Monarch Investment and Management GroupAnnual Investor Meeting

Thursday March 9, 2017The Brown Palace Hotel

The New Fountains Waterford West Kansas City 3 Portfolio

1997 - 2010Foxhill Apartments, LLCMeadowlark Apartments Associates, LLCThe Tower Apartments Associates, LLCCanon Inn Associates, LLCCountry Green Apartments, LLCMesa Ridge Apartments, LLCLa Vida Buena Associates, LLCApache Trace Associates, LLC3958 Montgomery Associates, LLCCanyon Point Associates, LLCCanyon Ridge Associates, LLCMountaineer Village Associates, LLCMission Hill Associates, LLCWyoming Place Associates, LLCMesa Gardens Associates, LLC

Willowpark Associates, LLCRamblewood Apartments Associates, LLCMIMG XIV Associates, LLCVictoria Square Associates, LLCMIMG XVI Associates, LLCMIMG XVII, LLCMIMG XVIII, LLCMIMG XIX Associates, LLCMIMG XX Associates, LLCMIMG XXI Sioux Master LLC

2011MIMG XXII Eagles Pointe LLCMIMG XXIII DBA McMillen Woods, LLCMIMG XXIV Commodore Perry, LLCMIMG XXVI Chelsea Park LLCMIMG XXV Executive Towers, LLCMIMG XXXI Camelot Place, LLCMIMG XXIX Block 2 LLCMIMG XXXII Eden Park, LLCMIMG XXX Gateway Townhomes, LLC

2,039 Units5,055 Units

2012MIMG XXXIII Three Rivers, LLCMIMG XXXV Knollwood, LLCMIMG XXXVI West Tech Lofts, LLCMIMGXXXVII CE Master, LLCMIMG XXXIV Village Green LLCMIMG XXVII Suson Pines LLCMIMG XL Harbor Pointe LLCMIMG XXXVIII Stone Grove LLCMIMG XXXIX Concorde Club LLCMIMG XXVIII HS Master LLCMIMG XLI Country Estates LLCMIMG XLI Sherwood Forest LLCMIMG XLIII Warren Club LLCMIMG XLIV Walnut Creek LLC

3,940 Units2013

MIMG XLII Tiffany Woods, LLCMIMG XLV Town & Country LLCMIMG XLVII Breckenridge, LLCMIMG XLVI Knolls LLCMIMG XLVIII City Limits, LLCMIMG LI The Oaks, LLCMIMG L Wake Robin LLCMIMG XLIX Timber Ridge LLCMIMG LII Arbors at Eastland LLCMIMG LIV Gray's LakeMIMG LV Greenmar, LLC

2014MIMG LVI Walnut CreekMIMG LVII HR Master LLCMimg LIX Palo Duro Place LLCMIMG LVIII Camelot LLCMIMG LX Cedar Trace LLCMIMG LXI Stephenville Master, LLCMIMG LXII LaSalle, LLCMIMG LXIII Prairie Walk, LLCMIMG LXV Central Square LLCMIMGLXVI Drakes Pond, LLCMIMG LXVII Omaha Five, LLCMIMG LXIV mi6llc Master, LLC

2015MIMG LXVIII Woodland Ridge, LLCMIMG LXXI Vantage Point, LLCMIMG LXX LeClaire, LLCMIMG LXIX Country Club Villas, LLCMIMG LXXII Woodman Park, LLCMIMG LXXIII Central Pointe LLCMIMG LXXIV Colonial LLCMIMG LXXV Brookeville LLCMIMG LXXVI Sedona Ridge, LLCMIMG LXXVII Golfview Village LLCMonarch River Oaks, LLCMIMG LXXXII The Hills, LLC

MIMG XCIII Seven Trails LLCMIMG XCII Fairlane East LLCMIMG XCVI Hunters Master LLCMIMG SCVI EMAX Sub LLCMIMG XCV Bronco Club LLCMIMG XCVII 300 At The Circle LLCMIMG XCIX The Heights LLCMIMG XCVIII Sugar Pines Sub LLCMIMG XCVIII Westchester Sub LLCMIMG XCVIII Westport Station Sub, LLCMIMG C Somerset Sub LLCMIMG C Woodridge Sub LLC

3,309 Units 5,572 Units 8,461 Units

MIMG CVI Rosewood Sub LLCMIMG CVII Hunters Ridge Sub LLCMIMG CVII Southpointe Sub LLCMIMG CIX Burwick Farms LLCMIMG CVIII Mill Creek Sub, LLCMIMG CVIII Woodridge Sub, LLCMIMG CVIII Woodlands Sub, LLCMIMG CX Brookwood LLCCMC 2 The New Fountains, LLCMIMG CXI Waterford West LLC

MIMG LXXVIII Summit LLCMIMG LXXX San Angelo LLCKR Spring Mill Apartments, LLCMIMG LXXXIII Little Rock Master, LLCMIMG LXXXIV Waukegan Master, LLCMIMG LXXXV Mill Creek LLCMIMG LXXXVII Castle Bluff LLCMIMG LXXXIX Van Buren Village LLCMIMG LXXXVI River Chase LLCMIMG XC Villages At Symmes LLCMIMG LXXXVIII Old Farm Shores LLC

2016 - 2017

7,575 Units

MIMG CI MT Carmel Sub, LLCMIMG CI Hearth Hollow Sub LLCMIMG CII Les Chateaux LLCMIMG CIV Lakeside Sub LLCMIMG CIV Hampton Sub LLCMIMG CIV San Mateo Sub LLCMIMG CIV Solano Sub LLCMIMG CIV Highland Sub LLCCMC 1 Meadows of Coon Rapids, LLCMIMG CIII Timber Cove, LLCMIMG CV Hamilton Trace LLCMIMG CVI Pecan Grove LLC

Opening Remarks

Bob Nicolls

Meet the Team!

Andy and Chuck

2016 Performance

Andy Newell, CEO and CFO

Refinances and Supplemental Loans

Refinances 2016

Supplemental Loans 2016

Property Name LocationSupplemental

Distribution Amount

Supplemental Distribution %

Ramblewood Apartments Ft. Collins, CO 4,294,000$ 113%Stone Grove Apartments Burnsville, MN 2,160,000$ 48%Eden Park Apartments Brooklyn Park, MN 1,904,850$ 45%City Limits Minneapolis, MN 1,700,000$ 50%Woodman Park Apartments Dayton, OH 3,000,000$ 50%

Total 13,058,850$

Property Name LocationRefinance

Distribution Amount

Refinance Distribution %

Tiffany Woods Muskegon, MI 2,640,000$ 80%Mountaineer Village Gunnison, CO 1,200,000$ 100%Vantage Point Apartments Little Rock, AR 2,640,000$ 60%LeClaire Apartments Moline, IL 1,050,000$ 50%Stonebridge Beavercreek, OH 2,535,000$ 52%The Hills Kansas City, MO 2,036,250$ 45%Heritage Knoll Kettering, OH 412,500$ 30%

Total 12,513,750$

Our Track Record – Historic ReturnsMonarch has raised $632.1 M to date…

…and distributed over $425 M

14%Average quarterly

distributions

23.5%Total Annualized

distributions to date

32.9%Total Annualized

return (realized & unrealized)

28 M49 M

72 M30 M

49 M26 M

0 M

20 M

40 M

60 M

80 M

100 M

120 M

2014 2015 2016

Quarterly Refinance

Current Loan Portfolio

$2 M$27 M

$2 M

$78 M

$42 M$63 M

$85 M

$44 M $47 M $44 M

$89 M

$173 M

$108 M

$197 M

$293 M

$7 M $9 M $6 M$0 M

$50 M

$100 M

$150 M

$200 M

$250 M

$300 M

$350 M

Tota

l Due

at M

atur

ity

Loan Maturity By Year (Millions)

Total Due at Maturity

Amortization of a Loan• At current rates:• A 10 year loan will amortize by 19% over the life of the loan• A 15 year loan will amortize by 32% over the life of the loan

Original LTV 70% LTV 80% LTV

10 year; LTV at maturity

57% LTV 65% LTV

15 year; LTV at maturity

48% LTV 55% LTV

* Assumes no appreciation and 5% interest rate, no interest only

Loan Stress Testing

2012 2013 2014 2015 2016 2017Assets Analyzed 34 51 63 81 109 138

Average Current Rate 5.14% 4.75% 5.11% 4.87% 4.71% 4.58%

Average Stress Rate without 2 year Cash Paydown 11.37% 10.80% 10.89% 9.95% 9.56% 9.46%

Average Stress Rate with 2 Year Cash Paydown (No Quarterly

Distributions)13.80% 12.84% 13.32% 11.89% 10.33% 10.24%

Rent Sensitivity

Rent Sensitivity

0

2

4

6

8

10

12

Vaca

ncy

%

Quarter

US Rental Vacancy: FRED

Tax Update

The House Blueprint• Full Expensing• Elimination of interest deduction• Elimination of 1031 Exchanges

Tax Update

Operations Update

Chuck Lavezzi, COO

& the BMC Team

Role as COO• Assist Bob in the operations of the Company• Primary responsibility working with the asset managers• Also work with Training, Marketing, Employee Relations, and Recruiting• BMC Team

Betsy, Maureen & Chuck (and Bryan)• Liaison between the field and the home office• Mentoring and Training• Work with the regional managers and the asset managers

• Policies• Procedures• Uniformity and consistency

• Underperforming Properties• Site Visits• Joining in on calls• New perspective, old tricks

New Initiatives• No money orders• Purchase Order System• Yardi Inspection and Concierge • Utility Billing• Recruiting

• Jobvite• Referral and Signing Bonuses

• Training• Yardi Trainer• National Leasing Trainer• Roving Manager / Trainers

• Rotational Analysts• Analyst with asset management team, site level operations, accounting, reporting and/or

marketing

Fine Tuning• Utility Billing (we’ll save $1 / unit / month)• Renewal Program• Commission Structure• Rent Café / CRM• Peliton• Fire Inspections and Flyers• Employee Recognition and Programs

• Presidents Club, Golden Hammer, Butterfly Award , Medal of Honor• Education reimbursement, tool reimbursement, boot and jacket policy

• National Accounts• Wilmar, Lowes, Sherwin Williams, Mohawk • PEP Programs

• Marketing• Regional Marketing Managers

Portal Demo

Curtis Pottle

Tenant Experience / Website

Balthazar Ely

Closing RemarksBob Nicolls

Questions?

Monarch Investment and Management Group�Annual Investor MeetingSlide Number 2Opening RemarksMeet the Team!Slide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10Slide Number 11Slide Number 12Slide Number 13Slide Number 14Slide Number 16Slide Number 17Slide Number 18Slide Number 19Slide Number 20Slide Number 21Slide Number 22Slide Number 23Slide Number 242016 PerformanceSlide Number 26Refinances and Supplemental LoansOur Track Record – Historic ReturnsSlide Number 30Slide Number 31Loan Stress TestingRent SensitivityRent SensitivityTax UpdateTax UpdateOperations UpdateRole as COOBetsy, Maureen & Chuck (and Bryan)New InitiativesFine TuningPortal Demo��Curtis PottleTenant Experience / Website��Balthazar ElySlide Number 45Multifamily 2017 Outlook- Monarch Investor ConferenceThe Yardi Matrix House View….How do Things Look Now?….How do Things Look Now?….GDP Growth��Quarterly Job GrowthReal Estate Fundamentals: DemographicsMillennial TailwindsMany Young Adults Still Living at HomeRenting Rising as Homeownership SlipsTotal Housing Supply Lags Demand Since the RecessionFuture Rental Demand Looks StrongInflation- Low, but not for Rent, Education, & HealthcareNational Apartment Rent Growth Trends vs. Wage GrowthClass B Assets Insulated From Near Term Supply PressuresAbsolute Rent Spreads by Asset Type have WidenedUS Multifamily Sales Price Per Unit-Index 2008=100“Running Away From the Herd” Enables a Higher Ongoing Cash Yield National Employment Rank by Metro Y-O-Y Absolute Change Through December 2016Monarch Markets Employment Rank�Y-O-Y Absolute Change Through December 2016 – SOLIDLY IN THE MIDDLESupply Pipeline - NationalEmployment vs Supply; Several Markets in Danger of 2017 OversupplyMonarch Specializes in Largely “Unloved” Markets Monarch Operates in Less Volatile, Steadier MarketsMonarch Market PerformanceMonarch Market ForecastsSUMMARYDisclaimerContact InformationClosing RemarksQuestions?��Please feel free to raise your hand or text your questions to 720-840-8954