The following is a discussion and analysis of our financial condition and our historical results of operations. The following should be read in conjunction with our financial statements and accompanying notes included herein and with our 2025 Annual Report, filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2026. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those projected, forecasted, or expected in these forward-looking statements as a result of various factors, including, but not limited to, those discussed below and elsewhere in this quarterly report. See “Cautionary Statement Regarding Forward-Looking Statements” in this report, and “Risk Factors” in Part I, Item 1A, “Risk Factors” of our 2025 Annual Report. Our management believes the assumptions underlying the Company’s financial statements and accompanying notes are reasonable. However, the Company’s financial statements and accompanying notes may not be an indication of our financial condition and results of operations in the future. Overview As of June 30, 2026, our Portfolio consisted of 36 multifamily properties primarily located in the Southeastern and Southwestern United States encompassing 13,305 units of apartment space that was approximately 93.5% leased with a weighted average monthly effective rent per occupied apartment unit of $1,490. Substantially all of our business is conducted through the OP. We own the Portfolio through the OP and our TRS. The OP owns approximately 99.9% of the Portfolio; our TRS owns approximately 0.1% of the Portfolio. The OP GP is the sole general partner of the OP. As of June 30, 2026, there were 26,053,988 OP Units outstanding, of which 25,951,154, or 99.6%, were owned by us, and 102,834, or 0.4%, were owned by unaffiliated limited partners (see Note 8 to our consolidated financial statements). We are primarily focused on directly or indirectly acquiring, owning, and operating well-located multifamily properties with a value-add component in large cities and suburban submarkets of large cities, primarily in the Southeastern and Southwestern United States. We generate revenue primarily by leasing our multifamily properties. We intend to employ targeted management and a value-add program at a majority of our properties in an attempt to improve rental rates and the net operating income (“NOI”) at our properties and achieve long-term capital appreciation for our stockholders. We are externally managed by the Adviser through the Advisory Agreement, by and among the OP, the Adviser and us. The Advisory Agreement was renewed on February 23, 2026 for a one-year term. The Adviser is wholly owned by NexPoint Advisors, L.P. We have elected to be taxed as a REIT under Sections 856 through 860 of the Code, and expect to continue to qualify as a REIT. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement that we distribute at least 90% of our REIT taxable income to our stockholders. As a REIT, we will be subject to U.S. federal income tax on our undistributed REIT taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions we pay with respect to any calendar year are less than the sum of (1) 85% of our ordinary income, (2) 95% of our capital gain net income and (3) 100% of our undistributed income from prior years. We believe we qualify for taxation as a REIT under the Code, and we intend to continue to operate in such a manner, but no assurance can be given that we will operate in a manner so as to qualify as a REIT. Taxable income from certain non-REIT activities is managed through a TRS and is subject to applicable federal, state, and local income and margin taxes. We had no significant taxes associated with our TRS for the six months ended June 30, 2026 and 2025. The macroeconomic environment remains challenging. The high interest rate environment, and ongoing economic uncertainty, has limited credit availability to commercial real estate. Less available and more expensive debt capital has had pronounced effects on the capital markets, making property acquisitions and other investments harder to finance. Similar factors also impact the timing of and proceeds generated from asset sales and our ability to obtain debt capital. On October 16, 2019, Highland, a former affiliate of our Sponsor, filed for Chapter 11 bankruptcy protection with the United States Bankruptcy Court for the District of Delaware (the “Highland Bankruptcy”), which was subsequently transferred to the United States Bankruptcy Court for the Northern District of Texas (the “Bankruptcy Court”). On October 15, 2021, Marc S. Kirschner, as litigation trustee of a litigation subtrust formed pursuant to Highland’s plan of reorganization and disclosure statement which became effective on August 11, 2021 and was subsequently amended, filed a lawsuit (the “Bankruptcy Trust Lawsuit”) against various persons and entities, including our Sponsor and James Dondero. The Bankruptcy Trust Lawsuit does not include claims related to our business or assets or operations. On March 24, 2023, the litigation trustee filed a motion seeking to voluntarily stay the Bankruptcy Trust Lawsuit, which was granted by the Bankruptcy Court on April 4, 2023. On June 30, 2025, the Bankruptcy Court approved a settlement agreement between Highland and Hunter Mountain Investment Trust (“HMIT”) pursuant to which the claims asserted in the Bankruptcy Trust Lawsuit were assigned to HMIT. HMIT subsequently filed a motion to lift the stay of the Bankruptcy Trust Lawsuit, which was granted and became effective on July 15, 2026. In addition, on February 8, 2023, UBS Securities LLC and its affiliate (collectively, “UBS”) filed a lawsuit in the Supreme Court of the State of New York, County of New York against Mr. Dondero and a number of other persons and entities seeking to collect on $1.3 billion in judgments UBS obtained against entities that were managed indirectly by Highland (the “UBS Lawsuit”). On February 26, 2024, the respondents, including Mr. Dondero, filed motions to dismiss the UBS Lawsuit. A hearing was held on July 8, 2024. The court dismissed the claims against one respondent, CLO HoldCo, Ltd., for lack of personal jurisdiction in a July 12, 2024 order. On August 24, 2024, UBS filed a notice of appeal for that dismissal order, but withdrew its appeal on December 31, 2025. On March 26, 2025, the court entered an order denying the remaining motions to dismiss and directed the respondents to file an answer to the UBS Lawsuit within 20 days, which they did. Mr. Dondero and the other remaining respondents are appealing the 21 denial of the motion to dismiss to the Appellate Division of the Supreme Court of the State of New York. The appeal was argued on April 8, 2026. The Supreme Court rescheduled a status conference in the UBS Lawsuit previously set for July 14, 2026 to September 15, 2026. Neither the Bankruptcy Trust Lawsuit nor the UBS Lawsuit include claims related to our business or our assets. Our Sponsor and Mr. Dondero have informed us they believe the Bankruptcy Trust Lawsuit has no merit, and Mr. Dondero has informed us he believes the UBS Lawsuit has no merit; we have been advised that the defendants named in each of the lawsuits intend to vigorously defend against the claims. We do not expect the Bankruptcy Trust Lawsuit or the UBS Lawsuit will have a material effect on our business, results of operations or financial condition. Our website is located at nxrt.nexpoint.com. From time to time, we may use our website as a distribution channel for material company information. Components of Our Revenues and Expenses Revenues Rental income. Our earnings are primarily attributable to the rental revenue from our multifamily properties. We anticipate that the leases we enter into for our multifamily properties will typically be for one year or less on average. Also included are utility reimbursements, late fees, pet fees, and other rental fees charged to tenants. Other income. Other income includes ancillary income earned from tenants such as non-refundable fees, application fees, laundry fees, cable TV income, and other miscellaneous fees charged to tenants, as well as interest income from the Waterford Loan. Expenses Property operating expenses. Property operating expenses include property maintenance costs, salary and employee benefit costs, utilities, casualty-related expenses and recoveries and other property operating costs. Real estate taxes and insurance. Real estate taxes include the property taxes assessed by local and state authorities depending on the location of each property. Insurance includes the cost of commercial, general liability, and other needed insurance for each property. Property management fees. Property management fees include fees paid to BH, our property manager for managing each property (see Note 8 to our consolidated financial statements). Advisory and administrative fees. Advisory and administrative fees include the fees paid to our Adviser pursuant to the Advisory Agreement (see Note 9 to our consolidated financial statements). Corporate general and administrative expenses. Corporate general and administrative expenses include, but are not limited to, audit fees, legal fees, listing fees, board of director fees, equity-based compensation expense, investor relations costs and payments of reimbursements to our Adviser for Adviser Operating Expenses. Under the Advisory Agreement, reimbursement of Adviser Operating Expenses and the Fees paid to our Adviser (including advisory and administrative fees on properties defined in the Advisory Agreement as New Assets) will not exceed 1.5% of Average Real Estate Assets per calendar year (or part thereof that the Advisory Agreement is in effect), calculated in accordance with the Advisory Agreement, or the Expense Cap. The Expense Cap does not limit the reimbursement by us of expenses related to securities offerings paid by our Adviser. The Expense Cap also does not apply to legal, accounting, financial, due diligence, and other service fees incurred in connection with mergers and acquisitions, extraordinary litigation, or other events outside our ordinary course of business or any out-of-pocket acquisition or due diligence expenses incurred in connection with the acquisition or disposition of real estate assets. Additionally, in the sole discretion of the Adviser, the Adviser may elect to waive certain Fees otherwise due. If Fees are waived in a period, the waived Fees for that period are considered to be waived permanently and the Adviser may not be reimbursed in the future. Property general and administrative expenses. Property general and administrative expenses include the costs of marketing, professional fees, general office supplies, and other administrative related costs of each property. Depreciation and amortization. Depreciation and amortization costs primarily include depreciation of our multifamily properties and amortization of acquired in-place leases. 22 Other Income and Expense Interest expense. Interest expense primarily includes the cost of interest expense on debt, the amortization of deferred financing costs and the related impact of interest rate derivatives used to manage our interest rate risk. Casualty loss. Casualty loss includes expenses resulting from damages from an unexpected and unusual event such as a natural disaster. Expenses can include additional payments on insurance premiums, impairment recognized on a property, and other abnormal expenses arising from the related event. Miscellaneous income. Miscellaneous income includes proceeds received from insurance for business interruption involving the loss of rental income at a property that has temporarily suspended operations due to an unexpected and unusual event. Results of Operations for the Three and Six Months Ended June 30, 2026 and 2025 The three months ended June 30, 2026 as compared to the three months ended June 30, 2025 The following table sets forth a summary of our operating results for the three months ended June 30, 2026 and 2025 (in thousands): For the Three Months Ended June 30, 2026 2025 $ Change Total revenues $ 64,609 $ 63,149 $ 1,460 Total expenses (57,554 ) (55,246 ) (2,308 ) Operating income 7,055 7,903 (848 ) Interest expense (15,829 ) (15,162 ) (667 ) Casualty loss — (5 ) 5 Equity in earnings of affiliate 105 59 46 Miscellaneous income 24 144 (120 ) Net loss (8,645 ) (7,061 ) (1,584 ) Net loss attributable to redeemable noncontrolling interests in the OP (34 ) (28 ) (6 ) Net loss attributable to common stockholders $ (8,611 ) $ (7,033 ) $ (1,578 ) The change in our net loss for the three months ended June 30, 2026 as compared to our net loss for the three months ended June 30, 2025 primarily relates to an increase in total operating expenses and interest expense of $2.1 million and $0.7 million, respectively, offset by an increase in total revenues of $1.5 million. Revenues Rental income. Rental income was $61.8 million for the three months ended June 30, 2026 compared to $61.2 million for the three months ended June 30, 2025, which was an increase of approximately $0.6 million. The increase between the periods was primarily due to our acquisition activity in the fourth quarter of 2025, offset by an increase in rent concessions of $0.4 million. Other income. Other income was $2.8 million for the three months ended June 30, 2026 compared to $1.9 million for the three months ended June 30, 2025, which was an increase of approximately $0.9 million. The increase between the periods was primarily due to an increase in internet income and deposit insurance of $0.5 million and $0.1 million, respectively. Expenses Property operating expenses. Property operating expenses were $14.6 million for the three months ended June 30, 2026 compared to $12.5 million for the three months ended June 30, 2025, which was an increase of approximately $2.1 million. The increase between the periods was primarily due to our acquisition activity in the fourth quarter of 2025 and increases in internet expense and water/sewer expenses of $0.5 million and $0.2 million, respectively. Real estate taxes and insurance. Real estate taxes and insurance costs were $8.2 million for the three months ended June 30, 2026 compared to $8.5 million for the three months ended June 30, 2025, which was a decrease of approximately $0.3 million. The decrease between the periods was primarily due to a decreases of property taxes and property liability insurance of $0.1 million and $0.2 million, respectively. Property management fees. Property management fees were $1.8 million for the three months ended June 30, 2026 compared to $1.8 million for the three months ended June 30, 2025, which was flat. 23 Advisory and administrative fees. Advisory and administrative fees were $1.8 million for the three months ended June 30, 2026 and $1.7 million for the three months ended June 30, 2025, which was an increase of approximately $0.1 million. For the three months ended June 30, 2026 and 2025, our Adviser elected to voluntarily waive advisory and administrative fees of approximately $5.5 million and $5.3 million, respectively, and are considered permanently waived. Our Adviser is not contractually obligated to waive Fees on New Assets in the future and may cease waiving Fees on New Assets at its discretion. Advisory and administrative fees may increase in future periods as we acquire additional properties, which will be classified as New Assets. Corporate general and administrative expenses. Corporate general and administrative expenses were $4.7 million for the three months ended June 30, 2026 compared to $4.5 million for the three months ended June 30, 2025, which was an increase of approximately $0.2 million. The increase was primarily due to an increase in equity-based compensation expense of $0.4 million. Property general and administrative expenses. Property general and administrative expenses were $2.5 million for the three months ended June 30, 2026 compared to $2.1 million for the three months ended June 30, 2025, which was an increase of $0.4 million. The increase between periods was primarily due to an increase in centralized services of $0.1 million and an increase in all other property general and administrative expenses of $0.3 million. Depreciation and amortization. Depreciation and amortization costs were $23.9 million for the three months ended June 30, 2026 compared to $24.1 million for the three months ended June 30, 2025, which was a decrease of approximately $0.2 million, which was primarily due to a decrease of $0.6 million in depreciation, offset by an increase of $0.4 million in amortization. Other Income and Expense Interest expense. Interest expense was $15.8 million for the three months ended June 30, 2026 compared to $15.2 million for the three months ended June 30, 2025, which was an increase of approximately $0.6 million. The increase in interest expense between the periods is primarily attributable to a decreased benefit from interest rate swaps of $1.9 million, offset by a decrease of $1.1 million in interest on debt. The following table details the various costs included in interest expense for the three months ended June 30, 2026 and 2025 (in thousands): For the Three Months Ended June 30, 2026 2025 $ Change Interest on debt $ 19,418 $ 20,539 $ (1,121 ) Amortization of deferred financing costs 1,684 1,628 56 Interest rate swaps (5,244 ) (7,110 ) 1,866 Interest rate caps — (82 ) 82 Interest rate caps mark-to-market (29 ) 187 (216 ) Total $ 15,829 $ 15,162 $ 667 Casualty loss. There was no material casualty loss for the three months ended June 30, 2026 and 2025. Miscellaneous income. Miscellaneous income was $0.0 million compared to $0.1 million for the three months ended June 30, 2026 and 2025, respectively, which was a decrease of $0.1 million. The decrease between periods is attributable to a decrease of business interruption proceeds of $0.1 million. The six months ended June 30, 2026 as compared to the six months ended June 30, 2025 The following table sets forth a summary of our operating results for the six months ended June 30, 2026 and 2025 (in thousands): For the Six Months Ended June 30, 2026 2025 $ Change Total revenues $ 128,153 $ 126,365 $ 1,788 Total expenses (112,579 ) (111,039 ) (1,540 ) Operating income 15,574 15,326 248 Interest expense (31,271 ) (29,543 ) (1,728 ) Casualty loss — (168 ) 168 Equity in earnings of affiliate 173 114 59 Miscellaneous income 98 286 (188 ) Net loss (15,426 ) (13,985 ) (1,441 ) Net loss attributable to redeemable noncontrolling interests in the OP (61 ) (55 ) (6 ) Net loss attributable to common stockholders $ (15,365 ) $ (13,930 ) $ (1,435 ) 24 The change in our net loss for the six months ended June 30, 2026 as compared to the net loss for the six months ended June 30, 2025 primarily relates to an increase in interest expense of $1.7 million. Revenues Rental income. Rental income was $122.9 million for the six months ended June 30, 2026 compared to $122.7 million for the six months ended June 30, 2025, which was an increase of approximately $0.2 million. The increase between the periods was primarily due to our acquisition activity in the fourth quarter of 2025, offset by increases in vacancy loss and rent concessions of $1.4 million and $1.3 million, respectively. Other income. Other income was $5.3 million for the six months ended June 30, 2026 compared to $3.7 million for the six months ended June 30, 2025, which was an increase of approximately $1.6 million. The increase between the periods was primarily due to an increase in internet/tech income and deposit insurance proceeds of $0.9 million and $0.4 million, respectively. Expenses Property operating expenses. Property operating expenses were $26.9 million for the six months ended June 30, 2026 compared to $25.0 million for the six months ended June 30, 2025, which was an increase of approximately $1.9 million. The increase between the periods was primarily due to our acquisition activity in 2025. Real estate taxes and insurance. Real estate taxes and insurance costs were $16.3 million for the six months ended June 30, 2026 compared to $17.5 million for the six months ended June 30, 2025, which was a decrease of approximately $1.2 million. The decrease between periods was primarily due to an increase in property tax refunds and a decrease in liability insurance of $0.5 million and $0.3 million, respectively. Property management fees. Property management fees were $3.6 million for the six months ended June 30, 2026 and $3.6 million for the six months ended June 30, 2025, which was flat. Advisory and administrative fees. Advisory and administrative fees were $3.6 million for the six months ended June 30, 2026 and $3.4 million for the six months ended June 30, 2025 which was an increase of approximately $0.2 million. For the six months ended June 30, 2026 and 2025, our Adviser elected to voluntarily waive advisory and administrative fees of approximately $10.9 million and $10.6 million and are considered permanently waived. Our Adviser is not contractually obligated to waive Fees on New Assets in the future and may cease waiving Fees on New Assets at its discretion. Advisory and administrative fees may increase in future periods as we acquire additional properties, which will be classified as New Assets. Corporate general and administrative expenses. Corporate general and administrative expenses were $9.2 million for the six months ended June 30, 2026 compared to $9.0 million for the six months ended June 30, 2025, which was an increase of approximately $0.2 million. The increase was primarily due to an increase in equity-based compensation expense of $0.3 million. Property general and administrative expenses. Property general and administrative expenses were $4.8 million for the six months ended June 30, 2026 compared to $4.1 million for the six months ended June 30, 2025, which was an increase of approximately $0.7 million. The increase was primarily due to our acquisition activity in 2025. Depreciation and amortization. Depreciation and amortization costs were $48.2 million for the six months ended June 30, 2026 compared to $48.4 million for the six months ended June 30, 2025, which was a decrease of approximately $0.2 million. The decrease between the periods was primarily due to a decrease of $1.2 million in depreciation expense, offset by an increase in amortization expense of $0.9 million. 25 Other Income and Expense Interest expense. Interest expense was $31.3 million for the six months ended June 30, 2026 compared to $29.5 million for the six months ended June 30, 2025, which was an increase of approximately $1.7 million. The increase between the periods was primarily due to a decrease benefit from interest rate swaps of $4.8 million, offset by a decrease in interest on debt and interest rate caps mark-to-market of $2.4 million and $0.9 million, respectively. The following table details the various costs included in interest expense for the six months ended June 30, 2026 and 2025 (in thousands): For the Six Months Ended June 30, 2026 2025 $ Change Interest on debt $ 38,817 $ 41,217 $ (2,400 ) Amortization of deferred financing costs 3,367 3,272 95 Interest rate swaps (10,786 ) (15,554 ) 4,768 Interest rate caps — (170 ) 170 Interest rate caps mark-to-market (127 ) 778 (905 ) Total $ 31,271 $ 29,543 $ 1,728 Casualty loss. Casualty loss was $0.0 million and $0.2 million for the six months ended June 30, 2026 and 2025, respectively. The decrease in casualty loss between periods of $0.2 million is attributable to the Company's casualty events and the timing thereof. Miscellaneous income. Miscellaneous income was $0.1 million compared to $0.3 million for the six months ended June 30, 2026 and 2025, respectively, which was a decrease of $0.2 million. The decrease between periods is attributable to a decrease in business interruption proceeds. Non-GAAP Measurements Net Operating Income and Same Store Net Operating Income NOI is a non-GAAP financial measure of performance. NOI is used by investors and our management to evaluate and compare the performance of our properties to other comparable properties, to determine trends in earnings and to compute the fair value of our properties as NOI is calculated by adjusting net income (loss) to add back (1) interest expense, (2) advisory and administrative fees, (3) depreciation and amortization expenses, (4) corporate income and corporate general and administrative expenses that are not reflective of operations of the properties, (5) casualty-related expenses/(recoveries) and casualty loss, (6) property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on behalf of the Company at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees and (7) equity in earnings of affiliate. These items can create distortions when comparing one period to another or when comparing our operating results to the operating results of other real estate companies that have not made similarly timed purchases or sales. We believe that eliminating these items from net income (loss) is useful for investors and management because the resulting measure captures the actual ongoing revenue generated and actual expenses incurred in operating our properties as well as trends in occupancy rates, rental rates and operating costs. However, the usefulness of NOI is limited because it excludes the items listed above. NOI may fail to capture significant trends in these components of net income, which further limits its usefulness. 26 NOI is a measure of the operating performance of our properties but does not measure our performance as a whole. NOI is therefore not a substitute for net income (loss) as computed in accordance with GAAP. This measure should be analyzed in conjunction with net income (loss) computed in accordance with GAAP and discussions elsewhere in “—Results of Operations” regarding the components of net income (loss) that are eliminated in the calculation of NOI. Other companies may use different methods for calculating NOI or similarly entitled measures and, accordingly, our NOI may not be comparable to similarly entitled measures reported by other companies that do not define the measure exactly as we do. We define “Same Store NOI” as NOI for our properties that are comparable between periods. We view Same Store NOI as an important measure of the operating performance of our properties because it allows us to compare operating results of properties owned for the entirety of the current and comparable periods and therefore eliminates variations caused by acquisitions or dispositions during the periods. NOI and Same Store NOI for the Three and Six Months Ended June 30, 2026 and 2025 The following table, which has not been adjusted for the effects of noncontrolling interests, reconciles our NOI and our Same Store NOI for the three and six months ended June 30, 2026 and 2025 to net income (loss), the most directly comparable GAAP financial measure (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 Net loss $ (8,645 ) $ (7,061 ) $ (15,426 ) $ (13,985 ) Adjustments to reconcile net loss to NOI: Advisory and administrative fees 1,798 1,725 3,569 3,421 Corporate general and administrative expenses 4,711 4,499 9,184 8,956 Corporate income (765 ) (370 ) (1,355 ) (812 ) Casualty-related expenses/(recoveries) (1) 90 (792 ) (1,662 ) (1,448 ) Casualty loss — 5 — 168 Property general and administrative expenses (2) 1,088 868 1,939 1,658 Depreciation and amortization 23,893 24,059 48,184 48,409 Interest expense 15,829 15,162 31,271 29,543 Equity in earnings of affiliate (105 ) (59 ) (173 ) (114 ) NOI $ 37,894 $ 38,036 $ 75,531 $ 75,796 Less Non-Same Store Revenues (1,443 ) — (3,000 ) (4 ) Operating expenses 479 — 1,102 (19 ) Same Store NOI $ 36,930 $ 38,036 $ 73,633 $ 75,773 (1)Adjustment to net loss to exclude certain property operating expenses that are casualty-related expenses/(recoveries). (2)Adjustment to net loss to exclude certain property general and administrative expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees. 27 Net Operating Income for Our Q2 Same Store and Non-Same Store Properties for the Three Months Ended June 30, 2026 and 2025 There are 35 properties encompassing 12,984 units of apartment space in our same store pool for the three months ended June 30, 2026 and 2025 (our “Q2 Same Store” properties). Our Q2 Same Store properties exclude the following property in our Portfolio as of June 30, 2026: Sedona at Lone Mountain. We consider a property to be a same store property if we held the property during the entirety of both periods. The following table reflects the revenues, property operating expenses and NOI for the three months ended June 30, 2026 and 2025 for our Q2 Same Store and Non-Same Store properties (dollars in thousands): For the Three Months Ended June 30, 2026 2025 $ Change % Change Revenues Same Store Rental income $ 60,400 $ 61,230 $ (830 ) -1.4 % Other income 2,001 1,549 452 29.2 % Same Store revenues 62,401 62,779 (378 ) -0.6 % Non-Same Store Rental income 1,402 — 1,402 0.0 % Other income 41 — 41 0.0 % Non-Same Store revenues 1,443 — 1,443 0.0 % Total revenues 63,844 62,779 1,065 1.7 % Operating expenses Same Store Property operating expenses (1) 14,238 13,321 917 6.9 % Real estate taxes and insurance 8,081 8,485 (404 ) -4.8 % Property management fees (2) 1,786 1,806 (20 ) -1.1 % Property general and administrative expenses (3) 1,390 1,275 115 9.0 % Same Store operating expenses 25,495 24,887 608 2.4 % Non-Same Store Property operating expenses 275 — 275 0.0 % Real estate taxes and insurance 122 — 122 0.0 % Property management fees (2) 42 — 42 0.0 % Property general and administrative expenses (4) 40 — 40 0.0 % Non-Same Store operating expenses 479 — 479 0.0 % Total operating expenses 25,974 24,887 1,087 4.4 % Operating income Same Store Miscellaneous income 24 144 (120 ) N/M Non-Same Store Miscellaneous income — — — 0.0 % Total operating income 24 144 (120 ) -83.3 % NOI Same Store 36,930 38,036 (1,106 ) -2.9 % Non-Same Store 964 — 964 0.0 % Total NOI $ 37,894 $ 38,036 $ (142 ) -0.4 % (1)For the three months ended June 30, 2026 and 2025, excludes approximately $77,000 and $(792,000), respectively, of casualty-related expenses/(recoveries). (2)Fees incurred to an affiliate of the noncontrolling limited partners of the OP. (3)For the three months ended June 30, 2026 and 2025, excludes approximately $1,062,000 and $835,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees. 28 (4)For the three months ended June 30, 2026 and 2025, excludes approximately $26,000 and $33,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees. See reconciliation of net loss to NOI above under “NOI and Same Store NOI for the Three and Six Months Ended June 30, 2026 and 2025.” Q2 Same Store Results of Operations for the Three Months Ended June 30, 2026 and 2025 As of June 30, 2026, our Q2 Same Store properties were approximately 93.6% leased with a weighted average monthly effective rent per occupied apartment unit of $1,487. As of June 30, 2025, our Q2 Same Store properties were approximately 93.3% leased with a weighted average monthly effective rent per occupied apartment unit of $1,500. For our Q2 Same Store properties, we recorded the following operating results for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025. Revenues Rental income. Rental income was $60.4 million for the three months ended June 30, 2026 compared to $61.2 million for the three months ended June 30, 2025, which was a decrease of approximately $0.8 million, or 1.4%. The decrease is attributable to a decrease in weighted average monthly effective rent during the three months ended June 30, 2026 compared to the three months ended June 30, 2025. Other income. Other income was $2.0 million for the three months ended June 30, 2026, compared to $1.5 million for the three months ended June 30, 2025, which was an increase of $0.5 million, or 29.2%. The majority of the increase is related to a $0.5 million increase in internet income. Expenses Property operating expenses. Property operating expenses were $14.2 million for the three months ended June 30, 2026 compared to $13.3 million for the three months ended June 30, 2025, which was an increase of $0.9 million, or 6.9%. The majority of the increase is related to internet expense increases of $0.5 million. Real estate taxes and insurance. Real estate taxes and insurance costs were $8.1 million for the three months ended June 30, 2026 compared to $8.5 million for the three months ended June 30, 2025, which is a decrease of $0.4 million, or 4.8%. The decrease between periods was primarily due to a decrease in real property taxes and property liability expense of $0.2 million and $0.2 million, respectively. Property management fees. Property management fees were $1.8 million for the three months ended June 30, 2026 compared to $1.8 million for the three months ended June 30, 2025, which was flat. Property general and administrative expenses. Property general and administrative expenses were $1.4 million for the three months ended June 30, 2026 compared to $1.3 million for the three months ended June 30, 2025, which was an increase of $0.1 million, or 9.0%. The majority of the increase is related to marketing portal expense increases of $0.1 million. 29 Net Operating Income for Our Same Store and Non-Same Store Properties for the Six Months Ended June 30, 2026 and 2025 There are 35 properties encompassing 12,984 units of apartment space in our same store pool for the six months ended June 30, 2026 and 2025 (our “Same Store” properties). Our Q2 Same Store properties exclude the following property in our Portfolio as of June 30, 2026: Sedona at Lone Mountain. We consider a property to be a same store property if we held the property during the entirety of both periods. The following table reflects the revenues, property operating expenses and NOI for the six months ended June 30, 2026 and 2025 for our Same Store and Non-Same Store properties (dollars in thousands): For the Six Months Ended June 30, 2026 2025 $ Change % Change Revenues Same Store Rental income $ 119,943 $ 122,666 $ (2,723 ) -2.2 % Other income 3,855 2,883 972 33.7 % Same Store revenues 123,798 125,549 (1,751 ) -1.4 % Non-Same Store Rental income 2,915 4 2,911 N/M Other income 85 — 85 0.0 % Non-Same Store revenues 3,000 4 2,996 N/M Total revenues 126,798 125,553 1,245 1.0 % Operating expenses Same Store Property operating expenses (1) 28,049 26,443 1,606 6.1 % Real estate taxes and insurance 15,891 17,510 (1,619 ) -9.2 % Property management fees (2) 3,559 3,626 (67 ) -1.8 % Property general and administrative expenses (3) 2,764 2,483 281 11.3 % Same Store operating expenses 50,263 50,062 201 0.4 % Non-Same Store Property operating expenses (4) 559 2 557 N/M Real estate taxes and insurance 391 (23 ) 414 N/M Property management fees (2) 83 — 83 0.0 % Property general and administrative expenses (5) 69 2 67 N/M Non-Same Store operating expenses 1,102 (19 ) 1,121 N/M Total operating expenses 51,365 50,043 1,322 2.6 % Operating income Same Store Miscellaneous income 98 286 (188 ) N/M Non-Same Store Miscellaneous income — — — 0.0 % Total operating income 98 286 (188 ) -65.7 % NOI Same Store 73,633 75,773 (2,140 ) -2.8 % Non-Same Store 1,898 23 1,875 N/M Total NOI $ 75,531 $ 75,796 $ (265 ) -0.3 % (1)For the six months ended June 30, 2026 and 2025, excludes approximately $172,000 and $(1,449,000), respectively, of casualty-related expenses/(recoveries). 30 (2)Fees incurred to an unaffiliated third party that is an affiliate of the noncontrolling limited partner of the OP. (3)For the six months ended June 30, 2026 and 2025, excludes approximately $1,869,000 and $1,626,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional and franchise tax fees. (4)For the six months ended June 30, 2026 and 2025, excludes approximately $2,000 and $1,000, respectively, of casualty-related expenses. (5)For the six months ended June 30, 2026 and 2025, excludes approximately $70,000 and $32,000, respectively, of expenses that are not reflective of the continuing operations of the properties or are incurred on our behalf at the property for expenses such as legal, professional, centralized leasing service and franchise tax fees. See reconciliation of net loss to NOI above under “NOI and Same Store NOI for the Three and Six Months Ended June 30, 2026 and 2025.” Same Store Results of Operations for the Six Months Ended June 30, 2026 and 2025 As of June 30, 2026, our Same Store properties were approximately 93.6% leased with a weighted average monthly effective rent per occupied apartment unit of $1,487. As of June 30, 2025, our Same Store properties were approximately 93.3% leased with a weighted average monthly effective rent per occupied apartment unit of $1,500. For our Same Store properties, we recorded the following operating results for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. Revenues Rental income. Rental income was $119.9 million for the six months ended June 30, 2026 compared to $122.7 million for the six months ended June 30, 2025, which was a decrease of approximately $2.8 million, or 2.2%. The decrease in rental income between the periods was primarily attributable to an increase in one time rent concessions and vacancy loss of $1.2 million and $1.1 million, respectively, for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. Other income. Other income was $3.9 million for the six months ended June 30, 2026 compared to $2.9 million for the six months ended June 30, 2025, which was an increase of approximately $1.0 million, or 33.7%. The majority of the increase is related to a $0.9 million increase in internet income. Expenses Property operating expenses. Property operating expenses were $28.0 million for the six months ended June 30, 2026 compared to $26.4 million for the six months ended June 30, 2025, which was an increase of approximately $1.6 million, or 6.1%. The majority of the increase is related to an increase of approximately $1.2 and $0.9 million in repairs and maintenance and internet expenses, respectively. Real estate taxes and insurance. Real estate taxes and insurance costs were $15.9 million for the six months ended June 30, 2026 compared to $17.5 million for the six months ended June 30, 2025, which was a decrease of approximately $1.6 million, or 9.2%. The majority of the decrease is related to a decrease in real estate taxes and property insurance expenses of $0.4 million and $0.4 million, respectively, and an increase in property tax refunds of $0.6 million. Property management fees. Property management fees were $3.6 million for the six months ended June 30, 2026 compared to $3.6 million for the six months ended June 30, 2025, which was flat. Property general and administrative expenses. Property general and administrative expenses were $2.8 million for the six months ended June 30, 2026 compared to $2.5 million for the six months ended June 30, 2025, which was an increase of approximately $0.3 million, or 11.3%. The majority of the increase is related to an increase in marketing portals expense and locator fees of $0.1 million and $0.1 million, respectively. 31 FFO, Core FFO and AFFO We believe that net income (loss), as defined by GAAP, is the most appropriate earnings measure. We also believe that funds from operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), core funds from operations (“Core FFO”) and adjusted funds from operations (“AFFO”) are important non-GAAP supplemental measures of operating performance for a REIT. Since the historical cost accounting convention used for real estate assets requires depreciation except on land, such accounting presentation implies that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market and other conditions, presentations of operating results for a REIT that use historical cost accounting for depreciation could be less informative. Thus, NAREIT created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation and amortization, among other items, from net loss, as defined by GAAP. FFO is defined by NAREIT as net loss computed in accordance with GAAP plus real estate depreciation and amortization. We compute FFO attributable to common stockholders in accordance with NAREIT’s definition. Our presentation differs slightly in that we begin with net loss before adjusting for amounts attributable to redeemable noncontrolling interests in the OP and we show the combined amounts attributable to such noncontrolling interests as an adjustment to arrive at FFO attributable to common stockholders. Core FFO makes certain adjustments to FFO, which are not representative of the ongoing operating performance of our Portfolio. Core FFO adjusts FFO to remove items such as casualty-related expenses and recoveries and gains or losses, the amortization of deferred financing costs, mark-to-market gains or losses related to interest rate cap agreements not designated as hedges for accounting purposes, and the noncontrolling interests (as described above) related to these items. We believe Core FFO is useful to investors as a supplemental gauge of our operating performance and is useful in comparing our operating performance with other REITs that are not as involved in the aforementioned activities. AFFO makes certain adjustments to Core FFO in order to arrive at a more refined measure of the operating performance of our Portfolio. There is no industry standard definition of AFFO and practice is divergent across the industry. AFFO adjusts Core FFO to remove items such as equity-based compensation expense and the related noncontrolling interests (as described above) related to these items. We believe AFFO is useful to investors as a supplemental gauge of our operating performance and is useful in comparing our operating performance with other REITs that are not as involved in the aforementioned activities. The effect of the conversion of OP Units held by noncontrolling limited partners is not reflected in the computation of basic and diluted FFO, Core FFO and AFFO per share, as they are exchangeable for common stock on a one-for-one basis. The FFO, Core FFO and AFFO allocable to such units is allocated on this same basis and reflected in the adjustments for noncontrolling interests in the table below. As such, the assumed conversion of these units would have no net impact on the determination of diluted FFO, Core FFO and AFFO per share. See Note 8 to our consolidated financial statements for additional information. We believe that the use of FFO, Core FFO and AFFO, combined with the required GAAP presentations, improves the understanding of operating results of REITs among investors and makes comparisons of operating results among such companies more meaningful. While FFO, Core FFO and AFFO are relevant and widely used measures of operating performance of REITs, they do not represent cash flows from operations or net income (loss) as defined by GAAP and should not be considered as an alternative or substitute to those measures in evaluating our liquidity or operating performance. FFO, Core FFO and AFFO do not purport to be indicative of cash available to fund our future cash requirements. Further, our computation of FFO, Core FFO and AFFO may not be comparable to FFO, Core FFO and AFFO reported by other REITs that do not define FFO in accordance with the current NAREIT definition or that interpret the current NAREIT definition or define Core FFO or AFFO differently than we do. 32 The following table reconciles our calculations of FFO, Core FFO and AFFO to net loss, the most directly comparable GAAP financial measure, for the three and six months ended June 30, 2026 and 2025 (in thousands, except per share amounts): For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 % Change Net loss $ (8,645 ) $ (7,061 ) $ (15,426 ) $ (13,985 ) -10.3 % Depreciation and amortization 23,893 24,059 48,184 48,409 -0.5 % Adjustment for noncontrolling interests (60 ) (67 ) (129 ) (136 ) 5.1 % FFO attributable to common stockholders 15,188 16,931 32,629 34,288 -4.8 % FFO per share - basic $ 0.60 $ 0.67 $ 1.28 $ 1.35 -5.2 % FFO per share - diluted $ 0.60 $ 0.67 $ 1.28 $ 1.34 -4.5 % Casualty-related expenses/(recoveries) 90 (792 ) (1,662 ) (1,448 ) -14.8 % Casualty loss — 5 — 168 N/M Amortization of deferred financing costs 1,684 1,628 3,367 3,272 2.9 % Mark-to-market adjustments of interest rate caps (29 ) 187 (127 ) 778 N/M Adjustment for noncontrolling interests (7 ) (4 ) (6 ) (11 ) 45.5 % Core FFO attributable to common stockholders 16,926 17,955 34,201 37,047 -7.7 % Core FFO per share - basic $ 0.66 $ 0.71 $ 1.34 $ 1.46 -8.2 % Core FFO per share - diluted $ 0.66 $ 0.71 $ 1.34 $ 1.45 -7.6 % Equity-based compensation expense 2,736 2,335 5,098 4,810 6.0 % Adjustment for noncontrolling interests (11 ) (9 ) (20 ) (19 ) -5.3 % AFFO attributable to common stockholders 19,651 20,281 39,279 41,838 -6.1 % AFFO per share - basic $ 0.77 $ 0.80 $ 1.54 $ 1.65 -6.7 % AFFO per share - diluted $ 0.77 $ 0.80 $ 1.54 $ 1.64 -6.1 % Weighted average common shares outstanding - basic 25,517 25,384 25,458 25,416 0.2 % Weighted average common shares outstanding - diluted (1) 25,517 25,404 25,491 25,540 -0.2 % Dividends declared per common share $ 0.53 $ 0.51 $ 1.06 $ 1.02 3.9 % Net loss Coverage - diluted (2) -0.64x -0.55x -0.57x -0.54x 5.0 % FFO Coverage - diluted (2) 1.12x 1.31x 1.21x 1.31x -8.1 % Core FFO Coverage - diluted (2) 1.25x 1.39x 1.26x 1.42x -11.1 % AFFO Coverage - diluted (2) 1.45x 1.57x 1.45x 1.61x -9.6 % (1)The Company uses actual diluted weighted average common shares outstanding when in a dilutive position for FFO, Core FFO and AFFO. For periods in which potential common shares are anti‑dilutive, diluted weighted‑average shares outstanding are equal to basic weighted‑average shares outstanding. (2)Indicates coverage ratio of net loss/FFO/Core FFO/AFFO per common share (diluted) over dividends declared per common share during the period. 33 The three months ended June 30, 2026 as compared to the three months ended June 30, 2025 FFO was $15.2 million for the three months ended June 30, 2026 compared to $16.9 million for the three months ended June 30, 2025, which was a decrease of approximately $1.7 million. The change in our FFO between the periods primarily relates to an increase in property operating expense of $2.1 million, offset by an increase in rental income of $0.6 million. Core FFO was $16.9 million for the three months ended June 30, 2026 compared to $18.0 million for the three months ended June 30, 2025, which was a decrease of approximately $1.1 million. The change in Core FFO was attributable to a decrease in FFO, offset by an increase in casualty-related expenses of $0.9 million. AFFO was $19.7 million for the three months ended June 30, 2026 compared to $20.3 million for the three months ended June 30, 2025, which was a decrease of approximately $0.6 million. The change in our AFFO between the periods primarily relates to a decrease in Core FFO and an increase in equity-based compensation expense of $0.4 million. The six months ended June 30, 2026 as compared to the six months ended June 30, 2025 FFO was $32.6 million for the six months ended June 30, 2026 compared to $34.3 million for the six months ended June 30, 2025, which was a decrease of approximately $1.7 million. The change in our FFO between the periods primarily relates to an increase in property operating expense of $1.9 million, offset by an increase in rental income of $0.2 million. Core FFO was $34.2 million for the six months ended June 30, 2026 compared to $37.0 million for the six months ended June 30, 2025, which was a decrease of approximately $2.8 million. The change in our Core FFO between the periods primarily relates to a decrease in FFO, offset by a decrease in mark-to-market adjustments of interest rate caps. AFFO was $39.3 million for the six months ended June 30, 2026 compared to $41.8 million for the six months ended June 30, 2025, which was a decrease of approximately $2.5 million. The change in our AFFO between the periods primarily relates to a decrease in Core FFO, offset by an increase in equity-based compensation expense of $0.3 million. Liquidity and Capital Resources Our short-term liquidity requirements consist primarily of funds necessary to pay for operating expenses and other expenditures directly associated with our multifamily properties, including: •capital expenditures to continue our value-add program and to improve the quality and performance of our multifamily properties; •interest expense and scheduled principal payments on outstanding indebtedness, (see “—Obligations and Commitments” below); •recurring maintenance necessary to maintain our multifamily properties; •distributions necessary to qualify for taxation as a REIT; •acquisition of additional properties; •advisory and administrative fees payable to our Adviser; •general and administrative expenses; •reimbursements to our Adviser; and •property management fees payable to BH. We expect to meet our short-term liquidity requirements generally through net cash provided by operations and existing cash balances and any unused capacity on the Credit Facility. As of June 30, 2026, we had approximately $6.6 million of renovation value-add reserves for our planned capital expenditures to implement our value-add program. Renovation value-add reserves are not required to be held in escrow by a third party. We may reallocate these funds, at our discretion, to pursue other investment opportunities or meet our short-term liquidity requirements. Our long-term liquidity requirements consist primarily of funds necessary to pay for the costs of acquiring additional multifamily properties, renovations and other capital expenditures to improve our multifamily properties and scheduled debt payments and distributions. We expect to meet our long-term liquidity requirements through various sources of capital, which may include a revolving credit facility and future debt or equity issuances, existing working capital, net cash provided by operations, long-term mortgage indebtedness and other secured and unsecured borrowings, and property dispositions. However, there are a number of factors that may have a material adverse effect on our ability to access these capital sources, including the state of overall equity and credit markets, our degree of leverage, our unencumbered asset base and borrowing restrictions imposed by lenders (including as a result of any failure to comply with financial covenants in our existing and future indebtedness), general market conditions for REITs, our operating 34 performance and liquidity, market perceptions about us and restrictions on sales of properties under the Code. The success of our business strategy will depend, in part, on our ability to access these various capital sources. In addition to our value-add program, our multifamily properties will require periodic capital expenditures and renovation to remain competitive. Also, acquisitions, redevelopments, or expansions of our multifamily properties will require significant capital outlays. Long-term, we may not be able to fund such capital improvements solely from net cash provided by operations because we must distribute annually at least 90% of our REIT taxable income, determined without regard to the deductions for dividends paid and excluding net capital gains, to qualify and maintain our qualification as a REIT, and we are subject to tax on any retained income and gains. As a result, our ability to fund capital expenditures, acquisitions, or redevelopment through retained earnings long-term is limited. Consequently, we expect to rely heavily upon the availability of debt or equity capital for these purposes. If we are unable to obtain the necessary capital on favorable terms, or at all, our financial condition, liquidity, results of operations, and prospects could be materially and adversely affected. On March 4, 2020, the Company, the OP and the Adviser entered into separate equity distribution agreements with each of the ATM Sales Agents, pursuant to which the Company could issue and sell from time to time when an effective registration statement was available shares of the Company’s common stock, par value $0.01 per share, having an aggregate sales price of up to $225,000,000 (the “ATM Program”). On March 20, 2025, the equity distribution agreements with each of KeyBanc and SunTrust were terminated. The ATM Program may be terminated by the Company at any time and expires automatically once aggregate sales under the ATM Program reach $225,000,000 (see Note 6 to our consolidated financial statements). We believe that our available cash, expected operating cash flows, and potential debt or equity financings will provide sufficient funds for our operations, anticipated scheduled debt service payments and dividend requirements for the twelve-month period following June 30, 2026. Cash Flows The following table presents selected data from our consolidated statements of cash flows for the six months ended June 30, 2026 and 2025 (in thousands): For the Six Months Ended June 30, 2026 2025 Net cash provided by operating activities $ 47,756 $ 48,202 Net cash used in investing activities (38,815 ) (18,689 ) Net cash used in financing activities (1,524 ) (35,426 ) Net increase (decrease) in cash, cash equivalents and restricted cash 7,417 (5,913 ) Cash, cash equivalents and restricted cash, beginning of period 45,180 53,917 Cash, cash equivalents and restricted cash, end of period $ 52,597 $ 48,004 Cash flows from operating activities. During the six months ended June 30, 2026, net cash provided by operating activities was $47.8 million compared to net cash provided by operating activities of $48.2 million for the six months ended June 30, 2025. The change in cash flows from operating activities was mainly due to a decrease in the net cash received on derivative settlements of $5.8 million, offset by a decrease in fair value on derivative instruments included in interest expense of $5.8 million and an increase in casualty gains of $1.7 million. Cash flows from investing activities. During the six months ended June 30, 2026, net cash used in investing activities was $38.8 million compared to net cash used in investing activities of $18.7 million for the six months ended June 30, 2025. The change in cash flows from investing activities was mainly due to an increase in originations of loans, held-for-investment of $22.1 million, offset by a decrease in additions to real estate investments of $2.0 million. Cash flows from financing activities. During the six months ended June 30, 2026, net cash used in financing activities was $1.5 million compared to net cash used in financing activities of $35.4 million for the six months ended June 30, 2025. The change in cash flows from financing activities was mainly due to an increase in mortgage proceeds received, credit facilities proceeds received, and a decrease in repurchase of common stock of $39.7 million, $22.1 million, and $7.7 million, respectively, offset by an increase in credit facility payments of $33.0 million and payments for taxes related net share settlement of stock-based compensation of $1.6 million. 35 Real Estate Investments Statistics As of June 30, 2026, the Company was invested in a total of 36 multifamily properties, as listed below: Average Effective Monthly Rent Per Unit (1) as of % Occupied (2) as of Property Name Rentable Square Footage (in thousands) Number of Units (3) Date Acquired June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 Arbors on Forest Ridge 155 210 1/31/2014 $ 1,141 $ 1,136 93.3 % 96.2 % Cutter's Point 198 196 1/31/2014 1,410 1,428 94.4 % 91.3 % The Summit at Sabal Park 205 252 8/20/2014 1,363 1,368 94.8 % 93.3 % Courtney Cove 225 324 8/20/2014 1,328 1,323 93.2 % 90.4 % Sabal Palm at Lake Buena Vista 371 400 11/5/2014 1,666 1,650 93.8 % 93.8 % Cornerstone 318 430 1/15/2015 1,357 1,382 93.7 % 90.0 % The Preserve at Terrell Mill 692 752 2/6/2015 1,272 1,296 93.5 % 91.2 % Versailles 301 388 2/26/2015 1,034 1,105 91.8 % 85.8 % Seasons 704 Apartments 217 222 4/15/2015 1,821 1,830 98.2 % 95.9 % Madera Point 193 256 8/5/2015 1,267 1,273 91.4 % 96.1 % Venue at 8651 289 333 10/30/2015 1,171 1,152 91.9 % 95.8 % Parc500 266 217 7/27/2016 1,899 1,941 94.5 % 95.9 % The Venue on Camelback 256 415 10/11/2016 961 951 90.6 % 92.5 % Rockledge Apartments 802 708 6/30/2017 1,462 1,481 95.5 % 93.3 % Atera Apartments 334 380 10/25/2017 1,462 1,470 91.8 % 92.4 % Versailles II 199 242 9/26/2018 1,015 1,092 91.3 % 86.4 % Brandywine I & II 414 632 9/26/2018 1,164 1,170 93.7 % 91.3 % Bella Vista 243 248 1/28/2019 1,636 1,590 93.1 % 96.4 % The Enclave 194 204 1/28/2019 1,661 1,720 90.7 % 94.6 % The Heritage 199 204 1/28/2019 1,556 1,593 91.2 % 92.6 % Summers Landing 139 196 6/7/2019 1,213 1,170 91.8 % 88.7 % Residences at Glenview Reserve 344 360 7/17/2019 1,240 1,248 94.2 % 93.9 % Residences at West Place 345 342 7/17/2019 1,575 1,591 95.6 % 92.7 % Avant at Pembroke Pines 1,442 1,520 8/30/2019 2,230 2,233 94.3 % 94.1 % Arbors of Brentwood 325 346 9/10/2019 1,427 1,415 93.6 % 92.2 % Torreyana Apartments 309 316 11/22/2019 1,501 1,479 92.1 % 90.5 % Bloom 498 528 11/22/2019 1,343 1,313 92.2 % 92.8 % Bella Solara 271 320 11/22/2019 1,402 1,335 93.1 % 88.4 % Fairways at San Marcos 340 352 11/2/2020 1,585 1,529 90.9 % 96.0 % The Verandas at Lake Norman 241 264 6/30/2021 1,370 1,341 93.2 % 94.3 % Creekside at Matthews 263 240 6/30/2021 1,442 1,461 96.7 % 92.9 % Six Forks Station 360 323 9/10/2021 1,371 1,347 93.8 % 93.5 % High House at Cary 293 302 12/7/2021 1,514 1,466 94.7 % 92.4 % The Adair 328 232 4/1/2022 1,963 1,942 98.3 % 95.3 % Estates on Maryland 324 330 4/1/2022 1,390 1,400 95.2 % 93.9 % Sedona at Lone Mountain 354 321 12/11/2025 1,608 1,592 92.5 % 91.6 % 12,247 13,305 (1)Average effective monthly rent per unit is equal to the contractual rent for commenced leases as of June 30, 2026 and December 31, 2025, respectively, minus any tenant concessions over the term of the lease, divided by the number of units under commenced leases as of June 30, 2026 and December 31, 2025, respectively. (2)Percent occupied is calculated as the number of units occupied as of June 30, 2026 and December 31, 2025, divided by the total number of units, expressed as a percentage. (3)Includes 1 down unit as of June 30, 2026 (see Note 3). Debt, Derivatives and Hedging Activity Mortgage Debt Interest rates for mortgage debt are based on a reference rate plus an applicable margin, except for fixed rate mortgage debt. The reference rate used in our Portfolio is the Secured Overnight Financing Rate (“SOFR”). Loans that transitioned from the London Inter-Bank Offered Rate ("LIBOR") to SOFR include a 0.11448% adjustment to SOFR for the all-in rate ("Adjusted SOFR"). As of June 30, 2026, our subsidiaries had aggregate mortgage debt outstanding to third parties of approximately $1.5 billion at a weighted average interest rate of 4.71% and an adjusted weighted average interest rate of 3.49%. For purposes of calculating the adjusted weighted average interest rate of our mortgage debt outstanding, we have included the weighted average fixed rate of 1.43% SOFR or Adjusted SOFR on our combined $0.8 billion notional amount of interest rate swap agreements, which effectively fixes the interest rate on $0.8 billion of our floating rate debt. See Notes 4 and 5 to our consolidated financial statements for additional information. We have entered into and expect to continue to enter into interest rate swap and cap agreements with various third parties to fix or cap the floating interest rates on a majority of our floating rate mortgage debt outstanding. The interest rate swap agreements generally 36 have a term of four to five years and effectively establish a fixed interest rate on debt on the underlying notional amounts. The interest rate swap agreements involve the receipt of variable-rate amounts from a counterparty in exchange for us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. As of June 30, 2026, interest rate swap agreements effectively covered 54% of our $1.5 billion of floating rate mortgage debt outstanding. The interest rate cap agreements generally have a term of three to four years, cover the outstanding principal amount of the underlying debt and are generally required by our lenders. Under the interest rate cap agreements, we pay a fixed fee in exchange for the counterparty to pay any interest above a maximum rate. As of June 30, 2026, the Company had interest rate cap agreements with a notional value of $1.5 billion outstanding, which effectively cap SOFR on $1.5 billion of our floating rate mortgage debt at a weighted average rate of 8.01%. LIBOR ceased publication on June 30, 2023. On July 1, 2023, LIBOR rates were replaced with SOFR as the reference rate for most LIBOR debt and derivative instruments. For the Company's interest rate swaps that were entered into before the transition, the reference transitioned from one-month LIBOR to Adjusted SOFR. On January 30, 2026, the Company entered into a $40.3 million mortgage loan secured by Sedona at Lone Mountain with Newmark. The loan matures on February 1, 2033, with all principal due at maturity and bears interest at a rate based on the 30‑day Average SOFR plus a margin of 1.23%. We intend to invest in additional multifamily properties as suitable opportunities arise and adequate sources of equity and debt financing are available. We expect that future investments in properties, including any improvements or renovations of current or newly acquired properties, will depend on and will be financed by, in whole or in part, our existing cash, future borrowings and the proceeds from additional issuances of common stock or other securities or property dispositions. Although we expect to be subject to restrictions on our ability to incur indebtedness, we expect that we will be able to refinance existing indebtedness or incur additional indebtedness for acquisitions or other purposes, if needed. However, there can be no assurance that we will be able to refinance our indebtedness, incur additional indebtedness or access additional sources of capital, such as by issuing common stock or other debt or equity securities, on terms that are acceptable to us or at all. Furthermore, following the completion of our value-add and capital expenditures programs and depending on the interest rate environment at the applicable time, we may seek to refinance our floating rate debt into longer-term fixed rate debt at lower leverage levels. Credit Facility On March 25, 2022, the Company entered into a loan modification agreement by and among the Company, the OP, Truist Bank and the Lenders party thereto, which modified the Company’s credit agreement, dated as of June 30, 2021 (as amended and supplemented, the “Corporate Credit Facility”). On February 28, 2025, the Company agreed to reduce the available borrowing on the Corporate Credit Facility by $250.0 million. The Corporate Credit Facility matured on June 30, 2025 with respect to the revolving commitments. As of June 30, 2026 and December 31, 2025, the Company had $0.0 million and $0.0 million, respectively, available for borrowing under the Corporate Credit Facility. On July 11, 2025, the Company, through the OP, entered into a $200.0 million revolving credit facility with JPM and the lenders thereto from time to time (the "Credit Facility"). The Credit Facility may be increased by up to an additional $200.0 million if the lenders agree to increase their commitments. The Credit Facility will mature on June 30, 2028, unless the Company exercises its option to extend for a one-year term upon satisfaction of certain criteria and payment of an extension fee of 0.15% of the aggregate amount outstanding under the Credit Facility. On December 9, 2025, the Company drew $90.0 million on the Credit Facility and on February 3, 2026 the Company made a principal payment of $33.0 million On June 5, 2026, the Company drew $22.1 million on the Credit Facility. As of June 30, 2026, the Company had $118.9 million available for borrowing under the Credit Facility, $79.1 million in aggregate principal outstanding on the Credit Facility and a $2.0 million letter of credit outstanding under the Credit Facility. The Credit Facility is guaranteed by the Company and the obligations under the Credit Facility are, subject to some exceptions, secured by a security interest in the proceeds of all equity offerings and other capital events by the Company, the OP or their subsidiaries and an equity pledge of each subsidiary of the OP that owns an interest in a mortgaged property. Advances under the Credit Facility accrue interest at a per annum rate equal to, at the Company’s election, either (i) the daily SOFR plus a margin of 1.50% to 2.25%, depending on the Company’s total leverage ratio in the immediately preceding quarter, (ii) the term SOFR for the interest period plus a margin of 1.50% to 2.25%, depending on the Company’s total leverage ratio in the immediately preceding quarter, or (iii) a base rate determined according to the highest of (a) the prime rate, (b) the federal funds rate plus 0.5%, or (c) the one month term SOFR plus 1.0%, plus a margin of 0.50% to 1.25%, depending on the Company’s total leverage ratio in the immediately preceding quarter. 37 A commitment fee at a rate of 0.20% or 0.30%, depending on the average daily revolving commitment utilization percentage for the calendar quarter, applies to unutilized borrowing capacity under the Credit Facility. The Credit Facility contains representations and warranties, affirmative and negative covenants and events of default that the Company considers customary for an agreement of this type, including covenants setting a maximum total leverage ratio and payout ratio and a minimum fixed charge coverage ratio, minimum tangible net worth, debt yield and cash reserve. If an event of default occurs, the lenders may terminate the commitments under the Credit Facility and require the immediate repayment of all outstanding borrowings and the cash collateralization of all outstanding letters of credit under the Credit Facility. As of June 30, 2026, the Company believes it is compliant with all provisions of the Credit Facility. Interest Rate Swap Agreements In order to fix a portion of, and mitigate the risk associated with, our floating rate indebtedness (without incurring substantial prepayment penalties or defeasance costs typically associated with fixed rate indebtedness when repaid early or refinanced), we, through the OP, have entered into five interest rate swap transactions with KeyBank and one with JPM (collectively the “Counterparties”) with a combined notional amount of $0.8 billion. As of June 30, 2026, the interest rate swaps we have entered into effectively replace the floating interest rate (Adjusted SOFR or SOFR) with respect to $0.8 billion of our floating rate debt outstanding with a weighted average fixed rate of 1.43%. During the term of these interest rate swap agreements, we are required to make monthly fixed rate payments of 1.43%, on a weighted average basis, on the notional amounts, while the Counterparties are obligated to make monthly floating rate payments based on Adjusted SOFR, other than for the JPM swap which is based on SOFR to us referencing the same notional amounts. For purposes of hedge accounting under FASB ASC 815, Derivatives and Hedging, we have designated these interest rate swaps as cash flow hedges of interest rate risk. See Notes 4 and 5 to our consolidated financial statements for additional information. The following table contains summary information regarding our outstanding interest rate swaps (dollars in thousands): Effective Date Termination Date Counterparty Notional Amount Fixed Rate (1) September 1, 2019 September 1, 2026 KeyBank $ 100,000 1.462 % September 1, 2019 September 1, 2026 KeyBank 125,000 1.302 % January 3, 2020 September 1, 2026 KeyBank 92,500 1.609 % June 1, 2021 September 1, 2026 KeyBank 200,000 0.845 % June 1, 2021 September 1, 2026 KeyBank 200,000 0.953 % April 3, 2025 April 1, 2030 JPM 100,000 3.489 % $ 817,500 1.427 % (2) (1)The floating rate option for the interest rate swaps is Adjusted SOFR and SOFR. As of June 30, 2026, Adjusted SOFR and SOFR were 3.75% and 3.63%, respectively. (2)Represents the weighted average fixed rate of the interest rate swaps. Obligations and Commitments The following table summarizes our contractual obligations and commitments as of June 30, 2026 for the next five calendar years subsequent to June 30, 2026. We used the applicable reference rate as of June 30, 2026 to calculate interest expense due by period on our floating rate debt and net interest expense due by period on our interest rate swaps. Payments Due by Period (in thousands) Total Remainder of 2026 2027 2028 2029 2030 Thereafter Operating Properties Mortgage Debt Principal payments $ 1,543,529 $ — $ — $ 33,817 $ — $ — $ 1,509,712 Interest expense (1) 403,664 34,294 79,566 76,542 73,910 74,515 64,837 Total $ 1,947,193 $ 34,294 $ 79,566 $ 110,359 $ 73,910 $ 74,515 $ 1,574,549 Credit Facility Principal payments $ 79,145 $ — $ — $ 79,145 $ — $ — $ — Interest expense 9,918 2,460 5,027 2,431 — — — Total $ 89,063 $ 2,460 $ 5,027 $ 81,576 $ — $ — $ — Total contractual obligations and commitments $ 2,036,256 $ 36,754 $ 84,593 $ 191,935 $ 73,910 $ 74,515 $ 1,574,549 38 (1)Interest expense obligations includes the impact of expected settlements on interest rate swaps which have been entered into in order to fix the interest rate on the hedged portion of our floating rate debt obligations. As of June 30, 2026, we had entered into six interest rate swap transactions with a combined notional amount of $0.8 billion and one forward rate swap agreement with a notional amount of approximately $0.1 billion. We have allocated the total impact of expected settlements on the $0.9 billion notional amount of interest rate swaps to ‘Operating Properties Mortgage Debt.’ We used Adjusted SOFR and SOFR, as applicable, as of June 30, 2026 to determine our expected settlements through the terms of the interest rate swaps. Credit Facility The Credit Facility will mature on June 30, 2028 with respect to the revolving commitments, unless the Company exercises its option to extend for a one-year term upon satisfaction of certain criteria and payment of an extension fee of 0.15% of the aggregate amount outstanding under the Credit Facility. See Note 4 to our consolidated financial statements. Advisory Agreement Our Advisory Agreement requires that we pay our Adviser annual Fees of 1.2%. The Fees paid to the Adviser on the Contributed Assets (as defined in the Advisory Agreement) are subject to an annual cap of approximately $5.4 million. For the three months ended June 30, 2026 and 2025, the Company incurred Fees of $1.8 million and $1.7 million, respectively. For the six months ended June 30, 2026 and 2025, Fees were $3.6 million and $3.4 million, respectively. NLMF Holdco, LLC The Company’s agreement with NLMF Holdco may result in additional funding requirements to cover future project costs. The maximum exposure of potential development funding is expected to be no more than 10% of the total project costs. We expect that these actions will provide faster, more reliable and lower cost internet to our residents. As of June 30, 2026, the Company has an investment of approximately $1.1 million to NLMF Holdco which is included in prepaid and other assets on the consolidated balance sheet of the Company. For the six months ended June 30, 2026, the Company incurred expenses of $1.4 million for fiber internet service which is included in property operating expenses on the consolidated statement of operations and comprehensive loss. Capital Expenditures and Value-Add Program We anticipate incurring average annual repairs and maintenance expense of $575 to $725 per apartment unit in connection with the ongoing operations of our business. These expenditures are expensed as incurred. In addition, we reserve, on average, approximately $250 to $350 per apartment unit for non-recurring capital expenditures and/or lender required replacement reserves. When incurred, these expenditures are either capitalized or expensed, in accordance with GAAP, depending on the type of the expenditure. Although we will continuously monitor the adequacy of this average, we believe these figures to be sufficient to maintain the properties at a high level in the markets in which we operate. A majority of the properties in our Portfolio were underwritten and acquired with the premise that we would invest $4,000 to $10,000 per unit in the first 36 months of ownership, in an effort to add value to the asset’s exterior and interiors. In many cases, we reserve cash at the closing of each acquisition to fund these planned capital expenditures and value-add improvements. As of June 30, 2026, we had approximately $6.6 million of renovation value-add reserves for our planned capital expenditures and other expenses to implement our value-add program, which will provide further funding for our interior and exterior rehab initiatives at several properties. The following table sets forth a summary of our capital expenditures related to our value-add program for the three and six months ended June 30, 2026 and 2025 (in thousands): For the Three Months Ended June 30, For the Six Months Ended June 30, Rehab Expenditures 2026 2025 2026 2025 Interior (1) $ 1,626 $ 1,329 $ 2,855 $ 1,980 Exterior and common area 878 91 1,274 149 Total rehab expenditures $ 2,504 $ 1,420 $ 4,129 $ 2,129 (1)Includes total capital expenditures during the period on completed and in-progress interior rehabs. For the six months ended June 30, 2026 and 2025, we completed full and partial interior rehabs on 759 and 765 units, respectively. 39 REIT Tax Election and Income Taxes We elected to be taxed as a REIT for U.S. federal income tax purposes under Sections 856 through 860 of the Code commencing with the taxable year ended December 31, 2015, and we intend to continue to be organized and to operate in a manner that will permit us to qualify as a REIT. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of our annual REIT taxable income to stockholders. As a REIT, we will be subject to U.S. federal income tax on our undistributed REIT taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions we pay with respect to any calendar year are less than the sum of (1) 85% of our ordinary income, (2) 95% of our capital gain net income and (3) 100% of our undistributed income from prior years. Taxable income from certain non-REIT activities is managed through a TRS and is subject to applicable federal, state, and local income and margin taxes. We had no significant taxes associated with our TRS for the six months ended June 30, 2026 and 2025. We believe we qualify for taxation as a REIT under the Code, and we intend to continue to operate in such a manner, but no assurance can be given that we will operate in a manner so as to qualify as a REIT. If we fail to qualify as a REIT in any taxable year, we will be subject to U.S. federal income tax on our taxable income at corporate income tax rates, and dividends paid to our stockholders would not be deductible by us in computing taxable income. Any resulting corporate liability could be substantial and could materially and adversely affect our net income and net cash available for distribution to stockholders. Unless we were entitled to relief under certain Code provisions, we also would be disqualified from re-electing to be taxed as a REIT for the four taxable years following the year in which we failed to qualify to be taxed as a REIT. We evaluate the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing our tax returns to determine whether the tax positions are “more-likely-than-not” (greater than 50 percent probability) of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Our management is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, which include federal and certain states. We have no examinations in progress and none are expected at this time. We recognize our tax positions and evaluate them using a two-step process. First, we determine whether a tax position is more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Second, we will determine the amount of benefit to recognize and record the amount that is more likely than not to be realized upon ultimate settlement. We had no material unrecognized tax benefit or expense, accrued interest or penalties as of June 30, 2026. We and our subsidiaries are subject to U.S. federal income tax as well as income tax of various state and local jurisdictions. The 2025, 2024 and 2023 tax years remain open to examination by tax jurisdictions to which our subsidiaries and we are subject. When applicable, we recognize interest and/or penalties related to uncertain tax positions on our consolidated statements of operations and comprehensive loss. Dividends We intend to make regular quarterly dividend payments to holders of our common stock. U.S. federal income tax law generally requires that a REIT distribute annually at least 90% of its REIT taxable income, without regard to the deduction for dividends paid and excluding net capital gains. As a REIT, we will be subject to U.S. federal income tax on our undistributed REIT taxable income and net capital gain and to a 4% nondeductible excise tax on any amount by which distributions we pay with respect to any calendar year are less than the sum of (1) 85% of our ordinary income, (2) 95% of our capital gain net income and (3) 100% of our undistributed income from prior years. We intend to make regular quarterly dividend payments of all or substantially all of our taxable income to holders of our common stock out of assets legally available for this purpose, if and to the extent authorized by our Board. Before we make any dividend payments, whether for U.S. federal income tax purposes or otherwise, we must first meet both our operating requirements and debt service on our debt payable. If our cash available for distribution is less than our taxable income, we could be required to sell assets, borrow funds or raise additional capital to make cash dividends or we may make a portion of the required dividend in the form of a taxable distribution of stock or debt securities. We will make dividend payments based on our estimate of taxable earnings per share of common stock, but not earnings calculated pursuant to GAAP. Our dividends and taxable income and GAAP earnings will typically differ due to items such as depreciation and amortization, fair value adjustments, differences in premium amortization and discount accretion, and non-deductible general and administrative expenses. Our quarterly dividends per share may be substantially different than our quarterly taxable earnings and GAAP earnings per share. Our Board declared our second quarterly dividend of 2026 of $0.53 per share on April 28, 2026 which was paid on June 30, 2026 and funded out of cash flows from operations. Off-Balance Sheet Arrangements As of June 30, 2026 and December 31, 2025, we had no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. 40 Critical Accounting Policies and Estimates Management’s discussion and analysis of financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires our management to make judgments, assumptions and estimates that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We evaluate these judgments, assumptions and estimates for changes that would affect the reported amounts. These estimates are based on management’s historical industry experience and on various other judgments and assumptions that are believed to be reasonable under the circumstances. Actual results may differ from these judgments, assumptions and estimates. Below is a discussion of the accounting policies that we consider critical to understanding our financial condition or results of operations where there is uncertainty or where significant judgment is required. A discussion of recent accounting pronouncements and our significant accounting policies, including further discussion of the accounting policies described below, can be found in Note 2 “Summary of Significant Accounting Policies” to our consolidated financial statements included in this Quarterly Report. Purchase Price Allocation Upon acquisition of a property considered to be an asset acquisition, the purchase price and related acquisition costs (“total consideration”) are allocated to land, buildings, improvements, furniture, fixtures, and equipment, and intangible lease assets based on relative fair value in accordance with FASB ASC 805, Business Combinations. Acquisition costs are capitalized in accordance with FASB ASC 805. The allocation of total consideration, which is determined using inputs that are classified within Level 3 of the fair value hierarchy established by FASB ASC 820, Fair Value Measurement and Disclosures (“ASC 820”) (see Note 5 to our consolidated financial statements), is based on management’s estimate of the property’s “as-if” vacant fair value and is calculated by using all available information such as the replacement cost of such asset, appraisals, property condition reports, market data and other related information. The fair value of land is estimated using valuation techniques appropriate for the specific property type, including the sales comparison approach, which reflects publicly available comparable land sales used to determine the fair value of land. The fair value of building assets is estimated using valuation methods that include a replacement cost new less depreciation approach and a residual value derived from a discounted cash flow analysis. These approaches reflect the estimated cost to replace the asset, adjusted for depreciation, as well as the building’s contribution to the property’s income generating potential. The allocation of the total consideration to intangible lease assets represents the value associated with the in-place leases, which may include lost rent, leasing commissions, legal and other related costs, which the Company, as buyer of the property, did not have to incur to obtain the residents. If any debt is assumed in an acquisition, the difference between the fair value, which is estimated using inputs that are classified within Level 2 of the fair value hierarchy, and the face value of debt is recorded as a premium or discount and amortized as interest expense over the life of the debt assumed. The Company allocates the purchase consideration to land, building, intangible lease assets, and other assets based on their relative fair values as part of the overall purchase price allocation. Impairment Real estate assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The key inputs into our impairment analysis include, but are not limited to, the holding period, net operating income, and capitalization rates. In such cases, we will evaluate the recoverability of such real estate assets based on estimated future cash flows and the estimated liquidation value of such real estate assets, and provide for impairment if such undiscounted cash flows are insufficient to recover the carrying amount of the real estate asset. If impaired, the real estate asset will be written down to its estimated fair value. The Company’s impairment analysis identifies and evaluates events or changes in circumstances that indicate the carrying amount of a real estate investment may not be recoverable, including determining the period the Company will hold the rental property, net operating income, and the estimated capitalization rate for each respective real estate investment. Inflation The real estate market has not been directly affected by inflation in the past several years due to increases in rents nationwide. The majority of our lease terms are for a period of one year or less and reset to market if renewed. The majority of our leases also contain protection provisions applicable to reimbursement billings for utilities. Due to the short-term nature of our leases, we do not believe our results will be materially affected. Inflation may also affect the overall cost of debt, as the implied cost of capital increases. We intend to mitigate these risks through interest rate hedges, which to date have included interest rate cap and interest rate swap agreements. 41