ASB Allegiance Real Estate Fund - Granicus

ASB Real Estate Investments

ASB A l leg iance Real Es ta te Fund

THIRD QUARTER 2012

August 21, 2019

Presentation to: Imperial County Employees Retirement System

Frank Nigro, Vice President

Client Service, (650) 304-0024

A $7.6 bil l ion open-end,

core U.S. real estate fund

building on three decades

of performance

ASB Allegiance

Real Estate Fund

David Quigley, Chief Investment Officer

Capital Investments, (650) 304-0019


ASB A l leg iance Real Es ta te FundDisclosure Statement

GIPS Compliant

ASB Capital Management LLC claims compliance with the Global

Investment Performance Standards (GIPS®).

GIPS Compliant Report

A GIPS compliant report of the ASB Core Real Estate Composite,

which includes the verification and examination statements, is

located in the Appendix section of this presentation. The

verification and examination opinion letters are available upon

request. The body of the presentation contains supplemental

information for GIPS purposes. A complete list of all of ASB

Capital Management’s composites and their descriptions is

available by contacting 240-482-2900.

─ All materials in this presentation are supplemental to the

GIPS compliant presentation included in the Appendix.

2

Investment Performance - Gross of Fees

Investment performance is presented gross of fees. Actual client

performance will be reduced by investment management fees. In

order to illustrate the performance effect of investment

management fees, comparative ASB Core Real Estate Composite

gross and net of investment fee returns are included in the

Appendix of this presentation. Past performance is not necessarily

indicative of future results.

Investment Management Fees

Investment management fees are described in ASB Capital

Management’s ADV and in the Appendix of this presentation.

─ All information, unless otherwise noted, is as of 6/30/19.

To ensure comparability, the returns in this presentation (unless otherwise noted) are portrayed as gross of

investment management fees. As a result, the following disclosures are made:

The information provided in this booklet should not be used for any other purpose unless expressly authorized by ASB Capital Management, LLC ®


ASB A l leg iance Real Es ta te FundIntroduction

3

ASB’s Mission: We Put Our Clients’ Investment Performance First

Our steadfast mission is to generate outstanding risk-adjusted investment

performance for our investors, so that their beneficiaries and retirees can

secure life-long financial independence and peace of mind.

Contents of Today’s Presentation:

I. Overview of ASB Real Estate Investments

II. ASB Allegiance Real Estate Fund — Strategy

III. Fund Performance, Drivers and Outlook

IV. Allegiance Fund Portfolio Composition

V. Appendix



4

465 Broadway | New York, NY


ASB A l leg iance Real Es ta te FundAbout ASB Real Estate Investments

5

A S S E T S U N D E R M A N A G E M E N T ( A S O F 6 / 3 0 / 1 9 ) *

Gross Asset Value $8.1 billion

Number of Assets 190

U.S. Markets 19

Total Square Feet 15.7 million

Performance

ASB has consistently delivered long-term performance well above

industry averages.

Philosophy

ASB’s investment philosophy capitalizes on a deep understanding

of local markets and tenant performance.

Veteran Leadership

The company’s disciplined strategy has been successfully executed by a senior team working collaboratively through multiple

real estate cycles.

Accountability

Executives and team members operate cross-functionally and are held accountable for performance outcomes based on the

full-life cycle of investments from acquisition through disposition.

Focus and Discipline

ASB manages a limited number of real estate investment products with clear, compelling strategies and no competing

mandates.

Social Responsibility

We are dedicated to making the places we invest in better. Socially responsible investments take into consideration

environmental, social, and governance (ESG) issues which can positively impact long-term performance and reduce risk.

ASB Real Estate Investments (ASB), a division of ASB Capital Management, LLC, is a leading U.S. real estate

investment management firm. Headquartered in Washington, DC, ASB invests in major urban markets across

the U.S., concentrating in office, multifamily, retail and industrial properties.

*Includes Meridian II, which is reported as of 3/31/2019



6

Sedona / Slate | Washington, DC


ASB A l leg iance Real Es ta te FundStrategy – ASB Allegiance Real Estate Fund

Investment Objective: Achieve full cycle, risk-adjusted out-performance through long-term NOI growth in a well diversified portfolio

of assets with unique competitive advantages located in top urban submarkets exhibiting robust demand drivers.

7

Target Markets/ Sub-Markets

• Major U.S. Metros – primarily global gateway markets

— Economic growth engines; supply constraints; demonstrated

liquidity

• Urban submarkets in future growth path based on tenant-centric analysis

— Pedestrian vibrancy, mass-transit proximity, amenities, among

other desirable traits.

Investment Criteria (Core = High Tenant Demand)

• Lease pricing power capable of generating long-term NOI growth

• Superior or unique physical characteristics

• Tenant’s perspective - proximity to desirable amenities and ideal

space/configuration preferences

• Supply-constrained submarkets with growth momentum where tenants

are and want to locate


ASB A l leg iance Real Es ta te FundNiche Investment Strategies Focused on Tenant Demand

TENANT CENTRIC, EXCEPTIONAL QUALITY, URBAN FOCUSED

8

URB A N & W ORK FORCE

MULT IFA M IL Y

T he Green D i s t r i c t , B os ton605 L i nco l n , Miam i

URB A N RE T A IL

SELF-STORAGE

S to rQue s t P o r t f o l i o I , V a r i ous1400 16 t h S t . , S an F ranc i sco

INDUSTRIAL FOR TECH PRODUCTION,

LOGISTICS & DATA

URB A N CRE A T IV E OFFICE

455 Mass A ve . , W ash ing ton , DC

• Modern construction with high percentage of

temperature controlled units

• Strong visibility with superior traffic counts

• Dense urban submarkets with limited competing supply

• Submarkets in vibrant, mixed-use settings with access

to mass-transit and sustainable economic drivers

• Urban locations enhance access to top talent and build

corporate brand and reach

• Creative buildings with natural light, high ceilings and

open, flexible floor plates

• Urban, walkable mixed-use submarkets with

neighborhood restaurants and entertainment amenities

• Steady net absorption due to strong job growth amid

solid fundamentals

• Job center proximity

• Urban density and strong foot traffic drive sales and e-

commerce

• Limited vacancy and street-level requirements create

high barriers

• No mall or power center exposure

• Unique bulk facilities with competitive physical

characteristics, including high ceilings, open floor

plates, etc.

• Tight industrial submarkets with low vacancy and

limited supply of comparable product

• Proximity to major highways, providing efficient routes

to major commercial corridors



9

455 Massachusetts Avenue, NW | Washington, DC



10

Imperial County Employees Retirement System CH500009

CH500009

Fund NAV: $6,091,381,818.52

3 Months 12 Months Inception date for your plan was:

Beginning Partner's Capital $35,981,713 $34,098,127 January-13 12/31/2012

Net Contributions / (Withdrawals) $0 $0

Net Income $263,645 $1,048,487 Fund Gross Return Since Client Inception

Gains and Losses1 $239,740 $1,338,484 (annualized if greater than 1 year) 10.08%

Distributions2 $0 $0

Ending Partner's Capital $36,485,098 $36,485,098 Client Net Return Since Client Inception

Cash Balance (Pending Settlements) $0 $0 (annualized if greater than 1 year) 9.14%

Total Partner's Assets $36,485,098 $36,485,098

PERFORMANCE SUMMARY3

3 Months YTD 1 Yr 3 Yrs 5 Yrs 7 Yrs 10 Yrs

ASB Allegiance Real Estate Fund 1.40% 3.44% 7.00% 6.20% 9.25% 10.25% 10.16%

NCREIF Fund Index - ODCE - Value Weight 4 1.00% 2.43% 6.41% 7.57% 9.76% 10.52% 9.88%

ASB Allegiance Real Estate Fund - Net5 1.18% 2.99% 6.06% 5.26% 8.27% N/A N/A

ALLOCATION PROFILE (GAV)6 GEOGRAPHIC PROFILE (GAV)6

Allegiance NFI-ODCE VW Allegiance NFI-ODCE VW

Office 32.3% 34.7% East 48.49% 32.66%

Industrial 17.6% 17.0% Midwest 7.4% 8.7%

Residential 19.9% 26.1% South 6.5% 18.5%

Retail 24.2% 18.0% West 37.6% 40.1%

Self-Storage 5.9% 2.2%

Land N/A 0.3%

Hotel N/A 0.3%

Other N/A 1.3%

Cash 4.3% 2.2%

Note: Percentages are calculated NET of cash as per NFI-ODCE reporting format

1After all fees and costs except investment management fees.

2Distributions represent asset management fees paid from the dividend plus the net cash dividend paid to the investor.

3Past performance is not necessarily indicative of future results. Returns for periods greater than one year are annualized and time-w eighted. Returns are before the deduction of investment advisory fees.

6ABeginning 6-30-19, Fund asset class and geographic diversif ication is being show n on a GAV rather than NAV basis, as it is a better reflection of the Fund's total property exposure.

Quarterly Review for Periods Ending 6/30/19

LP Unit Value: $1,484.560 Client Outstanding LP Units: 24,576.376

ASSET GROWTH SUMMARY

Note: This analysis excludes non-real estate assets.

4As of March 31, 2009, the ASB Allegiance Fund’s benchmark for performance is the NCREIF Fund Index - Open-End Diversif ied Core Equity (NFI-ODCE). This index is a fund level capitalization-w eighted, time-w eighted return index and includes property

investments at ow nership share, cash balances and leverage (i.e. returns reflect each member fund’s actual asset ow nership positions and f inancing strategy).5ASB Allegiance Real Estate Fund net of fee returns are calculated by client on a cash basis for time periods in w hich the client w as invested for the entire time period.


ASB A l leg iance Real Es ta te FundPerformance

11

0%

4%

8%

12%

QTR YTD 1 YR 3 YR 5 YR 10 YR 15 YRSince

Inception

ASB Allegiance Fund 1.40% 3.44% 7.00% 6.20% 9.25% 10.16% 8.70% 8.22%

NFI-ODCE VW 1.00% 2.43% 6.41% 7.57% 9.76% 9.88% 8.01% 7.43%1

The Allegiance Fund has outperformed the NFI-ODCE over a full market cycle.

1 The NFI-ODCE Value-Weight is a fund level value-weighted return index and includes property investments at ownership share, cash balances and leverage (i.e. returns reflect each member fund’s

actual asset ownership positions and financing strategy). In addition, each fund has unique investment strategies (i.e. leverage, property type investments) that will impact performance differently.

Please see the ASB Core Real Estate Composite GIPS compliant presentation located in the Appendix section of this presentation for further details concerning gross of fee returns and net of fee

returns.

A N N U A L I Z E D G R O S S O F F E E T O T A L R E T U R N S ( a s o f 6 / 3 0 / 1 9 )


ASB A l leg iance Real Es ta te FundOutperformance Over A Full Market Cycle

12

• Strong relative performance during the downturn demonstrates

a modest risk profile.

• Demonstrably provides similar outperformance in both up and

down markets.

• Outperformed the NCREIF Fund Index-ODCE Value-Weight in

nine of the past 15 years.

S U M M A R Y

ALLEGIANCE FUND NFI-ODCE-VW1

UP YEARS

2004 14.00% 13.06%

2005 18.63% 21.39%

2006 18.11% 16.32%

2007 15.65% 15.97%

2010 17.02% 16.36%

2011 21.02% 15.99%

2012 12.46% 10.94%

2013 13.72% 13.94%

2014 13.52% 12.50%

2015 17.28% 15.02%

2016 5.56% 8.77%

2017 4.92% 7.62%

2018 7.61% 8.35%

Cumulative 430.83% 418.34

Cumulative Outperformance 12.49%

# of Years 13

Annualized Outperformance 0.91%

1 The NFI-ODCE Value-Weight is a fund level value-weighted return index and includes property investments at ownership share, cash balances and leverage (i.e. returns reflect each member fund’s actual asset ownership positions and

financing strategy). In addition, each fund has unique investment strategies (i.e. leverage, property type investments) that will impact performance differently.

Please see the ASB Core Real Estate Composite GIPS compliant presentation located in the Appendix section of this presentation for further details concerning gross of fee returns and net of fee returns.

Annualized performance is compounded.

ALLEGIANCE FUND NFI-ODCE-VW1

DOWN YEARS

2008 -4.55% -10.01%

2009 -29.52% -29.76%

Cumulative -32.73% -36.79%

Cumulative Outperformance 4.06%

# of Years 2

Annualized Outperformance 2.01%

F I F T E E N - Y E A R A N A L Y S I S



-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

Q2 2018 Q3 2018 Q4 2018 Q1 2019

ASBAllegianceFund

NPI-ODCE

ASB Relativeto NPI-ODCE

Active asset management is driving results on an absolute and relative basis

13

Drivers of Improved Relative Performance

• Continued broad-based leasing success in core and non-core portfolios

• Strategic Dispositions: New York and Minneapolis office, data center portfolio, and select retail

• Accretive Acquisitions: Industrial, self-storage, and multifamily

• Rightsizing portfolio leverage

• Greater pricing equilibrium between primary and secondary markets

T R A I L I N G O N E - Y E A R U N L E V E R E D R E A L E S T A T E R E T U R N S *

* As of 3/31/19 and does not include the performance of data center bonds or leverage


ASB A l leg iance Real Es ta te FundProjected New and Expansion Lease Commencements (in $ millions)*

14

Including executed commercial leases and projected self-storage lease up, annual NOI commencements of approximately

$25.9 million are projected over the next four quarters.

P R O J E C T E D N E W & E X P A N S I O N L E A S E C O M M E N C E M E N T S ( i n $ m i l l i o n s ) *

*Self-storage lease-up is based on projections.

$1.5

$10.2

$1.3

$4.2$2.1

$1.5

$2.4

$2.7$3.7

$11.7

$3.7

$6.9

$15.3

$19.0

$25.9

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

$30.0

3Q19 4Q19 1Q20 2Q20

Mill

ions

Commercial Self-Storage Cumulative


ASB A l leg iance Real Es ta te FundUpside Potential

15

*Base rent opportunity from rolling current in-place leases to market rents upon lease expiration.

**As of 3/31/19

R E A L E S T A T E F U N D I N C O M E G R O W T H O P P O R T U N I T I E S * *

Property Type Leased SF

Weighted Avg.

Lease Maturity

(Yrs)

In-Place Rent Market RentMarket Premium

to In-PlaceBase Rent Upside*

Office 2,875,867 6.2 $46.53 $52.21 12.2% $13,588,548

Retail 1,215,744 7.2 $60.50 $66.23 9.5% $7,118,452

Industrial 3,153,734 8.2 $10.22 $12.17 19.0% $6,039,829

Total 7,245,345 6.8 $33.07 $37.13 12.3% $26,746,828

Over $32 million of potential significant upside through leasing high-value space.

1Includes unspent base building capital and capital related to speculative leasing.

REAL ESTATE FUND LEASING RISK AND UPSIDE -

Property Property TypeTotal Rentable

SF

Capex in Next 3

Years ($M)1

Total NOI Upside @

93% Leased ($M)Status

StorQuest Portfolio II Self-Storage 528,394 0.27$ 9.14$ Pre-Delivery

StorQuest Portfolio I Self-Storage 778,392 0.47$ 8.61$ Delivered

Williamsburg Portfolio II Retail 43,005 1.94$ 4.38$ Delivered

Williamsburg Portfolio I Retail 29,157 4.06$ 2.67$ Delivered

120 Greenw ich Retail 4,653 0.66$ 1.82$ Delivered

61 Crosby Retail 32,400 3.73$ 1.59$ Delivered

The Park on Bluebonnet Residential 358,608 7.11$ 1.38$ Delivered

200 Pow ell Street Retail 7,800 1.02$ 1.38$ Delivered

1010 Flanders Office 56,279 3.91$ 0.86$ Delivered

Colorado Center Tow er III Office 227,921 10.72$ 0.36$ Delivered

Total 2,066,609 33.88$ 32.19$ -



16

415 Broadway | New York City, NY


ASB A l leg iance Real Es ta te FundAllegiance Fund Overview

17

F U N D F A C T S ( A S O F 6 / 3 0 / 1 9 )

Fund’s Total Gross Assets $7.6B # of Investments/Properties1 82/176

Net Assets $6.1B Operating Occupancy2 92%

Leverage Level 19.3% WTD Avg. Lease Exp. 3 6.8 years

Number of Investors 335+ Non-Core % (GAV) 6.1%

Portfolio Size 12.9M SF % Joint Ventures (GAV) 44%

Well-Leased Diversified Portfolio

• Tenant-centric investment philosophy

• High-quality portfolio with characteristics attractive to tenants

• Well-located assets in the top urban markets across the United States where

tenants want to be

Moderate Risk Profile

• Weighted average lease expiration of 6.8 years 3

• Lease maturities are staggered

• Debt level below benchmark

• Laddered debt maturities with minimal refinancing risk

• Strategic line of credit primarily reserved for liquidity management

Limited non-core/development exposure

• 6.1% of Fund GAV is invested in non-core properties (7.6% of Fund NAV)

1The Equinix Bonds are categorized as four separate investments, one for each tranche.2Excludes properties in initial lease-up and development.3As of 3/31/2019.



91%

9%

Urban Office

Inner-ringUrban Office

Investment Attributes

• Walkable submarkets with sustainable economies with mass-transit

• Urban locations that help attract and retain top talent

• Creative buildings feature “inspired” workspaces with natural light, high ceilings and open, flexible

floor plates

P R O P E R T Y S U B T Y P E ( % o f O f f i c e G A V ) *

K E Y O F F I C E P O R T F O L I O M E T R I C S

Fund’s GAV $2.4B % LEED 31%

NAV $1.9B Walk Score 90

No. of Investments 22 Total Rentable SF 3.3M

Operating Occupancy* 93%

M S A D I V E R S I F I C A T I O N ( T o p 5 G A V )

Urban, Creative Office – Overview

18

*Excludes properties in initial lease-up and development

12%

14%

15%

19%

26%

0% 10% 20% 30%

Denver

New York

Boston

Washington

San Francisco


ASB A l leg iance Real Es ta te FundRepresentative Office Investments

19

333 S um m er S t . , B os ton , MA Hardwar e B lock , Denve r Co

455 Mass A ve . , W ash ing ton , DC 799 Mark e t , S an F ranc i sco , CA

De Haro P lace , S an F ranc i sco , CA989 Mark e t , S an F ranc i sco , CA625 B roadwa y , New York , NY

The investments shown above are not a complete representation of the respective property type investments and not all investments will have the characteristics of those shown here. For a complete list of investments, please refer to the

“Portfolio Summary” section located in the Appendix of this presentation.



91%

9%UrbanMultifamily

WorkforceMultifamily


• Walkable mixed-use submarkets

• Easy access to mass-transit and short

commute to employment hubs

P R O P E R T Y S U B T Y P E (% o f Mu l t i f a m i l y GA V ) *

K E Y M U L T I F A M I L Y P O R T F O L I O M E T R I C S

Fund’s GAV $1.5B Units 3,256





Urban Multifamily – Overview

20


• Restaurants and amenities

• Attractive fundamentals

• Superior rent growth potential

6%

8%

15%

23%

40%

0% 25% 50%

Seattle

Minneapolis

Washington

Los Angeles

Boston


ASB A l leg iance Real Es ta te FundRepresentative Multifamily Investments

21

B lue , Minneap o l i s , MN L im e , Minnea po l i s , MN

Gibson S an ta Mon i ca , S an ta Mon i ca , CA 333 Frem on t , S an F ranc i sco , CA

Green D i s t r i c t , B os ton , MA S ta t i on Land ing , B os ton , MA

W ate rMark e , Los A nge les , CA

S edona S la te , W ash ing ton , DC





18%

36%46%

IndustrialProduction

Logistics

Senior DataCenter Bonds


• Industrial Warehouse

— Distribution space in close-in, high-

barrier submarkets

— Key drivers: Time-sensitive

consumer demand in strong

population centers

P R O P E R T Y S U B T Y P E ( % o f I n d u s t r i a l G A V ) *

K E Y I N D U S T R I A L P O R T F O L I O M E T R I C S

Fund’s GAV $1.3B Operating Occupancy1 96%

NAV $1.2B % JV (NAV) 16%

No. of Investments2 16 % Manage-to-core 0%

Total Rentable SF 4.2M

M S A D I V E R S I F I C A T I O N ( T o p G A V ) 3

Industrial – Overview

22

• Hi-Tech R&D and Production

— Hybrid office, R&D and production space in

San Francisco

— Walkable urban locations catering to

knowledge workers

• Data Storage

─ Critical infrastructure: Fiber network,

power, cooling

─ Key drivers: Global growth in digital content

1Excludes properties in initial lease-up and development.2The Equinix Bonds are categorized as four separate investments, one for each tranche.3Does not include Senior Data Center Bonds.

7%

9%

15%

21%

33%

0% 10% 20% 30% 40%

Boston

Miami

Houston

New York

San Francisco



H ia l eah Gardens , Miam i , FL

Cader Lane , S an F ranc i sco , CAS unse t P a rk , B rook l yn , NY

1000 T ech , B os ton , MA

1201 B ryan t , S an F ranc i sco , CA

Representative Industrial Investments

23

1400 16 t h , S an F ranc i sco , CA



A lam o C ross i ng , Hous ton , T X




• Urban density and strong foot traffic drive

sales

• High visibility achieves marketing objectives

• Limited ground-floor availability creates

barriers

95%

5%

Urban Retail

CommunityRetail Center

P R O P E R T Y S U B T Y P E ( % o f R e t a i l G A V )

K E Y R E T A I L P O R T F O L I O M E T R I C S

Fund’s GAV $1.8B Average Market Rent PSF $71





• Relative affordability creates value

proposition

• Avoids grocery-anchored binary risk

• No mall or power center exposure

Urban Retail – Overview

24


8%

10%

15%

19%

36%

0% 10% 20% 30% 40%

San Francisco

Boston

Los Angeles

Chicago

New York


ASB A l leg iance Real Es ta te FundRepresentative Retail Investments

25

V en i ce P o r t f o l i o , Los A nge les , CA 415 W B roadwa y , New York , NY

6904 Ho l l ywo od , Los A nge les , CA Greene S t ree t , New York , NY

Co lo rado Cen te r Re ta i l , Denve r , CO 10 S S ta te , Ch i cago , IL

200 P owe l l , S an F ranc i sco , CA

B ack B ay P o r t f o l i o , B os ton , MA



120 Nor th 6 t h , New York , NY




• Small leases translate to significant credit diversity

• Limited ongoing capital requirements

• Excellent trade area fundamentals heighten performance

• Modern facilities garner higher rents and better income growth

• Increasing institutional interest pushes investor demand

K E Y S E L F - S T O R A G E P O R T F O L I O M E T R I C S

Fund’s GAV $0.4B Average Market Rent PSF $26

NAV $0.4B Units 15,802


No. of Properties 161 Operating Occupancy2 73%

M S A D I V E R S I F I C A T I O N

Self-Storage – Overview

261As of 6/30/2019, ASB’s self-storage portfolio was comprised of 16 properties. Three additional properties are expected to close during the third quarter of 2019.2Excludes properties in initial lease-up and development

31%

24%

17%

13%

9%

5%

0%

10%

20%

30%

40%

New York Miami Denver Los Angeles Phoenix San Diego



32.3%

24.2%

19.9%

17.6%

5.9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Office Retail Residential Industrial Self-Storage

ASB Allegiance Fund NFI-ODCE

Asset Type Composition Overview (GAV)

27

% Δ YoY -2.2% -2.5% -0.0% +1.9% +2.8%

Reductions in office and retail exposure and increased allocations to self-storage and industrial

reflect strategic priorities.


ASB A l leg iance Real Es ta te FundNCREIF Subregion Composition Overview (GAV)

28

% Δ YoY -4.2% +2.8% -1.3% -0.2% -0.7% +2.3% +1.4% -0.2%

N C R E I F S U B R E G I O N D I V E R S I F I C A T I O N ( G A V )

Near-term objective is to increase allocation to Pacific region markets.

36.9%

31.0%

11.6%

6.6%

5.7%4.2%

2.3% 1.7%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

Northeast Pacific Mid-Atlantic Mountain East Central Southeast Southwest West Central

ASB Allegiance Fund NFI-ODCE


ASB A l leg iance Real Es ta te FundDispositions (TTM)

29

ASB undertakes a highly proactive and disciplined sales approach to acknowledge new threats, respond

to overly aggressive pricing and divest uncompetitive assets.

In addition to leasing and asset management, the Fund’s investment activity continues to position the

portfolio for superior long-term performance.

Asset Date Type MSA Square feet Price ($M)

400 Madison 10/24/2018 Office New York 175,408 $194.5

Alaska CargoPort 1/2/2019 Industrial Anchorage 112,823 $14.5

Fulton Market (Partial Sale) 1/25/2019 Retail Chicago 14,486 $7.5

Station Landing (Partial Sale) 3/15/2019 Residential Boston 14,879 $1.7

875 Washington 4/29/2019 Retail New York 62,618 $129.5

TOTAL 380,214 $347.7


ASB A l leg iance Real Es ta te FundRecent Acquisitions (TTM)

30

All recent acquisitions reflect the Allegiance Fund’s strategic focus on assets with unique competitive advantages

located in supply-constrained, vibrant urban markets.

The Allegiance Fund will engage in orderly redeployment of sale proceeds into investments with accretive income

and compelling risk-adjusted returns.

Asset Date Type MSA Square feet Price ($M)

1490 Cader Lane 7/26/2018 Industrial San Francisco 94,000 $18.9

Corte Bella 8/29/2018 Residential Los Angeles 212,848 $85.8

StorQuest Portfolio II 9/12/2018 Self-Storage Various 462,648 $158.0

Alamo Crossing 9/28/2018 Industrial Houston 1,047,797 $99.9

La Mesa (StorQuest I) 11/8/2018 Self-Storage San Diego 77,862 $21.1

West Babylon (StorQuest II) 11/30/2018 Self-Storage New York 65,998 $25.1

Middlesex Logistics Center 11/16/2018 Industrial New Jersey 570,100 $83.0

Keystone Industrial Portfolio 11/19/2018 Industrial Philadelphia 475,910 $42.0

79 North 4/25/2019 Industrial Pittsburgh 407,720 $38.0

Leland James 5/8/2019 Office Portland 117,591 $67.5

Bridge Point Riverbend 5/24/2019 Industrial Miami 221,542 $38.2

8800 Adamo 6/13/2019 Industrial Tampa 368,664 $26.3

TOTAL 4,122,680 $703.8


ASB A l leg iance Real Es ta te Fund2019 Investment Objectives and Outlook

31

Continue to remain an active portfolio manager through investment and leasing activity

• Focus on income-growth driven by leasing success

─ $17 million in 2019 commencements from executed leases

─ Over $32 million in additional NOI upside from stabilizing value-add investments

─ Up to $27* million in additional upside from unlocking below-market rents

• Source compelling acquisitions with superior income durability and long-term NOI growth outlook

─ Industrial: Close-in logistics assets in high-barrier, supply-chain centric submarkets

─ Multifamily: Workforce and Class A in supply-constrained markets with growth drivers

• Pursue strategic sales for top disposition targets

─ Washington D.C. and New York retail and New York office

• Maintain Fund’s moderate leverage profile

*As of 3/31/19



32

A. Firm Governance

B. Investment Process

C. Portfolio Summary

D. Sustainability

E. ASB Allegiance Real Estate Fund Gross and Net Returns and GIPS Compliance Charts



33

Sunset Electric | Seattle, WA


ASB A l leg iance Real Es ta te FundFund Governance

34

A S B I N V E S T M E N T C O M M I T T E E

Primary Allegiance Fund Decision-Makers

David Quigley, Chief Investment Officer & Investment Committee Chair

• Robert B. Bellinger, President & CEO

• Jim Darcey, Managing Director

• Larry Braithwaite, SVP & Portfolio Manager

• Brodie Ruland, SVP, Northeast Region

• Nick Franzetti, SVP, Southeast/Midwest Region

• Aaron Duncan, SVP, West Region

• Brendan Reed, General Counsel

• Paul Duncan, Chief Compliance Officer (non-voting)

R E A L E S T A T E I N V E S T M E N T A D V I S O R Y C O M M I T T E E ( R E I A C ) I N V E S T O R A D V I S O R Y C O M M I T T E E ( I A C )

REIAC Responsibilities: Review and provide independent advice, industry expertise and guidance IAC Responsibilities: Review, consult and provide consent

‒ Major decision rights (majority approval

required)

‒ New investment commitments

‒ Dispositions/Financings

‒ Changes to portfolio investment strategy

‒ Quarterly portfolio reviews

‒ Changes to Investment Policy

‒ Appraisal firm recommendations

‒ Transactions not authorized by the Partnership Agreement

‒ Retention, services and fees of ASB affiliates

‒ Potential conflicts of interest

‒ Consents required by law or the Partnership Agreement

Independent Directors

• Philip Caraci, Saul Centers*

• Philip J. Mudd, DTZ

• Joyce R. Frater, Morgan Stanley*

• F. Joseph Moravec, GSA*

• Rebecca Owen, Clark Enterprises, Inc.

* Retired

ASB Capital Management Directors

• Peter M. Welber, Chevy Chase Trust

• Christine Nicolaides Kearns, Saul Organization

• Robert B. Bellinger, ASB Real Estate Investments

Non-Voting Directors

• Jim Darcey, ASB Real Estate Investments

• David Quigley, ASB Real Estate Investments

Investor Representatives

• Robert Alvarado, Northern California Carpenters

• Bruce Dunn, Ohio Bureau of Workers Compensation

• Kenneth Cooper, International Brotherhood of Electrical Workers

• Anthony Breault, Oregon Public Employees Retirement Fund

• Daryn Miller, Kern County Employees’ Retirement Association



35

Two Financial Center | Boston, MA


ASB A l leg iance Real Es ta te FundInvestment Process - Research

36

• Operating Partners

• Appraisal Firms

• Intermediaries

─ Investment Brokers

─ Leasing Agents

─ Capital Brokers

─ Lenders

Data Sources

• Focus on real estate fundamentals and capital markets

• Identify/Target MSA’s

Liquidity

Competitive

Threats

Economic

Trajectory

Occupancy

Performance

HH Formation

Rent Growth

Outlook

Absorption Trends

Supply Pipeline

Macro Trends

Employment

Composition &

Growth

Partner Track

Record & Expertise

Submarket Growth

Trajectory

Asset Competitive

Positioning

Return Drivers

Tenant

Demand Drivers

Income

Stability

• Leverage direct local network of over 2,500 professionals

• Underwrite a specific asset/geography

Investment Conviction


ASB A l leg iance Real Es ta te FundInvestment Process

37

Sourcing Initial Review

Letter Of IntentDue Diligence & Closing

● Negotiate definitive/acceptable pricing

● Formulate terms and structure

● Partner aligned with co-invest and incentivized through

back-end economics

● Legal review

● Approved by Investment Officer, Portfolio Manager,

CIO, and CIG MD

● Execute LOI

● Consistent off-market or repeat business through our

sourcing contacts/network

● Repeat investment in target markets enhances

acquisitions judgment

● Partner product knowledge and geographic expertise

shape opportunity

● Thorough due diligence conducted by ASB’s

Capital Investments Group staff

● Third-party physical and environmental study

● Detailed investment committee memo drafted

● Due diligence checklist

● Closing

BI -W EEKLY PIPELINE | B I -W EEKLY INVESTMENT COMMITTEE | REIAC PREVIEW AND FINAL APPROVAL | B I -W EEKLY LEASING

● Preliminary analysis of investment, market and operator

─ Site inspection

─ Financial projections

─ Market and location analysis

─ Assessment of real estate improvements

─ Review investment terms/capitalization

─ Prepare investment committee memo

● All-hands vetting discussion during pipeline

● Investment Committee vote

● Preliminary investment memo produced

● Investment allocation



38

1400 16th | San Francisco, CA


ASB A l leg iance Real Es ta te FundCurrent Portfolio Investments (East)

39

Investment Name City State MSA Type Rentable SF Allegiance NAV

East

Two Financial Center Boston MA Boston Office 217,763 $189,151,491

Station Landing - Residential Medford MA Boston Residential 424,009 $145,392,795

455 Massachusetts Ave Washington DC Washington Office 243,362 $131,633,735

Greene Street New York City NY New York Retail 42,950 $110,666,914

Back Bay Retail Portfolio Boston MA Boston Retail 51,565 $108,539,922

The Peninsula Boston MA Boston Residential 283,762 $108,432,951

625 Broadway New York City NY New York Office 93,839 $102,721,686

Williamsburg Portfolio II Brooklyn NY New York Retail 43,005 $99,900,743

168 Canal New York City NY New York Retail 51,719 $89,934,776

The Green District Portfolio Boston MA Boston Residential 209,214 $87,894,538

64 New York Washington DC Washington Office 355,034 $82,739,401

Sedona Arlington VA Washington Residential 214,704 $66,934,530

61 Crosby New York NY New York Retail 32,400 $65,306,799

Slate Arlington VA Washington Residential 151,535 $60,306,213

465 Broadway New York City NY New York Retail 9,339 $56,472,877

415 W. Broadway New York City NY New York Retail 40,595 $53,186,878

7 W. 18th New York NY New York Office 48,875 $52,797,418

333 Summer Boston MA Boston Office 117,801 $52,573,701

155 Mercer New York NY New York Retail 14,589 $51,862,017


ASB A l leg iance Real Es ta te FundCurrent Portfolio Investments (East Cont.)

40


East

320 Summer Boston MA Boston Office 108,667 $50,353,461

Williamsburg Portfolio I Brooklyn NY New York Retail 29,157 $49,946,684

West 27th New York NY New York Office 118,766 $48,293,721

1000 Tech Drive Stoughton MA Boston Industrial 332,676 $47,852,942

Middlesex Logistics Center Edison NJ New York Industrial 570,100 $47,486,569

Dobbin Center Columbia MD Baltimore Retail 126,425 $45,626,846

Keystone Industrial Portfolio Bristol PA Philadelphia Industrial 475,910 $43,323,668

Prince William Square Woodbridge VA Washington Retail 232,957 $39,008,418

801 N. Capitol Washington DC Washington Office 87,883 $38,152,557

Station Landing - Retail Medford MA Boston Retail 119,301 $37,522,039

120 Greenwich New York NY New York Retail 4,653 $31,437,120

Sunset Park Brooklyn NY New York Industrial 209,853 $29,190,206

120 N. 6th Williamsburg NY New York Retail 7,500 $22,332,069

79 North Sewickley PA Pittsburgh Industrial 407,720 $19,254,106

3299 M Georgetown DC Washington Retail 3,300 $7,238,034

Total 5,480,928 $2,273,467,826


ASB A l leg iance Real Es ta te FundCurrent Portfolio Investments (South)

41


South

Senior Data Center Bonds Industrial - $624,067,442

StorQuest Portfolio II Miami FL Miami Self-Storage 528,394 $188,653,011

Design District - 70 NE 39th Miami FL Miami Retail 9,023 $53,490,048

Alamo Crossing Houston TX Houston Industrial 1,047,797 $50,387,302

The Park on Bluebonnet Baton Rouge LA Baton Rouge Residential 358,608 $50,267,392

Bridge Point Riverbend Fort Lauderdale FL Miami Industrial 221,627 $38,295,970

605 Lincoln Miami Beach FL Miami Retail 9,268 $35,481,696

8800 Adamo Tampa FL Tampa Industrial 368,664 $26,307,323

215 SE Tenth Hialeah FL Miami Industrial 301,983 $25,925,528

Total 2,845,364 $1,092,875,712


ASB A l leg iance Real Es ta te FundCurrent Portfolio Investments (Midwest)

42


Midwest

15 E. Oak Chicago IL Chicago Retail 94,700 $181,390,630

10 S. State Chicago IL Chicago Retail 56,109 $71,217,967

Blue Minneapolis MN Minneapolis Residential 193,293 $66,223,833

Fulton Market Portfolio Chicago IL Chicago Retail 91,388 $53,923,351

Lime Minneapolis MN Minneapolis Residential 136,843 $48,916,931

Total 572,333 $421,672,713


ASB A l leg iance Real Es ta te FundCurrent Portfolio Investments (West)

43


West

StorQuest Portfolio I Denver CO Denver Self-Storage 778,392 $246,200,602

799 Market San Francisco CA San Francisco Office 138,953 $184,584,115

De Haro Place San Francisco CA San Francisco Office 136,481 $169,144,642

At Mateo Los Angeles CA Los Angeles Office 193,750 $159,378,160

1201 Bryant San Francisco CA San Francisco Industrial 139,154 $136,219,669

795 Folsom San Francisco CA San Francisco Office 189,533 $128,727,866

989 Market San Francisco CA San Francisco Office 111,337 $113,140,992

Colorado Center Office Denver CO Denver Office 502,429 $110,103,515

1400 16th San Francisco CA San Francisco Industrial 103,213 $101,512,565

Colorado Center Tower III Denver CO Denver Office 227,921 $97,017,618

Gibson Santa Monica Santa Monica CA Los Angeles Residential 75,712 $85,204,323

WaterMarke Tower Los Angeles CA Los Angeles Residential 254,326 $80,031,673

333 Fremont San Francisco CA San Francisco Residential 67,093 $63,997,722

Venice Portfolio Venice CA Los Angeles Retail 21,354 $63,281,197

Leland James Portland OR Portland Office 117,591 $61,548,166


ASB A l leg iance Real Es ta te FundCurrent Portfolio Investments (West Cont.)

44


West

1755 Blake Denver CO Denver Office 112,943 $60,454,065

REO Flats Seattle WA Seattle Residential 68,218 $50,520,278

River East Portland OR Portland Office 99,715 $48,417,325

Sunset Electric Seattle WA Seattle Residential 60,695 $41,383,402

6904 Hollywood Hollywood CA Los Angeles Retail 44,821 $37,508,299

200 Powell Street San Francisco CA San Francisco Retail 7,800 $35,417,489

Colorado Center Retail Denver CO Denver Retail 121,133 $34,928,724

Corte Bella Fountain Valley CA Los Angeles Residential 212,728 $32,880,246

Beverly & Robertson West Hollywood CA Los Angeles Retail 18,838 $25,153,815

1010 Flanders Portland OR Portland Office 56,279 $25,130,252

145 N. Robertson West Hollywood CA Los Angeles Retail 12,478 $23,402,414

Hardware Block Denver CO Denver Office 52,191 $21,502,408

1490 Cader Lane Petaluma CA San Francisco Industrial 94,000 $20,480,992

1640 5th Street Santa Monica CA Los Angeles Office 36,555 $18,798,943

2014 E. 7th Los Angeles CA Los Angeles Retail 22,818 $14,189,042

131 Robertson Beverly Hills CA Los Angeles Retail 5,000 $9,281,243

Total 4,083,451 $2,299,541,764


ASB A l leg iance Real Es ta te FundHistorical Portfolio Investments

45

East

875 Washington New York NY Retail 62,618 $129.5

400 Madison New York NY Office 175,408 $141.2

Spotsylvania Crossing Fredericksburg VA Retail 144,000 $15.4

Infomart Ashburn Sterling VA Industrial (Data Center) 60,000 $70.9

900 G Street Washington DC Office 112,635 $80.7

Resource America - Nittany Pointe Altoona PA Residential 156 Units $27.9

Teaneck Data Center Teaneck NJ Industrial 55,000 $6.1

Station Landing - Land Boston MA Land N/A $6.3

Station Landing - Office Boston MA Office 158,090 $30.3

Hamilton Park White Plains NY Land N/A $4.5

499 South Pickett Alexandria VA Retail 70,000 $15.4

Swan Creek Glen Burnie MD Industrial 512,430 $24.4

Resource America -KY Lexington KY Residential 300,130 $8.8

Ames Pond Tewksbury MA Office 153,169 $12.5

West Quest Linthicum MD Office 315,350 $49.3

104 West 40th St New York NY Office 201,088 $88.4

Riverside Belcamp MD Industrial 197,248 $9.4

Pencader Newark DE Industrial 184,000 $8.2

Commodore Woolwich NJ Industrial 212,000 $9.3

Newton Place Newton MA Office 168,000 $0.6

Lion Building Washington DC Office 147,000 $6.2

West-X Building Rockville MD Office 112,500 $0.8

Brookfield Land Chantilly VA Office 5.2 Acres $2.1

Ambassador House Washington DC Residential 82 Units $12.0

Stevens Forest Green Columbia MD Office 80,000 $17.0

Chelsea House New York NY Residential Completed 2006 $12.5 (Loan)

Cork Factory Pittsburgh PA Residential 313,486 $50.5

Corporate Ridge Rocky Hill CT Office 103,000 $14.5

Park Central Richmond VA Land 0 $1.0

Total 3,837,152 $843.1

Investment Name City State Type Rentable SF Allegiance NAV



46


South

Infomart Dallas Dallas TX Industrial (Data Center) 1,379,000 $781.9

Design District 39th Miami FL Retail 9,400 $46.6

Braelinn Village Atlanta GA Retail 264,880 $26.6

On50 Tampa FL Residential 193,547 $17.2

42 North Tampa FL Residential 157,200 $6.1

Resource America - Tanglewood Court Houston TX Residential 523,139 $4.4

Lincoln Pointe Aventura FL Residential 284 Units $40.0

Mervyn's Data Center Plano TX Data Center/Office 50,000 $15.5

Total 2,577,166 $938.3

Historical Portfolio Investments



47


Midwest

225 South Sixth Street Minneapolis MN Office 1,401,233 $250.1

Northland Industrial – Land Minneapolis MN Land N/A $0.2

UIRC Portfolio Chicago IL Industrial 1,166,968 $38.3

Laraway Land Parcels – 2015 Chicago IL Land N/A $18.9

Elaine Place Chicago IL Residential 175,550 $22.7

Millennium Bloomington IN Residential 625,550 $39.3

Automatic Lofts Chicago IL Residential 141,431 $41.6

Northland Industrial Brooklyn Park MN Industrial 356,176 $25.7

2040 Lofts Milwaukee WI Residential 213,483 $27.8

Laraway Crossing Joliet IL Industrial 849,564 $28.7

Randall Crossing Elgin IL Industrial 319,043 $19.3

Roseville Industrial Roseville MN Industrial 101,850 $17.4

Woods Mill Pointe St. Louis MO Office 79,616 $10.1

Laraway Land Joliet Il Land N/A $24.8

Crosstown Corp Center Eden Prairie MN Office 59,478 $9.5

Clayton Corporate Center Clayton MO Office 197,957 $31.8

Meridian Lakes I Aurora IL Office 75,000 $16.8

EDS Build to Suit Auburn Hills MI Office 202,000 $11.4

Crossroads Brookfield WI Office 104,000 $8.3

250 S. Gary Carol Stream IL Industrial 439,000 $16.2

545 N. Michigan Avenue Chicago IL Retail/Office 16,000 $14.6

Willow Lake Indianapolis IN Residential 230 Units $5.3

Total 6,523,899 $678.8



48


West

Alaska CargoPort Anchorage AK Industrial 112,823 $15.4

Infomart Portland Portland OR Industrial (Data Center) 102,867 $275.4

Infomart Silicon Valley San Jose CA Industrial (Data Center) 42,497 $139.9

Urban 5th San Diego CA Retail 17,462 $18.4

Pima Northgate Scottsdale AZ Office 138,751 $27.9

Plaza 360 Oakland CA Office 114,288 $26.3

1315 Lincoln Boulevard Los Angeles CA Office 23,557 $21.5

Playa Vista - Phase III Los Angeles CA Land N/A $29.0

Latitude 34 Los Angeles CA Office 301,642 $130.3

350 Bush and 500 Pine San Francisco CA Land N/A $82.0

11900 East Cornell Aurora CO Industrial 285,840 $54.6

Fox Media Center Los Angeles CA Office 486,673 $136.1

Resource America - The Summit Albuquerque NM Residential 166,660 $2.4

Anchorage Hangarport Anchorage AK Industrial 53,339 $5.4

Toyama Drive Sunnyvale CA Industrial 42,083 $13.6

Resource America - CA Los Angeles CA Residential 31,272 $2.9

Ontario Distribution Center Ontario CA Industrial 150,000 $10.3

Mira Loma (Wineville Building) Mira Loma CA Industrial 151,300 $12.5

Mira Loma (Cantu Galleano Building) Mira Loma CA Industrial 201,000 $16.7

Total 2,422,054 $1,020.6


ASB A l leg iance Real Es ta te FundLease Maturity and Renewal Upside

49

*As of 3/31/2019

**Residential and Self-Storage excluded from lease rollover as apartments and self-storage units typically have one-year leases such that rollover is essentially 100% each year.

***Only stabilized square feet (NCREIF definition).

The Fund’s near-term lease rollover is balanced and modest, and presents $27 million in NOI upside in aggregate.

REAL ESTATE FUND STABILIZED LEASE EXPIRATION SCHEDULE BY SF (COMMERCIAL)

Property Type Rentable SFWA Duration

(Yrs)*% Leased 2019 2020 2021 2022 2023 Thereafter

Industrial 4,240,725 6.9 96.4% 0.2% 2.5% 2.2% 4.8% 2.6% 34.5%

Office 3,184,772 6.1 93.3% 1.0% 3.3% 2.2% 2.0% 3.7% 22.4%

Retail 1,324,854 8.5 90.4% 0.5% 1.2% 0.8% 0.9% 1.9% 7.6%

Total 8,750,351 6.9 92.3% 1.7% 7.0% 5.1% 7.8% 8.2% 64.4%


ASB A l leg iance Real Es ta te FundLeverage Summary

50

Key Debt Statistics

• Total Principal: $1,495 million

− Property Level: $1,245 million

− Line of Credit: $250 million

• Average Duration

− Total: 5.1 years

− Ex-Revolver: 5.1 years

• Average Cost

− Total: 3.86%

− Ex-Revolver: 3.86%

• % Fixed-rate

− Total: 82%

− Ex-Revolver: 82%

T O T A L D E B T M A T U R I T Y S C H E D U L E *

*The revolver portion of the line of credit is excluded from the debt maturity schedule. The revolver balance is $0

as of 6/30/2019. The term loan balance of $250 million will mature March 2023.

46

144

181

53

169

305

99

60

93

250

$0

$100

$200

$300

2020 2021 2022 2023 2024 2025 2026 2027 2028

Mill

ions

Existing Loans Line of Credit: Term Loan

Prudent debt strategy characterized by staggered maturities and limited refinancing risk.



51

415 Broadway | New York City, NY


ASB A l leg iance Real Es ta te FundESG Policy

52

ASB Real Estate Investments (“ASBREI”) believes that socially responsible investments take into

consideration environmental, social and governance (“ESG”) issues which can positively impact long-term

performance and reduce risk. We realize that many of our clients, tenants and employees share this interest

with us of implementing practices and procedures that correlate with ESG rational and the fulfilment of our

responsibilities.

To align the firm’s actions with these sustainability concerns, ASBREI has committed to the following sustainability objectives.

• Environment

Reduce utility consumption at both the corporate and investment level.

• Social

Consider the impact of our corporate and investment-level operations on the well-being of our tenants, employees, contractors,

and others.

• Governance

Embrace corporate responsibility, accountability, fairness, and transparency in how we manage our relationships with clients and

investments.

• Resources

Empower an interdisciplinary ESG Team with the technology and resources it needs to consistently advance its ESG objectives.

• Reporting

Provide clients transparency and accountability on its ESG progress through annual reporting to GRESB.



53

333 Summer Street | Boston, MA


ASB A l leg iance Real Es ta te FundQuarterly Returns

54

Q U A R T E R L Y R E T U R N S ( P e r i o d s e n d i n g 6 / 3 0 / 1 9 )

9/30 12/31 3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31

1984 1985 1986 1987 1988

Allegiance Gross (%) 3.00 4.74 2.60 2.64 2.71 4.70 2.45 2.36 1.16 2.60 1.17 1.39 1.93 0.53 1.31 1.67 1.84 2.65

Allegiance Net (%) 2.75 4.49 2.35 2.39 2.46 4.45 2.20 2.11 0.91 2.35 0.92 1.14 1.68 0.28 1.06 1.42 1.59 2.40

1989 1990 1991 1992

Allegiance Gross (%) 2.03 2.25 2.23 1.95 1.54 0.60 1.72 1.05 1.62 1.42 1.04 -1.79 0.99 0.35 -0.85 0.69

Allegiance Net (%) 1.78 2.00 1.98 1.70 1.29 0.35 1.47 0.80 1.37 1.17 0.79 -2.04 0.74 0.10 -1.10 0.44

1993 1994 1995 1996

Allegiance Gross (%) 0.98 1.19 1.13 0.69 1.21 1.66 1.51 1.84 0.83 1.17 2.94 2.36 1.77 1.77 1.22 2.23

Allegiance Net (%) 0.73 0.94 0.88 0.44 0.96 1.41 1.26 1.59 0.58 0.92 2.69 2.11 1.52 1.52 0.97 1.98

1997 1998 1999 2000


Allegiance Net (%) 1.33 2.56 1.49 2.81 1.53 2.84 2.39 2.01 1.50 2.63 3.06 2.03 1.33 2.73 2.37 1.92

2001 2002 2003 2004


Allegiance Net (%) 3.32 1.99 2.15 1.86 1.12 0.90 1.01 0.67 1.13 1.46 2.98 4.77 2.72 2.34 4.49 2.79

2005 2006 2007 2008

Allegiance Gross (%) 2.43 5.32 3.69 6.05 5.36 3.59 3.77 4.28 1.33 5.08 5.94 2.52 2.55 0.10 -0.66 -6.39

Allegiance Net (%) 2.18 5.09 3.45 5.81 5.12 3.34 3.52 4.04 1.09 4.84 5.70 2.28 2.31 -0.14 -0.90 -6.63

2009 2010 2011 2012

Allegiance Gross (%) -13.49 -8.01 -4.58 -7.20 -0.37 3.90 9.54 3.21 6.72 4.47 3.04 5.34 3.33 2.59 3.36 2.63

Allegiance Net (%) -13.72 -8.24 -4.83 -7.45 -0.62 3.65 9.29 2.96 6.48 4.22 2.80 5.10 3.09 2.36 3.12 2.40

2013 2014 2015 2016


Allegiance Net (%) 2.37 2.14 4.78 2.84 2.51 2.41 3.61 3.40 2.53 4.96 2.45 5.40 1.34 1.10 1.54 0.55

2017 2018 2019

Allegiance Gross (%) 1.33 0.66 0.79 2.06 2.00 1.99 1.96 1.45 2.01 1.40

Allegiance Net (%) 1.10 0.43 0.56 1.83 1.76 1.76 1.73 1.22 1.78 1.16

1Assumes a 0.93% annualized fee for the most recent quarter, which is the weighted average of all current Fund holders, charged quarterly. Actual fees are used to calculate the Fund's net returns from

1991 to the present, and for periods before 1991, net returns have been calculated using a modeled fee based upon the highest stated fee at the time. Past performance is no guarantee of future results.

Inception was June 1, 1984.2Please see the ASB Core Real Estate Composite GIPS compliant presentation located in the Appendix section of this presentation.

All performance is presented gross of investment fees through 6/30/19, as of the Fund's Inception date of June 1984.

Past performance is not necessarily indicative of future results. The advisory fees and any other expenses the Fund may incur in the management of its investment advisory account will reduce client returns. Part II of ASB Capital Management's Form ADV describes the investment advisory fees.

On a net of fees basis, the Allegiance Fund returned an annualized 7.18% since inception; NCREIF's NFI-ODCE Value Weight Index returned 6.39% since inception.


ASB A l leg iance Real Es ta te FundAnnualized, Calendar Year Returns

55

A N N U A L I Z E D R E T U R N S ( P e r i o d s e n d i n g 6 / 3 0 / 1 9 )

1 YR 2 YR 3 YR 4 YR 5 YR 7 YR 10 YR 15 YR 20 YR

SINCE

INCEPT.

Allegiance Gross (%) 7.00 7.00 6.20 7.54 9.25 10.25 10.16 8.70 8.95 8.22

NFI-ODCE Gross (%) 6.41 7.42 7.57 8.62 9.76 10.52 9.88 8.01 8.35 7.43

Allegiance Net (%) 6.02 6.03 5.23 6.56 8.25 9.24 9.14 7.69 7.92 7.18

C A L E N D A R Y E A R R E T U R N S ( 1 9 8 5 - 2 0 1 8 )

1985 1986 1987 1988 1989 1990 1991 1992 1993

Allegiance Gross (%) 13.24 8.84 5.11 7.68 8.73 4.99 2.27 1.17 4.04

NFI-ODCE Gross (%) 9.36 6.73 6.74 7.32 6.71 1.41 -6.24 -5.49 0.55

Allegiance Net (%) 12.14 7.78 4.08 6.63 7.67 3.96 1.26 0.17 3.02

1994 1995 1996 1997 1998 1999 2000 2001 2002

Allegiance Gross (%) 6.37 7.48 7.17 9.49 10.14 10.60 9.68 10.71 4.79

NFI-ODCE Gross (%) 6.14 7.11 11.71 15.11 16.42 13.17 14.28 5.64 5.54

Allegiance Net (%) 5.33 6.43 6.12 8.42 9.07 9.53 8.61 9.64 3.75

2003 2004 2005 2006 2007 2008 2009 2010 2011

Allegiance Gross (%) 11.79 14.00 18.63 18.11 15.65 -4.55 -29.52 17.02 21.02

NFI-ODCE Gross (%) 9.28 13.06 21.39 16.32 15.97 -10.01 -29.76 16.36 15.99

Allegiance Net (%) 10.71 12.90 17.54 17.04 14.59 -5.45 -30.26 15.90 19.90

2012 2013 2014 2015 2016 2017 2018

Allegiance Gross (%) 12.46 13.72 13.52 17.28 5.56 4.92 7.61

NFI-ODCE Gross (%) 10.94 13.94 12.50 15.02 8.77 7.62 8.35

Allegiance Net (%) 11.43 12.67 12.47 16.20 4.60 3.97 6.63

1Assumes a 0.93% annualized fee for the most recent quarter, which is the weighted average of all current Fund holders, charged quarterly. Actual fees are used to calculate the

Fund's net returns from 1991 to the present, and for periods before 1991, net returns have been calculated using a modeled fee based upon the highest stated fee at the time.

Past performance is no guarantee of future results. Inception was June 1, 1984.2Please see the ASB Core Real Estate Composite GIPS compliant presentation located in the Appendix section of this presentation.

All performance is presented gross of investment fees through 6/30/19, as of the Fund's Inception date of June 1984.

Past performance is not necessarily indicative of future results. The advisory fees and any other expenses the Fund may incur in the management of its investment advisory account will reduce client returns. Part II of ASB Capital Management's Form ADV describes the investment advisory fees.

On a net of fees basis, the Allegiance Fund returned an annualized 7.18% since inception; NCREIF's NFI-ODCE Value Weight Index returned 6.39% since inception.


ASB A l leg iance Real Es ta te FundGIPS Compliance

56

ASB Capital Management LLC, ASB Real Estate Investments, ASB Allegiance Real Estate Fund

Year

Income

Return

Capital

Return TOTAL

NFI-ODCE

Index

Benchmark

TOTAL3

Income

Return

Capital

Return TOTAL

NFI-ODCE

Index

Benchmark

TOTAL3

Net Assets

(USD Millions)

External

Valuation Accounts

2009 2.7% -31.4% -29.5% -29.8% 1.8% -31.4% -30.3% -30.4% 1,076.538$ 100% 1 7,303.3$ 14.7%

2010 5.8% 10.7% 17.0% 16.4% 4.7% 10.7% 15.9% 15.3% 1,241.694$ 100% 1 8,077.1$ 15.4%

2011 5.2% 15.1% 21.0% 16.0% 4.2% 15.1% 19.9% 15.0% 1,640.820$ 100% 1 9,010.2$ 18.2%

2012 5.1% 7.0% 12.5% 10.9% 4.1% 7.0% 11.4% 9.8% 2,128.295$ 100% 1 12,833.3$ 16.6%

2013 4.3% 9.1% 13.7% 13.9% 3.3% 9.1% 12.7% 12.9% 3,174.002$ 100% 1 16,700.4$ 19.0%

2014 4.2% 9.0% 13.5% 12.5% 3.2% 9.0% 12.5% 11.5% 4,058.856$ 100% 1 19,391.9$ 20.9%

2015 3.5% 13.4% 17.3% 15.0% 2.5% 13.4% 16.2% 14.0% 5,050.916$ 100% 1 21,311.5$ 23.7%

2016 3.2% 2.3% 5.6% 8.8% 2.2% 2.3% 4.6% 7.8% 5,846.095$ 100% 1 23,589.4$ 24.8%

2017 3.4% 1.5% 4.9% 7.6% 2.5% 1.5% 4.0% 6.7% 5,839.066$ 100% 1 27,468.7$ 21.3%

2018 3.2% 4.3% 7.6% 8.3% 2.2% 4.3% 6.6% 7.4% 5,927.981$ 100% 1 25,028.5$ 23.7%

Annualized Since Inception Time-Weighted Return as of 3/31/20191: Annualized Since Inception Time-Weighted Return as of 3/31/20191:

6.1% 2.0% 8.2% 7.5% 5.1% 2.0% 7.2% 6.4%

Notes:

5) Actual fees are used to calculate the Fund's net returns from 1991 to the present, and for periods before 1991, net returns have been calculated using a modeled fee based upon the highest stated fee at the time.

ASB Capital Management LLC Schedule of Performance Results

ASB Core Real Estate Composite 2

January 1, 2009 through March, 2019

Year-End

ASB Core Real Estate Composite

YE Firm Total

Net Assets

(USD Millions)

Percent

of Firm's

Assets

1) Tracks returns for the NFI- ODCE Value- Weight index and the Fund since the Fund's inception in June 1984. Income and Capital Returns are based on 12/31/1984 reporting start date.

2) The ASB Core Real Estate Composite was formerly known as the ASB Allegiance Real Estate Fund Composite. The name change became effective 12/31/2013.

3) The ASB Allegiance Fund’s benchmark for performance is the NCREIF Fund Index - Open- End Diversified Core Equity (NFI- ODCE). This Index is a fund level capitalization- weighted, time- weighted return index and includes property

investments at ownership share, cash balances and leverage (i.e. returns reflect each member fund’s actual asset ownership positions and financing strategy). As of March 31, 2009, the Fund changed its benchmark from the NPI to the NFI-

ODCE.

4) Past performance is not necessarily indicative of future results.

Gross-of-Fees Returns Net-of-Fees Returns


ASB A l leg iance Real Es ta te FundGIPS Compliance

57

ASB Capital Management LLC, ASB Real Estate Investments, ASB Allegiance Real Estate Fund

Compliance Statement - ASB Capital Management LLC claims

compliance with the Global Investment Performance Standards

(GIPS®) and has prepared and presented this report in

compliance with the GIPS standards. ASB Capital Management

LLC has been independently verified for the period 12/01/99-

6/30/17.

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 ASB Core Real Estate Composite

has been examined for the periods 12/01/99-06/30/17. The

verification and performance examination reports are available

upon request.

Definition of the Firm - For the purposes of applying the GIPS

Standards, the firm is defined as ASB Capital Management LLC,

an independent registered investment adviser. The firm was

founded in 1983, and specializes in providing equity, fixed income

and real estate investment management to institutional

investors. The firm adopted the GIPS standards for all periods of

performance beginning 01/01/1993. The firm has chosen to be

GIPS verified as of 12/1/1999. The Firm exercises full discretion

over the selection, capitalization, asset management, and

disposition of investments in wholly-owned properties and joint

ventures. The firm maintains a complete list and description of

composites, which is available upon request.

The ASB Core Real Estate Composite - The ASB Core Real

Estate Composite includes a single open-end commingled real

estate equity fund managed by the Firm with a core investment

and risk strategy. Portfolio management invests in a portfolio of

properties located in major markets within the United States

diversified by property type. The Firm will target a moderate level

of leverage between 15% and 25% with a maximum allowable

level of 40%. The Firm may invest in properties with value-add

characteristics on a select basis. Real estate investments are

generally illiquid, and the investment outlook may change given

the availability of credit or other financing sources. This

composite is measured against the NFI- ODCE Value Weighted

Index.

The ASB Core Real Estate Composite was formerly known as the

ASB Allegiance Real Estate Fund Composite. The name change

became effective 12/31/2013. The composite creation date and

the Fund’s inception date are June 1984.

Valuation - Assets are valued quarterly by the Firm and

appraised at least annually by an independent Member of the

Appraisal Institute. Both the internal and the external property

valuations rely primarily on the application of market discount

rates to future projections of free cash flows (un-leveraged cash

flows) and capitalized terminal values over the expected holding

period for each property. Other valuation techniques, such as the

sales comparison approach and the replacement cost approach,

are also employed by appraisers as secondary estimators of

value. Property mortgages, notes, and loans are marked to

market using prevailing interest rates for comparable property

loans, if the terms of existing loans preclude the immediate

repayment of such loans. ASB maintains a GIPS Policy and

Procedures Manual that contains policies for valuing portfolios,

calculating performance, and preparing compliant presentations.

The manual is available upon request.

Calculation of Performance Returns - Returns presented are

denominated in United States dollars and are inclusive of

leverage. Composite returns are calculated on an asset-

weighted average basis using beginning-of-period values.

Returns include cash and cash equivalents and related interest

income. Income return is based on accrual recognition of earned

income. Returns are presented gross of management fees and

include reinvestment of income. Actual returns will be reduced by

investment advisory fees. Actual fees are used to calculate the

Fund's net returns from 1991 to the present, and for periods

before 1991, net returns have been calculated using a modeled

fee based upon the highest stated fee at the time. The collection

of fees produces a compounding effect on the total rate of return

net of management fees. As an example, the effect of

investment management fees on the total value of a client’s

portfolio assuming (a) quarterly fee assessment, (b) $1,000,000

investment, (c) portfolio return of 8% a year, and (d) 1.25%

annual investment advisory fee would be $13,057 in the first

year, and cumulative effects of $74,572 over five years and

$177,494 over ten years. The fee for individual clients with

investments greater than $5 million will have lower annual

investment advisory fees. As of 3/31/19, the average weighted

fee was 0.93%. For a client with a $50 million investment, the

annual investment advisory fee would be 0.85%.

Capital expenditures, tenant improvements, and lease

commissions are capitalized and included in the cost of the

property, are not amortized, and are reconciled through the

valuation process and reflected in the capital return component.

Income and capital returns may not equal total returns due to

chain-linking of quarterly returns. Annual returns are time-

weighted rates of return calculated by linking quarterly returns.

For the annualized since-inception time-weighted return, terminal

value is based on ending market value of net assets of the Fund.

Investment Management Fees - Fees are charged to accounts

with indirect interests in real estate development projects through

units of the Fund.

1.25% on the first $5 million

1.00% on the next $10 million

0.90% on the next $60 million

0.75% on the balance (over $75 million)

NCREIF Fund Index - Open-End Diversified Core Equity

Benchmark - As of March 31, 2009, the ASB Allegiance Fund’s

benchmark for performance is the NCREIF Fund Index - Open-

End Diversified Core Equity (NFI-ODCE) presented on a value-

weighted basis. This Index is a fund level capitalization-weighted,

time-weighted return index and includes property investments at

ownership share, cash balances and leverage (i.e. returns reflect

each member fund’s actual asset ownership positions and

financing strategy). As of March 31, 2009, the Fund changed its

benchmark from the NCREIF Property Index (NPI) to the NFI-

ODCE. The NPI only measures stabilized property returns, so the

NFI-ODCE provides a more comparable benchmark.



58

• This presentation is made on a confidential basis to a qualified

prospective investor. Prospective investors or other recipients of this

presentation may not use, reproduce or distribute or disclose this

information in any manner unless required by law. This presentation is

not to be considered a general solicitation under Regulation D of the U.S.

Securities Act of 1933, as amended. Prospective investors will be

required to deliver certain representations and warranties regarding its

eligibility to invest.

• Units of the ASB Allegiance Real Estate Fund, LP have not been

registered under the U.S. Securities Act of 1933, as amended, or the

securities laws of any other jurisdiction, not is such registration currently

contemplated. The units are being offered under the exemption provided

by Section 4(2) of the Securities Act and Regulation D promulgated

thereunder, and similar exemptions under the laws of other jurisdictions

where the offering is made. In addition, the ASB Allegiance Real Estate

Fund, LP is not registered under the U.S. Investment Company Act of

1940, as amended, and is relying on an exemption from the registration

requirements thereof.

• This presentation contains information regarding the ASB Allegiance Real

Estate Fund, LP. It does not purport to be complete and it is subject to

and in its entirety by reference to the Partnership Agreement, the

Subscription Agreement and such other documents, copies of which will

be provided to each qualified prospective investor.

• For Benefit Plan Investors: This information is provided to assist you in

your consideration of making an investment in ASB Allegiance Real

Estate Fund, LP. This information is not intended to render any

investment advice or recommendations. Your decision as to an

investment in ASB Allegiance Real Estate Fund, LP must be made by you

in consultation with your own advisors. ASB Allegiance Real Estate

Partners GP, LLC, ASB Capital Management, LLC and their affiliates

receive fees for managing the Fund and therefore cannot provide

impartial investment advice or otherwise act as your fiduciary in

connection with your investment decision.

ASB Allegiance Real Estate Fund - Granicus

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