Real Estate Investment Strategies

Appendix Actual gross returns in any given year may be lower than the Target Return. Even if the Target Return is met, actual returns to investors will be lower due to expenses, taxes, structuring considerations and other factors. In addition, the Target Return may be adjusted without notice to investors in light of available investment opportunities and/or changing market conditions. PIMCO believes that the Target Return is reasonable based on a combination of factors, including the Fund's investment team's general experience, the availability of leverage and financing at expected times, amounts, costs and other terms and an assessment of prevailing market conditions and investment opportunities. There are, however, numerous assumptions that factor into the Target Return that may not be consistent with future market conditions and that may significantly affect actual investment results. Such assumptions include (i) the ability to source and acquire attractively priced assets; (ii) the expected response of specific investments to market conditions; (iii) the availability of leverage for certain investments at expected terms; and (iv) PIMCO's outlook for certain global and local economies and markets as it relates to potential changes to the regulatory environment, interest rates, growth expectations, residential and commercial real estate or consumer fundamentals and the health of the economy. No representation or warranty is made as to the reasonableness of the assumptions made or that all assumptions used in calculating the Target Return have been stated or fully considered. Prospective investors reviewing the Target Return contained herein must make their own determination as to the reasonableness of the assumptions and the reliability of the Target Return. Actual results and events may differ significantly from the assumptions and estimates on which the Target Return is based. The Target Return reflects in part the measure of risk that the Fund's general partner expects to take with respect to Fund investments. The Fund may make investments for which the general partner's cash flow analysis indicates a higher or lower target return. Actual returns from an investment in the Fund over any given time horizon may vary significantly from the Target Return. This material contains the current opinions of PIMCO and such opinions are subject to change without notice. There can be no assurance that such opinions are or will remain accurate, or that other opinions or methodologies would not produce different results. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. None of the Fund, PIMCO or any of their affiliates shall have any duty to update any of the information presented herein. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. INDEXES/BENCHMARKS References to the MSCI US REIT Index and any other benchmark(s) referred to herein are for illustrative purposes only. Any such benchmarks are included merely to show general trends in the markets in the periods indicated and are not intended to imply that the Fund's portfolio will be similar to any such benchmarks, either in composition or element of risk or otherwise. The Fund will not attempt to track a benchmark and there is no guarantee that the Fund will meet or exceed any benchmark. The Barclays U.S. Corporate High-Yield Index the covers the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high-yield if the middle rating of Moody's, Fitch, and S&P is Ba1/BB+/BB+ or below. The index excludes Emerging Markets debt. The Markit CMBX index is a synthetic tradable index referencing a basket of 25 commercial mortgage-backed securities. The MSCI US REIT Index is a free float market capitalization weighted benchmark that is comprised of equity REIT securities that belong to the MSCI US Investable Market 2500 Index. The index is designed to cover about two-thirds of the value of the entire U.S. REIT market. It is not possible to invest directly in an unmanaged index. PIMCO 29

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