GOLF & RESORT GROUP Premier Leisure Properties YEAR IN REVIEW 2017

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1 GOLF & RESORT GROUP Premier Leisure Properties YEAR IN REVIEW 2017

2 Looking back on our predictions for 2017 in our last Year in Review, they proved to be spot on. Although it took several months for investors to buy into an expanded economy due to the Trump Presidency, the stock market reached all-time highs and investor confidence began to surge. There appears to be plenty of gas in the tank for the current recovery and according to the Emerging Trends in Real Estate annual report by PWC released at the ULI Fall Conference in October, we are in a long cycle of growth with no timetable for a recession to begin. Further, its felt that the recession, when it does come, will have a soft landing as opposed to the hard landings of previous economic cycles that were caused by the S & L debacle, the dot-com bubble burst and the sub-prime landing fiasco. The recovery has been slow paced and moderate and although money is cheap, it s not recklessly flowing as in previous booms. Nonetheless, due to the current length of the recovery some real estate investors are still taking a defensive position which will lead to buying opportunities for those more bullish on the future. The ski industry did undergo dramatic changes in 2017 thanks to purchases by KSL/Aspen Skiing Company of Intrawest, Mammoth Mountain and Deer Valley for over $2 billion. Their business model will be to emulate the success of Vail Associates and specifically the Epic Pass which de-risks the volatile ski business due to weather also saw the largest ever golf portfolio transaction when Apollo purchased ClubCorp for a record $2.2 billion. We are even more bullish on 2018 than 2017 as the market dynamics continue to improve and we will be bringing exciting properties to market in the coming months. Cheers! Jeff Woolson Managing Director CBRE Golf & Resort Properties

3 3.5 GOLF COURSE SALES Gross Revenue Multiples Source: CBRE Research We have sold more than 125 golf properties over the last 25 years and began using the Gross Revenue Multiple (GRM) as a valuation metric in our sales analysis during the most recent recession, since so many golf courses were not generating positive cash flow. As it relates to our transactions, the average GRM peaked in pre-crash 2007 at 2.86 and has averaged 1.63 for the last 10 years, most recently dropping to an average of 1.37 in The decline in GRMs for our transactions roughly mirrors the data reported by the Society of Golf Appraisers, who show a declining national average in recent years and a 1.48 GRM most recently. GOLF RESORT SKI MARINA DEVELOPABLE LAND

4 KINGSMILL RESORT Williamsburg, Virginia SOLD February 2017 Resort / Conference Center / Private Country Club (54 Holes) / Developable Land

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7 GROUSE MOUNTAIN Vancouver, Canada SOLD July 2017 Ski Resort / Developable Land

8 CARTON HOUSE Dublin, Ireland SOLD November 2017 Golf Resort

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11 EASTLAKE COUNTRY CLUB Chula Vista, California SOLD December 2017 Daily Fee Golf Course

12 LAS VEGAS COUNTRY CLUB Las Vegas, Nevada SOLD December 2017 Private Country Club

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14 WESTKIN PORTFOLIO Coachella Valley, California SOLD November 2017 Leasehold Portfolio (Golf / Hotel / Residential)

15 SOUTHSHORE GOLF CLUB Henderson, Nevada SOLD December 2017 Private Golf Club

16 Westkin new south ocean

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18 2018 PREVIEW New South Ocean, Bahamas Granby Ranch, Colorado Diablo Grande, California DuPont Country Club, Delaware Steamboat Springs Land, Colorado

19 Anco Lands Portfolio, Bahamas Reunion Resort, Florida Heritage Golf Portfolio Aetna Springs, California CostaBaja, Mexico

20 JEFF WOOLSON Managing Director MORGAN ABBOTT Senior Underwriter GOLF & RESORT GROUP 5780 Fleet Street, Suite 100 Carlsbad, CA Follow us 2018 CBRE Group, Inc. We obtained this information from sources we believe to be reliable, however we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. This offering memorandum is subject to the terms outlined in the confidentiality agreement. Reproduction of this document and its contents is strictly prohibited without the expressed written consent of CBRE.