1. The Multifamily Market Today CREW Network Convention & Marketplace September 15, 2011

2. Outlook for Multifamily Industry is Bright Strong demand from growing “Echo Boom” population and positive immigration inflows 98% of jobs created in the past 12 months went to the 20-34 age group Homeownership rate declining steadily Negative sentiment toward home ownership Limited new supply of housing expected for next several years 2

3. 3 Favorable Demographics with High Propensity to Rent Source: Witten Advisors Over two-thirds of this age group choose to rent ActualProjected

4. 4 Pent-up Demand from Young Adults at Home Source: Witten Advisors

5. 5 Homeownership Rate Declining Actual 2Q11 65.9% Source: Witten Advisors

6. Many people choosing to rent rather than buy Moveout rates from apartment residents purchasing or renting homes have declined dramatically (23% peak vs. 11% in 2011) Strong credit scores and significant down payments now required by mortgage lenders 6 Negative Sentiment Toward Home Ownership

7. 7 Housing Supply Multifamily supply near historical lows due to tighter capital standards Excess single-family home inventory doesn’t compete with well-located apartment homes Vacant and foreclosed homes are located in remote areas and lack amenities offered by professionally managed apartment communities

8. 8 Multifamily Starts Source: Witten Advisors