Commercial real estate debt survey Question Title * 1. In what allocation does your investment in CRE debt sit? Real estate Private debt Fixed income Alternatives We do not have a defined allocation but invest opportunistically We do not invest in CRE debt Other (please state) OK Question Title * 2. Which performance benchmark(s) do you use/reference for your core mortgages investments? Lifecomps Merrill Lynch Corporate Industrial Index plus a spread ACLI mortgage returns Giliberto Levy mortgage index Barclays single A Corps ex Financials Other (please specify) OK Question Title * 3. Which performance benchmark(s) do you use/reference for your high yield/subordinate investments? High yield Giliberto Levy index Moody’s Below Investment Grade Corporate Bond Index Other (please specify) OK Question Title * 4. What do you consider to be the average LTV for a senior loan? 50% 55% 60% 65% OK Question Title * 5. What do you consider to be the average LTV for a junior/mezz loan? 60% 65% 70% 75+% OK Question Title * 6. What are your return expectations for 2018 for each of the following: Senior loans in Europe 2-4% 4-6% 6-8% 8-11% 11-14% 14% or more Senior loans in Europe menu Senior loans in the US 2-4% 4-6% 6-8% 8-11% 11-14% 14% or more Senior loans in the US menu Senior loans in APAC 2-4% 4-6% 6-8% 8-11% 11-14% 14% or more Senior loans in APAC menu Junior/mezz loans in Europe 2-4% 4-6% 6-8% 8-11% 11-14% 14% or more Junior/mezz loans in Europe menu Junior/mezz loans in the US 2-4% 4-6% 6-8% 8-11% 11-14% 14% or more Junior/mezz loans in the US menu Junior/mezz loans in APAC 2-4% 4-6% 6-8% 8-11% 11-14% 14% or more Junior/mezz loans in APAC menu OK Question Title * 7. Generally speaking, do you expect to raise or lower these return expectations in 2019? Raise Unchanged Lower OK Question Title * 8. How important are the following attributes of CRE debt to your decision to invest? Please rank each of the following: Stability: CRE debt occupies a more secure part of the capital stack than equity, offering a measure of downside protection. Very important Important Not very important Not important at all Stability: CRE debt occupies a more secure part of the capital stack than equity, offering a measure of downside protection. menu Income: Well-structured CRE debt offers the potential for steady and relatively high income-focused returns. Very important Important Not very important Not important at all Income: Well-structured CRE debt offers the potential for steady and relatively high income-focused returns. menu Relative value: Attractive risk-adjusted return potential relative to fixed income investments and direct real estate, particularly late cycle. Very important Important Not very important Not important at all Relative value: Attractive risk-adjusted return potential relative to fixed income investments and direct real estate, particularly late cycle. menu Diversification: Modest correlations to fixed income and direct real estate allocations provide diversification in a multi-asset class portfolio. Very important Important Not very important Not important at all Diversification: Modest correlations to fixed income and direct real estate allocations provide diversification in a multi-asset class portfolio. menu Market opportunity: Structural changes in the CRE lending market have created a long-term opportunity for alternative lenders to originate CRE debt investments with attractive risk-adjusted target returns. Very important Important Not very important Not important at all Market opportunity: Structural changes in the CRE lending market have created a long-term opportunity for alternative lenders to originate CRE debt investments with attractive risk-adjusted target returns. menu OK Question Title * 9. Please rate the following countries / regions based on which you feel offer the most attractive risk-adjusted returns for CRE debt investing. Scale of 1-5 with 1 being not at all attractive and 5 being extremely attractive: 1 2 3 4 5 N/A US US 1 US 2 US 3 US 4 US 5 US N/A Canada Canada 1 Canada 2 Canada 3 Canada 4 Canada 5 Canada N/A UK UK 1 UK 2 UK 3 UK 4 UK 5 UK N/A Continental Europe Continental Europe 1 Continental Europe 2 Continental Europe 3 Continental Europe 4 Continental Europe 5 Continental Europe N/A India India 1 India 2 India 3 India 4 India 5 India N/A China China 1 China 2 China 3 China 4 China 5 China N/A Australia Australia 1 Australia 2 Australia 3 Australia 4 Australia 5 Australia N/A Japan Japan 1 Japan 2 Japan 3 Japan 4 Japan 5 Japan N/A OK Question Title * 10. What is the one market, anywhere in the world, you have the most positive view of, in terms of CRE debt investing? OK Question Title * 11. What is the one market, anywhere in the world, you have the least positive view of, in terms of CRE debt investing? OK Question Title * 12. Do you plan to access private CRE debt over the coming 12 months in the following vehicles? (choose all that apply) Commingled – closed Commingled – open Separate account Deal by deal OK Question Title * 13. Is co-investment: An essential prerequisite A useful provider of upside An option, no more or less OK Question Title * 14. Do you find the use of the following enhancement techniques acceptable in CRE debt investing? YES NO Structural leverage (e.g., A-note/B-note structuring) Structural leverage (e.g., A-note/B-note structuring) YES Structural leverage (e.g., A-note/B-note structuring) NO Financial leverage (e.g., warehouse lines) Financial leverage (e.g., warehouse lines) YES Financial leverage (e.g., warehouse lines) NO Loan securitizations (e.g., collateralized loan obligations) Loan securitizations (e.g., collateralized loan obligations) YES Loan securitizations (e.g., collateralized loan obligations) NO OK Question Title * 15. Aside from a track record of out-performance, what qualities do you look for in a manager? Please rank the following qualities in order of how important they are for you. 1st 2nd 3rd 4th Longevity of platform Longevity of platform 1st Longevity of platform 2nd Longevity of platform 3rd Longevity of platform 4th Experience of team Experience of team 1st Experience of team 2nd Experience of team 3rd Experience of team 4th Sourcing and origination capability Sourcing and origination capability 1st Sourcing and origination capability 2nd Sourcing and origination capability 3rd Sourcing and origination capability 4th Great communication/transparency Great communication/transparency 1st Great communication/transparency 2nd Great communication/transparency 3rd Great communication/transparency 4th OK Question Title * 16. When considering selecting an investment manager, how important is the quality of GP reporting? Absolutely essential Very important Quite important Not a priority OK Question Title * 17. How important are a firm’s sustainability policies to your decision to invest in a CRE debt fund? Absolutely essential Very important Quite important Not a priority OK Question Title * 18. When considering selecting an investment manager, how important is it for them to have direct equity asset management capabilities? Very important Quite important Can occasionally be important Not important at all OK Question Title * 19. When considering selecting an investment manager, how important is it for them to be able to provide a credit rating for each loan? Very important Quite important Can occasionally be important Not important at all OK Question Title * 20. What is your $AUM Less than $10 bn Between $10 and $50 bn Over $50 bn OK Question Title * 21. What is your institution type? Public pension plan Private pension plan Investment consultant Sovereign wealth fund Foundation/endowment Family office Fund of funds manager Insurance company Asset manager Other (please specify) OK Question Title * 22. Where is your company headquartered? United States Americas, ex-US Asia Pacific Europe Middle East Africa OK Question Title * 23. Please leave your email address to receive a copy of the report. OK DONE
