CIGNA Realty Investors

1
CIGNA Realty Investors Presentation to UNIVERSITY
OF CONNECTICUT SCHOOL OF BUSINESS REAL ESTATE
SOCIETY October 20, 2004
Presented by William C. Carlson Senior Managing
Director
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Presentation Overview

• CIGNA Realty Investors
• Organizational Overview
• Mortgage Equity Investing
• Products and Investment Parameters

• Value Proposition
• Mortgage Investing
• Equity Investing

• Job Overview
• Senior Managing Director

Career Progression
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Organizational Overview

• Division of CIGNA Investments, Inc.
• Headquartered in Hartford, CT
• National Real Estate Debt Equity Investor
• Major Client is In-House
• Narrow, Focused Advisory Business

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Real Estate Mortgage Equity Investing
Mortgage

• 3.5 billion in Commercial Mortgage Assets Under
  Management
• As a result of sale, predominantly in shared
  loans with Prudential
• Portfolio of 300 loans
• Consistent portfolio quality of A or better
  since 1998
• Average loan size over 30 million
• Estimated volume of 1 billion in 2004

Equity

• Approximately 250 million equity value of
  current investments
• 1.1 billion of Real Estate
• 25 Properties
• Joint Venture Structures
• Estimated 2004 Volume of 70 million (3
  investments)

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Loan Products and Investment Parameters
Products

• Fixed rate floating rate loans
• First, Second, B-note and Mezzanine Debt provider

Parameters

• Loan size - 5 million to 135 million
• 1 to 20 year terms
• BAA to AAA investment quality range, A-
  target
• Geographic diversification nationally
• Core property types office buildings, regional
  malls, apartments, warehouse/distribution, full
  service hotels

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Equity Investment Parameters
Value Added Strategy

• New Development
• Repositioning of Assets
• Utilize Leverage _at_ 70 /-

Property Types

• Multi-family (For rent/Condominium 200 units )
• Warehouse/Distribution
• Office
• Neighborhood or Specialty Retail
• Hotel

Return Targets

• 14-18 leveraged

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Value Proposition Mortgage Investing
Value to CIGNA

• Portfolio Diversity Fixed Income Investments
• Yield Pickup
• A-Rated Mortgages _at_ T 100 basis points
• A-Rated Public Bonds _at_ T 75 basis points

Value to Borrower

• Underwrite Complex Deals Structuring Capability
• High Degree of Certainty of Closing
• Flexibility On book Lender
• Long Term Business Relationship

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Value Proposition Equity Investing
Value to CIGNA

• High Yield Investment Alternative
• Long Term Wealth Generator
• Income Component

Value to Partner

• Financial Commitment
• Underwriting Expertise
• Long Term Business Relationship

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Job Overview Senior Managing Director
Management

• People
• Business
• Process
• Investor Relations

Investment Selection

• Origination
• Underwriting
• Approval
• Performance

Strategy

• Markets
• Property Types
• Risk/Return
• Portfolio Asset Allocation

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Career Progression Bill Carlson
CIGNA Corporation 1983 Loan Manager 1984 Asset
Manager Copley Real Estate Advisors Boston,
MA 1986 Senior Asset Manager 1988 Senior
Acquisition Analyst 1990 Portfolio Manager CIGNA
Corporation 1991 Vice President Mortgage
Originations 1997 Team Leader Mortgage
Originations 1999 Head of Mortgage
Originations TimesSquare Real Estate
Investors 2001 Head of Equity
Acquisitions 2003 Head of Equity Real
Estate CIGNA Realty Investors 2003-
Present Senior Managing Director