Q Commentary. Figure 1: Oyster Point, South San Francisco

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1 Q Manager Commentary REIAX REICX REIIX Q Commentary The Chilton Real Estate Investment Trust (REIT )Team recently attended the NAREIT REITWeek confer-ence in New York City, where we met with over 50 REIT management teams in a one-on-one or small group setting. The conference was especially important this year due to the significant discounts to Net Asset Value (or NAV) at which many of them were trading. We came away from the conference reassured in the strength of the private market for high quality, well-located real estate, thereby increasing our confidence that REITs are generally mispriced. We believe the discounts will close as public REITs post positive cash flow and dividend growth, and select REITs will use strategic alternatives such as mer-gers, spinoffs, and share buybacks as catalysts to close the gap more quickly. Figure 1: Oyster Point, South San Francisco Office We met with Columbia Property Trust (NYSE: CXP), Vornado (NYSE: VNO), Boston Properties (NYSE: BXP), Empire State Realty (NYSE: ESRT), JBG Smith (NYSE: JBGS), Corporate Office Properties (NYSE: OFC), and Kilroy Realty (NYSE: KRC). Development continues to be the key driver of value creation for the office REITs, as it has been increasingly difficult to achieve positive growth in net effective rents (rents after free rent and tenant improvement allowances) in most coastal markets. Fortunately, the transaction market is extremely healthy for well-located, well-leased assets, thereby creating an attrac-tive environment for dispositions. Therefore, Chilton Capital Management believes the appropriate strategy in today s market given valua-tions below NAV is to sell properties, using the proceeds to invest in development, reduce leverage, and repurchase stock. As such, the West Loop Realty Fund holdings (BXP, VNO, ESRT, and KRC) have devel-opment pipelines that average 11% of assets, well above the 2% average for all REITs. Excluding ESRT, the average is closer to 14%! Due to their development capital, none of them have pursued a significant stock buyback program; however, our conversations at REITWeek encouraged us that they would priori-tize such a strategy should the discount to NAV gap widen further. The most significant announcement at the conference came from Kilroy, which made public its purchase of Oyster Point, a $2.5 billion development opportunity in South San Francisco. On June 1, the company paid $308 million for 35 acres of land entitled for 2.5 million square feet (or sqft). As shown in Figure 1, the area is plentiful with life science tenants, making it one of the top life science clusters in the coun-try (close behind Cambridge, MA). However, rents lag Cambridge by almost 20%, leaving room for up-side versus current projections. Regional Malls We met with Washington Prime Group (NYSE: WPG), Simon Source: KRC Investor Day Presentation, June 2018 Property Group (NYSE: SPG), Macerich (NYSE: MAC), Taubman Centers (NYSE: TCO), Tanger Outlet Centers (NYSE: SKT), and Pennsylvania REIT (NYSE: PEI). At the November 2017 REITWorld conference, the regional mall sector was the hot topic due to the potential for mergers and acquisitions. Brookfield Property Partners (TSX: BPY) had recently made a bid for GGP (NYSE: GGP), and activists were swirling around TCO and MAC. Since then, GGP agreed to a revised offer from BPY, while MAC and TCO have made changes at the board level, and, in the case of MAC, changes to the CEO and COO. It remains to be seen if a transaction will occur with ei-ther of these companies, or among the lower quality mall REITs where the NAV discount has been even deeper (30-50%!). However, as a going concern, mall landlords are optimistic about their portfolios due to the positive tenant sales growth in Notably, MAC stated that their top 25 tenants have produced low double digit sales growth through April. Stronger retailer tenant sales are also dramatically lowering the space lost due to tenant bankruptcy; TCO and MAC gave back about 90% less space in 1Q18 than 1Q17 due to bankruptcy. We were also happy to hear that Tanger has had very few requests for rent relief. The other most-discussed topic was redevelopment, particularly in the boxes left by departing depart-ment stores. Though it can be time-consuming and costly, mall landlords are already seeing early fruit from their labor. According to WPG CEO Lou Conforti, the company has tripled the sales of the prior department store after replacing it with new tenants. WPG has lowered the number of department stores at its malls by 38% in the past three years, from 205 to 128. Importantly, co-tenancy clauses due to Sears (NYSE: SHLD) leaving a mall have not resulted in landlords witnessing a significant loss of rent from in-line tenants. SPG COO Rick Sokolov stated that he views Sears only as acreage which

2 can be used for densification and redevelopment. Apartments We met with AvalonBay (NYSE: AVB), Equity Residential (NYSE: EQR), Essex (NYSE: ESS), Independence Realty (NYSE: IRT), and UDR (NYSE: UDR). In 2018, apartment fundamentals have surprised to the up-side as REITs reported same store revenue growth (SSRev) that is tracking ahead of guidance due to strong renewal rate increases and higher occupancy. For example, UDR reported yearover-year rent growth through May 29 above 2017 s level, implying an acceleration in SSRev. Supply continues to be a slight headwind for the sector, however. Many REIT management teams origi-nally expected 2017 to be the peak of new supply for most markets, but construction delays have pushed the peak into 2018, and some even into Thus far, elevated levels of supply have been ab-sorbed by the strong job market, which has limited the negative impact on revenue growth. However, we are closely monitoring construction starts and permits to assess the risk of over-supply. The risk is somewhat mitigated by rising construction costs, which should make future development increasingly difficult to pencil. The potential repeal of Costa Hawkins, a California law that exempts housing constructed after 1995 from local rent control, was another common topic across our apartment meetings. Costa Hawkins will be put to a vote on the November ballot, and a repeal could have a material impact on apartment REITs with California exposure. However, it should be put in context. Currently, only 15 of 482 California mu-nicipalities have passed some version of rent control, despite it already being legal to do so. Additional-ly, most cities have chosen only to have restrictions on pre-1980s built housing even though the law al-lows for restrictions on newer units. Lastly, if repealed, there wouldn t be blanket rent control across the state. Each individual municipality would still have to pass its own rent control ordinances. Many experts, including researchers from Berkeley, have argued that rent control is not the best solution for California s housing crisis. Self Storage We met with Extra Space Storage (NYSE: EXR), Life Storage (NYSE: LSI), and Jernigan Capital (NYSE: JCAP). New supply has been the biggest focus for the sector. JCAP expects new self storage facilities to be delivered in 2018, which compares to 352 in 2017 and 254 in Development yields for the industry have continued in the 8-9% range, which compares to class A self storage cap rates of around 5.5%. Therefore, it is too early to assume that new supply has peaked. The spread is still very attractive to merchant builders and, though banks are restrictive with self storage construction loans, companies such as JCAP have stepped in to help fund development. The self storage sector has outperformed the benchmark this year through June 20 as investors have bought into the thesis that the self storage REITs should be able to maintain SSRev growth in line with the historical average of +3-4%. According to one REIT, many investors expected the sector would expe-rience double digit negative growth. The operating results over the past few quarters have helped to alleviate these concerns, but new supply still remains a risk to maintaining positive growth. Unlike the apartment sector where new supply is typically leased up within a year, the average self storage proper-ty takes 3-4 years to stabilize. Thus, a storage facility would not only have to compete with a property built this year, but also with facilities built in 2016 and In response to the growing competition, the REITs have focused on technology to maintain their ad-vantage. LSI, in particular, has made some significant strides. One initiative is called Rent Now, which should enable customers to go through the entire rental process through their phone. This is squarely targeting Millennials and is currently in the testing phase. The other is Warehouse Anywhere, which focuses on corporate clients. The program enables customers to manage and store inventory at scale through LSI s portfolio and through the use of Intelligent Logistic Solutions distribution technology (LSI purchased the assets of Intelligent Logistic Solutions in 2016). Shopping Centers We met with Retail Opportunity Investments Corp. (NYSE: ROIC), Urban Edge (NYSE: UE), Regency Cen-ters (NYSE: REG), Retail Properties of America (NYSE: RPAI), Kite Realty (NYSE: KRG), Federal Realty (NYSE: FRT), DDR (NYSE: DDR), and Weingarten Realty (NYSE: WRI). While 2018 store closures and bank-ruptcies have been below 2017 closures, bankrupt tenants such as Southeastern Grocers and Toys R Us (Toys) continue to make headlines. Southeastern Grocers has already completed its bankruptcy restruc-turing with a limited impact (if any) on most of the REIT portfolios. In contrast, the Toys bankruptcy pro-cess has been disorganized, but most of the REITs we met with are already deep in conversations with potential backfill tenants for their Toys exposure. Some REITs have even won bids on their Toys leases to take advantage of the significant mark-to-market opportunity. For example, REG expects to bring in a dominant grocer and potentially achieve a 75% rent increase in a former Toys space in Aventura, Florida. The shopping center REITs have also been focused on closing the valuation gap between the public and private markets that has persisted for almost two years. For example, many REITs are selling non-core properties and reinvesting the proceeds into upgrading core properties. REG has commenced a stock repurchase program and others could soon follow. KRG is deleveraging its balance sheet toward ratios that are in-line with peers, while also enhancing its communication with investors. ROIC has chosen to implement a portfolio review to highlight its valuation discount. Historically, the company has been light on de-

3 tails of its development and redevelopment plans, but the company will release its findings in late 2Q 2018 or 3Q Lastly, DDR announced a spinoff of its lower growth assets into Retail Value Trust (NYSE: RVI), which will liquidate its portfolio over the next several years, thereby allowing investors to realize the public/private market arbitrage. Data Centers Despite their underperformance versus the benchmark year to date through June 20, 2018, the data center REIT CEOs were as upbeat as ever. For the third NAREIT conference in a row, we met with all five US data center REITs: Equinix (NASDAQ: EQIX), Digital Realty Trust (NYSE: DLR), CyrusOne (NASDAQ: CONE), CoreSite (NYSE: COR), and QTS Realty (NYSE: QTS). The main takeaway was that demand for car-rier-neutral multi-tenant data centers remains robust, with non-tech Fortune 500 enterprises taking a larger percentage of space in the more mature US and UK markets, and global cloud service providers dominating leasing in continental Europe, the Middle East, and Asia. Development remains a key driver for data center REITs, although the development yield on wholesale data centers has fallen from the low teens to the high single-digits over the past five years. REIT execu-tives believe current yields are appropriate after considering long-term re-leasing and obsolescence risk, and therefore do not expect them to fall much further. Unsurprisingly, industrial REITs were the most universally positive of any sector at NAREIT. We met with EastGroup (NYSE: EGP), Liberty Property Trust (NYSE: LPT), Rexford Industrial (NYSE: REXR), Prologis (NYSE: PLD), Terreno (NYSE: TRNO), First Industrial (NYSE: FR), and Monmouth (NYSE: MNR). Each team was surprised at how little new supply they had seen this cycle, especially in New York/ New Jersey, Southern California, the San Francisco Bay Area, Seattle, and Miami. They were excited about the pro-spects for merger and acquisitions in the space, given the strong private equity bid for last-mile industri-al warehouses and the PLD/DCT Industrial (NYSE: DCT) merger agreement at a premium valuation. All remained committed to low leverage and exiting non-core properties. Of note, management teams ranked central Los Angeles as the submarket with the highest future rent growth, supporting our thesis on REXR. Among property sub-types, REITs were most positive about ur-ban last mile, high-quality light industrial, and modern suburban big box segments, respectively. 2H 2018 REIT Outlook We came back from New York with a positive view on the sector as a whole, reassured that the negative performance in the first two months of the year was merely a bet on interest rates, and not evident of any degradation in REIT fundamentals. The strength in the economy, supported by consumer and cor-porate spending increases thanks to tax reform, has begun to filter through to the tenants of the REITs, most notably in the retail and residential sectors. With the recent drop in the 10 yr US Treasury yield to 2.8%, we revise our total return outlook for the year, assuming a steady 10 yr US Treasury yield and fur-ther dividend increases as REITs deliver cash flow results above prior guidance over the next several quarters. Our most positive meeting was with EQIX, who directly addressed investor concerns about its integra-tion of the Verizon/Terremark portfolio and the high multiple it paid for the Dallas InfoMart. An unex-pected first quarter moveout at Verizon s flagship Miami facility offset growth at other Verizon assets, but management expects Miami to be a tailwind by the end of 2018 as EQIX will deliver new capacity there just as several new subsea fiber optic cables drive even more US-Latin American data traffic through the EQIX-dominated market. Management explained that focusing on the InfoMart s in-place multiple ignored the property s significant lease-up and development upside, which should make it ac-cretive within a few years. Industrial

4 PERFORMANCE (%) as of 6/30/2018 Q YTD 1 Year 3 Year Ann ITD* REIAX 6.49% -2.48% 3.96% 6.84% 9.92% REIAX w/load 0.38% -8.06% -2.04% 4.74% 8.48% REICX 6.32% -2.81% 3.19% 6.06% 9.11% REIIX 6.63% -2.28% 4.22% 7.14% 10.19% MSCI US REIT Index 10.10% 1.19% 3.57% 8.06% 10.13% Performance data quoted represents past performance and is no guarantee of future results. Total return figures include the reinvestment of dividends and capital gains. Current performance may be low-er or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor s shares, when redeemed, may be worth more or less than original cost. For the most recent month end performance, please call (800) Returns showing less than one year are cu-mulative. The gross operating expense ratio for the Class A. C. and Institutional Shares are 1.59%, 2.34%, and 1.34% respectively. The net operating expenses after fee waiver and/or expense reimbursements are 1.35%, 2.10%, and 1.10% for the Class A, C, and Institutional Shares respectively. The contractual agree-ment between the Fund and the Advisor for fee waiver and/or expense reimbursement is in effect until April 30, Without the contractual agreement, performance would have been lower. Class T Shares were not offered prior to May 1, 2017, and are not currently available for purchase. Therefore no per-formance for Class T Shares is provided. Performance results with load reflect the deduction for Class A Shares of the 5.75% maximum front end sales charge. Class C Shares are subject to a contingent deferred sales charge of 1.00% when redeemed within 12 months of purchase. Performance presented without the load would be lower if this charge was reflected Fund performance may be subject to substantial shortterm changes. *ITD represents inception-to-date data; inception 12/31/2013. As of June 30, 2018, the Fund s Top 10 holdings were as follows: Simon Property Group (SPG): 7.54%, Equinix Inc. (EQIX) 6.15%, American Tower Corporation (AMT) 5.40%, Essex Property Trust (ESS) 5.38%, Camden Property Trust (CPT), 5.22%, AvalonBay Communities (AVB) 5.15%, Boston Properties (BXP) 5.13%, Cyrus One Inc. (CONE) 4.46%, Crown Castle International Corp (CCI) 4.26%, Kilroy Realty Corp (KRC) 4.12%. RISK AND OTHER DISCLOSURES: Before investing you should carefully consider the West Loop Realty Fund s investment objectives, risks, charges and expenses. This and other information about the Fund is in the prospectus and summary prospectus, a copy of which may be obtained by calling or by visiting the Fund s website at Please read the Fund s prospectus or summary prospectus carefully before investing. An investment in the West Loop Realty Fund is subject to risk, including the possible loss of principal amount invested and including, but not limited to, the following risks, which are more fully described in the prospectus: The Fund invests in Real Estate Investment Trusts (REITs), which involve additional risks compared to those from investments in common stock. REITs are dependent upon management skills; generally may not be diversified; and are subject to heavy cash flow dependency, defaults by borrowers, self-liquidation, and tax risks. Investments in REITs involve risks including, but not limited to, market risk, interest rate risk, equity risk and risks related to the real estate market. The Fund will be closely linked to the performance of the real estate markets. The Real Estate industry is subject to certain market risks such as property revaluations, interest rate fluctuations, rental rate fluctuations and operating expenses, increasing vacancies, rising construction costs and potential modifications to government regulations. REITs are subject to declines in the value of real estate as it relates to general and local economic conditions and decreases in property revenues. Continued disruptions in the financial markets and deteriorating economic conditions could adversely affect the value of the Fund s investments. As a non-diversified fund, the Fund may focus its assets in the securities of fewer issuers, which exposes the Fund to greater market risk than if its assets were diversified among a greater number of issuers. The Fund s investments will be concentrated in the real estate sector. The focus of the Fund s portfolio on a specific sector may present more risks than if the portfolio were broadly diversified over numerous sectors. Foreign investment risk. These risks include currency fluctuations, economic or financial instability, lack of timely or reliable financial information or unfavorable political or legal developments. Foreign companies are generally subject to different legal and accounting standards than U.S. companies. The Fund invests in small and mid-cap real estate companies, which may involve less trading and, therefore, a larger impact on a stock s price than customarily associated with larger, more established company stocks. In order to qualify for the favorable tax treatment generally available to regulated investment companies, the Fund must satisfy certain diversification requirements. The Fund s strategy of investing in a relatively small number of securities may cause it inadvertently to fail to satisfy the diversification requirements. If the Fund were to fail to qualify as a regulated investment company, it would be taxed in the same manner as an ordinary corporation, and distributions to its shareholders would not be deductible by the Fund in computing its taxable income. Distributed by Foreside Fund Services, LLC.

5 The Fund may not be suitable for all investors. We encourage you to consult with appropriate tax and financial professionals before considering an investment in the Fund. The MSCI US REIT Index is a free float-adjusted market capitalization index that is comprised of equity REITs. With 148 constituents, it represents about 99% of the US REIT universe and securities are classi-fied in the Equity REITs Industry (under the Real Estate sector) according to the Global Industry Classifi-cation Standard (GICS ). It however excludes Mortgage REIT and selected Specialized REITs. The RMZ index symbol refers to the price-return basis of the MSCI US REIT Index while the RMS index symbol re-fers to the total-return basis. One cannot invest directly in an index. Development Yield is a metric used in real estate development. Development Yield is calculated as the project s net operating income (or sometimes cash flow from operations) at stabilization divided by the total project cost. Cap Rate is the rate of return on a real estate investment property based on the income that the property is expected to generate. The ratio consists of Net Operating Income (NOI) to property asset value. The views in this material are intended to assist readers in understanding certain investment methodol-ogy and do not constitute investment advice. The views in this material were those of the Fund s Sub-advisor as of the date written and may not reflect its views on the date this material is first disseminated or any time thereafter. Liberty Street Advisors, Inc. is the advisor to the Fund. The Fund is part of the Liberty Street family of funds within the series of Investment Managers Series Trust.