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 our Proportionate Share. The reconciliation of net income (loss) to proportionate NOI and proportionate same store NOI is provided below: (i n thou s a n d s ) (u n a u d i te d ) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2016 2015 2016 2015 Re con ci l i a ti on of n e t i n come (l os s ) to Prop orti on a te NOI a n d Prop orti on a te Sa me Store NOI : Ne t i n come (l os s ) Ad ju s tme n ts to re con ci l e n e t i n come (l os s ) to Prop orti on a te NOI : Corp ora te p rop e rty ma n a ge me n t e xp e n s e s Ge n e ra l a n d a d mi n i s tra ti ve e xp e n s e s I n te re s t e xp e n s e Amorti za ti on of d e fe rre d fi n a n ci n g cos ts De p re ci a ti on a n d a morti za ti on I n te re s t i n come Ga i n s on s a l e s of re a l e s ta te I n ve s tme n t a n d othe r d e ve l op me n t e xp e n s e s Oth e r, n e t Le s s : Non con trol l i n g i n te re s ts a d ju s tme n ts Prop orti on a te NOI Le s s : n on -comp a ra b l e Re n ta l re ve n u e Prop e rty op e ra ti n g e xp e n s e s , i n cl u d i n g re a l e s ta te ta xe s Prop orti on a te Sa me Store NOI $ 9,356 $ 30,876 $ (13,631) $ 74,172 2,263 5,248 11,192 1,492 31,197 (2,068) (17,510) 49 48 (11,975) 2,044 5,199 8,196 1,087 24,904 (2,596) (34,373) 245 453 (10,515) 8,270 19,111 32,621 4,582 92,251 (5,526) (17,510) 299 460 (35,280) 5,620 14,683 20,866 2,864 74,587 (7,956) (82,975) 3,860 314 (29,147) 29,292 25,520 85,647 76,888 (14,220) 8,019 (6,125) 3,623 (36,581) 20,511 (21,538) 11,625 23,091 23,018 $ 69,577 $ 66,975 Pl u s : a d d i ti on a l s a me s tore commu n i ti e s e ffe cti ve Ju l y 1, 2015 Re n ta l re ve n u e Prop e rty op e ra ti n g e xp e n s e s , i n cl u d i n g re a l e s ta te ta xe s Prop orti on a te Qu a rte rl y Sta b i l i ze d Sa me Store NOI 3,387 (1,449) 3,298 (1,316) N/A N/A N/A N/A N/A N/A $ 25,029 $ 25,000 19