RubinBrown Apartment Stats 2021

’21

APARTMENT STATS

A publication by RubinBrown LLP

Contents

RubinBrown is pleased to present the 2021 Apartment Statistical Analysis, an annual survey compiled by the Real Estate Services Group.

1 Executive Summary 3 Comparison of Operations 4 Government Assisted 8 Government Assisted by Region 10 Government Assisted by Project Size 12 Low Income Tax Credit Projects 14 Market Rate 16 RubinBrown Real Estate Services Group

Each year, data is collected from our clients, as well as other contacts and referrals within the industry, to comprise averages in a variety of markets within the United States. The accompanying statistical information includes operational data for 2020 and represents approximately 900 apartment projects in roughly 40 states. While these averages are representative of a smaller pool of projects, the trends are usually consistent with those experienced at the national level. If you have questions about the content of this publication, please contact us (see page 17 for contact information).

Disclaimer: Apartment Stats, a publication of RubinBrown LLP, is designed to provide general information regarding the subject matter covered. Although prepared by professionals, its content should not be construed as the rendering of advice regarding specific situations. If accounting, legal, or other expert assistance is needed, consult with your professional business advisor. Please call RubinBrown with any questions.

www.RubinBrown.com

RubinBrown Apartment Stats 2017

ii

EXECUTIVE SUMMARY

Executive Summary The multifamily market was negatively impacted throughout much of 2020 as a result of the economic shutdowns. The shutdowns beginning in March 2020 left millions of renter households out of work, but the market has experienced a significant turnaround during 2021 leading to improved rental growth and lowered occupancy levels. Per FreddieMac’s 2021 Midyear Outlook , the multifamily rental housing demand is affected by a combination of demographics, ongoing job growth, a nationwide shortage of housing, federal stimulus payments, and more local economies reopening and loosening pandemic restrictions. According to the Joint Center for Housing Studies of Harvard University, after the pandemic, rental demand fell from annualized growth in the number of occupied apartments from 333,000 units in the first quarter of 2020 to 176,000 units in the second quarter of 2020. The decrease in demand was felt especially hard in large markets. Despite the slowdown, construction levels maintained their quick pace and closely tracked rental demand throughout 2020 and finished the year at its highest annual total since 1989. As a result of the pandemic, rental demand has varied greatly based on the market. Vacancy rates significantly increased in prime urban markets, especially for high end units. The vacancy rates for professionally managed units in these markets ranged from 7.2% to 10.0% over the course of 2020 per the Joint Center for Housing Studies of Harvard University. Meanwhile, vacancy rates in suburban areas declined from 7.2% to 6.0%. Additionally, rental demand varied by quality segment as well with higher quality units leading vacancy rates as high as 10.5%. Despite this, the FreddieMac’s 2021 Midyear Outlook expects multifamily vacancy rates to stabilize due to an increase in multifamily rental demand and range between 5.25% and 5.75% by the end of 2021. FreddieMac notes that rent growth is expected for all classes and for concessions to decline. As of June 2021, 10.7% of all multifamily units offered concessions, which was down from 15.8% in June 2020.

Per the Joint Center for Housing Studies of Harvard University, despite the rising vacancy rates and slowing rent growth, rental rates remained strong, raising year over year by 7.1%. This increase was less than the 10.2% year over year increase noted in the previous year though. Rising vacancy rates, declining incomes, and increased operating costs pushed rental property returns into negative territory in 2020 according to the Joint Center for Housing Studies of Harvard University. The National Council of Real Estate Investment Fiduciaries reported that annualized declines in net operating incomes increased from 1.5% in the second quarter of 2020 to 10.2% in the third quarter and 17.2% in the fourth quarter of 2020. By the first quarter of 2021, net operating income was down nearly 14% from a year earlier. The increases in operating expenses related to the pandemic were partially to blame. According to a September 2020 survey by the National Apartment Association, a fifth of property owners said their expenses had increased at least 50% due to the pandemic, and another fifth said that expenses were up at least 25%. Despite the weakening returns, multifamily delinquencies barely increased. The Mortgage Bankers Association found that only 0.7% of the balance of multifamily loans were 60 or more days past due. Many households that fell behind on their housing payments in 2020 were already cost burdened. Per the Joint Center for Housing Studies of Harvard University, nearly half of all renter households spent more than 30% of their incomes on housing in 2019. Of these 37.1 million households, 17.6 million spent more than 50% of their incomes on housing. Policymakers enacted several measures to help relieve some of the financial burdens of struggling households. The CARES Act enacted in March 2020 provided direct payments to many individuals and expanded unemployment benefits. The Consolidated Appropriations Act in December 2020 provided an additional $25 billion in rental assistance, $600 direct stimulus payments, extension of unemployment benefits, and the extension of the CDC eviction moratorium.

Executive Summary

1

EXECUTIVE SUMMARY

Additionally, the American Rescue Plan enacted in March 2021 provided an additional $1,400 in direct payments to individuals, $300 per month in additional unemployment benefits, $10 billion in homeowner assistance, and another $5 billion in rental assistance. When the shutdown began in March 2020, rental demand significantly dropped in urban markets but in early 2021, recovery was evident in most markets. According to FreddieMac’s 2021 Midyear Outlook , the recent job growth has improved the outlook for the multifamily industry. They expect vacancy rates for 2021 to decrease to 5.0%, rental rates to increase 2.0% and gross income to grow 2.9%. The economy is expected to continue to grow for the rest of 2021 and likely into 2022.

RubinBrown’s 2021 Apartment Stats mirror many of the trends previously discussed. Overall vacancy rates remained low but experienced increases throughout the year. Additionally, monthly rents and operating costs increased during 2020. RubinBrown invites you to utilize this study as a development and management tool to compare your financial operations to the operating results of your peers. This study also provides sound comparable data to utilize in formulating an acquisition model. Like all compilations of data, it will be most useful when carefully and properly interpreted. We sincerely thank everyone who took time to participate in RubinBrown’s survey.

Real Estate Services Blog The RubinBrown Real Estate Services Blog is a value-added approach keeping clients and contacts informed about current, relevant topics affecting the real estate industry. www.RubinBrown.com/RealEstateBlog

RubinBrown Apartment Stats 2021

2

COMPARISON OF OPERATIONS

Government Assisted

Market Rate

Total Number of Projects

902

10

Average Project Age in Years Average Number of Units

10.33

10.80

109

164

Averages Per Unit: Monthly Rent

$978

$1,102

Square Feet

907

1,087

Rooms

4.48

4.19

Economic Occupancy

92.8%

98.6%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

41.8%

45.0%

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

11,740

12.94

100.0%

13,227

12.17

100.0%

(844) (164)

(0.93) (0.18) (0.07)

-7.2% -1.4% -0.5% 90.9%

(188)

(0.17) (0.01) (0.03)

-1.4% -0.1% -0.3% 98.2%

Collection Loss

(15) (34)

(62)

Concession Loss

Rent Collected Other Income Total Income

10,670

11.76

12,990

16.96

450

0.50

3.8%

205

0.19

1.6%

11,120

12.26

94.7%

13,195

12.15

99.8%

Expenses Salaries and Personnel

1,178

1.30 0.87 0.09 0.59 1.03 0.07 0.07 0.12 0.08 0.04 0.06 0.05 1.10 0.47 0.83 0.36

10.0%

1,264

1.16 0.37 0.25 0.52 0.98 0.19 0.15 0.18 0.11 0.04 0.06 0.02 0.96 0.40 1.12 0.14

9.6% 3.1% 2.1% 4.3% 8.1% 1.6% 1.3% 1.5% 0.9% 0.3% 0.5% 0.1% 7.9% 3.3% 9.2% 1.2%

Administrative

789

6.7% 0.7% 4.6% 8.0% 0.6% 0.6% 0.9% 0.6% 0.3% 0.4% 0.4% 8.5% 3.6% 6.4% 2.8%

407 271 570 210 167 199 119

Marketing

77

Management Fees

539 937

Utilities

1,065

Carpeting

65 67

Painting

Landscaping

109

HVAC

71 33 52 49

Appliances

43 63 19

Plumbing Electrical

Other Repairs and Services

995 426 753 328

1,045

Insurance

434

Real Estate Taxes

1,221

157

Other Taxes

Total Expenses

$6,468

$7.13

55.1%

$7,254

$6.65

55.0%

Net Operating Income Before Debt Service and Depreciation

$4,652

$5.13

39.6%

$5,941

$5.50

44.8%

Capital Expenditures

$873

$0.96

7.4%

–

–

0.0%

A = Dollars per unit, per year

B = Dollars per square foot, per year

C = Percent of gross potential rent

Comparison of Operations

3

GOVERNMENT ASSISTED

2020

2019

2018

Total Number of Projects

902

787

736

Average Number of Units

109

108

107

Averages Per Unit: Monthly Rent

$978

$865

$834

Square Feet

907

910

908

Rooms

4.48

4.47

4.48

Economic Occupancy

92.8%

92.1%

92.0%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

41.8%

38.8%

34.9%

A

B

C

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

11,740

12.94

100.0%

10,354

11.38

100.0%

$10,010

$11.02 (0.88) (0.15) (0.07)

100.0%

(844) (164)

(0.93) (0.18) (0.07)

-7.2% -1.4% -0.5% 90.9%

(822) (126)

(0.90) (0.14) (0.06)

-7.9% -1.2% -0.5% 90.4%

(801) (137)

-8.0% -1.4% -0.7% 89.9%

Collection Loss

Concession Loss

(62)

(55)

(68)

Rent Collected

10,670

11.76

9,351

10.28

9,004

9.92 0.73

Other Income

450

0.50

3.8%

611

0.67

5.9%

667

6.7%

Total Income

$11,120

$12.26

94.7%

$9,962

$10.95

96.3%

$9,671

$10.65

96.6%

Expenses Salaries and Personnel

1,178

1.30 0.87 0.09 0.59 1.03

10.0%

$1,143

$1.26

11.0%

$1,117

$1.23

11.2%

Administrative

789

6.7% 0.7% 4.6% 8.0%

624

0.69 0.07 0.54 1.01

6.0% 0.6% 4.7% 8.8%

735

0.81 0.09 0.54 1.02

7.3% 0.8% 4.9% 9.3%

Marketing

77

66

82

Management Fees

539 937

487 915

494 928

Utilities

All Repair, Maintenance and Contract Services

1,441

1.59

12.3%

1,545

1.70

14.9%

1,595

1.75

15.9%

Insurance

426 753 328

0.47 0.83 0.36

3.6% 6.4% 2.8%

403 599 313

0.44 0.66 0.34

3.9% 5.8% 3.0%

360 703 283

0.40 0.77 0.31

3.6% 7.0% 2.8%

Real Estate Taxes

Other Taxes

Total Expenses

$6,468

$7.13

55.1%

$6,095

$6.70

58.7%

$6,297

$6.93

62.9%

Net Operating Income Before Debt Service and Depreciation

$4,652

$5.13

39.6%

$3,867

$4.25

37.6%

$3,374

$3.72

33.7%

A = Dollars per unit, per year

B = Dollars per square foot, per year

C = Percent of gross potential rent

RubinBrown Apartment Stats 2021

4

AVERAGE MONTHLY RENT PER UNIT

2017

2016

$978

$1,000

701

562

$865

$900

$834

$802

$767

105

106

$800

$700

$767

$802

$600

923

899

4.50

4.50

$500

2020

2019

2018

2017

2016

92.3%

92.1%

34.5%

35.4%

ECONOMIC OCCUPANCY

100%

A

B

C

A

B

C

90%

80%

$9,208

$9.98

100.0%

$9,514

$10.58 (0.83) (0.15) (0.10)

100.0%

70%

(708) (130)

(0.77) (0.14) (0.05)

-7.7% -1.4% -0.5% 90.4%

(749) (134)

-7.9% -1.4% -0.9% 89.8%

60%

(46)

(88)

50%

8,324

9.02 0.80

8,543

9.50 0.73

40%

742

8.1%

661

6.9%

30%

$9,066

$9.82

98.5%

$9,204

$10.23

96.7%

20%

10%

0%

92.0%

92.3%

92.1%

92.8%

92.1%

$1,087

$1.18

11.8%

$1,079

$1.20

11.3%

735

0.80 0.08 0.50 0.96

8.0% 0.8% 5.0% 9.7%

560

0.62 0.08 0.53 0.98

5.9% 0.7% 5.0% 9.2%

2020

2019

2018

2017

2016

78

71

461 890

476 879

GROSS POTENTIAL RENT V.S. NET OPERATING INCOME PER SQUARE FOOT

1,477

1.61

16.1%

1,645

1.83

17.3%

$5.13 $12.94

333 577 302

0.36 0.63 0.33

3.6% 6.3% 3.3%

367 578 288

0.41 0.64 0.32

3.9% 6.1% 3.0%

2020

$4.25 $11.38

2019

$3.72 $11.02

$5,940

$6.45

64.6%

$5,943

$6.61

62.4%

2018

$3.37 $9.98

2017

$3,126

$3.37

33.9%

$3,261

$3.63

34.3%

$3.63 $10.58

2016

GROSS POTENTIAL RENT

NET OPERATING INCOME

Government Assisted

5

GOVERNMENT ASSISTED

EXPENSE TRENDS PER UNIT

2020

$1,178

$1,143

2019

Salaries and Personnel

$1,117

2018

$1,087

2017

2016

$1,079

$866

$690

Administrative and Marketing

$817

$813

$631

$1,441

$1,545

Contract Services and Repairs & Maintenance

$1,595

$1,477

$1,645

$1,507

$1,315

Taxes and Insurance

$876

1,346

$1,212

$1,223

$0

$250

$500

$750

$1,000 $1,250 $1,500

$1,750

RubinBrown Apartment Stats 2021

6

GOVERNMENT ASSISTED BY REGION

North

East/Northeast

Midwest

South/Southeast

Total Number of Projects

33

93

579

80

Average Project Age In Years Average Number of Units

12.94

12.30

9.95

8.81

103

118

108

101

Averages Per Unit: Monthly Rent

$1,165

$1,185

$855

$1,111

Square Feet

941

940

845

1,005

Rooms

4.32

4.72

4.34

5.40

Economic Occupancy

91.2%

92.2%

92.8%

93.5%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

42.4%

43.9%

39.2%

41.9%

A

B

C

A

B

C

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

13,976

14.85 100.0%

14,223

15.14 100.0%

10,262

12.15 100.0%

13,337

13.27 100.0%

(1,233) (1.31) (270) (0.29) (59) (0.06)

-8.8% -1.9% -0.4% 88.9%

(1,109) (1.18) (163) (0.17) (31) (0.03)

-7.8% -1.1% -0.2% 90.9%

(736) (0.87) (132) (0.16) (65) (0.08)

-7.2% -1.3% -0.6% 90.9%

(867) (0.86) (192) (0.19) (78) (0.08)

-6.5% -1.4% -0.6% 91.5%

Collection Loss

Concession Loss

Rent Collected

12,414

13.19

12,920

13.76

9,329

11.04

12,200

12.14

932

0.99

6.7%

403

0.43

2.8%

397

0.47

3.9%

375

0.37

2.8%

Other Income

$9,726 $11.51

94.8% $12,575 $12.51

94.3%

$13,346 $14.18

95.6% $13,323 $14.19

93.7%

Total Income

Expenses Salaries and Personnel

1,326

1.41 1.03 0.11 0.58 1.25 0.15 0.08 0.12 0.10 0.02 0.05 0.14 1.26 0.46 0.94 0.48

9.5% 7.0% 0.7% 3.9% 8.4% 1.0% 0.6% 0.8% 0.6% 0.1% 0.4% 0.9% 8.5% 3.1% 6.3% 3.2%

1,294

1.38 1.03 0.10 0.65 1.22 0.12 0.06 0.13 0.09 0.04 0.07 0.07 1.13 0.42 1.07 0.37

9.1% 6.8% 0.6% 4.3% 8.0% 0.8% 0.4% 0.9% 0.6% 0.3% 0.4% 0.5% 7.5% 2.8% 7.1% 2.5%

1,084

1.28 0.87 0.08 0.58 0.99 0.05 0.07 0.10 0.07 0.03 0.05 0.05 1.10 0.44 0.87 0.37

10.6%

1,395

1.39 0.81 0.10 0.59 1.02 0.12 0.13 0.18 0.12 0.06 0.08 0.06 0.98 0.59 0.67 0.35

10.5%

Administrative

971 100 543

972

734

7.2% 0.7% 4.8% 8.1% 0.4% 0.6% 0.8% 0.6% 0.3% 0.4% 0.4% 9.0% 3.6% 7.1% 3.0%

817 105 596 122 128 179 124

6.1% 0.8% 4.5% 7.7% 0.9% 1.0% 1.3% 0.9% 0.4% 0.6% 0.5% 7.4% 4.5% 5.0% 2.7%

Marketing

90

71

Management Fees

607

492 832

Utilities

1,180

1,144

1,027

Carpeting

140

110

41 61 82 62 27 44 38

Painting

79

57

Landscaping

111

123

HVAC

90 20 49

89 42 63 66

Appliances

57 85 64

Plumbing Electrical

132

Other Repairs and Services

1,183

1,066

927 373 732 311

989 594 669 353

Insurance

436 880 451

393

Real Estate Taxes

1,005

349

Other Taxes

Total Expenses

$7,691

$8.18 55.0%

$7,470

$7.95 52.5%

$5,911

$7.00

57.6%

$7,304

$7.25 54.8%

Net Operating Income Before Debt Service & Depreciation

$5,655

$6.00 40.6%

$5,853

$6.22 41.2%

$3,815

$4.51 37.2%

$5,271

$5.26 39.5%

A = Dollars per unit, per year

B = Dollars per square foot, per year

C = Percent of gross potential rent

RubinBrown Apartment Stats 2021

8

MONTHLY RENT PER UNIT

South/Southwest

West/Northwest

22

45

$1,165

$1,185

11.73

11.93

119

117

$1,574

$855

$1,047

$1,574

$1,047

$1,111

1,070

873

4.47

3.21

94.4%

96.1%

35.0%

51.6%

A

B

C

A

B

C

NET OPERATING INCOME PER SQUARE FOOT

12,563

11.74 100.0%

18,886

21.62 100.0%

$6.00

$6.24

(703) (0.66) (236) (0.22) (26) (0.02)

-5.6% -1.9% -0.2% 92.3%

(728) (0.83) (357) (0.41) (64) (0.07)

-3.9% -1.9% -0.3% 93.9%

$10.97

$4.51

11,598

10.84

17,737

20.31

$3.99

$5.26

619

0.58

4.9%

840

0.96

4.4%

$12,217 $11.42

97.2%

$18,577 $21.27

98.3%

1,248

1.17 0.74 0.08 0.52 1.08 0.10 0.07 0.22 0.09 0.04 0.08 0.11 1.04 0.52 1.28 0.29

9.9% 6.3% 0.6% 4.4% 9.2% 0.9% 0.6% 1.9% 0.8% 0.3% 0.6% 1.0% 8.9% 4.4%

1,650

1.89 0.99 0.10 0.99 1.72 0.12 0.11 0.21 0.07 0.06 0.09 0.06 1.92 0.72 0.72 0.53

8.7% 4.6% 0.4% 4.6% 7.9% 0.5% 0.5% 1.0% 0.3% 0.3% 0.4% 0.3% 8.9% 3.3% 3.3% 2.5%

793

862

82

84

552

867

ECONOMIC OCCUPANCY

1,154

1,499

112

103

91.2%

71

93

92.2%

239

181

96.1%

94 40 81

61 51 83 51

92.8%

94.4%

93.5%

123

1,113

1,680

558

627 629 465

1,371

10.9%

310

2.5%

$7,941

$7.43 63.2%

$8,986 $10.30

47.5%

North

West/Northwest

South/Southeast East/Northeast

$4,276

$3.99 34.0%

$9,591 $10.97

50.8%

South/Southwest

Midwest

Government Assisted

9

GOVERNMENT ASSISTED BY PROJECT SIZE

0-50 Units

51-100 Units

101-150 Units

151-200 Units

Over 200 Units

Total Number of Projects

86

135

101

40

38

Average Project Age In Years Average Number of Units

10.98

13.35

15.11

15.15

15.00

37

78

121

175

280

Averages Per Unit: Monthly Rent

850 990 5.09

866 889 4.21

951 920 4.24

800 926 4.48

863

Square Feet

915.04

Rooms

4.64

Economic Occupancy

94.4%

92.5%

92.2%

93.5%

92.5%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

28.5%

28.6%

38.2%

35.1%

42.0%

A

B

A

B

A

B

A

B

A

B

Revenues Gross Potential Rent Less: Vacancy Loss

$10,199 $10.31 (574) (0.58) (132) (0.13) (120) (0.12)

$10,393 $11.70 (779) (0.88) (193) (0.22)

$11,417 $12.42 (895) (0.97) (225) (0.24)

$9,596 $10.36 (625) (0.68) (180) (0.19)

$10,354 $11.32 (779) (0.85) (168) (0.18)

Collection Loss

(42) (0.05)

(29) (0.03)

(25) (0.03)

(28) (0.03)

Concession Loss

Rent Collected

9,373

9.48 0.55

9,379

10.55

10,269

11.18

8,765

9.47 0.32

9,380

10.25

Other Income

549

328

0.37

395

0.43

296

496

0.54

Total Income

$9,922 $10.03

$9,707 $10.92

$10,664 $11.60

$9,061

$9.79

$9,876 $10.79

Expenses Salaries and Personnel

$1,170

$1.18

$1,335

$1.50

$1,169

$1.27

$1,113

$1.20

$1,121

$1.23

Administrative

792

0.80 0.05 0.63 0.92 0.03 0.05 0.16 0.11 0.04 0.05 0.06 1.33 0.63 0.84 0.27

717

0.81 0.04 0.62 1.22 0.10 0.05 0.16 0.10 0.07 0.08 0.07 1.28 0.72 0.65 0.34

663

0.72 0.05 0.63 1.17 0.13 0.07 0.14 0.08 0.05 0.07 0.04 1.27 0.49 0.67 0.32

642

0.69 0.04 0.53 0.95 0.10 0.05 0.11 0.07 0.04 0.05 0.04 1.08 0.52 0.61 0.27

517

0.57 0.08 0.53 0.99 0.10 0.08 0.10 0.08 0.04 0.05 0.03 0.79 0.44 0.91 0.25

Marketing

47

36

44

33

74

Management Fees

628 914

554

578

488 882

487 909

Utilities

1,080

1,077

Carpeting

31 54

87 49

123

88 46 99 61 41 51 38

89 69 92 72 32 49 28

Painting

61

Landscaping

160 106

139

131

HVAC

88 62 68 66

70 50 63 35

Appliances

44 46 59

Plumbing Electrical

Other Repairs and Services

1,317

1,135

1,172

1,003

718 406 830 231

Insurance

624 827 271

641 574 304

449 613 290

479 561 252

Real Estate Taxes

Other Taxes

Total Expenses

$7,090

$7.15

$6,935

$7.81

$6,588

$7.17

$5,877

$6.35

$5,724

$ 6.27

Net Operating Income Before Debt Service and Depreciation

$2,832

$2.88

$2,772

$3.11

$4,075

$4.44

$3,185

$3.43

$4,151

$4.53

Capital Expenditures

$410

$0.41

$352

$0.36

$436

$0.44

$443

$0.45

$416

$0.42

A = Dollars per unit, per year

B = Dollars per square foot, per year

RubinBrown Apartment Stats 2021

10

LOW INCOME TAX CREDIT PROJECTS

2020

2019

2018

Total Number of Projects Average Number of Units

808

666

595

110

107

109

Averages Per Unit: Monthly Rent

$984

$858

$833

Square Feet

919.61

908

913

Rooms

4.48

4.49

4.47

Economic Occupancy

92.9%

92.2%

92.7%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

42.3%

38.6%

35.0%

A

B

C

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

$11,804

$12.84 (0.92) (0.17) (0.07)

100.0%

$10,483

$11.55 (0.90) (0.14) (0.07)

100.0%

$9,996

$10.95 (0.80) (0.15) (0.08)

100.0%

(843) (160)

-7.1% -1.4% -0.5% 91.0%

(819) (125)

-7.8% -1.2% -0.6% 90.4%

(732) (134)

-7.3% -1.3% -0.7% 90.6%

Collection Loss

(64)

(62)

(74)

Concession Loss

Rent Collected

10,737

11.68

9,477

10.44

9,056

9.92 0.72

456

0.50

3.9%

593

0.65

5.7%

655

6.6%

Other Income

$11,193

$12.18

94.9%

$10,070

$11.09

96.1%

$9,711

$10.64

97.2%

Total Income

Expenses Salaries and Personnel

$1,173

$1.28

9.9% 6.7% 0.7% 4.6% 7.9%

$1,148

$1.26

11.0%

$1,104

$1.21

11.0%

Administrative

796

0.87 0.09 0.59 1.02

622

0.69 0.08 0.54 1.02

5.9% 0.7% 4.7% 8.8%

700

0.77 0.10 0.55 1.01

7.0% 0.9% 5.0% 9.2%

Marketing

82

72

89

Management Fees

538 935

493 921

499 924

Utilities

All Repair, Maintenance and Contract Services

1,411

1.53

12.0%

1,563

1.72

14.9%

1,591

1.74

15.9%

Insurance

419 776 325

0.46 0.84 0.35

3.6% 6.6% 2.8%

411 630 322

0.45 0.69 0.35

3.9% 6.0% 3.1%

364 756 286

0.40 0.83 0.31

3.6% 7.6% 2.9%

Real Estate Taxes

Other Taxes

Total Expenses

$6,455

$7.03

54.8%

$6,182

$6.80

59.0%

$6,313

$6.91

63.2%

Net Operating Income Before Debt Service and Depreciation

$4,738

$5.15

40.1%

$3,888

$4.29

37.1%

$3,398

$3.73

34.0%

A = Dollars per unit, per year

B = Dollars per square foot, per year

C = Percent of gross potential rent

RubinBrown Apartment Stats 2021

12

AVERAGE MONTHLY RENT PER UNIT

2017

2016

$984

$1,000

597

466 111

107

$858

$900

$833

$812

$771

$800

$771

$812

$700

929

885

4.48

4.48

$600

$500

93.2%

92.6%

2020

2019

2018

2017

2016

34.8%

36.6%

ECONOMIC OCCUPANCY

A

B

C

A

B

C

100%

90%

$9,253

$9.96

100.0%

$9,748

$11.01 (0.81) (0.14) (0.10)

100.0%

80%

(633) (117)

(0.68) (0.13) (0.04)

-6.8% -1.3% -0.4% 91.5%

(717) (128)

-7.4% -1.3% -0.9% 90.4%

70%

(41)

(87)

60%

8,462

9.11 0.78

8,816

9.96 0.80

50%

723

7.8%

707

7.2%

40%

$9,185

$9.89

99.3%

$9,523

$10.76

97.7%

30%

20%

10%

$1,084

$1.17

11.7%

$1,086

$1.23

11.1%

0%

92.2%

92.6%

92.9%

92.7%

93.2%

750

0.81 0.09 0.50 0.95

8.1% 0.9% 5.0% 9.6%

570

0.64 0.09 0.55 1.01

5.9% 0.8% 5.0% 9.1%

2020

2019

2018

2017

2016

80

77

466 885

490 892

GROSS POTENTIAL RENT V.S. NET OPERATING INCOME PER SQUARE FOOT

1,467

1.58

15.9%

1,637

1.85

16.8%

329 621 311

0.35 0.67 0.33

3.6% 6.7% 3.4%

362 624 296

0.41 0.71 0.33

3.7% 6.4% 3.0%

$5.15 $12.84

2020

$4.29 $11.55

2019

$5,993

$6.45

64.9%

$6,034

$6.82

61.9%

$3.73 $10.95

2018

$3,192

$3.44

34.4%

$3,489

$3.94

35.8%

$3.44 $9.96

2017

$3.94 $11.01

2016

NET OPERATING INCOME

GROSS POTENTIAL RENT

Low Income Tax Credit Projects

13

MARKET RATE

2020

2019

2018

Total Number of Projects Average Number of Units

10

12

33

164

164

198

Averages Per Unit: Monthly Rent

$1,102

$1,092

$1,383

Square Feet

1,087

1,087

835

Rooms

4.19

4.19

4.03

Economic Occupancy

98.6%

98.7%

89.5%

Net Operating Income Before Debt Service & Depreciation as a Percentage of Total Income

45.0%

45.9%

50.3%

A

B

C

A

B

C

A

B

C

Revenues Gross Potential Rent Less: Vacancy Loss

$13,227

$12.17 (0.17) (0.01) (0.03)

100.0%

$13,101

$12.05 (0.16) (0.02) (0.04)

100.0%

$16,598

$19.88 (2.09) (0.24) (0.10)

100.0% -10.5% -1.2% -0.5% 87.8%

(188)

-1.4% -0.1% -0.3% 98.2%

(172)

-1.3% -0.2% -0.3% 98.2%

(1,746)

Collection Loss

(15) (34)

(24) (42)

(201)

(81)

Concession Loss

Rent Collected

12,990

11.96

12,863

11.83

14,570

17.45

205

0.19

1.6%

198

0.18

1.5%

1,123

1.34

6.8%

Other Income

$13,195

$12.15

99.8%

$13,061

$12.01

99.7%

$15,693

$18.79

94.5%

Total Income

Expenses Salaries and Personnel

$1,264

$1.16

9.6% 3.1% 2.1% 4.3% 8.1%

$1,319

$1.21

10.1%

$934

$1.12

5.6% 4.7% 1.8% 3.9% 5.3%

Administrative

407 271 570

0.37 0.25 0.52 0.98

318 266 549

0.29 0.24 0.50 0.96

2.4% 2.0% 4.2% 8.0%

788 301 648 883

0.94 0.36 0.78 1.06

Marketing

Management Fees

Utilities

1,065

1,046

All Repairs and Maintenance and Contract Services

1,866

1.72

14.1%

1,979

1.82

15.1%

1,791

2.15

10.8%

Insurance

434

0.40 1.12 0.14

3.3% 9.2% 1.2%

392

0.36 1.06 0.05

3.0% 8.8% 0.4%

325

0.39 2.24 0.30

2.0%

Real Estate Taxes

1,221

1,152

1,871

11.3%

157

51

254

1.5%

Other Taxes

Total Expenses

$7,254

$6.65

55.0%

$7,072

$6.49

54.0%

$7,795

$9.34

47.0%

Net Operating Income Before Debt Service and Depreciation

$5,941

$5.50

44.8%

$5,989

$5.52

45.7%

$7,898

$9.45

47.6%

A = Dollars per unit, per year

B = Dollars per square foot, per year

C = Percent of gross potential rent

RubinBrown Apartment Stats 2021

14

AVERAGE MONTHLY RENT PER UNIT

2017

2016

$2,000

18

28

296

288

$1,383, ,

$1,600

$1,246

$1,102

$1,092

$949

$1,200

$1,246

$949

$800

929

943

4.38

4.24

$400

$0

93.7%

90.7%

2020

2019

2018

2017

2016

53.3%

50.0%

ECONOMIC OCCUPANCY

A

B

C

A

B

C

100%

90%

$14,946

$16.09 (1.01) (0.15) (0.04)

100.0%

$11,383

$12.07 (1.12) (0.13) (0.22)

100.0%

80%

(938) (138)

-6.3% -0.9% -0.2% 92.6%

(1,057)

-9.3% -1.1% -1.8% 87.9% 11.4%

70%

(121) (203)

60%

(35)

13,835

14.89

10,002

10.61

50%

245

0.26

1.6%

1,294

1.37

40%

$14,080

$15.15

94.2%

$11,296

$11.97

99.2%

30%

20%

10%

$763

$0.82

5.1% 5.8% 1.0% 3.0% 5.0%

$649

$0.69

5.7% 5.1% 1.4% 4.0% 6.1%

0%

92.1% 98.6%

90.0% 98.7%

89.1% 89.5%

90.8% 93.7%

88.6% 90.7%

870 151 452 745

0.94 0.16 0.49 0.80

580 164 459 695

0.62 0.17 0.49 0.74

2020

2019

2018

2017

2016

GROSS POTENTIAL RENT V.S. NET OPERATING INCOME PER SQUARE FOOT

1,813

1.95

12.1%

1,591

1.69

14.0%

232 996 547

0.25 1.07 0.59

1.6% 6.7% 3.7%

224

0.24 1.12 0.24

2.0% 9.3% 2.0%

$5.50 $12.17

1,053

2020

231

$5.52 $12.05

2019

$6,569

$7.07

44.0%

$5,646

$5.98

49.6%

$9.45 $19.88

2018

$7,511

$8.08

50.2%

$5,650

$5.99

49.6%

$8.08 $16.09

2017

$5.99 $12.07

2016

NET OPERATING INCOME

GROSS POTENTIAL RENT

Market Rate

15

RUBINBROWN REAL ESTATE SERVICES GROUP

Affordable Housing This complex and highly regulated industry has been one that we have focused on since the early days of HUD and the advent of the federal low-income housing tax credit program. Historic Tax Credit Services Our team has extensive experience with consulting on historic rehabilitation projects across the country. New Markets Tax Credit Services In addition to initial program guidance and consulting, our experts can help you with NMTC application assistance. Opportunity Zones This incentive program was created by the Tax Cuts & Jobs Act of 2017 and is designed to bring growth to communities across the country. Our team of opportunity zone experts can help guide you through the complexities of the program by helping with transaction structuring, compliance, tax and accounting. Renewable Energy There are many new financial incentives for companies in the renewable energy sector. We can help you sort through the opportunities and provide financial guidance to move your businesses forward.

For more than 30 years, RubinBrown’s Real Estate Services Group has developed a strong reputation nationally as a leader in accounting and advisory services. Today, the group provides specialized services to real estate entities from coast to coast. RubinBrown’s Real Estate Services Group provides a full range of assurance, tax, business planning and consulting services to:

· Investment funds · Real estate partnerships · Developers

· Management companies · Governmental agencies · Syndicators and investors · Financial institutions · Construction-related companies

Through the years, our clients have grown to depend on our expertise in five key areas of the real estate sector including affordable housing, historic tax credit services, new markets tax credit services, opportunity zones and renewable energy.

RubinBrown Apartment Stats 2021

16

RubinBrown Real Estate Services Group’s services include:

Tim Anderson, CPA Partner | St. Louis 314.678.3545 tim.anderson@rubinbrown.com Dave Herdlick, CPA Partner & Vice Chair | St. Louis 314.290.3383 dave.herdlick@rubinbrown.com Bryan Keller, CPA, CGMA Partner-In Charge |St. Louis 314.290.3341 bryan.keller@rubinbrown.com Jeff Cunningham, CPA Partner | Denver 303.952.1257 jeffrey.cunningham@rubinbrown.com Chris Langley, CPA Partner | Chicago 847.972.5964 chris.langley@rubinbrown.com

· Transaction and tax consulting services · Assurance and accounting services · Financial projections · Complex deal structuring · Capital adjuster calculations · Cost certifications

· Affordable Housing consulting and compliance · Historic Tax Credit consulting and compliance · New Markets Tax Credit consulting and compliance · Renewable Energy consulting and compliance · Opportunity Zone consulting and compliance · HUD audit and consulting services · Deal exit consulting and troubled project workouts · Nonprofit consulting and compliance · Capital asset segregation analysis · Sales and Use tax consulting · Business valuations and appraisals · Design and evaluation of financial reporting and internal control systems

RubinBrown Real Estate Services Group

17

1.800.678.3134 www.RubinBrown.com

@RubinBrown RubinBrown LLP

Founded in 1952, RubinBrown’s team members establish best practices within specific industry segments and work to serve the community both inside and outside the workplace. RubinBrown’s mission is to help clients build and protect value, while at all times honoring the responsibility to serve the public interest.

RubinBrown is also an independent member of Baker Tilly International, a high-quality, dedicated network of 126 independent firms in 147 countries.