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PREFACE ______________________________________________________________________________________________________________________ Excelsa is pleased to present its house view on the current state of the U.S. multifamily sector, highlighting the key dynamics and themes we believe will shape investor outcomes in 2026. Following a challenging three-year cycle, our analysis reflects a more defined perspective on the principal risks facing the sector, alongside emerging opportunities supported by underlying market fundamentals. We hope this perspective proves informative and constructive, and we welcome further dialogue on the insights presented herein. Founded in 2013, Excelsa has developed a strong track record and deep sector expertise in U.S. multifamily real estate. A DIFFICULT THREE YEARS – AND WHY IT IS NOW LARGELY BEHIND US ______________________________________________________________________________________________________________________ Since 2022, the multifamily sector has absorbed the consequences of record construction activity undertaken during the low-rate era following the post-COVID recovery, high inflation increasing operating expenses and capital expense budgets, and one of the quickest and largest increases in interest rates in recent U.S. history. Fueled by cheap capital and strong migration demand, developers pushed supply to a 40-year high, with annual net deliveries peaking above 690,000 units (compared to a fourteen-year historical average of approximately 302,325 units per year) in late 2024.¹ The volume of new apartments hitting the market was without precedent in the modern era, flooding most of the performing markets including the Sun Belt markets and forcing operators into a prolonged defensive posture on pricing and occupancy. For value-add Class B assets the impact was acute. Under normal conditions, a meaningful rent gap insulates Class B properties from the competitive pressure of newly delivered Class A inventory. This cycle proved different. Developers, desperate to lease up new units, offered concessions of three to four months' free rent on twelve-month leases – a level of discounting that compressed effective rents across the entire market and reached into the Class B tier. Combined with sharp increases in insurance, labor, and utilities costs, this environment tested the resilience of even well-managed assets. Property insurance premiums in many Southeast markets doubled or more between 2022 and 2024, driven by climate-related risk repricing and carrier withdrawals. 2,3 Payroll costs rose sharply as a tight labor market pushed maintenance and management wages higher. Simultaneously, the Federal Reserve’s most aggressive tightening cycle in four decades drove the federal funds rate from near zero to over 5% between early 2022 and mid-2023 4 , with the average commercial real estate loan rate reaching approximately 6.2% by 2025 5 – compared to roughly 3.5% on much of the debt originated just years earlier. 6 This rate shock effectively froze the transaction market for nearly three years, as buyers and sellers could not agree on valuations, and owners with maturing debt faced refinancing costs that eroded equity. The combination of compressed revenues, elevated operating costs, and a hostile capital market environment created the most challenging operating conditions the multifamily sector has experienced since the early 1990s. That period is now drawing to a close. Annual supply had already fallen to approximately 530,000 units in 2025, and is expected to decline a further 36% in 2026 to approximately 333,000 units – the lowest level since 2014.¹ Construction starts have hit their lowest point in over a decade, pressured by declining rents, higher capital costs, and tighter lending standards. The chart below illustrates the scale of the supply wave and its expected decline.

NAPLES, FL, June 13 2025, Excelsa Properties announced today that it has acquired Oasis Naples, a 216-unit multifamily property located at 2277 Arbour Walk Circle in the heart of Naples, Florida. The acquisition represents the seventh multifamily property acquisition of Excelsa US Real Estate II, LP and the 20th multifamily acquisition across its portfolios. The property was jointly acquired by Excelsa US Real Estate II, LP and an Excelsa co-investment vehicle.

ST PETERSBURG, FL, July 17, 2024, Excelsa Properties announced today that it has acquired The Drake at St Pete, a 477-unit multifamily property located at 1699 68th Street North, St Petersburg, Florida. The acquisition represents the sixth multifamily property acquisition of Excelsa US Real Estate II, LP and the 19th multifamily acquisition across its portfolios. The property was jointly acquired by Excelsa US Real Estate II, LP and an Excelsa co-investment vehicle.

DALLAS, TX, June 24, 2024, Excelsa Properties announced today that it has acquired Pear Ridge, a 168-unit multifamily property located at 4753 Old Bent Tree Lane, Dallas, Texas. The acquisition represents the fifth multifamily property acquisition of Excelsa US Real Estate II, LP and the 18th multifamily acquisition across its portfolios. The value-add property, Pear Ridge, was jointly acquired by Excelsa US Real Estate II, LP and an Excelsa co-investment vehicle.

LAUREL, MD, July 12, 2023, Excelsa Properties announced today that it has acquired Concord Park at Russett, a 335-unit multifamily property located at 7903 Orion Circle in Laurel, Maryland. The $105.5 million acquisition represents the fourth multifamily property acquisition of Excelsa US Real Estate II, LP. The value-add property, Concord Park at Russett, was jointly acquired by Excelsa US Real Estate II, LP and an Excelsa co-investment vehicle. The company assumed the in-place interest only (I/O) loan with a fixed rate of 3.4% and six years remaining on its term, and supplemented the loan with a fixed rate I/O loan of a similar maturity date, with a weighted average interest rate of 3.7%.

COLUMBIA, MD, November 1, 2022, Excelsa Properties has closed on the $78 million purchase of a 325-unit multifamily property located at 5764 Stevens Forest Road in Downtown Columbia, Maryland. The value-add property, Columbia Pointe, was jointly acquired by Excelsa US Real Estate II, LP and an Excelsa co-investment vehicle.

GAINSEVILE, FL, August 22, 2022, Excelsa Properties has completed the $89.5 MM sale of a five property multifamily portfolio located in Gainesville, Florida. The company acquired the Archer Road Portfolio (“Archer”) for $42.6 MM in August 2018, implementing a comprehensive value add program over the past four years.

Bend at Oak Forest is Excelsa US Real Estate I, LP’s first exit HOUSTON, TX, July 28, 2022, Excelsa Properties announces that it has completed the sale of Bend at Oak Forest (“Bend”), a 392-unit value-add multifamily property located in the Northwest/Oak Forest submarket of Houston, Texas.

April 5, 2022, Excelsa, a U.S.-based asset manager, announced the closing of its second U.S. multifamily fund with $153 million in equity raised. The fundraise, which began in January 2022 and reached its target of $150M by the end of March, targeted family offices and high net worth investors from the Middle East and Gulf States.

GOOSE CREEK, SC, February 16, 2022, Excelsa Properties announced today that it has acquired Coventry Green Apartments, a multifamily property located in the Goose Creek suburb of Charleston, SC, in an off-market transaction. The $52.7 million acquisition represents the tenth multifamily property acquisition of Excelsa US Real Estate I, LP (EUSRE I) and the second multifamily property acquisition of Excelsa US Real Estate II, LP.

FORT MILL, SC, December 16, 2021, Excelsa Properties announced today that it has acquired Fox Hunt Farms Apartments, a multifamily property located at 355 Armistead Avenue in Fort Mill, South Carolina from York Investment Properties in an off-market transaction. This $61.54 million acquisition represents the ninth multifamily property acquisition of Excelsa US Real Estate I, LP for which the firm raised $85.6 million to acquire approximately $300 million worth of U.S. multifamily properties.

CAMP SPRINGS, MD, March 12, 2021, Excelsa Properties announced today that it has acquired in a joint venture Tribeca at Camp Springs (“Tribeca”), a multifamily property located at 4701 Old Soper Rd, Camp Springs, Maryland. This $64 M acquisition represents the seventh multifamily property acquisition of Excelsa US Real Estate I, LP for which the firm raised $85.6 million to acquire approximately $300MM worth of U.S. multifamily properties.