BENCHMARKREAL ESTATESCTR INDEXES

SCTR℠ Indexes provide: • Asset class diversification of real estate• Liquidity of stock • Direct access to property sectors

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The SCTR℠ series of indexes solve the market conundrum of not having direct access

to an investible real estate sector of choice.

Not All Real Estate is Created Equal

Real Estate SCTRs℠ provide tailored solutions for commercial real estate investment management.

Three index versions:

• Total Return• Price Return• Net Return

Benchmark Data & Infrastructure Real Estate SCTR℠

Benchmark Retail Real Estate SCTR℠

Benchmark Industrial Real Estate SCTR℠

Benchmark Hotel & Lodging Real Estate SCTR℠

Benchmark HealthcareReal Estate SCTR℠

Benchmark OfficeReal Estate SCTR℠

Benchmark Apartment & Residential Real Estate SCTR℠

Benchmark Net LeaseReal Estate SCTR℠ Index

Real Estate SCTR℠ Indexes

Each SCTR℠ Index is comprised of large real

estate companies, from C-Corporations to Real

Estate Investment Trusts, which are dominant in

their respective property sectors. Fierce

competition has led to most blue-chip real estate

companies, including REITs, to specialize in both

sector and locations in order to better serve their

tenants and shareholders.

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Advantages of SCTRs℠

“REITs have provided that diversification benefit because their underlying returns are driven by the real estate market cycle, which is very different from the business cycle that drives the returns of most other companies in the stock market” – Brad Case,

Real Estate SCTR℠ Indexes

Diversification: Public real estate has provided a diversification benefit that has enabled investors to reduce the volatility of their overall portfolio without paying a cost in the form of lower returns.

Listed Real Estate Equities Provide Optimal Exposure to Real Estate:Correlation and risk-adjusted return metrics demonstrate that listed equity REITs provide optimal exposure to the real estate asset class according to CEM Benchmarking (Asset Allocation and Fund Performance of Defined Benefit Pension Funds in the United States, November 1, 2017).

Daily Liquidity: Allows investors to take or adjust positions quickly and efficiently by buying and selling positions corresponding to the weights of all constituents which are traded on liquid public markets such as NYSE & Nasdaq.

Institutional Direct Access: Property sector returns differ over time. Each SCTR provides direct access to institutional real estate across an entire property sector, diversified over many geographic areas and management teams, without having to invest directly in properties or with a real estate equity manager.

SCTRs give market participants access to institutional management teams familiar with a particular sector’s idiosyncrasies and supply/demand issues. Sector focusedteams are better able to navigate their competitive landscape. They have established:

Dominant position within their primary property sector Strong management Sound capital structure Key tenant and leasing relationships

Institutional Real Estate Management

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Real Estate SCTR℠ Indexes

Portfolio Application & Uses

Strategic Real Estate Investment: Investors of all sizes can deploy their capital rapidly toget stronger (risk-adjusted) total returns without sacrificing liquidity and low transactioncosts. Furthermore, investors can use SCTRs as a cash replacement.

Risk Management & Hedging: SCTRs can help prevent “overspending” of risk by

efficiently constructing portfolios in relation to achievable return. For example,

investment products indexed to Benchmark Real Estates indices will enable investors

with large positions in a particular segment of the real estate market to hedge their

over-exposure and reduce their real estate portfolio’s concentration risk.

Tactical Asset Allocation: Investors can adjust positions quickly and efficiently by buyingand selling positions corresponding to the constituents and weights of the appropriateindices, all of which are traded in liquid listed markets.

Each property type has its own set of investment characteristics, including individualeconomic cycles and risk factors, competitive threats, and growth potential. RealEstate SCTRs℠ provide tailored solutions for commercial real estate investmentmanagement. There is significant dispersion of market multiples (Share Prices /FundsFrom Operations) and returns between the property sectors.

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Real Estate SCTR℠ Indexes

Index Names and Symbols

Index Symbol Index Name

DESKSCPR Benchmark Office Real Estate SCTR℠ Index

DESKSCTR Benchmark Office Real Estate SCTR℠ Total Return Index

DESKSCNR Benchmark Office Real Estate SCTR℠ Net Total Return Index

HOTLSCPR Benchmark Hotel & Lodging Real Estate SCTR℠ Index

HOTLSCTR Benchmark Hotel & Lodging Real Estate SCTR℠ Total Return Index

HOTLSCNR Benchmark Hotel & Lodging Real Estate SCTR℠ Net Total Return Index

INDSSCPR Benchmark Industrial Real Estate SCTR℠ Index

INDSSCTR Benchmark Industrial Real Estate SCTR℠ Total Return Index

INDSSCNR Benchmark Industrial Real Estate SCTR℠ Net Total Return Index

NNNLSCPR Benchmark Net Lease Real Estate SCTR℠ Index

NNNLSCTR Benchmark Net Lease Real Estate SCTR℠ Total Return Index

NNNLSCNR Benchmark Net Lease Real Estate SCTR℠ Net Total Return Index

PADSCPR Benchmark Apartments & Residential Real Estate SCTR℠ Index

PADSCTR Benchmark Apartments & Residential Real Estate SCTR℠ Total Return Index

PADSCNR Benchmark Apartments & Residential Real Estate SCTR℠ Net Total Return Index

RTLSCPR Benchmark Retail Real Estate SCTR℠ Index

RTLSCTR Benchmark Retail Real Estate SCTR℠ Total Return Index

RTLSCNR Benchmark Retail Real Estate SCTR℠ Net Total Return Index

RXRESCPR Benchmark Healthcare Real Estate SCTR℠ Index

RXRESCTR Benchmark Healthcare Real Estate SCTR℠ Total Return Index

RXRESCNR Benchmark Healthcare Real Estate SCTR℠ Net Total Return Index

SRVRSCPR Benchmark Data & Infrastructure Real Estate SCTR℠ Index

SRVRSCTR Benchmark Data & Infrastructure Real Estate SCTR℠ Total Return Index

SRVRSCNR Benchmark Data & Infrastructure Real Estate SCTR℠ Net Total Return Index

Index data available on Bloomberg, FactSet, Nasdaq, and Benchmark Historical performance back to March 16, 2007 Index calculation by Nasdaq

Main drivers for each real estate SCTR:

Macro Forces: Property Specific Issues:

• Market cap rates• Supply / demand conditions• Nearby properties competition

• Economy• Employment growth• Interest rates• Inflation• Consumer & business spending

Real Estate Forces:

• Location• Lease revenues• Property expenses• Occupancy rates• Prevailing market rental rates• Tenant quality & replacement

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