Viewpoints

New Possibilities from PIMCO and Allianz Real Estate

Learn how PIMCO and Allianz Real Estate have brought together their specialized expertise and global resources to offer an exciting new set of investment solutions in commercial real estate investing.

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Text on screen: PIMCO

Text on screen: PIMCO provides services only to qualified institutions and investors. This is not an offer to any person in any jurisdiction where unlawful or unauthorized

Images on screen: Corporate office buildings, residential neighborhood

Michael Chandra: Real estate has become a structural allocation in most investor portfolios, and is increasingly important to investor objectives.

Text on screen: Michael Chandra, Account Manager

PIMCO and Allianz announced in March of 2020 that we would be combining our efforts. First question to Francois. Can you tell us more about the combined PIMCO and Allianz Real Estate platforms and what motivated you to combine forces?

Text on screen: Francois Trausch, Global CEO & CIO, Allianz Real Estate

Francois Trausch: So a few words about Allianz Real Estate, Allianz Real Estate was up to recently the captive investment management vehicle of Allianz, the Germany based global insurance company. And over the years, Allianz Real Estate has grew to be one of the largest global real estate investor

B-roll: London, New York and Shanghai skylines

with over $80 billion of assets under management, 70% in Europe as expected, but also 20% in the US and 10% in Asia. The majority of what Allianz Real Estate does as investments for Allianz is in the core space of the market. These are the long duration, stable years, high quality assets, which they hold over a long period of time.

B-roll: Office and residential construction

50% of the portfolio is in office investment and the remaining 50% in retail, industrial, residential, student housing. So that's a short overview of what Allianz Real Estate does.

Many of you are very familiar with what PIMCO does and for many years, PIMCO has been very active in the higher yield, shorter duration, more opportunistic part of the market.

Text on screen: TITLE – PIMCO can now offer solutions across the real estate investing spectrum:, BULLETS - Core, Core-plus, Value-add, Opportunistic

So you can see that by combining forces, PIMCO can now offer to investors, not just the opportunistic part of the business, but also the core part of the real estate market. That of course is an exciting opportunity.

Text on screen: TITLE – PIMCO’s global real estate footprint; BULLETS -- $180bn+ real estate AUM; 330+ investment professionals; 30 global office locations. IMAGE: A map of the world displays office locations for PIMCO, PIMCO & Allianz Real Estate and Allianz Real Estate.

And for that purpose, it will be able to tap into Allianz's real estate, large footprint across the world and open that footprint to non Allianz investor.

Michael Chandra: Thank you, Francois. Next question to John. John, there are a number of large investment real estate firms in the industry. What distinguishes our platform's capabilities from some of our competitors?

Text on screen: John Murray, Global Head, Private Commercial Real Estate, PIMCO

John Murray: When we think about our advantages, we think our size and our synergies across the risk spectrum, as Francois alluded to, benefits us in terms of sourcing, structuring, and underwriting.

In terms of sourcing, again, we cover the risk spectrum. In terms of size, that means we're top tier in terms of your traditional sourcing with brokers,

Text on screen: TITLE -- Specialized expertise across all four real estate quadrants. IMAGE: A circular graphic with PIMCO & Allianz Real Estate $180B+ in real estate AUM at the center, with four quadrants surrounding: Private Debt – Senior mortgages, mezzanine loans and preferred equity; Private Equity – Direct core, core+, value-add and opportunistic; Public Equity – Real estate investment trusts (REITs); Public Debt – Including commercial mortgage-backed securities (CMBS) and REIT debt.

we have over 75 plus local operating partners and/or borrowers, which is synergistic, we're integrated across all four quadrants. So today when we look at opportunities, they go beyond brokers and partners. When we think about the sources of stress today, whether it's banks, levered lending platforms in the US, or CMBS, clearly there are opportunities that emanate from non-traditional sources. Just a quick example, when we think about loan sales and banks, we're

Images on screen: Paris skyline, Bank exterior, office building

a large player already in the non-performing loan space, particularly in Europe, and those deep relationships that we have across the banks at PIMCO are helpful, not just in terms of the commercial real estate contacts.

And just quickly in terms of CMBS and where we see stress coming, in some of these complicated situations, whether they're recaps, structured loan sales, legacy CMBS, they require oftentimes creative structured solutions. Here again, we think we benefit from the broader PIMCO in terms of our analytics, resources and our structured credit teams.

Text on screen: The PIMCO and Allianz Real Estate platform may offer investors advantages in terms of sourcing, underwriting, and financing

Images on screen: Corporate buildings, PIMCO trade floor

And last, but certainly not least, in terms of underwriting, as we've mentioned with the $180 billion of assets under management, that means we have the bottoms up data that goes arguably beyond just broker data and gives us real time intelligence on trends and a long-term perspective.

Text on screen: For more insights and information, visit pimco.com

Text on screen: PIMCO 50 1971-2021

Disclosure


IMPORTANT NOTICE

Please note that this communication contains the opinions of the manager as of the date sent, and may not have been updated to reflect real time market developments. All opinions are subject to change without notice.

Past performance is not a guarantee or a reliable indicator of future results.

This summary is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, interests in any fund or to participate in any trading or investment strategy.

Investments inresidential/commercial mortgage loans and commercial real estate debt are subject to risks that include prepayment, delinquency, foreclosure, risks of loss, servicing risks and adverse regulatory developments, which risks may be heightened in the case of non-performing loans. Investments in mortgage and asset-backed securities are highly complex instruments that may be sensitive to changes in interest rates and subject to early repayment risk. Equity investments may decline in value due to both real and perceived general market, economic and industry conditions, while debt investments are subject to credit, interest rate and other risks. In addition, there can be no assurance that PIMCO's strategies with respect to any investment will be capable of implementation or, if implemented, will be successful. The value of real estate and portfolios that invest in real estate may fluctuate due to: losses from casualty or condemnation, changes in local and general economic conditions, supply and demand, interest rates, property tax rates, regulatory limitations on rents, zoning laws, and operating expenses. The current regulatory climate is uncertain and rapidly evolving, and future developments could adversely affect a CRE strategy or investment. Diversification does not ensure against loss.

There is no guarantee that these investment strategies will work under all market conditions or are appropriate for all investors and each investor should evaluate their ability to invest for a long-term especially during periods of downturn in the market. No representation is being made that any account, product, or strategy will or is likely to achieve profits, losses, or results similar to those shown.

Forecasts, estimates and certain information contained herein are based upon proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument. Forecasts and estimates have certain inherent limitations, and unlike an actual performance record, do not reflect actual trading, liquidity constraints, fees, and/or other costs. In addition, references to future results should not be construed as an estimate or promise of results that a client portfolio may achieve.

This material contains the opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed.

PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors. Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation. This is not an offer to any person in any jurisdiction where unlawful or unauthorized. | Pacific Investment Management Company LLC, 650 Newport Center Drive, Newport Beach, CA 92660 is regulated by the United States Securities and Exchange Commission. | PIMCO Europe Ltd (Company No. 2604517) is authorised and regulated by the Financial Conduct Authority (12 Endeavour Square, London E20 1JN) in the UK. The services provided by PIMCO Europe Ltd are not available to retail investors, who should not rely on this communication but contact their financial adviser. | PIMCO Europe GmbH (Company No. 192083, Seidlstr. 24-24a, 80335 Munich, Germany), PIMCO Europe GmbH Italian Branch (Company No. 10005170963), PIMCO Europe GmbH Irish Branch  (Company No. 909462), PIMCO Europe GmbH UK Branch (Company No. BR022803) and PIMCO Europe GmbH Spanish Branch (N.I.F. W2765338E) are authorised and regulated by the German Federal Financial Supervisory Authority (BaFin) (Marie- Curie-Str. 24-28, 60439 Frankfurt am Main) in Germany in accordance with Section 32 of the German Banking Act (KWG). The Italian Branch, Irish Branch, UK Branch and Spanish Branch are additionally supervised by: (1) Italian Branch: the Commissione Nazionale per le Società e la Borsa (CONSOB) in accordance with Article 27 of the Italian Consolidated Financial Act; (2) Irish Branch: the Central Bank of Ireland in accordance with Regulation 43 of the European Union (Markets in Financial Instruments) Regulations 2017, as amended; (3) UK Branch: the Financial Conduct Authority; and (4) Spanish Branch: the Comisión Nacional del Mercado de Valores (CNMV) in accordance with obligations stipulated in articles 168 and  203  to 224, as well as obligations contained in Tile V, Section I of the Law on the Securities Market (LSM) and in articles 111, 114 and 117 of Royal Decree 217/2008, respectively. The services provided by PIMCO Europe GmbH are available only to professional clients as defined in Section 67 para. 2 German Securities Trading Act (WpHG). They are not available to individual investors, who should not rely on this communication. | PIMCO (Schweiz) GmbH (registered in Switzerland, Company No. CH-020.4.038.582-2). The services provided by PIMCO (Schweiz) GmbH are not available to retail investors, who should not rely on this communication but contact their financial adviser. | PIMCO Asia Pte Ltd (Registration No. 199804652K) is regulated by the Monetary Authority of Singapore as a holder of a capital markets services licence and an exempt financial adviser. The asset management services and investment products are not available to persons where provision of such services and products is unauthorised. | PIMCO Asia Limited is licensed by the Securities and Futures Commission for Types 1, 4 and 9 regulated activities under the Securities and Futures Ordinance. PIMCO Asia Limited is registered as a cross-border discretionary investment manager with the Financial Supervisory Commission of Korea (Registration No. 08-02-307). The asset management services and investment products are not available to persons where provision of such services and products is unauthorised. | PIMCO Investment Management (Shanghai) Limited Unit 3638-39, Phase II Shanghai IFC, 8 Century Avenue, Pilot Free Trade Zone, Shanghai, 200120, China (Unified social credit code: 91310115MA1K41MU72) is registered with Asset Management Association of China as Private Fund Manager (Registration No. P1071502, Type: Other) | PIMCO Australia Pty Ltd ABN 54 084 280 508, AFSL 246862. This publication has been prepared without taking into account the objectives, financial situation or needs of investors. Before making an investment decision, investors should obtain professional advice and consider whether the information contained herein is appropriate having regard to their objectives, financial situation and needs. | PIMCO Japan Ltd, Financial Instruments Business Registration Number is Director of Kanto Local Finance Bureau (Financial Instruments Firm) No. 382. PIMCO Japan Ltd is a member of Japan Investment Advisers Association and The Investment Trusts Association, Japan. All investments contain risk. There is no guarantee that the principal amount of the investment will be preserved, or that a certain return will be realized; the investment could suffer a loss. All profits and losses incur to the investor. The amounts, maximum amounts and calculation methodologies of each type of fee and expense and their total amounts will vary depending on the investment strategy, the status of investment performance, period of management and outstanding balance of assets and thus such fees and expenses cannot be set forth herein. | PIMCO Taiwan Limited is managed and operated independently. The reference number of business license of the company approved by the competent authority is (109) Jin Guan Tou Gu Xin Zi No. 027. 40F., No.68, Sec. 5, Zhongxiao E. Rd., Xinyi Dist., Taipei City 110, Taiwan (R.O.C.). Tel: +886 2 8729-5500. | PIMCO Canada Corp. (199 Bay Street, Suite 2050, Commerce Court Station, P.O. Box 363, Toronto, ON, M5L 1G2) services and products may only be available in certain provinces or territories of Canada and only through dealers authorized for that purpose. | PIMCO Latin America Av. Brigadeiro Faria Lima 3477, Torre A, 5° andar São Paulo, Brazil 04538-133. | No part of this publication may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America L.P. in the United States and throughout the world. ©2021, PIMCO.

CMR2021-0714-1718048

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