2Q2018 Real Estate Performance

City of Phoenix Employees’ Retirement System (COPERS)

Data as of June 30, 2018

Portfolio Overview

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Note: Subsequent to June 30, 2018, COPERS approved commitments to Ascentris Value Add Fund III ($25 million) and RECAP V ($25 million).

InvestmentCOPERS

CommitmentStructure

Investment Period

ExpirationCommitment

Unfunded Commitment % Funded 1 Status 2

Morgan Stanley Prime 3Q 2006 Open N/A $90,500,000 $0 100.0% StabilizedJPMorgan SPF 2Q 2007 Open N/A $87,380,529 $0 100.0% StabilizedTotal Core Portfolio $177,880,529 $0 100.0%

RECAP II 3Q 2009 Closed Expired $9,000,000 $706,242 92.2% LiquidatedJDM Partners I 1Q 2010 Closed Expired $20,000,000 $551,724 97.2% HarvestingTA Realty IX 2Q 2010 Closed Expired $9,000,000 $0 100.0% Nearly LiquidatedRECAP III 1Q 2012 Closed Expired $30,000,000 $6,952,802 76.8% Nearly LiquidatedWheelock Street I 2Q 2012 Closed Expired $20,000,000 $3,724,018 81.4% Nearly LiquidatedNorthwood Series IV 1Q 2014 Closed 2Q 2019 $20,000,000 $7,216,597 63.9% HarvestingWheelock Street II 3Q 2014 Closed Expired $30,000,000 $9,530,095 68.2% HarvestingNorthwood Series V 1Q 2015 Closed 2Q 2020 $30,000,000 $7,808,180 74.0% InvestingRECAP IV 1Q 2015 Closed Expired $30,000,000 $9,622,971 67.9% InvestingHSI V 2Q 2016 Closed 3Q 2019 $25,000,000 $15,635,165 37.5% InvestingSC Core Fund 3Q 2016 Closed 2Q 2020 $30,000,000 $16,511,194 45.0% InvestingWheelock Street V 4Q 2016 Closed 4Q 2020 $25,000,000 $17,326,206 30.7% InvestingFocus Senior Housing I 2Q 2017 Closed 2Q 2021 $25,000,000 $23,015,771 7.9% InvestingHammes Partners III 2Q 2017 Closed 2Q 2021 $25,000,000 $25,000,000 0.0% Recently ClosedTotal Non-Core Portfolio $328,000,000 $143,600,965 56.2%Total Portfolio $505,880,529 $143,600,965 71.6%

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Performance Summary

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Investment Market Value% of RE Portfolio % Funded 1 % Realized3 SI IRR (Gross) 4 SI IRR (Net) 5

Net Equity

Multiple 6

Morgan Stanley Prime $98,291,312 28.3% 100.0% 37.7% 6.3% 5.3% 1.60xJPMorgan SPF $94,818,747 27.3% 100.0% 30.9% 4.9% 4.2% 1.45x

$193,110,059 55.6% 100.0% 34.5% 5.6% 4.8% 1.53x

RECAP II $0 0.0% 92.2% 100.0% 22.8% 15.0% 1.30xJDM Partners I $27,218,474 7.8% 97.2% 28.9% 10.8% 9.6% 1.94xTA Realty IX $55,184 0.0% 100.0% 99.6% 13.2% 10.4% 1.60xRECAP III $6,506,449 1.9% 76.8% 82.8% 13.0% 9.4% 1.19xWheelock Street I $3,844,428 1.1% 81.4% 90.1% 36.3% 25.4% 1.72xNorthwood Series IV $20,539,043 5.9% 63.9% 32.4% 18.3% 12.8% 1.34xWheelock Street II $20,076,678 5.8% 68.2% 41.9% 29.5% 18.9% 1.42xNorthwood Series V $25,832,179 7.4% 74.0% 12.5% 8.5% 6.1% 1.14xRECAP IV $19,749,425 5.7% 67.9% 14.4% 11.9% 6.8% 1.12xHSI V $7,625,994 2.2% 37.5% 19.6% 15.7% -4.3% 0.97xSC Core Fund $13,820,639 4.0% 45.0% 3.4% 4.7% 4.2% 1.06xWheelock Street V $7,191,114 2.1% 30.7% 0.0% N/A N/A N/AFocus Senior Housing I $1,597,553 0.5% 7.9% 0.0% N/A N/A N/AHammes Partners III $0 0.0% 0.0% N/A N/A N/A N/A

$154,057,160 44.4% 56.2% 50.1% 15.8% 11.5% 1.33x$347,167,219 100.0% 71.6% 42.5% 7.7% 6.2% 1.42x

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Total Core Portfolio

Total PortfolioTotal Non-Core Portfolio

Non

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Notes: - Sub-Portfolio and Total Portfolio composite performance figures include data from liquidated investments not shown in table.- Subsequent to June 30, 2018, COPERS approved commitments to Ascentris Value Add Fund III ($25 million) and RECAP V ($25 million).

Performance Summary

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2Q2018 1-Yr 3-Yr 5-Yr SICore 2.0% 8.6% 9.8% 11.8% 7.8% 4.8% 1.53x

Non-Core 0.5% 12.5% 11.4% 12.0% 11.3% 11.5% 1.33xTotal Portfolio 1.4% 10.3% 10.5% 12.0% 8.3% 6.2% 1.42x

NCREIF ODCE 2.1% 8.4% 9.4% 11.0% 6.3% - -

Net IRR 4 Net EM 5Time-Weighted Returns (Gross)

Diversification

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Portfolio is well diversified by both Geography and Property Type Portfolio will continue to benefit from international diversification as funds with an

International focus (HSI V, SC Core, RECAP IV) continue to call capital Exposure to “niche” property types like medical office buildings and senior housing will

increase as capital continues to be called in Focus Senior Housing Fund I and Hammes III

Global United States

Leverage Profile

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Very modest use of leverage across the portfolio

Non-Core Portfolio LTV Ratio of less than 50% reflects a focus on managers and strategies that can perform without excess leverage risk

Total Portfolio Loan-toValue (LTV) 7: 35.7%Core Portfolio LTV: 20.2%Non-Core Portfolio LTV: 48.1%

Weighted-Average Interest Rate: 4.2%

Fee Summary 8

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Gross-net return spread for 2Q2018 is lower than historical average

Negative Incentive Fees for the quarter are primarily due partial reversal of prior incentive fee accruals in Northwood Series IV & V

Type 2Q2018Quarterly

Avg.AssetMgmt. 0.33% 0.29%

Incentive -0.01% 0.10%

Other 0.00% 0.00%Total 0.33% 0.39%

RE Portfolio Fees(% of Market Value)

Subsequent Events

Below are some key portfolio updates that occurred subsequent to the end of 2Q2018:

3Q2018 Core Portfolio Flash Returns:

JP Morgan SPF: +1.8% (gross) Morgan Stanley Prime: +2.2% (gross)

Focus Senior Housing I

The fund acquired San Marino, a 238-unit senior housing facility located in Westminster, Colorado in September and is expected to close on the acquisition of Summit of Uptown, a 153-unit facility located in Park Ridge, Illinois in October.

HSI Fund V

The fund issued capital calls totaling approximately $2.5 million to COPERS to fund the acquisition of a land parcel in São Paulo for the development of three (3) office towers with total leasable area of 1.4 million square feet.

Wheelock Street Real Estate Fund II

The fund expects substantial completion of the Seaglass building of Bonita Bay Condos in 3Q2018 and is actively marketing the Marriott Mission Valley investment for sale.

Wheelock Street Real Estate Fund V

The fund issued a capital call for $80 million in August to fund the acquisition of five (5) assets, including a multifamily property in Boca Raton, Florida and a land parcel for a new multifamily development in South Boston, Massachusetts. 8

Definitions & Footnotes

1 Commitment Funded Percentage (“% Funded”) – The percentage of the investor’s commitment that has been called by the manager to date, less any capital returned during the investment period that is deemed to be recallable.

2 Investment Status Definitions:

Recently Closed-Investment is awaiting first capital call designated for investment purposes

Investing- Investment actively making commitments to new underlying investments; within stated investment period

Stabilized- Investment is fully invested and unlikely to make near-term return of capital distributions

Harvesting- Investment is actively divesting

Nearly Liquidated- Investment is substantially divested of assets (typically > 80% realized)

Liquidated- Investment has divested of all assets and either holds cash or no balance at all

3 Realization Percentage (“% Realized”) – The percentage of an investment’s cumulative distributions to date relative to the total value of the fund, measured as a sum of the cumulative distributions to date and the remaining investment value.

4 Since Inception Gross Internal Rate of Return (“SI-IRR GROSS”) – Reflects the implied discount rate equating the present value of an investment’s cash outflows and the remaining market value to the present value of the investment’s cash inflows, excluding any impact of fees charged or accrued.

5 Since Inception Net Internal Rate of Return (“SI-IRR NET”) - Reflects the implied discount rate equating the present value of an investment’s cash outflows and the remaining market value to the present value of the investment’s cash inflows, accounting for the impact of fees.

6 Net Equity Multiple (“NET EM”) – The sum of cumulative distributions and remaining investment value divided by total paid-in-capital, accounting for the impact of fees.

7 Loan-to-Value Ratio (“LTV %”) – Ratio of all outstanding direct debt obligations divided by the fair value of the fund’s gross real estate asset value.

8 Fee Summary – Fees percentages shown reflect fees paid relative to beginning portfolio market value.

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Disclaimer of Warranties and Limitation of Liability

This document was prepared by Alignium, LLC (“Alignium”) and includes information and data from some or all of the following sources: investment managers, custodian banks, client staff, specialty investment consultants, actuaries, plan administrators/record-keepers, index providers, as well as other third-party sources as directed by the client or as we believe necessary or appropriate. Alignium makes no warranties and disclaims responsibility for the accuracy or completeness of information or data provided or methodologies employed by any external source. Alignium has taken reasonable care to ensure the accuracy of the information or data but disclaims responsibility for the accuracy of information or data received from outside sources. This document is provided for the client’s internal use only and does not constitute a recommendation by Alignium or an offer of, or a solicitation for, any particular security and it is not intended to convey any guarantees as to the future performance of the investment products, asset classes, or capital markets.

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