FRED Newsletter - June 2023 - Volume 5, Issue 6

INFLATION Expanding and Contracting

By Peter Todd, Vice President of Construction

Inflation has been one of the hottest news headlines and discussed topics in our industry within the U S economy for the past two years Our development and construction projects have been stressed with the increased pace at which prices have risen Typically, our construction projects were increasing from 2% to 3 5% year-over-year, however, with the increased demand, supply chain shortages, and general increase in the pace of our industry, we have seen some of the products that we buy increase over 30% in one year!

Nevertheless, that is slowly changing The overall construction market is expected to contract 6% this year, with a shift in sector spending Warehousing, data center, and infrastructure volumes are expected to grow in 2023 through 2024, while single-family and commercial sectors will see lower volumes in 2023 We are of course in the multifamily market, however, our construction pricing is influenced by overall construction spending Building materials such as re-bar, sheet metal, and wood products are expected to see negative cost growth this year We will see swings in pricing and disruption sooner than other sectors because the velocity and repetitive nature of our projects are much higher than other sectors

With almost three years of enduring wild swings and extremes, supply chains are also progressing back up to speed and better in sync With COVID, there was a seemingly overreaction pattern that happened with this major disruption that most of us have not seen in our lifetimes When supply chains are in a state of disarray, prices increase to account for the disruption Supply chain activity has yet to normalize, but it’s slowly returning to pre-pandemic trajectories

Moreover, the consumer price index, which is an index of the variation in prices paid by typical consumers, increased to 4 9% in the past 12 months from April, official figures show That was down from 5% in March and marks the tenth month in a row that price rises have slowed This drop comes after the U S central bank sharply raised interest rates to try to control inflation

Multi-family construction can be very specific and foreseeable because of the similar product type and process that takes place As we build similar unit types and building sizes, we can account for the different geographical areas and see some interesting trade and product swings This information can help guide us in our decision-making, planning, and execution strategies Moreover, since Fiduciary Real Estate Development can have several projects a year, we have better buying power and insight into our costs as compared to the market

FRED HONORS PRIDE MONTH

We Are Not Going Anywhere

By Boone Baker, Assistant Property Manager, The 85

June is always one of my favorite times of year for a multitude of reasons. Not only is it the month that marks the celebration of the LGBTQ+ community and a recognition of the struggles and accomplishments of those who have fought for LGBTQ+ rights, it’s also the anniversary of when I finally allowed myself to accept who I truly was on the inside and be able to proudly announce to the world that I was gay. Mind you that this was in my mid-20's and after a full year of being involved in a long-distance relationship with my now fiancé (an absolute saint of a human being who I will never be able to thank enough for his strength, patience, and understanding).

For many members of the LGBTQ+ community, gay pride is a way to embrace their identity and be visible. It is an opportunity to express themselves freely, without fear of discrimination, and to show the world that they are proud of who they are and that they will not be silenced or oppressed.

At the same time, gay pride is also a reminder of the challenges and obstacles that the LGBTQ+ community has faced and continues to face. It is a recognition of the discrimination, violence, and hate that many LGBTQ+ individuals have experienced throughout history and that many unfortunately still experience today. While progress has been made, it is up to every member

of the community to continue to do our part in fighting for equal rights, representation and to show the world that we are not going anywhere!

GOOD NEWS

TYLER GIESE, Corporate

We moved! In February, we took a leap of faith a listed our house for sale in Madison with the hope of finding a new house in the greater Milwaukee area. After a grueling process and running out of hope, we found a home in our most desired neighborhood in Menomonee Falls.

ADRIANA PEREZ, Riverwood

I earned my ARM and graduated with my Master of Business Administration degree in the same week! I am so thankful for the opportunities that FRED has given me to further my industry knowledge and I am excited to have more free time after graduating from school!

MICHELLE BOZEMAN, Valley View

I sang the National Anthem on April 15th in Madison at the Madison Forward Soccer game. I also just took my first cruise to the Bahamas and got engaged on May 8th in the middle of the Atlantic Ocean!

JASON STREIT, Corporate

My Daughter, Alexandra, earned Girl Scouts Highest Award, the Gold Award on May 9, 2023 for her project "St. Joe's Curb Appeal Pollinator Garden." Alex worked with parish volunteers to plan and install a beautification garden using plant species native to Wisconsin that would attract and host a variety of pollinator species. She also created an educational video

about the importance of pollinators. In addition, Alex received the Girl Scout Pinnacle Award, which is given to Girl Scouts who have earned the Highest Award at all three levels (Bronze, Silver, and Gold). Click here to watch her video!

What Makes Them Shine

High Bluff Townhomes is located directly in between the two gorgeous lakeside communities of Grafton and Port Washington. The community consists of 202 units made up of 1BR, 2BR, & 3BR townhomes. With an abundance of sidewalks and close proximity to the Ozaukee Interurban Trail, our residents and their many pets love going out for a walk, an early-morning run, or a sunset bike ride! The countryside atmosphere helps promote a quiet and peaceful environment for all of our residents and guests. The team consists of Evan Diece (Property Manager), Allen Parnell (Maintenance Supervisor), and Te'Laha Wilson (Leasing Professional). Pool season is here! Our residents also enjoy our beautiful pool and sun deck all summer long, as it is the focal point of our annual resident appreciation party! If you're ever in the neighborhood, let us know as our team would love to show you the High Bluff Townhomes.

PROPERTY SPOTLIGHT

EMPLOYEE SPOTLIGHT

JODI GELINE Leasing Professional

50Twenty since a very young age. At 22, I deeply studied health and selfdevelopment and have since transformed a severe health issue in myself naturally when no doctor could ever help me. From my own transformation and love of helping people, I combined my two passions and created a business to help people heal past trauma and the hidden effects it has on the physical body. I am an emotional health coach and an energy healer. I’m clairvoyant and have other spiritual gifts. I’ve helped many people transform past trauma and health issues in their body naturally so they can live a healthy, vibrant, and happy life.

I've been called a health nut most of my life. Health has been my number one value

Sam is willing to help out in any way asked and always does so with a positive attitude. He has picked up responsibilities from Sarah (when she went part-time), has been helping development, and helping Steve and Craig with TIF submittals for Mount Pleasant. He embodies the FRED way.

FRED ANNIVERSARIES!

Kern - 5 Years

| Arbor Lakes

Conklin - 10 Years

Manager | Manchester Oaks

Mathew Schwartz - 5 Years

Superintendent | Corporate Julie Lincoln - 5 Years

Department Coordinator | Corporate

Trisha Dunton - 5 Years

| Corporate Veronica Aguilar - 10 Years Leasing Professional | Seasons at River View Michael Hafemann - 5 Years Maintenance Tech II | Creekwood Kasey Fries - 5 Years

Manager | High Bluff Townhomes Trevor Scott - 10 Years Property

| Fitchburg Square & Valley View

Robert Woods - 5 Years