Appendix Net Operating Income (“NOI”) is calculated as total rental revenue less direct property operating expenses including real estate taxes. NOI does not include property management revenues, interest income, property management expenses, depreciation, interest and other finance expense, corporate general and administrative expenses, overhead allocations and other non-onsite operations. We provide NOI on a consolidated and Proportionate Share basis. The reconciliation of net income (loss) to proportionate share of NOI is provided below: (in thousands) (unaudited) Three Months Ended De ce mbe r 31, Year Ended De ce mbe r 31, 2015 2014 2015 2014 Reconciliation of net income (loss) to NOI, Same Store NOI and Same Store NOI - Prop ortionate Share: Net income (loss) Adjustments to reconcile net income (loss) to NOI: Corp orate p rop erty management exp enses General and administrative exp enses Asset management exp enses Transition exp enses Interest exp ense Amortization of deferred financing costs Dep reciation and amortization Interest income Gains on sales of real estate Investment and other develop ment exp enses Other, net NOI Less: non-comp arable Rental revenue Prop erty op erating exp enses, including real estate taxes Same Store NOI Less: Adjustment to adjust above items to Prop ortionate Share Same Store NOI - Prop ortionate Share $ (7,489) $ (6,477) $ 66,683 $ 271 2,165 6,130 - - 9,485 1,416 28,139 (2,216) - 311 (49) 1,344 4,231 - 6,006 6,085 756 24,458 (2,737) (244) 357 (298) 7,786 20,813 - - 30,351 4,280 102,726 (10,172) (82,975) 4,171 264 6,970 15,627 3,843 12,672 21,424 2,486 93,308 (10,554) (16,411) 1,197 (623) 37,892 33,481 143,927 130,210 (17,058) 8,949 (11,131) 5,487 (56,962) 29,635 (35,766) 17,122 29,783 (8,492) 27,837 (8,171) 116,600 (33,691) 111,566 (32,560) $ 21,291 $ 19,666 $82,909 $ 79,006 M O N O G R A M R E S I D E N T I A L T R U S T 23