Tailwind Investor Newsletter - Fall 2025 by Tailwind Group

INVESTOR

LETTER FROM THE PRESIDENT

BRANDON SMITH

President

& CEO

Fall is my favorite time of year. Yes, the weather gets colder, and the days get shorter, but everything else brings me energy. The leaves change, football season is in full swing, and some of the best family holidays occur. At Tailwind Group, it also marks turning the page from one academic year to another. Leasing has completely wrapped up for the 2025-2026 academic year (AY), and we had successful move-ins across the country in August. Properties reset with new fiscal year budgets, and our teams get a fresh start with new goals and initiatives. As such, we have fully turned our attention to the 2026-2027 AY and pre-leasing is already off to the races.

In our Summer newsletter, I mentioned that the student housing industry and our portfolio were in a unique position with leasing velocity and rental rate growth leveling off or declining from the prior year. As the dust settled, the industry did experience declines in both occupancy and rate growth from the prior two cycles. According to College House, an independent 3rd party that tracks over 1.5M off-campus student housing beds, current occupancy in the industry sits just below 92%. Rate trends for the 25-26 pre-leasing cycle grew 1.6% over the course of the leasing cycle.

Other challenges facing the sector, that we are paying close attention to include:

• Continued pressure from parents and University administrations to encourage students not to sign their lease “too early”

• International student enrollment declines

• Affordability crises

To combat these issues, we have shifted strategies for the 26-27 lease-up to ensure that we have actionable, real-time data in our teams’ hands, allowing us to be more proactive to local market changes. Organizationally, we have implemented an entirely new approach to asset management, which puts 100% of the department’s focus on the execution of our underwritten business plans. With that, our teams meet weekly on leasing performance and evaluate velocity, rental rates, concessions, marketing analytics, what our competitors are doing, and what impact any changes may have on the long-term goals. We have also built a new tiered net effective rent system which allows much more flexibility to capitalize on strong markets and make minor adjustments earlier in markets with headwinds. Our core focus is revenue optimization. We also meet weekly as a leadership team to strategize and discuss any market or assets that are not meeting expectations, so we can apply the appropriate pressure to reassign resources and make the necessary adjustments to drive a positive outcome. Lastly, we have hired five full-time traveling corporate team members whose sole focus is on driving operational and leasing performance at assets that have staffing vacancies, major events (like grand openings, housing fairs, renewal deadlines), or just simply need more operating muscle. This allows our regional leadership teams to spend more time thinking about strategy and performance.

We are extremely confident that all these changes, combined with our continued and persistent focus on our culture and leadership development, will lead to stronger outcomes for the 26-27 AY.

We take very seriously the trust you put in the Tailwind Group team with your investment and will continue to work tirelessly to achieve the best outcome for that investment. In our newly rolled out Mission Statement, we have memorialized that in that we are “Fighting for the highest possible good of our investors.” It is our steadfast commitment to continue to do so over the next year and for many years beyond. I truly believe we have built a leadership team that is geared up for the long-haul, and we could not be more excited about the future of the industry and our ability to achieve our long-term goals at Tailwind Group.

Respectfully,

OPENING REMARKS

KRYSTAL PIERCE Chief Relationship Officer & General Counsel

As Minnesota transitions from summer to fall and Thanksgiving approaches, I want to begin this season’s Investor Newsletter with a heartfelt note of gratitude. The Investor Relations team at Tailwind has grown and evolved over the past year, and I’m incredibly thankful for the talented individuals who are helping position our company for continued success and growth in the upcoming academic year.

We deeply appreciate the support and trust of our investor base. Your confidence in our mission enables us to broaden our reach and pursue new opportunities. It’s a privilege to work alongside such dedicated partners.

Expanding Our Investment Offerings

To meet the diverse needs of our current and prospective investors, we’ve introduced new investment vehicles designed to offer flexibility and strategic growth:

Tailwind Income Fund I (Preferred Equity)

• Designed for investors focused on Preferred Equity (Class A)

• Offers diversification by investing in Tailwind offerings as the Preferred Class

• Targeting a 10% annualized cash-on-cash return

• Rapidly gaining popularity among our investor base

Large Capital Fund (Common Equity) – Coming Soon

• Designed for investors seeking to invest $2 million or more

• Participates in the Common Member (Class B) investment class

• Offers diversification across Tailwind offerings

If you’re interested in learning more about the upcoming Large Capital Fund, please don’t hesitate to reach out.

Property-by-Property Investment Opportunities

We will continue to offer Common Member (Class B) investments on a property-by-property basis. Our goal is to maintain competitive structures that deliver:

• Cash-on-cash returns

• Annual accrued returns

• Flexibility and transparency

Tailwind aims to acquire 6–8 properties per year and dispose of 1–2, ensuring a dynamic and balanced portfolio. Please keep all of these options in mind as you look towards your personal 2026 investment strategy.

Thank you for your continued partnership. Strengthening existing relationships and building new ones is the most rewarding part of my role. I look forward to connecting with many of you in the coming year.

Warm regards,

INDUSTRY UPDATES

CAPITAL MARKETS

• As of November 11, 2025, the 10-year U.S. Treasury yield stands at 4.11%, having traded in a range of approximately 3.95% to 4.16% over the past 30 days. This is below its level from a year ago, when it hovered between 4.28% to 4.54%.

• After two consecutive 25bps rate cuts in September and October, the Federal Funds rate sits at 3.87% as of November 7, 2025, the lowest since late 2022. A supplemental December cut, however, is not a ‘foregone conclusion’ according to Powell due to mixed inflation and employment data so the target for now remains 3.75% to 4.00%.

• The SOFR forward curve continues to reflect expectations of declining short-term rates over the next 12–18 months. As of November 7, 2025, 1-month SOFR is at 3.95%, and is projected to fall as low as 3.10% over the next few months. This provides relief for borrowers who have floating rate debt in their portfolios.

• The flattening or inverted yield curve continues to influence capital structuring decisions. Floating-rate debt remains attractive in the near term, with forward curves suggesting improved cash flow potential as short-term rates decline.

• CRE loan originations rose 48% YoY through calendar year Q3 to $587B. Refinancings accounted for 55% of that volume, driven by falling rates and a wave of maturing debt.

Real Estate Lender Summary:

• Agency: Active, competitive spreads, benefitting from stabilized rates. They remain competitive on stabilized assets with strong in-place cash flow. Spreads on student housing are in the 180-200 range over treasuries, leverage tops out at 70%.

• Life Co’s: Active, competitive pricing, cash flow constrained, market share has dropped YoY. Typically looking for straightforward loan opportunities with strong in-place cash flow.

• Debt Funds: Very active, plethora of capital, their cost of capital remains higher. However, with SOFR declining, their interest rates are becoming more attractive.

• Banks: Active, focused on sponsor, tightening spreads and competing with leverage subject to 1.15-1.20x. Bank lending jumped 85% YoY as large banks have become more aggressive and are open to starting relationships with new sponsors with spreads in the 170-180 range. Swaps are priced in the low 5.00% range.

Recent Debt Quotes

• Bank #1

• Loan amount: $28,000,000

• 5-year term

• Option to fix the interest rate via a swap at 5.75%

• 1-years interest only, then 30-year amortization

• 73% LTV

• Transaction type: Refinance

• Debt Fund #1

• Loan amount: $30,270,000

• 3 + 1 + 1 term

• 1-month SOFR + 2.75%

• Option to purchase a rate cap at 4.00%

• 3-years interest only, then 30-year amortization

• 79% LTV

• Transaction type: Refinance

• Bank #3

• Loan amount: $28,000,000

• 3 + 1 + 1 term

• 1-month SOFR + 1.75%

• Option to fix the interest rate via a swap at 5.00%

• 3-years interest only, then 30-year amortization

• 65% LTV

• Transaction type: Refinance

• Bank #4

• Loan amount: $19,630,000

• 3-year term

• Prime less 0.50% (6.50% today)

• 2 years interest only, then 30-year amortization

• 80% LTV

• Transaction type: Value-add acquisition

STUDENT HOUSING

• According to CollegeHouse, as of 11/18, national pre-leasing is 31.7%, which is 1.4% behind 2025 velocity. Rent growth projected at 3%.

• Tailwind portfolio is 34% pre-leased, which is 2.3% ahead of the national average, 7.3% ahead of prior year, and projecting 5% overall rent growth.

• Tailwind market selection and timing of entry continues to be one of our best differentiators in the space. Tailwind currently owns and operates in 5 out of the Top 10 performing markets in the country.

• New Construction deliveries continue to decline, which is expected to continue with inflated construction costs, interest rates, tariff uncertainty and depth of top end of market.

• Affordability remains an industry discussion point, positioning Tailwind’s business model very well for the future.

• International student demand remains a concern; however overall national international student market share is only less than 5% of overall off-campus supply. This remains a heavily market-specific concern.

TAILWIND PORTFOLIO

As of November 20th 2025

• Q3 saw some industry consolidation with Yugo/Global Student Accommodation acquiring Campus Advantage’s management operation and portfolio. 34% 2.3% 7.3% 5%

PORTFOLIO

AHEAD OF NATIONAL AVERAGE

AHEAD OF PRIOR YEAR

PROJECTED OVERALL RENT GROWTH

MARKET RECAP

The information below is from College House: National Student Housing Report - 2025 - 2026 Leasing Cycle: Year in Review

Regional Average Rate Per Bed

National average rent reached $1,006 per bed, a +3.0% YoY increase. While growth has moderated from recent highs, rates remain on an upward trajectory, fueled by supply constraints and steady enrollment. The Northeast led all regions with a +5.2% rent growth, driven by demand in legacy urban markets and limited new deliveries. The Midwest followed at +4.6%, signaling increased pressure in historically affordable areas. Meanwhile, the West posted a slight decline (-0.1%), hinting at affordability ceilings or saturation in key metros. Despite regional variation, students continue to prioritize location and quality, sustaining firm rent performance even as affordability concerns grow.

+3.0%YOY

$1,006 NATIONAL AVERAGE

CONFERENCE SPOTLIGHT: Leasing Performance by Conference

STANDOUT MARKETS:

Auburn, Oxford, Gainesville

The SEC posted a rent growth of +4.12%, paired with a strong average occupancy of 94.5%. Flagship schools continue to benefit from rising enrollment, limited supply growth, and premium position near campus.

Big Ten markets continue to see steady rent growth +1.42% and consistent occupancy 91.28%. Urban pressure and a competitive conventional market led to mixed results in come metros, but midwestern core markets remain stable. WEST

STANDOUT MARKETS:

West Lafayette, Bloomington, Minneapolis

TAILWIND GROUP PROPERTIES

STANDOUT MARKETS: Ames, Lawrence, Stillwater

Big 12 properties achieved +1.02% rent growth and 91.7% occupancy. Markets like Stillwater and Ames saw accelerated demand despite broader affordability concerns.

STANDOUT MARKETS: Raleigh, Miami, Tallahassee

While still solid, the ACC trailed peer conferences slightly in rent and occupancy. 93.1% occupancy and +3.56% rent growth suggest greater pricing sensitivity or competitive inventory within the conference.

RECENT DISPOSITION

Altitude Baton Rouge

We are pleased to announce that the sale of Altitude Baton Rouge successfully closed on October 28, 2025.

The property was acquired on March 29, 2023, and over the course of just two and a half years, Tailwind effectively executed its proven business strategy. This resulted in a successful exit, delivering investors an average equity multiple of 1.29x and an average IRR of 11.3%.

This transaction marks another strong addition to our growing track record. After pausing distributions in April 2025, Tailwind implemented strategic improvements and enhanced the property’s reputation. These efforts led to a significant rebound in 2025, culminating in a profitable sale. As a result, we were able to catch up on all unpaid accruals, return investor capital in full, and provide a payout on the 10% pro-rata share of the promote.

No. Beds

No. Units

Year Built

Amenity Renovations

Acquisition Type

Equity Type

Lender Type

Acquisition Date

Hold Period

Disposition Date

Investor Level Return Summary

Distributions

Levered IRR

Equity Multiple

TAILWIND SPOTLIGHT

Tailwind Group Leadership Summit

In September, Tailwind Group hosted its annual Leadership Summit, bringing together team members from across the country for four days of collaboration, reflection, and forward thinking. The event focused on aligning around our company vision, celebrating achievements from the past year, and sharing strategies to drive continued growth and excellence across all divisions.

The Summit also provided a valuable opportunity for our leaders to connect, exchange ideas, and strengthen relationships that form the foundation of our culture. As Tailwind Group continues to grow, gatherings like this reinforce our commitment to innovation, integrity, and teamwork, ensuring we’re well positioned to create lasting value for our partners, investors, and communities.

CURRENT EVENTS

Building Connections Through Our Fall Investor Events

This fall, our team had the pleasure of hosting investor events in both Sioux Falls and Mankato, where we connected with many of our valued partners and friends. These gatherings provided a great opportunity to share updates on current projects, discuss what’s ahead for Tailwind Group, and continue strengthening the relationships that drive our collective success.

We’re incredibly grateful for the continued support and engagement of our investor community. Meaningful, in-person connections like these remind us that our work goes far beyond the deal itself, it’s about building long-term value and shared growth. We look forward to many more opportunities to connect in the months ahead!

Sioux Falls, South Dakota

Mankato, Minnesota

Kingdom Capital Fund

The evening brings together fellowship, dining, and both silent and live auctions, all in support of Kingdom Capital Fund’s mission to advance impactful kingdom work through its ongoing multiplication cycle. Tailwind Group is proud to support this meaningful cause and the lasting difference it continues to make.