RREEF receives a combined evaluation ranking of B+, which results in our retention recommendation.

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1 To: Investment Committee From: Douglas C. Wesley, CFA Date: November 19, 2009 Re: RREEF REIT Real Estate Annual Review Overview RREEF Real Estate Securities Advisors (RREEF) has managed a core, concentrated REIT portfolio for SURS since April SURS initially funded RREEF with $25 million. The portfolio received additional allocations of $45 million in April 2001 and $50 million in February In September 2005, $50 million was withdrawn from the portfolio for rebalancing purposes. As of September 30, 2009, RREEF managed $84 million in a domestic REIT account for SURS, which represented approximately 21.4% of the REIT asset class and 0.7% of the total SURS investment program. In December 2006, the Board approved an allocation to global REITS to better reflect the global REIT marketplace and to provide additional opportunities for diversification and enhanced returns. As part of this new allocation, the Board approved the transfer of approximately $88 million from the RREEF domestic REIT account to fund a newly established global REIT account. The new global REIT account was funded in July As of September 30, 2009, RREEF managed $56 million in a global REIT account for SURS, which represented approximately 14.3% of the REIT asset class and 0.5% of the total SURS investment program. RREEF receives a combined evaluation ranking of B+, which results in our retention recommendation. Organizational Assessment The table that follows lists the weights we assign to various organizational issues and RREEF s score in each area. Scores are based on a scale of 1.0 to 5.0, where a 5.0 denotes outstanding, a 1.0 denotes poor, and a 3.0 indicates average. Weighting Score Product Organization 20% Staffing 30% Clients/Assets 10% Investment Process 30% Client Servicing 10% Total Score 3.80 In October 2009, Staff and EnnisKnupp conducted an on-site due diligence meeting with RREEF at its Chicago offices. The firm's organizational assessment score of 3.80 rates a B and is unchanged from last year. Following is our analysis of each of the categories in which the manager is ranked.

2 Organization RREEF is an indirect wholly-owned subsidiary of Deutsche Bank AG. RREEF is the brand name of the Alternative Investments division for the asset management activities of Deutsche Bank, which includes real estate, infrastructure, hedge funds, and private equity. In total, the RREEF Alternative Investments division manages approximately $87 billion in assets. There were no changes in RREEF s ownership structure during the past year. The primary compensation for RREEF s key employees is the annual bonus plan, which includes a deferred Restricted Equity Unit component. All RREEF professionals participate in an annual bonus plan. The level of bonus compensation awarded is determined by (i) individual performance, (ii) regional performance, and (iii) total firm profitability. Staffing John Robertson continues to lead the overall global securities team. RREEF Securities utilizes a team approach to portfolio management, employing a total of 37 investment professionals. RREEF s global real estate securities strategy is implemented by regional teams, as shown in the table below. Region Team Head # of Portfolio Managers # of Other Professionals North America John Vojticek/Jerry Ehlinger 3 10 Europe John Hammond 2 5 Asia-Pacific Daniel Ekins 6 10 In addition, the RREEF Securities team continues to utilize RREEF direct real estate professionals to assist in establishing the property sector weightings for the model portfolio. Over the past year, RREEF had a net loss of two staff to the securities teams, adding one professional and losing three. Christian Schroeder was added to the European analyst team in September 2009 to fill a vacancy. The two individuals not replaced were both analysts on the U.S. securities team. The Compliance and Legal group at RREEF has established policies which prevent publishing the names of employees that have departed due to confidentiality issues. Clients/Assets As of September 30, 2009, RREEF real estate securities group managed 69 accounts for a total of $7.9 billion, compared to $11.9 billion in total REIT assets last year. Since September 2008, REEF gained 1 account and lost eight, resulting in a net decrease in assets of $549 million. Seven of the eight account losses were domestic mandates while the sole account gain was in the global strategy. As of September 30, 2009, the portfolio management team manages seven different REIT strategies, including the Core Concentrated and Global strategies, in which the SURS accounts are invested. The table below includes a breakdown of assets under management in each of the REIT strategies managed by the RREEF Securities Group.

3 Assets Under Management Strategy ($ s in millions) Core Concentrated $1,756 Core Diversified 1,834 U.S. Specialty 101 Global 3,056 Global Ex-U.S. 217 Global Infrastructure 85 Domestic European & Asian-Pac 858 TOTAL $7,907 RREEF does not expect any capacity issues with the management of its global real estate securities strategy. However, for liquidity reasons, growth in assets under management must be sensitive to the size of the market. There is ample capacity for additional allocations in Europe, Asia, and Australia. Given the size of its existing North American real estate securities platform, however, RREEF maintains a more reserved posture toward growing the business. The firm expects that the trend toward global real estate investment strategies will continue to gain momentum and that existing and prospective clients will increasingly seek to diversify their real estate portfolios and manage potential volatility by investing in global REIT strategies. In order to preserve investment capacity to meet this objective, RREEF has, from time to time, closed its North American Securities investment program to new separate account business. RREEF will continue to accept additional contributions from existing separate clients in the U.S. REIT strategy. Investment Process U.S. REIT Portfolio RREEF employs a combination of top-down and bottom-up methods in its management of portfolios. The Strategic Investment Committee, whose membership consists of five senior members from acquisitions, client relations, portfolio management, and research areas of RREEF, as well as the portfolio management team from the securities area, establishes sector allocation targets on a quarterly basis. The Committee is responsible for setting guidelines for the RREEF Securities model portfolio with respect to property type weightings. The keys to the sector allocation process involve (1) discussing real-time trends and future expectations for property type sectors from the direct side participants, (2) comparing these to the public markets views, and (3) positioning the portfolio to take advantage of discrepancies. John Vojticek is the Committee Chair of the group. RREEF Securities emphasizes a fundamental, property level analysis to company valuation. The earnings model is driven by fundamental real estate analysis, while also using a top-down perspective to target specific opportunities. The underlying value for the company as well as the earnings growth potential over the next few years is evaluated.

4 The real estate securities analysts search out undervalued securities that fit the model portfolio. The analysts develop detailed three-year models that project funds from operations, expected dividend growth, and expected share price appreciation. RREEF s analysts are specialized by property type, and each security is modeled using an appropriate discount that captures the various types of risks associated with each security. The securities are then ranked according to the relative attractiveness. RREEF s securities portfolio management team approves each of the potential candidates prior to being added to an account. The portfolio management team meets at least weekly to review the holdings and adjust them accordingly. Two distinct components of RREEF s investment process exist: The sector allocation process results in overweighting, underweighting or market weighting the property type sectors, and Stock selection is the result of company modeling plus valuation work, which leads to a forecast of total return for each individual company in RREEF s investment universe. The portfolio s tracking error is expected to be between 2-4%. Since inception, the portfolio s tracking error has been 2.7%. Portfolio turnover was approximately 114% during the year, somewhat higher than expected due to higher market volatility and a large number of equity issuances over the past year. Usage of Minority- and Women-Owned Brokerage Firms SURS has set minimum expectation levels for its managers use of minority- and womenowned brokerage firms. Subject to best execution, SURS domestic equity managers are expected to execute at least 25% of their transactions utilizing minority- and women-owned broker/dealers. For the one year ending September 30, 2009, the RREEF U.S. REIT portfolio directed 36.7% of its brokerage commissions to minority- and women-owned broker/dealers. Global REIT Portfolio RREEF combines a top-down regional allocation process with an active bottom up approach to selecting securities. The top-down regional allocation process involves the analysis of both the economic environment (including GDP, consumption indicators and interest rates) in each region and the current dynamics (demand, supply and vacancy) in each property sector in each region. Asset allocation between the four major regions (North America, Europe, Asia and Australia) in which the strategy invests is established by the Global Portfolio Allocation Committee (GPAC), which is comprised of the following senior portfolio managers of each region: John Robertson CIO and Head of Global Real Estate Securities Daniel Ekins Chairman of GPAC Asad Kazim Global Strategist John Vojticek/Jerry Ehlinger Joint Lead Portfolio Managers of Americas

5 John Hammond Lead Portfolio Manager of Europe William Leung Lead Portfolio Manager of Asia Ross McGlade Joint Lead Portfolio Manager of Australia The final decisions on the allocations to each region are made by the Chairman in close consultation with the Global Strategist. The regional portfolio management teams are responsible for constructing their regional portfolios. In doing so, each regional team sets a macro strategy consistent with the global view targeting desired macro allocations to countries, sectors, size or other thematics. Once allocations have been made to the regions, local stock selection is delegated to the regional portfolio management and analyst teams. In evaluating individual stocks, regional portfolio managers consider real estate securities with strong cash flow or asset value growth allowing for sustained dividend growth and/or increased shareholder equity. Assessments made against these various financial criteria drive a ranking of stocks and a buy/sell list within each region. John Robertson, as Global Portfolio Manager and the regional portfolio managers monitor the portfolios on a regular basis relative to their benchmark exposures and investment guidelines. This provides a basis for global oversight of regional activities and the ability to monitor consistency of global exposures with macro views established in the GPAC meeting. Usage of Minority- and Women-Owned Brokerage Firms SURS has set minimum expectation levels for its managers use of minority- and womenowned brokerage firms. Subject to best execution, SURS global equity managers are expected to execute at least 17.5% of their transactions utilizing minority- and women-owned broker/dealers. For the one year ending September 30, 2009, the RREEF Global REIT portfolio directed 0% of its brokerage commissions to minority- and women-owned broker/dealers. RREEF is working through a change in the personnel reporting brokerage information to SURS and the global REIT information is not yet reconciled. Client Service RREEF assigned SURS a new client service representative, Mr. Dennis Martin, in October SURS staff is satisfied with the responsiveness of the RREEF team over the past year. Performance U.S. REIT Portfolio RREEF s U.S. REIT portfolio returned -27.9% for the 12-month period ending September 30, 2009, exceeding the Dow Jones U.S. Select Real Estate Securities Index (RESI) by 142 basis points. Returns for the three-year and five-year periods comfortably exceeded the benchmark by 136 basis points and 100 basis points, respectively. Since inception in March 2000, the RREEF U.S. REIT portfolio has exceeded the benchmark by 210 basis points on an annual basis. Over each of these time periods, RREEF s performance has benefited primarily from strong stock selection. This level of performance since inception earns an A, equal to last year s rating.

6 Global REIT Portfolio During the twelve-month period ending September 30, 2009, the Global REIT portfolio managed by RREEF surpassed its benchmark by 280 basis points. Both stock selection and regional allocation benefited performance for the past year. From inception through September 30, 2009, the portfolio has returned -16.8%, exceeding the return of the benchmark, the FTSE EPRA/NAREIT 1 Developed Index by 34 basis points. EnnisKnupp s Investment Manager Rating System We have applied EnnisKnupp s Investment Manager Rating System for manager selection and evaluation to RREEF. The results of this evaluation fall in the Good category, which indicates Retain. Areas in which RREEF scored well were Skill, Product Fit and Product Importance. Consultant Comments RREEF is an approved manager and thus is reviewed on an in-depth and on-going basis by EK professionals. EnnisKnupp s real estate research group has met with RREEF professionals in our offices and on-site over the past year. The most recent on-site visit in Chicago was conducted in October 2009 with the securities teams lead investment professionals. The areas in which RREEF is strong relating to REIT management are proof of ability to add excess value over extended periods of time, low cost structure, and a high degree of product fit with SURS needs. The RREEF domestic and global portfolios have outperformed the universe of managers employing similar strategies over both the short and long term. We continue to support RREEF s practice of avoiding soft dollars in its real estate securities. We think this is a positive practice as it better aligns the manager with the client s best interests. The depth of talent and experience of the portfolio manager and team continues to impress us. EnnisKnupp supports the recommendation to retain RREEF as both a domestic and global REIT manager. Recommendations SURS staff and EnnisKnupp jointly recommend: That RREEF be retained as a U.S. REIT manager; and That RREEF be retained as a global REIT manager. 1 European Public Real Estate Association / National Association of Real Estate Investment Trusts

7 Return Exhibit 22 Ratio of Cumulative Wealth RREEF America U.S. REIT March September Dow Jones U.S.Select Real Estate Securities Index Feb-00 Feb-01 Feb-02 Feb-03 Feb-04 Feb-05 Feb-06 Feb-07 Feb-08 Feb RREEF Risk/Return (Annualized) March September 2009 RREEF 10 Dow Jones U.S. Select Real Estate Index 5 0 T-Bills Risk

8 RREEF Exhibit RREEF U.S. REIT Rolling 3 Year Returns 80 Observations (10) (20) (30) (30) (20) (10) Dow Jones U.S. Select Real Estate Index HISTORICAL RETURNS (BY YEAR) RREEF U.S. REIT DJ U.S. Select RESI Index Return Return Return Difference 2000 (10 months) (9 months) Trailing 3-year Trailing 5-year Since Inception (02/28/00)

9 Return Exhibit T-Bills RREEF Global Risk/Return (Annualized) August September RREEF Global FTSE EPRA/NAREIT Developed Index Risk HISTORICAL RETURNS (BY YEAR) RREEF Global REIT FTSE EPRA/NAREIT Dev Return Return Return Difference 2007 (5 months) (9 months) Since Inception (07/31/07)