TOTAL CLOSED 27, Financing Type Non-FHA FHA 4% Tax Credits 20l% 9% 9% Tax Credits 20% 2% Mortgage Only 6% 6% No Debt 83% 17%

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2 History Over 35 years in business Specialists in multi-family, mixed-use, affordable and market-rate development Recognized experts in complex, multiphase, mixed-finance, urban and suburban development 180+ Developments/14,000+ units We Are Developers with a depth of experience, a reputation for quality, a commitment to diversity and a broad vision that allows us to consistently produce great spaces.

3 RAD UPDATE

4 RAD Rental Housing Demonstration 1.7B Total Construction Costs Less than 25K in Rehab 48% More than 25K in Rehab 35% New Construction 17% RAD FIRST COMPONENT 2015 RAD Closings (53% of deals closed in the 4 th Qtr.) UNITS PROJECTS Transactions 13, TOTAL CLOSED 27, Financing Type Non-FHA FHA 4% Tax Credits 20l% 9% 9% Tax Credits 20% 2% Mortgage Only 6% 6% No Debt 83% 17% RAD Stats (as published in the January 2016; Issue 15 RAD Newsletter)

5 W Y M A N H O U S E B a l t i m o r e, M D u n i t s

6 RAD Housing Authority Baltimore City (HABC) PROCUREMENT PROCESS 18 mixed population (Seniors/NEDS) public housing projects Issued Two Step Procurement: June 2013 RFQ Ranked Development Companies Sept 2013 RFP Determined Building(s) Awarded to: 11 Development Firms

7 Pennrose - Ranking of HABC 18 Buildings 1. Location of Building (Neighborhood Characteristics) 2. Proximity to existing Pennrose Developments 3. % of Seniors vs. NEDS 4. # of Units 5. Financial Analysis 6. Physical Condition of Building Pennrose only chose to rank 5 out of the 18 buildings. We were awarded Wyman House, our 2 nd ranked building. Ultimately, this was a decision of knowing that the building would be a part of our portfolio. NOTE: Only 3 other developers chose to only rank their top 5 choices. Other developers were awarded two projects.

8 Developer Collaboration Maryland Affordable Housing Coalition (MAHC) developed a subcommittee by which the developers and their legal counsels worked together to deal with the issues below: Wyman House and 1 st Component Deals Deal terms with HABC RAD Control Requirement Investor & Lender Requirements RAD Waivers (11 requested) Resident Advocate Input Resident Communications Consent Decrees/DOJ - MDLC Operational Complexities Waitlist Administration - Antennae Leases/Insurance/Costs/Income - Subsidy Payments/Deposits/ - Tenant Files/Over-Income Residents - BED BUGS Closing (Wyman House) Dec 2015

9 Project Overview: Wyman House Apartments Baltimore, MD Partnership with the Housing Authority of Baltimore City In-Place Rehab of 168 Mixed Population Affordable Units (seniors and non-elderly) Adding seven new units on 2 nd Floor 168 PBRAs through RAD program/7 LIHTC (175 units) Renovation of kitchens, bathrooms, common areas, management offices, etc. Total Project Cost: $31.2M Schedule: Closed December 2015 Construction Completion February 2017

10 Wyman House Sources and Uses 168 existing/175 total SOURCES OF FUNDS Debt Service Financing Source of Funds Lender Amount Taxable Bonds $ 14,600,000 Tax-exempt Bonds AGM/Wells $ 7,339,000 Total Debt Service Financing $ 7,339,000 Cash Flow Financing and Grants Source of Funds Lender Amount Rental Housing FunMaryland DHCD $ 961,773 CIF Maryland DHCD $ 541,963 Other (TAKE BAC HABC $ 12,300,000 Total Cash Flow Financing $ 13,803,736 Equity Type of Equity Amount Low Income Tax Credit Proceeds $ 9,985,860 Interim Income (occupied rehabilitation $ 157,855 Total Equity $ 10,143,715 Total Sources of Funds (must equal Tot $ 31,286,451 USES OF FUNDS Type of Uses Amount Per Unit $ Construction or Rehabilitation Costs $ 11,731,957 67,040 Fees Related to Construction or Rehabili $ 1,349,350 7,711 Financing Fees and Charges $ 2,071,710 11,838 Acquisition Costs $ 12,421,496 70,980 Total Development Costs $ 27,574, ,569 Developer's Fee $ 2,500,000 14,286 Syndication Related Costs $ 180,306 1,030 Guarantees and Reserves $ 1,031,631 5,895 Total Uses of Funds $ 31,286,451 $ 178,780

11 Wyman House Apartments Existing Conditions - Lobby

12 Existing Conditions Community Room

13 Wyman House Apartments Existing Conditions

14 Wyman House Apartments Existing Conditions - Library

15 T H A N K Y O U

16 MISSION P e n n r o s e, i n c o o p e r a t i o n w i t h i t s p a r t n e r s a n d k e y s t a k e h o l d e r s, s t r i v e s t o d e v e l o p high-quality, expertly managed p r o p e r t i e s -- w h i c h p r o v i d e long-lasting enhancements t o residents, t h e i r communities, a n d h o s t municipalities.

17 CORE PRINCIPLES We are committed to high-quality developments: Solidly financed; attractively designed; and constructed for energy efficiency and durability We stay for the long-term: Our business model is based on sustained ownership and our properties are designed to stand the test of time We understand that quality management is the key to our ongoing success: Attentive maintenance, appropriate services, and a focus on our residents set Pennrose developments apart