8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 19, 2021

RESOURCE REIT, INC.

(Exact name of registrant specified in its charter)

Maryland	000-55430	80-0854717
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(IRS Employer Identification No.)

1845 Walnut Street, 17th Floor

Philadelphia, Pennsylvania 19103

(Address of principal executive offices)

Registrant’s telephone number, including area code: (215) 231-7050

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	N/A	N/A

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company    ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Item 2.02 Results of Operations and Financial Condition.

On November 19, 2021, Resource REIT, Inc. (the “Company”) made available certain supplemental data for the quarter ended September 30, 2021, which is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.

The information contained in this Item 2.02, including Exhibit 99.1, is being “furnished” and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended. By filing this Current Report on Form 8-K and furnishing this information, the Company makes no admission as to the materiality of any information in this Current Report on Form 8-K, including Exhibit 99.1

Item 9.01    Financial Statements and Exhibits.

Exhibit No.	Description
99.1	Third Quarter Supplemental Data, dated November 19, 2021
104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	RESOURCE REIT, INC.
Dated: November 19, 2021	By:	/s/ Alan F. Feldman
	Name:	Alan F. Feldman
	Title:	Chief Executive Officer and President

EX-99.1

Exhibit 99.1

RESOURCE REIT, INC.

TABLE OF CONTENTS

Company Information	3
Forward-Looking Statements	4
Presentation of Operating Data and Financial Information	4
Third Quarter 2021 Financial Results	6
Consolidated Balance Sheets – As reported on Form 10-Q (filed November 12, 2021)	11
Consolidated Statements of Operations – As reported on Form 10-Q (filed November 12, 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 September 30, 2021 and 2020	18
Supplemental and Combined Same Store Portfolio Net Operating Income by State Nine Months Ended September 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.

September 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 mergers described in Note 1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 (collectively, 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 September 30, 2021 and December 31, 2020 and Consolidated Statements of Operations for the three and nine months ended September 30, 2021 and 2020 (all as reported in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 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, June 30, 2021 and September 30, 2021 and (ii) supplemental results of operations for the Company for the three months ended March 31, 2021 and June 30, 2021 and the three and nine months ended September 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 nine months ended September 30, 2020 (as aggregated from the information reported in their respective Quarterly Reports on Form 10-Q for the quarter ended September 30, 2020). The information in this supplement 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

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RESOURCE REIT, INC.

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 information in this supplement does not reflect pro forma financial statements as prepared in compliance with 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 upon the financial information reported by each respective company in its Quarterly Report on Form 10-Q for those periods, adjusted for the removal of related party revenue and expense between the parties which eliminates upon consolidation. 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.

Third Quarter 2021 Financial Results

Operating Data and Financial Results

Third Quarter Highlights

· Net loss attributable to common stockholders of ($6.1) million, or ($0.04) per common share-diluted, for the three months ended September 30, 2021, as compared to a net loss attributable to common stockholders of ($7.7) million, or ($0.09) per common share-diluted, for the three months ended September 30, 2020.

· Total rental income increased 89% to $63.0 million for the three months ended September 30, 2021, as compared to $33.3 million for the three months ended September 30, 2020.

· Redeemed $67.5 million of 7% participating Preferred OP Units on September 14, 2021.

· Quarterly dividend of $0.07 per share of common stock paid on September 30, 2021.

Key Financial Measures

· The table below sets forth the Company’s net loss attributable to common stockholders, FFO and Core FFO, each on a per share basis, for the three and nine months ended September 30, 2021 and 2020:

	Three Months Ended				Nine Months Ended
Per Share	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
Net loss - diluted	$	(0.04)	$	(0.09)	$	(0.11)	$	(0.27)
FFO - diluted	$	0.10	$	0.06	$	0.20	$	0.18
Core FFO - diluted	$	0.12	$	0.08	$	0.32	$	0.22

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.

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 June 30, 2021 and the three and nine months ended September 30, 2021, as if the Merger occurred on January 1, 2021, and a combined basis for the three and nine months ended September 30, 2020:

Financial Results

· Supplemental net loss attributable to common stockholders of ($5.3) million, or ($0.03) per common share-diluted, for the three months ended September 30, 2021, as compared to a combined net loss attributable to common stockholders of ($19.8) million, or ($0.13) per common share-diluted, for the three months ended September 30, 2020.

· Supplemental FFO increased 242% to $16.9 million, or $0.11 per common share-diluted, for the three months ended September 30, 2021, as compared to combined FFO of $5.0 million, or $0.03 per common share-diluted, for the three months ended September 30, 2020.

· Supplemental Core FFO increased 73% to $18.6 million, or $0.12 per common share-diluted, for the three months ended September 30, 2021, as compared to combined Core FFO of $10.7 million, or $0.07 per common share-diluted, for the three months ended September 30, 2020.

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RESOURCE REIT, INC.

· Supplemental Adjusted EBITDA increased 36% to $29.9 million for the three months ended September 30, 2021, as compared to a combined Adjusted EBITDA of $21.9 million for the three months ended September 30, 2020.

Portfolio Performance

· Supplemental Rental income grew 5.0% to $63.0 million for the three months ended September 30, 2021, as compared to combined rental income of $59.9 million for the three months ended September 30, 2020.

· Supplemental Same Store NOI before property management fees increased 18.2% to $37.3 million for the three months ended September 30, 2021, as compared to combined Same Store NOI before property management fees of $31.6 million for the three months ended September 30, 2020.

· Supplemental Same Store property operating margin before property management fees improved 560 basis points to 59.2% for the three months ended September 30, 2021, as compared to a combined Same Store property operating margin before property management fees of 53.6% for the three months ended September 30, 2020.

· Supplemental Portfolio occupancy increased 170 basis points to 95.1% and supplemental portfolio average rent increased 6.5% to $1,369 for the three months ended September 30, 2021, as compared to combined results of 93.4% portfolio occupancy and portfolio average rent of $1,286, respectively, for the three months ended September 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.

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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 June 30, 2021 and the three and nine months ended September 30, 2021 and combined Same Store property results for the three and nine months ended September 30, 2020:

(Dollars in thousands, except rent per unit)	Three Months Ended						Nine Months Ended						Three Months Ended
	Sept 30,      2021		Sept 30,      2020		Variance		Sept 30,      2021		Sept 30,      2020		Variance		June 30,      2021
Operating Results:
Rental income (1)	$	62,934	$	58,833		7.0%	$	183,879	$	175,965		4.5%	$	61,002
Property operating expenses (1)		25,649		27,279		-6.0%		77,343		76,915		0.6%		25,782
Net operating income (“NOI”) before property management fees (2)		37,285		31,554		18.2%		106,536		99,050		7.6%		35,220
Property management fees		1,696		2,369		-28.4%		4,958		7,564		-34.5%		1,650
Net operating income after property management fees (2)		35,589		29,185		21.9%		101,578		91,486		11.0%		33,570
Average Occupancy		95.1%		93.4%		1.7%		95.0%		92.9%		2.1%		95.2%
Net effective rent per occupied unit	$	1,369	$	1,293		5.9%	$	1,339	$	1,301		3.0%	$	1,334
NOI Margin before property management fees (%)		59.2%		53.6%		5.6%		57.9%		56.3%		1.6%		57.7%
NOI Margin after property management fees (%)		56.5%		49.6%		6.9%		55.2%		52.0%		3.2%		55.0%

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

(2) Same Store portfolio consists of 49 properties, which represent 14,643 units, for the three months ended June 30, 2021 and three and nine months ended September 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 novel coronavirus disease (“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 incur significant disruptions from the COVID-19 pandemic during the three and nine months ended September 30, 2021; however, a small percentage of its tenants requested a rent deferral as a result of the pandemic. The Company evaluates each tenant rent deferral request on an individual basis, considering a number of factors. Not all tenant requests have or will ultimately result in modified agreements, nor is the Company forgoing its contractual rights under its lease agreements. There are no executed short-term rent deferral plans outstanding at September 30, 2021.

The extent to which the COVID-19 pandemic impacts the Company’s operations and those of its tenants depends on future developments, which cannot be predicted with confidence, 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. 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 September 30, 2021, the Company’s net bad debt was $522,000. The table below presents additional details on the supplemental components of bad debt for the three months ended June 30, 2021 and September 30, 2021 and combined components of bad debt for the three months ended September 30, 2020:

Components of Bad Debt (1)	Q3 2021				Q3 2020				Q2 2021
(Dollars in thousands)	Amount		Percentage		Amount		Percentage		Amount		Percentage
Operating Results:
Charge-offs	$	773		1.2%	$	445		0.7%	$	557		0.9%
Bad Debt Recoveries		(200)		-0.3%		(170)		-0.3%		(233)		-0.4%
Provision for bad debt		(51)		-0.1%		725		1.2%		584		0.9%
Net bad debt		522		0.8%		1,000		1.6%		908		1.4%

(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 June 30, 2021 and September 30, 2021 and combined Portfolio Operating Statistics for the three months ended September 30, 2020:

(Dollars in thousands, except rent per unit)	Q3             2021		Q3             2020		Q2             2021
Rental income	$	62,961	$	59,947	$	62,105
Property operating expenses		25,640		27,782		26,345
Net operating income before property management fees		37,321		32,165		35,760
Property management fees		1,696		2,415		1,679
Net operating income after property management fees		35,625		29,750		34,081
NOI Margin before property management fees (%)		59.3%		53.7%		57.6%
NOI Margin after property management fees (%)		56.6%		49.6%		54.9%
Collections - 30 day		95.3%		98.6%		95.6%
Total rent collected, as a percentage of rent billed (1)		96.6%		N/A		98.1%
Average occupancy		95.1%		93.5%		95.2%
Net effective rent per occupied unit	$	1,369	$	1,286	$	1,325
Resident retention rate		57.6%		54.4%		51.7%

(1) Includes rents collected for all periods presented through September 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

During the three months ended September 30, 2021, the Company entered into agreements to sell four properties, The Retreat at Rocky Ridge, Tech Center Square, The Brookwood and Pines of York. The Company completed the sale of each of these properties in October / November 2021 and received gross sale proceeds totaling $152.4 million. These rental properties represented 936 units with locations in Birmingham, Alabama, Newport News, VA, Homewood, AL and Yorktown, VA. The Company expects to recognize a gain on sale from these transactions during the quarter ended December 31, 2021.

In October 2021, the Company entered into agreements to sell Maxwell Townhomes, located in San Antonio, Texas and The Bryant at Yorba Linda, located in Yorba Linda, California. The Company expects both transactions to close in the first quarter of 2022 and to recognize a gain on sale.

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RESOURCE REIT, INC.

Financial Liquidity

As of September 30, 2021, the Company had a total liquidity position of approximately $188.1 million, which includes $107.2 million of unrestricted cash and $80.9 million of additional capacity under the Company’s secured revolving credit facility.

Capital Expenditures – Supplemental (Same Store)

For the three months ended September 30, 2021, recurring capital expenditures were $2.4 million, or $162 per unit, non-recurring capital expenditures were $890,000, or $61 per unit, and value-add capital expenditures were $1.2 million, or $80 per unit. For the nine months ended September 30, 2021, recurring capital expenditures were $4.4 million, or $301 per unit, non-recurring capital expenditures were $4.5 million, or $305 per unit, and value-add capital expenditures were $2.3 million, or $159 per unit.

Distributions

On September 23, 2021, the Company’s Board of Directors declared a cash distribution of $0.07 per share for the third quarter of 2021, which was paid on September 30, 2021 to stockholders of record at the close of business on September 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 September 30, 2021 (filed November 12, 2021):

Resource REIT, Inc.

Consolidated Balance Sheets

(in thousands, except share data)

	September 30, 2021			December 31, 2020
	(unaudited)
ASSETS
Investments:
Rental properties, net	$	2,039,963		$	897,975
Identified intangible assets, net		—			5
Assets held for sale - rental properties		75,215			—
Total investments		2,115,178			897,980
Cash		107,224			70,015
Restricted cash		19,976			14,769
Subtotal- cash and restricted cash		127,200			84,784
Due from related parties		—			2,763
Tenant receivables, net of allowance of $2,259 and $774, respectively		974			516
Prepaid expenses and other assets		10,192			6,000
Goodwill		154,667			154,935
Operating lease right-of-use assets		2,726			3,180
Total assets	$	2,410,937		$	1,150,158
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net	$	1,550,464		$	825,986
Accounts payable and accrued expenses		21,078			12,677
Accrued real estate taxes		20,759			7,370
Due to related parties		—			20,245
Tenant prepayments		2,227			1,210
Security deposits		5,201			2,860
Operating lease liabilities		2,761			3,190
Total liabilities	$	1,602,490		$	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; 165,636,606 and 86,075,442 shares issued and outstanding (including 1,055,589 and 790,272 of unvested restricted shares, respectively)		1,656			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		1,326,572			618,074
Accumulated other comprehensive income (loss)		(111	)		(391	)
Accumulated deficit		(519,671	)		(469,736	)
Total stockholders’ equity		808,447			148,809
Noncontrolling interest		—			127,811
Total equity		808,447			276,620
Total liabilities and equity	$	2,410,937		$	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						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
Revenues:
Rental income	$	62,961		$	33,258		$	178,466		$	99,625
Property management fee income - related parties		—			289			342			289
Asset management fee income - related parties		—			702			833			702
Other revenue		—			—			37			—
Total revenues		62,961			34,249			179,678			100,616
Expenses:
Property operating expenses		17,013			10,652			48,824			28,911
Real estate taxes		7,292			4,033			22,477			12,864
Acquisition costs		—			—			—			113
Property management fees - third party		1,696			392			5,017			392
Property management fees- related party		—			1,124			—			4,071
Asset Management fees - related party		—			2,335			—			8,518
Transaction costs		—			1,849			—			1,849
Casualty loss		454			18			1,372			221
General and administrative- Property related		1,335			954			3,982			2,640
General and administrative- Corporate		5,207			1,972			18,454			5,332
Loss on disposal of assets		188			142			606			363
Depreciation and amortization expense		24,128			12,760			75,178			38,927
Total expenses		57,313			36,231			175,910			104,201
Income (loss) before other income (expense)		5,648			(1,982	)		3,768			(3,585	)
Other income (expense):
Interest expense		(10,774	)		(5,632	)		(36,204	)		(19,772	)
Interest income		—			42			21			141
Gain on sale of rental property		—			—			18,734			—
Gain on sale of land easement		—			20			—			310
Insurance proceeds in excess of cost basis		80			3			241			39
Total other income (expense)		(10,694	)		(5,567	)		(17,208	)		(19,282	)
Loss before income taxes		(5,046	)		(7,549	)		(13,440	)		(22,867	)
Provision for income taxes		—			—			(206	)		—
Net loss	$	(5,046	)	$	(7,549	)	$	(13,646	)	$	(22,867	)
Redemption of preferred OP units		(342	)		—			(342	)		—
Preferred return to preferred OP unit holders		(921	)		(286	)		(3,161	)		(286	)
Net loss after preferred return		(6,309	)		(7,835	)		(17,149	)		(23,153	)
Less: Allocation of income to preferred unit holders attributable to noncontrolling interest		47			6			158			6
Less: Net loss attributable to noncontrolling interest		188			171			696			171
Net loss attributable to common stockholders	$	(6,074	)	$	(7,658	)	$	(16,295	)	$	(22,976	)
Weighted average common shares outstanding- basic		158,320			85,598			150,202			85,533
Weighted average common shares outstanding- diluted		158,320			85,598			150,202			85,533
Net loss per common share- BASIC	$	(0.04	)	$	(0.09	)	$	(0.11	)	$	(0.27	)
Net loss per common share- DILUTED	$	(0.04	)	$	(0.09	)	$	(0.11	)	$	(0.27	)

12

RESOURCE REIT, INC.

The following tables present supplemental results for the three months ended June 30, 2021 and the three and nine months ended September 30, 2021 (as if the Merger occurred on January 1, 2021) and combined results for the three and nine months ended September 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 September 30, 2020, adjusted for the removal of related party revenue and expense between the parties which eliminates upon consolidation):

Resource REIT, INC.

Supplemental and Combined Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended June 30,
	2021 (1)			2020 (2)			2021 (1)			2020 (2)			2021 (1)
Revenues:
Rental income	$	62,961		$	59,947		$	186,136		$	179,294		$	62,105
Other revenue		-			-			37			-			-
Total revenues		62,961			59,947			186,173			179,294			62,105
Expenses:
Property operating expenses		17,013			18,502			50,677			50,078			16,923
Real estate taxes		7,292			7,582			23,567			23,698			7,960
General and administrative - Property related		1,335			1,698			4,137			4,449			1,462
Property operating expenses before property management fees		25,640			27,782			78,381			78,225			26,345
Property management fees - third party		1,696			392			5,017			392			1,679
Property management fees - related party		-			2,023			-			7,317			-
Property operating expenses including property management fees		27,336			30,197			83,398			85,934			28,024
Acquisition costs		-			-			-			113			-
Management fees - related party		-			4,504			-			16,282			-
Transaction costs		-			5,573			7,822			5,573			-
Casualty Loss		454			(412	)		1,378			690			618
General and administrative - Corporate		5,207			3,625			18,974			10,657			5,413
Loss on disposal of assets		188			218			614			732			308
Depreciation and amortization expense		23,298			25,030			79,103			75,903			27,302
Total expenses		56,483			68,735			191,289			195,884			61,665
Income (loss) before other income (expense)		6,478			(8,788	)		(5,116	)		(16,590	)		440
Other income (expense):
Interest expense		(10,774	)		(10,965	)		(37,624	)		(37,879	)		(10,898	)
Interest income		-			55			22			203			6
Gain on sale of rental property		-			-			18,734			530			18,734
Gain on sale of land easement		-			20			-			310			-
Insurance proceeds in excess of cost basis		80			4			241			40			143
Total other income (expense)		(10,694	)		(10,886	)		(18,627	)		(36,796	)		7,985
Net (loss) income		(4,216	)		(19,674	)		(23,743	)		(53,386	)		8,425
Redemption of preferred OP units		(342	)		-			(342	)		-			-
Preferred return to preferred OP unit holders		(921	)		(286	)		(3,161	)		(286	)		(1,120	)
Net (loss) income after preferred return		(5,479	)		(19,960	)		(27,246	)		(53,672	)		7,305
Less: Allocation of income to preferred unit holders attributable to noncontrolling interest		47			6			150			6			52
Less: Net loss (income) attributable to noncontrolling interest		157			171			1,054			171			(387	)
Net (loss) income attributable to common stockholders	$	(5,275	)	$	(19,783	)	$	(26,042	)	$	(53,495	)	$	6,970
Weighted average common shares outstanding - basic (3)		158,320			157,053			157,263			157,011			156,780
Weighted average common shares outstanding - diluted (3)		158,320			157,053			157,263			157,011			156,822
Net (loss) income per common share - BASIC	$	(0.03	)	$	(0.13	)	$	(0.17	)	$	(0.34	)	$	0.04
Net (loss) income per common share - DILUTED	$	(0.03	)	$	(0.13	)	$	(0.17	)	$	(0.34	)	$	0.04

(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
	September 30,     2021		September 30,     2020		June 30,     2021		March, 31     2021
Selected Financial Information
Operating Statistics:
Net income (loss) attributable to common stockholders	$	(5,275)	$	(19,783)	$	6,970	$	(27,737)
Net income (loss) per common share - diluted	$	(0.03)	$	(0.13)	$	0.04	$	(0.18)
Rental income	$	62,961	$	59,947	$	62,105	$	61,070
Property operating expenses	$	27,336	$	30,197	$	28,024	$	28,038
Net Operating Income	$	35,625	$	29,750	$	34,081	$	33,032
Net Operating Income Margin (%)		56.6%		49.6%		54.9%		54.1%
Adjusted EBITDA	$	29,856	$	21,894	$	27,891	$	24,325
Funds From Operations	$	16,946	$	4,956	$	11,578	$	(4,766)
FFO per diluted share	$	0.11	$	0.03	$	0.07	$	(0.03)
Core Funds From Operations	$	18,555	$	10,696	$	16,206	$	15,328
Core FFO per share	$	0.12	$	0.07	$	0.10	$	0.10
Core FFO payout ratio (%)		62.4%		0.0%		68.1%		72.0%
Dividends to common shareholders	$	11,572	$	-	$	11,039	$	11,029
Dividends to preferred unitholders	$	921	$	286	$	1,120	$	1,120
Dividends per share, per quarter (common)	$	0.07	$	-	$	0.07	$	0.07
Dividends per share, annualized (common)	$	0.28	$	-	$	0.28	$	0.28
Dividend yield on NAV (%) (common)		3.1%		0.0%		3.1%		3.1%
DRIP (%)		23.4%		0.0%		24.2%		22.6%
DRIP shares (1)		314		-		311		289
Shares redeemed (1)		241		-		149		306
Shares redeemed, price	$	9.06	$	-	$	9.06	$	9.08
NAV (1), (2)	$	1,497,159	$	1,425,588	$	1,497,159	$	1,497,159
NAV, per share (1), (2)	$	9.06	$	9.12	$	9.06	$	9.06
Portfolio Data:
Total gross assets	$	2,772,916	$	2,599,089	$	2,833,511	$	2,848,794
Mortgages payable, net	$	1,550,464	$	1,488,331	$	1,554,165	$	1,582,382
Cash balance	$	107,224	$	103,846	$	174,604	$	147,078
Total number of properties		49		50		49		50
Total units		14,643		14,995		14,643		14,995
Collections - 30 day		95.3%		98.6%		95.6%		95.2%
Total rent collected, as a percentage of rent billed (3)		96.6%		N/A		98.1%		98.2%
Average occupancy		95.1%		93.5%		95.2%		94.8%
Net effective rent per occupied unit	$	1,369	$	1,286	$	1,325	$	1,307
Resident retention rate		57.6%		54.4%		51.7%		53.3%
Liquidity:
Unrestricted cash	$	107,224	$	103,846	$	174,604	$	147,078
Secured line of credit - availability	$	80,884	$	-	$	76,507	$	-
Total Liquidity	$	188,108	$	103,846	$	251,111	$	147,078

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

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

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

14

RESOURCE REIT, INC.

Supplemental and Combined FFO & Core FFO Reconciliation

(Dollars in thousands, except per share data)	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended June 30,
	2021			2020			2021			2020			2021
Funds From Operations (FFO):
Net loss attributable to common stockholders	$	(5,275	)	$	(19,783	)	$	(26,042	)	$	(53,495	)	$	6,970
Less: Gain on sale of rental property (1)		-			-			(17,874	)		(530	)		(17,874	)
Plus: Depreciation expense (1)		22,221			24,739			67,674			75,433			22,482
FFO attributable to common stockholders		16,946			4,956			23,758			21,408			11,578
Stock compensation expense (1)		385			2			3,630			2			362
Redemption of preferred units		329			-			329			-			-
Debt prepayment costs (1)		-			-			2,324			-			-
Acquisition fees		-			-			-			113			-
Transaction costs (1)		-			5,531			7,463			5,531			-
Amortization of Intangible Lease Assets (1)		205			2			7,996			181			3,567
Realized loss on change in fair value of interest rate caps (1)		59			35			122			94			13
Debt premium (discount) amortization (1)		(142	)		(108	)		182			(328	)		(151	)
Deferring financing costs amortization (1)		413			694			3,198			2,121			385
Casualty losses, net of casualty gains (1)		360			(416	)		1,087			650			452
Core FFO attributable to common stockholders	$	18,555		$	10,696		$	50,089		$	29,772		$	16,206
Basic net loss per common share	$	(0.03	)	$	(0.13	)	$	(0.17	)	$	(0.34	)	$	0.04
Diluted net loss per common share	$	(0.03	)	$	(0.13	)	$	(0.17	)	$	(0.34	)	$	0.04
FFO, per diluted share (2)	$	0.11		$	0.03		$	0.15		$	0.14		$	0.07
Core FFO per diluted share (2)	$	0.12		$	0.07		$	0.32		$	0.19		$	0.10
Weighted average shares outstanding - basic		158,320			157,053			157,263			157,011			156,780
Weighted average shares outstanding - diluted (3)		158,404			157,053			157,306			157,011			156,822

(1) Each line item is adjusted to reflect the allocation to the noncontrolling interests for the three and nine months ended September 30, 2021 as follows (in thousands): gain on sale of rental property $0 and $860, depreciation expense of $863 and $3.1 million, stock compensation expense of $15 and $171, redemption of preferred OP units $13 and $13, debt prepayment costs of $0 and $112, transaction costs of $0 and $359, amortization of intangible lease assets of $8 and $383, realized loss on change in fair value of interest rate caps related to extinguishments of $2 and $5, debt premium (discount) amortization of $6 and $10, deferred financing costs amortization of $16 and $150 and casualty losses, net of casualty gains, of $14 and $49.

(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 September 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 84,290 and 43,492 weighted average unvested restricted shares outstanding for the three and nine months ended September 30, 2021, however, these restricted shares were excluded from the calculation of diluted net loss per common share – GAAP because their effect would be antidilutive for the three and nine months ended September 30, 2021. Income (loss) attributable to outstanding OP Common and Preferred units issued in the Self-Management Transaction prior to their redemption and or conversion were 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.

15

RESOURCE REIT, INC.

Supplemental and Combined Adjusted EBITDA Reconciliation and Interest Coverage Ratio

(Dollars in thousands)	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended June 30,
	2021			2020			2021			2020			2021
Adjusted EBITDA:
Net income (loss) attributable to common stockholders	$	(5,275	)	$	(19,783	)	$	(26,042	)	$	(53,495	)	$	6,970
Plus: Allocation of income (loss) to noncontrolling interests		(204	)		(177	)		(1,204	)		(177	)		335
Less: Gain on sale of rental property		-			-			(18,734	)		(530	)		(18,734	)
Less; Debt premium (discount) amortization		(148	)		(110	)		192			(330	)		(158	)
Plus: Depreciation and amortization expense		23,298			25,030			79,103			75,903			27,302
Plus: Interest expense		10,432			10,337			31,521			35,985			10,638
Plus: Interest expense - preferred unit holders (1)		921			286			3,161			286			1,120
Plus: Deferring financing costs amortization		429			702			3,348			2,129			404
Plus: Realized loss on change in fair value of interest rate caps		61			36			127			95			14
Plus: Debt prepayment costs		-			-			2,436			-			-
Plus: Transaction Costs		-			5,573			7,822			5,573			-
Plus: Redemption of preferred OP units		342			-			342			-			-
Adjusted EBITDA	$	29,856		$	21,894		$	82,072		$	65,439		$	27,891
Interest Cost:
Interest expense (2)	$	11,695		$	11,251		$	40,785		$	38,165		$	12,018
INTEREST COVERAGE		2.6	x		1.9	x		2.0	x		1.7	x		2.3	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 OP Unitholders.

16

RESOURCE REIT, INC.

Supplemental and Combined Same Store Portfolio Net Operating Income Reconciliation

(Dollars in thousands, except rent per unit)	Three Months Ended September 30,								Nine Months Ended September 30,								Three Months Ended June 30,
	2021			2020			% change		2021			2020			% change		2021
Revenues:
Rental and other property revenue	$	62,934		$	58,833			7.0%	$	183,879		$	175,965			4.5%	$	61,002
Property Operating Expenses:
Real estate taxes		7,292			7,495			-2.7%		23,409			23,433			-0.1%		7,888
Property insurance		1,263			1,551			-18.6%		4,210			4,492			-6.3%		1,495
Payroll		5,693			5,637			1.0%		16,442			15,874			3.6%		5,409
Utilities		3,735			3,693			1.1%		10,917			10,431			4.7%		3,480
Landscaping		663			676			-1.9%		1,875			1,890			-0.8%		715
Repairs and maintenance		2,740			2,550			7.5%		8,091			7,138			13.4%		2,623
Turnover		1,580			1,699			-7.0%		3,624			3,675			-1.4%		1,127
General and administrative		1,335			1,676			-20.3%		4,084			4,377			-6.7%		1,436
Marketing		631			706			-10.6%		1,858			1,853			0.3%		611
Other expenses		717			1,596			-55.1%		2,833			3,752			-24.5%		998
Total property operating expenses		25,649			27,279			-6.0%		77,343			76,915			0.6%		25,782
Property management fees		1,696			2,369			-28.4%		4,958			7,564			-34.5%		1,650
Same Store net operating income (1)	$	35,589		$	29,185			21.9%	$	101,578		$	91,486			11.0%	$	33,570
Same Store NOI margin		56.5%			49.6%			6.9%		55.2%			52.0%			3.2%		55.0%
Average occupancy		95.1%			93.4%			1.7%		95.0%			92.9%			2.1%		95.2%
Net effective rent per occupied unit	$	1,369		$	1,293			5.9%	$	1,339		$	1,301			3.0%	$	1,334
Reconciliation of Same Store net operating income to net income (loss) attributable to common stockholders
Same Store net operating income		35,589			29,185					101,578			91,486					33,570
Non-Same Store net operating income		36			565					1,160			1,874					511
Total NOI	$	35,625		$	29,750				$	102,738		$	93,360				$	34,081
Other (expense) income:
Casualty loss		(454	)		412					(1,378	)		(690	)				(618	)
Acquisition costs		-			-					-			(113	)				-
Transaction costs		-			(5,573	)				(7,822	)		(5,573	)				-
Management fees - related party		-			(4,504	)				-			(16,282	)				-
General and administrative - Corporate		(5,207	)		(3,625	)				(18,974	)		(10,657	)				(5,413	)
Loss on disposal of assets		(188	)		(218	)				(614	)		(732	)				(308	)
Depreciation and amortization expense		(23,298	)		(25,030	)				(79,103	)		(75,903	)				(27,302	)
Interest expense		(10,774	)		(10,965	)				(37,624	)		(37,879	)				(10,898	)
Interest income		-			55					22			203					6
Gain on sale of rental property		-			-					18,734			530					18,734
Gain on sale of land easement		-			20					-			310					-
Management fee and other income		-			-					37			-					-
Insurance proceeds in excess of cost basis		80			4					241			40					143
Total other expense (income)		(39,841	)		(49,424	)				(126,481	)		(146,746	)				(25,656	)
Net (loss) income	$	(4,216	)	$	(19,674	)			$	(23,743	)	$	(53,386	)			$	8,425
Redemption of preferred OP units		(342	)		-					(342	)		-					-
Preferred return to preferred unit holders		(921	)		(286	)				(3,161	)		(286	)				(1,120	)
Net (loss) income after preferred return		(5,479	)		(19,960	)				(27,246	)		(53,672	)				7,305
Less: Allocation of income to preferred unit holders attributable to noncontrolling interest		47			6					150			6					52
Less: Net loss (income) attributable to noncontrolling interest		157			171					1,054			171					(387	)
Net (loss) income attributable to common stockholders	$	(5,275	)	$	(19,783	)			$	(26,042	)	$	(53,495	)			$	6,970

(1) Same Store portfolio consists of 49 properties, which represent 14,643 units.

17

RESOURCE REIT, INC.

Supplemental and Combined Same Store Portfolio Net Operating Income by State

THREE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

(Dollars in thousands, except rent per unit)				Rental Income							Property Operating Expenses (1)							Net Operating Income							Average Occupancy									Net Effective Rent Per Occupied Unit
State	Number of Properties	Units		2021		2020		% Change			2021		2020		% Change			2021		2020		% Change			2021			2020			% Change			2021		2020		% Change
Alabama	2		480	$	1,662	$	1,547		7.4	%	$	891	$	959		-7.1	%	$	771	$	588		31.1	%		96.6	%		94.0	%		2.6	%	$	1,023	$	988		3.6	%
Arizona	2		866		3,536		3,081		14.8	%		1,246		1,202		3.7	%		2,290		1,879		21.9	%		96.8	%		94.9	%		1.9	%		1,268		1,151		10.2	%
California	2		694		4,227		3,897		8.5	%		1,546		1,669		-7.4	%		2,681		2,228		20.3	%		94.4	%		93.5	%		0.9	%		2,046		1,933		5.9	%
Colorado	4		1,016		4,741		4,591		3.3	%		1,584		1,895		-16.4	%		3,157		2,696		17.1	%		92.5	%		92.8	%		-0.3	%		1,542		1,452		6.2	%
Florida	4		984		4,196		3,791		10.7	%		1,860		1,897		-2.0	%		2,336		1,894		23.3	%		96.9	%		94.5	%		2.4	%		1,310		1,237		5.9	%
Georgia	7		1,790		7,985		7,537		5.9	%		3,399		3,692		-7.9	%		4,586		3,845		19.3	%		95.1	%		94.0	%		1.1	%		1,406		1,333		5.4	%
Illinois	4		1,251		6,221		5,772		7.8	%		2,631		2,766		-4.9	%		3,590		3,006		19.4	%		96.7	%		92.3	%		4.4	%		1,599		1,535		4.2	%
Minnesota	2		739		3,198		2,941		8.7	%		1,407		1,540		-8.6	%		1,791		1,401		27.8	%		95.9	%		94.6	%		1.3	%		1,347		1,288		4.6	%
North Carolina	2		623		2,410		2,279		5.7	%		989		1,059		-6.6	%		1,421		1,220		16.5	%		95.6	%		95.6	%		0.0	%		1,245		1,183		5.2	%
Ohio	1		156		765		654		17.0	%		299		274		9.1	%		466		380		22.6	%		96.9	%		89.3	%		7.6	%		1,290		1,274		1.3	%
Oregon	2		545		2,480		2,306		7.5	%		1,017		1,099		-7.5	%		1,463		1,207		21.2	%		95.9	%		91.7	%		4.2	%		1,453		1,364		6.6	%
Pennsylvania	1		133		645		608		6.1	%		239		434		-44.9	%		406		174		133.3	%		96.7	%		90.6	%		6.1	%		1,473		1,389		6.0	%
Texas	13		4,769		18,345		17,478		5.0	%		9,055		9,953		-9.0	%		9,290		7,525		23.5	%		93.7	%		92.8	%		0.9	%		1,244		1,166		6.6	%
Virginia	3		597		2,523		2,351		7.3	%		1,182		1,209		-2.2	%		1,341		1,142		17.4	%		97.3	%		95.3	%		2.0	%		1,288		1,249		3.1	%
Total / Weighted Average	49		14,643	$	62,934	$	58,833		7.0	%	$	27,345	$	29,648		-7.8	%	$	35,589	$	29,185		21.9	%		95.1	%		93.4	%		1.7	%	$	1,369	$	1,293		5.9	%

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

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RESOURCE REIT, INC.

Supplemental and Combined Same Store Portfolio Net Operating Income by State

NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

(Dollars in thousands, except rent per unit)				Rental Income							Property Operating Expenses (1)							Net Operating Income							Average Occupancy									Net Effective Rent Per Occupied Unit
State	Number of Properties	Units		2021		2020		% Change			2021		2020		% Change			2021		2020		% Change			2021			2020			% Change			2021		2020		% Change
Alabama	2		480	$	4,920	$	4,585		7.3	%	$	2,546	$	2,467		3.2	%	$	2,374	$	2,118		12.1	%		96.3	%		93.0	%		3.3	%	$	1,012	$	993		1.9%
Arizona	2		866		10,059		8,884		13.2	%		3,516		3,422		2.7	%		6,543		5,462		19.8	%		96.8	%		93.8	%		3.0	%		1,211		1,112		8.9%
California	2		694		12,180		11,821		3.0	%		4,867		4,966		-2.0	%		7,313		6,855		6.7	%		94.9	%		92.8	%		2.1	%		2,001		1,915		4.5%
Colorado	4		1,016		13,898		13,759		1.0	%		4,779		5,085		-6.0	%		9,119		8,674		5.1	%		92.5	%		91.6	%		0.9	%		1,517		1,488		1.9%
Florida	4		984		12,279		11,288		8.8	%		5,626		5,591		0.6	%		6,653		5,697		16.8	%		96.8	%		93.0	%		3.8	%		1,277		1,234		3.4%
Georgia	7		1,790		23,431		22,528		4.0	%		10,329		10,699		-3.5	%		13,102		11,829		10.8	%		95.4	%		93.0	%		2.4	%		1,379		1,351		2.1%
Illinois	4		1,251		18,134		17,256		5.1	%		7,584		7,979		-5.0	%		10,550		9,277		13.7	%		96.1	%		92.4	%		3.7	%		1,564		1,540		1.5%
Minnesota	2		739		9,217		8,995		2.5	%		4,199		4,342		-3.3	%		5,018		4,653		7.8	%		95.7	%		94.7	%		1.0	%		1,332		1,280		4.0%
North Carolina	2		623		6,974		6,703		4.0	%		2,808		2,923		-3.9	%		4,166		3,780		10.2	%		94.0	%		94.0	%		0.0	%		1,215		1,175		3.4%
Ohio	1		156		2,184		2,143		1.9	%		889		866		2.7	%		1,295		1,277		1.4	%		93.4	%		93.9	%		-0.5	%		1,269		1,267		0.1%
Oregon	2		545		7,227		7,000		3.2	%		3,007		2,969		1.3	%		4,220		4,031		4.7	%		95.5	%		92.5	%		3.0	%		1,417		1,399		1.2%
Pennsylvania	1		133		1,987		1,855		7.1	%		1,019		1,077		-5.4	%		968		778		24.4	%		96.9	%		91.3	%		5.6	%		1,458		1,405		3.7%
Texas	13		4,769		53,936		52,202		3.3	%		27,617		28,581		-3.4	%		26,319		23,621		11.4	%		94.0	%		92.6	%		1.4	%		1,217		1,185		2.6%
Virginia	3		597		7,453		6,946		7.3	%		3,515		3,512		0.1	%		3,938		3,434		14.7	%		97.1	%		95.1	%		2.0	%		1,269		1,231		3.1%
Total / Weighted Average	49		14,643	$	183,879	$	175,965		4.5	%	$	82,301	$	84,479		-2.6	%	$	101,578	$	91,486		11.0	%		95.0	%		92.9	%		2.1	%	$	1,339	$	1,301		3.0%

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

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RESOURCE REIT, INC.

Supplemental Portfolio Information

THREE MONTHS ENDED SEPTEMBER 30, 2021

(Dollars in thousands, except rent per unit)						Net Effective
Property	Market	Number of       Units		Year Built		Rent per     Occupied Unit (1)		Revenue per     Occupied Unit  (2)		Average     Occupancy
1000 Spalding	Atlanta, GA		252		1995	$	1,408	$	1,490		96.1%
81 Fifty at West Hills	Portland, OR		357		1985		1,435		1,594		96.9%
Adair off Addison	Dallas, TX		352		1980		1,228		1,355		95.8%
Addison at Sandy Springs	Sandy Springs, GA		236		1987		1,255		1,373		92.2%
Arcadia	Centennial , CO		300		1984		1,611		1,708		94.2%
Aston at Cinco Ranch	Katy, TX		228		2000		1,375		1,462		97.5%
Bay Club	Jacksonville, FL		220		1990		1,303		1,416		96.4%
Bristol Grapevine	Grapevine, TX		376		1978 - 1981		1,084		1,182		95.1%
Bryant at Yorba Linda	Yorba Linda, CA		400		1986		2,209		2,280		94.6%
Calloway at Las Colinas	Irving, TX		536		1984		1,145		1,281		91.5%
Courtney Meadows	Jacksonville, FL		276		2001		1,297		1,442		98.2%
Crosstown at Chapel Hill	Chapel Hill, NC		411		1990		1,230		1,327		96.0%
Estates at Johns Creek	John’s Creek , GA		403		1999		1,708		2,018		95.9%
Grand Reserve	Naperville, IL		319		1997		1,794		1,924		97.4%
Green Trails	Lisle, IL		440		1988		1,482		1,595		97.0%
Heritage Pointe	Gilbert, AZ		458		1989		1,244		1,371		96.7%
Indigo Creek	Glendale, AZ		408		1998		1,294		1,439		97.1%
Martin’s Point	Lombard, IL		256		1989		1,543		1,619		95.8%
Matthew’s Reserve	Matthews, NC		212		1998		1,276		1,382		95.0%
Maxwell Townhomes	San Antonio, TX		316		1983		1,108		1,239		87.8%
Meridian Pointe	Burnsville, MN		339		1989		1,399		1,500		94.9%
Montclair Terrace	Portland, OR		188		1968 - 2006		1,490		1,556		94.2%
Perimeter 5550	Atlanta, GA		165		1994		1,309		1,411		96.0%
Perimeter Circle	Atlanta, GA		194		1995		1,404		1,497		96.9%
Pines of York	Yorktown, VA		248		1976		1,079		1,182		98.0%
Point Bonita	Chula Vista, CA		294		1970 - 1988		1,823		1,988		94.2%
Providence in the Park	Arlington , TX		524		1997		1,330		1,440		89.5%
Ravina	Austin, TX		498		2001		1,320		1,484		97.6%
Retreat at Rocky Ridge	Birmingham, AL		206		1986		879		1,054		97.5%
Skyview	Westminster, CO		224		1985		1,314		1,463		84.0%
South Lamar Village	Austin, TX		208		1981		1,372		1,488		96.5%
Sunset Ridge	San Antonio, TX		324		1949		1,176		1,319		95.2%
Tech Center Square	Newport News, VA		208		1985		1,101		1,239		97.1%
Terraces at Lake Mary	Lake Mary, FL		284		1998		1,337		1,539		96.8%
The Brookwood Apartment Homes	Homewood, AL		274		1968		1,134		1,302		96.0%
The Cannery	Dayton, OH		156		1800s / 2011		1,290		1,687		96.9%
The Palmer at Las Colinas	Dallas, TX		476		1991		1,487		1,640		93.1%
The Summit	Alexandria, VA		141		1976		1,937		2,233		96.5%
The Westside Apartment Homes	Plano, TX		412		1984		1,193		1,317		93.6%
TrailPoint	The Woodlands, TX		271		1981		1,122		1,216		96.1%
Tramore Village	Austell, GA		324		1999		1,261		1,386		94.0%
Uptown Buckhead	Atlanta, GA		216		1989		1,287		1,417		95.7%
Verdant	Boulder , CO		216		1991		1,919		2,153		94.5%
Verona	Littleton, CO		276		1985		1,341		1,464		96.2%
Vista	Philadelphia , PA		133		1964		1,473		1,670		96.8%
Wimbledon Oaks	Arlington, TX		248		1986		1,163		1,244		94.4%
Windbrooke Crossing	Buffalo Grove, IL		236		1986		1,612		1,773		96.3%
Winthrop West	Riverview, FL		204		1990		1,299		1,455		96.3%
Woods at Burnsville	Burnsville, MN		400		1984		1,305		1,510		96.9%
Total / Weighted Average			14,643			$	1,369	$	1,508		95.1%

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

(2) Represents total revenue per occupied unit.

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RESOURCE REIT, INC.

Supplemental Mortgage Notes Payable Summary Information

AS OF SEPTEMBER 30, 2021

(Dollars in thousands)

Property	Type	Term	Outstanding		Interest		Maturity
		(months)	Principal (1)		Rate (2)		Date
1000 Spalding	Fixed	84	$	35,035		2.51%		12/1/2027
Addison at Sandy Springs	Floating	84		22,000		1.84%		5/1/2025
Arcadia	Fixed	84		56,810		2.57%		12/1/2027
Bay Club	Floating	84		20,469		1.95%		8/1/2024
Bristol Grapevine	Floating	84		32,650		1.79%		5/1/2025
Bryant at Yorba Linda	Floating	84		74,637		2.33%		4/15/2027
Calloway at Las Colinas	Fixed	84		51,935		2.57%		12/1/2027
Courtney Meadows	Floating	84		26,037		1.92%		1/1/2025
Crosstown at Chapel Hill	Floating	84		42,477		1.85%		7/1/2025
Grand Reserve	Floating	120		47,845		1.80%		5/1/2028
Green Trails	Floating	84		58,512		2.07%		6/1/2024
Indigo Creek	Floating	84		38,732		2.01%		5/1/2024
Martin’s Point	Floating	84		28,721		1.94%		11/1/2024
Matthew’s Reserve	Fixed	84		23,850		4.47%		9/1/2025
Maxwell Townhomes	Fixed	120		12,258		4.32%		1/1/2022
Meridian Pointe	Floating	84		37,665		1.98%		8/1/2024
Perimeter 5550	Floating	84		20,630		1.58%		1/1/2026
Perimeter Circle	Floating	84		26,115		1.58%		1/1/2026
Pines of York	Fixed	120		13,541		4.46%		12/1/2021
Point Bonita	Fixed	120		24,898		5.33%		10/1/2023
Ravina	Fixed	120		24,935		3.76%		5/1/2022
Skyview	Floating	120		27,890		2.44%		10/1/2026
Sunset Ridge	Floating	84		28,600		2.42%		11/1/2027
Terraces at Lake Mary	Floating	84		30,800		1.99%		9/1/2024
The Brookwood Apartment Homes	Fixed	120		18,772		4.82%		11/1/2021
The Summit	Fixed	84		27,580		3.84%		7/1/2026
TrailPoint	Floating	120		17,159		2.49%		11/1/2023
Tramore Village	Floating	84		32,293		1.88%		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		35,767		2.77%		1/1/2024
Winthrop West	Fixed	84		21,760		4.36%		10/1/2025
Woods at Burnsville	Floating	84		36,216		2.21%		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 (3)	Floating	120		24,760		2.11%		2/1/2031
Total / Weighted Average			$	1,557,315		2.60%

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

(2) At September 30, 2021, one-month LIBOR in effect was 0.08%.

(3) At September 30, 2021, one-month SOFR in effect was 0.05%.

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RESOURCE REIT, INC.

Supplemental Debt Summary

AS OF SEPTEMBER 30, 2021 (Dollars in thousands)	Amount		Weighted       Avg Rate		Type		Weighted     Average Maturity
Debt:
Mortgage notes payable - variable rate		709,975		2.06%		Floating		3.93
Mortgage notes payable - fixed rate		847,340		3.04%		Fixed		6.20
Total Mortgage notes payable		1,557,315		2.60%				5.16
Unamortized premium / deferred financing costs		(6,851)
Total mortgage notes payable, net		1,550,464
Secured revolving credit facility (1)		-
Equity Capitalization - period end		1,500,671
Total Capitalization	$	3,051,135

(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 September 30, 2021. Borrowings under the facility mature on May 20, 2024.

(2) As of September 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% and maturity dates ranging from November 2021 to February 2026.

	Secured       Fixed Debt		Secured       Variable       Debt		Total     Debt		% of     Total Debt		Weighted Average     Interest rate
Debt Maturity Schedule:
2021	$	32,313	$	-	$	32,313		2.1%		4.7%
2022		37,193		-		37,193		2.4%		3.9%
2023		24,898		17,159		42,057		2.7%		4.2%
2024		-		286,882		286,882		18.4%		2.1%
2025		45,610		155,457		201,067		12.9%		2.4%
2026		45,990		74,635		120,625		7.7%		2.7%
2027 +		661,336		175,842		837,178		53.8%		2.6%
Total	$	847,340	$	709,975	$	1,557,315		100.0%		2.6%

22

RESOURCE REIT, INC.

Supplemental Debt Covenants and Encumbered Asset Information

AS OF SEPTEMBER 30, 2021

(Dollars in thousands)

Secured Revolving Credit Facility	Requirement	Actual		Compliance
Debt Covenant Summary:
Maximum total leverage ratio (1)	£ 65%		53.5%	Yes
Minimum fixed charge coverage ratio (2)	³ 1.35x		1.84x	Yes
Maximum secured recourse debt	£ 5%		0.0%	Yes
Minimum tangible net worth	³$678,834	$	981,203	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 SEPTEMBER 30, 2021

(Dollars in thousands)

Encumbered Asset Information	Total     Properties		Total       Units		% of Total		Gross Assets  (5)		Debt		LTV		Q3     2021 NOI		% of Total
Encumbered assets - Corporate Level Facility (3)		5		931		6.4%	$	103,580	$	-		0.0%	$	2,064		5.8%
Encumbered assets - Property Level (4)		33		9,842		67.2%		1,816,893		1,062,145		58.5%		24,046		67.6%
Encumbered assets - Structured Credit Level Facility (4)		11		3,870		26.4%		656,263		495,170		75.5%		9,478		26.6%
		49		14,643		100.0%	$	2,576,736	$	1,557,315		60.4%	$	35,589		100.0%

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

(4) Secured by mortgages.

(5) 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
	September 30,  2021			September 30,  2020			June 30,  2021
Capitalization:
NAV, per share	$	9.06		$	9.12		$	9.06
Common shares & OP units outstanding		165,637			165,775			165,941
Market value of common equity		1,500,671			1,511,868			1,503,425
Preferred Operating Partnership Unit Liquidation Value		-			63,993			63,993
Equity capitalization		1,500,671			1,575,861			1,567,418
Total mortgage debt (1)		1,557,315			1,497,797			1,561,202
Secured revolving credit facility		-			-			-
Total debt outstanding		1,557,315			1,497,797			1,561,202
Less: Cash and cash equivalents		(107,224	)		(103,846	)		(174,604	)
Total net debt		1,450,091			1,393,951			1,386,598
Total Enterprise Value	$	2,950,762		$	2,969,812		$	2,954,016
Adjusted EBITDA (2)	$	29,856		$	21,894		$	27,891
Total Net Debt / Adjusted EBITDA (3)		12.1	x		15.9	x		12.4	x
Total Net Debt / Enterprise Value		49.1	%		46.9	%		46.9	%

(1) Total mortgage debt breakdown presented on pg. 21 for September 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 September 30,				Nine Months Ended September 30,
	2021		2020		2021 (2)		2020
Total Same-Store properties / units		14,643		14,643		14,643		14,643
Recurring	$	2,369	$	1,301	$	4,397	$	3,543
Non-Recurring		890		1,521		4,469		3,263
Capital Expenditures - Same Store	$	3,259	$	2,822	$	8,866	$	6,806
Capital Expenditures, per unit - Same Store	$	223	$	193	$	605	$	465
Value Add		1,174		425		2,331		9,288
Total Capital Spend - Same Store	$	4,433	$	3,247	$	11,197	$	16,094
Total Capital Spend, per unit - Same Store	$	303	$	222	$	765	$	1,099
All properties / units		14,643		14,995		14,995		14,995
Recurring	$	2,369	$	1,338	$	4,447	$	3,642
Non-Recurring		890		1,521		4,481		3,271
Capital Expenditures - All	$	3,259	$	2,859	$	8,928	$	6,913
Capital Expenditures, per unit - All	$	223	$	191	$	595	$	461
Value Add		1,174		456		2,331		9,319
Total Capital Spend - All	$	4,433	$	3,315	$	11,259	$	16,232
Total Capital Spend, per unit - All	$	303	$	221	$	751	$	1,082

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

(2) Column includes total capital spent on fixed assets for Evergreen @ Coursey Place until its sale on 6/29/2021.

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.

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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
	September 30,     2021			September 30,     2020		June 30, 2021
Total mortgage debt	$	1,557,315		$	1,497,797	$	1,561,202
Secured revolving credit facility		-			-		-
Total debt outstanding		1,557,315			1,497,797		1,561,202
Less: Cash and cash equivalents		(107,224	)		(103,846)		(174,604)
Total net debt	$	1,450,091		$	1,393,951	$	1,386,598
Adjusted EBITDA	$	29,856		$	21,894	$	27,891
Total Net Debt / Adjusted EBITDA		12.1	x		15.9x		12.4x
Enterprise Value	$	2,950,762		$	2,969,812	$	2,954,016
Total Net Debt / Enterprise Value		49.1%			46.9%		46.9%

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.

Preferred OP Units

Preferred OP Units are the Series A Cumulative Participating Redeemable Preferred Units in RRE Opportunity II, LP, the Company’s operating partnership.

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 have been sold are excluded from the Same Store portfolio. 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
	September 30,     2021		September 30,     2020		June 30, 2021
Total assets	$	2,410,937	$	2,107,133	$	2,495,580
Plus: accumulated depreciation		327,426		442,984		304,558
Plus: accumulated amortization		34,553		48,972		33,373
Total gross assets	$	2,772,916	$	2,599,089	$	2,833,511

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XML

Document and Entity Information	Nov. 19, 2021
Cover [Abstract]
Amendment Flag	false
Entity Central Index Key	0001559484
Document Type	8-K
Document Period End Date	Nov. 19, 2021
Entity Registrant Name	RESOURCE REIT, INC.
Entity Incorporation State Country Code	MD
Entity File Number	000-55430
Entity Tax Identification Number	80-0854717
Entity Address, Address Line One	1845 Walnut Street
Entity Address, Address Line Two	17th Floor
Entity Address, City or Town	Philadelphia
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	19103
City Area Code	(215)
Local Phone Number	231-7050
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false