Resource Real Estate Opportunity REIT II (RREO) 8-K Results of Operations and Financial Condition

Exhibit 99.1

RESOURCE REIT, INC.

TABLE OF CONTENTS

Company Information	3
Forward-Looking Statements	4
Presentation of Operating Data and Financial Information	4
Second Quarter 2021 Financial Results	6
Consolidated Balance Sheets – As reported on Form 10-Q (filed August 10, 2021)	11
Consolidated Statements of Operations – As reported on Form 10-Q (filed August 10, 2021)	12
Supplemental and Combined Consolidated Statements of Operations	13
Supplemental and Combined Financial & Operating Highlights	14
Supplemental and Combined FFO & Core FFO Reconciliation	15
Supplemental and Combined Adjusted EBITDA Reconciliation and Interest Coverage Ratio	16
Supplemental and Combined Same Store Portfolio Net Operating Income Reconciliation	17
Supplemental and Combined Same Store Portfolio Net Operating Income by State Three Months Ended June 30, 2021 and 2020	18
Supplemental and Combined Same Store Portfolio Net Operating Income by State Six Months Ended June 30, 2021 and 2020	19
Supplemental Portfolio Information	20
Supplemental Mortgage Notes Payable Summary Information	21
Supplemental Debt Summary	22
Supplemental Debt Covenants and Encumbered Asset Information	23
Supplemental and Combined Capital Analysis	24
Supplemental and Combined Capital Expenditures	25
Non-GAAP Financial Measures and Other Definitions	26

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RESOURCE REIT, INC.

Resource REIT, Inc.

June 30, 2021

Company Information:

Resource REIT, Inc. (“RRE” or the “Company”) is a real estate investment trust that owns and operates multifamily apartment properties across the United States. RRE’s targeted portfolio consists primarily of suburban “Class B” multifamily assets in highly desirable submarkets of growth-oriented MSAs. After the acquisition of a new multifamily apartment property, the Company often seeks to invest additional capital in the property to enhance its marketability and value (properties receiving additional capital are referred to herein as “value add properties”). In addition, the Company may invest in other real estate assets or debt secured by real estate assets. The Company continually monitors the composition and performance of its portfolio of optimized, renovated properties and pursues sales opportunities that will maximize returns for stockholders. More information may be found on the Company’s website at www.resourcereit.com, under the “Investor Relations” tab.

Corporate Headquarters

1845 Walnut Street, 17^th Floor

Philadelphia, PA 19103

212 546-5005

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RESOURCE REIT, INC.

Forward-Looking Statements

This supplement contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by terms such as “anticipate,” “believe,” “could,” “estimate,” “expects,” “intend,” “may,” “plan,” “potential,” “project,” “should,” “will” and “would” or the negative of these terms or other comparable terminology. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond the Company’s control and which could materially affect its results of operations, financial condition, cash flows, performance or future achievements or events. Factors that could cause actual results to differ materially from these expectations include, but are not limited to, the risks discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as updated by the Company’s subsequent reports filed with the Securities and Exchange Commission, including the continuing adverse effect of the current pandemic of the novel coronavirus (“COVID-19”) on the financial condition, results of operations, cash flows and performance of the Company, its tenants and the real estate market, global economy and financial markets generally. See “COVID-19 Pandemic” below. Actual results may differ materially from those contemplated by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly revise or update these forward-looking statements to reflect events or circumstances after the date of this supplement, except as may be required under applicable law.

Presentation of Operating Data and Financial Information

On January 28, 2021, Resource Real Estate Opportunity REIT, Inc. (“REIT I”), Resource Real Estate Opportunity REIT II, Inc. (“REIT II”) and Resource Apartment REIT III, Inc. (“REIT III”) completed the merger described in Note 1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 (the “Merger”). In the Merger, the Company (f/k/a REIT II) was the legal acquirer and REIT I was the accounting acquirer for financial reporting purposes.

Historical Financial Results

The Company’s historical unaudited Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020 and Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020 (all as reported in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021) included herein present the actual financial condition and results of operations for REIT I prior to the Merger closing on January 28, 2021 and the combined entity for periods after the Merger closing. For this reason, the historical period to period comparisons may not be meaningful as the Merger represents a significant business combination for the Company.

Supplemental and Combined Financial Results

The Company’s “supplemental” unaudited financial information included herein presents: (i) the Company’s actual financial condition as of March 31, 2021 and June 30, 2021 and (ii) supplemental results of operations for the Company for the three months ended March 31, 2021 and the three and six months ended June 30, 2021, as if the Merger occurred on January 1, 2021. The Company’s “combined” unaudited financial information included herein presents the combined financial condition and results of operations for REIT I, REIT II and REIT III as of and for the three and six months ended June 30, 2020 (as aggregated from the information reported in their respective Quarterly Reports on Form 10-Q for the quarter ended June 30, 2020). The supplement information has been prepared to give effect to the Merger as if it occurred on January 1, 2021, such that for the period from January 1, 2021 through January 28, 2021, the actual results of operations for REIT II and REIT III have been combined with the actual results of operations for REIT I during the period immediately prior to the Merger, depreciation and amortization and amortization of fair value adjustments related to assumed debt at the Merger have been adjusted to reflect the Merger as of January 1, 2021, and the information for the period after January 28, 2021 reflects the actual results of the combined company. The supplement information does not reflect pro forma financial statements as prepared in compliance with

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RESOURCE REIT, INC.

Article 11 of Regulation S-X as it does not reflect the Merger as of the earliest date reported (January 1, 2020). The combined information for periods during 2020 is presented on a combined basis whereby the combined financial condition and results of operations for REIT I, REIT II and REIT III have been aggregated based on the financial information reported by each respective company in its Quarterly Report on Form 10-Q for the periods. Management believes the supplemental and combined period to period comparisons may be more meaningful to investors as it presents financial information for all three companies which merged into the Company.

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RESOURCE REIT, INC.

Resource REIT, Inc.

Second Quarter 2021 Financial Results

Operating Data and Financial Results

Second Quarter Highlights

• Net income attributable to common stockholders of $6.4 million, or $0.04 per common share-diluted, for the three months ended June 30, 2021, as compared to a net loss attributable to common stockholders of ($6.5) million, or ($0.08) per common share-diluted, for the three months ended June 30, 2020.

• Total revenues increased 88% to $62.1 million for the three months ended June 30, 2021, as compared to $33.0 million for the three months ended June 30, 2020.

• One property sold for $49.8 million resulting in net proceeds of $24.1 million.

• Quarterly dividend of $0.07 per share of common stock paid on June 30, 2021.

Key Financial Measures

• The table below sets forth the Company’s net income (loss) attributable to common stockholders, FFO and Core FFO, each on a per share basis, for the three and six months ended June 30, 2021 and 2020:

	Three Months Ended					Six Months Ended
Per Share	June 30, 2021		June 30, 2020			June 30, 2021			June 30, 2020
Net income (loss) - diluted	$	0.04	$	(0.08	)	$	(0.07	)	$	(0.18	)
FFO - diluted	$	0.07	$	0.08		$	0.09		$	0.13
Core FFO - diluted	$	0.10	$	0.08		$	0.20		$	0.14

Please see the section entitled “Non-GAAP Financial Measures and Other Definitions” in this supplement for definitions of capitalized terms. Definitions of non-GAAP financial measures, including FFO and Core FFO, are included together with reconciliations of such measures to the Consolidated Statements of Operations on page 13.

Supplemental and Combined Operating Data and Financial Results

Results below are presented on a supplemental basis for the three months ended March 31, 2021 and the three and six months ended June 30, 2021, as if the Merger occurred on January 1, 2021, and a combined basis for the three and six months ended June 30, 2020:

Financial Results

• Supplemental net income attributable to common stockholders of $7.0 million, or $0.04 per common share-diluted, for the three months ended June 30, 2021, as compared to a combined net loss attributable to common stockholders of ($15.3) million, or ($0.10) per common share-diluted, for the three months ended June 30, 2020.

• Supplemental FFO increased 16% to $11.6 million, or $0.07 per common share-diluted, for the three months ended June 30, 2021, as compared to combined FFO of $10.0 million, or $0.06 per common share-diluted, for the three months ended June 30, 2020.

• Supplemental Core FFO increased 47% to $16.2 million, or $0.10 per common share-diluted, for the three months ended June 30, 2021, as compared to combined Core FFO of $11.0 million, or $0.07 per common share-diluted, for the three months ended June 30, 2020.

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RESOURCE REIT, INC.

• Supplemental Adjusted EBITDA increased 27% to $27.9 million for the three months ended June 30, 2021, as compared to a combined Adjusted EBITDA of $22.0 million for the three months ended June 30, 2020.

Portfolio Performance

• Supplemental Rental income grew 4.4% to $62.1 million for the three months ended June 30, 2021, as compared to combined rental income of $59.5 million for the three months ended June 30, 2020.

• Supplemental Same Store NOI before property management fees increased 5.6% to $35.8 million for the three months ended June 30, 2021, as compared to combined Same Store NOI before property management fees of $33.9 million for the three months ended June 30, 2020.

• Supplemental Same Store property operating margin before property management fees improved 60 basis points to 57.6% for the three months ended June 30, 2021, as compared to a combined Same Store property operating margin before property management fees of 57.0% for the three months ended June 30, 2020.

• Supplemental Portfolio occupancy increased 290 basis points to 95.2% and supplemental portfolio average rent increased 1.8% to $1,325 for the three months ended June 30, 2021, as compared to combined results of 92.3% portfolio occupancy and portfolio average rent of $1,301, respectively, for the three months ended June 30, 2020.

Please see the section entitled “Non-GAAP Financial Measures and Other Definitions” in this supplement for definitions of capitalized terms. Definitions of non-GAAP financial measures, including FFO and Core FFO, are included together with reconciliations of such measures to the Consolidated Statements of Operations on page 13.

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RESOURCE REIT, INC.

Same Store Property Operating Results

The table below reflects supplemental Same Store property results for the three months ended March 31, 2021 and the three and six months ended June 30, 2021 and combined Same Store property results for the three and six months ended June 30, 2020:

(Dollars in thousands, except rent per unit)	Three Months Ended									Six Months Ended									Three Months Ended
	June 30, 2021			June 30, 2020			Variance			June 30, 2021			June 30, 2020			Variance			March 31, 2021
Operating Results:
Rental income (1)	$	62,093		$	59,462			4.4	%	$	123,157		$	119,293			3.2	%	$	61,064
Property operating expenses (1)		26,320			25,591			2.8	%		52,733			50,535			4.3	%		26,413
Net operating income (“NOI”) before property management fees (2)		35,773			33,871			5.6	%		70,424			68,758			2.4	%		34,651
Property management fees		1,679			2,620			-35.9	%		3,321			5,292			-37.2	%		1,642
Net operating income after property management fees (2)		34,094			31,251			9.1	%		67,103			63,466			5.7	%		33,009
Average Occupancy		95.2	%		92.3	%		2.9	%		95.0	%		92.8	%		2.2	%		94.8	%
Net effective rent per occupied unit	$	1,325		$	1,301			1.8	%	$	1,316		$	1,297			1.5	%	$	1,307
NOI Margin before property management fees (%)		57.6	%		57.0	%		0.6	%		57.2	%		57.6	%		-0.4	%		56.7	%
NOI Margin after property management fees (%)		54.9	%		52.6	%		2.3	%		54.5	%		53.2	%		1.3	%		54.1	%

(1) Excludes activity for Non-Same Store properties.

(2) Same Store portfolio consists of 51 properties, which represent 14,995 units, for the three months ended March 31, 2021 and three and six months ended June 30, 2021 and 2020, respectively.

Please see the section entitled “Non-GAAP Financial Measures and Other Definitions” in this supplement for definitions of non-GAAP financial measures, including NOI.

COVID-19 Pandemic

One of the most significant risks and uncertainties facing the Company and the real estate industry generally continues to be the effect of the ongoing public health crisis of the COVID-19 pandemic. The Company continues to closely monitor the impact of the COVID-19 pandemic on all aspects of its business, including how the pandemic is impacting its tenants. The Company did not experience significant disruptions from the COVID-19 pandemic during the three and six months ended June 30, 2021; however, a small percentage of its tenants have submitted pandemic-related rent deferral requests. The Company is evaluating each tenant rent relief request on an individual basis, considering a number of factors. Not all tenant rent relief requests will ultimately result in modified agreements, nor is the Company forgoing its contractual rights under its lease agreements. As of June 30, 2021, the number and dollar value of the Company’s executed tenant rent relief plans are not significant.

The extent to which the COVID-19 pandemic will continue to impact the Company’s operations and those of its tenants depends on future developments, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, none of which can be predicted with confidence. The Company is unable to predict the ultimate impact that the pandemic will have on its financial condition, results of operations and cash flows due to numerous uncertainties.

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RESOURCE REIT, INC.

During the three months ended June 30, 2021, the Company’s net bad debt was $908,000. The table below presents additional details on the supplemental components of bad debt for the three months ended March 31, 2021 and June 30, 2021 and combined components of bad debt for the three months ended June 30, 2020:

Components of Bad Debt (1)	Q2 2021						Q2 2020						Q1 2021
(Dollars in thousands)	Amount			Percentage			Amount			Percentage			Amount			Percentage
Operating Results:
Charge-offs	$	557			0.9	%	$	225			0.4	%	$	570			0.9	%
Bad Debt Recoveries		(233	)		-0.4	%		(140	)		-0.2	%		(202	)		-0.3	%
Provision for bad debt		584			0.9	%		33			0.1	%		520			0.9	%
Net bad debt		908			1.4	%		118			0.3	%		888			1.5	%

(1) Percentages are a percentage of total rental income. Bad Debt is recorded as a reduction to rental income in our consolidated statements of operations.

Portfolio Operating Statistics

The table below reflects the supplemental Portfolio Operating Statistics for the three months ended March 31, 2021 and June 30, 2021 and combined Portfolio Operating Statistics for the three months ended June 30, 2020:

(Dollars in thousands, except rent per unit)	Q2 2021			Q2 2020			Q1 2021
Rental income	$	62,105		$	59,475		$	61,070
Property operating expenses		26,345			25,480			26,396
Net operating income before property management fees		35,760			33,995			34,674
Property management fees		1,679			2,621			1,642
Net operating income after property management fees		34,081			31,374			33,032
NOI Margin before property management fees (%)		57.6	%		57.2	%		56.8	%
NOI Margin after property management fees (%)		54.9	%		52.8	%		54.1	%
Collections - 30 day		95.6	%		98.4	%		95.2	%
Total rent collected, as a percentage of rent billed (1)		96.7	%		N/A			97.8	%
Average occupancy		95.2	%		92.3	%		94.8	%
Net effective rent per occupied unit	$	1,325		$	1,301		$	1,307
Resident retention rate		51.7	%		56.3	%		53.3	%

(1) Includes rents collected for all periods presented through June 30, 2021.

Please see the section entitled “Non-GAAP Financial Measures and Other Definitions” in this supplement for definitions of non-GAAP financial measures, including NOI.

Disposition Activity

On June 29, 2021, the Company completed the sale of Evergreen at Coursey Place, a 352-unit apartment community located in Baton Rouge, LA. Gross sale proceeds totaled $49.8 million, resulting in net proceeds of $24.1 million and a gain of $18.7 million.

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RESOURCE REIT, INC.

Financial Liquidity

As of June 30, 2021, the Company had a total liquidity position of approximately $251.1 million, which includes $174.6 million of unrestricted cash and $76.5 million of additional capacity under the Company’s secured revolving credit facility.

Capital Expenditures - Supplemental

For the three months ended June 30, 2021, recurring capital expenditures were $1.2 million, or $80 per unit, non-recurring capital expenditures were $2.6 million, or $172 per unit, and value-add capital expenditures were $732,000, or $49 per unit. For the six months ended June 30, 2021, recurring capital expenditures were $2.1 million, or $139 per unit, non-recurring capital expenditures were $3.6 million, or $239 per unit, and value-add capital expenditures were $1.2 million, or $77 per unit.

Distributions

On May 11, 2021, the Company’s Board of Directors declared a cash distribution of $0.07 per share for the second quarter of 2021, which was paid on June 30, 2021 to stockholders of record at the close of business on June 29, 2021.

Selected Financial Information

See the tables on the following pages for selected financial information for Resource REIT, Inc.

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RESOURCE REIT, INC.

The following tables present the historical financial statements reported in the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2021 (filed August 10, 2021):

Resource REIT, Inc.

Consolidated Balance Sheets

(in thousands, except share data)

	June 30, 2021			December 31, 2020
	(unaudited)
ASSETS
Investments:
Rental properties, net	$	2,128,052		$	897,975
Identified intangible assets, net		1,043			5
Total investments		2,129,095			897,980
Cash		174,604			70,015
Restricted cash		18,779			14,769
Subtotal- cash and restricted cash		193,383			84,784
Due from related parties		—			2,763
Tenant receivables, net of allowance of $2,310 and $774, respectively		1,000			516
Prepaid expenses and other assets		14,562			6,000
Goodwill		154,667			154,935
Operating lease right-of-use assets		2,873			3,180
Total assets	$	2,495,580		$	1,150,158
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net	$	1,554,165		$	825,986
Accounts payable and accrued expenses		19,687			12,677
Accrued real estate taxes		15,832			7,370
Due to related parties		3,022			20,245
Tenant prepayments		2,125			1,210
Security deposits		5,136			2,860
Operating lease liabilities		2,901			3,190
Total liabilities	$	1,602,868		$	873,538
Equity:
Preferred stock, par value $.01; 10,000,000 shares authorized, none issued		—			—
Common stock, par value $.01; 1,000,000,000 shares authorized; 158,009,186 and 86,075,442 shares issued and outstanding (including 1,044,963 and 790,272 of unvested restricted shares, respectively)		1,580			861
Convertible stock; par value $.01; 50,000 shares authorized; 50,000 and 49,935 shares issued and outstanding, respectively		1			1
Additional paid-in capital		1,267,069			618,074
Accumulated other comprehensive income (loss)		(16	)		(391	)
Accumulated deficit		(502,025	)		(469,736	)
Total stockholders’ equity		766,609			148,809
Noncontrolling interest		126,103			127,811
Total equity		892,712			276,620
Total liabilities and equity	$	2,495,580		$	1,150,158

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RESOURCE REIT, INC.

Resource REIT, INC.

Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
Revenues:
Rental income	$	62,105		$	32,991		$	115,505		$	66,367
Property management fee income - related parties		—			—			342			—
Asset management fee income - related parties		—			—			833			—
Other revenue		—			—			37			—
Total revenues		62,105			32,991			116,717			66,367
Expenses:
Property operating expenses		16,923			9,025			31,811			18,259
Real estate taxes		7,960			4,443			15,185			8,831
Acquisition costs		—			—			—			113
Property management fees - third party		1,679			—			3,321			—
Management fees - related party		—			4,547			—			9,130
Casualty loss		618			52			918			203
General and administrative		6,875			2,410			15,894			5,046
Loss on disposal of assets		308			112			418			221
Depreciation and amortization expense		27,947			13,006			51,050			26,167
Total expenses		62,310			33,595			118,597			67,970
Loss before other income (expense)		(205	)		(604	)		(1,880	)		(1,603	)
Other income (expense):
Interest expense		(10,898	)		(6,260	)		(25,430	)		(14,140	)
Interest income		6			41			21			99
Gain on sale of rental property		18,734			—			18,734			—
Gain on sale of land easement		—			290			—			290
Insurance proceeds in excess of cost basis		143			36			161			36
Total other income (expense)		7,985			(5,893	)		(6,514	)		(13,715	)
Income (loss) before income taxes		7,780			(6,497	)		(8,394	)		(15,318	)
Provision for income taxes		(3	)		—			(206	)		—
Net income (loss)	$	7,777		$	(6,497	)	$	(8,600	)	$	(15,318	)
Preferred return to preferred OP unit holders		(1,120	)		—			(2,240	)		—
Net income (loss) after preferred return		6,657			(6,497	)		(10,840	)		(15,318	)
Less: Allocation of income to preferred unit holders attributable to noncontrolling interest		52			—			111			—
Less: Net (income) loss attributable to noncontrolling interest		(357	)		—			508			—
Net income (loss) attributable to common stockholders	$	6,352		$	(6,497	)	$	(10,221	)	$	(15,318	)
Weighted average common shares outstanding- basic		156,780			85,708			146,075			85,500
Weighted average common shares outstanding- diluted		156,822			85,708			146,075			85,500
Net income (loss) per common share- BASIC	$	0.04		$	(0.08	)	$	(0.07	)	$	(0.18	)
Net income (loss) per common share- DILUTED	$	0.04		$	(0.08	)	$	(0.07	)	$	(0.18	)

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The following tables present supplemental results for the three months ended March 31, 2021 and the three and six months ended June 30, 2021 (as if the Merger occurred on January 1, 2021) and combined results for the three and six months ended June 30, 2020 (combined results of REIT I, REIT II and REIT III as reported in their respective Quarterly Reports on Form 10-Q for the quarter ended June 30, 2020):

Resource REIT, INC.

Supplemental and Combined Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

	Three Months Ended						Six Months Ended						Three Months Ended
	June 30,						June 30,						March 31,
	2021 (1)			2020 (2)			2021 (1)			2020 (2)			2021 (1)
Revenues:
Rental income	$	62,105		$	59,475		$	123,175		$	119,347		$	61,070
Other revenue		—			—			37			—			37
Total revenues		62,105			59,475			123,212			119,347			61,107
Expenses:
Property operating expenses		16,923			15,833			33,664			31,576			16,741
Real estate taxes		7,960			8,097			16,275			16,116			8,315
General and administrative- property		1,462			1,550			2,802			2,751			1,340
Property operating expenses before property management fees		26,345			25,480			52,741			50,443			26,396
Property management fees - third party		1,679			—			3,321			—			1,642
Property management fees - related party		—			2,621			—			5,294			—
Property operating expenses including property management fees		28,024			28,101			56,062			55,737			28,038
Acquisition costs		—			—			—			113			—
Management fees - related party		—			5,961			—			11,778			—
Transaction costs		—			—			7,822			—			7,822
Casualty Loss		618			450			924			1,102			306
General and administrative		5,413			3,163			13,767			7,032			8,354
Loss on disposal of assets		308			213			426			514			118
Depreciation and amortization expense		27,302			25,297			55,805			50,873			28,503
Total expenses		61,665			63,185			134,806			127,149			73,141
Loss before other income (expense)		440			(3,710	)		(11,594	)		(7,802	)		(12,034	)
Other income (expense):
Interest expense		(10,898	)		(11,964	)		(26,850	)		(26,914	)		(15,952	)
Interest income		6			53			22			148			16
Gain on sale of rental property		18,734			—			18,734			530			—
Gain on sale of land easement		—			290			—			290			—
Insurance proceeds in excess of cost basis		143			36			161			36			18
Total other income (expense)		7,985			(11,585	)		(7,933	)		(25,910	)		(15,918	)
Net income (loss)		8,425			(15,295	)		(19,527	)		(33,712	)		(27,952	)
Allocation of income to preferred unit holders		(1,120	)		—			(2,240	)		—			(1,120	)
Net income (loss) after preferred unit distributions		7,305			(15,295	)		(21,767	)		(33,712	)		(29,072	)
Less: Allocation of income to preferred unit holders attributable to noncontrolling interest		52			—			103			—			51
Less: Net (income) loss attributable to noncontrolling interest		(387	)		—			897			—			1,284
Net income (loss) attributable to common stockholders	$	6,970		$	(15,295	)	$	(20,767	)	$	(33,712	)	$	(27,737	)
Weighted average common shares outstanding - basic (3)		156,780			157,270			156,726			156,992			156,671
Weighted average common shares outstanding - diluted (3)		156,822			157,270			156,749			156,992			156,676
Net income (loss) per common share - BASIC	$	0.04		$	(0.10	)	$	(0.13	)	$	(0.21	)	$	(0.18	)
Net income (loss) per common share - DILUTED	$	0.04		$	(0.10	)	$	(0.13	)	$	(0.21	)	$	(0.18	)

(1) Assumes merger occurred on January 1, 2021.

(2) Reflects combined results of REIT I, REIT II and REIT III.

(3) Shares have been adjusted for the 2020 periods shown by the same exchange ratio used for the merger of REIT I, REIT II and REIT III.

13

RESOURCE REIT, INC.

Supplemental and Combined Financial & Operating Highlights

(Dollars in thousands, except per share and rent per unit data)	Three Months Ended
	June 30,			June 30,			March 31,
	2021			2020			2021
Selected Financial Information
Operating Statistics:
Net income (loss) attributable to common stockholders	$	6,970		$	(15,295	)	$	(27,737	)
Net income (loss) per common share - diluted	$	0.04		$	(0.10	)	$	(0.18	)
Rental income	$	62,105		$	59,475		$	61,070
Property operating expenses	$	28,024		$	28,101		$	28,038
Net Operating Income	$	34,081		$	31,374		$	33,032
Net Operating Income Margin (%)		54.9	%		52.8	%		54.1	%
Adjusted EBITDA	$	27,891		$	21,966		$	24,325
Funds From Operations	$	11,578		$	9,999		$	(4,766	)
FFO per diluted share	$	0.07		$	0.06		$	(0.03	)
Core Funds From Operations	$	16,206		$	11,043		$	15,328
Core FFO per share	$	0.10		$	0.07		$	0.10
Core FFO payout ratio (%)		68.1	%		0.0	%		72.0	%
Dividends to common shareholders	$	11,039		$	—		$	11,029
Dividends to preferred unitholders	$	1,120		$	—		$	1,120
Dividends per share, per quarter (common)	$	0.07		$	—		$	0.07
Dividends per share, annualized (common)	$	0.28		$	—		$	0.28
Dividend yield on NAV (%) (common)		3.1	%		0.0	%		3.1	%
DRIP (%)		24.2	%		0.0	%		22.6	%
DRIP shares (1)		311			—			289
Shares redeemed (1)		149			255			306
Shares redeemed, price	$	9.06		$	10.01		$	9.08
NAV (1), (2)	$	1,497,159		$	1,425,588		$	1,497,159
NAV, per share (1), (2)	$	9.06		$	9.12		$	9.06
Portfolio Data:
Total gross assets	$	2,833,511		$	2,431,373		$	2,848,794
Mortgage notes payable, net	$	1,554,165		$	1,493,190		$	1,582,382
Cash balance	$	174,604		$	108,543		$	147,078
Total number of properties		50			51			51
Total units		14,643			14,995			14,995
Collections - 30 day		95.6	%		98.4	%		95.2	%
Total rent collected, as a percentage of rent billed (3)		96.7	%		N/A			97.8	%
Average occupancy		95.2	%		92.3	%		94.8	%
Net effective rent per occupied unit	$	1,325		$	1,301		$	1,307
Resident retention rate		51.7	%		56.3	%		53.3	%
Liquidity:
Unrestricted cash	$	174,604		$	108,543		$	147,078
Secured line of credit - availability	$	76,507		$	—		$	—
Total Liquidity	$	251,111		$	108,543		$	147,078

(1) As reported, DRIP shares, shares redeemed and NAV for the three REITs combined, adjusted for the merger exchange ratio.

(2) For June 30, 2021 and March 31, 2021 above, NAV information is as of January 28, 2021.

(3) Includes rents collected for all periods presented through June 30, 2021.

14

RESOURCE REIT, INC.

Supplemental and Combined FFO & Core FFO Reconciliation

(Dollars in thousands, except per share data)
	Three Months Ended						Six Months Ended						Three Months Ended
	June 30,						June 30,						March 31,
	2021			2020			2021			2020			2021
Funds From Operations (FFO):
Net income (loss) attributable to common stockholders	$	6,970		$	(15,295	)	$	(20,767	)	$	(33,712	)	$	(27,737	)
Less: Gain on sale of rental property (1)		(17,874	)		—			(17,874	)		(530	)		—
Plus: Depreciation expense (1)		22,482			25,294			45,453			50,694			22,971
FFO attributable to common stockholders		11,578			9,999			6,812			16,452			(4,766	)
Stock compensation expense (1)		362			—			3,245			—			2,883
Debt prepayment costs (1)		—			—			2,324			—			2,324
Acquisition fees		—			—			—			113			—
Transaction Costs (1)		—			—			7,463			—			7,463
Amortization of Intangible Lease Assets (1)		3,567			3			7,791			179			4,224
Realized loss on change in fair value of interest rate caps (1)		13			43			63			59			50
Debt premium (discount) amortization (1)		(151	)		(110	)		324			(220	)		475
Deferring financing costs amortization (1)		385			694			2,785			1,427			2,400
Casualty losses, net of casualty gains (1)		452			414			727			1,066			275
Core FFO attributable to common stockholders	$	16,206		$	11,043		$	31,534		$	19,076		$	15,328
Basic net income (loss) per common share	$	0.04		$	(0.10	)	$	(0.13	)	$	(0.21	)	$	(0.18	)
Diluted net income (loss) per common share	$	0.04		$	(0.10	)	$	(0.13	)	$	(0.21	)	$	(0.18	)
FFO, per diluted share (2)	$	0.07		$	0.06		$	0.04		$	0.10		$	(0.03	)
Core FFO per diluted share (2)	$	0.10		$	0.07		$	0.20		$	0.12		$	0.10
Weighted average shares outstanding - basic		156,780			157,270			156,726			156,992			156,671
Weighted average shares outstanding - diluted (3)		156,822			157,270			156,749			156,992			156,676

(1) Each line item is adjusted to reflect the allocation to the noncontrolling interests for the three and six months ended June 30, 2021 as follows (in thousands): gain on sale of rental property $860 and $860, depreciation expense of $1,081 and $2,187, stock compensation expense of $17 and $156, debt prepayment costs of $0 and $112, transaction costs of $0 and $359, amortization of intangible lease assets of $172 and $374, realized loss on change in fair value of interest rate caps related to extinguishments of $1 and $3, debt premium (discount) amortization of $7 and $16, deferred financing costs amortization of $19 and $134, and casualty losses, net of casualty gains of $21 and $35.

(2) Calculated using weighted average shares outstanding – diluted.

(3) None of the shares of convertible stock and 602,506 unvested performance based restricted stock awards are included in the diluted earnings per share calculations because the necessary conditions for conversion have not been satisfied as of either June 30, 2021 or 2020. Weighted average shares outstanding – diluted in this table, which was used to calculate FFO per share and Core FFO per share, includes 23,094 weighted average unvested restricted shares outstanding for the six months ended June 30, 2021 however, these restricted shares were excluded from the calculation of diluted net loss per common share because their effect would be antidilutive for the six months ended June 30, 2021. Income (loss) attributable to outstanding OP Common and Preferred units issued in the Self-Management Transaction are included in net (income) loss attributable to noncontrolling interest, and therefore, excluded from the calculation of earnings (loss) per common share, basic and diluted, for all periods presented. In addition, in the event of a listing of the shares of our common stock on a national securities exchange, beginning 180 days after the date of such listing, the holders of OP Preferred Units shall have the right to require us to purchase the OP Preferred Units in exchange for a number of listed shares of our common stock determined by dividing (i) the number of OP Preferred Units multiplied by the redemption price as of the date of the exchange by (ii) the volume-weighted average price of such listed shares over the 30-day period prior to the date of the exchange. The additional 7.5 million common shares that potentially could be issued for this conversion at June 30, 2021 were excluded from diluted earnings per share, FFO per share and Core FFO per share as their impact, including reflecting removal of the $1.1 million and $2.2 million preferred distribution from the numerator would be antidilutive for the three and six months ended June 30, 2021.

15

RESOURCE REIT, INC.

Supplemental and Combined Adjusted EBITDA Reconciliation and Interest Coverage Ratio

(Dollars in thousands)	Three Months Ended						Six Months Ended						Three Months Ended
	June 30,						June 30,						March 31,
	2021			2020			2021			2020			2021
Adjusted EBITDA:
Net income (loss) attributable to common stockholders	$	6,970		$	(15,295	)	$	(20,767	)	$	(33,712	)	$	(27,737	)
Plus: Allocation of income (loss) to noncontrolling interests		335			—			(1,000	)		—			(1,335	)
Less: Gain on sale of rental property		(18,734	)		—			(18,734	)		(530	)		—
Less; Debt premium (discount) amortization		(158	)		110			340			220			498
Plus: Depreciation and amortization expense		27,302			25,297			55,805			50,873			28,503
Plus: Interest expense		10,638			11,117			21,089			25,208			10,451
Plus: Interest expense - preferred unit holders (1)		1,120			—			2,240			—			1,120
Plus: Deferring financing costs amortization		404			694			2,919			1,427			2,515
Plus: Realized loss on change in fair value of interest rate caps		14			43			66			59			52
Plus: Debt prepayment costs		—			—			2,436			—			2,436
Plus: Transaction Costs		—			—			7,822			—			7,822
Adjusted EBITDA	$	27,891		$	21,966		$	52,216		$	43,545		$	24,325
Interest Cost:
Interest expense (2)	$	12,018		$	11,964		$	29,090		$	26,914		$	17,072
INTEREST COVERAGE		2.3	x		1.8	x		1.8	x		1.6	x		1.4	x

(1) Reported as allocation of income to preferred unit holders to noncontrolling interest on Consolidated Statements of Operations.

(2) Includes interest expense paid to preferred unit holders.

16

RESOURCE REIT, INC.

Supplemental and Combined Same Store Portfolio Net Operating Income Reconciliation

(Dollars in thousands, except rent per unit)	Three Months Ended									Six Months Ended									Three Months Ended
	June 30,									June 30,									March 31,
	2021			2020			% change			2021			2020			% change			2021
Revenues:
Rental and other property revenue	$	62,093		$	59,462			4.4	%	$	123,157		$	119,293			3.2	%	$	61,064
Property Operating Expenses:
Real estate taxes		7,960			8,097			-1.7	%		16,275			16,111			1.0	%		8,315
Property insurance		1,555			1,627			-4.4	%		3,045			3,024			0.7	%		1,490
Payroll		5,585			5,277			5.8	%		11,058			10,485			5.5	%		5,473
Utilities		3,541			3,316			6.8	%		7,302			6,837			6.8	%		3,761
Landscaping		732			743			-1.5	%		1,246			1,248			-0.2	%		514
Repairs and maintenance		2,701			2,345			15.2	%		5,512			4,712			17.0	%		2,811
Turnover		1,150			1,043			10.3	%		2,096			2,025			3.5	%		946
General and administrative		1,462			1,549			-5.6	%		2,802			2,746			2.0	%		1,340
Marketing		628			578			8.7	%		1,261			1,179			7.0	%		633
Other expenses		1,006			1,016			-1.0	%		2,136			2,168			-1.5	%		1,130
Total property operating expenses		26,320			25,591			2.8	%		52,733			50,535			4.3	%		26,413
Property management fees		1,679			2,620			-35.9	%		3,321			5,292			-37.2	%		1,642
Same Store net operating income (1)	$	34,094		$	31,251			9.1	%	$	67,103		$	63,466			5.7	%	$	33,009
Same Store NOI margin		54.9	%		52.6	%		2.3	%		54.5	%		53.2	%		1.3	%		54.1	%
Average occupancy		95.2	%		92.3	%		2.9	%		95.0	%		92.8	%		2.2	%		94.8	%
Net effective rent per occupied unit	$	1,325		$	1,301			1.8	%	$	1,316		$	1,297			1.5	%	$	1,307
Reconciliation of Same Store net operating income to net income (loss) attributable to common stockholders
Same Store net operating income		34,094			31,251						67,103			63,466						33,009
Non-Same Store net operating income		(13	)		123						10			144						23
Total NOI	$	34,081		$	31,374					$	67,113		$	63,610					$	33,032
Other (expense) income:
Casualty loss		(618	)		(450	)					(924	)		(1,102	)					(306	)
Acquisition costs		—			—						—			(113	)					—
Transaction costs		—			—						(7,822	)		—						(7,822	)
Management fees - related party		—			(5,961	)					—			(11,778	)					—
General and administrative		(5,413	)		(3,163	)					(13,767	)		(7,032	)					(8,354	)
Loss on disposal of assets		(308	)		(213	)					(426	)		(514	)					(118	)
Depreciation and amortization expense		(27,302	)		(25,297	)					(55,805	)		(50,873	)					(28,503	)
Interest expense		(10,898	)		(11,964	)					(26,850	)		(26,914	)					(15,952	)
Interest income		6			53						22			148						16
Gain on sale of rental property		18,734			—						18,734			530						—
Gain on sale of land easement		—			290						—			290						—
Management fee and other income		—			—						37			—						37
Insurance proceeds in excess of cost basis		143			36						161			36						18
Total other expense (income)		(25,656	)		(46,669	)					(86,640	)		(97,322	)					(60,984	)
Net income (loss)	$	8,425		$	(15,295	)				$	(19,527	)	$	(33,712	)				$	(27,952	)
Allocation of income to preferred unit holders		(1,120	)		—						(2,240	)		—						(1,120	)
Net income (loss) after preferred unit distributions		7,305			(15,295	)					(21,767	)		(33,712	)					(29,072	)
Less: Allocation of income to preferred unit holders attributable to noncontrolling interest		52			—						103			—						51
Less: Net loss attributable to noncontrolling interest		(387	)		—						897			—						1,284
Net income (loss) attributable to common stockholders	$	6,970		$	(15,295	)				$	(20,767	)	$	(33,712	)				$	(27,737	)

(1) Same Store portfolio consists of 51 properties (including Evergreen at Coursey Place which was sold on June 29, 2021), which represent 14,995 units.

17

RESOURCE REIT, INC.

Supplemental and Combined Same Store Portfolio Net Operating Income by State

THREE MONTHS ENDED JUNE 30, 2021 AND 2020

(Dollars in thousands, except rent per unit)

											Property Operating																		Net Effective Rent
					Rental Income						Expenses (1)						Net Operating Income						Average Occupancy						Per Occupied Unit
	Number of								%						%						%						%						%
State	Properties		Units		2021		2020		Change		2021		2020		Change		2021		2020		Change		2021		2020		Change		2021		2020		Change
Alabama		2		480	$	1,649	$	1,516		8.8%	$	845	$	770		9.7%	$	804	$	746		7.8%		96.8%		92.0%		4.8%	$	1,008	$	993		1.5%
Arizona		2		866		3,307		2,928		12.9%		1,110		1,111		-0.1%		2,197		1,817		20.9%		97.1%		93.4%		3.7%		1,201		1,106		8.6%
California		2		694		3,947		3,919		0.7%		1,642		1,592		3.1%		2,305		2,327		-0.9%		95.9%		92.4%		3.5%		1,979		1,913		3.4%
Colorado		4		1,016		4,680		4,600		1.7%		1,655		1,686		-1.8%		3,025		2,914		3.8%		92.6%		91.6%		1.0%		1,507		1,518		-0.7%
Florida		4		984		4,081		3,713		9.9%		1,900		1,901		-0.1%		2,181		1,812		20.4%		97.2%		91.6%		5.5%		1,267		1,234		2.7%
Georgia		7		1,790		7,797		7,453		4.6%		3,601		3,499		2.9%		4,196		3,954		6.1%		95.7%		92.0%		3.7%		1,374		1,362		0.9%
Illinois		4		1,251		6,070		5,673		7.0%		2,394		2,619		-8.6%		3,676		3,054		20.4%		97.2%		91.5%		5.7%		1,561		1,544		1.1%
Louisiana (2)		1		352		1,092		1,086		0.6%		567		510		11.2%		525		576		-8.9%		96.9%		95.3%		1.5%		947		969		-2.2%
Minnesota		2		739		2,985		3,044		-1.9%		1,385		1,374		0.8%		1,600		1,670		-4.2%		96.3%		94.4%		1.8%		1,330		1,284		3.5%
North Carolina		2		623		2,301		2,246		2.4%		946		990		-4.4%		1,355		1,256		7.9%		93.7%		93.2%		0.4%		1,200		1,179		1.7%
Ohio		1		156		720		721		-0.1%		288		231		24.7%		432		490		-11.8%		91.7%		93.6%		-1.9%		1,361		1,270		7.1%
Oregon		2		545		2,404		2,330		3.2%		985		1,000		-1.5%		1,419		1,330		6.7%		96.1%		92.7%		3.4%		1,410		1,414		-0.2%
Pennsylvania		1		133		674		617		9.2%		383		313		22.4%		291		304		-4.3%		96.4%		91.0%		5.4%		1,453		1,416		2.6%
Texas		14		4,769		17,884		17,305		3.3%		9,138		9,449		-3.3%		8,746		7,856		11.3%		94.3%		91.6%		2.7%		1,211		1,199		1.0%
Virginia		3		597		2,502		2,311		8.3%		1,160		1,166		-0.5%		1,342		1,145		17.2%		97.4%		95.4%		2.0%		1,272		1,232		3.2%
Total / Weighted Average		51		14,995	$	62,093	$	59,462		4.4%	$	27,999	$	28,211		-0.8%	$	34,094	$	31,251		9.1%		95.2%		92.3%		2.9%	$	1,325	$	1,301		1.8%

(1) Includes property operating expenses, real estate taxes and property management fees but excludes Non-Same Store expenses.

(2) Table includes Evergreen at Coursey Place, which was sold on June 29, 2021.

18

RESOURCE REIT, INC.

Supplemental and Combined Same Store Portfolio Net Operating Income by State

SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(Dollars in thousands, except rent per unit)

											Property Operating																		Net Effective Rent
					Rental Income						Expenses (1)						Net Operating Income						Average Occupancy						Per Occupied Unit
	Number of								%						%						%						%						%
State	Properties		Units		2021		2020		Change		2021		2020		Change		2021		2020		Change		2021		2020		Change		2021		2020		Change
Alabama		2		480	$	3,258	$	3,038		7.2%	$	1,655	$	1,508		9.7%	$	1,603	$	1,530		4.8%		96.2%		92.5%		3.7%	$	1,007	$	996		1.1%
Arizona		2		866		6,523		5,803		12.4%		2,270		2,220		2.3%		4,253		3,583		18.7%		96.8%		93.3%		3.5%		1,183		1,093		8.2%
California		2		694		7,953		7,924		0.4%		3,321		3,297		0.7%		4,632		4,627		0.1%		95.2%		92.5%		2.7%		1,979		1,906		3.9%
Colorado		4		1,016		9,157		9,168		-0.1%		3,195		3,190		0.2%		5,962		5,978		-0.3%		92.5%		91.1%		1.4%		1,504		1,507		-0.2%
Florida		4		984		8,083		7,497		7.8%		3,766		3,694		1.9%		4,317		3,803		13.5%		96.7%		92.2%		4.5%		1,260		1,233		2.2%
Georgia		7		1,790		15,446		14,991		3.0%		6,930		7,007		-1.1%		8,516		7,984		6.7%		95.6%		92.6%		3.0%		1,365		1,359		0.4%
Illinois		4		1,251		11,913		11,484		3.7%		4,953		5,213		-5.0%		6,960		6,271		11.0%		95.9%		92.6%		3.3%		1,547		1,543		0.2%
Louisiana (2)		1		352		2,213		2,161		2.4%		1,097		995		10.3%		1,116		1,166		-4.3%		96.1%		94.8%		1.4%		975		969		0.6%
Minnesota		2		739		6,019		6,054		-0.6%		2,792		2,802		-0.4%		3,227		3,252		-0.8%		95.6%		94.7%		0.9%		1,324		1,276		3.7%
North Carolina		2		623		4,564		4,424		3.2%		1,819		1,864		-2.4%		2,745		2,560		7.2%		93.3%		93.2%		0.1%		1,199		1,171		2.4%
Ohio		1		156		1,419		1,489		-4.7%		590		592		-0.3%		829		897		-7.6%		91.7%		96.3%		-4.6%		1,257		1,264		-0.5%
Oregon		2		545		4,747		4,694		1.1%		1,990		1,870		6.4%		2,757		2,824		-2.4%		95.3%		92.9%		2.4%		1,398		1,417		-1.3%
Pennsylvania		1		133		1,342		1,247		7.6%		780		643		21.3%		562		604		-7.0%		97.0%		91.7%		5.2%		1,450		1,413		2.6%
Texas		14		4,769		35,590		34,724		2.5%		18,563		18,629		-0.4%		17,027		16,095		5.8%		94.2%		92.5%		1.7%		1,203		1,195		0.7%
Virginia		3		597		4,930		4,595		7.3%		2,333		2,303		1.3%		2,597		2,292		13.3%		97.1%		95.0%		2.1%		1,259		1,221		3.1%
Total / Weighted Average		51		14,995	$	123,157	$	119,293		3.2%	$	56,054	$	55,827		0.4%	$	67,103	$	63,466		5.7%		95.0%		92.8%		2.3%	$	1,316	$	1,297		1.5%

(1) Includes property operating expenses, real estate taxes and property management fees but excludes Non-Same Store expenses.

(2) Table includes Evergreen at Coursey Place, which was sold on June 29, 2021.

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RESOURCE REIT, INC.

Supplemental Portfolio Information

THREE MONTHS ENDED JUNE 30, 2021

(Dollars in thousands, except rent per unit)

						Net Effective
			Number of			Rent per		Revenue per		Average
Property	Market		Units		Year Built	Occupied Unit (1)		Occupied Unit (2)		Occupancy
1000 Spalding		Atlanta, GA		252	1995	$	1,370	$	1,464		95.7	%
81 Fifty at West Hills		Portland, OR		357	1985		1,392		1,531		95.0	%
Adair off Addison		Dallas, TX		152	1980		1,136		1,241		96.1	%
Adair off Addison II		Dallas, TX		200	1979		1,257		1,417		94.7	%
Addison at Sandy Springs		Sandy Springs, GA		236	1987		1,226		1,313		94.1	%
Arcadia		Centennial, CO		300	1984		1,580		1,698		96.0	%
Aston at Cinco Ranch		Katy, TX		228	2000		1,358		1,434		98.1	%
Bay Club		Jacksonville, FL		220	1990		1,262		1,360		97.0	%
Bristol Grapevine		Grapevine, TX		376	1978 - 1981		1,051		1,172		95.8	%
Bryant at Yorba Linda		Yorba Linda, CA		400	1986		2,157		2,059		95.1	%
Calloway at Las Colinas		Irving, TX		536	1984		1,154		1,294		87.4	%
Courtney Meadows		Jacksonville, FL		276	2001		1,245		1,414		98.2	%
Crosstown at Chapel Hill		Chapel Hill, NC		411	1990		1,179		1,299		92.3	%
Estates at Johns Creek		John’s Creek, GA		403	1999		1,662		1,943		96.3	%
Evergreen at Coursey Place (3)		Baton Rouge, LA		352	2003		947		1,071		96.9	%
Grand Reserve		Naperville, IL		319	1997		1,737		1,847		98.1	%
Green Trails		Lisle, IL		440	1988		1,457		1,567		96.8	%
Heritage Pointe		Gilbert, AZ		458	1989		1,181		1,299		98.0	%
Indigo Creek		Glendale, AZ		408	1998		1,223		1,319		96.1	%
Martin’s Point		Lombard, IL		256	1989		1,508		1,568		96.2	%
Matthew’s Reserve		Matthews, NC		212	1998		1,238		1,344		95.0	%
Maxwell Townhomes		San Antonio, TX		316	1983		1,124		1,234		85.4	%
Meridian Pointe		Burnsville, MN		339	1989		1,405		1,502		95.0	%
Montclair Terrace		Portland, OR		188	1968 - 2006		1,444		1,513		97.1	%
Perimeter 5550		Atlanta, GA		165	1994		1,301		1,430		97.2	%
Perimeter Circle		Atlanta, GA		194	1995		1,383		1,491		95.0	%
Pines of York		Yorktown, VA		248	1976		1,061		1,198		98.2	%
Point Bonita		Chula Vista, CA		294	1970 - 1988		1,739		1,877		96.7	%
Providence in the Park		Arlington, TX		524	1997		1,298		1,390		91.1	%
Ravina		Austin, TX		498	2001		1,253		1,431		97.6	%
Retreat at Rocky Ridge		Birmingham, AL		206	1986		852		1,003		96.8	%
Skyview		Westminster, CO		224	1985		1,294		1,414		85.9	%
South Lamar Village		Austin, TX		208	1981		1,328		1,449		97.5	%
Sunset Ridge		San Antonio, TX		324	1949		1,138		1,273		96.2	%
Tech Center Square		Newport News, VA		208	1985		1,081		1,225		97.5	%
Terraces at Lake Mary		Lake Mary, FL		284	1998		1,304		1,513		96.8	%
The Brookwood Apartment Homes		Homewood, AL		274	1968		1,125		1,316		96.8	%
The Cannery		Dayton, OH		156	1800s / 2011		1,361		1,678		91.7	%
The Palmer at Las Colinas		Dallas, TX		476	1991		1,413		1,547		95.2	%
The Summit		Alexandria, VA		141	1976		1,935		2,159		96.4	%
The Westside Apartment Homes		Plano, TX		412	1984		1,139		1,314		93.7	%
TrailPoint		The Woodlands, TX		271	1981		1,099		1,193		96.1	%
Tramore Village		Austell, GA		324	1999		1,227		1,336		95.0	%
Uptown Buckhead		Atlanta, GA		216	1989		1,263		1,376		96.7	%
Verdant		Boulder, CO		216	1991		1,892		2,073		95.1	%
Verona		Littleton, CO		276	1985		1,278		1,382		93.6	%
Vista		Philadelphia, PA		133	1964		1,453		1,754		96.4	%
Wimbledon Oaks		Arlington, TX		248	1986		1,128		1,260		95.2	%
Windbrooke Crossing		Buffalo Grove, IL		236	1986		1,571		1,719		97.8	%
Winthrop West		Riverview, FL		204	1990		1,252		1,386		96.8	%
Woods at Burnsville		Burnsville, MN		400	1984		1,267		1,317		97.5	%
Total / Weighted Average				14,995		$	1,325	$	1,451		95.2	%

(1) Represents the average net effective rent per occupied unit.

(2) Represents total revenue per occupied unit.

(3) Property sold on June 29, 2021.

20

RESOURCE REIT, INC.

Supplemental Mortgage Notes Payable Summary Information

AS OF JUNE 30, 2021
(Dollars in thousands)
		Term	Outstanding		Interest			Maturity
Property	Type	(months)	Principal (1)		Rate (2)			Date
1000 Spalding	Fixed	84		35,035		2.51	%		12/1/2027
Addison at Sandy Springs	Floating	84		22,143		1.86	%		5/1/2025
Arcadia	Fixed	84		56,810		2.57	%		12/1/2027
Bay Club	Floating	84		20,651		1.97	%		8/1/2024
Bristol Grapevine	Floating	84		32,855		1.81	%		5/1/2025
Bryant at Yorba Linda	Floating	84		74,908		2.35	%		4/15/2027
Calloway at Las Colinas	Fixed	84		51,935		2.57	%		12/1/2027
Courtney Meadows	Floating	84		26,206		1.94	%		1/1/2025
Crosstown at Chapel Hill	Floating	84		42,650		1.87	%		7/1/2025
Grand Reserve	Floating	120		47,845		1.82	%		5/1/2028
Green Trails	Floating	84		58,894		2.09	%		6/1/2024
Indigo Creek	Floating	84		38,988		2.03	%		5/1/2024
Martin’s Point	Floating	84		28,909		1.96	%		11/1/2024
Matthew’s Reserve	Fixed	84		23,850		4.47	%		9/1/2025
Maxwell Townhomes	Fixed	120		12,335		4.32	%		1/1/2022
Meridian Pointe	Floating	84		37,912		2.00	%		8/1/2024
Perimeter 5550	Floating	84		20,630		1.60	%		1/1/2026
Perimeter Circle	Floating	84		26,115		1.60	%		1/1/2026
Pines of York	Fixed	120		13,625		4.46	%		12/1/2021
Point Bonita	Fixed	120		25,015		5.33	%		10/1/2023
Ravina	Fixed	120		25,126		3.76	%		5/1/2022
Skyview	Floating	120		28,029		2.46	%		10/1/2026
Sunset Ridge	Floating	84		28,600		2.44	%		11/1/2027
Terraces at Lake Mary	Floating	84		31,001		2.01	%		9/1/2024
The Brookwood Apartment Homes	Fixed	120		18,897		4.82	%		11/1/2021
The Summit	Fixed	84		27,580		3.84	%		7/1/2026
TrailPoint	Floating	120		17,240		2.51	%		11/1/2023
Tramore Village	Floating	84		32,492		1.90	%		4/1/2025
Verdant	Fixed	84		47,146		2.57	%		12/1/2027
Wimbledon Oaks	Fixed	84		18,410		4.33	%		3/1/2026
Windbrooke Crossing	Floating	84		35,990		2.79	%		1/1/2024
Winthrop West	Fixed	84		21,760		4.36	%		10/1/2025
Woods at Burnsville	Floating	84		36,450		2.23	%		2/1/2024
Structured Credit Facility - Advance 1	Fixed	120		235,205		2.79	%		2/1/2031
Structured Credit Facility - Advance 2	Fixed	84		235,205		2.62	%		2/1/2028
Structured Credit Facility - Floating	Floating	120		24,760		2.07	%		2/1/2031
Total / Weighted Average				1,561,202		2.60	%

(1) Mortgage debt is non-recourse to the Company and encumbers the multifamily properties.

(2) At June 30, 2021, one-month LIBOR in effect was 0.10%.

21

RESOURCE REIT, INC.

Supplemental Debt Summary

AS OF JUNE 30, 2021									Weighted
(Dollars in thousands)				Weighted					Average
	Amount			Avg Rate			Type		Maturity
Debt:
Mortgage notes payable - variable rate		713,268			2.08	%		Floating		4.17
Mortgage notes payable - fixed rate		847,934			3.04	%		Fixed		6.45
Total Mortgage notes payable		1,561,202			2.60	%				5.41
Unamortized premium / deferred financing costs		(7,037	)
Total mortgage notes payable, net		1,554,165
Secured revolving credit facility (1)		—			—
Equity Capitalization - period end		1,567,418
Total Capitalization	$	3,121,583

(1) Secured revolving credit facility has a total capacity of $100.0 million, including $15.0 million available in letters of credit, of which none was drawn as of June 30, 2021. Borrowings under the facility mature on May 20, 2024.

(2) As of June 30, 2021, the Company maintains 21 interest rate caps with a combined notional value of $724.9 million with strike prices ranging from 1.45% to 5.84% (maturing May 2022) and maturity dates ranging from July 2021 to February 2026.

	Secured Fixed Debt		Secured Variable Debt		Total Debt		% of Total Debt			Weighted Average Interest rate
Debt Maturity Schedule:
2021	$	32,522	$	—	$	32,522		2.1	%		4.7	%
2022		37,461		—		37,461		2.4	%		3.9	%
2023		25,015		17,240		42,255		2.7	%		4.2	%
2024		—		288,795		288,795		18.5	%		2.1	%
2025		45,610		156,346		201,956		12.9	%		2.4	%
2026		45,990		74,774		120,764		7.7	%		2.7	%
2027 +		661,336		176,113		837,449		53.7	%		2.6	%
Total	$	847,934	$	713,268	$	1,561,202		100.0	%		2.6	%

22

RESOURCE REIT, INC.

Supplemental Debt Covenants and Encumbered Asset Information

AS OF JUNE 30, 2021

(Dollars in thousands)

Secured Revolving Credit Facility	Requirement			Actual			Compliance
Debt Covenant Summary:
Maximum total leverage ratio (1)		£ 65	%		52.4	%		Yes
Minimum fixed charge coverage ratio (2)		³ 1.35	x		1.77	x		Yes
Maximum secured recourse debt		£ 5	%		0.0	%		Yes
Minimum tangible net worth		³$678,834		$	915,456			Yes

(1) Steps down to 60% after 18 months (beginning the third quarter of 2022).

(2) Steps up to 1.50x after 12 months (beginning the first quarter of 2022).

AS OF JUNE 30, 2021

(Dollars in thousands)

Encumbered Asset Information (3)	Total Properties		Total Units		% of Total			Gross Assets (6)		Debt		LTV			Q2 2021 NOI		% of Total
Encumbered assets - Corporate Level Facility (4)		5		931		6.4	%	$	103,087	$	—		0.0	%	$	1,845		5.5	%
Encumbered assets - Property Level (5)		33		9,842		67.2	%		1,811,952		1,066,032		58.8	%		22,734		67.7	%
Encumbered assets - Structured Credit Level Facility (5)		12		3,870		26.4	%		653,173		495,170		75.8	%		8,987		26.8	%
		50		14,643		100.0	%	$	2,568,212	$	1,561,202		60.8	%	$	33,566		100.0	%

(3) The table above excludes the activity for Evergreen at Coursey Place for the three months ended June 30, 2021. The property was sold on June 29, 2021.

(4) Secured revolving credit facility is secured by a pledge of the equity interests of certain of the Company’s subsidiaries.

(5) Secured by mortgages.

(6) Gross asset calculation excludes goodwill, cash, prepaids and other assets recorded at our corporate level.

23

RESOURCE REIT, INC.

Supplemental and Combined Capital Analysis

(Dollars in thousands)		As of
		June 30,			June 30,			March 31,
		2021			2020			2021
Capitalization:
NAV, per share		$	9.06		$	9.12		$	9.06
Common shares & OP units outstanding			165,941			157,053			165,781
Market value of common equity			1,503,425			1,432,323			1,501,976
Preferred Operating Partnership Unit Liquidation Value			63,993			—			63,993
Equity capitalization			1,567,418			1,432,323			1,565,969
Total mortgage debt (1)			1,561,202			1,503,248			1,589,565
Secured revolving credit facility			—			—			—
Total debt outstanding			1,561,202			1,503,248			1,589,565
Less: Cash and cash equivalents			(174,604	)		(108,543	)		(147,078	)
Total net debt	��		1,386,598			1,394,705			1,442,487
Total Enterprise Value		$	2,954,016		$	2,827,028		$	3,008,456
Adjusted EBITDA (2)		$	27,891		$	21,966		$	24,325
Total Net Debt / Adjusted EBITDA (3)			12.4	x		15.9	x		14.8	x
Total Net Debt / Enterprise Value			46.9	%		49.3	%		47.9	%

(1) Total mortgage debt breakdown presented on pg. 21 for June 30, 2021.

(2) Adjusted EBITDA reconcilation presented on pg. 16.

(3) Adjusted EBITDA is shown on an annualized basis for periods shorter than one year.

24

RESOURCE REIT, INC.

Supplemental and Combined Capital Expenditures ⁽¹⁾

(Dollars in thousands, except per unit)	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Total Same-Store properties / units		14,995		14,995		14,995		14,995
Recurring	$	1,201	$	1,213	$	2,078	$	2,304
Non-Recurring		2,582		1,087		3,591		1,750
Capital Expenditures - Same Store	$	3,783	$	2,300	$	5,669	$	4,054
Capital Expenditures, per unit - Same Store	$	252	$	153	$	378	$	270
Value Add		732		2,471		1,158		8,863
Total Capital Spend - Same Store	$	4,515	$	4,771	$	6,827	$	12,917
Total Capital Spend, per unit - Same Store	$	301	$	318	$	455	$	861
All properties / units		14,995		14,995		14,995		14,995
Recurring	$	1,201	$	1,213	$	2,078	$	2,304
Non-Recurring		2,582		1,087		3,591		1,750
Capital Expenditures - All	$	3,783	$	2,300	$	5,669	$	4,054
Capital Expenditures, per unit - All	$	252	$	153	$	378	$	270
Value Add		732		2,471		1,158		8,863
Total Capital Spend - All	$	4,515	$	4,771	$	6,827	$	12,917
Total Capital Spend, per unit - All	$	301	$	318	$	455	$	861

(1) The above table reflects total capital spent on fixed assets placed in service for the periods presented.

25

RESOURCE REIT, INC.

Non-GAAP Financial Measures and Other Definitions

Average Occupancy

Average occupancy represents the daily average occupied units for the reporting period divided by the total number of units, expressed as a percentage.

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA

EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA represents net income (loss) (computed in accordance with GAAP) before interest expense, including amortization of deferred financing costs, income tax expense and depreciation and amortization expenses.

Adjusted EBITDA further excludes certain other non-cash or non-operating gains or losses related to items such as asset sales, debt extinguishments and acquisition related debt extinguishment expenses, casualty losses, transaction and related Merger costs and abandoned deal costs. The Company considers both EBITDA and Adjusted EBITDA to be appropriate supplemental measures of performance because they eliminate interest, income taxes, depreciation and amortization, other non-cash or non-operating gains and losses and one-time items which permit investors to view income from operations without these non-cash or non-operating items.

Funds From Operations (“FFO”) and Core FFO

FFO and Core FFO are non-GAAP financial performance measures. FFO is widely recognized as a measure of operating performance for a REIT. The Company uses FFO as defined by Nareit to be net income or loss, computed in accordance with GAAP, excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity and after related adjustments for noncontrolling interests. The Company believes that FFO is helpful to investors and management as a measure of operating performance.

Core FFO includes certain adjustments to FFO for non-routine items or items not considered core to business operations. Core FFO adjusts FFO to exclude equity compensation expense, losses on extinguishment of debt and modification costs, transaction (including Self-Management) costs, amortization of deferred financing costs, amortization of intangible lease assets, debt premium or discount amortization, realized losses on fair value adjustments related to interest rate caps, and casualty gains and losses. The Company believes that Core FFO is helpful to investors and management as a measure of operating performance.

Generally Accepted Accounting Principles (“GAAP”)

The Company defines GAAP as generally accepted accounting principles in the United States.

Interest Coverage

Interest coverage is a ratio computed by dividing Adjusted EBITDA by interest expense.

26

RESOURCE REIT, INC.

Net Debt

Net debt is calculated as total debt less cash and cash equivalents. The Company believes that Net Debt is a helpful measure of its credit position and progress towards reducing overall leverage.

Supplemental and Combined Reconciliation of Debt to Net Debt

(Dollars in thousands)	As of
	June 30, 2021			June 30, 2020			March 31, 2021
Total mortgage debt	$	1,561,202		$	1,503,248		$	1,589,565
Secured revolving credit facility		—			—			—
Total debt outstanding		1,561,202			1,503,248			1,589,565
Less: Cash and cash equivalents		(174,604	)		(108,543	)		(147,078	)
Total net debt	$	1,386,598		$	1,394,705		$	1,442,487
Adjusted EBITDA	$	27,891		$	21,966		$	24,325
Total Net Debt / Adjusted EBITDA		12.4	x		15.9	x		14.8	x
Enterprise Value	$	2,954,016		$	2,827,028		$	3,008,456
Total Net Debt / Enterprise Value		46.9	%		49.3	%		47.9	%

Net Effective Rent Per Occupied Unit

Net effective rent per occupied unit represents the average of gross potential rent net of gain/loss to lease, less vacancy, non-revenue units and concessions, divided by the average occupancy (in units) for the period presented.

Net Operating Income (“NOI”)

NOI is a non-GAAP financial performance measure. The Company defines NOI as total property revenue less total property expenses, excluding interest expense, depreciation and amortization and non-recurring and recurring expenses that are not reflective of the continuing operations of the properties. The Company uses NOI to evaluate the performance of the portfolio on a Same Store and Non-Same Store basis because it reflects the core operations of property performance without the other corporate level and non-recurring items not related to the Company’s properties and their continuing operations. NOI should only be used as an alternative measure of performance.

Same Store Properties and Same Store Portfolio

The Company defines Same Store properties as properties that were in the Company’s portfolio for the entirety of the comparative periods presented. The Company reviews the Same Store portfolio at the beginning of each calendar year and adds properties that were owned at the beginning of the previous year. Properties that are held-for-sale or that have been sold are excluded from the Same Store portfolio. However, notwithstanding the foregoing, for the three months ended June 30, 2021, Evergreen at Coursey Place, which was sold on June 29, 2021, was included since the property’s operations contributed almost an entire quarter of activity. The Company believes this is helpful when comparing to prior period results.

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RESOURCE REIT, INC.

Total Gross Assets

Total Gross Assets equals total assets plus accumulated depreciation and amortization, including fully depreciated real estate assets that are still in service. The following table provides a reconciliation of total assets to total gross assets.

(Dollars in thousands)	As of
	June 30,		June 30,		March 31,
	2021		2020		2021
Total assets	$	2,495,580	$	1,963,927	$	2,522,863
Plus: accumulated depreciation		304,558		418,475		295,862
Plus: accumulated amortization		33,373		48,971		30,069
Total gross assets	$	2,833,511	$	2,431,373	$	2,848,794

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