RREEF America REIT II America REIT II - Cloud Solutions for

108 Pages·2012·4.92 MB·English

RRRREEEEFF AAmmeerriiccaa RREEIITT IIII
Second Quarter 2012 Update
IImperiiall CCountty EEmplloyees'' RRettiirementt AAssociiattiion
August 15, 2012
RREEF Real Estate
www.rreef.com
Confidential –Not for Public Distribution
Confidential – not for public distribution
The information contained herein is for the confidential use of only those persons to whom it is transmitted by RREEF
AAmmeerriiccaa LL..LL..CC.. oorr iittss aaffffiilliiaatteess aanndd iiss pprreesseenntteedd ffoorr iinnffoorrmmaattiioonnaall ppuurrppoosseess bbyy RRRREEEEFF AAmmeerriiccaa LL..LL..CC.. oonn bbeehhaallff ooff
RREEF America REIT II, Inc. (the “Fund”). This information may not be distributed, circulated, quoted, or otherwise
disseminated without the prior consent of RREEF America L.L.C. Each recipient, as a condition to the provision of this
information and by virtue of receipt thereof, agrees not to make a photocopy or other copy or to divulge the contents
hereof to any other person (other than a legal, business, investment or tax advisor in connection with obtaining the
advice of such person with respect to the investment). Failure to comply with the foregoing may result in irreparable
damage to the Fund, the shareholders and RREEF America L.L.C., among others. The information should be read and
reviewed in conjunction with the important disclosure information entitled “Performance Notes” and “Important
Information” later in these materials. Such disclosure information is applicable to all performance data throughout this
presentation. This presentation contains forward-looking statements, which should be considered in connection with
the statements contained in “Performance Notes” and “Important Information”. These forward-looking statements
iinncclluuddee, bbuutt aarree nnoott lliimmiitteedd ttoo, mmaannaaggeemmeenntt’’ss ppllaannss, pprroojjeeccttiioonnss, oobbjjeeccttiivveess, eexxppeeccttaattiioonnss, aanndd iinntteennttiioonnss, aanndd ootthheerr
similar statements. These statements are based on the current beliefs or expectations of management which are
inherently subject to significant uncertainties and changes in circumstances, many of which are beyond management’s
control. The ability of the Fund to successfully achieve the objectives set forth in the business plans and the initiatives
described herein will be dependent, in many cases, upon the availability of financing and a market for real estate assets,
eeaacchh ooff wwhhiicchh iiss uunncceerrttaaiinn iinn tthhee ccuurrrreenntt eennvviirroonnmmeenntt..
Imperial County –August 15, 2012 2
Table of Contents
Section
I. RREEF Real Estate Update
II. Economic and Market Uppdate
III. RREEF America REIT II Update
Appendix
II. FFundd DDettaiills
II. Select RREEF America REIT II Value Propositions
III. RREEF Real Estate’s Sustainability Program
IV. Biooggraapphieess
V. GIPS Composite Reports and Performance Notes
PPaaggee iinntteennttiioonnaallllyy lleefftt bbllaannkk..
Section I
RREEF Real Estate Update
RREEF Real Estate
Long tenured manager of real estate assets across the private and public investment spectrum
and around the globe
RREEF Real Estate's mission is to provide real estate investment management services consistent with our clients' objectives
for diversification, preservation of capital and superior long-term risk-adjusted performance.
RREEF Real Estate’s Global Footprint RREEF Real Estate at a Glance
 A 40-year investment heritage
 CCoommmmiitttteedd ttoo llooccaall mmaarrkkeett eexxppeerrttiissee wwiitthh aapppprrooxxiimmaatteellyy 555500
employees in 22 locations around the world
Americas
 A full service real estate manager with US$52.4/€41.3 billion in
 Seattle  Dallas
 San Francisco  Atlanta assets under management, nearly 600 institutional clients
 Walnut Creek  Boston
 Costa Mesa  New York – 3,662properties1, 188+ million square feet
 Chicago  Columbia
– PPrriivvaattee aanndd ppuubblliicc rreeaall eessttaattee
Europe
 London  Paris – Core, value-added and opportunistic private real estate
 Warsaw  Milan Europe
strategies
 Frankfurt  Madrid 40%
Asia Pacific – Global, regional and domestic real estate securities strategies
 Shanghai  Singapore – Global infrastructure securities, branded RREEF Infrastructure
 HHoonngg KKoonngg  SSyyddnneeyy
 Seoul  Tokyo Asia – Structured real estate debt strategies
Pacific
8%
 Part of RREEF Alternatives, the alternative investments business
Americas
52% of Deutsche Bank A.G.
 On June 20, 2012, Deutsche Bank (DB) announced that it
RREEF Real Estate AuMby Region
ccoonncclluuddeedd iittss eexxcclluussiivvee nneeggoottiiaattiioonnss wwiitthh GGuuggggeennhheeiimm PPaarrttnneerrss
over a potential sale of RREEF. The Bank also announced that the
Strategic Review of its global Asset Management division, initiated
1PropertycountincludesassetsinwhichRREEF RealEstatehasajointventureinterest. in November 2011, has concluded.
PreliminaryasofJune30,2012.
Imperial County –August 15, 2012 6
RREEF Real Estate – Americas
Creating value through active real estate management since 1975
 Long tenured senior professionals – averaging 12 years with the firm and over 25 years of industry experience
 $17.2 billion in total assets under management, including approximately 88% in core and 12% in value-added strategies
 Over 300 institutional clients, including public, corporate, union and foundations/endowments
 Commingled fund manager since 1975; separate account manager since 1986, including $7+ billion in portfolio takeovers
 Dedicated teams closed over $35 billion in purchase, sale and financing transactions over the last five years
 Regional asset management organization with more than 40 asset managers
RREEF Real Estate Property Portfolio 2011 Highlights
 RREEF America REITII outperformedNFI-ODCE over
454 properties, 111 million square feet
trailing 3-year basis by 114 basis points (net)
 RREEF America REIT III share price recovering: 54% net
retturn ffor tthhe year
Performance1
 RREEF Separate Accounts outperformedNFI-ODCE over
trailing 3-year basis by 120 basis points (gross)
 RREEF’s U.S. House Portfolio yielded +230 bps in relative
performance versus NPI for 20112
 $980 million in new capital calledfor RREEF America II
Capital Raising during 2011, including allocations from 11 new clients
 $$111155 mmiilllliioonn iinn nneewwaallllooccaattiioonnss ttoo UU.SS. sseeppaarraattee aaccccoouunnttss
 Closed 13 new acquisitions in 2011 totaling $721million,
including severalkeyinvestments sourced off market
Transactions
 Closed 36 sales in 2011, representing $1.2billion in gross
RREEF Real Estate Offices sales proceeds
Metro Area with RREEF Real Estate Properties  Mark Roberts joined as Global Head of Research
PPeerrssoonnnneell UUppddaattee  BBuuiillttoouutt rreeggiioonnaall cclliieenntt rreellaattiioonnss tteeaamm wwiitthh sseevveerraall kkeeyy nneeww
hires
1Pastperformanceisnotindicativeoffutureresults.TheperformanceofRREEFAmericaREITIIIisprovidedforillustrativepurposesonlyandnorepresentationismadethattheperformance
ofRREEFAmericaREITIIIwillbesimilartoRREEFAmericaREITII.PerformanceofeachindividualREITwillvary.
2 Representshypotheticalperformance. Pleaseseepage89forimportantinformationonhypotheticalperformance.
AsofMarch31,2012.
Imperial County –August 15, 2012 7
Americas Leadership Team
 Americas Management Committee members average 12 years with the firm and 26 years total experience
 No recent changes to Americas senior leadership
 Alignment, retention of key employees continues to be top priority
Americas Management Committee
Todd Henderson Jim Carbone Al Diaz Tim Ellsworth
Head of Americas Head of Business Development Head of Americas Asset Head of Americas Portfolio
Management Management
9 21 17 32 18 28 14 29
Marc Feliciano Laura Gaylord Brian McAuliffe Aimee Samford
CIO, Americas Head of Americas Client Relations Head of Americas Transactions Chief Operating Officer
7 18 10 28 7 29 14 19
Investment Functions
Portfolio Asset Client Relations/
Management Management CIO/Research Transactions Marketing Fund Finance Operations
49 employees 82 employees 18 employees 17 employees 25 employees 43 employees 15 employees
Years with Firm #
AsofJune30,2012. Total Years of Experience #
Imperial County –August 15, 2012 8
Americas Investment Committee
Average total real estate experience of 25 years, 12 years with the firm
Name Function Years withFirm Total Years Experience
Marc Feliciano Chairman,CIO –Americas 7 18
Jim Carbone Head of Business Development 17 32
Pierre Cherki Global Head of RREEF Real Estate 15 17
AlDiaz Head of Asset Management, Americas 18 28
Tim Ellsworth Head of Portfolio Management, Americas 14 29
TToodddd HHeennddeerrssoonn HHeeaadd ooff AAmmeerriiccaass 99 2211
Brian McAuliffe Head of Transactions Group, Americas 7 29
Mark Roberts Global Headof Research 1 27
KurtRoeloffs GlobalCIO 23 25
Kevin Howley RREEF America REIT II Portfolio Manager 10 32
AsofJune30,2012.
Imperial County –August 15, 2012 9
Americas core performance record
Delivering attractive core performance for three decades
42% Average Industrial Exposure, 34% Average California Exposure
Supppplemental Information: RREEF Real Estate – U.S. Direct Core Compposite vs. NFI-ODCE
U.S. Direct Core Composite -Leveraged NFI-ODCE
16%
14.7%
14.7%
1144%%
12%
10% 9.3%
8.4% 8.4%
88%% 7.4% 77.00%%
6.4%
5.8%
6%
4.1%
4%
2%
0.3%
0%
-0.4%
-2%
1 Year 3 Year 5 Year 10 Year 20 Year 30 Year
++88 bbppss ++117700 bbppss ++7711 bbppss ++220000 bbppss ++118855 bbppss ++114422 bbppss
Past performance is not indicative of future results. Returns are shown gross of fees and will be reduced by the advisory fees and other expenses. Industrial and California exposures are
basedontheaverageGrossAssetValueofallofRREEFRealEstate’sU.S.directcoreassetssince1976.PleaserefertothefullCompositeNotesand“ImportantInformation”includedatthe
endforfurtherinformation.
AsofMarch31,2012.
Imperial County –August 15, 2012 10