FPA Real Estate Advisers Group LLC

Item 5. Fees and Compensation

FPA REAG receives a fee (the “Fund Management Fee”) in exchange for investment and other advisory services
provided. The Fund GPs earn performance-based compensation (“Carried Interests”) from the Funds.

Fund Management Fees in respect of the AOF Funds are payable in advance in equal quarterly installments
on the first business day of each quarter, as follows:

    (a) The quarterly Fund Management Fee is .375% of the AOF Fund’s total capital commitments (Fund
        Management Fees are not, however, charged on the AOF Fund’s reserve funds) beginning on the
        first day of the calendar quarter in which the first investment is closed (the “Investment Period
        Start Date”) and ending on either the date of termination of the Investment Period (i.e., the period
        during which the Fund in question is permitted to make new investments) or the date that is 24
        months following the Investment Period Start Date, depending on the Fund.

    (b) During the Operating Period (i.e., the period commencing on the close of the Investment Period
        or such date that is 24 months from the Investment Period Start Date and ending on the date that
        the AOF Fund is terminated), the quarterly Fund Management Fee is .375% of the Fund’s

                                                                               FPA Real Estate Advisers Group, LLC
                                                                                                Form ADV Part 2A

        aggregate invested capital after the deduction from invested capital of distributions (as a result of
        a sold or recapitalized investment) and permanent write-offs.

The AOF GPs receive a Carried Interest of 20% of the profits attributable to the disposition of portfolio
investments (except in respect of interests in the HoldCo held by managers or employees of FPA REAG
and its affiliates). In accordance with each Fund’s governing documentation, a Carried Interest is
calculated after a preferred return ranging from 9% to 10%, depending on the Fund, is achieved.

Fund Management Fees in respect of the Core Plus Funds are payable to the relevant Core Plus GP in
arrears in equal quarterly installments on the first business day of each quarter as follows:

    (a) The quarterly Fund Management Fee is 7% of the total Net Operating Income (“NOI”) of the
        aggregate portfolio derived from the relevant Fund’s investments for such calendar quarter. NOI
        is defined as gross operating receipts reduced by non-capital related operating expenses prior to
        debt service.

    (b) The Fund Management Fee is payable beginning with the first calendar quarter in which an
        investment is made and will continue to be payable until all investments have been sold or
        otherwise disposed of pursuant to the Limited Partnership Agreement.

The Core Plus GPs receive an acquisition fee of 0.5% of the gross purchase price of an investment, not to
exceed $300,000 per investment, and a disposition fee of 0.25% of the gross sale price of an investment,
not to exceed $150,000 per sale. The acquisition fee and disposition fee do not offset Fund Management
Fees.

Other than the Fund Management Fees, Carried Interest, acquisition fees and disposition fees described
above, affiliates of FPA REAG may receive the following additional fees that do not offset the Fund
Management Fee:

Property Management Fee

Each Property-Owning LLC will pay to Trinity Property Consultants, LLC (the “Property Manager”), and affiliate
of FPA REAG and the Fund GPs, a monthly fee for property management services (“Property Management
Fee”) equal to: (i) gross rents collected (“Gross Rents”) and gross income received from sources other than
unit rentals multiplied by four percent (4%), provided the foregoing fee on Gross Rents collected shall be
capped at the total number of dwelling units multiplied by $1,000; plus (ii) an amount equal to any Gross Rents
collected above the 4% Ceiling multiplied by three and one-half percent (3.5%).

Supervision and G&A Fees

Each Property-Owning LLC may contract with Redwood Construction, Inc. (“Redwood”), a licensed general
contractor and affiliate of FPA REAG and the Fund GPs, in connection with the renovation and improvement
of investments properties. In exchange for such services, Redwood receives a general contractor fee of ten
percent (10%) of renovation hard costs and four percent (4%) general and administrative fees (“G&A Fees”) in
accordance with the renovation budget. If a Fund engages an unaffiliated general contractor for renovation
of the investments, Redwood only receives a supervision fee of five percent (5%) (“Supervision Fee”) of
renovation hard costs and the G&A Fee, provided that the combined Supervision Fee and G&A fee do not
exceed the total fees that would have been payable to Redwood if it had itself performed the work.

                                                                                FPA Real Estate Advisers Group, LLC
                                                                                                 Form ADV Part 2A

Other than the fees described above, FPA REAG, the Fund GPs and their affiliates are not entitled to collect
any directors’ fees, closing fees, transactions fees or other special fees. In the event that such other fees are
received by FPA REAG, the Fund GPs or any of their affiliates, such fees will offset the Fund Management Fee.

In addition to the fees described above, each Fund also bears all of its operating expenses, including legal,
organizational and other expenses, including, without limitation, (a) all costs and expenses incurred in
connection with the formation and organization of, and sale of interests in the Fund, its REIT-Owner or Non-
REIT counterpart and any parallel fund, including all out-of-pocket legal, accounting, printing and reasonable
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Item 7. Types of Clients

FPA REAG provides investment management services to privately offered pooled investment vehicles that are
typically structured as Delaware limited partnerships. The minimum capital commitment for investments in
our Funds is $1,000,000, subject to lesser amounts being accepted by FPA REAG or the Fund GPs, at their
discretion, or as otherwise specified in the Fund’s governing documents.

Investors in the Fund generally include high-net-worth individuals, public and private pension funds,
foundations and endowments, sovereign wealth funds and foreign entities.