Ares US Real Estate Opportunity Fund III slide image

Ares US Real Estate Opportunity Fund III

AREOF II & Related Vehicles - Detailed Summary of Investments Closed Investments as of June 30, 2020 ($ in millions) Unrealized Investments Gaylord High Point Land & Rockies Village Van Daele Inland Empire Portland Industrial Redevelopment District at Scottsdale Phase II Hudson Yards Multifamily Wellington Senior Housing RW50 RGC Mountain View Corporate Campus East III Merrill Brownstones 80 Flatbush Unrealized Subtotal ($ in millions) Partially Realized Investments 2nd Avenue Residences One South Halsted Partially Realized Subtotal ($ in millions) Realized Investments Pendry Hotel Gaylord Rockies Convention Center Montage Hotels & Resorts Residences at Kendall II Ritz-Carlton, Kapalua District at Scottsdale Phase I Parkside on A Realized Subtotal Total (Gross) Total (Net) Date of Investment Metro Market 4Q 2016 3Q 2017 3Q 2018 Q1 2019 2Q 2019 2Q 2019 2Q 2019 2Q 2019 3Q 2019 Q4 2019 Q4 2019 3Q 2016 1Q 2017 3Q 2015 Date of Investment Metro Market 4Q 2015 1Q 2016 2Q 2016 Denver 4Q 2016 Q4 2016 Los Angeles Portland Phoenix New York Miami Chicago 1Q 2018 San Francisco Date of Investment Metro Market Seattle Los Angeles New York Boston Chicago San Diego Denver Various Miami Maui Phoenix Boston Property Type Confidential - Not for Publication or Distribution Mixed-Use Multifamily Industrial Multifamily Multifamily Senior Housing Multifamily Mixed-Use Office Multifamily Mixed-Use Property Type Multifamily Multifamily Property Type Hotel Hotel Hotel Multifamily Hotel Multifamily Office Size 130 Acres 396 units 992,190 SF 284 units. 931 units 424 units 214 units 180 keys / 47,725 SF Office 155,000 SF 108 units 260 units/134,000 SF Commercial Size 390 units 492 units Size 317 keys 1,500 keys N/A 150 units 398 keys 332 units 246,765 SF Equity Committed (10) $4.3 35.0 25.4 18.8 162.8 37.7 27.7 3.5 18.9 10.3 42.3 $386.6 Equity Committed (10) $35.6 64.8 $100.4 Equity Committed (10) $23.0 112.5 10.2 4.1 36.1 28.0 14.2 $228.1 $715.1 58 Realized Projected Unrealized Proceeds(11) Proceeds(12) 0.0 0.0 0.6 0.0 0.0 0.0 0.1 0.0 0.0 0.1 0.0 $0.8 $32.0 52.4 $84.4 $32.0 271.3 24.0 6.7 73.7 $4.3 58.2 50.7 46.1 45.4 $503.7 $588.9 35.8 331.4 Realized Projected Unrealized Proceeds(11) Proceeds (12) 74.7 42.9 3.5 29.8 Realized Projected Unrealized Proceeds(11) Proceeds(12) 16.9 79.2 $722.8 $29.4 53.8 $83.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $0.0 $806.0 Pro Forma Fair Value(¹) Gross IRR(2)(5) 0% 16% 11% 13% 0% -48% 23% 0% -11% Gross IRR(2)(5) 18% Gross IRR(2)(5) 21% 45% 30% 49% 45% -9% 1.0x -5% 3% Pro Forma Fair Value(¹) 1.0x 28% 164% 42% Gross EM(2)(5) 30% 1.0x 22% 1.3x 1.2x 1.4x 19% 1.5x 18% 1.5x Pro Forma Fair Value(¹) 1.0x 0.8x 1.1x 1.0x 0.9x 1.0x Gross EM(2)(5) 1.5x Gross EM(2)(5) 1.4x 2.4x 2.3x 1.6x 2.0x 1.8x 3.2x 2.2x 1.5x As of June 30, 2020. Past performance is not indicative of future results. Please refer to endnotes on pages 65-66 for detailed information regarding the methodology used to calculate the performance information in this table. Please refer to page 67 for a Summary of Vehicle Definitions. 1.4x Pro Forma Projected(¹) Gross IRR(2)(4) Gross EM(2)(4) 0% 18% 18% 16% 17% 14% 17% 0% 13% 19% Gross IRR(2)(4) 17% Gross IRR(2)(4) 21% 45% 30% 49% 45% 18% 16% Pro Forma Projected(¹) 28% 1.0x 164% 42% 26% 1.7x 19% 1.8x 1.9x 2.0x 18% 17% Pro Forma Projected(¹) 2.0x 1.6x 1.0x 1.6x 1.7x 1.9x 1.9x Gross EM(2)(4) 1.7x 1.6x 1.7x Gross EM(2)(4) 1.4x 2.4x 2.3x 1.6x 2.0x 1.8x 3.2x 2.2x 2.0x 1.7x ARES
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