Ares US Real Estate Opportunity Fund III

"New World" Pipeline Reflects COVID-19 Implications Anticipated Equity Commitment ($mm)* Transaction Location / Type Property Type Special Situation Development of Core Asset Special Situation Special Situation San Diego / Hospitality Los Angeles, CA / Multifamily Boston, MA / Industrial Chicago / Industrial $25 $35 $68 $22 ■ ■ ■ Investment Summary & Rationale Preferred equity recapitalization of a distressed loan at a discount to par on a legacy asset with a repeat sponsor Develop a core-quality, pre-sold multifamily project for a liquid repeat purchaser Aggregation of a diversified portfolio of industrial assets in the Boston MSA through the recapitalization of an existing portfolio, selective development, and add-on acquisitions Opportunity to form a programmatic JV with a strong local sponsor to aggregate a portfolio of existing light industrial assets in infill locations across the Chicago MSA; JV to be seeded by an initial portfolio totaling 1.1m SF ■ ■ ■ Value Driver / COVID-19 Pricing Implication Last dollar basis represents a ~35% discount relative to the 2015 construction cost Up-front hard deposit would potentially significantly reduce last-dollar basis Value creation by assembling a diverse portfolio of scale in a highly fragmented, institutionally attractive market Discount of 25-50 bps to entry cap rates relative to pre- COVID pricing Based on Ares Real Estate Group's current observations of the market as of September 23, 2020. However, the situation surrounding COVID-19 is fluid and developing rapidly. As such, our views are subject change at any time. 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. Information related to any identified opportunities does not represent an actual investment executed by AREOF III or any other Ares fund or investment vehicle and is only provided as an illustration of the type of investments that potentially may be available. The consummation of any of these depends upon, among other things, one or more of the following: satisfactory completion of our due diligence investigation of the prospective investments, our acceptance of the terms and structuring of such investment and the execution and delivery of satisfactory transaction documentation. There can be no assurance that any of these investments will be consummated, perform as expected, or avoid significant losses. ARES Confidential - Not for Publication or Distribution 46 *Anticipated Equity Commitment represents the amount of equity that the General Partner intends for the Fund to invest in the deal after the participation by a joint venture partner, co-investor or other type of investor. Accordingly, the initial equity commitment to the investment will likely be greater at the time of investment and is expected to be reduced.

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