Contract analysis

I. Executive Summary The purpose of this memorandum is to provide a comprehensive analysis of the extension option available under the existing $240,000,000 senior secured bridge credit facility dated June 30, 2025 (the "Bridge Credit Agreement"), between Fairwater Operating Partnership, L.P. (the "Borrower") and Kensington National Bank, N.A. (as administrative agent and lead lender), as a contingency measure in the

1. Monitor NOI Growth Trajectory Monthly. Request monthly NOI reports from Fairwater Residential Management LLC and Naomi T. Sinclair (Fairwater's Chief Financial Officer) to track portfolio NOI performance against the $26,870,400 threshold needed to satisfy the 1.20x DSCR at current outstanding principal and interest rate levels.

2. Model Scenarios for Partial Voluntary Prepayment. Develop detailed financial models analyzing the impact of a partial voluntary prepayment of approximately $6.2 million on the DSCR, LTV, and minimum liquidity covenant, and confirm that the Bridge Credit Agreement permits such prepayment without premium or penalty.

3. Begin Early Coordination with Kensington National Bank, N.A. If, by mid-October 2025, the Permanent Loan closing appears likely to be delayed past the bridge maturity date, we recommend proactive outreach to Thomas J. Pagano, Managing Director, Real Estate Finance, at Kensington National Bank, to signal the potential exercise of the extension option and preserve relationship goodwill. The sections that follow prov

II. Background A. The Bridge Credit Facility On June 30, 2025, Fairwater Operating Partnership, L.P. (the "Borrower"), a Delaware limited partnership, entered into the Bridge Credit Agreement with Kensington National Bank, N.A. ("KNB"), as administrative agent and lead lender, and a syndicate of lenders, providing for a $240,000,000 senior secured bridge credit facility (the "Bridge Facility"). The full recourse guar

III. Extension Option — Detailed Analysis of Conditions A. Overview of Extension Mechanics The Bridge Credit Agreement provides for one (1) extension of the maturity date by six (6) months, from December 31, 2025 to June 30, 2026. This extension is not automatic and is at the election of the Borrower, subject to satisfaction of specified conditions. To exercise the extension, the Borrower must deliver a written notic

IV. Additional Considerations A. Interaction with Bridge Exit Fee The Bridge Credit Agreement provides for an exit fee of 0.50% of the outstanding principal balance, payable upon repayment of the Bridge Facility. At the full $240,000,000 outstanding balance, this fee equals $1,200,000. Importantly, however, the exit fee is subject to a waiver provision: the exit fee is waived if the Bridge Facility is repaid in full

V. Recommendations A. Primary Strategy — Expedite Permanent Loan Closing The primary strategy remains — and should remain — to close the Permanent Loan with Clarendon Metropolitan Insurance Company on or before November 28, 2025, well in advance of the December 31, 2025 bridge maturity date. The extension option is and should be treated as a contingency measure, not a preferred outcome. To maximize the likelihood of

1. NOI Monitoring. Request that Fairwater Residential Management LLC and Naomi T. Sinclair (CFO) provide monthly portfolio NOI reports, including property-level detail, beginning with the July 2025 reporting period. These reports should be tracked against the $26,870,400 threshold needed to achieve a 1.20x DSCR at the current outstanding principal and interest rate levels. If the NOI trajectory suggests that the port

2. Bridge Credit Agreement NOI Definition Review. Lisa Morrow and Marcus Leung will conduct a detailed review of the Bridge Credit Agreement's definitions of "Net Operating Income," "Debt Service Coverage Ratio," and related terms to confirm the precise calculation methodology applicable to the extension DSCR condition. Key questions to be resolved include: (a) Is NOI calculated on a trailing-twelve-month basis, an a

3. Partial Prepayment Modeling. Marcus Leung will prepare a detailed financial model analyzing the impact of a partial voluntary prepayment on the DSCR, LTV, minimum liquidity covenant, and overall extension condition compliance. The model should present multiple scenarios reflecting different NOI levels, SOFR rates, and prepayment amounts. In addition, we will confirm the following under the Bridge Credit Agreement:

4. SOFR Monitoring. The team will monitor 30-day Term SOFR on a monthly basis (or more frequently as the extension decision date approaches) and model the DSCR sensitivity at various SOFR levels. If the Federal Reserve's monetary policy trajectory suggests meaningful rate cuts before December 2025, this could partially or fully resolve the DSCR shortfall.

5. Extension Notice Deadline. We will calendar December 1, 2025 as the deadline to deliver the written extension notice to Kensington National Bank, N.A. We recommend that a "decision date" of no later than November 15, 2025 be established internally, to allow sufficient time for the preparation, review, and delivery of the extension notice package, including the required officer's certificate and any supporting docu

6. Early Lender Communication. If, by mid-October 2025, the Permanent Loan closing appears likely to be delayed past November 28, 2025, we recommend proactive outreach to Thomas J. Pagano at Kensington National Bank. The communication should signal that Fairwater is aware of the potential delay, is actively managing the Permanent Loan closing process, and is prepared to exercise the extension option if necessary. Thi

7. Budget for Extension Costs. We recommend that Naomi T. Sinclair and the Fairwater finance team budget for the following contingent costs associated with a potential extension: • Extension fee: $600,000 (25 bps × $240,000,000) • Potential exit fee (if Permanent Loan closes after March 31, 2026): $1,200,000 (0.50% × $240,000,000) • Monthly interest carry differential vs. Permanent Loan: approximately $388,154 per mo

VI. Next Steps Based on the analysis and recommendations set forth in this memorandum, the following action items are assigned: We will schedule a follow-up discussion to review the results of the NOI definition analysis and the partial prepayment sensitivity model during the week of September 8, 2025.

VII. Appendices Appendix A — DSCR Sensitivity Table The following table presents the portfolio DSCR at various combinations of annual NOI levels and 30-day Term SOFR rates, assuming the full $240,000,000 outstanding principal balance and interest-only debt service at SOFR + 500 bps. Cells that satisfy the 1.20x extension threshold are marked in bold. Cells that fall below the 1.10x ongoing covenant are marked with an