March 2025 Newsletter

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NEWSLETTER

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OPENING REMARKS Happy start to 2025!

Tailwind is excited for all that is in store for the new year. As you will see in this quarter’s newsletter, we have a lot of changes and exciting news at Tailwind – 2025 will surely be a year that will kick off a new era and amazing growth and potential.

As you will note, Brandon Smith has recently taken the reigns as President and CEO of the Company. Brandon’s long history with Tailwind, especially in the Operations Department, surely will only strengthen his leadership role. Lane Gravely, former President, is moving into a “Chief People Officer” role. Lane will focus on developing all leaders at the Company for further strength and growth in all departments. Tailwind has also recently hired a CFO, Jake Ouradnik. Jake has worked for Tailwind for many years in a third-party accountant role. Jake’s background, experience and expertise will surely stage the company in a springboard of growth and will be a major resource for the Investor Relations Department.

Many exciting changes for the start of the year and to come in structure, organization and promise for the Company.

As we look back at 2024, the Investor Relations department successfully closed on $100 Million of capital for new acquisitions. Of that capital, we established over 70 new relationships with first time Tailwind Group Investors. Further, $51.2 Million of investor capital was returned by the completion of the real estate cycle in dispositions. We were blessed to have organized and attended investor events in Des Moines, Mankato and Sioux Falls – where we were able to review the current state of Tailwind, the portfolio, the current student housing market, and investment opportunities. The Tailwind Investor Relations Department’s focus is the relationship with our investor. Being able to spend time with everyone at our events is an important piece for all of us on the Tailwind team.

2025 will bring more opportunities for investment – more properties, campuses, and more investor relationships. Our goal is to meet with as many of our investors as possible, through events (watch for information on events in California, Iowa, South Dakota, Minnesota and Florida) and as many meetings, lunches, and coffees as we can. We look forward to connecting with you!

KRYSTAL PIERCE

Vice President of Investments & General Counsel

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LEADERSHIP TRANSITION BRANDON SMITH APPOINTED PRESIDENT & CHIEF EXECUTIVE OFFICER Tailwind Group’s Managing Principals announced and appointed Brandon Smith as its President and Chief Executive Officer. Brandon’s duties as CEO will begin effective immediately. Lane Gravley will continue his role as president over the next several months and will transition responsibilities to Brandon over that same period.

Smith has served in various roles for the past ten years at Tailwind Group, starting as a Leasing Agent in 2014. In his most recent role as Vice President of Operations and Development, he has successfully pioneered the growth and development of Tailwind Group’s student housing portfolio, which now contains nearly 17,000 bedrooms across 36 unique properties. He has also played a crucial role in the organization’s acquisition strategy, with an intent focus on value-added renovations. “Brandon is the best person to lead the next phase of Tailwind Group’s growth and transformation. He has demonstrated excellent leadership, vision, and an innovative mindset ideal for propelling Tailwind Group forward”, said Michael Sather, one of Tailwind Group’s founders and Managing Principals.

“I am beyond excited and honored to serve in this new role,” said Smith. “I have countless people to thank for trusting and believing in me. I especially want to recognize the founders of Tailwind Group and Lane for investing so much in me over the years; I certainly would not have had this opportunity without them. I also must thank the hundreds of Tailwind Group team members who work so hard daily to make all this possible.”

LANE GRAVLEY TRANSITIONING TO CHIEF PEOPLE OFFICER Lane Gravley has served as Tailwind Group’s President for the past four years and has overseen tremendous growth, the formation of the company structure, and the implementation of leadership principles. Upon the successful transition of responsibilities as President to Smith, Gravley will transition full-time into the newly created role of Chief People Officer.

In this new role, Gravley will exclusively focus on Tailwind Group’s most important asset: its people. His day-to-day responsibilities will involve working with company leaders to optimize the team member experience, coaching principles of leadership development, and maintaining and enhancing Tailwind Group’s workplace culture. “Brandon is the perfect fit to lead Tailwind Group into the next phase. I have thoroughly enjoyed working with him over the past four years and am excited to continue to work with him and other company leaders on my true passion, which is people and culture”, said Gravley.

“I have learned so much from Lane over the past years,” said Smith. “His passion for people and their personal and professional development is unrivaled, so we are extremely excited to see him take on and embrace this new role. I hope all our team members see this as a major commitment to ensure that even as our company grows, we will never let it be at the expense of our people and culture.”

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MARKET RECAP

The information below is from the Yardi Matrix Student Housing Report as of December 2024.

ENROLLMENT Preliminary data shows total enrollment across Yardi 200 schools increasing 2.9% as compared to Fall 2023, with undergraduate enrollment up 3% and graduate enrollment up 2.1%. Freshman enrollment, however, declined 5% YoY, which could be partly attributed to the problematic FAFSA rollout this year, with public schools being more affected than private ones. Schools in the South and West regions saw the greatest enrollment growth, and the only 3 states that saw a decline were Missouri, West Virginia & New Hampshire. According to Yardi, the college age population, which has been increasing since 2019, is expected to drop 1.6% in the next 10 years.

University of South Dakota saw the highest enrollment growth in 2024 (7.6%), followed by Oklahoma State (7.4%). Kansas (5.6%) & Arkansas (4.6%) were the other schools from our portfolio that made the top 15.

RENT GROWTH Rent growth averaged 6% for AY 23/24, which is down 0.6% from the previous year as growth depreciated late in the leasing season. 35 of the Yardi 200 markets saw 10+% rent growth, but 23 markets posted rent declines. Larger markets with high multifamily supplies were typically ones that struggled to raise rents. The Southeast region experienced the highest rent growth at 7.3% (rates avg $843), while the Northeast experienced the least (2.2%). The West continues to be the most expensive region, averaging $1,077 per bed.

Power 4 schools outperformed non-power 4 schools in terms of rent growth, led by large primary state schools. Interestingly, schools with lower acceptance rates saw the highest rent growth trends, and as expected, schools with higher enrollment saw higher rent growth trends. Additionally, the highest rent growth was seen in properties 2-2.9 miles from campus rather than those that are situated closer.

Beds closest to campus, however, are still the most expensive, with a gradual discount with increased distance from campus.

PIPELINE + SUPPLY + TRANSACTIONS The Southeast and Midwest are where the most short-term bed deliveries will be, with University of Iowa forecasted to have 3,507 off campus beds delivered between 2025-2026. Texas A&M came in second (3,060 beds), followed by Tennessee, Florida State, Minnesota & Wisconsin. In terms of sales activity, 2024 has been dominated by large state schools. Across student housing, Yardi has recorded 91 transactions with 45,188 beds sold at a price of $104,038 per bed and a total sales volume of $3,457,600,000.

OVERALL OUTLOOK Yardi Matrix expects another great year for student housing with preleasing on par with the last two years, but slower rent growth particularly in markets with high supply, both on- and off-campus as well as traditional multifamily. Longer-term the sector will continue to face less competition from new supply, primary state schools will benefit from the consolidation of higher education, and the Sunbelt and West will have less pressure from demographics.

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PORTFOLIO UPDATE

400+ EMPLOYEES 17,500+ BEDS 19 STATES 37 PROPERTIES $100M+ ANNUAL REVENUE $1.2B+ IN ASSETS MANAGED

GAINESVILLE

Tailwind Group (“Tailwind”) is a top twenty owner and manager of off-campus student housing in the United States. They take a unique approach to property management and value-add creation at all their student housing assets, which has allowed them to aggressively grow over the past several years.

Its assets under management have doubled since the beginning of 2021. Today, they operate 35 unique properties in 14 different states across 20 college communities that make up nearly 16,500 bedrooms.

Their portfolio occupancy exceeds 95% which is outperforming the rest of the industry by nearly 3%.

Tailwind’s hands-on and direct sales strategy allowed year-over-year rent growth from 2023 to 2024 to achieve almost 11%, which was nearly double the industry average.

Tailwind’s 400+ team members manage over $1.2B in assets. They have developed a robust corporate support structure which provides direct support in areas of property management, leasing and marketing, corporate operations, technology, accounting, asset management, leadership development, and human resources. They put an intense focus on people, which helps to carry out their mission of, “Fighting for the highest possible good of the people that matter most: our team members, residents, investors, and communities we serve.”

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TAILWIND GROUP SPOTLIGHT

JACOB OURADNIK AS CHIEF FINANCIAL OFFICER Tailwind Group is pleased to announce its recent hire of Jacob Ouradnik, who will serve as the organization’s Chief Financial Officer (CFO).

Ouradnik is an experienced finance and accounting executive with various experiences in business and individual tax planning, 1031 exchanges, real estate and business structure formation, and financial review. He most recently served as a Certified Public Accountant (CPA) and Partner at one of the top accounting firms in the Midwest, where he primarily serviced clients in the real estate industry. Tailwind Group had previously been one of Ouradnik’s key clients for several years.

Ouradnik will work as CFO alongside the Principals and the Executive Leadership Team. He will oversee the corporate finance, accounting, and data analytics teams, guide all financial operations for Tailwind Group, and play a pivotal role in shaping its financial strategy and supporting its long-term objectives. “I am thrilled to join an organization that heavily emphasizes their culture and lives by a very entrepreneurial mindset. Working as a service provider for Tailwind allowed me to meet many team members and see how the company functions from a distance. I cannot wait to be actively involved in the future of Tailwind and the great opportunities that lie ahead,” commented Ouradnik.

Tailwind Group’s CEO, Brandon Smith, commented, “We are ecstatic to welcome Jake to the team. He is an accomplished financial leader who is already familiar with Tailwind Group’s entities and real estate portfolio. He has a strong track record of developing and implementing strategic initiatives and is a great leader of people. We look forward to working together and know his contributions to Tailwind Group will be significant.”

Smith continued, “Jake will play a pivotal role as we continue to grow and scale our real estate portfolio and develop our team members.”

TOP 25 STUDENT HOUSING RANKINGS We’re proud to share that Tailwind Group has been featured in Student Housing Business as one of the Top 25 Student Housing Owners and Managers.

• Ranked #17 on the Top 25 Student Housing Owners list

• Ranked #20 on the Top 25 Student Housing Managers list This recognition wouldn’t be possible without the dedication and hard work of our onsite teams. Your commitment drives our success, and we’re grateful for everything you do to help us grow year after year.

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CASE STUDY

College Town Oxford University of Mississippi

INVESTMENT OVERVIEW

No. Beds

1,018

Year Built (Phase 1 & 2)

2013/2016

No. Units

292

Amenity Renovations (Tailwind)

2021

Acquisition Type

Value-Add

Equity Type

Friends & Family, HNWI

Lender Type

Bank

Acquisition Date

4/17/2021

Hold Period

3 Yrs

Disposition Date

4/30/2024

Distributions

$41,729,142

ROI Annualized

58%

Equity Multiple

2.8x

Capital Improvements Execution • Modern upgrades to clubhouse and fitness center • Fresh exterior paint scheme • New pool furniture

Property Management Execution

• Mark-to-market rents; repositioned as top tier property in Oxford market • Lease to 100% with upgrades and rising enrollment at Ole Miss • Major expense savings (cancellation of cable contract, utility savings project)

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CURRENT EVENTS INVESTOR EVENT - PALM SPRINGS, CALIFORNIA

Tailwind Group had a fantastic evening of networking with investors in Palm Springs, California.

It was a pleasure connecting with both current and future investors in person and fostering meaningful conversations.

We sincerely appreciate everyone who took the time to join us. Stay tuned for details on our next investor event—we look forward to seeing you again soon!

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TAILWIND GIVES BACK - THIELEN FOUNDATION

The Thielen Foundation aims to create programs that serve, educate and inspire individuals so they are equipped and empowered to reach their full potential in life.

Achieve your full potential” is a guiding principle lived out by Adam every day and is meant to inspire and motivate individuals to overcome challenges and adversity so they are able to tackle some of life’s biggest goals.

In November, Tailwind Group had the privilege of being one of the sponsors for the Thielen Foundation event in Charlotte, North Carolina. All proceeds from the event went toward a local High School gym renovation project. Partnering with the Thielen Foundation was a meaningful opportunity for us to make a lasting impact on student-athletes in the Charlotte community. We appreciate and value the opportunity to support the causes supported by our investors.

TAILWIND GROUP’S JOURNEY & LEGACY VIDEO

Through innovation and a dedicated team, we’re shaping the future of student living. Watch this video to explore our journey and legacy, and see how we’re making a lasting impact in student housing.

CLICK THE LOGO TO WATCH!

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INVESTMENT OPPORTUNITIES

HUNTSVILLE IMMEDIATE CASH-ON-CASH DISTRIBUTIONS

The Connection offers investors an opportunity to invest in one class with attractive returns.

• Class B: 7% Preferred Return +8% Supplemental Return + 25% Residual Profit

The Connection is located 1.3-miles north-west from the heart of the Sam Houston State University.

After completion of the $3,160,000 renovation, The Connection will have a brand-new fitness center and re luxurious common area for tenants.​ Tailwind looks to implement our high-end management strategy to rejuvenate the property, rebuilding a need of reparations.

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PROPERTY DETAILS 288 792 2008 1,183 $2,005 $633 78% UNITS

BEDS

YEAR BUILT

AVG. UNIT SIZE (SF)

AVG. MARKET RENT/UNIT

AVG. MARKET RENT/BED

CURRENT OCCUPANCY

efreshed amenity spaces providing a community that’s been in desperate

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INVESTMENT OPPORTUNITIES TAILWIND INCOME FUND I OFFERING TYPE: 10% PREFERRED RETURN

The Tailwind Group is excited to introduce the Tailwind Income Fund I. This fund will focus on value-add st which remain the cornerstone of the Tailwind portfolio. Tailwind Income Fund I offers accredited investors diversify their portfolios, with the potential to achieve an annual return of 10%. By investing in multiple real is preferred in structure, this fund provides built-in diversification, unlike investing in a single real estate as Tailwind Income Fund I will play a key role in driving the continued growth and success of our portfolio, tha thematic investment strategy in the value-add student housing sector.

Investors

Tailwind Income Fund I

Altitude Columbus

The Qua

The Quarters Auburn

Ohio State University *Note Structure Investment

Sam Hous *Preferred

Auburn University *Note Structure Investment

Future Project

*Pref

*Note Structure or Preferred Equity Investment

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FUND HIGHLIGHTS

tudent housing opportunities, a unique opportunity to estate assets, at a level which sset. We are confident that the anks to our high conviction and

INVESTMENT STRATEGY

• Generate strong cash on cash returns through Preferred Equity & mezzanine debt investments • Diversification in Assets: 4 - 7 projects • Liquidity Flexibility

WHY PREFERRED EQUITY & MEZZANINE DEBT

• Protection Priority over common equity in the capital structure

• Demand Tighter bank lending standards; lower initial loan to value • Project Type Value-Add Projects provide ability to refinance and repay investment

PURPOSE OF FUND

• Refinancing Provide capital to projects refinancing debt

• Property Improvement Provide capital to assets needing capital improvement

• Acquisition Capital Provide capital to acquire new Tailwind assets

BLENDED TAX TREATMENT

• Tax impact varies depending upon underlying investments

arters Huntsville

• If investment as Preferred, taxed as capital gains

ston State University d Equity Investment

• If investment as unsecured notes, taxed as ordinary income (interest income)

INVESTMENT CRITERIA

• Tailwind Sponsored Projects • Value-Add Student Housing

Future Project

• Investment Size: $5M - $10M

ferred Equity Investment

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• Income Fund Distribution: 10% • Term: 3 - 5 years

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