Credit Suisse Real Estate Fund LivingPlus · Credit Suisse Real Estate Fund International Success Factors CS REF International is the first Swiss real estate fund that invests internationally

Credit Suisse Real Estate Fund International

Product presentation

March 2013

Real Estate Asset Management

Restricted to institutional investors with professional treasury

as defined in art. 10, para. 3 a to d of the CISA

Credit Suisse – A Single Source for Services

The Credit Suisse business model combines the strengths and expertise in Private Banking & Wealth

Management, including Asset Management, and Investment Banking. This combination enables the bank to serve clients globally with integrated solutions tailored to their needs.

Integrated Advice Personal relationship managers give our clients access to experts, products, and every service offered by our integrated bank – all from a single source.

Customized Banking Services We offer individualized solutions tailored to our clients' life situations and needs.

Innovative and Comprehensive Solutions We work across divisional borders to serve our clients with innovative and holistic solutions.

Global Reach Our global presence and our partnerships in more than 50 countries allow our clients to transact their financial business anywhere in the world.

March 2013 Real Estate Asset Management 2

Real Estate Asset Management Switzerland

Key facts and figures

Largest provider of real estate investment products in Switzerland with assets under management

of CHF 30.8 billion as at February 28, 2013. 74,000 tenants in approx. 1,100 properties

Managed products comprise:

Six listed real estate funds; five with emphasis on Swiss properties, one has global orientation

Three real estate funds for institutional or qualified investors with OTC trading; two funds focus on Switzerland, one has a global orientation

Three real estate investment groups in the Credit Suisse Investment Foundation

One listed real estate joint-stock company

Number of employees: approx. 100 (January 2013)

Zurich, Sihlcity Basel, Messeturm Geneva, Confédération Centre Sydney, Goulburn Street Source: Credit Suisse AG


Real Estate

Asset Management Management Services

Head Products


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Assets under management – February 2013: CHF 30.8 bn

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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

in mn CHF

Sustainable growth with innovative products


March 2013 Real Estate Asset Management

Last data point: 28.2.2013

5


Real estate products – directorships

* The CS 1a Immo PK is only available for zero-rated domestic occupational benefit plans and to social insurance and compensation funds. ** The CS REF International is limited to qualified investors as defined in Article 10 Paragraph 3 Letters a – d of the CISA. *** The CS REF Green Property is limited to qualified investors as defined in Article 10 Paragraphs 3 and 4 of the CISA. **** Only tax-exempt pension funds domiciled in Switzerland are permitted as direct investors



CS REF

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CS REF

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CS REF

Hospitality

Swiss Prime

Site (SPS)

CS REF

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CS REF

International **

CS REF

PropertyPlus

CS REF Green

Property ***

Products Directorships

CSA RES

Commercial ****

CS REF

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7


Success Factors

CS REF International is the first Swiss

real estate fund that invests

internationally and was launched in 2005

As of June 30, 2012 the fund was invested

in 36 properties with a market value of CHF

1‘995 mn. The portfolio has since grown further

A broadly diversified portfolio, with properties in the Americas, Asia Pacific and Europe. The fund is managed from Zurich,

with local teams in the regions

Washington DC (USA), 1099 New York Avenue

CHF 130.7 mn (6.6% des Portfolios)




Investment Policy and Strategy

Investment Policy

− Investment in high-yield real estate in both commercial and mixed-use segments

− Broad international diversification, with one third invested in each of the Americas, Asia Pacific and Europe

Strategy

− Buy and hold (80% - 90% of the portfolio): Long-term cash flows secured from properties in excellent locations

− Active portfolio management (10% - 20% of the portfolio): Investment in growth markets, as well as exploitation of market cycles in developed economies




Key Data and Product Features

The fund is authorized exclusively for

institutional investors with professional

treasury services

Over-the-counter trading is ensured by Credit Suisse. Average trading turnover since 2007 of CHF 23.6 mn per month

Regulated by the Swiss Financial Market

Supervisory Authority (FINMA) on the basis of the Collective Investment Schemes Act

(KAG)

The fund currency is the Swiss franc (CHF) – the majority of foreign currencies

exposure is hedged Toronto (CAD), 160 Bloor Street East

CHF 101.9 mn (5.1% of the portfolio)




Ratios


Source: Annual reports of Credit Suisse REF International

Historical returns and financial market scenarios are no guarantee of current or future performance. The performance data takes no account of the commissions and

fees charged for the issuance and redemption of units.

The ratios were calculated according to the SFA guidelines “Key data for Real Estate Funds” in force since 17.11.2010.

Annual reports 30.06.2012 31.12.2011 31.12.2010 31.12.2009

Fund’s net assets in CHF mn 2’100 2’138 1’818 1’796

Market Value of properties in CHF mn 1’995 1’854 1’580 1’477

Premium -3,9% -0,7% 3,6% -4,19%

Distribution per share in CHF n/a 37.00 37.00 35.00

Distribution yield n/a 3,7% 3,6% 3,7%

Distribution rate n/a 102,9% 87,5% 106,9%

Compound yield 1,9%1) 4,6% 4,9% -1,1%

Leverage in % of market values 5,9% 6,1% 6,1% 6,8%

Total expense ratio (TERREF) 0,93% 0,92% 0,93% 1,03%

Rate of loss of rental income 6,5% 7,3% 7,6% 5,2%

11


Performance as of 31.01.2013




1) Historical returns and financial market scenarios are no guarantee of current or future performance. The performance data takes no account of the commissions and


12


Change in Price versus Net Asset Value




Historical returns and financial market scenarios are no guarantee of current or future performance. The performance data takes no account of the commissions and


Price

as of 31.12.2012 CHF 975.-

as of 28.02.2013 CHF 1’020.-

Distribution

as of 31.03.2010 CHF 35.-

as of 31.03.2011 CHF 37.-

as of 30.03.2012 CHF 37.-

Net asset value (NAV)

as of 31.12.2012 CHF 1’014.31

as of 28.02.2013 CHF 1’021.16

Premium / discount

as of 31.12.201 -3.88%

as of 28.02.2013 -0.11%

Performance

2011 0.40%

2012 0.75%

YTD 2013 4.62%

13

Agios and Disagio of the Swiss Real Estate Funds

Average of listed funds1: 19.2%


Last data point: 28.2.2013 Source: Credit Suisse AG, Datastream, last annual or semi-annual report of the funds

1 if the other funds CS 1a Immo PK, CS REF International, CS REF Green Property, CS REF Hospitality and CS REF Global are included, the weighted agio is 17.4%

14


Diversified International Real Estate Portfolio



Santiago

Monterrey

Calgary

Toronto

Ottawa

Montreal

Boston Washington DC

Leeds

Bristol

The Hague Rotterdam

Amsterdam Arnheim

Osnabrück

Hanover

Stuttgart Mainz

Tokyo

Sydney Canberra

Melbourne

London

Germany 19.3%

Canada 19.1%

USA 16.5%

Australia 13.2%

Netherlands 12.8%

UK 8.2%

Japan 7.9%

Chile 1.6%

Mexico 1.4%

Europe 40.3%

Americas 38.5%

APAC 21.2%

Berlin

Brisbane

Fukuoka

Cardiff

Chicago


Vancouver Munich

15


Top Positioning – Countries, Locations, Properties

70% of properties in the top segment

Excellent overall quality of the

portfolio


Source: Wüest & Partner AG

Locational quality

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Property with handicaps Problem property

Question mark


16

Distribution of net rental income


Diversification by Use

74.3%

14.1%

7.5% 2.1% 2.0%

Office

Retail

Parking

Hotels, cinemas, restaurants

Others


Source: Credit Suisse AG Last data point: 30.06.2012

17


Ten Largest Tenants Account for 32% of Rental Income



5.2% Endemol Nederland Holding B.V.

4.8% Australian Tax Office (ATO)

3.0% CW Television Inc.

3.0% Commonwealth of Australia

2.3% Massachusetts Mutual Life Insurance

2.6% Media Markt Management GmbH

3.0% Jenner & Block

2.1% FMO

2.5% Peek & Cloppenburg KG

3.3% Watson Farley & Williams


18


Length of Rental Agreements



19


Rate of Loss of Rental Income


Source: Semi-annual and annual reports of Credit Suisse REF International Last data point: 30.06.2012

20


Hedging

Currency hedging is carried out by the

experts in the Currency Overlay Group at

Credit Suisse

On average, 85% of the capital employed is

hedged against currency fluctuations

Foreign exchange futures, generally with a

term of two to six months, are used

The individual transactions, as well as the

resulting profits or losses, are stated in

detail in both the semi-annual and the

annual reports



21

Munich (D), „Laimer Würfel“,



Sample Properties within the Fund’s Assets

Bristol (UK), «Temple Quay», 3 Rivergate




22



Fukuoka (J), «Zara Tenjin», Tenjin Nishi Dori


Brisbane (AUS), 55 Elizabeth Street

Construction project CHF 81.7 mn (4.1 %)



23

Chicago (USA), 250 South Wacker Drive






Vancouver (CAD), West Pender Street 819-8

Construction project CHF 33.3 Mio. (1.7%)

24

Reduction in

liquidity

Securing cash

flows

Stable distribution

Diversification

Selective

expansion


Our Priorities

The strategically-high cash position will be reduced; long-term goal is a leverage ratio of approx. 25%

The aim of the property portfolio is to conclude longterm, indexed rental agreements

The measures taken should allow net revenues to be secured in the long term

Diversification will be increased further, with a focus on additional cities rather than additional countries

The market opportunities currently available must be utilized consistently but cautiously



Portfolio Manager

Rainer Scherwey APRS 82, Product Management Sihlcity – Kalandergasse 4

8070 Zürich

Tel. 044 / 334 62 06 Fax. 044 / 332 10 82

E-mail: [email protected]

www.credit-suisse.com/realestatefunds


Brief Portrait

Fund data*

Fund domicile Switzerland Fund currency CHF Close of financial year December 31 Issue date 1.2.2005 Management Fee 0,60% p.a. TERREF 0,93% Net fund assets (in mn) 2‘099,7 Total fund assets (in mn) 2‘348,2 Number of properties 36

Last distribution 30.03.2012 Distribution CHF 37.00 Distribution yield 3,7%

Rate of loss of rental income 6,45% Debt financing ratio 5,89%

Bloomberg CSREFIN SW Security number 1968511 ISIN CH0019685111 Investor profile Institutional investor1

* Key figures as of the last semi-annual or annual report 1 Institutional investors with professional treasury as defined in § 5 of the fund agreement



mailto:[email protected]



http://www.credit-suisse.com/realestatefunds



Disclaimer

This document constitutes Marketing Material and is not the result of a financial analysis or research and therefore not subject to the “Directives on the Independence of Financial Research” (Swiss Bankers Association). The content of this document does therefore not fulfil the legal requirements for the independence of financial analyses and there is no restriction on trading prior to publication of financial research. This document was produced by Credit Suisse AG and/or its affiliates (hereafter referred to as "CS") with the greatest of care and to the best of its knowledge and belief. However, CS provides no guarantee with regard to its content and completeness and does not accept any liability for losses that might arise from making use of this information. The opinions expressed in this document are those of CS at the time of writing and are subject to change at any time without notice. Unless otherwise indicated, all figures are unaudited. This document is provided for information purposes only and is for the exclusive use of the recipient. It does not constitute an offer or a recommendation to buy or sell financial instruments or banking services and does not release the recipient from exercising his/her own judgment. The recipient is in particular recommended to check that the information provided is in line with his/her own circumstances with regard to any legal, regulatory, tax or other consequences, if necessary with the help of a professional advisor. This document may not be reproduced either in part or in full without the written permission of CS. It is expressly not intended for persons who, due to their nationality or place of residence, are not permitted access to such information under local law. Neither this document nor any copy thereof may be sent, taken into or distributed in the United States or to any U.S. person (as defined in Regulation S under the US Securities Act of 1933, as amended). Every investment involves risk, especially with regard to fluctuations in value and return. Investments in foreign currencies involve the additional risk that the foreign currency might lose value against the investor's reference currency. Historical returns and financial market scenarios are no guarantee of present and future performance. Performance data do not take into account any commissions and costs charged for issue and redemption. Furthermore, there is no guarantee that the performance realized will reach or surpass that of the relevant benchmark index.

Credit Suisse Real Estate Fund International is an investment fund established under Swiss law in the category of “real estate funds,” in accordance with the Swiss Federal Act on Collective Investment Schemes (CISA) of 23 June 2006, for qualified investors as defined in art. 10, para. 3 a to d of the CISA. The investor profile is restricted to institutional investors with professional treasury as defined in § 5 of this fund agreement. The investment fund referred to in this publication was established in Switzerland. The fund management company is Credit Suisse Asset Management Funds AG, Zurich. The custodian bank is Credit Suisse SA, Zurich. Subscriptions are only valid on the basis of the current sales prospectus, with integrated fund agreement, and the most recent annual report (or semi-annual report, if more recent). The sales prospectus, fund agreement as well as the semi-annual and annual reports may be obtained free of charge from Credit Suisse Asset Management Funds AG, Zurich and from any bank of Credit Suisse AG in Switzerland.

Copyright © 2013 CREDIT SUISSE AG and/or its affiliates. All rights reserved.


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Credit Suisse Real Estate Fund LivingPlus · Credit Suisse Real Estate Fund International Success Factors CS REF International is the first Swiss real estate fund that invests internationally