EXHIBIT (g)(2)
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Power Point Presentation
NOTE TO EDGAR USERS:
THE FOLLOWING DOES NOT CONSTITUTE AN OFFER TO PURCHASE ANY SECURITIES OR A
SOLICITATION OF AN OFFER TO BUY ANY SECURITIES, PURSUANT TO THE EXCHANGE OFFERS
OR OTHERWISE. THE OFFERS TO EXCHANGE PREFERRED SHARES FOR INTERESTS ARE MADE
SOLELY BY THE PROSPECTUS AND LETTERS OF TRANSMITTAL RELATING TO THE OFFERS,
WHICH CONTAIN THE FULL TERMS AND CONDITIONS OF THE OFFERS, INCLUDING DETAILS OF
HOW THE OFFERS MAY BE ACCEPTED. BERKSHIRE INCOME REALTY HAS FILED TENDER OFFER
STATEMENTS CONTAINING THE PROSPECTUS AND OTHER RELATED DOCUMENTATION. FREE
COPIES OF THE TENDER OFFER STATEMENTS ARE AVAILABLE ON THE SEC'S WEBSITE AT
WWW.SEC.GOV. INTEREST HOLDERS ARE ADVISED TO READ THE TENDER OFFER STATEMENTS
AND THE PROSPECTUS BECAUSE THEY CONTAIN IMPORTANT INFORMATION.
Berkshire Income Realty, Inc.
9% Series A Cumulative
Redeemable Preferred Stock
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Berkshire Income Realty, Inc.
The Company
A newly formed REIT
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Berkshire Income Realty, Inc.
o An affiliate of Krupp Funds Group
o Goal to acquire, own and operate multi-family
residential properties
o A new REIT
o Controlled by Douglas Krupp and George Krupp
o Contributing 5 multi-residential properties
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Berkshire Income Realty, Inc.
What are we doing?
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Exchange Offering Highlights
o We are offering an opportunity to investors to
exchange all or part of their interests in the
6 mortgage funds for shares of a 9% Series
A Cumulative Preferred Stock in a new REIT
o Higher yield
o Greater Liquidity listed on the American
Stock Exchange under the symbol BIR
o No commission or transaction fees
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Exchange Offering Highlights
o Non callable until February 15, 2010
(provides call protection for 7 years)
o Offer expires on February 20, 2003 unless
extended
o No minimum number of Interests required to
exchange
o Able to exchange part of Interests
o Not able to purchase additional shares for cash
at the time of offering.
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Dividends
o Cash Dividends paid at an annual rate of 9% on the
$25.00 liquidation preference
o $2.25 annualized, $0.5625 payable quarterly
o Senior position dividends must be paid to preferred
stock before any dividends paid on the Company's
common stock
o Paid February 15, May 15, August 15, and
November 15 of each year.
o Cumulative dividends will accrue whether or not
they are authorized or declared by us.
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Berkshire Income Realty, Inc.
o Why Preferred Shares?
- Predictable, fixed payment of
dividends
- Fewer risks than common stock and
limited partnership interests because the 9%
must be paid before any dividends to
common stock holders
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Berkshire Income Realty, Inc.
Mortgage Fund Information
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Names of the Mortgage Funds
o 6 Current Krupp Mortgage Funds
- Krupp Government Income Trust
- Krupp Government Income Trust II
- Krupp Insured Plus Limited Partnership
- Krupp Insured Mortgage Limited Partnership
- Krupp Insured Plus III Limited Partnership
- Krupp Insured Plus II Limited Partnership
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Abbreviations
o BIR - Berkshire Income Realty, Inc.
o REIT - Real Estate Investment Trust
o GIT - Krupp Government Income Trust
o GIT2 - Krupp Government Income Trust II
o KIP - Krupp Insured Plus Limited Partnership also called K1
o KIM - Krupp Insured Mortgage Limited Partnership
o KIP3 - Krupp Insured Plus III Limited Partnership also called K3
o KIP2 - Krupp Insured Plus II Limited Partnership also called K2
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VALUATIONS
o Net Asset Valuations o BIR Purchase Price
GIT $3.96 per share GIT $3.71 per share
GIT2 $6.86 per share GIT2 $6.25 per share
KIM $1.96 per unit KIM $1.88 per unit
KIP $3.00 per unit KIP $2.80 per unit
KIP3 $1.91 per unit KIP3 $1.79 per unit
KIP2 $1.05 per unit KIP2 $1.05 per unit
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Berkshire Income Realty, Inc.
Conversion Rate Calc. Conversion Rate
GIT $3.71/$25.00 = 0.1481
GIT2 $6.25/$25.00 = 0.2500
KIM $1.88/$25.00 = 0.0750
KIP $2.80/$25.00 = 0.1120
KIP3 $1.79/$25.00 = 0.0717
KIP2 $1.05/$25.00 = 0.0420
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Berkshire Income Realty, Inc.
What have the current mortgage
funds paid?
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KRUPP GOVERNMENT INCOME TRUST
YIELD NET
INCOME FOR
PAST 4 10-YEAR
QUARTERLY AVERAGE QUART BASED US
DIST PER DISTRIBUTED RETURN OF NAV (PAST ON AVER TREASURY
DIST DATE UNIT/SHARE CASH FLOW CAPITAL 4 QUARTERS) NAV NOTE
- --------- ---------- ----------- --------- ----------- ----------- --------
2002 $ 0.74 $ 0.57 $ 0.23 $ 5.35 9.54% 3.88%
2001 $ 0.68 $ 0.59 $ 0.09 $ 8.54 6.91% 4.73%
2000 $ 0.68 $ 0.59 $ 0.09 $ 8.94 6.60% 5.89%
1999 $ 1.15 $ 0.68 $ 0.47 $ 9.94 6.79% 5.88%
1998 $ 1.30 $ 0.94 $ 0.37 $ 12.74 7.34% 5.20%
AVERAGE 7.44% 5.12%
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KRUPP GOVERNMENT INCOME TRUST II
YIELD NET
INCOME FOR
PAST 4 10-YEAR
QUARTERLY AVERAGE QUART BASED US
DIST PER DISTRIBUTED RETURN OF NAV (PAST ON AVER TREASURY
DIST DATE UNIT/SHARE CASH FLOW CAPITAL 4 QUARTERS) NAV NOTE
- --------- ---------- ----------- --------- ----------- ----------- --------
2002 $ 0.76 $ 0.60 $ 0.30 $ 7.31 8.21% 3.88%
2001 $ 0.96 $ 0.81 $ 0.15 $ 10.33 7.84% 4.73%
2000 $ 0.96 $ 0.84 $ 0.12 $ 11.16 7.53% 5.80%
1999 $ 1.25 $ 0.82 $ 0.43 $ 13.42 6.11% 5.88%
1998 $ 1.25 $ 1.00 $ 0.25 $ 14.45 6.92% 5.20%
AVERAGE 7.33% 5.12%
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KRUPP INSURED PLUS
YIELD NET
INCOME FOR
PAST 4 10-YEAR
QUARTERLY AVERAGE QUART BASED US
DIST PER DISTRIBUTED RETURN OF NAV (PAST ON AVER TREASURY
DIST DATE UNIT/SHARE CASH FLOW CAPITAL 4 QUARTERS) NAV NOTE
- --------- ---------- ----------- --------- ----------- ----------- --------
2002 $ 0.40 $ 0.22 $ 0.18 $ 3.27 6.73% 3.88%
2001 $ 0.40 $ 0.35 $ 0.05 $ 4.87 7.19% 4.73%
2000 $ 0.76 $ 0.41 $ 0.35 $ 5.53 7.41% 5.89%
1999 $ 0.76 $ 0.48 $ 0.28 $ 7.28 6.59% 5.88%
1998 $ 0.76 $ 0.59 $ 0.17 $ 7.89 7.48% 5.20%
AVERAGE 7.08% 5.12%
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KRUPP INSURED MORTGAGE
YIELD NET
INCOME FOR
PAST 4 10-YEAR
QUARTERLY AVERAGE QUART BASED US
DIST PER DISTRIBUTED RETURN OF NAV (PAST ON AVER TREASURY
DIST DATE UNIT/SHARE CASH FLOW CAPITAL 4 QUARTERS) NAV NOTE
- --------- ---------- ----------- --------- ----------- ----------- --------
2002 $ 0.30 $ 0.18 $ 0.12 $ 2.33 6.02% 3.88%
2001 $ 0.24 $ 0.17 $ 0.07 $ 2.78 6.13% 4.73%
2000 $ 0.39 $ 0.29 $ 0.10 $ 3.34 8.70% 5.80%
1999 $ 0.84 $ 0.57 $ 0.27 $ 7.15 7.97% 5.88%
1998 $ 0.93 $ 0.67 $ 0.26 $ 9.02 7.43% 5.20%
AVERAGE 7.25% 5.12%
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KRUPP INSURED PLUS III
YIELD NET
INCOME FOR
PAST 4 10-YEAR
QUARTERLY AVERAGE QUART BASED US
DIST PER DISTRIBUTED RETURN OF NAV (PAST ON AVER TREASURY
DIST DATE UNIT/SHARE CASH FLOW CAPITAL 4 QUARTERS) NAV NOTE
- --------- ---------- ----------- --------- ----------- ----------- --------
2002 $ 0.32 $ 0.17 $ 0.15 $ 2.29 7.44% 3.88%
2001 $ 0.32 $ 0.25 $ 0.07 $ 3.49 7.16% 4.73%
2000 $ 0.54 $ 0.27 $ 0.27 $ 3.83 7.05% 5.89%
1999 $ 0.76 $ 0.45 $ 0.31 $ 5.91 7.62% 5.88%
1998 $ 0.87 $ 0.78 $ 0.09 $ 9.30 8.39% 5.20%
AVERAGE 7.68% 5.12%
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KRUPP INSURED PLUS II
YIELD NET
INCOME FOR
PAST 4 10-YEAR
QUARTERLY AVERAGE QUART BASED US
DIST PER DISTRIBUTED RETURN OF NAV (PAST ON AVER TREASURY
DIST DATE UNIT/SHARE CASH FLOW CAPITAL 4 QUARTERS) NAV NOTE
- --------- ---------- ----------- --------- ----------- ----------- --------
2002 $ 0.20 $ 0.12 $ 0.08 $ 1.69 7.11% 3.88%
2001 $ 0.40 $ 0.17 $ 0.23 $ 2.57 6.63% 4.73%
2000 $ 0.40 $ 0.21 $ 0.19 $ 3.04 6.91% 5.89%
1999 $ 0.76 $ 0.47 $ 0.29 $ 5.15 9.14% 5.88%
1998 $ 1.12 $ 0.87 $ 0.25 $ 10.65 8.17% 5.20%
AVERAGE 7.59% 5.12%
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Berkshire Income Realty, Inc.
o 5 Year Average Yield
GIT 7.44%
GIT2 7.33%
KIP 7.08%
KIM 7.25%
KIP3 7.68%
KIP2 7.59%
o 10 Year Average Treasury Yield
5.12%
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Berkshire Income Realty, Inc.
Original Investment $20.00 per share/unit
Distributions received to date:
o GIT $25.00 per share
o GIT2 $20.20 per share
o KIP $27.66 per unit
o KIM $26.57 per unit
o KIP3 $27.71 per unit
o KIP2 $30.19 per unit
This includes all regular and special
distributions
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Berkshire Income Realty, Inc.
o Internal Rate of Return - o Internal Rate of Return -
All Cash DRP
o GIT = 5.42% o GIT = 6.57%
o GIT2 = 4.57% o GIT2 = 6.01%
o KIM = 5.38% o KIM = 5.38%
o KIP = 5.13% o KIP = 5.98%
o KIP3 = 5.82% o KIP3 = 6.07%
o KIP2 = 5.72% o KIP2 = 6.05%
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Mortgage Fund Distributions for 2003
o Distributions Annualized as of February 14, 2003
o GIT = $0.24 per share
o GIT2 = $0.56 per share
o KIP = $0.20 per unit
o KIM = $0.24 per unit*will be reduced to $0.16
per unit effective 5/14/03
o KIP3 = $0.16 per unit
o KIP2 = $0.20 per unit *fund ending by 3/31/03
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Berkshire Income Realty, Inc.
Why Should I Participate?????
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Berkshire Income Realty, Inc.
o 9% Preferred Return
o Greater Liquidity due to AMEX listing.
o Current Mortgage Fund is not allowed to reinvest the
proceeds from repayments of mortgage loans.
o Resulted in ever-decreasing distributions.
o Opportunity to exchange interests into a new REIT.
o Quarterly cash dividends
o Lower asset management fees
o No sales commission or transaction fees for the investor
o Simplified tax return preparation no K-1
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Berkshire Income Realty, Inc.
o What if I don't participate, what will happen?????
NOTHING
NOTHING
NOTHING
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Berkshire Income Realty, Inc.
o Investors will still own interests in current
mortgage fund
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What the investor needs to do
o Read the prospectus carefully
o Refer to the Letter of Transmittal
o Complete if information has changed since
December 31, 2002.
o Sign it
o Return to us in the envelope provided
o No stock certificate needs to be surrendered
nor will a stock certificate be issued.
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Letter of Transmittal- How to fill out form
o Box 1- YOUR TENDER - Check one box only. If
second box is checked they must insert number of
shares to be exchanged.
o Box 7-SIGNATURE TO TRANSMITTAL LETTER
(INCLUDING INVESTOR CERTIFICATIONS
AND SUBSTITUTE FORM W-9 IN SECTION
6). Just sign
o All investor information updated as of December 31,
2002 not September 30, 2002 as stated on form
o Any question you can't answer have them call us at
1-800-255-7877
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Phone Scripts
o Live contact phone script
o Answering machine phone script
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Phone Script - Live Version
Hello,
This is ___________, from Krupp Funds Group. I am
calling to see if you have received the package concerning
our new 9% preferred stock exchange offer.
(Wait for Response)
My main reason for calling today is to see if I may
answer any questions you have regarding this offer. Do
you have any questions that I can answer for you?
(Answer any Questions)
To accept the offer all you have to do after reading the
prospectus is to sign the Letter of Transmittal and return it
in the supplied envelope. If you have any later questions
please call us at 1-866-335-7877. Thank you and have a
nice day.
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Phone Scripts Disclaimer
o OPERATORS MUST NOT COMMENT ON
THE MERITS OF THE OFFERS, MUST
NOT ADVISE INTEREST HOLDERS
WHETHER TO ACCEPT OR NOT
ACCEPT THE OFFERS AND MUST NOT
PUT INTEREST HOLDERS UNDER ANY
PRESSURE. ALL INTEREST HOLDERS
MUST BE ENCOURAGED TO
CONSULT THEIR PROFESSIONAL
ADVISORS.
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Phone Script - Answering Machine Version
Hello,
This is __________, from Krupp Funds
Group. I am calling to see if you have received the
package concerning our new 9% preferred stock
exchange offer. My main reason for calling today
is to see if you have any questions regarding this
offer. If you haven't received the package or have
any questions please call us at 1-866-335-7877.
To accept the offer all you have to do after reading
the prospectus is sign the Letter of Transmittal and
return it in the supplied envelope. Thank you and
have a nice day.
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Berkshire Income Realty, Inc.
Questions
o __________________________________
o __________________________________
o __________________________________
o __________________________________
o __________________________________
o __________________________________
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Berkshire Income Realty, Inc.
o __________________________________
o __________________________________
o __________________________________
o __________________________________
o __________________________________
o __________________________________
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Summary
o A new investment opportunity
o Exchange interests in 6 mortgage funds
for a 9% Preferred Stock in a newly formed
Real Estate Investment Trust ("REIT")
o Higher & more predictable return than current funds
o Daily liquidity due
to AMEX listing
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Where to Get More Information
o Review package that was mailed to investors
Includes:
- Prospectus
- Brochure
- Cover letter
- Letter of Transmittal
- Letter of Instructions
- 14D-9 (Opinion of General Partner/Trustees)
- Return postage paid self - addressed envelope
o Georgeson employees call us at 1-800-255-7877.
o Investors call 1-866-335-7877.
o Direct investors to our website for further current fund info
o www.kruppfunds.com
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