Exhibit

For the three and nine months ended September 30, 2019, the Company had total revenues of $27.8 million and $88.2 million compared to $36.2 million and $105.8 million for the three and nine months ended September 30, 2018. Net (loss) income was $(5.6) million and $72.3 million for the three and nine months ended September 30, 2019, compared to net (loss) income of $(6.5) million and $58.9 million for the three and nine months ended September 30, 2018. Total assets of the Company at September 30, 2019, were $851.4 million, compared to $1.02 billion at December 31, 2018.

On August 5, 2019, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Steadfast Apartment REIT, Inc. (“STAR”), Steadfast Apartment REIT Operating Partnership, L.P., STAR’s operating partnership, the Company’s operating partnership, and SI Subsidiary, LLC, a wholly-owned subsidiary of STAR (“Merger Sub”). Subject to the terms and conditions of the Merger Agreement, the Company will merge with and into Merger Sub (the “Merger”), with Merger Sub surviving the Merger, such that following the Merger, the surviving entity will continue as a wholly-owned subsidiary of STAR. For additional information on the proposed Merger, see Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on August 6, 2019.

“Many people wonder if the new construction they hear about in the multifamily space means we face an oversupply that could impact market fundamentals,” said Ella Neyland, President of Steadfast Income REIT. “However, high supply is not necessarily a bad sign if there is enough demand to meet it. According to a recent Freddie Mac mid-year report, while construction remains elevated, the majority of metro areas are expected to see vacancy rates remain below the long-run average contributing to a favorable multifamily outlook through the rest of this year and into the next.”

In connection with the proposed Merger, STAR, has prepared and filed with the SEC a registration statement on Form S-4 containing a proxy statement/prospectus jointly prepared by STAR and the Company and other related documents. The registration statement on Form S-4 has not been declared effective by the SEC. The proxy statement/prospectus will contain important information about the proposed merger and related matters. INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO) AND OTHER RELEVANT DOCUMENTS FILED BY THE COMPANY AND STAR, AS APPLICABLE, WITH THE SEC CAREFULLY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, STAR AND THE PROPOSED MERGER. Investors and stockholders of STAR and the Company may obtain free copies of the registration statement, the proxy statement/prospectus and other relevant documents filed by the Company and STAR, with the SEC (if and when they become available) through the website maintained by the SEC at www.sec.gov. Copies of the documents filed by STAR and the Company with the SEC are also available free of charge on the Company’s website at www.steadfastreits.com.

The Company and STAR and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the Company’s stockholders in respect of the proposed merger. Information regarding STAR’s directors and executive officers can be found in STAR’s most recent Annual Report on Form 10-K filed on March 14, 2019. Information regarding the Company’s directors and executive officers can be found in the Company’s most recent Annual Report on Form 10-K filed on March 15, 2019. Additional information regarding the interests of such potential participants will be included in the joint proxy statement/prospectus and other relevant documents filed with the SEC in connection with the proposed Mergers if and when they become available. These documents are available free of charge on the SEC’s website and from the Company or STAR, as applicable, using the sources indicated above.

This release contains statements that constitute “forward-looking statements,” as such term is defined in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are intended to be covered by the safe harbor provided by the same. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements; the Company can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company’s expectations include, but are not limited to, the risk that the proposed mergers will not be consummated within the expected time period or at all; the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreements; the inability to obtain the Company's stockholder approval or the failure to satisfy the other conditions to completion of the proposed mergers; risks related to disruption of management’s attention from the ongoing business operations due to the proposed mergers; availability of suitable investment opportunities; changes in interest rates; the availability and terms of financing; general economic conditions; market conditions; legislative and regulatory changes that could adversely affect the business of the Company or STAR; and other factors, including those set forth in the Risk Factors section of the Company’s most recent Annual Report on Form 10-K filed with the SEC, and other reports filed by the Company with the SEC, copies of which are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.



	September 30, 2019			December 31, 2018
	(Unaudited)
ASSETS
Assets:
Real Estate:
Land	$	89,822,014		$	90,153,980
Building and improvements	804,194,436			795,383,423
Total real estate held for investment, cost	894,016,450			885,537,403
Less accumulated depreciation and amortization	(190,527,296		)	(165,112,070		)
Total real estate held for investment, net	703,489,154			720,425,333
Real estate held for sale, net	—			126,464,504
Total real estate, net	703,489,154			846,889,837
Cash and cash equivalents	120,202,920			142,078,166
Restricted cash	9,362,825			11,265,317
Investment in unconsolidated joint venture	13,316,283			14,085,399
Rents and other receivables	2,501,546			1,791,881
Assets related to real estate held for sale	—			848,960
Other assets	2,496,144			2,698,438
Total assets	$	851,368,872		$	1,019,657,998
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Accounts payable and accrued liabilities	$	20,356,476		$	23,899,595
Notes payable:
Mortgage notes payable, net	498,426,493			566,900,461
Credit facility, net	—			52,363,460
Mortgage notes payable related to real estate held for sale, net	—			74,237,653
Total notes payable, net	498,426,493			693,501,574
Distributions payable	3,371,492			3,515,310
Due to affiliates	1,645,472			4,985,918
Liabilities related to real estate held for sale	—			2,994,267
Total liabilities	523,799,933			728,896,664
Commitments and contingencies
Redeemable common stock	1,289,113			—
Stockholders’ Equity:
Preferred stock, $0.01 par value per share; 100,000,000 shares authorized, no shares issued and outstanding	—			—
Common stock $0.01 par value per share; 999,999,000 shares authorized, 73,983,866 and 74,650,139 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively	739,839			746,502
Convertible stock, $0.01 par value per share; 1,000 shares authorized, issued and outstanding as of September 30, 2019 and December 31, 2018, respectively	10			10
Additional paid-in capital	650,253,927			656,204,073
Cumulative distributions and net losses	(324,713,950		)	(366,189,251		)
Total stockholders’ equity	326,279,826			290,761,334
Total liabilities and stockholders’ equity	$	851,368,872		$	1,019,657,998



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Revenues:
Rental income	$	26,857,176		$	35,421,095		$	84,948,693		$	102,999,303
Other income	966,375			820,623			3,218,233			2,754,349
Total revenues	27,823,551			36,241,718			88,166,926			105,753,652
Expenses:
Operating, maintenance and management	6,871,764			10,457,331			21,720,715			28,936,191
Real estate taxes and insurance	4,031,558			5,657,098			13,376,128			18,329,576
Fees to affiliates	3,934,709			4,113,139			11,083,920			11,854,429
Depreciation and amortization	8,520,813			12,579,032			25,961,590			34,781,722
Interest expense	6,044,495			8,496,658			20,505,685			24,408,327
Loss on debt extinguishment	597,681			—			3,432,058			2,282,247
General and administrative expenses	3,063,653			1,107,644			6,181,745			4,448,377
Total expenses	33,064,673			42,410,902			102,261,841			125,040,869
Loss before other income (expense)	(5,241,122		)	(6,169,184		)	(14,094,915		)	(19,287,217		)
Other income (expense):
Equity in loss from unconsolidated joint venture	(228,667		)	(287,540		)	(427,816		)	(3,102,044		)
(Loss) gain on sales of real estate, net	(88,137		)	—			86,800,659			81,247,054
Total other income (expense)	(316,804		)	(287,540		)	86,372,843			78,145,010
Net (loss) income	$	(5,557,926	)	$	(6,456,724	)	$	72,277,928		$	58,857,793
(Loss) income per common share — basic and diluted	$	(0.08	)	$	(0.09	)	$	0.97		$	0.78
Weighted average number of common shares outstanding — basic	74,051,096			74,928,285			74,273,151			75,164,006
Weighted average number of common shares outstanding — diluted	74,056,721			74,940,350			74,278,776			75,176,774

Due to certain unique operating characteristics of real estate companies, as discussed below, National Association of Real Estate Investment Trusts ("NAREIT"), an industry trade group, has promulgated a measure known as funds from operations, ("FFO"), which the Company believes to be an appropriate supplemental measure to reflect the operating performance of a real estate investment trust ("REIT"). The use of FFO is recommended by the REIT industry as a supplemental performance measure. FFO is not equivalent to the Company's net income (loss) as determined under U.S. Generally Accepted Accounting Principals ("GAAP").

The Company defines FFO, a non-GAAP financial measure, consistent with the standards established by the White Paper on FFO approved by the Board of Governors of NAREIT, as revised in December 2018 (the "White Paper"). The White Paper defines FFO as net income (loss) computed in accordance with GAAP, excluding gains or losses from sales of property and non-cash impairment charges of real estate related investments, plus real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. In particular, the Company believes it is appropriate to disregard impairment charges, as this is a fair value adjustment that is largely based on market fluctuations and assessments regarding general market conditions which can change over time. An asset will only be evaluated for impairment if certain impairment indications exist and if the carrying, or book value, exceeds the total estimated undiscounted future cash flows (including net rental and lease revenues, net proceeds on the sale of the property, and any other ancillary cash flows at a property or group level under GAAP) from such asset. Investors should note, however, that determinations of whether impairment charges have been incurred are based partly on anticipated operating performance, because estimated undiscounted future cash flows from a property, including estimated future net rental and lease revenues, net proceeds on the sale of the property, and certain other ancillary cash flows, are taken into account in determining whether an impairment charge has been incurred. While impairment charges are excluded from the calculation of FFO as described above, investors are cautioned that due to the fact that impairments are based on estimated future undiscounted cash flows and the relatively limited term of the Company's operations, it could be difficult to recover any impairment charges. The Company's FFO calculation complies with NAREIT’s policy described above.

The historical accounting convention used for real estate assets requires straight-line depreciation of buildings and improvements, which implies that the value of real estate assets diminishes predictably over time, especially if such assets are not adequately maintained or repaired and renovated as required by relevant circumstances and/or as requested or required by lessees for operational purposes in order to maintain the value disclosed. The Company believes that since real estate values historically rise and fall with market conditions, including inflation, interest rates, the business cycle, unemployment and consumer spending, presentations of operating results for a REIT using historical accounting for depreciation may be less informative. Historical accounting for real estate involves the use of GAAP. Any other method of accounting for real estate such as the fair value method cannot be construed to be any more accurate or relevant than the comparable methodologies of real estate valuation found in GAAP. Nevertheless, the Company believes that the use of FFO, which excludes the impact of real estate related depreciation and amortization, provides a more complete understanding of its performance to investors and to management, and when compared year over year, reflects the impact on its operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses, and interest costs, which may not be immediately apparent from net income. We adopted ASU 2016-02, Leases, or ASU 2016-02, on January 1, 2019, which requires the Company, as a lessee, to recognize a liability for obligations under a lease contract and a right-of-use asset. The carrying amount of the right-of-use asset is amortized over the term of the lease. Because the Company has no ownership rights (current or residual) in the underlying asset, NAREIT concluded that the amortization of the right-of-use asset should not be added back to GAAP net income (loss) in

calculating FFO. This amortization expense is included in FFO. However, FFO, and modified funds from operations, ("MFFO"), as described below, should not be construed to be more relevant or accurate than the current GAAP methodology in calculating net income or in its applicability in evaluating the Company's operating performance. The method utilized to evaluate the value and performance of real estate under GAAP should be construed as a more relevant measure of operational performance and considered more prominently than the non-GAAP FFO and MFFO measures and the adjustments to GAAP in calculating FFO and MFFO.

Changes in the accounting and reporting promulgations under GAAP (for acquisition fees and expenses from a capitalization/depreciation model to an expensed-as-incurred model) that were put into effect in 2009 and other changes to GAAP accounting for real estate subsequent to the establishment of NAREIT’s definition of FFO have prompted an increase in cash-settled expenses, specifically acquisition fees and expenses for all industries as items that are expensed under GAAP, that are typically accounted for as operating expenses. The Company's management believes these fees and expenses do not affect the Company's overall long-term operating performance. Publicly registered, non-listed REITs typically have a significant amount of acquisition activity and are substantially more dynamic during their initial years of investment and operation. While other start-up entities may also experience significant acquisition activity during their initial years, the Company believes that public, non-listed REITs, like the Company, are unique in that they have a limited life with targeted exit strategies within a relatively limited time frame after acquisition activity ceases.

Due to the above factors and other unique features of publicly registered, non-listed REITs, the Institute for Portfolio Alternatives (the "IPA"), an industry trade group, has standardized a measure known as MFFO, which it has recommended as a supplemental measure for publicly registered non-listed REITs and which the Company believes to be another appropriate supplemental measure to reflect the operating performance of a public, non-listed REIT having the characteristics described above. MFFO is not equivalent to the Company's net income (loss) as determined under GAAP, and MFFO may not be a useful measure of the impact of long-term operating performance on value if the Company does not continue to operate with a limited life and targeted exit strategy, as currently intended. The Company believes that, because MFFO excludes costs that it considers more reflective of investing activities and other non-operating items included in FFO and also excludes acquisition fees and expenses that are not capitalized, as discussed below, and affects its operations only in periods in which properties are acquired, MFFO can provide, on a going forward basis, an indication of the sustainability (that is, the capacity to continue to be maintained) of its operating performance after the period in which it is acquiring properties and once its portfolio is in place. By providing MFFO, the Company believes it is presenting useful information that assists investors and analysts to better assess the sustainability of its operating performance after its offering has been completed and its properties have been acquired. The Company also believes that MFFO is a recognized measure of sustainable operating performance by the non-listed REIT industry. Further, the Company believes MFFO is useful in comparing the sustainability of its operating performance after its offering and acquisitions are completed with the sustainability of the operating performance of other real estate companies that are not as involved in acquisition activities. Investors are cautioned that MFFO should only be used to assess the sustainability of the Company's operating performance after its offering has been completed and properties have been acquired, as it excludes acquisition costs that have a negative effect on the Company's operating performance during the periods in which properties are acquired.

The Company defines MFFO, a non-GAAP financial measure, consistent with the IPA’s Guideline 2010-01, Supplemental Performance Measure for Publicly Registered, Non-Listed REITs: Modified Funds from Operations (the "Practice Guideline"), issued by the IPA in November 2010. The Practice Guideline defines MFFO as FFO further adjusted for the following items, as applicable, included in the determination of GAAP net income: acquisition fees and expenses; amounts relating to deferred rent receivables and amortization of above and below market leases and liabilities (which are adjusted in order to reflect such

payments from a GAAP accrual basis to a cash basis of disclosing the rent and lease payments); accretion of discounts and amortization of premiums on debt investments; mark-to-market adjustments included in net income; nonrecurring gains or losses included in net income from the extinguishment or sale of debt, hedges, foreign exchange, derivatives or securities holdings where trading of such holdings is not a fundamental attribute of the business plan, unrealized gains or losses resulting from consolidation from, or deconsolidation to, equity accounting, and after adjustments for consolidated and unconsolidated partnerships and joint ventures, with such adjustments calculated to reflect MFFO on the same basis. The accretion of discounts and amortization of premiums on debt investments, nonrecurring unrealized gains and losses on hedges, foreign exchange, derivatives or securities holdings, unrealized gains and losses resulting from consolidations, as well as other listed cash flow adjustments are adjustments made to net income in calculating the cash flows provided by operating activities and, in some cases, reflect gains or losses which are unrealized and may not ultimately be realized. While the Company relies on its advisor for managing interest rate, hedge and foreign exchange risk, the Company does not retain an outside consultant to review all of its hedging agreements. Inasmuch as interest rate hedges are not a fundamental part of the Company's operations, the Company believes it is appropriate to exclude such non-recurring gains and losses in calculating MFFO, as such gains and losses are not reflective of on-going operations.

The Company's MFFO calculation complies with the IPA’s Practice Guideline described above, except with respect to certain acquisition fees and expenses as discussed below. In calculating MFFO, the Company excludes acquisition related expenses that are not capitalized, amortization of above and below market leases, fair value adjustments of derivative financial instruments, deferred rent receivables and the adjustments of such items related to noncontrolling interests. Historically, under GAAP, acquisition fees and expenses were characterized as operating expenses in determining operating net income. However, following the publication of ASU 2017-01, Business Combinations (Topic 805): Clarifying the definition of business, or ASU 2017-01), which now forms part of ASC 805 Business Combinations, or ASC 805, acquisition fees and expenses are capitalized and depreciated under certain conditions. These expenses are paid in cash by the Company. All paid and accrued acquisition fees and expenses will have negative effects on returns to investors, the potential for future distributions, and cash flows generated by the Company, unless earnings from operations or net sales proceeds from the disposition of other properties are generated to cover the purchase price of the property, these fees and expenses and other costs related to such property. In the event that operational earnings and cash flow are not available to fund the reimbursement of acquisition fees and expenses incurred by the Company's advisor, such fees and expenses will need to be reimbursed to the advisor from other sources, including debt, net proceeds from the sale of properties, or from ancillary cash flows. The acquisition of properties, and the corresponding acquisition fees and expenses, is the key operational feature of the Company's business plan to generate operational income and cash flow to fund distributions to the Company's stockholders. Further, under GAAP, certain contemplated non-cash fair value and other non-cash adjustments are considered operating non-cash adjustments to net income in determining cash flow from operating activities. In addition, the Company views fair value adjustments of derivatives and gains and losses from dispositions of assets as non-recurring items or items which are unrealized and may not ultimately be realized, and which are not reflective of on-going operations and are therefore typically adjusted for when assessing operating performance.

The Company's management uses MFFO and the adjustments used to calculate MFFO in order to evaluate the Company's performance against other public, non-listed REITs which have limited lives with short and defined acquisition periods and targeted exit strategies shortly thereafter. As noted above, MFFO may not be a useful measure of the impact of long-term operating performance on value if the Company does not continue to operate in this manner. The Company believes that its use of MFFO and the adjustments used to calculate MFFO allow the Company to present its performance in a manner that reflects certain characteristics that are unique to public, non-listed REITs, such as their limited life, limited and defined acquisition

period and targeted exit strategy, and hence that the use of such measures is useful to investors. By excluding expensed acquisition costs that are not capitalized, the use of MFFO provides information consistent with the Company's management's analysis of the operating performance of the properties. Additionally, fair value adjustments, which are based on the impact of current market fluctuations and underlying assessments of general market conditions, but can also result from operational factors such as rental and occupancy rates, may not be directly related or attributable to the Company's current operating performance. By excluding such changes that may reflect anticipated and unrealized gains or losses, the Company believes MFFO provides useful supplemental information.

Presentation of this information is intended to provide useful information to investors as they compare the operating performance to that of other public, non-listed REITs, although it should be noted that not all public, non-listed REITs calculate FFO and MFFO the same way, so comparisons with other public, non-listed REITs may not be meaningful. Furthermore, FFO and MFFO are not necessarily indicative of cash flow available to fund cash needs and should not be considered as an alternative to net income (loss) or income (loss) from continuing operations as an indication of the Company's performance, as an alternative to cash flows from operations as an indication of the Company's liquidity, or indicative of funds available to fund the Company's cash needs, including the Company's ability to make distributions to stockholders. FFO and MFFO should be reviewed in conjunction with GAAP measurements as an indication of the Company's performance. MFFO is useful in assisting the Company's management and investors in assessing the sustainability of operating performance in future operating periods, and in particular, after the offering and acquisition stages are complete and net asset value is disclosed. MFFO is not a useful measure in evaluating net asset value because impairments are taken into account in determining net asset value but not in determining MFFO.



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
Reconciliation of net (loss) income to MFFO:	2019			2018			2019			2018
Net (loss) income	$	(5,557,926	)	$	(6,456,724	)	$	72,277,928		$	58,857,793
Depreciation of real estate assets	8,519,728			11,657,288			25,945,678			33,498,945
Amortization of lease-related costs⁽¹⁾	—			921,744			12,764			1,282,777
Loss (gain) on sales of real estate, net	88,137			—			(86,800,659		)	(81,247,054		)
Adjustments for investment in unconsolidated joint venture⁽²⁾	645,394			648,524			1,754,743			4,215,228
FFO	3,695,333			6,770,832			13,190,454			16,607,689
Acquisition expenses⁽³⁾⁽⁴⁾	—			13,641			—			314,774
Unrealized loss (gain) on derivative instruments	2,066			(18,199		)	163,363			(103,506		)
Loss on debt extinguishment	597,681			—			3,432,058			2,282,247
MFFO	$	4,295,080		$	6,766,274		$	16,785,875		$	19,101,204

Net Operating Income ("NOI") is a non-GAAP financial measure of performance. NOI is used by investors and the Company's management to evaluate and compare the performance of the Company's properties and to determine trends in earnings and to compute the fair value of the Company's properties as it is not affected by (1) the cost of funds of the Company, (2) acquisition costs of the Company, (3) non-operating fees paid to affiliates, (4) the impact of depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets that are included in net income computed in accordance with GAAP, or (5) general and administrative expenses and other gains and losses that are specific to the Company. The cost of funds is eliminated from net income (loss) because it is specific to the Company's particular financing capabilities and constraints. The cost of funds is also eliminated because it is dependent on historical interest rates and other costs of capital as well as past decisions made by the Company regarding the appropriate mix of capital which may have changed or may change in the future. Acquisition costs (those that did not meet the criteria for capitalization under ASC 805) and non-operating fees to affiliates are eliminated because they do not reflect continuing operating costs of the property owner. Depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets are eliminated because they may not accurately represent the actual change in value in the Company's multifamily properties that result from use of the properties or changes in market conditions. While certain aspects of real property do decline in value over time in a manner that is reasonably captured by depreciation and amortization, the value of the properties as a whole have historically increased or decreased as a result of changes in overall economic conditions instead of from actual use of the property or the passage of time. Gains and losses from the sale of real property vary from property to property and are affected by market conditions at the time of sale which will usually change from period to period. These gains and losses can create distortions when comparing one period to another or when comparing the Company's operating results to the operating results of other real estate companies that have not made similarly timed purchases or sales. The Company believes that eliminating these costs from net income (loss) is useful because the resulting measure captures the actual revenue generated and actual expenses incurred in operating its properties as well as trends in occupancy rates, rental rates and operating costs.

However, the usefulness of NOI is limited because it excludes general and administrative costs, interest expense, interest income and other expense, acquisition costs (those that did not meet the criteria for capitalization under ASC 805), certain fees to affiliates, depreciation and amortization expense and gains or losses from the sale of properties, and other gains and losses as stipulated by GAAP, the level of capital expenditures and leasing costs necessary to maintain the operating performance of the Company's properties, all of which are significant economic costs. NOI may fail to capture significant trends in these components of net income which further limits its usefulness.

NOI is a measure of the operating performance of the Company's properties but does not measure the Company's performance as a whole. NOI is therefore not a substitute for net income (loss) as computed in accordance with GAAP. This measure should be analyzed in conjunction with net income (loss) computed in accordance with GAAP. Other companies may use different methods for calculating NOI or similarly entitled measures and, accordingly, the Company's NOI may not be comparable to similarly entitled measures reported by other companies that do not define the measure exactly as the Company does.



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2019			2018			2019			2018
Net (loss) income	$	(5,557,926	)	$	(6,456,724	)	$	72,277,928		$	58,857,793
Fees to affiliates⁽¹⁾	2,573,063			2,603,225			6,876,766			7,731,826
Depreciation and amortization	8,520,813			12,579,032			25,961,590			34,781,722
Interest expense	6,044,495			8,496,658			20,505,685			24,408,327
Loss on debt extinguishment	597,681			—			3,432,058			2,282,247
General and administrative expenses	3,063,653			1,107,644			6,181,745			4,448,377
Loss (gain) on sales of real estate, net	88,137			—			(86,800,659		)	(81,247,054		)
Adjustments for investment in unconsolidated joint venture⁽²⁾	1,010,364			1,001,590			2,673,741			5,236,092
Other gains⁽³⁾	(567,806		)	(390,943		)	(1,916,260		)	(1,260,850		)
Net operating income	$	15,772,474		$	18,940,482		$	49,192,594		$	55,238,480





Monthly Portfolio Snapshot	\|	JULY 2019

Property		Location	Total Units	Non-Revenue Units	Rentable Units	Average Occupied Units	Average % Occupied	% Leased
Multi-Family
Clarion Park Apartments		Olathe, KS	220	1	219	213	97.0%	99.1%
Spring Creek Apartments		Edmond, OK	252	1	251	241	95.7%	97.3%
Montclair Parc Apartment Homes		Oklahoma City, OK	360	1	359	343	95.2%	97.3%
Hilliard Park Apartments		Columbus, OH	201	1	200	193	96.1%	99.4%
Sycamore Terrace Apartments		Terre Haute, IN	250	—	250	224	89.6%	94.0%
Hilliard Summit Apartments		Columbus, OH	208	1	207	197	94.5%	97.9%
Forty 57 Apartments		Lexington, KY	436	1	435	421	96.6%	98.8%
Riverford Crossing Apartments		Frankfort, KY	300	1	299	286	95.4%	97.8%
Montecito Apartments		Austin, TX	268	3	265	256	95.7%	97.4%
Hilliard Grand Apartments		Dublin, OH	314	1	313	306	97.4%	99.0%
Deep Deuce at Bricktown		Oklahoma City, OK	294	1	293	283	96.3%	98.2%
Retreat at Quail North		Oklahoma City, OK	240	1	239	227	94.8%	95.8%
Tapestry Park Apartments		Birmingham, AL	354	1	353	332	93.7%	96.4%
Bricegrove Park Apartments		Canal Winchester, OH	240	—	240	228	94.9%	98.6%
Retreat at Hamburg Place		Lexington, KY	150	1	149	143	95.0%	98.2%
Villas at Huffmeister		Houston, TX	294	1	293	280	95.1%	96.7%
Villas at Kingwood		Kingwood, TX	330	1	329	315	95.5%	97.2%
Waterford Place at Riata Ranch		Cypress, TX	228	1	227	220	96.6%	98.4%
Carrington Place		Houston, TX	324	1	323	306	94.4%	96.4%
Carrington at Champion Forest		Houston, TX	284	1	283	268	94.2%	97.1%
Carrington Park at Huffmeister		Cypress, TX	232	1	231	216	93.3%	97.2%
Heritage Grand at Sienna Plantation		Missouri City, TX	240	1	239	229	95.3%	96.7%
Mallard Crossing Apartments		Loveland, OH	350	1	349	337	96.3%	97.2%
Reserve at Creekside		Chattanooga, TN	192	1	191	186	96.9%	98.0%
Oak Crossing Apartments		Fort Wayne, IN	222	1	221	216	97.1%	98.8%
Double Creek Flats		Plainfield, IN	240	1	239	224	93.4%	94.9%
Jefferson at Perimeter Apartments		Dunwoody, GA	504	—	504	471	93.5%	97.3%
Total			7,527	26	7,501	7,161	95.1%	97.4%





Monthly Portfolio Snapshot	\|	AUGUST 2019

Property		Location	Total Units	Non-Revenue Units	Rentable Units	Average Occupied Units	Average % Occupied	% Leased
Multi-Family
Clarion Park Apartments		Olathe, KS	220	1	219	211	96.0%	98.3%
Spring Creek Apartments		Edmond, OK	252	1	251	245	97.3%	98.6%
Montclair Parc Apartment Homes		Oklahoma City, OK	360	1	359	349	97.0%	98.3%
Hilliard Park Apartments		Columbus, OH	201	1	200	194	96.5%	99.0%
Sycamore Terrace Apartments		Terre Haute, IN	250	—	250	228	91.4%	94.3%
Hilliard Summit Apartments		Columbus, OH	208	1	207	197	94.6%	97.7%
Forty 57 Apartments		Lexington, KY	436	1	435	420	96.3%	97.7%
Riverford Crossing Apartments		Frankfort, KY	300	1	299	292	97.3%	98.6%
Montecito Apartments		Austin, TX	268	2	266	259	96.7%	98.1%
Hilliard Grand Apartments		Dublin, OH	314	—	314	304	96.9%	98.8%
Deep Deuce at Bricktown		Oklahoma City, OK	294	1	293	283	96.1%	97.5%
Retreat at Quail North		Oklahoma City, OK	240	1	239	230	95.7%	97.5%
Tapestry Park Apartments		Birmingham, AL	354	1	353	334	94.4%	96.6%
Bricegrove Park Apartments		Canal Winchester, OH	240	—	240	227	94.5%	98.6%
Retreat at Hamburg Place		Lexington, KY	150	1	149	146	97.2%	98.1%
Villas at Huffmeister		Houston, TX	294	1	293	281	95.7%	97.8%
Villas at Kingwood		Kingwood, TX	330	1	329	320	97.0%	98.7%
Waterford Place at Riata Ranch		Cypress, TX	228	1	227	221	97.1%	98.1%
Carrington Place		Houston, TX	324	1	323	309	95.2%	97.1%
Carrington at Champion Forest		Houston, TX	284	1	283	269	94.8%	97.0%
Carrington Park at Huffmeister		Cypress, TX	232	1	231	224	96.4%	98.5%
Heritage Grand at Sienna Plantation		Missouri City, TX	240	1	239	224	93.3%	95.2%
Mallard Crossing Apartments		Loveland, OH	350	1	349	338	96.7%	97.3%
Reserve at Creekside		Chattanooga, TN	192	1	191	185	96.3%	97.8%
Oak Crossing Apartments		Fort Wayne, IN	222	1	221	214	96.4%	97.5%
Double Creek Flats		Plainfield, IN	240	1	239	229	95.5%	96.1%
Jefferson at Perimeter Apartments		Dunwoody, GA	504	—	504	473	93.8%	97.5%
Total			7,527	24	7,503	7,206	95.7%	97.6%





Monthly Portfolio Snapshot	\|	SEPTEMBER 2019

Property		Location	Total Units	Non-Revenue Units	Rentable Units	Average Occupied Units	Average % Occupied	% Leased
Multi-Family
Clarion Park Apartments		Olathe, KS	220	1	219	211	95.7%	98.4%
Spring Creek Apartments		Edmond, OK	252	1	251	246	97.4%	98.2%
Montclair Parc Apartment Homes		Oklahoma City, OK	360	1	359	348	96.8%	97.8%
Hilliard Park Apartments		Columbus, OH	201	1	200	193	96.2%	98.6%
Sycamore Terrace Apartments		Terre Haute, IN	250	1	249	233	93.1%	95.1%
Hilliard Summit Apartments		Columbus, OH	208	1	207	198	95.3%	97.2%
Forty 57 Apartments		Lexington, KY	436	1	435	420	96.3%	97.8%
Riverford Crossing Apartments		Frankfort, KY	300	1	299	291	96.9%	98.8%
Montecito Apartments		Austin, TX	268	2	266	259	96.7%	97.5%
Hilliard Grand Apartments		Dublin, OH	314	—	314	302	96.1%	97.8%
Deep Deuce at Bricktown		Oklahoma City, OK	294	1	293	278	94.6%	96.4%
Retreat at Quail North		Oklahoma City, OK	240	1	239	226	94.4%	95.7%
Tapestry Park Apartments		Birmingham, AL	354	1	353	339	95.6%	97.5%
Bricegrove Park Apartments		Canal Winchester, OH	240	—	240	229	95.6%	99.0%
Retreat at Hamburg Place		Lexington, KY	150	1	149	145	97.0%	98.4%
Villas at Huffmeister		Houston, TX	294	1	293	281	95.4%	97.0%
Villas at Kingwood		Kingwood, TX	330	1	329	320	96.9%	98.5%
Waterford Place at Riata Ranch		Cypress, TX	228	1	227	220	96.3%	97.3%
Carrington Place		Houston, TX	324	1	323	306	94.3%	96.8%
Carrington at Champion Forest		Houston, TX	284	1	283	271	95.6%	98.3%
Carrington Park at Huffmeister		Cypress, TX	232	1	231	221	95.3%	97.1%
Heritage Grand at Sienna Plantation		Missouri City, TX	240	1	239	224	93.4%	95.4%
Mallard Crossing Apartments		Loveland, OH	350	1	349	336	96.1%	97.0%
Reserve at Creekside		Chattanooga, TN	192	1	191	187	97.2%	98.4%
Oak Crossing Apartments		Fort Wayne, IN	222	1	221	216	97.2%	98.3%
Double Creek Flats		Plainfield, IN	240	1	239	231	96.3%	97.7%
Jefferson at Perimeter Apartments		Dunwoody, GA	504	—	504	477	94.6%	97.0%
Total			7,527	25	7,502	7,208	95.8%	97.5%



		18100 Von Karman Avenue Suite 500 Irvine, CA 92612 949.852.0700


•	Sold eight multifamily properties with a total of 1,915 apartment homes during the nine months ended September 30, 2019, and recognized a gain on sale of $86.8 million.


•	Owned as of September 30, 2019, (1) a multifamily property portfolio of 27 properties comprised of a total of 7,527 apartment homes with an aggregate purchase price of $862.9 million and (2) a 10% ownership interest in a joint venture.


•	Had $498.4 million of fixed rate debt with a weighted-average interest rate of 3.75% as of September 30, 2019. As of September 30, 2019, the Company had no outstanding variable rate debt instruments.


•	Funded $9.4 million for improvements to real estate investments for the nine months ended September 30, 2019, compared to $6.8 million for the nine months ended September 30, 2018.


•	Reported net cash provided by operating activities of $8.3 million for the nine months ended September 30, 2019, compared to $20.0 million for the nine months ended September 30, 2018. Net cash provided by investing activities was $203.2 million for the nine months ended September 30, 2019, compared to $98.4 million for the nine months ended September 30, 2018.


•	Reported net cash used in financing activities of $236.1 million for the nine months ended September 30, 2019, which included $30.9 million of distributions paid, all of which were paid in cash. Net cash used in financing activities was $210.6 million for the nine months ended September 30, 2018, which included $111.8 million of distributions paid, all of which were paid in cash.


•	Received $222.9 million of proceeds from mortgage notes payable related to the refinancing of a portion of the Company's outstanding debt and made principal payments of $365.1 for mortgage notes payable during the nine months ended September 30, 2019.


(1)	Amortization of lease-related costs for the three and nine months ended September 30, 2019, excludes amortization of operating lease right-of-use assets of $1,085 and $3,148 that are included in FFO, respectively. There was no amortization of operating lease right-of-use assets during the three and nine months ended September 30, 2018.


(2)	Reflects adjustments to add back the Company's noncontrolling interest share of the adjustments to reconcile the Company's net income attributable to common stockholders to FFO for the Company's equity investment in the unconsolidated joint venture, which principally consists of depreciation and amortization incurred by the joint venture.


Contact:	Jennifer Franklin


Phone:	949.333.1721


Email:	jfranklin@Stiracmg.com


Average Percent Occupied:	Percent of units occupied (Average Occupied Units divided by Total Units).


(3)	Other gains for the three and nine months ended September 30, 2019 and 2018 include non-recurring insurance proceeds and interest income that are not included in NOI.


Total Units:	Number of units per property at the end of the reporting period.


Non-Revenue Units:	Number of model units or other non-revenue administrative units at the end of the reporting period.


Rentable Units:	Total Units less Non-Revenue Units at the end of the reporting period.


Average Occupied Units:	Number of units occupied based on a daily average during the reporting period.


Percent Leased:	Percent of Total Units leased at the end of the reporting period (number of leased units divided by Total Units).