Clarion Partners LLC

ITEM 5 – FEES AND COMPENSATION

With respect to all types of clients, Clarion, including its affiliates, is compensated with an asset management
fee. Clarion also receives additional fees, as generally described below. Details of how these fees are charged,
calculated and governed for each client, as well as the terms under which they may be changed or waived, are
contained in, and subject to, the applicable Fund Documents or IMA.

        Asset Management Fees.        The asset management fee for investment advisory services is earned as
        either:

            a) a percentage of assets under management, ranging from 0.20% to 2.00%, depending on
               account size and the client’s circumstances, which can also be based on gross or net assets
               under management (i.e., including or excluding debt/liabilities);

            b) a percentage of net operating income ranging from 0.67% to 7%, depending on cumulative
               investment dollar thresholds, with or without minimum/maximum fee limits, as well as other client
               specific criteria; or

            c) a percentage fee in other situations related to investment or acquisition price or on other types of
               fee bases, such as invested capital and investor commitments.

        SMA Clients and Funds generally pay fees in arrears at the end of each calendar quarter based on the
        value of assets or net operating income during the previous quarter.

        Asset management fees generally apply to client assets other than cash. Clarion also charges a
        separate cash management fee as permitted by the applicable governing documents, often as a
        percentage of consolidated cash and short-term investments managed on behalf of the client.

        Acquisition and Disposition Fees. Acquisition fees, when applicable, are earned by Clarion for
        facilitating the acquisition of investment assets for a client and generally are based on a percentage of
        the purchase price of the asset. Disposition fees, when applicable, are earned by Clarion for the
        disposition of investment assets and generally are fixed fees on a per transaction basis or based on a
        percentage of the sale price of the asset.

        Performance-Based Fees. Performance-based distributions or fees, when applicable, are earned by
        Clarion based on achievement of specified investment returns or capital appreciation of the assets of the
        client and as permitted by applicable law. See Item 6 below for more information about performance-
        based fees and related conflicts.

        Property Management & Construction Management and Development Fees. In most cases third
        parties, and not Clarion or its affiliates, are hired to provide property management, construction
        management and development services. However, in some circumstances, Clarion or its affiliates are
        hired to provide some or all of the property management, construction management or development
        services to a particular client property or project. In circumstances where Clarion affiliates CP Industrial
        Management, LLC (“CPIM”) or Gables Residential (“Gables”) are engaged to provide construction or
        property management services (which include leasing services), these affiliates will earn additional fees
        for such services. Where Clarion employees forming the Clarion Partners Industrial Group (“CPIG”) are
        hired to develop or manage construction, Clarion will earn additional fees. Clarion has policies and
        procedures to monitor the selection of Clarion or its affiliates to provide services and the fees charged
        for the services. See Item 10.

        Other Fees. Where applicable, additional fees are earned by Clarion or its affiliates for administration
        or other types of services, such as financing and sales brokerage services.

As a general matter, Clarion does not offset its asset management fees by the amount of any of these
performance-based fees, property management fees, construction management and development fees or other
additional fees paid to Clarion or its affiliates. As a result, in some circumstances multiple fees are paid to
Clarion and its affiliates in connection with Clarion’s management of client assets in SMAs and Funds. Policies

for charging asset management fees on cash are tailored to each Fund and SMA and are described in the
applicable Fund Documents or IMA.

Funds and SMAs that invest in other Funds, registered funds (such as money market funds), unregistered funds,
real estate investment trusts and other securities or investments for cash management, investment or other
purposes will pay, indirectly, the fees and expenses of such investments. Clarion generally does not offset the
asset management or other fees of the Fund or SMA by any of the fees or expenses of these underlying
investments. Clarion can in some circumstances select affiliated or unaffiliated underlying investments, and it
has an incentive to select affiliated investments, as a result of which Clarion or its affiliates would earn more fees
as compared to unaffiliated investments. Clarion seeks to mitigate this conflict by following established
investment guidelines and investment governance for each investing Fund and SMA.

See Item 10, and the applicable Fund Documents, for important additional information about fees and other
compensation to Clarion and affiliates, and related conflicts. See Item 6 for more information about performance
fees.

Fund and SMA Fees Generally

Fees for each Fund are described in the respective Fund Documents. Fees for the SMAs are described in the
respective IMAs. Fees are negotiated in some circumstances. Factors Clarion considers in negotiating fees
include but are not limited to: the investment strategy and complexity of services required, the type of assets
...

ITEM 7 – TYPES OF CLIENTS

Clarion provides real estate investment management services to clients (the Funds and SMA Clients).

Investors in privately offered Funds generally include various types of institutional investors, such as pension
funds, as well as high net worth individual investors. The investors in other Funds generally include similar types
of investors, as well as natural persons who are not high net worth investors. Fund investors include both U.S.
and non-U.S. persons.

For Fund investors, the minimum investment amount varies and is outlined in the applicable Fund Documents.
The minimum investment amount for Clarion’s institutionally focused privately offered Funds generally ranges
from $2,500,000 to $10,000,000, with lower minimums in some Funds. In most cases, Clarion has the authority
to change or waive any minimum investment requirements in accordance with the applicable Fund Documents.

Investors interested in investing in a Fund should refer to the respective Fund Documents for more information
specific to the Fund.

Each SMA Client’s investment strategy is tailored to the client’s investment needs. SMA Clients include public
pension funds, sovereign wealth funds, wealth managers, endowments, corporate pension plans, insurance
companies and other institutional investors. SMA Clients include both U.S. and non-U.S. persons.

For SMAs, the minimum account size is generally $100,000,000. SMA minimum account sizes may be
negotiated.