Q1-2020 REVIEW Charlotte, NC PRESENTERS: PRESENTERS: Karlin - PowerPoint PPT Presentation

Q1-2020 REVIEW Charlotte, NC PRESENTERS: PRESENTERS: Karlin Conklin Principal, Executive Vice President KARLIN CONKLIN Principal, Executive Vice President Michele Hrivnak CCIM, CPM Managing Director, Asset Management MICHELE HRIVNAK CCIM, CPM - Managing Director, Asset Management DAVE MIKKELSEN Investor Relations Manager Dave Mikkelsen Investor Relations Manager

OPERATIONS Charlotte, NC

RESERVES Charlotte, NC

CAPEX OVERVIEW Charlotte, NC

FEDERAL CARES ACT COVID-19 Impact Eviction Moratorium • Landlords with federally backed mortgages cannot pursue evictions thru July 24 th . Landlords also cannot charge any fees or penalties related to non-payment or late payment of rent. Financial Assistance • CARES Act payments of $1,200/adult and $500/child are in process. • Expanded unemployment benefits: • Now include independent contractors. • An additional Fed payment of $600/week on top of State unemployment thru July 25 th. • Is extended by 13 weeks, for a maximum of 39 weeks (approximately nine months). • Those with Federal student loan payments are automatically entered into forbearance (payments are halted, without penalty) through September 30 th . • Expanded paid sick and family leave that employees can access when affected by COVID-19 or caring for someone who is. PPP (Payroll Protection Program) Charlotte, NC

CARES ACT FORBEARANCE PROGRAM COVID-19 Impact Freddie Mac Forbearance Terms for Borrowers The program continues through Dec. 31 st or the • end of the federally declared emergency period, whichever comes first • Borrower submits (a) Forbearance Agreement, (b) Hardship Letter, and (c) Delinquency Report • Lender forbears (refrains) from collecting payments on debt for 90 days • Borrower agrees to 90-day moratorium on evictions and tenant late fees • Debt service payments accrue and become payable over a 12-month period after the 3- month forbearance period ends Charlotte, NC

SENSITIVITY ANALYSIS COVID-19 Impact Canopy at Baybrook Data as of April 24, 2020 Charlotte, NC

SENSITIVITY ANALYSIS COVID-19 Impact Sensitivity Assumptions • Property Breakeven at approximately 63% of average collections for trailing 3 months • Net Collections can decrease a combined 37% between rent collections and other income collections to breakeven • Operating Expenses (a) increased Utilities by 20% to account for more residents at home, (b) decreased Turnover by 60% to account for lower turnover rate, (c) Property Management Fee and Asset Management Fee decreased (based on percentage of gross revenues) • Mortgage Interest Payment 1 Mo. LIBOR rate of 1.0% (0.49% as of 4/23), all-in interest rate of 2.93% Charlotte, NC

COLLECTIONS COVID-19 Impact Canopy at Baybrook Data as of April 24, 2020 • Physical Occupancy: 91.4% • Payment Plans: 16 • Month-to-date Total Collections vs. Trailing 6-Months: $319,567 vs. $347,636 (92%) * Surveys generally anticipate May collections to fall below April collections, due to rising unemployment Charlotte, NC

DEMOGRAPHICS COVID-19 Impact Resident Occupations Over half of Canopy residents 10% are employed in occupations 19% 8% less affected by COVID-19; however, about 23% is in the 23% 34% service industry. 6% IT Medical Professional Retired Service Industry All other Household Income 35.00% % of Total Residents 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% t 9 9 9 9 9 9 9 9 9 n 9 9 9 9 9 9 9 9 9 e 9 9 9 9 9 9 9 9 9 d , , , , , , , , , u 9 9 9 9 9 9 9 9 9 9 t 2 3 4 5 6 7 8 9 S $ $ $ $ $ $ $ $ 1 / $ d - - - - - - - - e 0 0 0 0 0 0 0 0 - r 0 0 0 0 0 0 0 0 0 i t 0 0 0 0 0 0 0 0 0 e , , , , , , , , 0 0 0 0 0 0 0 0 0 R , 2 3 4 5 6 7 8 9 0 $ $ $ $ $ $ $ $ 0 1 $ Charlotte, NC

IMG Investors NATIONAL HEADLINES Management Group By: Karlin Conklin

IMG Investors EXCLUSIVE PREVIEW Management Group Closing Date : TBD Investment Offering in North San Antonio

Type Now in Chat Box Questions Charlotte, NC investor.relations@imgre.com IMG Investors KARLIN CONKLIN Principal, Executive Vice President Management MICHELE HRIVNAK CCIM, CPM - Managing Director, Asset Management Group DAVE MIKKELSEN Investor Relations Manager