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Tablet Contents G@wdern Reconciliation) of net income to NOI for the year ended December 31,2018, 2017, and 2016 areas follows dnstoasands Netincome Less: Fee and Less (Incomey Plus: Property Plus: Fee and son deferred compensation plans sanagement expense set management expense Plus: General afd adesinistative expense lus: Invres ef pense Plus: Depreciat Jon and amortization expense Ps: Expense/Prenefit) on deferred compensation plans hus: Loss on Less: Gain on Less: Equity i Pas Income Less: Income Less: Gain on: [Net operating inco Propers 1 Propery NOW ended December 31 Se sande) Same sore comm Property np Development and] Dispositionslother ly coiement of debt se of operating properties, including land income of joint ventures, expense fom discontinued operations [eotsotmesor tions, net of ax ye 2017 as compared to 2016 aso-up communities Toa property events Property expense ‘Same store comm NNon-sime store cf Development and Hurricane expens Dispostionsothe Total proper Property NOE ‘Same store commit "Non-same store Developmest and Hurricane expens Dispositionsothe Total proper + Nota meaning expenses se-up communities Nol percentage aos 2017 2016 $1604 200860 § 35,26 (as 4.176) (6368) e101) Go 20) 6535 (16.608) si) 25581 2573 25,125 44s 3903 3848 S073 30587 anais 84263 6750 93,48 300.946 263,974 250,146 6535) 16,508 ssi £ 33 — — (3.230) (295397) 0.86) (632) (7125) 14 1204 L6t7 oa - 7605) - = 75237) 5 Gos F oss 55052 as reconciled above, is detailed farther nt the following categories forthe year ended December 31,2018 as compared to 2017 and forthe year ‘fomawe December © nae ET 307 . % sige $MM SSH 5 25.080 32% ama 112,685 nm 29363 362 2838 12667 237 1os10 : EK at 20315 (ngs 82) Ws FHsaSS S__9mn89 SOD 4196 S450) SBS S882 ayn, state 30,363 10353 238 55 6 4339 = - au 94) . = 2845 6988 410) 93) obs 3) ses Faye Swe se sips $2622 «$5901 SSS 34% am 11508 5259 130 ma 28835 138 1481 son + oo 3M . 3316 13387 sty 3) Taos F__snase SC 26 communities are communities we owned end wee sailed since January 1,207, exludlg communities under redevelopment a properties held for ‘commuter ore stabilied communities not owed or stblfzed vince January J, 2017, inclading commrites under redevelopment and excluding Tale 1 define communis under redevelopment as communes wih eapal expendiures tat improve a communi’ cashflow and competitive pasion int exterior bung, common area, and emenity wparades. Monagimen believes same soe information suse a alls both management and lento a esfoine financiolreulr ever parclar period forthe sane tof communities Development and lease-up commis are nonstabilzed communities we Ihave developed frce lanuary 1, 2017, excluding properties held forsale. Hurican expenses include storm-related damages related to Huricanes Harvey and Irma inthe hard quarter of 217 Dispstonsther includes thas communities posed of Held for sale which are no lassie as dscontinued operations and non-mulfany rental Apartmeat ‘Year Ended Homes December awa 2 ie 4igss S$ Taps $ TTA S45 29% nities ais 71360 930 2511 $52 Development and ifase-up communities 2ais 60m - 603 . Dispostionsothe - 17581 49,100 1585) 3) ‘Total propertf revenues Tide 590086 Swear SC 2 28% Property expe ‘Same store comm 419s So UTR STAM 811 41% [Non-same store eofmunitos 3ST 28.561 18473 10088 586 Development and fare-up communities 2515 2399 = 2399 . Hurricane expense - 3944 =; sos . Dispostionsot = 6010 1648 9.428) (64) ‘Total propertf expenses ajo Se Fuss Fae 55% Property NOL: fT Same store 4p S 512123 $ SOLOS $1089 22% [Non-same store cof munitos 3357 879 31.06 143 385 Development and fate-up communities 2515 3.635 ~ 335 . Hurricane expense — 6.94) — 6944) . Dispostionsothe 11541 32,62 ey (64) ‘Total propert] NOT RG_ FSIS F002 S 7062 12% * Mota meaning (2) For 2017 Sele Dow-samefore commanites are stabilized comuites no owned ar sized since Janary |, 2016, incding communities under redevelopment and excusing properties held tle define commutes under redevelopment as commis with capital expenditure thet improve a communis cashflow and compete position mit cxeior bling common area. ond amenty upgrades. onsgeoant eles same store tformaton 1 wf as it allows both management dnd investors wo dette financial resus over a parldar period forthe same ssf communities. Development and lesen communities are norstbiized commas we Ive developed [nee Janay 1, 2016. exelaing properties held for sale, Dportnsoer eles tose communities disposed of or held fo sale which are not classed as ins and nor-mcfamly rental properties and expen related land holdings nt under atv development Same store pfopety NOL increased approximately $17.2 milion forthe yea ened December 31, 2018 as compared tothe same period in 2017, This increase ‘of approximately $25.1 milion in same store property evenues for the year ended December 31, 2018, partially offset by an increase of lion in same store property expenses forthe year ended Deveribr 31, 2018, as compared to the same period in 2017 102.8% increase Ju average ental rtes for our same able ef Cantante store portfolio fort ‘milion ineroase in ‘compared to thes year ended December 31,2018, a8 compared tothe same period in 2017. The inerease in sume stove property revenue was alyo duc toa $2.9 fer propery revenues primarily due to iereaes in income trom our bul interme rebilling program forthe year ended December 31, 2018 a8 period in 2017. The 79 mio nes ae store opr expense orth yeu edd December 3, 208 a compa he sn pron 207 wa ria dn an increase of appro $20 million of high rately $5.9 million in eal estat taxes as a result of higher property valuations and tax eaes at a numberof our communities, approximately salary expenses, and 810 illon of higher utility and bulk internet program expenses. These increases were paraly offset by an approximate SLO million sont 1 lower pair and maintenance costs as compared tothe same period in 2017 Year ended D Sanve store pr was due fo an ine approximately 114 The $225 mil ‘ental rates for out wae also due an i rier due toe ‘The sit to increased costs of 4 result of higher approximately $1.8 Property NOI smber 2017 compared to year ended December 2016 ferty NOI increased approximately $11. millon forthe year ended December 31,2017 as compared tothe same period in 2016, This increase cof approximately $22.5 milion in same store property revenues forthe year ended December 31,2017, pally offset by an increase of lion in same store property expenses forthe year ended December 31,2017, s compared tothe same period in 2016 ns increase in same store property revenues forthe year ended December 31,2017 as compared tothe same period in 2016, was due in par to an rental revenues of approximately $164 million for the year ended December 31,2017, which was primarily de to a 2.9% inerease m average ne store portfolio forthe year ended December 31,2017, as compared to the same perio in 2016 The increase in same store property revenue ase of approximately $6.1 million in other property revenve forthe year ended December 31,2017, as compared to the same period in 2016 si income ftom our bul interetrebiling program and miseelincous fee income. ion increase in same store property expense forthe year ended Decener 31,2017, 8 compared to the same period in 2016, was primarily due poroximatly $44 milion associated with our bulk internet ahd other utility eebillng programs and a $3.9 million inereas in rel esate taxes as operty valuations at a number of our communities. These increases were partially offset by decreased property insurance expenses of ion daring the year ended December 31,2017 as eompared tothe same period in 2016, not-same store and development and lase-yp communities inereased approximately $25. milion forthe year ended December 31,2018 as Nomsume: ole Development and Lease-yp Analysis compared tothe sa ‘offset by an increas property revenues afd expenses from our non-same store communities were primarily due tthe stl propery in 2018 an from our developn 2018, andthe parti Property NOL compared tothe san period in 2016. Te increase was due to an increase of approximately $335 milion in revenues forthe year ended December 31,2017, parti “oftset by an inven property revenues a and the acquisition primarily de to the period in 2017. The increase was due to an inctease of approximately 540.5 milion in revenues forthe yea ended December 31,2018, partially of approximately $15.0 milion in expenses forthe year ended December 31,2018, as compared to the samme period in 2017. The inereases in tion of four operating properties in 2017 and one operating the acquisition of one operating propecty in 2017 and tueo operating properties in 2018, The increase in property revenues and expenses ad lease communities wete primarily dv 1 the timing of completion and partial lease up ofa tal of three properties during 2017 and Jsse-up of wo properties which were under constuction at December 31, 2018 om non-same store and development and lease-up communities increased approximately $2.0 milion forthe year ended December 31,2017 as ly of approximately $125 milion in expenses forthe year ended December 31, 2017, as compare tothe sare peri in 2016, The increases in 1 expenses from our non-same store communities were primarily due tothe stabilization of four operating properties in each of 2016 and 2017 one operating property in 2017. The increases in property revenues and expenses from our development and lease-up communities ere [completion and paral lease up of a total of one property during 2016 and 2017, and the paral lease-up of one property which was under ‘construction at Deediber 31, 2017 %