Ares US Real Estate Opportunity Fund III

Tropical Logistics Park, Las Vegas, NV - Update Unleveraged preferred position at a below-market basis in a land-constrained submarket with the unilateral right for Ares to sell the land and recoup its equity 1 2 We continue to maintain our preferred position in the unleveraged land which is senior to our sponsor's common equity Executed LOI for a one million SF build-to-suit with a national credit tenant, with construction scheduled to commence in fall 2020 3 Recent market trades in Q4 2019 were 23% above our preferred basis in the land, and the unsolicited land purchase offer received prior to the pandemic is 48% above preferred basis* 4 5 Currently negotiating GMP for one million SF build-to-suit, with limited COVID complications due to essential construction work rules and domestically sourced materials Demand for the remaining ~300K SF has remained robust, with several RFP responses in process As of June 30, 2020 unless otherwise noted. 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. The information contained herein represents Ares Real Estate Group's views as of June 30, 2020. However, the situation surrounding COVID-19 is fluid and developing rapidly. As such, our views are subject to change at any time. *CoStar, Q4 2019. ARES Confidential - Not for Publication or Distribution 41

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