ATEL Properties Inc.

We invest with a long-term view of creating value for our stakeholders. This includes investing in and financing single-tenant, net-lease assets with primarily long-term leases in well-located and high growth markets. We pursue sale-lease back transactions and acquisition opportunities that we believe provide an attractive current yield and the potential for favorable total return.

Through our strategy, we have been able to create and keep a diversified asset base that provides steady, predictable, and growing cash flows while being insulated against rising property operating expenses, regional recessions, industry-specific downturns and fluctuations in property values and market rent levels.

Key Elements Important to Our Strategy Include:

1. Single credit-tenant, net-lease assets with long-term leases, 10+ years
2. Investment diversification for mitigating risk (transactions size: $3mm-$8mm)
3. Active portfolio and asset management for best operating results
4. Consistent capital recycling for improved portfolio quality and performance
5. Maintenance of a conservative balance sheet for financial flexibility

Property Investment Thesis:

With a multi-billion-dollar portfolio of assets under management, we are closers that primarily buy properties without financing contingencies. Investments may include single-tenant commercial properties and office properties, within the United States leased to both investment-grade and high-quality credits – apartments are also considered.

Acquisition Criteria:

• Investment grade or equivalent, single-tenant, free-standing triple net or double net lease assets
• Lease Term: Target of 12 years and a minimum of 8 years of lease term remaining.
• Located in high growth, business friendly cities with growing populations.
• Emphasis on recession resistant tenants and mission-critical locationsi with high growth potential
• Single-tenant properties or portfolios, and properties where a single tenant accounts for most of the revenue
• Leases are structured to incorporate a target annual rent escalation of 2-3%, which if achieved should enhance the property’s cash flow during the hold period.