NET YIELD:

RISK STRATEGY:

INTRINSIC VALUE:

EXTRINSIC VALUE:

VALUATION:

EXIT STRATEGY:

TOTAL RETURN:

CASH OUTLAY:

INVESTMENT RISK:

(THE BOTTOM LINE)

€8,247,408.73 ON PORTFOLIO STRIKE @ €200,000,000 (NET YIELD 4.12% PER ANNUM)

PORTFOLIO HAS 57 INVESTMENT TARGETS WITH TOTAL COVERED EXTENT OF ‭98,497.30‬ SQM

PORTFOLIO CONTAINS €165,891,062.96 (92.50%) OF AS-BUILT FULLY INSURABLE VALUE

SPECULATIVE VALUE IS €48,452,217.74‬, OF WHICH €13,449,022.08 SHALL BE ON-BOARDED

PORTFOLIO VALUE IS ‭€224,175,106.30‬ (PRE-DISCOUNT), & ‭€‭179,340,085.04‬ (STRIKE)

OFF-LOADING STRIKE IS €221,887,009.86‬ PRODUCING €42,546,924.82‬ (23%) NAV GROWTH.

BETWEEN €50,794,333.55 (1.0 YEARS, +25%)‬ & €79,660,264.10 (4.5 YEARS, +39%)‬

TCO:-€27,585,584.01‬ OF WHICH FEES (-€‬26,725,253.18) & NAV LOAD (-€860,330.83)

AVERAGE RISK PREMIUM IS APPROXIMATELY 700BP OR 300BP ABOVE THE BASE RATE. TOTAL NET PROFIT PRODUCED IS BETWEEN €23,208,749.54 (11.60%) & €52,074,680.09 (5.70%)

#1. NET YIELD

PREMISE 1.1: INVESTOR ("IN POCKET") NET YIELD SET AT 4.50% ± 0.45%

1.1.1: THE PORTFOLIO IS REVERSE ENGINEERED FROM THIS NET YIELD RULE
1.1.2: RISK VS. REWARD PROPOSITION MAKES SENSE FOR WEALTH PRESERVATION
1.1.3: INVESTMENT TARGETS ARE ASSESSED BASED ON THIS NET YIELD RULE

#2. RISK STRATEGY

PREMISE 2.1: AVERAGE INVESTMENT PARTICIPATION BETWEEN 1.50% AND 2.00%

2.1.1: STICKING TO AN AVERAGE PARTICIPATION RATE BENEFITS RISK MITIGATION
2.1.2: AVERAGE PARTICIPATION CAN BE APPLIED TO VALUE, EXTENT AND YIELD
2.1.3: A PORTFOLIO APPROACH CREATES BALANCE AND DELIVERS RELIABILITY

#3. INTRINSIC VALUE

PREMISE 4.1: INTRINSIC VALUE IS CALCULATED VIA EXPERT OPINION AND RULE OF THUMB

3.1.1: INTRINSIC VALUE IS ESSENTIALLY COST TO REBUILD (INSURABLE VALUE)
3.1.2: INTRINSIC VALUE IGNORES SPECULATIVE ELEMENTS OF MARKET VALUATION
3.1.3: INTRINSIC VALUE IS INSURABLE, EXTRINSIC VALUE IS NOT

#4. EXTRINSIC VALUE

PREMISE 4.1: EXTRINSIC VALUE IS CONDITIONAL AND CALCULATED VIA RULE OF THUMB

4.1.1: SPECULATIVE ELEMENT OF VALUATION TREATED SEPARATELY.
4.1.2: LOCATION, CONDITION AND FACILITIES INCORPORATED UPON CONDITION
4.1.3: RULE OF THUMB KEEPS ASSESSMENT WITHIN PRE-DEFINED LIMITS

#5. VALUATION

PREMISE 5.1: ASSESSED VALUE IS ALWAYS DISCOUNTED BY AT LEAST 80% BEFORE STRIKE

5.1.1: INSURANCE POLICY AGAINST TENANT DEFAULT
5.1.2: MAKES RENT COLLECTIONS RELIABLE AND RELEVANT
5.1.3: TENANT TURNOVER / VACANCIES EASILY REMEDIED.

#6. EXIT STRATEGY

PREMISE 6.1: A PRE-AGREED STRIKE PRICE SHALL EXIST TO BUYBACK THE ASSET

6.1.1: METHOD TO CALCULATE OFF-LOADING STRIKE PRICE IS PRE-AGREED
6.1.2: METHOD BOOSTS ON-BOARDING STRIKE PRICE BY 19.50 TO 26.50%
6.1.3: NET YIELD IS ADJUSTED BY PUTTING BACK ANNUAL FEES TO TAXABLE INCOME

#7. TOTAL RETURN

PREMISE 7.1: INVESTMENT RETURN HAS TWO SOURCES OF PREDICTABLE ORIGIN

7.1.1: VARIABLE RENT COLLECTION PROCESS (NQA)
7.1.2: RENT COLLECTION PERIOD (0-4.5, 4.5-5.0 AND 5.0+)
7.1.3: BUYBACK BUMP IN NET ASSET VALUE (NAV)

#8. CASH OUTLAY

PREMISE 8.1: CASH OUTLAYS THAT LESSEN INVESTMENT RETURN ARE PRE-AGREED AND FIXED

8.1.1: SUCCESS FEES OF ON-BOARDING PROCESS
8.1.2: SUCCESS FEES OF ANNUAL INVESTMENT MANAGEMENT & OVERSIGHT (NAV)
8.1.3: SUCCESS FEES OF OFF-LOADING PROCESS

#9. INVESTMENT RISK

PREMISE 9.1: RISK PREMIUMS ARE ASSESSED ON A 22-POINT SCALE ALONG 3 RISK THEMES

9.1.1: AS-BUILT RISK
9.1.2: STRIKE PRICE RISK
9.1.3: LEASEBACK RISK