I NLAND R EAL E STATE E XCHANGE C ORPORATION P H ARMACY P O R TFOLIO DST

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Audra Harrell
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1 I NLAND R EAL E STATE E XCHANGE C ORPORATION P H ARMACY P O R TFOLIO DST

P HARMACY P ORTFOLIO DST PHARMACY PORTFOLIO DST Ilad Real Estate Exchage Corporatio, through its

Trust ( DST ) which holds 3 retail properties.

All three buildigs, which iclude drive-thrus, were costructed i 2008 ad have 25-year iitial lease

TENANT HIGHLIGHTS: CVS Caremark Corporatio, a pharmacy services compay, provides prescriptios ad

2 P HARMACY P ORTFOLIO DST PHARMACY PORTFOLIO DST Ilad Real Estate Exchage Corporatio, through its affiliate, Pharmacy Portfolio DST, is offerig for sale Beeficial Iterests i the Delaware Statutory Trust ( DST ) which holds 3 retail properties. The properties are all cosidered Class A properties which operate as CVS Pharmacies. All three buildigs, which iclude drive-thrus, were costructed i 2008 ad have 25-year iitial lease terms. The leases are guarateed by the CVS Caremark Corporatio (NYSE-CVS). TENANT HIGHLIGHTS: CVS Caremark Corporatio, a pharmacy services compay, provides prescriptios ad related healthcare services i the Uited States. The compay operates through two segmets, Pharmacy Services ad Retail Pharmacy. The compay was fouded i 1892 ad is headquartered i Woosocket, Rhode Islad.

CVS CAREMARK CORPORATION More tha $87 billio i aual reveue Raked 19th o Fortue 500 for 2009 No. 1 provider of prescriptios i the atio more tha 1 billio prescriptios filled or maaged aually No.

3 CVS CAREMARK CORPORATION More tha $87 billio i aual reveue Raked 19th o Fortue 500 for 2009 No. 1 provider of prescriptios i the atio more tha 1 billio prescriptios filled or maaged aually No. 1 specialty pharmacy Largest employer of Pharmacists ad Nurse Practitioers No. 1 i Store Cout more tha 7,000 CVS/pharmacy stores i 43 states (icludes Logs Drugs i Hawaii) 4+ millio customers daily No. 1 Retail Pharmacy Sales per square foot No. 1 Retail Cliic Operator more tha 560 MiuteCliic locatios i 25 states More tha 2 millio MiuteCliic patiet visits to date

P HARMACY P ORTFOLIO DST DIRECT COMPETITOR COMPARISON CVS WAG RAD Market Cap: 46.51B 35.80B 1.22B Employees: 215,000 166,000 57,680 Quarterly Reveue Growth (yoy): 18.10% 9.50% -1.80% Reveue (ttm): 97.

4 P HARMACY P ORTFOLIO DST DIRECT COMPETITOR COMPARISON CVS WAG RAD Market Cap: 46.51B 35.80B 1.22B Employees: 215, ,000 57,680 Quarterly Reveue Growth (yoy): 18.10% 9.50% -1.80% Reveue (ttm): 97.05B 64.75B 25.91B Operatig Margis (ttm): 6.49% 5.65% 0.48% Net Icome (ttm): 3.61B 2.09B -2.60B Earigs Per Share (ttm): WAG = Walgree Co. RAD = Rite Aid Corp. Yoy = Year over year Ttm = trailig twelve moths

5 LOCATION HIGHLIGHTS: SOUTH LYON, MI: Located 30 miles orthwest of the Detroit Cetral Busiess District, South Lyo is cosidered to be a growig suburba locatio. Lad uses withi the eighborhood cosist of mostly residetial developmet with some supportig commercial developmet. The eighborhood has bee i the growth stage of its ecoomic life cycle for the past few decades. Populatio chage has bee positive i recet years with much of that growth occurrig i the past te years. The South Lyo submarket is comprised of above average icome groups, with 2009 average estimated household icome of $118,853 withi a oe-mile radius of the South Lyo CVS. Give the area demographics, it appears that demad for both comparable surroudig area retail properties, ad the South Lyo CVS, will cotiue to be favorable. WALLS, MS: Walls is a suburb of Memphis, TN, located approximately 13 miles southwest of the Memphis Cetral Busiess District. The populatio i the eighborhood has experieced positive growth over the past 5 years. Approximately 40% of the homes built withi a three-mile radius of the store were costructed sice The 2009 average estimated household icome is $70,120 withi a oe-mile radius of the Walls CVS. The immediate area surroudig the Walls CVS is projected to experiece moderate, positive growth relative to households, populatio, icome levels ad retail expeditures. Give the area's above average level of demad for retail ad proximity to both employmet ceters ad major roadways, the Walls CVS should ejoy good market acceptace.

P HARMACY P ORTFOLIO DST WEST COLUMBIA, TX: The West Columbia CVS is located approximately 45 miles south of the Housto Cetral Busiess District.

A major cotributor to this growth is the proximity of The Gulf of Mexico ad the City of Housto.

Withi a oe-mile radius of the West Columbia CVS, the 2009 average estimated household icome is $55,745.

6 P HARMACY P ORTFOLIO DST WEST COLUMBIA, TX: The West Columbia CVS is located approximately 45 miles south of the Housto Cetral Busiess District. It is located alog the area s primary commercial thoroughfare ad withi a area that has exhibited recet growth. A major cotributor to this growth is the proximity of The Gulf of Mexico ad the City of Housto. The couty area has cotiued to see overall employmet growth, despite the atioal ecoomic coditios, ad its uemploymet rates have stayed below the atioal average. Withi a oe-mile radius of the West Columbia CVS, the 2009 average estimated household icome is $55,745. It is situated at the itersectio of two of the more heavily traveled roadways i the eighborhood, thereby receivig a exposure level well above most competig properties. OPERATIONS Over the past two decades, the drug store market has see a shift from oce traditioal i-lie stores to the ow popular freestadig, drive-thru cocept. These freestadig facilities provide a higher level of visibility ad accessibility. With demad escalatig, the drugstore idustry is growig rapidly, ad sales have icreased at a average rate of $10 billio aually sice the tur of the 21st cetury. By 2010, total aual sales should surpass $200 billio, with most of this growth claimed by chai pharmacies.

The drugstore idustry relies o four mai product categories for a large percetage of total sales: prescriptio drugs, over-the-couter medicatios, toiletries, ad cosmetics.

7 The drugstore idustry relies o four mai product categories for a large percetage of total sales: prescriptio drugs, over-the-couter medicatios, toiletries, ad cosmetics. Prescriptio drugs draw customers to the store, ad a commo strategy sees drugstores placig pharmacies toward the rear of the store i order to drag traffic through. Frot-store merchadise typically yields higher profit margis tha prescriptio drugs; sales of such merchadise accouts for 40% to 65% of total sales (ad a eve larger percetage of profits). Because frot-store merchadise is ot the idustry s primary busiess attractor, however, drugstores ted to focus o the umber of ew prescriptios they fill as a gauge of overall success. Amog retail pharmacy customers, 58% buy their prescriptios at chai drugstores. Accordig to Stadard & Poor s, drugstore chais have bee the beeficiaries of major chages i the U.S. healthcare sector, such as icreasig pharmaceutical access because of maaged care, the acceptace of ew drug therapies as a

P HARMACY P ORTFOLIO DST cost-effective alterative to surgery, ad promisig ew drugs comig to market. These factors, as well as the agig populatio ad risig life expectacy, have fueled idustry growth.

8 P HARMACY P ORTFOLIO DST cost-effective alterative to surgery, ad promisig ew drugs comig to market. These factors, as well as the agig populatio ad risig life expectacy, have fueled idustry growth. These growth treds are expected to cotiue. SOURCES: CBRE Appraisal Dated December 18, 2009 (MI) CBRE Appraisal Dated November 10, 2009 (TX) CBRE Appraisal Dated December 17, 2009 (MS) CVS aual report, 10K ad 10Q filigs CVSCaremark.com

OFFERING HIGHLIGHTS NAME: Pharmacy Portfolio DST MINIMUM INVESTMENT: Miimum purchase for 1031 ivestors: $ 100,000

three CVS Pharmacy locatios with lease terms as follows: 25 year lease terms - Absolute et leases Mothly retal icome

refiace risk NO LEVERAGE ADDED SAFETY THROUGH ALL CASH OWNERSHIP: A ivestmet i the Pharmacy Portfolio DST will

This coservative approach provides ivestors with a opportuity to ejoy a steady icome stream tied to the ivestmet

9 OFFERING HIGHLIGHTS NAME: Pharmacy Portfolio DST MINIMUM INVESTMENT: Miimum purchase for 1031 ivestors: $ 100,000 Miimum purchase for cash ivestors: $ 25,000 OFFERING PRICE: $12,715,000 DEAL STRUCTURE HIGHLIGHTS: DST ivestors ow three CVS Pharmacy locatios with lease terms as follows: 25 year lease terms - Absolute et leases Mothly retal icome guarateed by CVS Caremark Corporatio (S&P BBB+) No mortgage ecumberig the properties No mothly debt service No refiace risk NO LEVERAGE ADDED SAFETY THROUGH ALL CASH OWNERSHIP: A ivestmet i the Pharmacy Portfolio DST will cosist of 100% equity owership without a first mortgage ecumberig the properties. This coservative approach provides ivestors with a opportuity to ejoy a steady icome stream tied to the ivestmet grade credit of CVS Caremark Corporatio, with the log term ivestmet objective of waitig through a market cycle ad sellig the assets durig more favorable market coditios.

P HARMACY P ORTFOLIO DST This coservative deal structure helps ivestors to withstad short term market volatility with little or o implicatio o their

With a log term ivestmet objective i mid, ivestors will be well positioed to avigate through a market cycle, while beig paid to wait with tax advataged

PROPERTIES DESCRIPTION: The South Lyo Property, located at 57090 10 Mile Road, South Lyo, Oaklad Couty, Michiga, is a 1.

12,900 square feet of gross retable area. The Buildig was costructed i 2008.

10 P HARMACY P ORTFOLIO DST This coservative deal structure helps ivestors to withstad short term market volatility with little or o implicatio o their cash flow. With a log term ivestmet objective i mid, ivestors will be well positioed to avigate through a market cycle, while beig paid to wait with tax advataged icome geerated from the properties operatios. PROPERTIES DESCRIPTION: The South Lyo Property, located at Mile Road, South Lyo, Oaklad Couty, Michiga, is a 1.70-acre (74,088 square foot) parcel of lad upo which is located a oe-story, freestadig retail buildig with dual-lae drive-thru cotaiig approximately 12,900 square feet of gross retable area. The Buildig was costructed i There are 70 total ope-air surface parkig spaces o the Property (icludig three hadicapped spaces). The Walls Property, located at 6040 Goodma Road, Walls, DeSoto Couty, Mississippi, is a 1.46-acre (63,450 square foot) parcel of lad upo which is located a oestory, freestadig retail buildig with dual-lae drive-thru cotaiig approximately 11,945 square feet of gross retable area. The Buildig was costructed i There are 66 total ope-air surface parkig spaces o the Property (icludig three hadicapped spaces).

The West Columbia Property, located at 701 South 17th Street, Brazoria Couty, Texas, is a 1.

11 The West Columbia Property, located at 701 South 17th Street, Brazoria Couty, Texas, is a acre (80,836 square foot) parcel of lad upo which is located a oestory, freestadig retail buildig with dual-lae drive-thru cotaiig approximately 11,945 square feet of gross retable area. The Buildig was costructed i There are 74 total ope-air surface parkig spaces o the Property (icludig four hadicapped spaces). FORECASTED CASH-ON-CASH RETURN (1) (PAID MONTHLY) Forecasted Cash-O-Cash Retur Tax Equivalet Yields 9.00% 7.69% 8.71% 8.64% 8.58% 8.53% 8.48% 8.45% 8.45% 8.45% 8.45% 8.00% 6.00% (1)These forecasts are estimates which are based o certai assumptios ad may vary. Please cosult the Private Placemet Memoradum for factors that may cause the actual results to differ. The Ilad Real Estate Group of Compaies, Ic. Torch Award Wier for Ethics i the Marketplace Better Busiess Bureau of Chicago ad Norther Illiois

12 Ilad Exchage Program This material must be preceded or accompaied by a Private Placemet Memoradum, which fully discloses the potetial beefits ad risks of the ivestmet. There ca be o assurace the ivestmet objectives will be achieved. This ivestmet is subject to risks icludig those real estate risks associated with the operatio ad leasig of retail properties. There is o guaratee ivestors will receive distributios or the retur of their capital. Cosult the Private Placemet Memoradum for a discussio of risks. This material is either a offer to sell, or the solicitatio of a offer to buy ay security, which ca be made oly by the Private Placemet Memoradum, ad sold oly by broker/dealers authorized to do so. All potetial ivestors must read the Memoradum, ad o perso may ivest without ackowledgig receipt ad complete review of the Memoradum. Ivestmets are suitable for accredited ivestors oly. The compay depicted may have proprietary iterests i their trade ames ad trademarks. Nothig herei shall be cosidered to be a edorsemet, authorizatio or approval of Ilad Real Estate Exchage Corporatio, or the ivestmet vehicles they may offer, by the aforemetioed compaies. Further, oe of the aforemetioed compaies are affiliated with Ilad Real Estate Exchage Corporatio i ay maer. This material has bee prepared by Ilad Securities Corporatio, dealer/maager for Pharmacy Portfolio DST. Ilad Securities Corporatio is a member of the Fiacial Idustry Regulatory Authority. The Ilad ame ad logo are registered trademarks beig used uder licese. Ilad Real Estate Exchage Corporatio 2901 Butterfield Road Oak Brook, IL

REITInsight. In this month s REIT Insight:

REITInsight. In this month s REIT Insight: REITIsight Newsletter February 2014 REIT Isight is a mothly market commetary by Resource Real Estate's Global Portfolio Maager, Scott Crowe. It discusses our perspectives o major evets ad treds i real