UnderstandingThe Balance Analysis

The Balance Analysis in this particular case will track overall property performance, recognizing those properties that are exceeding expectations and identify those with areas of opportunity for improvement. The Analysis is designed to gauge such performances by comparing each property equally.

The following describes in detail how the scores for each of the five different categories are determined:

• Customer Service• Employee Retention• Net Operating Income• Economic Occupancy• Sequential Cash Collections.

PROPERTYCUSTOMER

SERVICE POINTS

The Schuh on 5th

9.2 1

Holland Meadows

7.0 2

The highest average score receives the #1 rating

If ten residents were called and the below scores were give the property rating would be 7.0 (average of total sum):

CSI scores are based off of these ratings:

10 if completely satisfied

7.5 if somewhat satisfied

5 if neither satisfied nor dissatisfied

2.5 if somewhat dissatisfied

0 if completely dissatisfied

*We use the last 3 mos. rolling average

#1

Customer Service

Resident #1 7.5

Resident #2 5

Resident #3 7.5

Resident #4 5

Resident #5 10

Resident #6 7.5

Resident #7 5

Resident #8 7.5

Resident #9 5

Resident #10 10

Average Property Rating 7.0

MONTH PROPERTY

# OF EMPLOYEE

S

EMPLOYEES SEPARATED THIS PERIOD

BALANCE

# OF EMPLOYEES

RETENTION

JanuaryCoppess

Court10 2 8 10 80%

FebruaryCoppess

Court9 0 9 9 100%

MarchCoppess

Court10 0 10 10 100%

AprilCoppess

Court10 1 9 10 90%

MayCoppess

Court9 0 9 9 100%

Turnover is the ratio of the number of Associates that had to be replaced in a given period of time, to the average number of workers. So here’s the math:

*We use a cumulative year-to-date calculation

Employee Retention

PROPERTYEMPLOYEE RETENTION

(%)POINTS

Coppess Court 94% 1

Holland Meadows 91% 2

The highest % equals #1 on the rating

#1

Determine number of Associates

Determine how many people terminated

(voluntary and involuntary term’s)

Divide the number of associates left on the team by the number of associates and that is the

Retention Percentage.

This is a cumulative year-to-date calculation and unless the open position will not be re-filled, the separations are considered.

Layoffs are not included.

Net Operating Income

Total All Income

(Total All Income on income statement)

Operating Expenses

(Sum of Total Controllable Expenses + Total

Repair/Replacement Expenses)

Net Operating Income (NOI)

(MTD Actual)

Net Operating Income (NOI)

(MTD Budget)

The highest % to budget is ranked #1

Actual to Budget NOI%

*We use actual month Budget to Actual

PROPERTYNOI ACTUAL TO BUDGET

(%)POINTS

Hanachek House

19.1% 1

Holland Meadows

15.1% 2

#1

Economic Occupancy

MTD Total Rental Income(Actual Rent))

MTD Total Potential Rent(Actual Rent))

$_________ Sum

MTD Budgeted TotalRental Income

(Actual Rent))

MTD Budgeted TotalPotential Rent

(Actual Rent))$_________ Sum

The highest economic occupancy %

is ranked #1

Economic Occupancy %*We use current monthly actual.

PROPERTYECONOMIC

OCCUPANCY (%)

POINTS

Coppess Court 95% 1

Logan Landing 92% 2

#1

Sequential Cash Collections

Net Rental Income Net Other Income Reimbursed Utilities

Total Cash CollectedThrough Operating

Activities

— The Major Categories to Focus on Cash Collection —

Rents / Other Income / NWP Utility Collection

— Cash Books/Income Statement for Account Period —

*We compare prior month to actual month.

#1

Total Rank

Clyde Court Adams Place

Customer Service 4 6

Employee Retention 3 4

NOI 13 9

Economic Occupancy 7 13

Sequential Cash 8 11

35 43

PROPERTY TOTAL POINTS OVERALL RANKING

Clyde Court 35 1

Adams Place 43 2

#1 #2

Lowest points equals#1 on the ranking#1

Performance Matrix

Execution