Risk Factors Update Summary

• Added properties in Pennsylvania to the portfolio, increasing exposure to economic cycles. This change diversifies risk.
• An internalization transaction could result in a transition fee of up to 4.5 times the compensation paid to the Advisor.
• No cash distributions paid since 2020, uncertainty on future payments. This impacts investor income.
• Estimated Per-Share NAV based on subjective judgments, may not reflect true asset value. This affects shareholder perception.
• The Estimated Per-Share NAV is expected to be adjusted from early April 2023 to late March 2024.
• The termination rights are limited, making it difficult to renegotiate terms or replace the Advisor.
• Increased total outstanding indebtedness to $1.2 billion by the end of 2023. This raises financial leverage.
• Increased borrowing costs due to the federal funds rate hike in 2022 and 2023. This impacts interest expenses.
• Potential increase in cost of variable-rate debt due to transitioning to SOFR. This affects interest expenses.
• The limit on the number of shares a person may own is set at no more than 9%.
• The board is divided into three classes of directors, potentially affecting premium prices for stockholders.
• Cyber risks and security breaches could result in material disruptions to business operations.
• Transitioning from LIBOR to SOFR, with 62.5% of total gross debt tied to variable rates. This affects interest rate risk.
• The termination fee in case of a change in control could be up to four times the compensation paid to the Advisor.