Dividend: Senior Housing Sustainability Improvements

SECURE AFFORDABLE CAPITAL FOR YOUR SENIOR HOUSING PROPERTIES’

SUSTAINABILITY IMPROVEMENTS

Energy-efficient, zero-waste “green” senior housing is in demand by consumers today.

Aging adults and the people who care for them are voting with their wallets.

Sustainability upgrades help senior living complexes save money and contribute to residents’ well-being. Whether you own or manage an active adult complex, assisted living facility, memory care or other type of property for older consumers, keep these facts in mind:

101% People living in enhanced green buildings scored 101% higher on cognitive scores 1

50-90% Green buildings on average achieve an energy cost savings of 50-90% 2

95% 95% of clinicians & health system executives believe environmental sustainability improves the level of care provided at healthcare facilities 3

Plus, government requirements for maximizing commercial buildings’ sustainability keep getting tighter. Now is the time to meet these stricter mandates.

Reduced carbon footprint Lower utility consumption & costs

SUSTAINABLE IMPROVEMENTS DELIVER

Higher demand for your property Higher revenues More attractive spaces that promote wellness Happier and healthier residents (and their families and visitors)

1. Harvard University: The Impact of Green Buildings on Cognitive Function 2. UNECE (The United Nations Economic Commission for Europe) Sustainability Goals Report 3. High Profile

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C-PACE Financing for

SUSTAINABLE UPGRADES Commercial Property Assessed Clean Energy (C-PACE) financing is $0 down long-term financing that funds hard and soft cost improvements to reduce a property’s carbon footprint and utility consumption.

This solution can often replace higher cost mezzanine or preferred equity, and preserve working capital and future borrowing capacity.

NO LONG-TERM PERSONAL GUARANTEES Non-recourse.

INCREASES NOI Improves net operating income and property value.

CONVENIENT BILLING In most states, C-PACE is billed as a line item on your tax bill.

ZERO UPFRONT COSTS 100% financing of hard and soft costs.

RUNS WITH THE LAND It’s assumable by the next property owner.

PREPAY ANYTIME PACE assessments may be prepaid at any time.

Adding C-PACE to Your Capital Stack Can Generate Significant Savings.

Mezzanine Financing & Preferred Equity Vs. C-PACE Financing WITH C-PACE

TRADITIONAL Mezz/Pref $24M, 14%

100% — 90% —

C-PACE $8M, 5.5%

80% — 70% —

Using a $40 million project as an example: • C-PACE can routinely fund 20% of this project.

• C-PACE can reduce the total equity invested.

• The average blended rate drops by more than 1% with C-PACE.

Senior Debt $6M, 5%

60% — 50% —

Senior Debt $22M, 5%

40% — 30% — 20% — Equity $10M, 12%

8.10% WACC

10% — 0% —

Weighted Average Cost of Capital

Equity $10M, 12%

6.85% WACC

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All Project Lifecycles Qualify for C-PACE Financing NEW CONSTRUCTION | RETROFITS | COMPLETED PROJECTS & RECAPITALIZATIONS

Senior living owners and operators turn to C-PACE financing when they want to build a new facility or complex, are planning sustainable upgrades for an existing one, need to meet mandated resiliency initiatives, or want to be reimbursed for recently implemented energy-saving measures on their property.

C-PACE FUNDS COVER Efficiency Upgrades

Renewable Energy

Geo-Specific Requirements

• LED Lighting Systems & Controls

• Solar

• Seismic Strengthening

• Low-Flow Water Systems & Fixtures

• Energy Storage

• Weatherproofing & Storm Resiliency

• Elevators • Swimming Pools & Activity Centers • Broilers/Chillers • Irrigation Systems

• EV Charging Stations • Geothermal • Combined Heat & Power

• “Smart” Building Management Systems • Water Conservation & Reuse Infrastructure

• Building Envelope Including Doors, Insulation, Roofing, Windows

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Why DIVIDEND? Dividend Finance was among the first C-PACE Program Administrators and lenders, with more than a decade in the business. Countless commercial property stakeholders trust us to finance their sustainable development projects. And we’re owned by Fifth Third Bank, one of the nation’s largest banks, with more than $210 billion in assets.

CASE STUDY WHEN YOU WORK WITH DIVIDEND, YOU’LL GET: FOCUS Committed to financing a sustainable future INSIGHTS Deep understanding of sustainability trends FLEXIBILITY Customizable commercial loan solutions RELATIONSHIPS Long-term solutions and partnerships EXPERIENCE Backed by one of the US’s most trusted banks

Dividend funded $7.5 Million in PACE measures for three new construction properties, saving them $1.2 million in lifetime utility expenses. The average close time was six weeks, so the improvements could be made quickly and efficiently.

Is C-PACE Available in Your State?

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1. https://www.pacenation.org/pace-programs/

Today, 29 states plus Washington, DC have active programs. Several other states are currently developing PACE guidelines after having passed enabling legislation.

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READY TO START

YOUR PROJECT? Join the savvy senior living owners who discovered this alternative to high-cost sources of funds.

Connect with Dividend Finance today to see if C-PACE is right for you.

Prequalify Your Project

ONE CALIFORNIA STREET | SUITE 1500 SAN FRANCISCO, CALIFORNIA 94111 949.391.0678 dividendfinance.com/CPACE Chad.Kenny@dividendfinance.com