DISCLOSURES

Unless otherwise stated, all market data and metrics appearing in FNX materials was compiled from public records and other third party sources and does include off-market sales. Importantly, since all market data is sourced from public records, when we use the term “affordable housing”, unless otherwise indicated, we are referring only to real estate that has a liquid secondary market. We believe this data can be helpful in measuring and analyzing historical trends. We present these metrics on the Site and in SEC materials when we believe the sample size is meaningful for a particular metric, so we may not present all metrics for every FNX offering. These affordable real estate market metrics, including historical appreciation rates, may be presented in graphs, charts, diagrams or as stand-alone statistics and may be presented as a trendline relating to certain segments of the overall market, a particular projedct or a particular geography selected for their similarity to a specific project offered through the Site. Property sales price data and metrics are used for comparative modeling purposes only. Each FNX project is unique and historical price trends of a group of selected project is not a direct proxy for historical price performance of any specific project or any investment referenced on the Site.

Any transaction conducted in a foreign currency has been converted to U.S. dollars at the prevailing exchange rate as of the applicable transaction date, except with respect to “repeat sales”, in which case the conversion of a foreign currency to U.S. dollars occurs at the time of the first sale of the repeat sale pair. We endeavor to include all relevant projects and transactions, but no definitive object-oriented database with all sales is known to FNX, and therefore, despite our best efforts the data may be incomplete or inaccurate and we may exclude sale records.

FNX strongly cautions investors not to place undue reliance on historical data presented and we note the following:

AFFORDABLE HOUSING REAL ESTATE PRICE DATA AND TRENDS IS NOT A PROXY FOR INVESTMENT PERFORMANCE. RETURNS FROM INVESTMENTS IN AFFORDABLE REAL ESTATE PROJECTS WILL BE REDUCED BY FEES AND EXPENSES DESCRIBED IN THE SEC OFFERING MATERIALS THAT ARE NOT REFLECTED IN THE PRICE PERFORMANCE DATA AND METRICS PRESENTED.

INVESTORS ARE CAUTIONED THAT NO SELECTION OF A SIMILAR AFFORDABLE REAL ESTATE PROJECTS IS DIRECTLY COMPARABLE TO THE PRICE PERFORMANCE OF ANY SPECIFIC AFFORDABLE REAL ESTATE PROJECT OR INVESTMENT SINCE EACH AFFORDABLE REAL ESTATE PROJECT IS UNIQUE AND HAS ITS OWN UNIQUE RESULTS AND VOLATILITY, AND SUCH HISTORICAL DATA FOR A SELECTED PROPERTY, IF SHOWN, SHOULD NOT BE RELIED UPON AS AN ACCURATE COMPARISON. AVERAGE RATES OF APPRECIATION REFLECTED IN A TRENDLINE FOR SIMILAR AFFORDABLE REAL ESTATE PROJECTS MAY NOT BE REPRESENTATIVE OF THE PERFORMANCE OF ANY PROPERTY.

THE FUTURE IS NEVER THE SAME AS THE PAST. PAST APPRECIATION RATES MAY NOT BE INDICATIVE OF FUTURE APPRECIATION RATES AND ANY EXPECTED RETURNS OR PAST RETURNS MAY REFLECT THE PRICE TRENDS OF A PROJECT FOR A FINITE TIME, OR DURING A PERIOD OF EXTREME MARKET ACTIVITY. ALL INVESTMENTS INVOLVE RISK AND MAY RESULT IN PARTIAL OR TOTAL LOSS.

Comparisons to Other Asset Classes

FNX often uses real estate market price data to compare affordable housing appreciation trends to other asset classes, such as stock, bonds, other real estate classes or categories, gold and other assets. While FNX believes these comparisons can be useful to help potential investors discern long term trends in these asset classes, there are significant limitations to the utility of such comparative data, particularly over shorter time periods, and potential investors are cautioned not to place undue reliance on such data. There are significant differences between affordable housing projects and these other asset classes. For example, many asset categories are far more liquid than real estate. Whereas exchange traded stocks, commodities and precious metals are priced continuously in real time, real estate prices upon which data is available are updated only on limited occasions and subject to current market supply and demand characteristics. As a result, these asset categories may appear to be more volatile than real estate and will react more quickly to events and market forces than real estate prices. Several leading asset categories are commoditized, so demand is concentrated on the asset category as a whole as opposed to real estate, which is fragmented into separate classifications. In addition, most other asset categories have been securitized or otherwise packaged in various types of financial products and instruments such that large pools of capital can efficiently flow in and out of them with relatively low friction in terms of time, effort and cost.

Real Estate Market Data Metrics

Metrics that FNX presents may include some or all of the following:

Selected Comparable Sales Appreciation. Selected comparable sales provide an estimate of the historical appreciation rate of the specific project by looking at a set of similar projects that have been sold in the market. The set of similar projects selected will include features and characteristics that are similar to the subject project, which may include size, location, unit count, elements of construction and other features. The applicable time period for which we calculate Selected Similar Sale Appreciation is from the earliest date that a similar project was sold in the market until the most recent date prior to the qualification of an applicable offering that FNX has published. Although the projects selected for inclusion in the set of similar projects have similar characteristics to the subject project, each individual project is unique in terms of size, location, unit count, elements of construction and other features. We, therefore, cannot make any determination or representation that our estimate of the historical appreciation rate of a project is correct or predictive of future value.

Market-Risk Adjusted Appreciation, or “Sharpe Ratio”. The Market-Risk Adjusted Appreciation, also referred to as the “Sharpe Ratio,” indicates how well the project’s sub-market has performed historically in comparison to the rate of return on a risk-free investment, such as U.S. government treasury bonds or bills, by measuring price appreciation relative to the volatility of that price appreciation over time. A relatively higher Sharpe Ratio reflects higher appreciation relative to volatility and generally signals a better risk adjusted return, and, conversely, a relatively lower Sharpe Ratio generally means there is more volatility relative to price appreciation, although historical volatility is not necessarily a proxy for investment risk. The Sharpe Ratio reflects (x) the average annualized artist market appreciation (depreciation) of all properties that have sold in a sub-market over a defined period of time (referred to as “historical sales”), minus the risk-free rate of return. The risk-free rate of return is measured by the average annual risk-free rate at year end over the applicable time period, divided by (y) the volatility of the returns in a project’s sub-market, as measured by the standard deviation of those returns.

Median Sales Price Appreciation. Median Sales Price Appreciation reflects the median annualized price appreciation rate of all projects in a said sub-market with similar size, location, unit count, elements of construction and other consistent features, that has sold within the past 24 months, known as “recent sales”, which indicates the progression of prices in a particular sub-market over time. Analysis of sub-market sales can be useful because recent sale data reflects price changes for a similar constructed project, which reduces the selection bias inherent in looking at a select set of similar projects.