Ares US Real Estate Opportunity Fund III

How We are Positioned The AREOF strategy is purpose-built to navigate changing market conditions 1 We originally expected the AREOF III portfolio to be evenly balanced across acquisition, development and distressed transactions, with the opportunity to weight the portfolio towards distressed opportunities should we see more widespread/systematic corrections 2 3 We believe substantial available dry powder and a multi-year investment window will allow us an opportunity to capitalize on opportunities as they take shape 4 5 The anticipated correction has materialized 6 Team of 54 US investment professionals have deep experience investing in all property types across cycles, including periods of comparable displacement Real-time industry and market intelligence from Ares' corporate credit and private equity groups provides global insight into market movements and tenant behavior We believe AREOF and AREOF II are well positioned to weather the current environment AREOF and Related Vehicles is largely realized with two remaining assets and solid return visibility with $12.7mm of projected unrealized proceeds against $1.2bn realized (11)(12) AREOF II distributed proceeds of 90% capital called with no hospitality and minimal retail exposure in its eleven unrealized assets as of June 30, 2020 We believe AREOF III's existing portfolio of two closed investments is defensively positioned, and we are cautiously moving forward with three resilient in-closing investment opportunities 7 Based on Ares Real Estate Group's views as of August 31, 2020. However, the situation surrounding COVID-19 is fluid and developing rapidly. As such, our views are subject to change at any time. Performance information as of June 30, 2020. There is no guarantee or assurance investment objectives will be achieved. Projections and forward looking statements are not reliable indicators of future events and no guarantee or assurance is given that such activities will occur as expected or at all. Actual events or conditions are unlikely to be consistent with, and may differ materially from, those assumed Past performance is not indicative of future results. Please see pages 58 and 60 for the full AREOF II and AREOF track records. Please see endnotes on pages 65-66. ARES Confidential - Not for Publication or Distribution 34

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