0.58 0.61 0.54

Excess return over benchmark

Tracking error vs. benchmark

Information Ratio

Alpha

Beta

R2

Upside Market Capture

Downside Market Capture

3 Years 5 Years

-0.10%

0.88%

-0.12

-0.01

0.99

0.99

0.99

1.00

0.58%

1.02

0.98

Since Inception (12/31/10)

0.86%

0.93%

0.93

0.84

0.99

1.00

1.02

0.98

0.93%

0.63

0.67

0.98

0.99

Retail

18.0%

Office

19.9%

Residential

18.2%

Diversified

12.5% Industrial

9.3% Health Care 7.0%

Self-Storage 3.7%

Hotel/Resort & Entertainment 5.2%

Specialty 4.4%

Data Centers 1.7%

SECTOR WEIGHTINGS

Heitman Global Real Estate Securities Strategy


PORTFOLIO CHARACTERISTICS

Heitman Index¹

Number of Securities 104 338

Top 10 Holdings 25.12% 19.65%

Active Share

Beta 1.00 1.00

Dividend Yield 3.53% 3.97%

NAV Prem/(Disc) -8.63% -7.54%

Earnings Growth 5.67% 4.73%

LTV 31.31% 31.78%

52.96%

As of June 30, 2018.

The Portfolio Characteristics shown above are supplemental information to the Heitman Global Real Estate Securities Strategy Composite.

The composite benchmark changed from the FTSE EPRA/NAREIT Developed Rental Index to the FTSE EPRA/NAREIT Developed Index effe ctive June 1, 2012.

1. FTSE EPRA/NAREIT Developed Index and the respective regional sleeves.

Japan, 10.80%

Hong Kong, 7.99%

Australia, 5.06%

Singapore, 2.38% US, 52.98%

Canada, 2.75%

Europe, 13.08%

UK, 4.97%

Asia-Pacific

26%

North America

56%

Europe

18%

0%

10%

20%

30%

40%

50%

60%

70%

Asia-Pacific North America Europe

COUNTRY WEIGHTINGS

OVERWEIGHTS/UNDERWEIGHTS

Security Sector Heitman Active Weight

AvalonBay Communities Residential 3.57% +1.97

Sunstone Hotel Investors Hotel/R&E 1.91% +1.66

Cyrusone Data Centers 1.59% +1.59

Welltower Health Care 3.10% +1.53

Liberty Property Trust Industrial 1.83% +1.38

Realty Income Specialty 0.00% -1.03

Essex Property Trust Residential 0.00% -1.06

Ventas Health Care 0.00% -1.37

Equity Residential Residential 0.00% -1.55

Public Storage Storage 0.58% -1.69

To

p 5

Bo

tto

m 5

Heitman Global Real Estate Securities StrategyPerformance Attribution - USD


Positive performance from Hong Kong, Japan, and the US

− An overweight in Wharf Real Estate Investment, which spun out of Wharf Holdings, was a positive performer

− In Japan, positive stock selection among office landlords added to performance

− In the US, industrial was the top performer as we owned DCT Industrial Trust when it was acquired by Prologis

Singapore and Europe detracted modestly from performance

− In Singapore, our holdings in residential developers detracted from performance

− In the UK, negative stock selection related to rumored and potential M&A deals in the retail space detracted

− In Europe, some holdings in the periphery underperformed as investors favored more defensive sectors

Heitman Global

North America 54.47 5.04 5.11 3.01 54.83 4.34 4.42 2.64 0.00 0.58 -0.20 0.38 0.02 0.40

Asia-Pacific 27.08 8.74 8.90 2.15 27.24 7.97 8.14 1.96 -0.03 0.28 -0.06 0.19 0.00 0.19

Middle East 0.00 - - 0.00 0.11 -8.62 -4.15 -0.01 0.01 0.00 0.00 0.01 0.01 0.02

Cash 0.75 142.68 177.66 0.01 0.00 - - 0.00 0.01 0.00 0.00 0.01 -0.03 -0.03

Europe 17.70 11.64 10.44 1.95 17.82 12.47 11.27 2.09 0.01 -0.66 0.50 -0.15 0.02 -0.13

Total 100.00 7.12 7.09 7.12 100.00 6.67 6.66 6.67 0.00 0.21 0.23 0.43 0.01 0.45

Portfolio¹ FTSE EPRA/NAREIT Developed Attribution Analysis

Total

Return

Total

Currency

Effect

Total

Effect

Total

Return

(Local)

Contribution

To Return

Allocation

Effect

(Local)

Selection

Effect

(Local)

Interaction

Effect

(Local)

Total

Effect

(Local)

Average

WeightRegion & Country Grouping

Average

Weight

Total

Return

Total

Return

(Local)

Contribution

To Return

Returns are presented in US Dollars. 12 Months Ending 6/30/18.

Representative Heitman Global Real Estate Securities Strategy.

Please read Performance Notes pages for important disclosure information.Please read Attribution Analysis Performance Notes page for important disclosure information.

Top Ten Contributors/Detractors


Portfolio data for Los Angeles Water and Power Employees’ Retirement PlanOne year ended 6/30/18

Top Ten Contributors

Ventas 0.35

Wharf Real Estate Investment 0.26

Extra Space Storage 0.22

DCT Industrial Trust 0.21

Lifestyle Intl. 0.15

VICI Properties 0.13

American Campus Communities 0.13

Education Realty Trust 0.12

Hudson Pacific Properties 0.12

Highwoods Properties 0.11

Bottom Ten Detractors

American Homes 4 Rent -0.14

CareTrust REIT -0.14

Kilroy Realty -0.14

City Developments -0.15

Public Storage -0.15

HCP -0.18

AvalonBay Communities -0.19

New York REIT -0.19

GGP -0.22

Physicians Realty Trust -0.30

Top Ten Holdings

21Portfolio Review & Characteristics

Portfolio data for Los Angeles Water and Power Employees’ Retirement Plan6/30/18

Security Region Sector

Portfolio

Weight

Benchmark

Weight

Excess

Weight

Simon Property Group North America Retail 3.74% 3.55% +0.19

AvalonBay Communities North America Residential 3.51% 1.60% +1.90

Welltower North America Health Care 3.05% 1.58% +1.47

Vonovia Europe Residential 2.26% 1.65% +0.61

CK Asset Holding Asia Diversified 2.16% 1.45% +0.72

Boston Properties North America Office 2.11% 1.31% +0.80

Unibail-Rodamco-Westfield Europe Retail 1.94% 2.00% -0.07

Mitsubishi Estate Asia Diversified 1.93% 1.40% +0.53

Sunstone Hotel Investors North America Hotel/R&E 1.91% 0.25% +1.66

DCT Industrial Trust North America Industrial 1.90% 0.43% +1.47

Complete List of Holdings

22Portfolio Review & Characteristics 22

Portfolio data for Los Angeles Water and Power Employees’ Retirement Plan6/30/18

Portfolio Benchmark Weight Market Portfolio Benchmark Weight Market

Security Region Sector Weight Weight Excess Value Security Region Sector Weight Weight Excess Value

Goodman Group Asia-Pacific Industrial 1.24 0.85 0.39 301,822.88 Derwent London Europe Office 0.86 0.28 0.58 209,381.65Ingenia Communities Group Asia-Pacific Residential 0.35 0.00 0.35 84,959.40 Primary Health Properties Europe Health Care 0.51 0.07 0.44 124,515.35Scentre Group Asia-Pacific Retail 1.40 1.12 0.28 340,144.68 Grainger Europe Residential 0.50 0.11 0.39 121,649.57Investa Office Fund Asia-Pacific Office 0.41 0.14 0.27 99,591.63 British Land Co Europe Office 0.98 0.59 0.39 236,644.52GPT Group Asia-Pacific Diversified 0.72 0.46 0.26 174,206.62 Segro Europe Industrial 0.85 0.60 0.25 206,388.14Mirvac Group Asia-Pacific Diversified 0.53 0.40 0.13 128,368.55 Shaftesbury Europe Retail 0.43 0.19 0.24 104,254.32Vicinity Centres Asia-Pacific Retail 0.27 0.42 -0.15 65,459.24 Tritax Big Box REIT Europe Industrial 0.37 0.21 0.17 90,290.16CK Asset Holding Asia-Pacific Diversified 2.16 1.45 0.72 524,751.11 Hammerson Europe Retail 0.36 0.37 -0.01 87,059.52Lifestyle Intl. Asia-Pacific Retail 0.53 0.00 0.53 127,684.79 First Capital Realty North America Retail 0.77 0.16 0.62 187,839.60Wheelock & Co Asia-Pacific Retail 0.52 0.00 0.52 126,178.88 Allied Properties Real Estate North America Office 0.78 0.20 0.58 189,262.72Swire Properties Asia-Pacific Diversified 0.70 0.26 0.44 170,681.73 Canadian Apartment Properties North America Residential 0.79 0.30 0.49 191,720.76Sino Land Co Asia-Pacific Diversified 0.60 0.34 0.26 146,613.67 InterRent Real Estate Investment North America Residential 0.40 0.00 0.40 95,863.77Hang Lung Properties Asia-Pacific Diversified 0.52 0.28 0.24 126,448.37 AvalonBay Communities North America Residential 3.51 1.60 1.90 850,855.50Wharf Real Estate Investment Asia-Pacific Diversified 0.58 0.59 0.00 141,051.42 Sunstone Hotel Investors North America Hotel/R&E 1.91 0.25 1.66 464,080.26Link REIT/The Asia-Pacific Retail 1.08 1.33 -0.25 262,509.81 Cyrusone North America Office 1.57 0.00 1.57 382,024.56Sun Hung Kai Properties Asia-Pacific Diversified 1.09 1.45 -0.37 263,619.19 Welltower North America Health Care 3.05 1.58 1.47 740,619.66Kenedix Office Investment Asia-Pacific Residential 0.84 0.15 0.69 204,974.50 DCT Industrial Trust North America Industrial 1.90 0.43 1.47 460,036.62Japan Rental Housing Investment Asia-Pacific Residential 0.69 0.08 0.60 166,511.98 Liberty Property Trust North America Industrial 1.79 0.44 1.35 433,547.40Hulic REIT Asia-Pacific Office 0.65 0.10 0.55 158,021.04 Apartment Investment & Mngt North America Residential 1.73 0.45 1.29 420,885.00Mitsubishi Estate Co Asia-Pacific Diversified 1.93 1.40 0.53 468,314.54 Federal Realty Investment Trust North America Retail 1.86 0.62 1.24 452,289.70Daiwahouse Residential Investment Asia-Pacific Residential 0.80 0.28 0.52 194,626.46 Physicians Realty Trust North America Health Care 1.44 0.20 1.24 348,544.04Nippon Building Fund Asia-Pacific Office 0.97 0.49 0.48 236,527.78 Equinix North America Data Centers 1.17 0.00 1.17 283,727.40Japan Hotel REIT Asia-Pacific Hotel/R&E 0.64 0.20 0.43 154,362.84 Hudson Pacific Properties North America Office 1.49 0.37 1.13 362,626.05Orix JREIT Asia-Pacific Office 0.68 0.28 0.40 166,095.79 Four Corners Property Trust North America Specialty 1.21 0.10 1.11 293,885.16Aeon REIT Investment Asia-Pacific Retail 0.51 0.12 0.40 124,512.26 Agree Realty North America Specialty 1.19 0.11 1.08 288,599.13Sumitomo Realty & Development Asia-Pacific Diversified 1.35 1.08 0.27 327,038.78 Invitation Homes North America Residential 1.47 0.47 1.00 356,184.76Mitsui Fudosan Co Asia-Pacific Diversified 1.43 1.54 -0.12 346,015.82 American Campus Communities North America Residential 1.29 0.39 0.89 312,337.92UOL Group Asia-Pacific Hotel/R&E 0.66 0.19 0.47 159,206.86 Empire State Realty Trust-A North America Office 1.03 0.16 0.87 249,762.60Mapletree Logistics Trust Asia-Pacific Industrial 0.50 0.13 0.37 121,128.16 Brandywine Realty Trust North America Office 1.06 0.20 0.86 257,757.60CapitaCommercial Trust Asia-Pacific Office 0.57 0.19 0.37 137,462.85 Boston Properties North America Office 2.11 1.31 0.80 512,842.38City Developments Asia-Pacific Diversified 0.61 0.25 0.35 147,585.06 Sabra Health Care REIT North America Health Care 1.02 0.26 0.76 247,070.10CapitaMall Trust Asia-Pacific Retail 0.00 0.24 -0.24 156.37 Washington REIT North America Office 0.91 0.16 0.75 220,802.40Warehouses De Pauw Europe Industrial 0.50 0.14 0.36 122,132.79 Extra Space Storage North America Storage 1.51 0.82 0.68 365,304.60Aedifica Europe Health Care 0.45 0.11 0.34 110,152.32 CubeSmart North America Storage 1.06 0.40 0.66 257,115.60ICADE Europe Office 0.58 0.20 0.39 141,944.02 Retail Properties of America North America Retail 0.84 0.19 0.65 204,237.18Carmila Europe Retail 0.40 0.06 0.34 95,957.59 Camden Property Trust North America Residential 1.20 0.55 0.65 290,157.92Gecina Europe Office 0.81 0.59 0.22 196,254.61 DDR North America Retail 0.73 0.15 0.57 176,207.60Unibail-Rodamco-Westfield Europe Retail 1.94 2.00 -0.07 469,782.28 Highwoods Properties North America Office 0.90 0.35 0.55 218,798.49Adler Real Estate Europe Residential 0.71 0.03 0.67 171,405.75 Store Capital North America Specialty 0.88 0.33 0.55 212,350.00Vonovia Europe Residential 2.26 1.65 0.61 548,467.36 Host Hotels & Resorts North America Hotel/R&E 1.55 1.04 0.51 377,089.79Aroundtown Europe Office 0.47 0.35 0.13 114,860.63 GGP North America Retail 1.31 0.86 0.45 318,340.26Deutsche Wohnen AG Europe Residential 0.69 1.16 -0.47 167,292.94 CareTrust REIT North America Health Care 0.46 0.08 0.38 112,373.77Irish Residential Properties Europe Residential 0.46 0.04 0.42 111,738.09 Summit Hotel Properties North America Hotel/R&E 0.38 0.10 0.28 93,129.48Cairn Homes Europe Residential 0.32 0.00 0.32 77,190.71 VICI Properties North America Specialty 0.65 0.38 0.27 157,235.52Lar Espana Real Estate Europe Retail 0.48 0.07 0.41 116,562.50 Simon Property Group North America Retail 3.74 3.55 0.19 906,942.51Inmobiliaria Colonial SA Europe Office 0.59 0.21 0.37 142,246.74 Macerich Co/The North America Retail 0.50 0.52 -0.03 120,479.60Merlin Properties Socimi Europe Office 0.53 0.33 0.20 129,349.68 National Retail Properties North America Specialty 0.43 0.45 -0.03 103,657.68Samhallsbyggnadsbolaget Europe Office 0.35 0.00 0.35 84,300.68 Education Realty Trust North America Residential 0.03 0.21 -0.19 6,100.50Catena Europe Industrial 0.35 0.02 0.33 86,110.40 ProLogis Inc North America Industrial 1.86 2.35 -0.50 450,502.02Wihlborgs Fastigheter AB Europe Office 0.35 0.10 0.25 85,764.24 Digital Realty Trust North America Data Centers 0.56 1.55 -0.99 135,011.80Hemfosa Fastigheter Europe Office 0.32 0.12 0.20 77,528.10 Public Storage North America Storage 1.09 2.28 -1.18 265,426.20Fabege AB Europe Office 0.19 0.21 -0.02 47,299.12

Change in Market Value Since Inception


Portfolio data for Los Angeles Water and Power Employees’ Retirement Plan and Retiree Health Benefit Plan combinedAs of 6/30/18

$13.68

$16.48

$20.24

$21.50

$25.68

$26.71

$25.01 $24.72

$25.90

$27.22$28.03 $28.35

$26.96$27.49

$28.31$28.77

$29.88

$28.58

$30.30

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

12/31/2013 6/30/2014 12/31/2014 6/30/2015 12/31/2015 6/30/2016 12/31/2016 6/30/2017 12/31/2017 6/30/2018

Market Value ($ in milllions)

Heitman Global Real Estate Securities StrategyNorth America – Attribution Review – 1 Year


Unite d State s 4.01% 94.71% 0 b p s 61 b p s 61 b p s

Data Centers -0.02% 3.15% -6 bps 48 bps 42 bps

Industrial 13.43% 9.58% 3 bps 38 bps 41 bps

Strip Centers 3.24% 6.53% 0 bps 34 bps 33 bps

Triple Net 5.72% 8.11% -4 bps 21 bps 16 bps

Office 1.62% 14.19% 0 bps 12 bps 12 bps

Residential 0.40% 16.87% 2 bps 8 bps 10 bps

Self-Storage 21.44% 6.40% 1 bps 9 bps 9 bps

Diversified 1.70% 0.91% 3 bps 0 bps 3 bps

Hotels/Resort & Entertainment 17.37% 6.67% 6 bps -16 bps -10 bps

Health Care -8.93% 12.07% 0 bps -43 bps -43 bps

Regional Malls 4.69% 10.23% -3 bps -50 bps -53 bps

Canada 10.22% 5 .29% 3 b p s 6 b p s 9 b p s

Diversified 7.68% 1.55% 7 bps 0 bps 7 bps

Residential 22.36% 0.88% 5 bps 0 bps 5 bps

Health Care 2.08% 0.33% 4 bps 0 bps 4 bps

Office 13.60% 0.53% 4 bps -1 bps 3 bps

Retail 4.30% 1.58% -8 bps 8 bps 0 bps

Industrial 16.14% 0.43% -11 bps 1 bps -10 bps

Cas h & Cas h Equivale nts - - -1 b p s 0 b p s -1 b p s

Total 4.34% 100.00% 2 b p s 67 b p s 69 b p s

Selection +

Interaction EffectTotal Effect

Returns Average Weighting Portfolio Effect

Allocation

Contribution3 Property Type¹ Index²

RelativeIndex²

Relative

-0.74%

1.86%

0.14%

0.59%

-1.10%

0.04%

-0.10%

0.00%

-0.88%

0.07%

-0.64%

-0.71%

0.08%

-1.55%

-0.15%

-0.33%

0.84%

1.12%

0.14%

0.66%

-2% 0% 2% 4%

0 .64%

9.98%

4.36%

4.84%

2.47%

0.87%

0.49%

1.5 1%

-6.12%

-2.19%

-2.80%

-5 .05 %

1 .40%

0.00%

-9.86%

0.00%

-4.09%

1.70%

-13.90%

0 .00%

0 .69%

-20% -10% 0% 10% 20%

The Country Returns shown above are supplemental information to the Heitman Global Real

Estate Securities Strategy Composite.1. Representative Heitman Global Real Estate Securities North America Strategy.

2. FTSE EPRA/NAREIT Developed North America Index.

3. Allocation Contribution includes currency effect.

Returns are presented in US Dollars. 12 Months Ending 6/30/18.Please read Performance Notes pages for important disclosure information.Please read Attribution Analysis Performance Notes page for important disclosure information.

Heitman Global Real Estate Securities StrategyAsia-Pacific – Attribution Review – 1 Year


The Country Returns shown above are supplemental information to the Heitman Global

Real Estate Securities Strategy Composite.1. Representative Heitman Global Real Estate Securities Asia-Pacific Strategy.2. FTSE EPRA/NAREIT Developed Asia Index.


Returns are presented in US Dollars. 12 Months Ending 6/30/18.Please read Performance Notes pages for important disclosure information.Please read Attribution Analysis Performance Notes page for important disclosure information.

Relative Relative

Hong Kong 10.49% 30.66% 2 b p s 65 b p s 66 b p s

Investors & REITs 15.14% 13.78% 9 bps 90 bps 99 bps

Developers 6.65% 16.88% 1 bps -37 bps -36 bps

Jap an 6.81% 38.66% 7 b p s 5 1 b p s 5 9 b p s

Investors & REITs 8.42% 21.13% 7 bps 66 bps 73 bps

Developers 4.83% 17.53% 5 bps -22 bps -17 bps

Aus tral ia 8 .5 3% 20.80% -3 b p s 13 b p s 11 b p s

Investors & REITs 8.53% 20.80% -4 bps 13 bps 9 bps

Ne w Ze aland -6.5 7% 0.35 % 6 b p s 0 b p s 6 b p s

Investors & REITs -6.57% 0.35% 3 bps 0 bps 3 bps

Cas h & Cas h Equivale nts - - 2 b p s 0 b p s 2 b p s

Cash & Cash Equivalents - - -3 bps 0 bps -3 bps

France - - 1 b p s 0 b p s 1 b p s

Defensive - - -1 bps 0 bps -1 bps

Singap ore 3.84% 9.5 3% -1 b p s -64 b p s -65 b p s

Developers - - -5 bps 0 bps -5 bps

Investors & REITs 6.89% -5 bps -5 bps -10 bps

Property Cos & Dev -1.13% -12 bps -37 bps -49 bps

Total 7 .97% 100.00% 15 b p s 66 b p s 80 b p s

Index² Index²Allocation

Contribution3

Selection +



Property Type¹

2 .44%

7.64%

-2.06%

1 .25%

3.11%

-1 .28%

1 .13%

1.13%

0 .00%

0.00%

0 .00%

0.00%

0 .00%

0.00%

-6 .61%

0.00%

-0.93%

-8.5 8%

0 .80%

-10% 0% 10%

-0 .66%

-0.14%

-0.5 2%

0 .5 8%

0.25 %

0.33%

0 .05%

0.05 %

-0 .35%

-0.35 %

0 .91%

0.91%

0 .06%

0.06%

-0 .60%

0.36%

-1.44%

0.48%

-2% -1% 0% 1% 2%

Heitman Global Real Estate Securities StrategyEurope – Attribution Review – 1 Year


The Country Returns shown above are supplemental information to the Heitman Global Real

Estate Securities Strategy Composite.1. Representative Heitman Global Real Estate Securities Europe Strategy.

2. FTSE EPRA/NAREIT Developed Europe Index.


Returns are presented in US Dollars. 12 Months Ending 6/30/18.Please read Performance Notes pages for important disclosure information.

Please read Attribution Analysis Performance Notes page for important disclosure information.

Cas h & Cas h Equivale nts - - -11 b p s 0 b p s -11 b p s

Cash & Cash Equivalent - - -10 bps 0 bps -10 bps

Europ e 13.00% 71.41% -4 b p s -22 b p s -26 b p s

Cyclical 15 .66% 19.82% 14 b p s 11 b p s 24 b p s

Retail -0.22% 2.66% 51 bps 3 bps 55 bps

Industrial 0.45% 0.34% -2 bps 3 bps 1 bps

Office 20.33% 12.72% -4 bps 2 bps -2 bps

Hotel/Resort & Entertainment 16.55% 1.15% -4 bps -22 bps -26 bps

Residential 13.34% 2.95% 3 bps -31 bps -28 bps

De fe ns ive 11 .99% 5 1.5 9% 19 b p s -67 b p s -48 b p s

Office 10.31% 13.05% -4 bps 31 bps 27 bps

Industrial 26.03% 0.75% 10 bps -2 bps 8 bps

Health Care 7.74% 1.69% -8 bps -4 bps -12 bps


Retail -3.16% 14.92% -9 bps -34 bps -43 bps

Unite d Kingdom 11.23% 28.5 9% 1 b p s -5 5 b p s -5 4 b p s

De fe ns ive 13.01% 12.5 2% 12 b p s -25 b p s -13 b p s

Retail -4.10% 2.33% 9 bps 11 bps 19 bps

Health Care 0.75% 1.35% -14 bps 24 bps 10 bps

Office 20.14% 3.60% -8 bps 13 bps 5 bps


Industrial 14.48% 1.84% -4 bps -13 bps -17 bps

Storage 30.87% 1.15% -26 bps 0 bps -26 bps

Cyclical 9.91% 16.07% 2 b p s -41 b p s -39 b p s

Industrial 40.40% 3.40% 26 bps -5 bps 21 bps

Office 9.93% 8.18% -1 bps -8 bps -10 bps

Retail -8.20% 4.49% 1 bps -55 bps -54 bps

Total 12.49% 100.00% -14 b p s -76 b p s -90 b p s


Property Type¹ Index²

Relative

Index²

RelativeAllocation

Contribution3

Selection +


0 .00%

0.00%

-0 .38%

0 .15%

2.94%

17.83%

-0.06%

-13.88%

-7.5 3%

-1 .14%

4.5 4%

-11.18%

-2.44%

-1.79%

-2.21%

-1 .78%

-1 .61%

1.46%

7.99%

3.76%

-5 .77%

-2.5 5 %

0.00%

-2 .31%

-2.35 %

-1.12%

-12.16%

-0 .90%

-20% 0% 20%

0 .79%

0.79%

-0 .74%

4.79%

-1.68%

1.02%

4.11%

-0.35 %

1.68%

-5 .53%

-4.5 2%

0.77%

1.73%

-1.35 %

-2.15 %

-0 .05%

3 .91%

0.84%

1.75 %

0.35 %

0.90%

1.24%

-1.15 %

-3 .96%

0.27%

-1.76%

-2.48%

-10% -5% 0% 5% 10%

Heitman Key Differentiators

True bottom-up approach with local and integrated teams

An investment process that goes beyond valuation

Disciplined oversight, dedicated risk management

Employee ownership drives actions and aligns our interest with yours

27Conclusion

PAGE INTENTIONALLY BLANK

WPERP Fee Schedule

29Appendix: Fee Schedule

62.5 bps per annum on the average of the month end market values,

as computed by the custodian


Common REIT Terms

− Cash Available for Distribution (CAD): CAD is calculated by subtracting from Funds from Operations (FFO) both (1)

normalized recurring expenditures that are capitalized by the REIT and then amortized, but which are necessary to

maintain a REIT's properties and its revenue stream (e.g., new carpeting and drapes in apartment units, leasing expenses

and tenant improvement allowances) and (2) "straight-lining" of rents.

− Capitalization Rate: The capitalization rate (or "cap" rate) for a property is determined by dividing the property's net

operating income by its purchase price. Generally, high cap rates indicate higher returns and greater perceived risk.

− Funds From Operations (FFO): The most commonly accepted and reported measure of REIT operating performance.

Equal to a REIT's net income, excluding gains or losses from sales of property, and adding back real estate depreciation.

− Mortgage REIT: A REIT that makes or owns loans and other obligations that are secured by real estate collateral.

− Multiple to Growth: This is a common valuation measure that is calculated by dividing a REIT’s following year Price/FFO

multiple by its FFO growth rate plus dividend yield and then dividing by 100.

− Net Asset Value (NAV): The net "market value" of all a company's assets, including but not limited to its properties, after

subtracting all its liabilities and obligations.

− Straight-lining: Real estate companies such as REITs "straight line" rents because generally accepted accounting

principles require it. Straight lining averages the tenant's rent payments over the life of the lease.

− Payout Ratio: This is a measure of the security of a company’s dividend and is calculated by dividing a REITs CAD by its

dividend.

31Appendix: Glossary of Investment Terms


Presenters

Mike Moran, CFA is a Senior Vice President, Global Investment Strategy in Heitman's Public Real Estate Securities group. He serves on the group's Global Investment Committee. Mike's primary responsibilities include integrating company, sector, country, regional, and global data to support Heitman's team of analysts and portfolio managers in their stock selection. He is also responsible for identifying and implementing best practices across the global team, including the development and enhancement of Heitman's investment process. In addition, Mike works with the firm's Client Service & Marketing group to understand the needs, situations and objectives of Heitman's clients. Prior to his current role, he was an Assistant Portfolio Manager in Heitman's North American Public Real Estate Securities group where he was responsible for fundamental company and market analysis supporting his stock recommendations. Prior to joining Heitman, Mike was with RHS Companies as a development associate, responsible for developing financial models and performing investment analysis, feasibility analysis and due diligence for potential development projects. He was also a project manager for a large mixed use land development project and a condo-hotel project. Mike received a BBA and an MBA from the University of Wisconsin-Madison and is a CFA Charterholder.

John Mancuso is a Senior Vice President in Heitman’s Client Service & Marketing group. He is responsible for developing and maintaining relationships with institutional investors in the western region of the US in private real estate equity, public securities, and private real estate debt. Prior to joining Heitman, John was the head of private markets research at Russell Investments. He was responsible for overseeing Russell’s private markets investment research practice on a global basis by setting research priorities, identifying strategies for inclusion in client portfolios, and managing the due diligence process. Previously, John was with Meketa Investment Group, where he was responsible for supporting several client relationships and coordinating the research and due diligence process for real estate investments. John began his career at Lucent Technologies, working in several accounting and finance roles across the business. John received a BS in Finance from Boston College and an MS in Management from the F.W. Olin School of Business at Babson College. He is a member of the Pension Real Estate Association, CFA Institute and the CFA Society of Colorado.

33Appendix: Biographies


Heitman Global Real Estate Securities Strategy

35Appendix: Performance Notes & Disclaimer

1. Heitman Real Estate Securities LLC (“HRES”) is an investment adviser specializing in the investment of equity, convertible and debt instruments of North American publicly traded real estate related companies (REITs – real estate investment trusts and REOCs –real estate operating companies). Heitman International Real Estate Securities GmbH (“HIRES”) is an investment adviser specializing in the investment of equity, convertible and debt instruments of European pub licly traded real estate related companies. Heitman International Real Estate Securities HK Limited (“HIRES HK”) is an investment adviser specializing in the investment of equity, convertible and debt instruments of Asia / Pacific publicly traded real estate related companies Heitman International Real Estate Securities Pty Limited (“HIRES PTY”) is an investment adviser specializing in the investment of equity, convertible and debt instruments of Asia / Pacific publicly traded real estate related companies. HRES, HIRES and HIRES PTY HIRES HK (collectively, “Company”) are limited liability companies whose sole member is Heitman LLC. The members of Heitman are KE I LLC and KE 2 LLC, both members are comprised of a group of key Heitman employees.

2. This composite includes all discretionary, global strategy clients benchmarked to the FTSE EPRA/NAREIT Developed Index.

3. The Company claims compliance with Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with GIPS standards. The Company has been independently verified for the periods of January 1, 1993 through December 31, 2016. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The verification does not ensure the accuracy of any composite presentation.

4. Trade date settlement valuation is used and dividends are recorded on “ex-date” for this composite. This composite is denominated in US dollars.

5. The FTSE EPRA/NAREIT Developed Index is a market cap weighted index of publicly traded REITs and REOCS from around the world. The Indices are presented for illustrative purposes only and are not intended to imply Heitman’s past or future performance. The performance of the Indices assumes dividend reinvestment, but do not reflect transaction costs, advisory fees, custodian fees, trading costs and other costs of investment. Individuals cannot directly invest in the indices described above.

6. The dispersion of annual returns is measured using a simple annual standard deviation of accounts in the composite for the entire year. For the purpose of this presentation, a significant population count is defined as more than 5 accounts in the composite. Periods with five or fewer accounts are marked “N/A”.

7. Accounts are included in this composite the first full month under management. Terminated accounts are included in this composite through completion of their last full month under management. This composite was created in September 2017.

8. Representative fee schedule is as follows: first $75 million – 0.65%; over $75 million to $200 million – 0.60%; over $200 million to $500 million – 0.55%; over $500 million – 0.50%. Advisory fees are described in Part II of Form ADV (copy available upon request).

9. Performance results presented gross and net of management fees. Gross of fees performance is presented before management fees, but after all relevant trading expenses and all applicable non reclaimable withholding taxes. Net of Fees performance is presented after management fees and any performance fees, all relevant trading expenses and other expenses that may be incurred in the management of an account and all applicable non reclaimable withholding taxes. Composite descriptions, policies for calculating performance, preparing compliant presentations, and valuing portfolios are available upon request. Past performance is no guarantee of future results. Advisory fees are described in Part II of Form ADV (available upon request).

Three Year

Annualized ex-post

Three Year Standard Deviation

Total Return Total Return FTSE EPRA/NAREIT Total Composite Total Firm Percentage Annualized ex-post FTSE EPRA/NAREIT

Net of Fees Gross of Fees Developed Index Number of Standard at End of Period at End of Period of Firm Standard Deviation Developed

Year (percent) (percent) (percent) Portfolios Deviation ($millions) ($millions) Assets Composite Index

2011 -2.88 -2.65 -5.82 less than 5 N/A 123 2,398 5.12 N/A N/A

2012 28.03 28.35 28.65 less than 5 N/A 218 2,440 8.94 N/A N/A

2013 4.63 4.93 4.39 less than 5 N/A 200 2,176 9.18 16.53 16.43

2014 18.07 18.49 15.89 5 N/A 411 3,217 12.76 12.4 12.48

2015 1.25 1.58 0.05 7 0.25 776 3,371 23.03 12.31 12.27

2016 3.55 3.89 4.99 6 0.21 636 3,371 18.88 11.97 12.22

Attribution Analysis

1. The results are gross of fees and calculated based on transactions. The results may vary slightly from the actual returns due to rounding, intra-day trading and fees.

2. Please note that the portfolio’s performance as represented in this file is preliminary and may vary from the official result.

3. Attribution analysis are performed on a representative account in a strategy and not on the entire constituents of a strategy’s composite. Therefore, there may be a disparity between the returns calculated through the attribution analysis for a representative account and a composite.

36Appendix: Performance Notes & Disclaimer

IMPORTANT NOTICE AND DISCLAIMER

− This confidential presentation and the information set out herein (the “Presentation”) is summary in nature only and is qualified in its entirety by the information set out in the confidential private placement memorandum or other formal disclosure document (the “Disclosure Document”) relating to the potential opportunity described herein (the “Opportunity”).

− This Presentation has been provided to the recipient by Heitman or an affiliate as sponsor (the “Sponsor”) and is only intended to assist sophisticated professional investors in deciding whether they wish to consider reviewing the Disclosure Document. This Presentation is meant for use in one-on-one presentations with sophisticated professional investors. However, the contents of this Presentation are not to be construed as investment, legal or tax advice and do not consider the particular circumstances specific to any individual recipient to whom this Presentation has been delivered. The recipient should obtain advice from the appropriate qualified experts. Further, the Sponsor is not acting in the capacity of a fiduciary of any recipient of this Presentation.

− This Presentation is furnished on a strictly confidential basis to sophisticated professional investors. None of the information contained herein may be reproduced or passed to any person or used for any purpose other than for the purpose of considering the Opportunity. No approach of any kind may be made by any officer, employee or adviser of the recipient of this Presentation to any officer, employee, customer or supplier of the Sponsor without the prior written approval of the Sponsor. Notwithstanding the foregoing, recipients (and each employee, agent or representative of any recipient) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of an investment described herein and all materials of any kind (including opinions or other tax analyses) that are provided that relate to such tax treatment or tax structure, except to the extent maintaining such confidentiality is necessary to comply with any applicable securities laws. The foregoing language is not intended to waive any confidentiality obligations otherwise applicable, except with respect to the information and materials specifically referenced in the preceding sentence. By accepting delivery of this Presentation, each prospective investor agrees to the foregoing.

− Any opinions, forecasts, projections or other statements, other than statements of historical fact, that are made in this Presentation are forward-looking statements. Although the Sponsor believes that the expectations reflected in such forward-looking statements are reasonable, they do involve a number of assumptions, risks and uncertainties. Accordingly, neither the Sponsor nor any of its affiliates makes any express or implied representation or warranty, and no responsibility is accepted with respect to the adequacy, accuracy, completeness or reasonableness of the facts, opinions, estimates, forecasts, or other information set out in this Presentation or any further information, written or oral notice, or other document at any time supplied in connection with this Presentation, and nothing contained herein or in the Disclosure Document shall be relied upon as a promise or representation regarding any future events or performance. Past returns from investment in real estate (or real estate related investments) are no guarantee that the same (or enhanced) returns from real estate (or real estate related investments) will be achieved in the future.

− The recipient’s attention is specifically drawn to the risk factors identified by the Sponsor relating to the Opportunity as set out in the Disclosure Document or any other documents provided to the recipient. The Sponsor also advises that the potential investment described herein is speculative, involves a degree of risk and there is no guarantee of performance or a return of any capital with respect to any investment.

− By accepting delivery of this Presentation, the recipient accepts the terms of this notice and agrees, upon request, to return all materials received by the recipient from the Sponsor, including this Presentation without retaining any copies thereof.

Notice and Disclaimer

Appendix: Performance Notes & Disclaimer 37

Documents

Presentation for - Retirement...Producer-Writers Guild of America Sompo Japan Nipponkoa Asset Management Co., Ltd. State Board of Administration of Florida State of Wisconsin Investment