At LaSalle Investment Management, weremain committed to the growth of ourglobal sustainability platform as anintegral part of our global business.LaSalle’s Environmental, SocialResponsibility and Corporate GovernancePolicy is consistent with our belief thatESG factors can have a positive impacton investment performance acrosscompanies, sectors, regions, and asset-classes. Further, we continue to believethat our ESG commitments areconsistent with our fiduciary commitmentto our investors to deliver superiorinvestment returns.

In the following document, LaSalleInvestment Management is pleased toreport on the progress we have made in2012 with our global sustainabilityplatform. Primary strategic objectives for2012-2013 include a focus on increasedportfolio performance benchmarking andtracking, development of performanceimprovement goals, and development ofSocial and Governance Guidelines for ourglobal business platform. Further, weremain committed to reporting into anumber of important global ESGreporting initiatives, including Greenprint,the United Nation’s Principles forResponsible Investment mandate (UNPRIand the Global Real Estate SustainabilityBenchmark (GRESB).

In response to evolving market and clientdemands, we did make minoradjustments to our planned activities in2012. Overall, we made measuredprogress on our key objectives, and areon the right path with our focus onperformance measurements andreductions in energy and emissions.

Sections I through III outline our progressin 2012, while Appendices A and B give abroader view of the five-year history ofLaSalle’s Global sustainability platform.

I. Global SustainabilityCommittee 2012-2013 Objectives:

In 2011, our Global Sustainability Committeeestablished the following four global strategicobjectives as important two-year growthinitiatives for 2012-2013.

G1. Double LaSalle’s GreenprintPortfolio Asset Submission (from137 to 275 global assets).

G2. Development of InternalEnergy/Carbon Reduction Targets

G3. Enhance our Global Data TrackingPlatform

G4. Development of SocialResponsibility (S) & CorporateGovernance (G) Guidelines

II. 2012 Progress andAccomplishments

(G1) Greenprint Benchmarking + (G3) Data Platform EnhancementsA key component of our global sustainabilityplatform is our commitment to increasedperformance measurement and benchmarking.The Greenprint benchmarking platform is anessential tool for us as we track performancemetrics – initially Energy and Carbon, andlater Water and Waste – at a growing numberof our global portfolio assets.

• G1. Double LaSalle’s GreenprintPortfolio from 137 to 275 GlobalAssets for carbon and energytracking. LaSalle’s GlobalSustainability Committee successfullymet this goal by submitting 283assets to Greenprint in Q3 of 2012.,We continue to be challenged by theindustry-wide issue of limited accessto utility data for non-gross-leasedassets.

• G3. Enhance our Data TrackingPlatform. In 2012, we were successfulin aligning our data tracking platformwith the global environmental trackingsoftware systems that Greenprint hasdeveloped. We are integrally engagedwith Greenprint in developing andimproving their systems and recognizesignificant cost savings from usingGreenprint’s software platform.

• 2011-2012 Greenprint ReportResults. LaSalle’s Global PortfolioEnergy and Emissions decreasedacross the 2010-2011 “Like-for-Like”portfolio (74 assets with at least twofull years of data) as follows:

– 2010-2011: Energy consumptiondecreased 4.1%, emissionsdecreased 4.0%.

– 2009-2010: Energy consumptiondecreased 2.7%, emissionsdecreased 2.7%

We are pleased to see this progress inreductions in both energy and emissionsacross the global portfolio of assets we aretracking under Greenprint

Global Reporting: UNPRI, GRESBIn addition to engaging with Greenprint oncreating best practices, we also engagedwith UNPRI and GRESB on sustainabilityreporting as described below.

• 2013 Reporting Consultation withUNPRI: LaSalle continues to collaboratewith the PRI to enhance the newlyoverhauled PRI reporting format.

• GRESB Fund Submission:Completed and submitted JapanLogistics Fund II to the 2012 GRESBsurvey. JLF II was recognized as anindustrial sector leader for Asia Pacificregion with a “Green Star” ratingunder the GRESB scoring system.

LaSalle Investment ManagementGlobal Sustainability Platform Annual Report

For additional information, please visit www.lasalle.com/sustainability

• 2012 Consultation with GlobalReal Estate SustainabilityBenchmark (GRESB): The GSCanalyzed the 2012 GRESB surveyand provided constructive feedbackto GRESB aimed at improving nextyear’s survey.

Other AccomplishmentsLastly, we would like to highlight our regionalgoal setting and our global endorsement toCDP.

• Regional Strategic Action Plans(NA/EU/AP): Senior GSC RegionalLeaders set annual regional ESGaction plans every year. The regionsreport back progress at mid-year andyear-end to the GSC. Overall, ourteams are citing good engagement bythe regional asset managementteams on global and regionalinitiatives.

• CDP Signatory commitment.LaSalle, as of Q1 2013, is a signatoryto the Carbon Disclosure Project(CDP). As a signatory, LaSalle’s nameis publically listed on the letter that issent from CDP requesting carbondisclosure.

Global Challenges 2012While we are pleased with our successes,the following areas continue to be achallenge for the industry:

• Data Access and Availability: Our tenants directly pay and controlthe utilities at most of our globalassets. Our ability as Landlord/Ownerto access or control utility data islimited and/or prohibited. Thecollection of data remains challenging,and will remain so until global marketsbegin to insist on greater overalltransparency and access to data byboth owners and users.

• Reporting Requirements: The pacefor sustainability engagement andreporting in the industry continues toincrease. The GSC regularly considersthe benefits of participating in newreporting requests to ensure that wemaintain focus on our major strategicinitiatives.

III. 2013 Global Strategic Goals

Our GSC has set the following seven goalinitiatives. In addition to these goals, eachregion developed specific action items inorder to accomplish the global priorities.

1. G1. Greenprint Portfolio: Carbonand Energy tracking. Continue to track energy and carbonfor as many of our global assets aswe can. Over time, we will includewater and waste metrics whereinformation is available.

2. G2. Development of InternalEnergy/Carbon Reduction Targets. The GSC will consider, and ifappropriate, make recommendations(quantitative or qualitative) to theGlobal Management Committee forsetting global reduction targets. TheGreenprint report will be used toidentify low performing assets andtarget improving the energyperformance at these assets.

3. G3. Enhance our Data TrackingPlatform. Collection enhancements will mainlycenter on streamlining andautomating data from our propertymanagers. We will work withGreenprint to achieve this goal.

4. G4. Development of Social andGovernance (S&G) Guidelines. The development of S&G guidelinesfor our global business willcomplement our Environmental (E)metric tracking, and help us integrateESG principles into our internalinvestment decisions, as well as intothe 3rd party partners, managers,consultants and vendors with whomwe do business.

5. GRESB 2013 Survey Responses2013 (select funds): LPF, Encore +,JLF II, and likely other LaSalle Fundsyet to be determined.

6. UNPRI 2013 Report: Continue toengage with UNPRI on surveyrevisions in Q2 of 2013. Commenceworking on the LaSalle UNPRIsubmission in Q4 of 2013 for the early2014 reporting deadline.

7. 2014 ESG Education and Training:Continue to educate and update ourinternal teams on our ESG strategicgoals and facilitate assetmanagement’s Greenprint datasubmission. The purpose of theeducation and training is to makesustainability integral to ourinvestment processes, and to makeour asset and fund teamsaccountable for the sustainabilityprograms within their respective fundsand client portfolios.

Guiding Principles:An in-depth look

LaSalle Investment Management iscommitted to the following GuidingPrinciples:•� Reduce the environmental impactsof our business operations, inconjunction with our parent companyJones Lang LaSalle. View theexpansive efforts of our business by athttp://www.lasalle.com/Sustainability/Pages/default.aspx;

•� Reduce the environmental impactsof our clients’ properties and monitorthe effects of climate change onthose properties;

•� Deliver the best solutions to ourclients through meeting and/orexceeding the requirements ofenvironmental laws and regulations;

•� Drive thought leadership andinnovation on sustainable propertyinvestments; and

•�Collaborate with clients, tenants,property managers and other serviceproviders to ensure the bestsustainable solution to themanagement of properties whilemaximizing investment performance.

Green Rating Alliance

In February of 2011, LaSalle InvestmentManagement became a partner withGreen Rating Alliance. To date, wehave completed 29 European GreenRating™ assessments. The aim of theAlliance is for real estate companies tojoin forces and exchange bestpractices to bring concrete solutions onsustainability to the property industry.The Green Rating™ assessment,available in 12 countries acrossEurope, is a decisionmaking tool whichoffers a new approach to assessingand improving the environmentalperformance of buildings.

For additional information, please visit www.lasalle.com/sustainability

United Nations Principles forResponsible Investment (UNPRI)

In July 2009, LaSalle InvestmentManagement became a signatory to theUN’s PRI investor initiative (see UNPRI’shomepage at http://www.unpri.org/)and we have since submitted our firstPRI report, which documents our 2010accomplishments. LaSalle InvestmentManagement’s alignment with this globalmandate marked an important commit -ment by the Firm to begin a processover time wherein ESG criteria becameintegral to the investment decision criteriaof the Firm. As part of our PRI alignment,we have made a commitment to reporton our progress toward the sixprinciples of responsible investing.

Greenprint global portfolio

In June 2010, we committed 137 globalassets to the Greenprint Index – thefirst carbon footprint index ofGreenprint Foundation (seehttp://www.greenprintfoundation.org/Default.aspx). The Foundation iscomprised of several of the largerglobal investment managers andincludes Jones Lang LaSalle’s CEO,Colin Dyer, as a founding member ofthe Board. The organization’s primaryfocus is on the energy (carbon)reduction of the portfolio assets of itsfounding members. LaSalle InvestmentManagement’s contribution to this pilotIndex represents our first meaningfulstep toward measuring andencouraging energy reduction in ourglobal portfolios. LaSalle InvestmentManagement achieved a 2.7% (2009 -2010) and a 4.1% (2010-2011) year-on-year reduction in energy and carbonusage for its benchmarked assets anddoubled its submission from 137 to275 global assets in 2012.

For additional information, please visit www.lasalle.com/sustainability

Appendix A

Key Sustainability Milestone Timeline:

Global Sustainability Platform 2007 - 2013The following timeline outlines the progress that wehave made over the past few years and identifies ourcurrent focuses.

Year Focus Key Milestones Completed Targeted

2007/ Regional GSC Global Sustainability Committee formed 20072008 Focus: Sustainability Guiding Principles developed 2007

Focus: Regional Certification programs and asset certifications (LEED, ENERGY STAR, Green Globes, BREEAM, Green Mark) 2008

Regional initiatives: North America, Europe, Asia Pacific 2008

2009/ Transition LaSalle GreenGuide developed (sustainable 2010 to a Global operations), distributed globally 2009

Platform Sustainability Global Strategic Plan (S5):Focus: S1: Energy and Carbon Reductions;

S2: Sustainable Operations;S3: Benchmarking and Certifications; S4 Thought Leadership; S5 Social and Corporate Governance (S & G) 2009

LaSalle’s Signatory to UNPRI 2009

LaSalle’s Signatory to Greenprint: 137 global assets submitted to Greenprint 2010

LaSalle ESG Policy created 2010

Green Lease Guidelines created 2010

2011 Focus on LaSalle's 1st UNPRI Report submitted 2011Global 2nd Submission to Greenprint's Data Collection 2011Initiatives:

Green Rating Alliance partner (select European assets) 2011

GSC Restructuring for greater ownership/efficiency 2011

Global G1-G4 (G4) Strategic Objectives 2012-2013 developed:G1: Greenprint Tracking of Enviromental Metrics for AUM;G2: Energy Reduction/Carbon Targets; G3: Continual Enhancements to Data Tracking Platform; G4 Development of ESG Guidelines for LaSalle, Fund Teams and Property Teams. 2011

2012 Focus on G1 Achieved: Double Greenprint Submission Global (from 137 to 275 global assets) 2012Strategic G2 Achieved: Researched market to understand Goals: options for setting Energy/Carbon Reduction Targets 2012

G3 Achieved: Decision to make Greenprint Data TrackingPlatform and Enhancements made to data collection 2012

G4 Achieved: Started Developing S & G Guidelines 2012

2013+ Further G1 Target: Continue to submit and add assets to progress Greenprint 2013+on G1-G4 G2 Target: Develop Internal Energy/Carbon Strategic Reduction Targets 2013Goals:

G3 Target: Conintue to enhance Data Platform 2013+

G4 Target: Development of S & G Guidelines 2013

Competitive and legislativerequirements

In each of our global regions, butincreasingly from large Europeaninvestors, we are seeing a requirementfor LaSalle Investment Management toprovide Environmental, Social, andCorporate Governance (ESG) policies,measurement and performance data,and compliance with emerging,investor-driven, best practice ESGreporting guidelines. The requestsappear in RFPs and from investors asthey consider our funds and separateaccount offerings, and are furthersupported by new ESG reportingstandards for 2012 proposed by theEuropean Association for Investors inNonlisted Real Estate Vehicles (INREV).

It is noteworthy that it is no longersufficient for these ‘ESG leading’investors that LaSalle InvestmentManagement simply has policies inplace; rather, they are seeking evidenceof implementation. In an increasinglycompetitive environment, our objectiveis to meet and exceed theserequirements as we pursue new andadditional investor capital allocations.

LaSalle Investment Management seeksto track and comply with the changingenergy and sustainability regulatoryrequirements, which are occurring at anincreasing rate within each of our globalregions. When developing or refurbishingan asset, our teams take into accountmandatory requirements, and evaluatethe viability of incorporating furthersustainability measures into the designand construction of the asset. For existingassets, we seek to closely monitor andcomply with on-going sustainabilitytracking regulations, examples of whichwould include Energy PerformanceCertificates (EPCs) and the CarbonReduction Commitment (CRC)requirements in the UK, as well as energyand sustainability disclosure mandatesin the U.S. for New York and California.

Appendix B

Overview of LaSalle’s SustainabilityPlatform: 2007 - 2013

LaSalle’s Sustainability GuidingPrinciples:

LaSalle’s primary responsibility in all of itsactivities is to deliver superior investmentresults for our clients. In our pursuit ofsuperior investment performance, we alsobelieve that environmental, socialresponsibility, and corporate governance(ESG) best practices are consistent withenhancing long-term investmentperformance for our clients’ investments.

LaSalle’s operating philosophy with respectto ESG is to set policy and strategy at theglobal level, and empower the regional andlocal teams to develop initiatives andpriorities appropriate for each country.

LaSalle is committed to the following GuidingPrinciples:

• Reduce the environmental impacts ofour business operations, inconjunction with our parent companyJones Lang LaSalle.

• Reduce the environmental impacts ofour clients’ properties, and monitorthe effects of climate change on thoseproperties;

• Deliver the best solutions to ourclients through meeting and/orexceeding the requirements ofenvironmental laws and regulations;

• Drive thought leadership and innovationon sustainable property investments; and

• Collaborate with clients, tenants,property managers and other serviceproviders to ensure the bestsustainable solution to themanagement of properties whilemaximizing investment performance.

Competitive Requirements andClient Demands:In each of our global regions, but increasinglyfrom large European investors, we are seeing arequirement for LaSalle to provide ESG(Environmental, Social, and CorporateGovernance) policies, measurement andperformance data, and compliance withemerging, investor-driven, best practice ESGreporting guidelines. The requests appear inRFPs and from investors as they consider ourfunds and separate account offerings, and arefurther supported by the new EuropeanAssociation, Investors in Non-listed Real EstateVehicles (INREV), ESG reporting standards.

It is noteworthy that it is no longer sufficientfor these ‘ESG leading’ investors that LaSallesimply have policies in place; rather, they areseeking evidence of implementation. In anincreasingly competitive environment, ourobjective is to meet and exceed theserequirements as we pursue new andadditional investor capital allocations.

LaSalle’s Global SustainabilityCommittee:

LaSalle’s sustainability initiatives are led bythe 21-member Global SustainabilityCommittee. The GSC is chaired by the non-executive chairman of LaSalle, with thesponsorship of LaSalle's CEO and GlobalManagement Committee. The committeemembers represent each of our globalregions and all areas of the business,including senior business leaders, strategyand research, acquisitions, fund managers,asset managers, client services, and publicsecurities, as well as LaSalle’s global generalcounsel, chief compliance officer, and globalsustainability officer.

The members of the GSC are responsible fordisseminating the sustainability policies,procedures and strategies developed by theGSC. With regional senior management, theGSC is responsible for developing localinitiatives, implementing best practices, andintegrating sustainability into our investmentactivities, aligned with investment performanceand client contractual obligations.

Responsible Property Investing:LaSalle’s ESG Policy:

In 2010, LaSalle developed our global ESGPolicy, which can be found on our website atwww.lasalle.com/Sustainability/Pages/OurCommitment.aspx. LaSalle’s Environmental,Social Responsibility and CorporateGovernance Policy is consistent with ourbeliefs that ESG factors can have a positiveimpact on investment performance to varyingdegrees across companies, sectors, regions,asset-classes and timeframes, and should beconsidered when evaluating real estatesecurities, real estate-related investments,and the management of real estate assets.

LaSalle’s Sustainability IndustryInvolvement and Accomplishments:

LaSalle’s commitment to sustainability isevident through the organizations in whichwe actively participate, and through theresponsible investment initiatives which weimplement throughout the life cycle on ourinvestments. The broader global componentsof LaSalle’s sustainability platform are listedbelow.

For additional information, please visit www.lasalle.com/sustainability

United Nations Principles forResponsible Investment (UNPRI):

In July of 2009, LaSalleInvestment Managementbecame a signatory to the

United Nation’s Principles for ResponsibleInvesting (www.unpri.org/). In 2011, wesubmitted our first UNPRI report, whichdocuments our 2010 accomplishments.LaSalle’s alignment with this global mandatemarked an important commitment by the firmto begin a process over time wherein ESGcriteria (Environmental, Social, and CorporateGovernance) become integral to theinvestment decision criteria of the firm. Aspart of our UNPRI alignment, we have madea commitment to report annually on ourprogress towards the UNPRI’s 6 Principles ofResponsible Investing.

ULI Greenprint Center for BuildingPerformance:

In June of 2010, LaSallecommitted 137 global assets(all regions, multiple propertytypes represented) toGreenprint’s first environmental

tracking pilot. In 2012, we doubled ourGreenprint submission to 283 assets. TheULI Greenprint Center is a worldwidealliance of leading real estate owners,investors, financial institutions and otherstakeholders committed to improving theenvironmental performance of the global realestate industry with a focus on emissionsand energy reduction. Greenprint includes,among others, Jones Lang LaSalle CEO,Colin Dyer, and LaSalle Chairman and GlobalSustainability Committee Chairman, LynnThurber, as Greenprint board members.Greenprint’s primary focus is upon the energy(carbon) reduction of the portfolio assets ofits members. LaSalle’s contribution representsa meaningful step towards measuring,benchmarking, and encouraging environmentalreductions at LaSalle owned assets.

Green Rating Alliance:

In February of 2011, LaSalle became apartner with Green Rating Alliance. To date,we have completed 29 European GreenRating Assessments. The aim of the Allianceis for real estate companies to join forces andexchange best practices in order to bringconcrete solutions on sustainability to theproperty industry. The Green Ratingassessment, available in 12 countries acrossEurope, is a decision-making tool which offersa new approach to assessing and improvingthe environmental performance of buildings.

Property Acquisitions andSustainable Operations:

Acquisition Checklists:

When acquiring a new property, LaSalleutilizes environmental acquisition checklistguidelines adapted to specific country andregional requirements as guidance forevaluating property environmentalperformance. Material result findings fromthese environmental analyses are included

in the acquisition underwriting, which issubsequently presented to the regionalinvestment committees as part of the overallinvestment decision reviews.

LaSalle’s GreenGuide© forSustainable Property Operations:

LaSalle has developed a guidefor our portfolio and assetmanagers to educate themabout a variety of low or no-costsustainable operational “Best

Practices” for our managed assets. LaSalle’sGreenGuide© was developed to help reduceenergy and water consumption, increaserecycling efforts, and reduce the overallcarbon footprint of our managed real estateassets. In so doing, we anticipate that afurther benefit of these efforts will be reducedoperating expenses, increased valuations, andmore competitive properties in their respectivemarkets. For a copy please visit:www.lasalle.com/Sustainability/Pages/GreenGuide.aspx

LaSalle’s Green Lease Guidelines:

In 2010, we developed the internal GlobalGreen Lease Guidelines for our Regionalteams to use when negotiating tenantcontracts at our direct investment assets.This voluntary Guideline mutually andbeneficially promotes the acceptance andimplementation of ESG issues for bothLaSalle and our tenants.

Sustainability Ratings andCertifications:

LaSalle invests globally in five differentproperty types – office, multi-family, retail,industrial, and hotel. Our investments arelocated in 19 different countries, with varyinginvestment structures, and varying controlover property operations as defined by leaserequirements (Gross and NNN leases).

The criteria that we use in our decision-making process for ratings and certificationsdepend on the characteristics of the asset.

For new developments, if there is anappropriate rating and/or certification systemin the country in which we are developing,we endeavor to meet the highest appropriatesustainability level for that investmentconsistent with the strategic plan for theasset. For existing assets, if there is aregionally appropriate rating and/orcertification for that property type, and wehave some operational control at the asset,we then assess the viability of theappropriate sustainability rating/certification.To date, LaSalle has certified a growingnumber of new development and existingglobal assets under benchmarking programssuch as LEED, Energy Star, Green GlobesBREEAM and Green Mark.

We have also developed case studies forselect global assets, which can be viewed onour website: http://www.lasalle.com/Sustainability/CaseStudies/Pages/CaseStudies.aspx

Tracking and MonitoringSustainability Metrics:

As with Sustainability Ratings and Certifications,LaSalle determines whether to track andmonitor sustainability metrics based oncharacteristics of the investment asset. If wecontrol and/or pay for a meaningful portion ofthe utilities at an investment asset, we seekwherever possible to have our propertyteams track the utility information. For manylonger-hold assets, we track sustainabilitymetrics in our Greenprint portfolio.Greenprint’s software system compiles andstores the utility information for our globalassets, allowing us to complete analysis on aproperty and portfolio basis, and to benchmarkperformance improvements over time.

Green Statutory and LegislationRequirements:

LaSalle seeks to track and comply with thechanging energy and sustainability regulatoryrequirements, which are occurring at anincreasing rate within each of our globalregions. When developing or refurbishing anasset, our teams take into account mandatoryrequirements, and evaluate the viability ofincorporating further sustainability measuresinto the design and construction of the asset.For existing assets, we seek to closely monitorand comply with ongoing sustainability trackingregulations, examples of which would includeEnergy Performance Certificates (EPC’s) andthe Carbon Reduction Commitment (CRC)requirements in the UK, as well as energy andsustainability disclosure mandates in the USfor New York and California.

REDUCING CARBON. BUILDING VALUE.

FOUNDATIONGREENPRINT

For additional information, please visit www.lasalle.com/sustainability