#1LEM MULTIFAMILY FUND VI, L.P. PRESENTATION TO: DECEMBER 2021 pennsylvania STATE EMPLOYEES' RETIREMENT SYSTEM L.E.M CAPITAL#22 Disclaimer & Confidentiality This information was prepared per request of the Pennsylvania State Employees Retirement System, a potential institutional investor who is both an "qualified client" (within the meaning of the Investment Advisers Act of 1940) and "qualified purchaser" (within the meaning of Section 2(a)(51) of the U.S. Investment Company Act and the rules thereunder) and has been prepared solely at their request to provide updated information regarding the potential launch of a value-add multifamily real estate fund, (the "Fund") sponsored by LEM Capital, L.P. ("LEM", the "Management Company" or the "Firm"). This presentation is for discussion purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any security. Any such offer or solicitation shall be made only pursuant to a Fund's confidential private placement memorandum (as amended or supplemented from time to time, the "Memorandum"), which describes risks related to an investment in the Fund as well as other important information about the Fund and will be subject to the terms and conditions contained therein. Offers and sales of interests in this Fund will not be registered under the laws of any jurisdiction and will be made solely to qualified investors under all applicable laws. The information set forth herein does not purport to be complete and is subject to change. These materials are qualified in their entirety by all of the information that will be set forth in the Memorandum once it has been finalized, including all cautionary statements set forth in the front of the Memorandum and the risk factors and conflicts of interests described within this Memorandum. Investments in private funds are speculative and involve special risks. The Memorandum, the partnership agreement and subscription agreement of this Fund must be read carefully in their entirety prior to investing in the Fund. This presentation does not constitute a part of the proposed Memorandum. Certain statements may constitute "forward-looking" statements, which generally are not historical in nature. Generally, the use of words such as "expect," "may," "will," "plan," "estimate," "projected," "future," "targeted" and other similar terminology identify forward-looking statements. Unless otherwise noted, forward-looking statements reflect the current views, plans, estimates and expectations of the Management Company as the date as of June 30, 2021, among other things, the estimated capital contributions into investments, future events and financial performance, strategies and expectations, including but not limited to LEM's ability to generate positive returns, preserve capital and identify investment opportunities. There can be no assurance that the results set forth in the projections will be attained and actual results may be significantly different from the projections. Also, general economic factors, which are not predictable, can have a material impact on the reliability of projections. The anticipated offering of the interests in any private fund will involve various risks and potential conflicts of interest, which will be fully disclosed prior to any commitment. The projected internal rates of return ("IRRS") and return on investment multiples ("ROI") shown are based upon underwriting analysis and assumptions shown and are provided for the time period or the date shown, the most recent investment valuation or otherwise and are subject to change. Past performance is not necessarily indicative of future results. There can be no assurance that the Fund will achieve comparable results, that targeted returns, diversification or asset allocations will be met or that the Fund will be able to implement its investment strategy and investment approach or achieve its investment objective. Actual returns on unrealized investments (including projected internal rates of return) will depend on, among other factors, future operating results, the value of the assets and market conditions at the time of disposition, legal and contractual restrictions on transfer that may limit liquidity, any related transaction costs and the timing and manner of sale, all of which may differ from the assumptions and circumstances on which the valuations used in the prior performance data contained herein are based. Accordingly, actual returns may differ materially from the projected returns indicated herein. Please refer to the definitions at the end of this presentation for a description of how LEM generally calculates internal rates of return (IRRS) and other performance metrics which may be different then the instructions or time period provided by this potential institutional investor. Certain economic and market information contained herein has been obtained from published sources prepared by third parties and in certain cases has not been updated through to the date hereof. Neither LEM, the Fund, its general partner nor their respective affiliates nor any of their respective employees or agents assume any responsibility for the accuracy or completeness of such information. Such persons have not made any representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of any of the information contained herein (including information obtained from third parties), and they expressly disclaim any responsibility or liability, therefore. Such persons do not have any responsibility to update or correct any of the information provided in this summary. In considering the Fund's proposed target IRR, prospective investors should bear in mind that such targeted performance is not a guarantee and is not necessarily indicative of future results. There can be no assurance that this proposed Fund will be able to implement its investment strategy or achieve its investment objective. Actual returns and individual limited partners participating directly or indirectly in a LEM Fund may vary significantly from the targeted returns set forth herein and targeted returns on individual investments may be outside the ranges set forth herein. Projected returns are inherently subject to significant geopolitical, economic, market and other uncertainties and risks that may adversely affect performance and are not guarantees of future performance. The target returns set forth herein are based on the Firm's belief about the returns that may be achievable on investments that the proposed Fund intends to pursue in light of the Firm's experience with similar transactions, the Firm's knowledge of and experience with similar investments and certain assumptions about investing conditions and market fluctuation or recovery. Targeted returns were also based on models, estimates and assumptions about performance believed to be reasonable under the circumstances. There is no guarantee that the facts on which such assumptions are based will materialize as anticipated and will be applicable to any real estate investments. Any target return is hypothetical and is not a guarantee of future performance. The LEM Capital, L.P. logo and the product and services described herein are either trademarks or service marks of LEM Capital, L.P. and may not be copied, imitated or used, in whole or in part, without written permission, which has been granted for the Pennsylvania State Employees Retirement System live stream of this presentation to its Board of Directors. All other trademarks, product names and company names and logos mentioned herein are the property of their respective owners. L.E.M CAPITAL#3MULTIFAMILY EXPERTS EXPERIENCED. DISCIPLINED. DILIGENT. L.E.M CAPITAL#44 Organization L.E.M CAPITAL#5$3.5+ Billion Multifamily Acquisitions¹ Focus on Downside Protection and Current Cashflow Experienced Team With dedicated acquisitions, asset management, portfolio management, investor relations, accounting and institutional reporting experience Value-Add Fund III, IV & V Ranked #2, #3 & #1 by Cambridge Associates² 103 Multifamily Properties Acquired 24,000+ Units³ SALE 71 Multifamily Value- Add Properties Sold Gross Investment-Level IRR 24.7%5 Gross Investment-Level Multiple 2.2x5 LEM Snapshot LEM's top tier value-add performance² is fueled by our seasoned operating partner network, LEM's robust participation and oversight, and our disciplined fund size Positive Returns in Two Funds Active During The Great Recession 4 Strong Alignment of Interests With our investors, operating partners and employees helps drive overall performance Invested across 27 MSA's 20+ Best-in-Class Operating Partners Culture of Respect for our Investors' Capital 19 Years Experience Investing in Multifamily 5 All information is as of the date of this presentation unless otherwise indicated. 1 Acquisitions reflect total cost basis of all multifamily acquisitions as of September 10, 2021. 2 The Cambridge Associates benchmark pooled return is for 2012, 2015 & 2018 vintage value-add real-estate funds. Real Estate Benchmark statistics are provided by Cambridge Associates at no cost and are "as is" as of March 31, 2021. Fund I (2002 vintage) and Fund II (2006 vintage), which were structured debt funds, are not compared to the Cambridge Associates index as they do not benchmark for debt funds. 3 As of September 10, 2021. 4 Please reference LEM Track Record at the end of this presentation for LEM Fund I and LEM Fund II returns. 5 For 59 realized investment sales (69 properties) from October 2014 through September 7, 2021. Figures based on actual disposition values. These are gross property-level profits and do not include any fund level fees or expenses. Please refer to the performance disclosures on slide 2 and the Footnotes and Definitions. Investors should bear in mind that the past or target performance is not necessarily indicative of future results. L.E.M CAPITAL#66 Top Tier Performance vs. Cambridge and Preqin Value-Add Benchmarks CAMBRIDGE ASSOCIATES VALUE-ADD BENCHMARKS LEM FUND III Ranked #2 of 33 Constituent Funds² LEM III1 24.1% LEM FUND IV Ranked #3 LEM FUND V Ranked #1 of 32 Constituent Funds² of 23 Constituent Funds² These are early results and are Top 5% 22.1% LEM V1 38.2% expected to normalize in our targeted 12-15% range Top 5% 24.1% LEM IV1 20.3% Top 5% 20.7% 2X Median Top Quartile 17.5% 2X Top Quartile 12.6% Median Top Quartile 13.1% Median 12.0% Median 9.7% Median VALUE-ADD FUNDS RANKED TOP QUARTILE BY PREQIN³ 8.6% 1 Values shown are Net to Limited Partners since inception as of June 30,2021 for LEM Fund III, LEM Fund IV, and LEM V. 2 The Cambridge Associates benchmark pooled return is for 2012, 2015, and 2018 vintage value-add real-estate funds for Funds III and IV, respectively. Real Estate Benchmark statistics are provided by Cambridge Associates at no cost and are "as is" as of March 31, 2021. Fund I and Fund II, which were structured debt funds, are not compared to the Cambridge Associates index as they do not benchmark for debt funds. 3 The Preqin Quarterly Benchmark is 2012, 2015, and 2018 vintage value-add real estate funds. Real estate statistics are provided by Preqin at no cost and are "as is" as of March 31, 2021 (FIII, FIV and FV). Preqin does not have specific benchmarks for debt funds so both Fund I and Fund II are included in the "Real Estate - North America" category, which includes a range of fund strategies and may not be as representative of relative performance. Please refer to the performance disclosures on slide 2 and the Footnotes and Definitions. Investors should bear in mind that the past performance shown for these investments is not necessarily indicative of future results and there can be no assurance that the Fund will achieve comparable results. LE M CAPITAL#7LEM's Unique Value Proposition LEM TEAM Institutional Investment Process Operational Experience Robust Asset Management and National Reach OPERATING PARTNER NETWORK Drives Deal Flow & Execution Local Ownership and Management Integrated with LEM Team FUND SIZE Allows LEM to Maintain a Disciplined Investment Selection Process While Building a Diversified Portfolio LEM VALUE CREATION L.E.M 7 Please refer to the performance disclosures on slide 2 and the Footnotes and Definitions. CAPITAL#8Philadelphia Presence & Support in Pennsylvania Live, Work and Learn in Philadelphia 19 LEM Team Members work in LEM's Philadelphia Headquarters 15 LEM Team Members live in Philadelphia 10 LEM Team Members attended college/grad school in PA TV SM & B Long Term Relationship with PA SERS PA SERS was instrumental in strategy shift in Fund III (2012) Consultant NEPC rated LEM Fund VI a 1 out of 5 rating and denoted a "Best Ideas" Fund on its Focused Placement List Supporting Philadelphia Non-profit: Philly Youth Basketball A youth development and community empowerment organization COVID Learning Pods ✓ Volunteerism Internship: 2022 Drexel University Co-Op • PHILADELPHIA YOUTH BASKETBALL Six-month full-time rotational internship ✓ Exposure to investor relations, acquisitions and asset and property management ✓ Two students per year L.E.M As of December 2021. Please refer to the performance disclosures on slide 2 and the Footnotes and Definitions. Investors should bear in mind that the past or targeted performance shown for these investments CAPITAL is not necessarily indicative of future results. 8#9ESG Initiatives Where We Are Now 2020 • Developed and launched Environmental, Social and Governance policy and committee Firm headquarters in a Gold LEED certified building • 10-year strategy focuses on at-risk housing stock that caters to middle income working American Business plans include a variety of environmentally-conscious initiatives, including low-flow toilets, LED lighting, hardscaping or synthetic ground cover • Utilize paperless resident application process and on-line bill pay for rent collection 2021 • • Rolled out Responsible Contractor Policy to all Operating Partners Began interviewing ESG consultants to help formalize environmental measurement Our Path Forward 2022- 2023 • . • Select ESG technology platform to help enhance our ESG program Develop specific ESG due diligence assessment for each acquisition Further integrate environmental consideration into our investment process through: • Measuring waste, water and/or energy Establishing reduction goals Benchmarking Evaluate GRESB Assessment participation goby The ESG Platform 9 All information as September 7, 2021 energy retech ADVISORS GRES B REAL ESTATE LORD GREEN STRATEGIES ENVIRONMENTAL SOCIAL GOVERNANCE LE M CAPITAL#1010 DE&I Initiatives Where We Are Now 2020 • • Established Diversity, Equity & Inclusion committee Hosted Philadelphia Youth Basketball learning pods Sponsor and participant in Industry Groups targeting women in private markets - Kayo Conferences and PEAK 2021 • Joined Project Elevation: Real Estate Diversity Council Initiated philanthropic program and partnerships Established baselines for diversity in recruiting process Introduced Diversity, Equity & Inclusion policy • Partnered with Path Forward to establish internal DE&I training program • Applicant for ILPA Diversity in Action Initiative Signatory Partner with HBCU Connect to seek diverse candidates for open job postings and internship program Our Path Forward 2022- 2023 • Foster diversity and inclusion in our recruiting and retention practices • Partner with BRIDGE Program at Drexel Spring Co-Op Program for Drexel Students • Continue annual DE&I training program Seek partnerships with MWBE vendors and others committed to DE&I through their own internal policies Survey Operating Partners to assess current stage of adoption of Diversity, Equity & Inclusion initiatives Seek new MWBE Operating Partners • Identify additional local partnerships for community events and volunteer opportunities . Join additional industry initiatives that support expanding Diversity, Equity & Inclusion across Private Equity Path Forward Consulting IRTECH All information as September 7, 2021 Diversity in Action kayo CONFERENCE SERIES ilpa HBCUCONNECT.COM PEAK Advancing Women in PE, VC & Alternatives PHILADELPHIA YOUTH BASKETBALL عي Drexel UNIVERSITY LE M CAPITAL#1111 Multifamily Macro Opportunity L.E.M CAPITAL#12Multifamily: Strong Imbalance Between Supply and Demand Persistent undersupply of total housing: Single and Multifamily UNDERSUPPLY OF 中中 4.4 MM HOUSING UNITS FROM 2011-20201 VERY LIMITED CLASS B CONSTRUCTION² × ☐ XX WORKFORCE OCCUPANCY AT 96%+3 DELAYS IN LIFE STUDENT DEBT EVENTS COSTS AND BENEFITS OF HOME OWNERSHIP SLOWER WAGE GROWTH FLEXIBLE LIFESTYLE CHOICES UNDER- EMPLOYMENT LONGER-TERM AND MORE PERMANENT RENTER BASE4,5 12 1 New Privately Owned Housing Completions, 1991-2020, US Census Bureau. 2 U.S. Census Bureau New Housing Completions Annual Historical through 2017 excel including REIS Completions Q3 2017.3 CBRE National Multifamily Figures Report 2021. 4 "Here's Why Renting is Eclipsing Home Ownership", October 3, 2018, RentCafe. 5 "Some 43% of College Grads Are Underemployed in First Job", October 30, 2018, Wall Street Journal. Please refer to the performance disclosures on slide 2 and the Footnotes and Definitions. Investors should bear in mind that the past performance shown for these investments is not necessarily indicative of future results and there can be no assurance that the Fund will achieve comparable results. LE M CAPITAL#1313 LEM Value-Add Strategy & Performance L.E.M CAPITAL#1414 BEFORE LEM's Value-Add Investment Strategy Manufacture yield by acquiring well-located, suburban Class B multifamily properties that are under-managed and capital-starved and then increase rents and NOI by modernizing the properties and upgrading management to provide middle-income tenants a like-new product at an affordable price point. The Montana Fund V Phoenix, AZ UHD TV EXIT T Please refer to the performance disclosures on slide 2 and the Footnotes and Definitions. L.E.M CAPITAL#1515 Before KEE MENU Kuchen 00 Skyview 3322 Fund IV Kent (Seattle), WA L・E・M CAPITAL#1616 After -MEVE DISH Skyview 3322 Fund IV Kent (Seattle), WA CREAM FIRST COFFEE CAR L.E.M CAPITAL#1717 Before Arbors at Carrollwood Fund V Tampa, FL LE M CAPITAL#1818 After Arbors at Carrollwood Fund V Tampa, FL NO DIVING LE M CAPITAL#1919 Before Asheville at Spring Branch E Fund V Houston, TX L.E.M CAPITAL#20After 20 20 Asheville at Spring Branch Fund V Houston, TX C L.E.M CAPITAL#21Investing in Diversified Growth Markets with Local Operating Partners LEM invests in specific Growth Markets that we believe offer strong downside protection These markets are experiencing outsized growth in population, employment, education, and net migration while offering an affordable lifestyle and work-life balance +6.8mm (+19%) Employment Growth (2012-2019)1 +7.1mm (+9%) Population Growth (2012-2019)2 +5.1mm Net Migration (2012-2019)³ ° Seattle Sacramento Los Angeles Phoenix Denver Minneapolis Chicago Atlanta Chattanooga Nashville Dallas Austin San Antonio Houston Boston Greensboro Raleigh Charlotte Philadelphia Richmond Tampa Orlando South Florida 21 The above markets represent LEM Target markets. Size of market arrows not indicative of market share or targeted equity exposure. Employment Growth, Population Growth and Net Migration shown as the absolute growth from January 2012 through December 2019 for all LEM Target Markets shown on this map. Percentage growth is the percentage change of the absolute growth over the same time frame for the same subset of markets. 1 Employment, 2012-2019, Bureau of Labor statistics. 2 Population: 2012-2019, Annual Estimates of the Resident Population for Metropolitan Statistical Areas in the United States and Puerto Rico: April 1, 2010 to July 1, 2019 (CBSA-MET-EST2019-ANNRES), U.S. Census Bureau, Population Division. 3 Net Migration: 2012-2019, U.S. Census Bureau, Population Division. Please refer to the performance disclosures on slide 2 and the Footnotes and Definitions. Investors should bear in mind that the past or target performance is not necessarily indicative of future results. L.E.M CAPITAL#22LEM Investment Criteria ✓ 1st and 2nd tier markets ✓ Suburban location Built between late 1980s and early 2000s 200 to 400 units in size Markets with proven institutional appeal ✓ "B" or better location within the market Easy highway access Infill locations with high barriers to entry Diverse employment drivers ✓ Good school systems Quality tenant base ✓ Well-built with a full amenity package Value-add upside ✓ Unencumbered with long term debt ✓ Deal metrics meet requirements Strong current cash flow Solid operating partner Intangible, "Special" characteristics CAUTION SLIPPERY WHEN WET 22 22 Please refer to the performance disclosures on slide 2 and the Footnotes and Definitions LEM CAPITAL#23COVID Outcomes and Key Takeaways Proactive Communication: Ongoing communication strategy with Operating Partners sharing strategies around resident communication and best practices during uncertain times Collections & Payment Plans: Proactive communication and compassionate approach to help residents impacted by unemployment secure financial assistance, implement payment plans and remain in their homes OPERATIONAL RESULTS: MARCH 2020 THROUGH MARCH 2021 Consistent occupancy levels and higher retention rates¹ Rent collections slightly behind historical trend 3/20-3/212 Helped financially impacted residents access govt assistance or provided flexible payment plans Minor concessions for new leases and reversion to normal Fall 2020 Dip in leasing traffic reverting to normal in June 2020 OPERATIONAL PERFORMANCE THROUGH 2020 REMAINED STEADY WITH MINIMAL IMPACT ON THE PORTFOLIO 23 23 1 Occupancy figures for the Fund IV and Fund V portfolios as of the first Monday of each month for January 2020 through March 2021. 2 Represents the total actual collections (less bad debt and any outstanding rent payments over 90 days+ past due) over total billings for March 2020 through March 2021. Please refer to the performance disclosures on slide 2 and the Footnotes and Definitions. Investors should bear in mind that the past performance shown for these investments is not necessarily indicative of future results and there can be no assurance that the Fund will achieve comparable results. L.E.M CAPITAL#2424 Approach to Deal Level Value Creation DEAL SOURCING & UNDERWRITING + PHYSICAL ENHANCEMENTS + OPERATIONAL IMPROVEMENTS + CAPITAL MARKETS EXECUTION Capitalize on our seasoned operating partner network and robust LEM origination team effort to source a high percentage of off-market and lightly marketed deals Employ disciplined underwriting standards and focus on affordable Class B properties in infill suburban locations acquired at an attractive basis below replacement cost Develop a business plan that includes modernizing amenities, common areas and units to provide a high quality community with affordable rents Continually evaluate renovation plans with the goal of optimizing return on cost Seek to improve property operations by upgrading management with local operating partners and sharing best practices across the portfolio, while leveraging real-time data through centralized portfolio management Focus on key operational drivers: rent, other income, occupancy, controllable expenses and implement energy savings initiatives to reduce utility expenses and environmental impact Drive best debt execution through LEM lender relationships Monitor debt markets and asset performance to take advantage of attractive refinance opportunities Conduct regular portfolio reviews to optimize property sales based on our direct market experience, deep relationships with local brokers and strong knowledge base of the buyer pool LE M CAPITAL There can be no assurance that historical trends will continue. Please refer to the performance disclosures on slide 2 and the Footnotes and Definitions.#25Robust Processes & Integration Through Asset Lifecycle ACQUISITION DUE DILIGENCE THOUGHTFUL, RESEARCH-DRIVEN decision-making process that is rooted in our experience and incorporates a strong emphasis on disciplined underwriting and thorough due diligence. LEM TEAM AND OPERATING PARTNERS EMBEDDED IN TARGET MARKETS with active feedback and insight from market participants, industry professionals and local experts EARLY INVOLVEMENT in the transaction to drive the business plan and help Operating Partners win deals ASSET MANAGEMENT INTENSIVE OVERSIGHT throughout the hold, working with operating partners to drive operations and execute the business plans Acquisition Take-Over ........ CONSTANTLY REFINING ASSET MANAGEMENT Execution ........... SOFTWARE CAPABILITIES allow Asset Management to use real- time data to monitor operations Disposition + Optimization + • RealPage Bl: gather and review property data, including leasing statistics, occupancy trends, and renewal data • Pereview: analyze overall trends in the portfolio, helping us to identify important patterns in financial performance Please refer to the performance disclosures on slide 2 and the Footnotes and Definitions. Investor should bear in mind that the past performance shown above for these investment is not necessarily indicative of future results and there can be no assurance that future investments will achieve comparable results. L.E.M CAPITAL 25#2626 LEM Fund VI Terms L.E.M CAPITAL#27Fund VI - Summary of Key Terms¹ Investment Objective: Investment Profile: Target Fund Size: General Partner Commitment: Target Returns: Leverage: Preferred Return: Management Fee: Performance Fees: Fund Structure: Investment Limitations: Generate current income and appreciation by investing in quality Class B multifamily properties in strong infill locations in select markets in the U.S. where we can add value by renovating and upgrading the property and adding hands on management by partnering with local real estate operating companies² Value Add Multifamily (100%) in the United States $350 million of Limited Partner Capital (Cap of $450 million, though not including the GP commitment) The GP has already committed $20 million to the Fund, exceeding the GP requirement to invest 2% of the limited partner capital up to $9 million based on a $450 million target fundraise 12% to 15% net IRR to investors; 1.5x to 1.7x net equity multiple; Quarterly cash distributions averaging 5-7% per annum³ Not to exceed 70% loan-to-total cost in aggregate across the portfolio; no Fund-level debt other than subscription line 8% per annum, compounded annually4 1.50% for commitments up to $25 million; 1.40% for commitments of $25 million up to $50 million; 1.25% for commitments of $50 million up to $75 million; 1.125% for commitments of $75 million up to $100 million; 1% for $100 million or greater; calculated on commitments during investment period and remaining invested capital thereafter 50% to the GP after payment of all preferred return and return of all capital until the GP has received 20% of cumulative profits; 20% to the GP thereafter. LP's with commitments of $100 million or more benefit from a modified waterfall schedule per the offering memorandum Closed-end, commingled vehicle structured as Delaware limited partnership with option for one or more parallel funds; Fund may hold investments indirectly through one or more REITS 100% of investments in multifamily properties Maximum single investment: 10% (subject to certain exceptions) At least 75% of investments in states along the east and west coasts, the northeast corridor and the greater metropolitan areas of Dallas, Houston, Austin, San Antonio, Nashville, Chicago, Minneapolis, Phoenix and Denver Investment Structures: Commitment Period: Fund Term: Joint ventures with operating partners utilizing various equity structures 3 years from final closing 1 one-year extension with approval of the advisory board or a majority in interest of the limited partners 8 years from final closing 2 one-year extensions with approval of the advisory board or a majority in interest of the limited partners 27 1 Please reference the Fund's Private Placement Memorandum ("PPM") for a full description of the Fund's terms and conditions. 2 There can be no assurance that the Fund will be able to implement its investment strategy or achieve its investment objective. 3 Actual returns for the Fund and individual limited partners participating directly or indirectly in the Fund may vary significantly from the targeted returns. 4 Actual preferred returns may vary significantly from the targeted preferred return. L.E.M CAPITAL#2828 Appendix LEM Case Studies L.E.M CAPITAL#2929 29 Market Overview: Tampa rpon ings Lake Tarpon nisbrook, A alamander Golf and... East Lake rbor H Mease Countryside Hospital untryside Mall (580) 102 Moccasin Lake Nature Park Safety Harbor (590) ne Depot 19 Oldsmar (686) Highpoint St. Pete- Clearwater International Airport Property Name (LEM Fund) A Parq at Cross Creek (V) B Arbors at Carrollwood (V) C Gateway on 4th (III) D Isles of Gateway (II) E Lakes of Northdale (III) Keystone CUALITION Lower 597 Lutz Pebble Creek A Cheval 589 Hillsborough Wilderness Preserve Hillsboroug River State P Lutz Lake Fern TrailHead Lake Fern 582 589 582 Greate Northda E Sam's Club Slow Speed B (Spring to Citrus Park Regulations). Fall, Variable 41 Lake Magdalene University 597 582A CITRUS PARK COMMUNITY 587 Greater Carrollwood Westchase Costco Wholesale (589) Town 'N' Country Ben T Davis Beach Old Tampa Bay D Gandy 275 TAMPA PALMS NEW TAMPA Lettuce Lake Park (93A Thonotosassa (582) University of South Florida (583) Busch Gardens Tampa Bay Temple Terrace BUS 41 Egypt Lake-Leto LOWRY PARK CENTRAL PINECREST WEST PARK (580) 92 TEMPLE CREST Del Rio 41 92 576 (585 41 Raymond James Stadium 574 TAMPA HEIGHTS 3 EAST TAMPA BUS NORTHWEST TAMPA 41 WESTSHORE 92 YBOR CITY 574 60 Wooden leland Tampa Bay BEACH PARK SOUTH TAMPA 92 FAIR OAKS MANHATTAN MANOR SUN BAY SOUTH MacDill Air Force Base Tampa 60 HYDE PARK DAVIS ISLANDS McKay Bay East Lake-Orient Park D 92 301 Dinosi Dove (301) (574) Seffner EM.L.K. Jr Blvd Mango LIMONA IMPROVEMENT Selmon Expressway (60) 41 Palm River-Clair Mel 301 S Valrico Dov Brandon 60 60 Costco Wholesale Ballast Point Park East Bay Raceway Park Hillsborough Bay 41 Progress Village Riverview East Tampa Gibsonton CONCERNED BOYETTE Bloomingdale Lithia Springs Park FIS Represents all LEM owned properties (Fund II, Fund III, Fund IV and Fund V) as of June 30, 2021. Please refer to the performance disclosures on slide 2 and the Footnotes and Definitions. Investors should bear in mind that the past performance shown for these investments is not necessarily indicative of future results and there can be no assurance that the Fund will achieve comparable results. L.E.M CAPITAL#30CASE STUDY . FUND V (ACTIVE) Parq at Cross Creek Tampa, FL 297 Units Built 2008/2014 pon ings East Lake nisbrook, A ilamander Golf and rbor Keystone Fern TrailHead Lake Fern Lutz Cheval Slow Speed (Spring to Fall Variable Citrus Park Regulations) Greate Northd Sam's Club NEW TAMPA Lower Pebble Creek A Hillsborough Wilderness Preserve Lettuce Lake Park Thonotosassa Lake Magdalene University ELTHUS FARK COMMUNITY (939) Greater Carrollwood Westchase Mease Countryside Hospital Costco Wholesale Oldsmar untryside Mall (MD) University of South Florida Busch Gardens Tampa Bay (M Temple Terrace (3 Moccasin Lake Nature Dark Safety Harbor Property Name (LEM Fund) A Parq at Cross Creek (V) B Arbors at Carrollwood (V) C Gateway on 4th (III) D Isles of Gateway (II) E Lakes of Northdale (III) Egypt Town N Country WEST PARK G Raymond James Stadium T Davis Beach Del Rio Hillsboroug River State P Dinos e O B 回 Dove O East TAMPA HEIGHTS EAST TAMPA Lake-Orient Park EMEK Seffner Mango E Tampa IMPROVEMENT Semn Exete B 同 DAY LANDS D Palm River-Clair Mel Valrico Dov Brandon (60 Costco Wholesale Sourcing Marketed deal that was awarded to the Partnership largely due to LEM's relationship with the seller on a prior transaction. Location The submarket has grown rapidly and transformed over the last two decades due in part to strong recent population growth, which is projected to outpace the broader MSA. Proximate to several major office nodes and benefits from easy access to I-75. Value-Add Substantially upgrade interior finishes to create best in class units. Extensive clubhouse renovation that will dramatically expand the existing facility, enlarging both the fitness center and club room. Amenity upgrades include creating a resort-style pool, upgrading the dog park, children's playground area and adding several grilling stations throughout the Property. Curb appeal will be enhanced by painting the exteriors, enhancing the overall sense if arrival with new signage and improving landscaping throughout the property. Financing LEM leveraged market intelligence from other active pipeline deals to successfully reduce the loan spread by ~20bps during the final loan negotiation with Freddie Mac. INVESTMENT LEVEL SUMMARY1 Operating Partner Acquisition Date Operating Partner Equity LEM Equity Purchase Price Robbins Property Associates November 2020 $3.5mm $20.0mm $55.5mm ($187k/unit) Construction Budget $6.0mm ($20k/unit) Total Cost Basis Underwritten IRR/Multiple $63.6mm ($214k/unit) 15.5%/17.7x 1 As of the original underwriting acquisition. IRR and Multiple values are based on the underwritten projections of a 4-year hold. Please refer to the performance disclosures on slide 2 and the Footnotes and Definitions in the Investor Presentation. 30 L.E.M CAPITAL#31Before Parq at Cross Creek Tampa, FL Fund V 31 L.E.M CAPITAL#32After 32 32 Parq at Cross Creek Tampa, FL Fund V 0 10 FACP L.E.M CAPITAL#33Before Parq at Cross Creek Tampa, FL Fund V 33 L.E.M CAPITAL#34In Progress Parq at Cross Creek Tampa, FL Fund V 34 6 RAM LE M CAPITAL#35Before Parq at Cross Creek Tampa, FL Fund V 35 P LE M CAPITAL#36After Parq at Cross Creek Tampa, FL Fund V 36 ee L.E.M CAPITAL#37FLOORPLANS - 2x2 - 1,234 SF 37 L.E.M CAPITAL#38Before Parq at Cross Creek Tampa, FL Fund V 38 LE M CAPITAL#39After Parq at Cross Creek Tampa, FL Fund V 39 L.E.M CAPITAL#4040 Footnotes and Definitions L.E.M CAPITAL#4141 Footnotes and Definitions The returns, projected returns and operating metrics shown in the presentation were determined based on the following: Annualized Quarterly Distributions - Cash distributions to investors during a quarter divided by the weighted average unreturned capital during the quarter, expressed as an annual rate. Annualized Trailing 3-Month Net Cash return on Total Equity - The sum of property-level net cash flows for the prior three months divided by the weighted average equity invested (including Fund equity and operating partner equity), expressed as an annual rate. This metric excludes management fees, fund-level expenses, and carried interest. Actual returns to limited partners were lower. Acquisition to Sale Revenue Growth The difference between (a) the monthly average of trailing 3-month revenue as of the most recent reporting period prior to sale and (b) the monthly average of trailing 3-month revenue as of the origination date for each investment, expressed as a percentage change. Acquisition to Sale NOI Growth - The difference between (a) annualized trailing 3-month income as of the most recent reporting period prior to sale minus actual trailing expenses based on the prior 12 months or a shorter period annualized if less than 12 months have passed since the origination of the investment and (b) net operating income as of the origination date of an investment calculated using trailing 3-month net operating income annualized and trailing 12-month expenses adjusted for anticipated changes in real estate taxes and insurance expenses, expressed as a percentage change. Average Hold Period - The difference between (a) the acquisition date and (b) the reporting date for an individual asset. Average portfolio hold period takes (a) individual asset hold periods multiplied by (b) the respective initial equity investment at acquisition and divided by (c) the total equity investment for all assets included in the reported portfolio. Cambridge Associates Benchmark - Real Estate Benchmark statistics are provided by Cambridge Associates at no cost and are "as is" as of March 31, 2021. Internal rates of return are net of fees, expenses and carried interest. Cambridge Associates' research shows that most funds take at least six years to settle into their final ranking, and previous to this settling they typically rank in 2-3 other quartiles; therefore fund or benchmark performance metrics from more recent vintage years may be less meaningful. Debt Service Coverage Ration (DSCR) - Trailing NOI on a T3/T12 basis divided by debt service as defined by payments of principal (if applicable) and interest that would have been payable under a hypothetical loan assuming (i) a loan balance equal to the aggregate loan balance of the portfolio, (ii) and an interest rate equal to 4.35% Distributions (Quarterly) - Cash distributions to investors during a quarter divided by the weighted average unreturned capital outstanding during the quarter, expressed as an annual rate. Distributions (Annual) - Cash distributions to investors during the reported period. Equity Value Increase - The difference between (a) total Fund equity capital invested in transaction and (b) the current GAAP investment value plus any return of capital proceeds, expressed as a percentage change. Investment Valuation Increase - The percentage increase from the initial cost basis of the Fund's investment to the sum of (a) the current value of the Fund's investment as of the reporting date and (b) returned capital. Loan to Cost (LTC) - The total outstanding senior loan balance for an investment, divided by the total cost basis of that investment. Aggregated at the Fund level, the LTC is the average of the individual investments' LTC, weighted by each investment's LEM Fund equity. NOI Increase - The difference between (a) annualized trailing 3-month income minus actual trailing expenses based on the prior 12 months or a shorter period annualized if less than 12 months have passed since the origination of the investment and (b) net operating income as of the origination date of an investment calculated using trailing 3-month net operating income annualized and trailing 12-month expenses adjusted for anticipated changes in real estate taxes and insurance expenses, expressed as a percentage change. Operating Yield - The sum of operating cashflows from the Fund's investments divided by the weighted average investment cost of the Fund's investments, expressed as an annual rate. Preferred Return - 8% per annum, compounded annually. Projected Average Cash-on-Cash Yield - The average of monthly cash-on-cash distribution for the projected hold period, calculated by averaging the percentages obtained by dividing the applicable month's distribution to the Fund by the outstanding equity investment for the preceding month for all periods of a projected hold period. Projected Investment-Level IRR and Projected Aggregate Investment-Level IRR - The projected internal rate of return on invested capital, without deduction for management fees, fund-level expenses or carried interest, calculated using monthly cash flows based on actual contributions and distributions from the initial funding of the given investment (or aggregate investments) through the reporting date and projected contributions thereafter until the investment (or aggregate investments) are fully realized. The projected contributions and distributions are based on the general partner's estimate of future net cash flow generated from the Fund's investments as of the reporting date. Projected Net IRR to Limited Partners - The projected internal rate of return on invested capital since inception, net of management fees, fund-level expenses, and net carried interest, based on actual contributions and distributions since inception of the applicable fund through the reporting date and projected contributions and distributions until the applicable fund is fully liquidated. For Funds I and II, Projected Net IRR to Limited Partners ignores management fee rebates paid to limited partners. For Fund III, Projected Net IRR to Limited Partners incorporates management fee rebates paid to limited partners. GP and employee contributions and distributions are included in the calculation of Projected Net IRR for Funds I and II but are disregarded for the Fund III calculation. The projected limited partners' contributions and distributions are based on the applicable general partner's estimate of future net cash flow generated from the applicable fund's investments. L.E.M CAPITAL#4242 Footnotes and Definitions. Projected Net Multiple to Limited Partners - The ratio of the total aggregate distributions, net of deduction for management fees, fund-level expenses and net carried interest, based on actual contributions and distributions since inception of the applicable fund through the reporting date and projected contributions and distributions until the applicable fund is fully liquidated. For Funds I and II, Projected Net Multiple to Limited Partners ignores management fee rebates paid to limited partners. For Fund III, Projected Net Multiple incorporates management fee rebates paid to limited partners. GP and employee contributions and distributions are included in the calculation of Projected Net Multiple for Funds I and II but are disregarded for the Fund III calculation. The projected limited partners' contributions and distributions are based on the applicable general partner's estimate of future net cash flow generated from the applicable fund's investments. Projected Investment-Level Equity Multiple and Projected Aggregate Investment-Level Equity Multiple - The sum of projected distributions to the applicable fund divided by projected total contributions to the investment (or investments, as applicable). Property Level Cash Flow to the Fund - Cash distributions to the respective fund from the operations of all fund properties as of the reporting date. Property Value Increase - The difference between (a) the initial purchase price or aggregate purchase prices and (b) the current property valuation or aggregate current property valuation, expressed as a percentage change. Realized Investment-Level IRR- The internal rate of return on a Fund investment without deduction of management fees, carried interest, or fund-level expenses, calculated based on the sum of actual investment-level contributions and investment-level distributions since inception including proceeds actually realized upon a sale or liquidation of the investment. Realized Investment-Level Equity Multiple - The sum of actual distributions to the Fund received from a Fund investment divided by the total actual contributions to the investment. Realized Net IRR to Limited Partners - The realized internal rate of return on invested capital since inception, net of management fees, fund-level expenses, and net carried interest, based on actual contributions and distributions since inception of the applicable fund through the fund liquidation. For Funds I and II, Projected Net IRR to Limited Partners ignores management fee rebates paid to limited partners. For Fund III, Realized Net IRR to Limited Partners incorporates management fee rebates paid to limited partners. GP and employee contributions and distributions are included in the calculation of Realized Net IRR for Funds I and II but are disregarded for the Fund III calculation. Realized Net Multiple to Limited Partners - The ratio of the total aggregate distributions, net of deduction for management fees, fund-level expenses and net carried interest, based on actual contributions and distributions since inception of the applicable fund through the fund liquidation. For Funds I and II, Realized Net Multiple to Limited Partners ignores management fee rebates paid to limited partners. For Fund III, Realized Net Multiple incorporates management fee rebates paid to limited partners. GP and employee contributions and distributions are included in the calculation of Realized Net Multiple for Funds I and II but are disregarded for the Fund III calculation. Revenue Increase - The difference between (a) the monthly average of trailing 3-month revenue as of the reporting date and (b) the monthly average of trailing 3-month revenue as of the origination date for each investment, expressed as a percentage change. Realized Net Profit to the Fund - The difference between (a) total contributions and (b) total distributions over the course of the hold period of the investment based on realized profits to the Fund.. Since Inception Net IRR to Limited Partners - The internal rate of return on invested capital since inception, net of management fees, fund-level expenses, and carried interest, based on actual contributions and distributions since inception of the Fund and net asset value as of June 30, 2020. Since Inception Net IRR to Limited Partners incorporates management fee rebates paid to limited partners; therefore, the stated Since Inception Net IRR to Limited Partners in the letter differs from the actual Since Inception Net IRR to Limited Partners that each limited partner receives due to the use of a blended management fee rate. Target Net IRR to Limited Partners - The current targeted internal rate of return on a limited partner's capital, net of management fees, fund-level expenses and carried interest, calculated using quarterly cash flows based on actual limited partner contributions and distributions since the Fund's inception through the reporting date, and targeted limited partners' contributions and distributions thereafter until the Fund is fully liquidated. The targeted limited partners' contributions and distributions are based on the applicable general partner's estimate of future net cash flow generated from the applicable fund's investments. Total Cost Basis - The sum of the original equity investment plus original property-level leverage. Underwritten Net Profit to the Fund - The difference between (a) total contributions and (b) total distributions over the course of the hold period of the investment based on LEM's internal underwriting as of acquisition. The extent of the impact of any public health emergency, including COVID-19, on equity investments and on a portfolio company's operational and financial performance will depend on many factors, including the duration and scope of such public health emergency, the extent of any related travel advisories and restrictions implemented, the impact of such public health emergency on overall supply and demand, goods and services, investor liquidity, consumer confidence and levels of economic activity and the extent of its disruption to important global, regional and local supply chains and economic markets, all of which are highly uncertain and cannot be predicted. The effects of a public health emergency, including COVID-19, may materially and adversely impact the value and performance of an LEM Fund, LEM's ability to manage and divest investments and its ability to achieve its investment objectives, all of which could result in significant losses. In addition, LEM, its Fund investments and underlying properties may be significantly impacted, or even temporarily or permanently halted, as a result of government quarantine measures, voluntary and precautionary restrictions on travel or meetings and other factors related to a public health emergency, including its potential adverse impact on the health of any such entity's personnel. L.E.M CAPITAL