LaSalle Debt Investors

Item 5 - Fees and Compensation
Fees are determined and assessed in a manner specific to each Fund. For the specific fees
charged by any specific Fund, please refer to the Governing Documents for that Fund.
The fees paid by the Funds are typically not negotiable; however, LDI may agree to
discounts on the fee based on the Fund investor composition, and/or rebate some portion
of such fee to certain investors or investor classes. Certain fees may be deferred or waived
from time to time at the discretion of LDI.

1. Management Fees

LMREC IV currently pays annual base management fees equal to 1.5% of the total
commitment amount during the investment period (or some portion thereof), net
invested capital (measured on a historic cost basis) thereafter. Depending on the size of
an investor’s commitment to a specific Fund, a portion of such base management fee may
be rebated by LDI directly to either the Fund (in the case of LMREC IV and V below) or a
particular Fund investor. The management fees are charged and paid quarterly in
advance, as described in each Fund’s offering materials.

Some Investors in LMREC IV have entered into a side letter with LDI that provides a
rebate that is variable. The amount of the base management fee rebate can be reduced by
a percentage of distributions made by LMREC IV; however, in no case will the total base
management fee net of rebates exceed the base management fee prior to any rebate or
offset.

In the case of LMREC IV, LDI has structured the fund to include a rebate to LMREC IV if
certain origination targets are not met during the initial 2 years of the investment period

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of such fund. In the first year of LMREC IV, as measured from May 2017 to May 2018,
LMREC IV failed to meet the origination target and LDI rebated to LMREC IV a portion
of the base asset management fee. In the second year governed by such arrangement the
origination target was met and no such refund was due or paid from LDI to LMREC IV.
This rebate is in addition to any investor specific rebate described in the prior paragraph.

In the case of LMREC V, LDI structured the fund with a base asset management fee that
is calculated on the average of discounted fees to which various Investors were eligible.
The non-discounted rate was set at 1.5% of committed capital for the first 3 years and 1.5%
of invested capital thereafter. Investors qualified under one or more criteria for a
discounted management fee rate. The criteria for a discount included, commitment size,
date and investment history with LIM or LDI. The blended discounted rate for all
investors is what the Fund pays to LDI (and such fee adjusts on a quarterly basis as new
investors commit to the Fund). The estimated economic benefit of the discount was
conveyed to the specific eligible investor with a discounted share purchase price
applicable to the first investment in LMREC V of such investor.

2. Acquisition and Disposition Fees

Through December 31, 2025 none of the REITs have been charged acquisition or
disposition fees by LDI, nor does any existing fund documentation provide for any such
fee or expense.

3. Incentive Compensation

LDI may receive a distribution of a portion of the REIT income by the REITs as an
incentive fee, which fee is deducted from the Fund’s distributable proceeds. The incentive
compensation is dependent on Fund performance and represents a percentage of the
amount of profits otherwise distributable to each investor. Each Fund has established a
distribution waterfall describing how distributions will be paid to the underlying investors
and LDI. Investors typically receive a preferred return on their investment prior to the
distribution of any incentive compensation paid to LDI. The preferred return is generally
7-8% per annum depending on market conditions at the time the investment was
structured.

LDI may receive a performance fee prior to repayment in full of investor capital. If the
Fund performance subsequently declines, then LDI will be required to rebate an amount
up to the full amount paid to LDI in incentive compensation (a “clawback”).

The distribution waterfalls are further described in the Governing Documents for each
Fund. As of December 31, 2025 no fund has accrued an obligation to pay incentive fees
to LDI, and any incentive fee previously paid has been rebated back to the fund.

Performance-based compensation received by LDI is structured to comply with Rule 205-
3 under the Investment Advisers Act of 1940 (“Advisers Act”), to the extent applicable.

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4. Liquidity

LDI generally does not reinvest capital of a Fund in new assets (i.e. new
originations/acquisitions) other than during the investment period for such Fund.
However, distributable net proceeds may be reinvested in existing investments of the
Funds after termination of the investment period, including investments in the Fund’s
financing subsidiaries (during such subsidiaries’ revolving investment period, or as
necessary to achieve compliance with the financing agreements that govern the activity of
such subsidiary) and used for operating expenses of the Funds.

5. Organizational and Offering Fees and Expenses

The Funds will typically bear all organizational and offering fees and expenses incurred
in their formation, in many cases limited by a percentage of committed capital and/or a
specified amount, as disclosed in the Funds’ Governing Documents. The Funds pay all
third-party costs and expenses relating to the Fund business, including costs of
originating, evaluating, acquiring, owning, hedging, financing, operating, reviewing,
managing and disposing of any Fund asset or potential Fund asset (and shall reimburse
LDI for any such costs and expenses paid or incurred by LDI and its affiliated persons),
...

Item 7 - Types of Clients
LDI provides discretionary investment advisory services to the Funds, which are its
clients. Investors in the Funds include, but are not limited to, pension plans,
endowments, corporate and business entities, foundations, trusts, and high net worth
individuals, as well as pooled funds sponsored by LaSalle, that are comprised of
employees. The Funds have minimum capital commitments for investors, as specified in
the Governing Documents for each respective Fund, and which are negotiable by LDI.
Each investor is required to meet certain suitability qualifications; examples may include
being an “accredited investor” and “qualified client” or a “qualified purchaser” within the
meaning set forth under the federal securities laws.