University of Connecticut

March 28, 2009

Tiffany Burns Gherlone

GENERALLY ACCESSIBLE

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Table of Contents

SECTION 1 Research organization

2

SECTION 2 US market review

8

SECTION 1

Research organization

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Investment process

All key business units have representation on the investment committee

Portfolio managers are the internal agents of the client

Research provides input to the setting of portfolio and investment strategies

“Enhanced indexing” is used to set portfolio strategy framework for core portfolios

Acquisition team sources prospective investments and champions the underwriting

Multidisciplined approach towards acquisition and disposition

Asset managers are involved throughout the acquisition process and are responsible for delivering proforma performance

Portfolio managers direct portfolio and fine-tune/rebalance as needed

Target Market Selection/ Required

Return Analysis

Target Market Selection/ Required

Return Analysis

Portfolio Strategy

Formulation

Portfolio Strategy

Formulation

Ongoing Portfolio

Analysis and Repositioning

Ongoing Portfolio

Analysis and Repositioning

Multidiscipline Underwriting

Multidiscipline Underwriting

Investment Sourcing/

Screening by Acquisitions

Investment Sourcing/

Screening by Acquisitions

InvestmentCommitteeApproval

InvestmentCommitteeApproval

Target Market Selection/ Required

Return Analysis

Target market selection/ required

return analysis

Portfolio Strategy

Formulation

Portfolio strategy

formulation

Ongoing Portfolio

Analysis and Repositioning

Ongoing portfolio

analysis and repositioning

Multidiscipline Underwriting

Multidisciplined underwriting

Investment Sourcing/

Screening by Acquisitions

Investment sourcing/

screening by Acquisitions

InvestmentCommitteeApproval

Investmentcommitteeapproval

Source: UBS Global Asset Management, Global Real Estate Research.

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Ongoing functional support

Distribute and communicate research information to all business units

Support portfolio/asset management in portfolio analysis– Attribution analysis

– Performance reporting/benchmarking

– Back-testing

– Diversification analysis

Provide market research for acquisition/disposition– Member of every acquisition team

– Integrated in disposition decision making

Assist Client Service and provide response to ad hoc requests

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Research: Data/information and online systems

Full line of economic, demographic, capital markets and real estate market data

Research on Demand delivers market and submarket level information to the desktops of all UBS Global Asset Management, Global Real Estate-US professionals

Moody’s Economy.com Axiometrics Reis Reports Torto Wheaton Research CoStar MPF

NCREIF UBS Equity Analysts’

Reports Real Capital Analytics Morningstar DTZ Miscellaneous others

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Research on demand

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Investment objectives and philosophy

Enhance returns: – Recognize long-term economic and real estate trends

– Under- or over-allocate to property types and regions depending on outlook

– Target favorably priced markets

– Source and underwrite best investments in targeted markets

– Manage each investment as an operating business

Mitigate risks:– Minimize downside risk through investment selection and detailed underwriting

– Diversify portfolios

– Perform regular hold-sell analysis

SECTION 8

US market review

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-250

-125

0

125

250

375

500

625

90 92 94 96 98 00 02 04 06 08 10

Mill

ions

of sq

ft

0

5

10

15

20

%

Absorption (L)Completions (L)Vacancy (R)

Absorption, completions and vacancy rates

Apartment, office, industrial and shopping center absorption, completion and vacancy

Source: UBS Global Asset Management, Global Real Estate Research based on data obtained from Torto Wheaton Research ad Reis Reports as of 31 December 2008. Shaded area indicates forecast data.

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Commercial property fundamentals

Source: UBS Global Asset Management, Global Real Estate Research based on data obtained from Torto Wheaton Research and Reis Reports as of 31 December 2008.

US-I RD280508

-4

-2

0

2

4

6

8

10

12

14

Vacancy Rent Growth Completions as % of Inventory

%

1990-92

2001-03

2008-10F

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Relative supply

Source: UBS Global Asset Management, Global Real Estate Research based on data obtained from TWR and REIS as of March 2009. Any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets is not necessarily indicative of the future or likely performance.

New supply as percent of inventory

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

Apartment Industrial Office Retail

(%)

1988-90 Avg2005-07 Avg2008-09 Avg20-Year Avg

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Disclaimer

This presentation is for informational purposes only and is not a recommendation to buy or sell any securities or make any investments. Segments of this presentation contain information relating to future prospects that are "forward looking statements", which are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include, but are not necessarily limited to, forecasts of revenues and expenses, lease renewals, capital expenses, market rent changes, discount rates and capitalization rates. The opinions expressed are a reflection of our best judgment at the time the report is compiled. UBS does not undertake to update information contained in this presentation, except in future presentations of a similar nature.

This material supports the presentation(s) given. It is not intended to be read in isolation and may not provide a full explanation of all the topics that were presented and discussed. Care has been taken to ensure the accuracy of the content, but no responsibility is accepted for any errors or omissions.

GL-I RD050308