The Start of a New Cycle in Real Estate? Ian Goltra Portfolio Manager, Forward

Who is Forward? · Independent, privately owned firm founded in 1998 · Managing $5.7 billion in assets* · Diverse menu of differentiated, outcome- oriented products · Specialized investment expertise delivered via both internal portfolio management and strategic sub-advisory partnerships Asset Allocation as of September 30, 2012 *As of September 30, 2012 Product Categories We Work With · Bank Trust Departments · Financial Advisors · Wealth Advisors & Platforms · Foundations & Endowments · Investment Consultants · Family Offices · Retirement Plans

Our Real Estate Team Managing a total of $2.2 Billion in real estate fund assets Joel Beam PM, Select Income Fund Co-Lead PM Real Estate Fund Ian Goltra PM, Real Estate Long/Short Fund Co-Lead PM Real Estate Fund James Clary Senior Analyst, Global Infrastructure David McGanney, Christina Perry Trading Aaron Visse PM, Global Infrastructure Michael McGowan PM, International Real Estate Fund Hwee-See Teng Associate, International Real Estate As of December 31, 2012 James Clary is a registered representative of ALPS Distributors, Inc.

Aggregate Supply: Near Record Lows Source: Citigroup As of 9/30/12

Retail Supply: Lowest in Recent Decades Source: Citigroup As of 9/30/12

New Office Supply: Very Low, Good for Pricing Source: Citigroup As of 9/30/12

Industrial Supply: Limited New Construction Source: Citigroup As of 9/30/12

Apartments Supply: Near Multi-Decade Lows Source: Citigroup As of 9/30/12

Lodging Supply: Relatively Low But Picking Up Source: Citigroup As of 9/30/12

Reasonable Job Growth Should Drive Demand For Commercial Real Estate Source: Bureau of Labor Statistics, as of November 30, 2012

Demand: Net Absorption Positive for Several Quarters (Leased minus Vacated SF) As of 9/30/12 Source: REIS, Mortgage Bankers Association

Quarterly Issuance of CMBS & CDOs As of 9/30/12

Aggregate CMBS: More Than 25% Below 2007 Peak Source: Wells Fargo Securities, LLC and Intex Solutions, Inc. As of 9/30/12

Life Insurance Companies Have Resumed Lending As of 9/30/12

Commercial Property Sales Volumes are Picking Up Source: Real Capital Analytics. As of 9/30/12

The Profitability of Owning Real Estate is Projected to Grow Source: Green Street Advisors, Inc.

The Profitability of Owning Real Estate is Projected to Grow Source: Green Street Advisors, Inc. Actual through 12/31/11

Commercial Property Price Index: Substantial Price Recovery Across Sectors Source: Green Street Advisors, as of 12/31/12

REITs by Property Type: 159 Companies, $627 Billion Equity Market Cap Source: National Association of Real Estate Investment Trusts (NAREIT) as of 12/31/12

Questions and Discussion

Important Information Investing involves risk, including possible loss of principal. The value of any financial instruments or markets mentioned herein can fall as well as rise. Past performance does not guarantee future results. This material is distributed for informational purposes only and should not be considered as investment advice, a recommendation of any particular security, strategy or investment product, or as an offer or solicitation with respect to the purchase or sale of any investment. Statistics, prices, estimates, forward-looking statements and other information contained herein have been obtained from sources believed to be reliable, but no guarantee is given as to their accuracy or completeness. All expressions of opinion are subject to change without notice.