2. Motorsports Facility Valuation Issues Fitzhugh L. Stout, MAI Senior Managing Director Integra Realty Resources - Charlotte Douglas L. Nickel, MAI Senior Managing Director Integra Realty Resources – Wilmington, DE

3. A Brief History November 2, 1895 – First American Automobile Race – Exhibition race between Chicago & Waukegan and back – 92 miles – $500 prize (roughly $14,000 today) – Winner completed the race in 8 hours and 44 minutes – Average speed: 10.5 miles per hour! First Indianapolis Race – May 29, 1910 – 200 miles – Average speed 72 miles per hour 2013 Indy 500 – Average speed 167.734 miles per hour – Winner purse $2,353,355

4. Types of Motorsports Facilities Oval Track Drag Strips Road Courses

5. How Did All This Get Started?

6. Oval Track Typically ½ mile to 2 mile oval or “oval” shaped Dirt (smaller facilities) or Asphalt/Concrete paving Stadium style setting Counterclockwise (Left hand turns only) Some include infield road courses (Daytona, Indy) Multi-vehicle competition Larger facilities – Located in mass media markets – Sanctioned events (NASCAR, IRL/CART) – Typically televised events

7. Drag Strips ½ mile to 1 mile Two competing lanes Grandstands flanking both sides of the starting lanes Head to head competition Located in mass media and smaller markets Upper tier events sponsored by NHRA

8. Road Courses 1 to 4 miles in length High and low speed left and right turns Test amateur and professional racer’s skills Clockwise direction (consistent with European standards) Outskirts of major market areas or remote market areas Few sanctioned events, mostly club-style events (SCCA, NASA, AMA, enthusiast/brand organizations) Limited grandstands and spectator areas

9. NASCAR & It’s Impact Background History of NASCAR (National Association for Stock Car Auto Racing) What makes NASCAR Unique NASCAR Track Types NASCAR Racing Series Components of Value Evidence of Race Date Value Evidence of Superadequacy Valuation Process

10. History of NASCAR 1920-1933 Prohibition/Bootlegging 1947-1950 NASCAR Founded 1954-1959 First New Speedway 1960-1970 Richard Petty Wins First Winston Cup Championship 1980-1989 Fortune 500 Sponsorship Begins 1990-2000 NASCAR Reaches New Fans 2000-2010 The New Millennium

11. What Makes NASCAR Unique NASCAR is privately held NASCAR sanctions races on an annual basis

12. NASCAR Track Types

13. Bristol Motor Speedway

14. Atlanta Motor Speedway

15. Daytona International Motor Speedway

16. Indianapolis Speedway

17. Watkins Glen International

18. Competitive NASCAR Tracks

20. Competitive Local Tracks

22. DEFUNCT NASCAR TRACKS NASCAR Track Issues

23. Decline in Industry Income Industry Decline in Income (in thousands) Years Ending December 31201220112010200920082007 SMI Historic IncomeN/A$320,451$323,521$376,719$442,834$419,116 Annual Decline-0.9%-14.1%-14.9%5.7%N/A Total Change (2007 to 2011)-23.5% ISC Historic Income$387,932$398,903$415,708$474,327$570,584N/A Annual Decline-2.8%-4.0%-12.4%-16.9%N/A Total Change (2008 to 2012)-32.0% DMI Historic Income$24,092$27,972$36,358$56,747$58,780N/A Annual Decline-13.9%-23.1%-35.9%-3.5%N/A Total Change (2008 to 2012)-59.0% Combined Historic IncomeN/A$747,326$775,587$907,793$1,072,198N/A Annual Decline-3.6%-14.6%-15.3% Total Change (2008 to 2011)-30.3% Note: Preceding does not include broadcast revenue which has been added in below Combined Income including Broadcast Revenue N/A$1,187,400$1,202,444$1,306,954$1,482,526N/A Annual Decline-1.3%-8.0%-11.8%N/A Total Change (2008 to 2011)-19.9%

24. Historic Attendance 201220112010200920082007200620052004 NASCAR NASCAR Race Attendance122,255135,504230,822237,781235,114285,503325,655354,711357,458 Annual Change-9.78%-41.30%-2.93%1.13%-17.65%-12.33%-8.19%-0.77%N/A Change from 2004 to 2010-35.43% Change from 2004 to 2012-65.80% Source: Atlanta Motor Speedway Note: One of two Sprint Cup race dates moved in 2011

25. EVIDENCE OF RACE DATE VALUE EVIDENCE OF SUPER ADEQUACY

26. Cost Approach Physical Obsolescence Functional Obsolescence External Obsolescence

27. Sales Comparison Approach Summary of Comparable Improved Sales No.Name/Address Sale Date; Status Acres; Oval Track Length Prop Rights Effective Real Estate Sale Price# of Seats$/Seat 1North Carolina Motor SpeedwayOct-07244.24–$4,400,00060,113$73.20 US Highway 1 North and North NC Hwy 177 Closed–– Rockingham1.017Fee Simple Richmond County NC 2Pikes Peak Int. RacewayOct-051147.69–$10,330,00043,400$238.02 16650 Midway Ranch Rd.Closed–– Fountain1.0Fee Simple El Paso County CO 3Martinsville SpeedwayJul-04250.00–$4,300,00065,000$66.15 340 Speedway Rd.Closed–– RidgewayFee Simple Henry County0.526 VA 4USA International SpeedwayMay-07104.55–$6,200,00011,000$563.64 3401 Old Polk City Rd.Closed–– Lakeland0.75Fee Simple Polk County FL 5New Hampshire Int'l SpeedwayJan-081174.84–$38,700,00095,561$404.98 N.H. Route 106Closed–– Loudon1.058Fee Simple Merrimack County NH 6Moroso Motorsports ParkApr-08187.00–$7,500,00011,000$681.82 17047 Bee Line Hwy.Closed–– Jupiter2.25Fee Simple Palm Beach County FL 7Memphis Motorsports ParkJan-11342.00–$2,062,50025,000$82.50 5500 Victory Ln.Closed–– Millington0.75Fee Simple Shelby County TN 8Kentucky SpeedwayMay-08848.00–$62,550,00068,089$918.65 1 Speedway Dr.Closed–– Sparta1.5Fee Simple Gallatin County KY

28. Income Capitalization Approach Three direct capitalization methods: Traxprofile Survey Method Standard Going Concern Method Non-NASCAR Analysis.

29. Subject Data Available Detailed Income and Expense Information Utilization Rates Separate NASCAR Event vs. non-NASCAR Event revenue and income

30. Capitalization Rate Selection

31. TraxProfile Survey Method Traxprofile General Admissions Example Planned Events35 Complete Rainouts (Region 3)18.1%Cap Rate:10.2765% Revenue Events28.6656.335Tax Rate:1.6131% Rounded29Combined Rate11.8896% Average Attendance per Event5,000 Average Price Per Ticket$8.00 General Admissions Revenue$1,160,00042% Total Revenue$2,761,905Value:$5,500,000 Back Gate (Pit Admissions)25%$690,476 Food and Beverage21%$580,000 Other Income12%$331,429 Overall General Expenses79%$2,181,905 Net Revenue from Events$580,000 Expenses Advertising2.5%$69,048 Food6.0%$165,714 Insurance4.0%$110,476 Payroll7.0%$193,333 Purse49.5%$1,367,143 Rent7.0%$193,333 Other cost of sales3.0%$82,857 79.0%$2,181,905 Gross Profit$580,000 Track Rentals Days100.00 Average Rental Rate per Day$2,500 Total Track Rental Income$250,000 Total Income$830,000 Business Profit20%$166,000 Miscellaneous$10,000 Total Other Deductions$176,000 Estimated Net Income to the RE$654,000

32. GOING CONCERN METHOD MODIFIED GOING CONCERN METHOD VS.

33. Revenues Oval Tracks – Ticket sales/gate receipts – Sanctioning fees – Daily usage fees (track rental for practice/testing) – Advertising/sponsorships – Television fees – Concessions Dragstrips – Ticket sales/gate receipts – Sanctioning fees – Advertising/sponsorship – Television fees – Concessions Road Courses – Daily usage fees (track rental) – Program fees – Advertising/sponsorship – Concessions/gasoline sales – Gate receipts

34. Road Course Revenues Track Rental – Weather/Climate Based – Utilization Generally all weekend days (Saturday & Sunday) – 80% - 100% used Most Fridays – 65% - 80% Some weekdays (M-Th) – 10% - 35%

36. Expenses Fixed – Real Estate Taxes – Insurance Variable – Payroll – Racetrack Operations – Repairs & Maintenance – Utilities – Food service/concessions – Fuel – Administrative Reserves!

37. Case Study 1

38. Case Study 2

39. Case Study 3

40. Capitalization Rate Good question! Property desirability?

41. Investor Surveys

42. Band of Investment

45. Sources Financials for corporations – www.morningstar.com Latest NASCAR information – www.NASCAR.COM, http://www.new2nascar.com/history.htm, and http://nascarnation.us/page/a-brief-history-of-nascar. Individual track information – www.trackname.com or Google track name Articles on track valuation – www.ai.com (Lum Library) Information on development of capitalization rates for race industry - Ibbotson SBBS Valuation Yearbook 2012 or www.morningstar.com Rates of Return – www.realtyrates.com

46. Open Discussion