$5B -$20B 27% Employees 33% Under 50. Over $20B 39% $2.5B B 18% Under $2.5B 16% Employees. 22% Over 250 Employees 45%

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1 2016 NAREIM Compensation Survey The National Association of Real Estate Investment Managers (NAREIM) is once again partnering with FPL Associates to conduct the 2016 NAREIM Compensation Survey, which is widely considered the most comprehensive of its kind within the real estate investment management (REIM) industry. Unlike other surveys in the marketplace, this survey provides NAREIM members/participants with customized, real-time compensation trends and data that can be used at all levels of the organization to assist with human capital decisions. Why Participate? Compensation continues to be an emphasis at investment managers. The NAREIM Compensation Survey has served as a valuable resource for participants and member organizations, providing a number of bene its: The survey s real time compensation trends and positional information has helped irms react and adjust their compensation program to the changing economic environment Information helps irms stay competitive in all areas of compensation ( ixed and variable pay) which results in increased employee retention Questions are relevant and attuned to the latest issues facing organizations today Position and department information is comprehensive and usable by organizations of all sizes, structures, and strategies The survey questionnaire is easy to complete and the comprehensive report of results is free to participants Survey Coming Soon! This year s survey will be available to participants on April 4, Survey questionnaires and compensation worksheets are due to FPL by May 6, 2016 with results published in August Questions/Comments If you have any questions about this year s survey, questionnaire, or due date please contact us. Gunnar Branson President & CEO NAREIM (312) gbranson@nareim.org Josh Anbil Senior Managing Director (312) janbil@fplassociates.com Lindsay Pankratz Survey Director (312) lpankratz@fplassociates.com 1

2 2015 Survey Overview The 2015 NAREIM Compensation Survey provided a variety of organizational and compensation information and trends across the REIM industry, including: Staf ing and hiring trends Financial performance trends Compensation design trends and practices Positional ranges by component (e.g., base salary, annual incentive, and long-term incentive) Data was also collected on anticipated changes and trends in compensation program design going forward, including promote/carried interest awards. Key Findings from the 2015 Survey Financial performance continued to improve at most REIMs with increased revenue at 78% of participants and generally similar results reported for EBITDA (67%) and gross AUM (76%) Most participants (91%) increased salaries at year-end, making 2015 the ifth consecutive year of widespread salary increases in the REIM sector At most irms, salary increases in 2015 continued to grow (4.5% on average) in comparison to those reported for the past few years and the REIM sector s historical average (3-4%) Most participants (70%) anticipated increasing salaries in 2016, with the average expected increase among these irms being 3.7% Bonuses for performance year (PY) 2014 increased at 71% of participants, which is greater than PY 2013 (61%) but slightly below PY 2012 (76%); among companies reporting an uptick in bonuses, the average increase was 20% (similar to the 19% reported in 2014) Slightly more than one-third (36%) of participants expected PY 2015 bonuses would exceed bonus payments for PY 2014 (down from 51% reported in 2014) Nearly half (48%) of participants indicated long-term incentive eligibility expanded at their irm from PY 2014 to PY 2015 Looking ahead, most (53%) participants do not expect PY 2015 LTI awards to differ materially from PY 2014 awards Nearly half (45%) of participants have a promote/carried interest plan, similar to the 46% last year, with these plans most commonly used for value-add and opportunistic commingled funds and separate accounts 2

3 2015 Participant Demographics The 2015 NAREIM Compensation survey had 47 participating organizations, re lecting an impressive 55% participation rate. In total, the participating companies in the 2015 survey manage over $940 billion in assets. Number of Full Time Gross Assets Under Management (AUM) % $5B -$20B 27% Under 50 22% Over % $2.5B B 18% Under $2.5B 16% Over $20B 39% AEW Capital Management American International Group (AIG) American Realty Advisors Amstar Bentall Kennedy Berkshire Property Advisors CBRE Global Investors Clarion Partners Colony Realty Partners CommonWealth Partners Cornerstone Real Estate Advisers Deutsche Bank Hart Realty Advisers Heitman Hines IDS Real Estate Group Inland Real Estate Investment Corporation Intercontinental Real Estate Corporation Invesco Real Estate Jamestown JP Morgan Asset Management Kimco Realty Corporation LaSalle Investment Management 2015 Participant Companies Lowe Enterprises Investors Manulife Financial Mesa West Capital MetLife Investments Metzler Realty Advisors National Real Estate Advisors New York Life Real Estate Investors PCCP (Paci ic Coast Capital Partners) Pearlmark Real Estate Partners PM Realty Group Principal Global Investors Prologis Prudential Real Estate Investors Saro im Realty Advisors Stockbridge Capital Group TDA Investment Group TIAA-CREF UBS Realty Investors USAA Real Estate Company Walton Street Capital Waterton Associates Zeller Realty Group 3

4 Survey Departments/Positions The survey report included current compensation practices for 148 positions across 28 departments. Within each department, we typically report compensation ranges for the following levels: (1) Head, (2) Senior-level, (3) Mid-level, (4) Associate, and (5) Analyst. The compensation data was then organized by position and broken out into the following participant categories: Aggregate (all companies), AUM, Fund Strategy/Account Type, and Number of Full-Time. Survey Departments Executive Management International Positions Accounting Corporate Accounting Portfolio/Fund Accounting Property Administration Asset Management Capital Markets Investor Relations/Capital Raising Investor Reporting Construction Corporate Marketing/Communications Development Due Diligence/Underwriting Engineering/Security Finance Human Resources Leasing Legal/Compliance Portfolio Management Property Management Research Risk Management Technology Transactions Valuations Debt REIT Securities Example Survey Positions Chief Executive Of icer (Head of Real Estate) Chief Operating Of icer Chief Financial Of icer Chief Investment Of icer Chief Administrative Of icer Chief Information/Technology Of icer Chief Accounting Of icer General Counsel Regional Chief Operating Of icer/regional EVP Product or Business Line Chief Operating Of icer/evp Head of New Business Initiatives/Product Development Head of Real Estate Lending & Debt Investments Senior Portfolio Management Professional Debt Senior Originations/Production Professional Mid-Level Originations/Production Professional Originations/Production Analyst 4

5 Example Pages from 2015 Report The pages below are excerpts from the 2015 survey and illustrate the types of analysis and information that are presented in the report. 5