Consistent Investment Philosophy: Buy it, fix it, sell it

• Buy it – We acquire high-quality, income-producing assets at discounts to replacement costs.
• Fix it – We rapidly and proactively address any capital structure, physical, or operating issues pertaining to the investment.
• Sell it – Once issues are addressed we sell the investments, typically to core investors. Our average hold period has been slightly more than three years; between 2005 and 2007 we sold more than $60 billion of assets.

Consistent Team and Investment Process:

• The Investment Committee, which approves every Blackstone real estate investment throughout the world, has had the same co-chairs for 20 years.
• 14 of the 16 Senior Managing Directors in the real estate group have been at Blackstone for more than 10 years.
• Blackstone’s interests are aligned with its limited partners – the firm and its professionals have invested/committed approximately $3 billion to our real estate funds.

Operating Advantages:

• Extensive relationships with owners, lenders and intermediaries.
• Broad reach and market knowledge from dedicated operating platforms and a seasoned global asset management team.
• Unique ability to move with scale and speed.

Today, Blackstone is uniquely positioned to benefit from a favorable opportunistic investment environment:

• Sellers are often distressed ownership structures impaired by excessive leverage, or public companies seeking to exit in scale;
• Limited availability of debt and equity capital; substantially less competition from other opportunistic real estate funds;
• New supply in virtually every real estate sector remains near record lows;
• Economic fundamentals have begun to stabilize and improve.