Challenges Ahead

• Reduced economic activity and rising unemployment could severely impact our residents’ ability to pay rent on a timely basis; and residents may seek lease deferment payment plans or rent reductions, resulting in increases in uncollectible receivables and reductions in rental income, which could reduce NOI and cash flow.
• The negative financial impact of the pandemic could impact our future compliance with financial covenants in our credit facility and other debt agreements.
• Weaker economic conditions could cause us to recognize impairment in value of our tangible or intangible assets.
• We may need to record loss contingencies and increased expenses related to our COVID-19 response.