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Reporting Standards Council Meeting: Global Standards Initiatives and Reporting Standards 2020November 19, 2019ADDITIONAL RESOURCES: REPORTINGSTANDARDS.INFO

FOLLOW THE REPORTING STANDARDS ON LINKEDIN

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AgendaTopic Presenter(s)

Welcome and introductions John CarusoCouncil Chair

Global initiative panel discussion with Global Standards Steering Committee members

Moderator: John Caruso, Co-Chair Global SSC, Chair Reporting Standards CouncilPanelists:Barbara Flusk, Mike Morrell, Connie Tirondola, Candice Todd

Review of 2019 Sally Ann FloodCouncil immediate past Chair

Ask the Council: 2020 Reporting Standards changes and enhancements

David DiPaolo, Sally Ann Flood, Barbara Flusk and John Kjelstrom

What’s next for Reporting Standards? John Caruso

Closing John Caruso

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APP Instructions for Live Polling & Live Q&A

•Click Agenda icon

•Find this session: Reporting Standards 2020 & Global Standards Initiatives

•Scroll to Live Polls at the bottom

•Submit a question you’d like the Council to answer under Live Q&A!

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Welcome and IntroductionsJOHN CARUSO, REPORTING STANDARDS COUNCIL CHAIR

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John Caruso – Chair

•John Caruso is Managing Director, Head of Finance – Americas for Nuveen Real Estate which consists of approximately $90 billion in real estate equity and debt assets under management in North and South America.

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New Reporting Standards Logo!

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Council MembersNEW MEMBERS AND EXTENSIONS

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New Members

Partner, PwC

Lou DeFalco

Senior Vice President,

Institutional Marketing &

Investor Relations, Equus Capital

Partners

Joseph Nahas

Head of North American

Investment Performance,

LaSalle Investment Management

Diane Wild

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Term Extensions

Head of Real

Assets, Citco

Barbara Flusk

Director, Chatham Financial

John Kjelstrom

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Council Members as of November 2019

John Caruso, Managing Director, Head of Finance –

Americas, Nuveen Real Estate

Chair

Peter Bloomfield, Audit Partner, KPMG

Sarah Cachat, Partner, Townsend Group, an Aon

Company

Sara Davis, Senior Vice President,

Blackstone

Lou DeFalco, Partner, PwC

Jane Delfendahl, Investment Director,

CalPERS

David DiPaolo, Senior Vice President,

Clarion Partners

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Council Members

Barbara Flusk, Head of Real Assets, Citco

Kathryn Gernert, Senior Portfolio Manager, Texas

Education Agency

Barry Johnson, Senior Vice President, Global

Head of Real Assets, State Street Global Services

John Kjelstrom, Director, Chatham Financial

Joseph Nahas, Senior Vice President, Institutional

Marketing & Investor Relations, Equus Capital Partners

Diane Wild, Head of North American Investment Performance, LaSalle

Investment Management

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Board Members

Jim Allen, Managing Director & Fund CFO, Starwood

Capital Group

as of January 2020

Neal Armstrong, Director, Alternative Investment Services, BNY Mellon

Michael Fogliano, Senior Portfolio Manager, Real

Estate, State Board Administration of Florida

Mike Morrell, Manager, Global Real Estate

Investments & Commercial Lending, NYSTRS

Jerry Silvey, Vice Chairman & CFO, Starwood Capital Group

Retiring as of December 2019

Allison Yager, Partner, Global Leader Real Estate, Mercer

Nathan Zinn, Senior Managing Director, CBRE

Global Investors

Term expires December 2019

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Cristiano Machado, CFO Real Estate Funds, Brookfield

Property Group

Chair

Paul Quinlan, Managing Director & CFO, Real Estate,

Blackstone

Vice Chair

“It’s a big world out there. It would be a shame not to experience it” – J. D. Andrews

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Global Standards Initiatives Panel

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John Caruso

Moderator

Barbara Flusk

Mike Morrell

Connie Tirondola

Candice Todd

Global Standards Initiatives Panel

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John Caruso

Moderator

Barbara Flusk

Mike Morrell

Connie Tirondola

Candice Todd

Global Standards Initiatives Panel

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John Caruso

Moderator

Barbara Flusk

Mike Morrell

Connie Tirondola

Candice Todd

Review of 2019

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Sally Ann Flood

MISSION

To establish, manage and promote transparent and consistent reporting

standards for the Real Estate Industry to facilitate informed investment decision-

making.

ESTABLISH STANDARDS• Develop reporting standards

that are relevant to both open-end and closed-end funds that can improve the investment decision-making of investors.

GLOBAL ALIGNMENT• Converge investor reporting

standards globally.• Build a global platform for

transparent and consistent reporting for international investors and advisors.

Collaborate

Compliance

Promotion

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RS 2020: Strategic plan is catalyst for RS evolution1

•Establish Reporting Standards relevant to both open-end and closed-end funds, facilitating decision making:

◦ TWR: maintained open-end reporting requirement and provide for consistent and comparable TWR reporting for closed-end funds when requested.

◦ IRR: provided additional transparency in gross and net IRR reporting.

◦ Valuation: enhanced internal requirements while acknowledging fund structure differences may impact external appraisal considerations.

•Global Alignment◦ Total Global Expense Ratio (TGER): developed first globally comparable measure of fee and

expense load.

◦ Global Definitions Database (GDD): referenced GDD as source for definitions in RS materials.

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What’s new in RS 2020

David DiPaolo

Sally Ann Flood

Barbara Flusk

John Kjelstrom

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What’s new in RS 2020?TWR : comparable and consistent TWR reporting available to closed-end funds as requested

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Element description Frequency

Required or

recommended

element

Applicable

account type

Total and Component Time-Weighted Return

(TWR) - Gross and Net of Fees

Quarterly Required Open-end

Total and Component Time-Weighted Return

(TWR) - Gross and Net of Fees

As requested by investor Closed-end

Total and Component Time-Weighted Return

(TWR) - Gross and Net of Fees

Quarterly Recommended Single-client

Disclosures accompanying TWR: Required when TWR is reported All

Gross of fees

Net of fees

Period

Calculation Methodology

Valuation and accounting policy and fees

Treatment of activity before initial contribution

Start and end dates

What’s new in RS 2020?Gross and net IRR includes enhanced disclosures

Element description Frequency

Required or

recommended

element

Applicable

account type

Since Inception Internal Rate of Return

(IRR) - Gross and Net of fees

Quarterly Required Closed-end

Since Inception Internal Rate of Return

(IRR) - Gross and Net of fees

Quarterly Recommended Single Client

Disclosures accompanying IRR: Required when IRR is reported All

Gross of feesNet of feesTime period and frequency of cash flowsRealized IRR end dateUse of subscription lines

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What’s new in RS 2020?TGER, our first global standard

Element description FrequencyRequired or recommended

element

Applicable

account typeTotal Global Expense Ratio (TGER) Annually Required Open-end

Total Global Expense Ratio (TGER) Annually Required for funds

launched in 2020 and

beyond

Closed-end

Disclosures accompanying TGER: Required when TGER is reported

Use of rebatesTypes of fees and costs included in

calculationUse of estimatesFees paid in lieu of third party services

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What’s new in RS 2020?Valuation changes impact internal and external valuation frequencies, policies and procedures

Element description Frequency

Required or

recommended

element

Applicable

account type

Valuation policy Required All

Internal Valuations Quarterly Required All

External Valuations Annually Required Open-end

External Valuations As provided in agreements Closed-end

External Valuations

Once every three years

minimum Recommended SMA

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“Insufficient facts always invite danger.”

— Spock (Leonard Nimoy), Star Trek, Season 1: This Side of Paradise

What’s next: Aggressive outreach and investor reporting

•Success of RS 2020: multi faceted outreach

• Investor (specific reporting): logical next step

•Fund Governance

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Many thanks…

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US Real Estate Funds Leader, Deloitte &

Touche

Sally Ann Flood

Principal, Head of US Research,

BentallGreenOak

Paul Briggs

Managing Director and Fund Chief Financial

Officer, Starwood Capital Group

RS Board Member effective January 1,

2020

Jim Allen

Visit the Reporting Standards

Online: www.reportingstandards.infoLinkedIn: https://www.linkedin.com/company/ncreif-prea-reporting-standards

Email: administrator@reportingstandards.info

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