Ascentris LLC

Item 5: Fees and Compensation

Fees

As compensation for its real estate investment advisory services, Ascentris or an affiliated entity receive
one or more of the following fees from Clients pursuant to the applicable management agreement or offering
and organizational documents.

    (i)      Asset management fees equal to a percentage of committed capital, “net assets,” invested
             capital, or a stated figure per annum.
    (ii)     Performance-based allocations (as carried interest) subject to the Client achieving a target
             return; and/or
    (iii)    Reimbursement of expenses incurred on behalf of a Client.

Fees and other compensation are negotiable in certain circumstances, and arrangements with any Client
may vary. Fees charged to each Client will vary based upon the complexity of services required, the type
and amount of assets under management, and the extent of reporting or other administrative services
required. Clients’ equity interests typically are held by institutional investors that are “qualified purchasers”
as that term is defined in Section 2(a)(51)(A) of the Investment Company Act of 1940, as amended. The
timing of fee payments, minimum investment amount and termination rights are set forth in the Clients’
written management agreement, or governing documents for the Client.

Asset management fees are generally paid quarterly in advance by Clients, and are calculated based on
either committed capital, “net assets” or invested capital. Performance-based allocations, discussed below
in Item 6, are generally made as investments are realized and/or capital is distributed.

Deduction of Fees from Client Accounts

Ascentris is also typically authorized by Clients’ governing documents to deduct fees directly from the
Client’s custodial account.

Other Fees and Expenses

Clients typically bear the costs associated with acquiring, developing and managing real estate investments
(including costs related to the establishment and administration of acquisition vehicles) and are required
to reimburse Ascentris for such costs. Such expenses may include, but are not limited to, legal, tax,
research, accounting, valuation and audit expenses, insurance, and costs related to purchasing, operating
and selling portfolio investments (e.g., due diligence, negotiating deals, travel expenses, idea sourcing).
Ascentris pays its own employees’ salaries, overhead and operating expenses. The list of expenses is not
exhaustive. Each Client’s offering materials and organization documents or management agreement, as
applicable, include a detailed description of fees and expenses to be borne by the Client.

To the extent any Client’s operating expenses are paid or incurred by Ascentris on behalf of a Client, such
expenses shall be reimbursed by the Client. Clients that do not pay certain operating expenses that other
Clients pay, may benefit from services paid for by other Clients or Ascentris. Ascentris determines, in its
sole discretion, whether an expense is to be categorized as an expense of one Client or another or an expense
of Ascentris and makes these determinations in accordance with provisions in Client governing documents.
This analytical process is inherently subjective and Ascentris may be viewed as biased in making such

Ascentris Form ADV Part 2: Firm Brochure

determinations. The allocation of expenses presents an inherent conflict of interest, as different allocations
would result in Clients and Ascentris bearing more (or less) expenses.

Ascentris Clients also could incur expenses related to real estate regulatory and environmental issues, as
well as the costs of other service providers and intermediaries, such as investment banks, that may be
involved in purchasing and selling portfolio investments. Ascentris’ fees are exclusive of these costs, as
well as other transaction fees, custodial fees and other related costs and expenses, all of which are incurred
by the applicable Ascentris Client (either directly or indirectly if the expenses are paid by a portfolio
company of the Client). The investment strategies Ascentris employs for Clients generally do not involve
the purchase or sale of publicly traded securities, and as such, do not typically incur securities brokerage
commissions, except for hedge instruments associated with property-level financing. See Item 12 for
additional information regarding the factors considered in selecting service providers for transactions, and
in determining the reasonableness of their compensation.

Fees Paid in Advance

Clients typically pay asset management fees to Ascentris quarterly in advance. If the last management
period with respect to a Client ends prior to the last day of a quarter, then a pro rata portion of the prepaid
management fee will be refunded to such client based on the number of days elapsed in such period and
the number of days remaining in such period.

Compensation for the Sale of Securities

Neither Ascentris nor any of its supervised persons accept compensation for the sale of securities or other
investment products to any Client.

Item 7: Types of Clients

Ascentris provides real estate-related investment advisory services to Clients organized as a limited liability
company or limited partnership. The Clients’ investors typically are comprised of institutional investors,
state and local government or pension plans, high-net-worth, and other highly sophisticated investors.

The minimum capital commitment by an investor to a Client (i.e. one of Ascentris’ funds) typically is
$250,000 – $1,000,000, depending on the Client. However, Ascentris has the right to accept smaller
minimum investments as set forth in the Client’s governing documents.