2015 – Letter From the CEO

Carroll Organization had a very active year in 2015, capitalizing on opportunities to acquire new properties and exit some of our earlier investments.

Carroll Organization had a very active year in 2015, capitalizing on opportunities to acquire new properties and exit some of our earlier investments. A breakdown of our 2015 activity is as follows:

-Acquired 20 properties (6,201 units)

-Exited 4 properties ($120,000,000 in sales)

-Raised and Invested $350,000,000 in equity

We enter 2016 focused on a similar strategy; we will continue to make investments in multifamily assets that show clear potential for value creation, while producing strong cash flows for our investors. We will also look to sell properties where we believe completion of our business plans have created value that we can best capture through a current sale. We like this balanced strategy of identifying excellent acquisition opportunities at the same time we exit mature investments and realize attractive returns.

The fundamentals of the multifamily industry continue to be extremely favorable for new investments as we start the second quarter of 2016. Across our portfolio we are seeing strong performance, especially in submarkets that have seen little to no new construction. We will continue to target properties that we consider to be highly defensible due to barriers of entry for new construction and with attractive features such as proximity to excellent schools and employment centers, that we believe provide excellent risk adjusted returns.

The growth of our business has allowed us to continue to hire motivated and talented people. Carroll Organization now has over 600 employees, all focused on achieving excellence in:

-Identifying new acquisition opportunities

-Providing property management services for our communities and residents

-Providing asset management services for our investors

-Providing construction management services

-Financial reporting and investor relations

I am looking forward to another great year for our company, and for the multifamily industry.

Regards,

M. Patrick Carroll