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

Q1-2020 REVIEW

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

Charlotte, NC

OPERATIONS

Charlotte, NC

RESERVES

Charlotte, NC

CAPEX OVERVIEW

Charlotte, NC

Eviction Moratorium

• Landlords with federally backed mortgages cannot pursue evictions thru July 24th. 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 25th.
• 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 30th.

• Expanded paid sick and family leave that employees can access when affected by COVID-19
• r caring for someone who is.

PPP (Payroll Protection Program)

FEDERAL CARES ACT

COVID-19 Impact

Charlotte, NC

Freddie Mac Forbearance Terms for Borrowers

• The program continues through Dec. 31st 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

CARES ACT FORBEARANCE PROGRAM

COVID-19 Impact

Charlotte, NC

SENSITIVITY ANALYSIS

COVID-19 Impact

Charlotte, NC

Canopy at Baybrook

Data as of April 24, 2020

SENSITIVITY ANALYSIS

COVID-19 Impact

Charlotte, NC

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%

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

COLLECTIONS

COVID-19 Impact

Charlotte, NC

Over half of Canopy residents are employed in occupations less affected by COVID-19; however, about 23% is in the service industry.

DEMOGRAPHICS

COVID-19 Impact

Charlotte, NC

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% R e t i r e d / S t u d e n t $ 2 ,

• $

2 9 , 9 9 9 $ 3 ,

• $

3 9 , 9 9 9 $ 4 ,

• $

4 9 , 9 9 9 $ 5 ,

• $

5 9 , 9 9 9 $ 6 ,

• $

6 9 , 9 9 9 $ 7 ,

• $

7 9 , 9 9 9 $ 8 ,

• $

8 9 , 9 9 9 $ 9 ,

• $

9 9 , 9 9 9 $ 1 ,

• $

1 9 9 , 9 9 9

% of Total Residents

Household Income

10% 8% 34%

6%

23% 19%

Resident Occupations

IT Medical Professional Retired Service Industry All other

NATIONAL HEADLINES

IMG

Investors Management Group

By: Karlin Conklin

EXCLUSIVE PREVIEW

Closing Date: TBD

Investment Offering in North San Antonio

IMG

Investors Management Group

Questions

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KARLIN CONKLIN Principal, Executive Vice President MICHELE HRIVNAK CCIM, CPM - Managing Director, Asset Management DAVE MIKKELSEN Investor Relations Manager

investor.relations@imgre.com

IMG

Investors Management Group

Charlotte, NC