Investing in Private Credit

Commercial real estate lending Transitional lending Theme: Post COVID Pullback in Capital Availability Investment background Private transitional CRE lending market has gown exponentially as high quality sponsors seek flexible funding for an expanding array of transitional projects to adapt to new realities Longer trajectory to stabilization may increase the need for bridge lending Balance sheet and liquidity pressures persist as mortgage REITs, dedicated CRE debt funds and other participants face constraints due to operating and liquidity impairments Increasing refinancing needs with ~$2 trillion in pending CRE loan maturities approaching • Path to recovery remains uncertain for certain sectors and likely to create future episodes of dislocation in public CRE markets ● ● Investment strategy / illustrative transaction • Redevelopment project in need of financing to re-emerge post- lockdown as a leading hospitality property PIMCO • Given PIMCO headquarters' close proximity to property, team leveraged knowledge of local real estate and submarket which is in a top tier area of Southern California that has high barriers to entry and high land values ● ● Sponsor has invested notable cash equity in the project and owns local properties which it plans to leverage in order to capture limited demand and cross-sell for incremental demand Sponsor's business plan is to capitalize on period of lower demand created by COVID-19 to complete property improvement plan (PIP) and position property as a key luxury hotel in the area post-COVID As of 30 June 2021. Source: PIMCO. Post the onset of COVID-19 refers to period after February 2020. For illustrative purposes only. Past performance is not a guarantee or a reliable indicator of future results. The investment(s) above represents investments made by PIMCO private funds. There can be no guarantee that the investment identified above will achieve positive results. The investment shown above is presented for illustrative purposes only, as a general example of the types of investments that may be acquired by PIF, as well as PIMCO's capabilities in sourcing, modeling and managing such investments. PIF may invest significantly in asset types not referred to in the above. There can be no guarantee that PIF will continue to have access to comparable investments, or that PIMCO will continue to utilize similar strategies or techniques in connection with PIF investments. The information presented herein is as of a specific date, may have changed since such time and is subject to future change. Refer to Appendix for additional investment strategy, outlook, sample investments and risk information. 9

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