Opening the Doors to Private Real Estate

INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

a simpler way to access the benefits of an essential asset class

AN ESSENTIAL ASSET CLASSU.S. commercial real estate, valued at $10.7 trillion overall, is the third-largest asset class in the U.S. after fixed income and equities. From business to residential properties, it represents an enormous investment opportunity. 90% of all U.S. commercial real estate is privately held.

HARNESS THE POTENTIAL

$9.7 trillion Private Real Estate

$1.1 trillion Publicly traded

REITs

Source: Securities Industry and Financial Markets Association, Urban Land Institute, NAREIT, NCREIF and Clarion Partners Investment Research. Annual data and estimates are as of December 31, 2018. U.S. commercial real estate includes private and public equity investments. Estimates are based on a comparison to U.S. debt and U.S. equity. U.S. debt includes corporate securities, asset-backed securities, Treasury debt, Federal agency debt including mortgage-backed securities, money market funds, and municipal bonds. U.S. equity is the total market value of publicly traded domestic companies.

² The Fund employs leverage, which increases the volatility of investment returns and subjects the Fund to magnified losses if an underlying fund’s investments decline in value. The Fund may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance.³ Diversification does not assure a profit or protect against market loss. All investments involve risk, including loss of principal, and there is no guarantee that investment objectives will be met. Past performance is no guarantee of future results.

Stable Income1

Historically, private real estate has been a source of durable income, with cash flow driven by regular lease and rental payments.

Attractive property attributes:

• Well-maintained properties with modern functionality

• Producing income from rents with contractual increases

• Desirable locations

• Minimal vacancy 1 Source: Clarion Partners Investment Research, NCREIF, REIT.com, S&P, Bloomberg. As of September 30, 2019. Distributions may consist of a return of capital. For more detail see page 4.

Capital AppreciationPrivate real estate offers the potential for capital gains as properties increase in value over time.

Catalysts may include:

• Property improvements

• Capital restructuring, capital repositioning, or both

• Market rent growth

Diversification2,3

Private real estate is less influenced by movements of the stock and bond markets, and can provide diversification during periods of volatility.

Greater historical stability than stocks

Source: Bloomberg, NFI-ODCE and NAREIT. Returns are based on quarterly observations. Data as of 3Q2019. Private real estate, publicly traded REITs and stocks are respectively represented by the NFI-ODCE Index, NAREIT All Equity REIT Index and S&P 500 Index. Index performance is not representative of the return of CPREIF. Investing directly in an index is not possible. Past performance is not a guarantee of future results.

-40

-30

-20

-10

0

10

20

30

40

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019

Private real estate Publicly traded REITs Stocks

Quar

terly

retu

rns

(%)

Live

Demand for apartment rentals

is escalating, while supply has been

constrained.

With vacancy rates at historic lows and constrained supply,

demand for apartment living will grow with 24 mm Millennials

still living at home and Gen Z (80+ mm) just beginning to enter

the workforce.5

Work

Creative office spaces are on the rise as companies seek to manage

costs and attract talent.

High-tech services are dominating

recent office leasing and currently

account for almost 30% of office-

using jobs.5

Shop

Warehouse and fulfillment centers

are in demand, thanks to the boom in online shopping.

240 million square feet of new space

will be needed for e-commerce

by 2023.5

THEMES DRIVE OPPORTUNITYDemographics, technology and lifestyle trends are changing the supply and demand dynamics of commercial property and generating potential value for investors.

INSTITUTIONAL QUALITY REAL ESTATE WITHIN REACHPrivate commercial real estate is opening up to investors in an exciting new way. Traditionally, only institutions and wealthy individuals could afford to invest in it.

Clarion Partners, a top real estate investment manager, has focused on creating access to this exclusive asset class for a wider spectrum of investors.

Clarion Partners Real Estate Income Fund (CPREIF) • Access a portfolio of quality commercial real estate

investments and Clarion Partners’ real estate expertise

• Potential source of attractive income4

• Attractive pricing:

— Low management fee — No incentive fees

Learn More

www.cpreif.com

Liquidity considerations

The Fund should be viewed as a long-term investment, as it is inherently illiquid and suitable only for investors who can bear the risks associated with the limited liquidity of the Fund. Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for no more than 5% of the Fund’s shares outstanding at net asset value. There is no guarantee these repurchases will occur as scheduled, or at all. Shares will not be listed on a public exchange, and no secondary market is expected to develop.

Fund Ticker Symbols: Class S (CPRSX), Class T (CPRTX), Class D (CPRDX), Class I (CPREX)

5 Source: Clarion Partners

4 Distributions may consist of a return of capital.

Brandywine Global

Clarion Partners

ClearBridge Investments

EnTrust Global

Martin Currie

QS Investors

RARE Infrastructure

Royce Investment Partners

Western Asset

LeggMason.com

Clarion Partners — a source of real estate expertise since 1982

• One of the largest pure-play real estate investment managers: $50+ billion* in assets under management

• Seasoned investment manager with nearly four decades of experience gained over many market cycles

• Invests across different strategies, asset classes and geographic regions

*As of September 30, 20191 NFI-ODCE Index Income as compared to Bloomberg Barclays U.S. Aggregate Bond Index, S&P 500 Index, and NAREIT All Equity REITs Index on 1-year income/dividend yield for 1-year average, 15-year average and 20-year average time span as of September 30, 2019. Please note: 15-year average and 20-year average are calculated based on historical trailing 12-month income/dividend yield. Distributions may consist of return of capital. Source: Clarion Partners Investment Research, NCREIF, REIT.com, S&P, Bloomberg. As of September 30, 2019.

Investment risks

The Fund is newly organized, with a limited history of operations. An investment in the Fund involves a considerable amount of risk. The Fund is designed primarily for long-term investors and an investment in the Fund should be considered illiquid. Shareholders may not be able to sell their shares in the Fund at all or at a favorable price. Fixed income securities involve interest rate, credit, inflation and reinvestment risks. As interest rates rise, the value of fixed income securities fall. High-yield bonds possess greater price volatility, illiquidity and possibility of default. The Fund’s investments are highly concentrated in real estate investments, and therefore will be subject to the risks typically associated with real estate, including but not limited to local, state, national or international economic conditions; including market disruptions caused by regional concerns, political upheaval, sovereign debt crises and other factors. Asset-backed, mortgage-backed or mortgage-related securities are subject to prepayment and extension risks. The Fund employs leverage, which increases the volatility of investment returns and subjects the Fund to magnified losses if an underlying fund’s investments decline in value. The Fund may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance.

Diversification does not assure a profit or protect against market loss. All investments involve risk, including loss of principal, and there is no guarantee that investment objectives will be met. Past performance is no guarantee of future results.Any information, statement or opinion set forth herein is general in nature, is not directed to or based on the financial situation or needs of any particular investor, and does not constitute, and should not be construed as, investment advice, a forecast of future events, a guarantee of future results, or a recommendation with respect to any particular security or investment strategy or type of retirement account. Key terms and index definitions NFI-ODCE Index: The NCREIF Fund Index – Open End Diversified Core Equity includes open-end commingled funds pursuing a core investment strategy, primarily investing in private equity real estate. This is a quarterly, capitalization-weighted, gross-of-fee, time-weighted return index with an inception date of December 31, 1977. FTSE NAREIT All Equity REITs Index: The FTSE NAREIT All Equity REITs Index is a free float-adjusted, market capitalization-weighted index of U.S. equity REITs. Constituents of the index include all tax-qualified REITs with more than 50 percent of total assets in qualifying real estate assets other than mortgages secured by real property. S&P 500 Index: The S&P 500 Index is an unmanaged index of 500 stocks that is generally representative of the performance of larger companies in the U.S. Indexes are unmanaged, and not available for direct investment. Index returns do not include fees or sales charges.

© 2020 Legg Mason Investor Services, LLC, member FINRA, SIPC. Clarion Partners, LLC, and Legg Mason Investor Services are subsidiaries of Legg Mason, Inc. 922312 CLAR571201 01/20

For more information, please visit www.CPREIF.com

BEFORE INVESTING, CAREFULLY CONSIDER A FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES. YOU CAN FIND THIS AND OTHER INFORMATION IN EACH PROSPECTUS, AND SUMMARY PROSPECTUS, IF AVAILABLE, AT WWW.LEGGMASONFUNDS. COM. PLEASE READ THE PROSPECTUS CAREFULLY.