Citi Global Wealth UNSToPPABLe TreNDS | | 74 Investments Multifamily rental properties – such as low-rise significantly alongside inflation. The average National Apartment Association, the US will “garden style”, mid-to-high-rise apartment effective rental rate for multifamily rental need 4.3 million new apartment units in the towers and townhouse complexes – have proven properties in the US had risen almost 17% year next twelve years to meet increasing housing resilient during periods of high inflation. That on year as of the second quarter of 2022.4 demand.5 The insufficient supply of housing, is because their rents may reset every time coupled with less attainable home ownership their short-duration leases – typically one year Supply considerations also favor both and inflation limiting new build, is expected to – expire. In 2022, multifamily rents have risen developers and landlords. According to the continue to sustain robust rental demand. FiGUre 2. roBUST DeMAND For iNDUSTriAL ProPerTieS INDUSTRIAL SUPPLY & DEMAND 480 Completions (L) Net absorption (L) Availability rate (R) 12.0 400 10.0 Avaailability rate (%) 320 8.0 240 6.0 160 4.0 80 2.0 Completions and Net absorption (MSF) 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2016 2017 2018 2019 2020 2021 2022 Source: Crow Holdings, as of Oct 2022. Chart shows completions of new industrial properties in millions of square feet, the absorption rate – a metric which looks at how much space was occupied versus how much became available – and the availability rate or how much space was available. 4 Marcus & Millichap, as of August 2022 5 National Multifamily Housing Council & National Apartment Association (US apartment demand through 2035)