Real Estate Investment Strategies

The investment opportunity continues to evolve Investment backdrop BRAVO strategy • 2011 BRAVO 2013 BRAVO II Banks are severely undercapitalized and face significant deleveraging pressure Largest portfolio sales are U.S. residential NPLs · Significant uncertainty regarding the trajectory of future U.S. home prices • Monetary policy driving demand for safe yield such as core CRE Real estate fundamentals generally improving, with greater dispersion across Europe • Increasing pace of bank deleveraging and non-core business sales suggests building regulatory pressures Capitalize on bank deleveraging Refer to Appendix for additional investment strategy and risk information. PIMCO Today BRAVO III • • . • Effectiveness of monetary policy is waning Dislocation emerging amidst growing political uncertainty • Supply and demand for credit is unbalanced in select markets as banks continue to reduce balance sheet • Traditional lenders' business models continue to retreat in the face of regulatory and market pressures Position for a recovery in real estate fundamentals Do what banks can't or won't do 5

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