The Start of a New Cycle in Real Estate?

Ian GoltraPortfolio 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 TeamManaging a total of $2.2 Billion in real estate fund assets

Joel BeamPM, Select Income

FundCo-Lead PM

Real Estate Fund

Ian GoltraPM, Real Estate Long/Short Fund

Co-Lead PMReal Estate Fund

James ClarySenior Analyst,

Global Infrastructure

David McGanney,

Christina PerryTrading

Aaron VissePM,

Global Infrastructure

Michael McGowan

PM, InternationalReal Estate Fund

Hwee-See Teng

Associate,International Real

Estate

As of December 31, 2012James Clary is a registered representative of ALPS Distributors, Inc.

Aggregate Supply: Near Record Lows

Source: CitigroupAs of 9/30/12

Retail Supply: Lowest in Recent Decades

Source: CitigroupAs of 9/30/12

New Office Supply: Very Low, Good for Pricing

Source: CitigroupAs of 9/30/12

Industrial Supply: Limited New Construction

Source: CitigroupAs of 9/30/12

Apartments Supply: Near Multi-Decade Lows

Source: CitigroupAs of 9/30/12

Lodging Supply: Relatively Low But Picking Up

Source: CitigroupAs 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 9/30/12Source: 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 Estateis Projected to Grow

Source: Green Street Advisors, Inc.

The Profitability of Owning Real Estateis 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.