NOSHOW

DCF Analysis Input Sheet -4/8/2023Property Assumptions

1 Name Drug Store Tenant

2 Location Main and Main

3 Type of Property Retail

4 Purpose of Analysis Risk Analysis

5 Prepared By Scottsdale Analysts

6 Size (Square feet or Number of Units) 15,000

7 Assessed/Appraised Value of Land $3,200,000

8 Assessed/Appraised Value of Improvements $1,800,000

9 Assessed/Appraised Value of Personal Property

10 Useful Life of Improvements (Years) 39.0

11 Useful Life of Personal Property (Years)

12 Acquisition Price $1,000,000

13 Acquisition Costs

14 Potential Rental Income and Escalations Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

15 Potential Rental Income 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

16 Other Income (Collectable)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

17 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

18 Operating Expenses and Escalations Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11

19 Total Operating Expenses

Financing Assumptions 1st Mortgage 2nd Mortgage

20 Loan Amount

21 Interest Rate 7.50%

22 Amortization Period (Years) 20

23 Loan Term (Years) 20

24 Payments Per Year 12 12

25 Loan Costs

Investor/Owner Assumptions26 Ordinary Income Marginal Tax Rate 35.00%

27 Capital Gains Tax Rate 15.00%

28 Cost Recovery Recapture Tax Rate 25.00%

29 Total Capital to Invest $5,000,000

30 After Tax Reinvestment Rates $0 To 5.00%

31 $0 To 5.00%

$0 And above 5.00%

31 Anticipated Holding Period (1 - 10 Years) 10

32 Disposition Price 7.50%

33 Disposition Cost of Sale 3.50%

Annual Vacancy Rates (Percent of Potential Rental Income)

Instructions :

Clear & Reset

Input Cells Formula Cells Description Cells

Legend

Cash Flow Analysis Worksheet-Without FinancingProperty Name Drug Store Tenant Acquisition Price $1,000,000

Location Main and Main Plus Acquisition Costs $0

Type of Property Retail Plus Loan Costs $0

Size of Property (sf/units) 15,000 Minus Mortgages $0

Purpose of Analysis Risk Analysis Equals Initial Investment $1,000,000

Prepared by Scottsdale Analysts

Date Prepared April 8, 2023

MORTGAGE DATA COST RECOVERY DATA BASIS DATA1st Mortgage 2nd Mortgage Improvements Personal Property

Amount Value $1,800,000 $0 Acquisition Price $1,000,000

Interest Rate C. R. Method SL SL Acquisition Costs $0

Amortization Period Useful Life 39.0 0 Total Acquisition Basis $1,000,000

Loan Term In Service Date 1-Jan 1-Jan

Payments/Year Date of Sale 31-Dec 31-Dec

Periodic Payment 12 Months % age 2.564% 0.000%

Annual Debt Service 11.5 Months % age 2.457% 0.000%

Loan Fees/Costs

TAXABLE INCOME

End of Year 1 2 3 4 5 6 7 8 9 10 11

1 POTENTIAL RENTAL INCOME $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

2 -Vacancy & Credit Losses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

3 EFFECTIVE RENTAL INCOME $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

4 +Other Income (collectable) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

5 GROSS OPERATING INCOME $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

6 TOTAL OPERATING EXPENSES $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

7 NET OPERATING INCOME $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

8 -Interest-First Mortgage $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

9 -Interest-Second Mortgage $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

10 -Cost Recovery-Improvements $44,226 $46,152 $46,152 $46,152 $46,152 $46,152 $46,152 $46,152 $46,152 $44,226

11 -Cost Recovery-Personal Property $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

12 -Loan Costs Amortization $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

13 -

14 -

15 REAL ESTATE TAXABLE INCOME ($44,226) ($46,152) ($46,152) ($46,152) ($46,152) ($46,152) ($46,152) ($46,152) ($46,152) ($44,226)

16 Tax Liability (Savings) at 35% ($15,479) ($16,153) ($16,153) ($16,153) ($16,153) ($16,153) ($16,153) ($16,153) ($16,153) ($15,479)

CASH FLOW17 NET OPERATING INCOME (LINE 8) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

18 -Annual Debt Service $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

19 -

20 -

21 -

22 CASH FLOW BEFORE TAXES $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

23 -Tax Liability (Savings) (Line 17 ) ($15,479) ($16,153) ($16,153) ($16,153) ($16,153) ($16,153) ($16,153) ($16,153) ($16,153) ($15,479)

24 CASH FLOW AFTER TAXES $15,479 $16,153 $16,153 $16,153 $16,153 $16,153 $16,153 $16,153 $16,153 $15,479

Note: Do not enter any information on this sheet. All values are derived from Input Sheet.

Cash Sale Worksheet-Without FinancingMORTGAGE BALANCES

End of Year: 1 2 3 4 5 6 7 8 9 10

Principal Balance - 1st Mortgage $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Principal Balance - 2nd Mortgage $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

TOTAL UNPAID BALANCE $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

CALCULATION OF SALE PROCEEDSEND OF YEAR 1 2 3 4 5 6 7 8 9 10

PROJECTED SALES PRICE (Rounded to nearest 000) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

CALCULATION OF ADJUSTED BASISBasis at Acquisition $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000,000

+Capital Additions $0

-Cost Recovery (Depreciation) Taken $0 $0 $0 $0 $0 $0 $0 $0 $0 $457,668

-Basis in Partial Sales $0

=Adjusted Basis at Sale $0 $0 $0 $0 $0 $0 $0 $0 $0 $542,332

CALCULATION OF CAPITAL GAIN ON SALESale Price $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

-Costs of Sale $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

-Adjusted Basis at Sale (Line 5) $0 $0 $0 $0 $0 $0 $0 $0 $0 $542,332

-

=Gain or (Loss) $0 $0 $0 $0 $0 $0 $0 $0 $0 ($542,332)

-Straight Line Cost Recovery (limited to gain) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

-Suspended Losses $0

=Capital Gain from Appreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

ITEMS TAXED AS ORDINARY INCOMEUnamortized Loan Fees/Costs (negative) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

+

=Ordinary Taxable Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

CALCULATION OF SALE PROCEEDSSale Price $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Cost of Sale $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

-Participaiton Payments on Sale $0

-Mortgage Balance(s) $0 $0 $0 $0 $0 $0 $0 $0 $0

+Balance of Funded Reserves $0

=SALE PROCEEDS BEFORE TAX $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

-Tax (Savings)on Ordinary Income (Line 22 x 35%) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

-Tax on Cost Recovery Recapture (Line 17 x 25%) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

-Tax on Capital Gain (Line 19 x 15%) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

=SALE PROCEEDS AFTER TAX $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Note: Do not enter any information on this sheet. All values are derived from other sheets.

NPV And IRR-Without Financing

Before Tax After TaxEOY $ EOY $

0 ($1,000,000) 0 ($1,000,000)

1 $0 $0 1 $15,479 $0

2 $0 $0 2 $16,153 $0

3 $0 $0 3 $16,153 $0

4 $0 $0 4 $16,153 $0

5 $0 $0 5 $16,153 $0

6 $0 $0 6 $16,153 $0

7 $0 $0 7 $16,153 $0

8 $0 $0 8 $16,153 $0

9 $0 $0 9 $16,153 $0

10 $0 + $0 10 $15,479 + $0

IRR = Err:523 IRR = Err:523

NPV @ Err:523 = Err:523 NPV @ Err:523 = Err:5230 0

O ($1,000,000) O ($1,000,000)1 $0 1 $15,479 2 $0 2 $16,153 3 $0 3 $16,153 4 $0 4 $16,153 5 $0 5 $16,153 6 $0 6 $16,153 7 $0 7 $16,153 8 $0 8 $16,153 9 $0 9 $16,153

10 $0 10 $15,479

Input Cells Formula Cells Description Cells

Legend

Cash Flow Analysis Worksheet-With FinancingProperty Name Drug Store Tenant Acquisition Price $1,000,000

Location Main and Main Plus Acquisition Costs $0

Type of Property Retail Plus Loan Costs $0

Size of Property (sf/units) 15,000 Minus Mortgages $0

Purpose of Analysis Risk Analysis Equals Initial Investment $1,000,000

Prepared by Scottsdale Analysts

Date Prepared April 8, 2023

MORTGAGE DATA COST RECOVERY DATA BASIS DATA1st Mortgage 2nd Mortgage Improvements Personal Property

Amount $0 $0 Value $1,800,000 $0 Acquisition Price $1,000,000

Interest Rate 7.50% 0.00% C. R. Method SL SL Acquisition Costs $0

Amortization Period 20 0 Useful Life 39.0 0 Total Acquisition Basis $1,000,000

Loan Term 20 0 In Service Date 1-Jan 1-Jan

Payments/Year 12 12 Date of Sale 31-Dec 31-Dec

Periodic Payment $0.00 $0.00 12 Months % age 2.564% 0.000%

Annual Debt Service $0 $0 11.5 Months % age 2.457% 0.000%

Loan Fees/Costs $0 $0

TAXABLE INCOME

End of Year 1 2 3 4 5 6 7 8 9 10 11

1 POTENTIAL RENTAL INCOME $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

2 -Vacancy & Credit Losses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

3 EFFECTIVE RENTAL INCOME $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

4 +Other Income (collectable) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

5 GROSS OPERATING INCOME $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

6 TOTAL OPERATING EXPENSES $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

7 NET OPERATING INCOME $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

8 -Interest-First Mortgage $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

9 -Interest-Second Mortgage $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

10 -Cost Recovery-Improvements $44,226 $46,152 $46,152 $46,152 $46,152 $46,152 $46,152 $46,152 $46,152 $44,226

11 -Cost Recovery-Personal Property $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

12 -Loan Costs Amortization $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

13 -

14 -

15 REAL ESTATE TAXABLE INCOME ($44,226) ($46,152) ($46,152) ($46,152) ($46,152) ($46,152) ($46,152) ($46,152) ($46,152) ($44,226)

16 Tax Liability (Savings) at 35% ($15,479) ($16,153) ($16,153) ($16,153) ($16,153) ($16,153) ($16,153) ($16,153) ($16,153) ($15,479)

CASH FLOW17 NET OPERATING INCOME (LINE 8) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

18 -Annual Debt Service $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

19 -

20 -

21 -

22 CASH FLOW BEFORE TAXES $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

23 -Tax Liability (Savings) (Line 17 ) ($15,479) ($16,153) ($16,153) ($16,153) ($16,153) ($16,153) ($16,153) ($16,153) ($16,153) ($15,479)

24 CASH FLOW AFTER TAXES $15,479 $16,153 $16,153 $16,153 $16,153 $16,153 $16,153 $16,153 $16,153 $15,479

Note: Do not enter any information on this sheet. All values are derived from other sheets.

Cash Sale Worksheet-With FinancingMORTGAGE BALANCES

End of Year: 1 2 3 4 5 6 7 8 9 10

Principal Balance - 1st Mortgage $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Principal Balance - 2nd Mortgage $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

TOTAL UNPAID BALANCE $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

CALCULATION OF SALE PROCEEDSEND OF YEAR 1 2 3 4 5 6 7 8 9 10

PROJECTED SALES PRICE (Rounded to nearest 000) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

CALCULATION OF ADJUSTED BASISBasis at Acquisition $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,000,000

+Capital Additions $0

-Cost Recovery (Depreciation) Taken $0 $0 $0 $0 $0 $0 $0 $0 $0 $457,668

-Basis in Partial Sales $0

=Adjusted Basis at Sale $0 $0 $0 $0 $0 $0 $0 $0 $0 $542,332

CALCULATION OF CAPITAL GAIN ON SALESale Price $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

-Costs of Sale $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

-Adjusted Basis at Sale (Line 5) $0 $0 $0 $0 $0 $0 $0 $0 $0 $542,332

-

=Gain or (Loss) $0 $0 $0 $0 $0 $0 $0 $0 $0 ($542,332)

-Straight Line Cost Recovery (limited to gain) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

-Suspended Losses $0

=Capital Gain from Appreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

ITEMS TAXED AS ORDINARY INCOMEUnamortized Loan Fees/Costs (negative) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

+

=Ordinary Taxable Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

CALCULATION OF SALE PROCEEDSSale Price $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Cost of Sale $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

-Participaiton Payments on Sale $0

-Mortgage Balance(s) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

+Balance of Funded Reserves $0

=SALE PROCEEDS BEFORE TAX $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

-Tax (Savings)on Ordinary Income (Line 22 x 35%) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

-Tax on Cost Recovery Recapture (Line 17 x 25%) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

-Tax on Capital Gain (Line 19 x 15%) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

=SALE PROCEEDS AFTER TAX $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Note: Do not enter any information on this sheet. All values are derived from other sheets.

NPV And IRR-With Financing

Before Tax After TaxEOY $ EOY $

0 ($1,000,000) 0 ($1,000,000)

1 $0 $0 1 $15,479 $0

2 $0 $0 2 $16,153 $0

3 $0 $0 3 $16,153 $0

4 $0 $0 4 $16,153 $0

5 $0 $0 5 $16,153 $0

6 $0 $0 6 $16,153 $0

7 $0 $0 7 $16,153 $0

8 $0 $0 8 $16,153 $0

9 $0 $0 9 $16,153 $0

10 $0 + $0 10 $15,479 + $0

IRR = Err:523 IRR = Err:523

NPV @ Err:523 = Err:523 NPV @ Err:523 = Err:5230 0

O ($1,000,000) O ($1,000,000)1 $0 1 $15,479 2 $0 2 $16,153 3 $0 3 $16,153 4 $0 4 $16,153 5 $0 5 $16,153 6 $0 6 $16,153 7 $0 7 $16,153 8 $0 8 $16,153 9 $0 9 $16,153

10 $0 10 $15,479

Input Cells Formula Cells Description Cells

Legend

Cost of Funds And Leverage ImpactBefore and After Tax Cost of Funds

Loan Information Non-discounted LoanLoan Amount $0 EOP $Interest Rate 7.50% 0 $0 Amortization Period 20 1 $0.00 Payments Per Year 12 Discount Points $0 Projected Holding Period 10 120 $0.00 +

Before Tax Cost =

Before Tax Cost of Funds x (1-Tax Rate) = After Tax Cost of Funds120.00%

Relationship Between Cost of Funds and Prorperty Yield

Cost of Funds

Before Tax 120.00% After Tax 78.00%

Effective Tax Rate and Yield Change

Before Tax Yield Err:523

After Tax Yield Err:523

Effective Tax Rate 35%

Mortgage Portfolio

Note: Do not enter any information on this sheet. All values are derived from other sheets.

Cost of Funds And Leverage ImpactBefore and After Tax Cost of Funds

Non-discounted Loan Discounted LoanEOP $

0 $0 1 $0.00

$0 120 $0.00 + $0

120.00% Before Tax Cost = 120.00%

Before Tax Cost of Funds x (1-Tax Rate) = After Tax Cost of Fundsx 65.00% = 78.00%

Relationship Between Cost of Funds and Prorperty Yield

Property Yield

Err:523 Err:523Err:523 Err:523

Effective Tax Rate and Yield Change

Err:523 Err:523 Err:523

Err:523 Err:523 Err:523

Err:523 Err:523

Real Estate Without Financing

Real Estate With

Financing

Note: Do not enter any information on this sheet. All values are derived from other sheets.

Capital Accumulation Without FinancingTotal Capital to Invest = $5,000,000

EOY $0 ($1,000,000)

1 $15,479 $0 5.00%

2 $16,153 + $16,253 = $32,406 5.00%

3 $16,153 $0 + $34,027 =

4 $16,153 $0 +

5 $16,153 $0

6 $16,153 $0

7 $16,153 $0

8 $16,153 $0

9 $16,153 $0

10 $15,479 + $0

IRR = Err:523

$5,000,000

Annual After Tax Compound Growth Rate of Capital

Total Capital Invested

Note: Do not enter any information on this sheet. All values are derived from other sheets.

($1,000,000)$15,479 $16,153 $16,153 $16,153 $16,153 $16,153 $16,153 $16,153 $16,153 $15,479

Capital Accumulation Without Financing

($4,000,000) 5.00%

$50,180 5.00%

$52,689 = $68,842 5.00%

+ $72,284 = $88,437 5.00%

+ $92,859 = $109,012 5.00%

+ $114,463 = $130,616 5.00%

+ $137,147 =

+

Capital Accumulation =

10 Years $6,717,032

Annual After Tax Compound Growth Rate of Capital 3.00%

Capital Accumulation

Note: Do not enter any information on this sheet. All values are derived from other sheets.

$6,515,579

$0

$0

$0

$0

$0

$0

$0

$153,300 $05.00%

$160,965 = $177,118 $0 5.00%

+ $185,974 = $201,453

Capital Accumulation = $6,717,032

Capital Accumulation With FinancingTotal Capital to Invest = $5,000,000

EOY $0 ($1,000,000) ($4,000,000)

1 $15,479 $0 5.00%

2 $16,153 + $16,253 = $32,406 5.00%

3 $16,153 $0 + $34,027 = $50,180 5.00%

4 $16,153 $0 + $52,689

5 $16,153 $0

6 $16,153 $0

7 $16,153 $0

8 $16,153 $0

9 $16,153 $0

10 $15,479 + $0

IRR = Err:523

$5,000,000

Annual After Tax Compound Growth Rate of Capital

Total Capital Invested

Note: Do not enter any information on this sheet. All values are derived from other sheets.

($1,000,000)$15,479 $16,153 $16,153 $16,153 $16,153 $16,153 $16,153 $16,153 $16,153 $15,479

Capital Accumulation With Financing

5.00%

= $68,842 5.00%

+ $72,284 = $88,437 5.00%

+ $92,859 = $109,012 5.00%

+ $114,463 = $130,616 5.00%

+ $137,147 = $153,300 5.00%

+ $160,965 =

+

Capital Accumulation =

10 Years $6,717,032

Annual After Tax Compound Growth Rate of Capital 3.00%

Capital Accumulation

Note: Do not enter any information on this sheet. All values are derived from other sheets.

$6,515,579

$0

$0

$0

$0

$0

$0

$0

$0

$177,118 $0 5.00%

$185,974 = $201,453

Capital Accumulation = $6,717,032

SummaryMeasures of Investment Performance

Before Tax IRR Err:523After Tax IRR Err:523After Tax Capital Accumulation $6,717,032 After Tax Annual Growth Rate of Capital 3.00%

Without Financing

Note: Do not enter any information on this sheet. All values are derived from other sheets.

SummaryMeasures of Investment Performance

Err:523Err:523

$6,717,032 3.00%

With Financing

Note: Do not enter any information on this sheet. All values are derived from other sheets.