Page 18 - Solana101_OfferingMemorandum_GSP

FINANCIAL ANALYSIS

COMBINED PROFORMA

YEAR ENDING 8/31/2022 8/31/2023 8/31/2024 8/31/2025 8/31/2026
OPERATING YEAR UNTRENDED YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
NET OPERATING INCOME $4,579,639 ($434,882) $3,749,939 $5,254,591 $5,412,983 $5,576,293

APARTMENT PROFORMA

YEAR ENDING 8/31/2022 8/31/2023 8/31/2024 8/31/2025 8/31/2026
OPERATING YEAR UNTRENDED YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Gross Rental Income 1,605,600 174,060 1,742,962 1,825,993 1,881,532 1,938,761
Concessions -- (43,479) (29,167) -- -- --
Other Income 45,000 4,500 44,250 45,000 45,000 45,000
Late Fees/Other Fees 15,000 1,500 14,750 15,000 15,000 15,000
RUBS 45,000 2,432 46,755 50,187 51,200 52,233
POTENTIAL GROSS INCOME $1,710,600 $139,013 $1,819,550 $1,936,180 $1,992,732 $2,050,994
Vacancy (59,871) (4,865) (63,684) (67,766) (69,746) (71,785)
Bad Debt (8,553) (695) (9,098) (9,681) (9,964) (10,255)
EFFECTIVE GROSS INCOME $1,642,176 $133,453 $1,746,768 $1,858,733 $1,913,023 $1,968,955
TOTAL OPERATING EXPENSES (454,877) (117,137) ($494,008) ($509,123) ($520,070) ($531,260)
NET OPERATING INCOME $1,187,299 $16,316 $1,252,761 $1,349,610 $1,392,953 $1,437,695
Replacement Reserves
NCF - PROPERTY $1,187,299 $16,316 $1,252,761 $1,349,610 $1,392,953 $1,437,695

18 | SOLANA 101