University of Connecticut March 28, 2009 Tiffany Burns Gherlone GENERALLY ACCESSIBLE DRAFT

1 Table of Contents SECTION 1 Research organization 2 SECTION 2 US market review 8

SECTION 1 Research organization

DRAFT 3 Investment process  All key business units have representation on the investment committee  Portfolio managers are the internal agents of the client  Research provides input to the setting of portfolio and investment strategies  “Enhanced indexing” is used to set portfolio strategy framework for core portfolios  Acquisition team sources prospective investments and champions the underwriting  Multidisciplined approach towards acquisition and disposition  Asset managers are involved throughout the acquisition process and are responsible for delivering proforma performance  Portfolio managers direct portfolio and fine- tune/rebalance as needed Source:UBS Global Asset Management, Global Real Estate Research.

DRAFT 4 Ongoing functional support  Distribute and communicate research information to all business units  Support portfolio/asset management in portfolio analysis – Attribution analysis – Performance reporting/benchmarking – Back-testing – Diversification analysis  Provide market research for acquisition/disposition – Member of every acquisition team – Integrated in disposition decision making  Assist Client Service and provide response to ad hoc requests

DRAFT 5 Research: Data/information and online systems  Full line of economic, demographic, capital markets and real estate market data  Research on Demand delivers market and submarket level information to the desktops of all UBS Global Asset Management, Global Real Estate-US professionals  Moody’s Economy.com  Axiometrics  Reis Reports  Torto Wheaton Research  CoStar  MPF  NCREIF  UBS Equity Analysts’ Reports  Real Capital Analytics  Morningstar  DTZ  Miscellaneous others

DRAFT 6 Research on demand

DRAFT 7 Investment objectives and philosophy  Enhance returns: – Recognize long-term economic and real estate trends – Under- or over-allocate to property types and regions depending on outlook – Target favorably priced markets – Source and underwrite best investments in targeted markets – Manage each investment as an operating business  Mitigate risks: – Minimize downside risk through investment selection and detailed underwriting – Diversify portfolios – Perform regular hold-sell analysis

SECTION 8 US market review

DRAFT 9 Absorption, completions and vacancy rates Apartment, office, industrial and shopping center absorption, completion and vacancy Source:UBS Global Asset Management, Global Real Estate Research based on data obtained from Torto Wheaton Research ad Reis Reports as of 31 December Shaded area indicates forecast data.

DRAFT 10 Commercial property fundamentals Source: UBS Global Asset Management, Global Real Estate Research based on data obtained from Torto Wheaton Research and Reis Reports as of 31 December US-I RD280508

DRAFT 11 Relative supply Source: UBS Global Asset Management, Global Real Estate Research based on data obtained from TWR and REIS as of March Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance. New supply as percent of inventory

DRAFT 12 Disclaimer This presentation is for informational purposes only and is not a recommendation to buy or sell any securities or make any investments. Segments of this presentation contain information relating to future prospects that are "forward looking statements", which are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, but are not necessarily limited to, forecasts of revenues and expenses, lease renewals, capital expenses, market rent changes, discount rates and capitalization rates. The opinions expressed are a reflection of our best judgment at the time the report is compiled. UBS does not undertake to update information contained in this presentation, except in future presentations of a similar nature. This material supports the presentation(s) given. It is not intended to be read in isolation and may not provide a full explanation of all the topics that were presented and discussed. Care has been taken to ensure the accuracy of the content, but no responsibility is accepted for any errors or omissions. GL-I RD050308