In�estor Presentation: S�pport the Preferred Stock E�change Offer September 2020
F � � �a � d L � � k i � g S � a � e m e � � � a � d N� � - G A A P M e a � � � e � I� kee�i�g �i�h �he SEC'� "Safe Ha�b��" g�ideli�e�, ce��ai� ��a�eme��� made d��i�g �hi� ��e�e��a�i�� c��ld be c���ide�ed f���a�d-l��ki�g a�d ��bjec� �� ce��ai� �i�k� a�d ��ce��ai��ie� �ha� c��ld ca��e �e��l�� �� diffe� ma�e�iall� f��m �h��e ���jec�ed. Whe� �e ��e �he ���d� "�ill likel� �e��l�," "ma�," "a��ici�a�e," "e��ima�e," "�h��ld," "e��ec�," "belie�e," "i��e�d," �� �imila� e���e��i���, �e i��e�d �� ide��if� f���a�d-l��ki�g ��a�eme���. S�ch f���a�d-l��ki�g ��a�eme��� i�cl�de, b�� a�e ��� limi�ed ��, ��� b��i�e�� a�d i��e��me�� ���a�eg�, ��� ��de���a�di�g �f ��� c�m�e�i�i��, c���e�� ma�ke� ��e�d� a�d ��������i�ie�, ���jec�ed ��e�a�i�g �e��l��, a�d ���jec�ed ca�i�al e��e�di���e�. The�e f���a�d-l��ki�g ��a�eme��� a�e ��bjec� �� k���� a�d ��k���� �i�k� a�d ��ce��ai��ie�, �hich c��ld ca��e ac��al �e��l�� �� diffe� ma�e�iall� f��m �h��e a��ici�a�ed i�cl�di�g, �i�h��� limi�a�i��: ge�e�al ��la�ili�� �f �he ca�i�al ma�ke�� a�d �he ma�ke� ��ice �f ��� c�mm�� ���ck; cha�ge� i� ��� b��i�e�� �� i��e��me�� ���a�eg�; a�ailabili��, �e�m� a�d de�l��me�� �f ca�i�al; a�ailabili�� �f ��alified �e�����el; cha�ge� i� ��� i�d����� a�d �he ma�ke� i� �hich �e ��e�a�e, i��e�e�� �a�e� �� �he ge�e�al ec���m�, �he deg�ee a�d �a���e �f ��� c�m�e�i�i��, legi�la�i�e a�d �eg�la���� cha�ge�, i�cl�di�g cha�ge� �� �he I��e��al Re�e��e C�de �f 1986, a� ame�ded (�he �C�de�), a�d �ela�ed ��le�, �eg�la�i��� a�d i��e���e�a�i��� g��e��i�g �he �a�a�i�� �f REIT�; limi�a�i��� im���ed �� ��� b��i�e�� a�d ��� abili�� �� �a�i�f� c�m�le� ��le� i� ��de� f�� �� �� ��alif� a� a REIT f�� fede�al i�c�me �a� ������e�. The�e a�d ��he� �i�k fac���� a�e m��e f�ll� di�c���ed i� �he c�m�a��'� fili�g� �i�h �he Sec��i�ie� a�d E�cha�ge C�mmi��i��. EBITDA i� defi�ed a� �e� i�c�me bef��e i��e�e��, �a�e�, de��ecia�i�� a�d am���i�a�i��. EBITDA �ield i� defi�ed a� ��aili�g ��el�e m���h EBITDA di�ided b� �he ���cha�e ��ice �� deb� am����. U�le�� ��he��i�e ���ed, ca�i�ali�a�i�� �a�e i� de�e�mi�ed b� di�idi�g �he ����e���'� �e� ��e�a�i�g i�c�me b� �he ���cha�e ��ice. U�le�� ��he��i�e ���ed, �e� ��e�a�i�g i�c�me i� �he ����e���'� f��d� f��m ��e�a�i��� mi��� a ca�i�al e��e��e �e�e��e �f ei�he� 4% �� 5% �f g���� �e�e��e�. U�le�� ��he��i�e ���ed, h��el EBITDA fl��-�h���gh i� �he cha�ge i� H��el EBITDA di�ided b� �he cha�ge i� ���al �e�e��e�. EBITDA, FFO, AFFO, CAD a�d ��he� �e�m� a�e ���-GAAP mea���e� a�d, if ��ed i� �hi� ��e�e��a�i��, �ec��cilia�i��� ha�e bee� ����ided i� ��i�� ea��i�g� �elea�e� a�d fili�g� �i�h �he SEC �� i� �he a��e�di� �� �hi� ��e�e��a�i��. The calc�la�i�� �f im�lied e��i�� �al�e i� de�i�ed f��m a� e��ima�ed ble�ded ca�i�ali�a�i�� �a�e (�Ca� Ra�e�) f�� �he e��i�e ����f�li� ��i�g �he ca�i�ali�a�i�� �a�e me�h�d. The e��ima�ed Ca� Ra�e i� ba�ed �� �ece�� Ca� Ra�e� �f ��blicall� ��aded �ee�� i���l�i�g a �imila� ble�d �f a��e� ���e� f���d i� �he ����f�li�, �hich i� �he� a��lied �� Ne� O�e�a�i�g I�c�me (�NOI�) �f �he c�m�a���� a��e�� �� calc�la�e a T��al E��e���i�e Val�e (�TEV�) �f �he c�m�a��. F��m �he TEV, �e ded�c� deb� a�d ��efe��ed e��i�� a�d �he� add back ���ki�g ca�i�al a�d �he c�m�a���� i��e��me�� i� A�hf��d I�c. �� de�i�e a� e��i�� �al�e. The ca�i�ali�a�i�� �a�e me�h�d i� ��e �f �e�e�al �al�a�i�� me�h�d� f�� e��ima�i�g a��e� �al�e a�d im�lied e��i�� �al�e. Am��g �he limi�a�i��� �f ��i�g �he ca�i�ali�a�i�� �a�e me�h�d f�� de�e�mi�i�g a� im�lied e��i�� �al�e a�e �ha� i� d�e� ��� �ake i��� acc���� �he ���e��ial cha�ge �� �a�iabili�� i� f����e ca�h fl���, ���e��ial �ig�ifica�� f����e ca�i�al e��e�di���e�, �he i��e�ded h�ld �e�i�d �f �he a��e�, �� a cha�ge i� �he f����e �i�k ���file �f a� a��e�. Thi� ��e��ie� i� f�� i�f��ma�i��al ������e� ��l� a�d i� ��� a� �ffe� �� �ell, �� a ��lici�a�i�� �f a� �ffe� �� b�� �� �ell, a�� �ec��i�ie� �f A�hf��d H���i�ali�� T���� I�c. �� a�� �f i�� �e��ec�i�e affilia�e�, a�d ma� ��� be �elied ���� i� c���ec�i�� �i�h �he ���cha�e �� �ale �f a�� ��ch �ec��i��. 2
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