Ares US Real Estate Opportunity Fund III
Performance Notes to Ares Real Estate Group (Page 10)
PERE 100: Ares ranked 16th out of 100. Ranking applies to the Ares Real Estate Group related to selected funds managed therein. The PERE 100 measures equity raised between January 1,
2015 and March 31, 2020 for direct real estate investment through closed-ended, commingled real estate funds and co-investment vehicles that invest alongside these funds. The vehicles
must give the general partner discretion over capital and investment decisions and excludes club funds, separate accounts and joint ventures where the general partner does not have
discretion over capital and investments. Also excluded are funds with strategies other than real estate value-added and opportunistic (such as core and core-plus), funds not directly
investing in real estate (such as fund of funds and debt funds) and funds where the primary strategy is not real estate-focused (such as general private equity funds). Ares did not pay a
participation or licensing fee in order to be considered for the PERE 100 ranking.
Fitch Ratings assigned a commercial real estate loan level special servicer rating of 'CLLSS2-' to Ares Commercial Real Estate Servicer LLC ("ACRES") as of July 13, 2020. To be considered for a
Fitch rating, Ares paid Fitch a standard, contracted fee for initial and ongoing evaluation. The rating assigned by Fitch Ratings was solicited and assigned or maintained at the request of the
rated entity/issuer or a related third party. Fitch Ratings assigns ratings to commercial mortgage special servicers on a scale ranging from Level 1 through Level 5, each of which are
described below:
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Level 1 Servicer Rating: Servicers demonstrating the highest standards in overall servicing ability.
Level 2 Servicer Rating: Servicers demonstrating high performance in overall servicing ability.
Level 3 Servicer Rating: Servicers demonstrating proficiency in overall servicing ability.
Level 4 Servicer Rating: Servicers lacking proficiency due to a weakness in one or more areas of servicing ability.
Level 5 Servicer Rating: Servicers demonstrating limited or no proficiency in servicing ability
Notes to AREOF III Strategy Construction and Diversification (Page 21)
*Pie charts created from the sum of equity committed or anticipated equity committed to the two transactions closed and the seven transactions in-closing as outlined on pages 38, 40, 42, 43,
44, and 45. These are; 1425 New York Avenue NW (Office, East), Tropical Logistics Park (Industrial, West), National Ground Lease (Mixed-Use, National), Multifamily Development Option
(Multifamily, East), Project LaGrange (Industrial, National), Washington, D.C. Office (Office, East), Texas A&M Student Housing (Student Housing, South), Single Family Portfolio (Single-Family
Residential, National) and Industrial JV (Industrial, National). 'Uncommitted' represents potential capital uncommitted to transactions assuming a fund size of $1.5 billion.
Notes to AREOF III Closed and In-Closing Investments (Pages 37-44)
1. Total capitalization is the sum of long-term debt and all other types of equity, such as common stock and preferred stock.
2. Equity Committed: represents amount of equity invested into deals (including reinvestment of capital) that have closed as of June 30, 2020, not including amounts attributable to any
financing or refinancing. Amounts that are projected to be invested in investments are based on the manager's assumptions, which may differ materially from actual events or conditions.
3. 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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