We opportunistically invest in a diversified investment portfolio of real estate securities and various other asset classes.

Our target asset classes include:

We believe that the most significant opportunities for out-performance exist between and within our target asset classes, as well as among individual securities. We strive to identify relative value anomalies through the assessment of relationships between supply and demand, changes in interest rates and associated prepayment expectations, market volatility, and investor trends.

The investment process is centered on security selection and allocation among credit rating classes and real estate sectors. Members of our investment team, utilizing proprietary analytics, determine the relative strengths of various securities based on applicable criteria, such as:

• Issuer
• Issue
• Vintage
• Credit rating
• Structure
• Geographic exposure

Our goal is to be opportunistic and invest in those assets that generate stable risk-adjusted returns, subject to maintaining our REIT status and exclusion from regulation under the Investment Company Act. Accordingly, we have not adopted policies that require us to establish or maintain any specific asset allocations, and our targeted allocations will vary from time to time as determined by our board of directors.