Risk Factors Update Summary

• The annual rate of inflation in the United States for December 2023 was 3.4%, with a recent peak of 9%. This change might result in increased costs and impact financial results.
• Interest rates were expected to rise into the third quarter of 2023, impacting borrowing costs. The Federal Reserve has held rates steady since July 2023, but future increases are uncertain.
• The number of shares of Series A Preferred Stock issued and outstanding increased to 436,675.
• The company's exposure to increases in interest rates was $74 million in floating rate debt in 2023, which increased to $94 million in 2024. This change may affect financial stability.
• The total authorized shares of preferred stock for issuance increased to 250,000,000.
• The company's portfolio primarily consists of interests in single-family properties, with limited operating history as a REIT. This lack of history may impact long-term financing terms.
• The Board could classify for issuance up to 220,000,000 preferred stock with priority rights.
• Legislative actions affecting the single-family residential housing industry could negatively impact business. Recent legislation may discourage institutional investor purchases, affecting financial results.
• Property taxes, HOA fees, and insurance costs have increased, potentially impacting financial results negatively.
• The company faces significant competition in acquiring properties, with costs and expenses affecting cash available for distribution.