GOLF & RESORT GROUPPremier Leisure Properties

Y E A R I N R E V I E W 2 0 1 7

Looking back on our predictions for 2017 in our last Year in Review, they proved to be spot on. Although it took several months for investors to buy into an expanded economy due to the Trump Presidency, the stock market reached all-time highs and investor confidence began to surge. There appears to be plenty of “gas in the tank” for the current recovery and according to the “Emerging Trends in Real Estate” annual report by PWC released at the ULI Fall Conference in October, we are in a long cycle of growth with no timetable for a recession to begin. Further, its felt that the recession, when it does come, will have a “soft landing” as opposed to the hard landings of previous economic cycles that were caused by the S & L debacle, the dot-com bubble burst and the sub-prime landing fiasco. The recovery has been slow paced and moderate and although money is cheap, it’s not recklessly flowing as in previous booms. Nonetheless, due to the current length of the recovery some real estate investors are still taking a defensive position which will lead to buying opportunities for those more bullish on the future.

The ski industry did undergo dramatic changes in 2017 thanks to purchases by KSL/Aspen Skiing Company of Intrawest, Mammoth Mountain and Deer Valley for over $2 billion. Their business model will be to emulate the success of Vail Associates and specifically the Epic Pass which de-risks the volatile ski business due to weather. 2017 also saw the largest ever golf portfolio transaction when Apollo purchased ClubCorp for a record $2.2 billion.

We are even more bullish on 2018 than 2017 as the market dynamics continue to improve and we will be bringing exciting properties to market in the coming months. Cheers!

Jeff WoolsonManaging DirectorCBRE Golf & Resort Properties

GOLF RESORT SKI MARINA DEVELOPABLE LAND

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

GOLF COURSE SALES 2003 - 2017Gross Revenue Mult iples

Source: CBRE Research

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

We have sold more than 125 golf properties over the last 25 years and began using the Gross Revenue Multiple (GRM) as a valuation metric in our sales analysis during the most recent recession, since so many golf courses were not generating positive cash flow. As it relates to our transactions, the average GRM peaked in pre-crash 2007 at 2.86 and has averaged 1.63 for the last 10 years, most recently dropping to an average of 1.37 in 2017. The decline in GRMs for our transactions roughly mirrors the data reported by the Society of Golf Appraisers, who show a declining national average in recent years and a 1.48 GRM most recently.

KINGSMILL RESORT Williamsburg, Virginia

SOLD February 2017

Resort / Conference Center / Private Country Club

(54 Holes) / Developable Land

GROUSE MOUNTAIN Vancouver, Canada

SOLD July 2017

Ski Resort / Developable Land

CARTON HOUSE Dublin, Ireland

SOLD November 2017

Golf Resort

EASTLAKE COUNTRY CLUBChula Vista, California

SOLD December 2017

Daily Fee Golf Course

LAS VEGAS COUNTRY CLUBLas Vegas, Nevada

SOLD December 2017

Private Country Club

WESTKIN PORTFOLIOCoachella Valley, California

SOLD November 2017

Leasehold Portfolio

(Golf / Hotel / Residential)

SOUTHSHORE GOLF CLUBHenderson, Nevada

SOLD December 2017

Private Golf Club

Westkin

new south ocean

Granby Ranch, Colorado

Steamboat Springs Land, ColoradoDuPont Country Club, Delaware

Diablo Grande, California

New South Ocean, Bahamas

2018 PREVIEW

Aetna Springs , California

Reunion Resort, Florida

Anco Lands Portfolio, Bahamas

Heritage Golf Portfolio

CostaBaja, Mexico

© 2018 CBRE Group, Inc. We obtained this information from sources we believe to be reliable, however we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. This offering memorandum is subject to the terms outlined in the confidentiality agreement. Reproduction of this document and its contents is strictly prohibited without the expressed written consent of CBRE.

Fo l low us on @cbrego l f re so r t

MORGAN ABBOTTSenior Underwriter+1 760 438 8536morgan.abbott@cbre.com

JEFF WOOLSONManaging Director+1 760 438 8530jeff.woolson@cbre.com

GOLF & RESORT GROUP 5780 Fleet Street, Suite 100

Carlsbad, CA 92008 +1 760 438 8500

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