Ares US Real Estate Opportunity Fund III

COVID-19 Downturn Is Not Affecting All Property Sectors Equally Despite a broad correction in the real estate markets, property performance and values have diverged by asset type Indexed Public, Private Real Estate Prices (100 = January 2007) 160 140 120 100 80 60 40 20 Public and Private Real Estate Market Performance Since 2007 GFC enterertige Peak-to-Trough Pricing Public REIT Share Price: -68% (daily returns) Estimated Private Valuations: -33% 0 2009 2007 Sources: FTSE NAREIT, Green Street as of September 2020 2011 2013 Public Peak-to-Trough Pricing Public REIT Share Price: -35% (daily returns) Estimated Private Valuations: -11% COVID-19 2015 Private Confidential - Not for Publication or Distribution 2017 Although not as pronounced as the GFC, both the public and private real estate markets have experienced steep value declines post-COVID For illustrative purposes only. There is no assurance the above trends will continue. 2019 26 20% 10% 0% -10% -20% -30% -40% -50% Public REIT Pricing Impacts by Property Sector February 2020 Peak to Current -44% Hotel Retail -39% Office -33% Multifamily -32% Sources: FTSE NAREIT, Green Street as of September 2020 Student Housing REIT Composite -26% -18% -2% -2% Industrial Single-Family Rental Data Centers 10% Composite market-wide declines of 18% obscure a wide range of outcomes by property sector ARES

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