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Tha Thank nk You t You to
- Our
SEIA Finance & SEIA Fina nce & Tax 101 Tax 101 Workshop - - PowerPoint PPT Presentation
SEIA Finance & SEIA Fina nce & Tax 101 Tax 101 Workshop - - PowerPoint PPT Presentation
2020 2020 ww www. w.seia ia.org rg SEIA Finance & SEIA Fina nce & Tax 101 Tax 101 Workshop Wo rkshop February 26, 2020 2020 2020 www.s .seia.o .org rg Thank Tha nk You t You to o Our Our Workshop Workshop Spo
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Twi Twitte tter r In Infor formation mation
Tweet with #SEIAFinTax to share your experiences at this event with others!
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Workshop Workshop Welcome Welcome & Introdu & Introduction ction
Tony Grappone Partner Novogradac
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Ses Sessio sion n 1: I 1: Int ntrodu roduction ction to Renewable to Renewable Energ nergy Tax y Tax Credit Credit Tax Tax Subs Subsidies idies
Steven Varady Principal Novogradac Kimberly Wojcik Associate Nixon Peabody LLP
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Introduction Introduction t to
- RETC
RETC Subsid Subsidies ies
Steven Varady, CPA Principal Novogradac & Company LLP 415.356.7930 Kimberly Wojcik Associate Nixon Peabody LLP 202.585.8430
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Re Rene newabl wable e Ene Energy Tax C rgy Tax Cre redit its
What is a tax credit?
Dollar for dollar reduction in federal tax liability $1 tax credit is $1 less of taxes which need to be paid to the government
What credits are available to renewable energy property?
Investment tax credit (IRC Section 48) Production tax credit (IRC Section 45) Residential energy efficiency credit (IRC Section 25D)
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Mor More e on
- n the
the Credi Credits ts
- Renewable energy tax credits are not refundable
- Any excess credit over a taxpayer’s tax liability is carried to
future years
- Carryback 1 year and forward 20 years
Tax Liability Tax Credits
No cash back for excess credit
1 year 20 years
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Th The e IT ITC C & PT & PTC
Investment Tax Credit (ITC) Production Tax Credit (PTC)
Investment-based Dollars spent on eligible property multiplied by applicable energy percentage Production-based kWh produced and sold to an unrelated third party multiplied by a specified credit rate
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PT PTC C Pr Property
- perty
Wind Open-loop biomass Closed-loop biomass Geothermal Small irrigation Municipal solid waste Marine and hydrokinetic Hydropower
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How How much much is the is the PT PTC
- PTC was initially 1.5 cents/kWh
- Annually adjusted, rounded to nearest 0.1 cent
- Begins the year the project is PIS and lasts 10 years
Property Type Price per kWh (2019) Wind $0.025 Closed-loop biomass $0.025 Open-loop biomass $0.012 Geothermal $0.025 Municipal Solid Waste $0.012 Marine and Hydrokinetic $0.012 Hydropower $0.012
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IT ITC C Pr Property
- perty
Solar Energy Property Fuel Cells Combined Heat and Power Systems Equipment which uses ground or ground water as a thermal energy source Small Wind (turbines less than 100kW) Qualified Microturbine Property
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How How Mu Much ch is the is the IT ITC? C?
- The ITC is an investment-based credit
- Credit is based on a dollars spent on eligible property,
multiplied by a specified percentage
Property Type Energy Percentage Solar * 30% (phases down) Fuel Cells 30% (phases out) Small Wind 30% (phases out) Combined Heat and Power 10% Microturbines 10% Geothermal 10%
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IT ITC C Pha Phase se down down for for Solar Solar Pr Property
- perty
- The ITC percentage for solar phases down over time
- Based on when construction began on a project
If construction begins after… and before… The resulting energy percentage is:
12/31/2015 1/1/2020 30%* 12/31/2019 1/1/2021 26%* 12/31/2020 1/1/2022 22%* 12/31/2021 TBD 10% * In order to be eligible for the energy percentage referenced above, projects must be placed in service by 12/31/2023,
- therwise, the credit percentage available to the project becomes 10%
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When When is the is the ITC ITC Ea Earn rned? ed?
- The ITC is generated 100% on the project’s placed in service date
- Vests 20% per year
- When is a project considered placed in service?
- Condition or state of readiness and availability for its specifically
assigned function;
- All necessary permits and licenses received (PTO);
- Synchronization into power grid; and
- Completion of critical tests
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When When is the is the ITC ITC Ea Earn rned? ed?
- The ITC is generated 100% on the project’s placed in service date
- Vests 20% per year
- When is a project considered placed in service?
- Condition or state of readiness and availability for its specifically
assigned function;
- All necessary permits and licenses received (PTO);
- Synchronization into power grid; and
- Completion of critical tests
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IT ITC-El Eligi igible ble Property Property
- In order to be eligible for the ITC, the energy property must:
- Be depreciable or amortizable;
- Have an estimated life in excess of 3 years; and
- Be tangible personal property or other property if such property is used
as an integral part in the production of electricity
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Solar Solar Pr Property
- perty El
Elig igibl ible e for for the the IT ITC
- Solar energy property generally includes:
- Collectors
- Racking
- Inverters
- Wiring
- Labor
- Certain soft costs
- Developer fee
- Consulting costs
- Engineering
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Cla Claimin iming g the the IT ITC
Must be an owner of the property for tax to purposes receive an allocation of the credits
- For ITC transactions, you must be an owner on the placed-in
service date
- Special rule for sale leaseback structures
- Pass-through election
- Allocated to members based on general profits allocation
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Recaptu Recapture re of
- f the
the IT ITC
ITC has a 5-year recapture period. Recapture occurs if..
- The property ceases to qualify as energy property, or
- There is a disposition of the property or an interest in the property
during the recapture period
PIS date
5-year recapture period
80% 60% 40% 20%
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Other Other Subsidies Subsidies Av Avai aila lable ble
Many states and local governments have additional subsidies available to solar projects:
- Accelerated depreciation (MACRS)
- Bonus depreciation
- State tax credits
- State rebates
- SREC programs
- Property tax exclusions
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Deprecia Depreciation tion
Most ITC-eligible property will be 5-year MACRS property
- Depreciated over a 5-year period
- 100% bonus depreciation currently available
Basis reduction equal to 50% of ITC taken
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Th The e Ne Need ed for for Ta Tax x Equ Equity ity
Large tax liability Access to capital Passive activity rules (Section 469):
- Apply to individuals and closely held corporations
- Limit taxpayers’ ability to use the depreciation and credits in an
efficient manner
At-risk rules (Section 465):
- Apply to individuals and closely held corporations
- Limit taxpayers’ ability to use the depreciation and credits in an
efficient manner
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Wha What t Does Does Ta Tax x Equ Equity ity Receive Receive
Cash
- Preferred Return
- Residual Allocations
- Put/Call Price
Tax Credits
- Up to a 99% allocation
Losses (depreciation)
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Wha What t Does Does Ta Tax x Equ Equity ity Pr Provide
- vide
Sponsor Equity Tax Credit Investor Equity Debt
- Tax Credit Investor Equity
- Capital contribution sized based on present
value of future expected benefits, discounted back at hurdle rate
- May be reflected as a price per credit allocated
- Portion of equity contributed at close and
during construction. Majority at substantial completion or placed-in service date
- Preferred return typically required in order to
receive “cash on cash” return / economic return
More on Tax Equity After The Break
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Ses Sessio sion n 2: F 2: Financing inancing Struct Structur ures es Part Part 1 1 – Partner Partnership ship Flip Flip and and Sa Sale le Le Leas asebac ebacks ks
Shariff Barakat Partner Nixon Peabody LLP Nat Eng, CPA Partner Novogradac
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Financing Structures Financing Structures Pa Part rt 1: Pa 1: Partnership rtnership Flips & Sa Flips & Sale le Leaseb Leasebacks acks
Matt Lockhart, CPA Principal Novogradac & Company LLP 212.801.7450 Shariff Barakat Partner Nixon Peabody LLP 202.585.8369 Stephen B. Tracy, CPA Partner Novogradac & Company LLP 212.801.7440
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Choosin Choosing g a S a Struc tructure ture
- The sale leaseback and partnership flip structures are
two of the most commonly used structures in the solar space
LLC
VS
Lease
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Wha What t to to Th Thin ink k About About
factors to consider
type
- f
credit sponsor tax appetite investor preference cost vs. fmv project level debt passive activity rules
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Par Partnership tnership Fli Flip p Overview Overview
- Partnership between sponsor/managing member and tax equity
investor
- Renewable energy project owned by partnership
- Project economics allocated to managing member/tax equity investor
based on their respective interest in each item of the partnership
- Upon achievement of certain milestones, the partnership “flips”
such that the managing member becomes the majority interest holder
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Par Partnership tnership Fli Flip
Tax Equity Investor Sponsor Project LLC Membership Interest Pre-Flip: 99% member Post-flip: 4.95% member Membership Interest Pre-Flip: 1% member Post-flip: 95.05% member Solar Partnership I, LLC
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Sample Sample Ta Tax x Equ Equity ity Terms Terms
- Investor contributes capital based on projected ITC
- Credit pricing can be anywhere from $1 to $1.20/ITC
- Investor receives majority of ITC
- Investor receives majority of income/loss in pre-flip period
- Subject to 704(b) capital account limitations
- Pre-tax IRR requirements
- 2-3%
- Interests flip upon achieving IRR or at pre-set date
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Ec Economics
- nomics of
- f a Fli
a Flip
Allows investor to enjoy...
Majority of ITC Depreciation Some cash flow
Allows Sponsor to enjoy…
Residual interest Margin on sale of assets or developer fee Annuitized cash flow
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Reve Revenue nue Pr Procedure
- cedure 2007
2007-65 65
- Safe harbor for partnership flip transactions
- Technically only applies to wind deals claiming Section 45 PTCs
- Generally applied to solar and ITCs due to a lack of guidance
- Service will closely scrutinize a partnership if the OA does not
satisfy the requirements of the safe harbor
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Reve Revenue nue Pr Procedure
- cedure 2007
2007-65 65
- Minimum managing member interest: 1%
- Minimum investor interest: 5% of highest interest
- Capital contributions
- 75% of contributions are fixed, and not contingent
- 20% contributed prior to placed-in service date
- Purchase Options
- Must be greater than or equal to FMV
- May not be within first 5 years of placed-in service date
- No guarantee of credits to investor
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Reve Revenue nue Pr Procedure
- cedure 2014
2014-12 12
- In response to the Historic Boardwalk Hall case, the Internal Revenue
Service released Revenue Procedure 2014-12 (“Rev. Proc. 2014-12”) in
- rder to provide a safe harbor for historic rehabilitation tax credit
transactions
- Minimum managing member interest: 1%
- Minimum investor interest: 5% of highest interest
- Capital contributions
- 75% of contributions are fixed, and not contingent
- 20% contributed prior to placed-in service date
- Purchase Options
- Managing member may not have a call option to purchase investor’s interest at
a later date
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Reve Revenue nue Pr Procedure
- cedure 2014
2014-12 12
- No funded guarantees
- The investor must have economic upside and downside and not
receive just a preferred return which is in the nature of a payment for capital
- The investor’s interest may not be reduced through
unreasonable fees compared to fees in transactions in non-tax credit transactions
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Types Types of
- f Fli
Flip p St Stru ructur cture
- Time-based flip: flip occurs based on a fixed and determinable
date
- Example: Flip Date defined as 5 years and 1 day after the project has
been placed in service
- Yield-based flip: flip date occurs once target IRR is achieved
- Example: Flip Date defined as the month following the date the investor achieves an
after-tax return of 9%
- PAYGO Structure: more common for wind. Multiple tranches of
equity contributed as PTCs earned
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Sale Sale Lease Leaseback back
- Developer installs project
- Developer sells project to investor and enters into a lease
- agreement. Investor claims ITC and depreciation
- Developer incurs all costs of operations and collects revenue
from host, remitting cash to investor in the form of master lease payment
- At end of master lease, developer may have option to purchase
project, extend lease or walk away, depending on business arrangement
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Sale Sale Lease Leaseback back
Master Lease Agreement Sale of Solar System 100% of Investment Tax Credits 100% of Depreciation Receives pre-payment and lease payments 100% of project financed less pre-payment Developer builds solar system Collects PPA, pays O&M and remits lease payments Option to purchase project or walk away
Developer, LLC (Lessee)
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Sale Sale Lease Leaseback back Overview Overview Overview Overview
- Developer installs project
- Developer sells project to investor and enters into a lease
- agreement. Investor claims ITC and depreciation
- Developer incurs all costs of operations and collects revenue
from host, remitting cash to investor in the form of master lease payment
- At end of master lease, developer may have option to purchase
project, extend lease or walk away, depending on business arrangement
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Th The e Lease Lease
- Lease prepayment very common
- The lease term in a sale leaseback transaction will exceed the 5-
year recapture period of the ITC
- Higher investor purchase price requires longer investment
horizon to reach required yield
- Lease terms of 10-15 years common
- At end of lease term, developer may have option to purchase
project or extend master lease
- Early buyout options possible
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Reve Revenue nue Pr Procedure
- cedure 2001
2001-28 28
Leveraged Lease Guidance
- Investor must have minimum investment equal to at least 20% of
property throughout lease term
- At end of lease, equipment must have remaining value equal to at least
20% of initial fair market value
- No bargain purchase options or put options allowed
- No part of cost of project may be furnished by the lessee
- No lessee loans (to finance project cost) or guarantees
- Profit requirement for lessor
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Capi Capital tal Compari Comparison son
Developer Capital Investor Capital
Generally requires the least capital compared to other structures Generally requires the most capital compared to other structures Developer receives 100% of the purchase price from Investor Investor pays developer 100% of the purchase price Portion of the purchase price may be required to be remitted as a master lease prepayment Portion of purchase price may be returned if there is a master lease prepayment Developer may have to contribute capital to pay progress payments to EPC Investor generally has access to debt to help finance purchase price
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Pr Pros
- s &
& Cons Cons
Advantages Disadvantages
Ability to provide 100% project financing. Not available for PTC transactions Developer may collect 100% of margin up front in some instances Developer must repurchase 100% of the project at fair market value 100% of tax benefits absorbed by Investor: Investment tax credits and depreciation Various indemnifications and guarantees Fixed rent schedule 90-day window to get investor into the deal after placed-in service Difficult to apply to a fund
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Fli Flip p vs vs. . Sale Sale Lease Leaseback back
Partnership Flip Sale Leaseback
Timing of tax equity investor entry Must be member of partnership by PIS date Must purchase system within 90 days of PIS date Components of tax equity investor return Investor receives majority of credits, majority of depreciation and some cash Investor receives 100% of ITC, 100% of depreciation and cash flows in the form of master lease payments Tax equity investor exit strategy Managing Member has option to purchase investor interest
- nce yield is met (as soon as 5
years after PIS date) Tax equity investor may provide lessee option to purchase facility at end of master lease
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Fli Flip p vs vs. . Sale Sale Lease Leaseback back
Partnership Flip Sale Leaseback
Types of transactions ITC and PTC ITC only Documentation All documentation remains with project company, no assignments or assumptions Sale from developer to tax equity investor requires numerous assignments of documents, which require third party consent Participation Allows for more ways to participate (syndicator, investor, lender). Syndication much easier in a flip Purchaser typically purchases project absent debt and other investors Capital stack Investor equity, sponsor equity, debt Investor equity only (prepaid master lease payment in some instances)
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Session ssion 3: 3: Fin Financi ncing ng Str truct uctur ures Pa s Part rt 2 2 – Inv Inver erte ted d Le Leases ses (aka ka Maste Master Lea r Leases a ses and nd Le Lease se Pa Pass ss Th Throu rough) gh)
Tony Grappone Partner Novogradac Kimberly Wojick Associate Nixon Peabody, LLP
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Ses Sessio sion n 4: Latest 4: Latest Struct Structur ure e Tr Trends ends and and Tax Tax Issues Issues
Tony Grappone Partner Novogradac Stephen Tracy, CPA Partner Novogradac Sharif Barakat Partner Nixon Peabody LLP
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Thank You!
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Certified Public Accountants COMPILATION OF A FINANCIAL FORECAST AND ACCOUNTANTS' COMPILATION REPORT Novogradac & Company LLP
LANDLORD & MASTER TENANT
P R E S E N T A T I O N F O R E C A S T
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LANDLORD & MASTER TENANT (the "Company") DISCLAIMERS
This financial forecast presents, to the best of management's knowledge and belief, the Company's expected financial position, results of operations, and cash flows for the forecast period. Accordingly, the forecast reflects its judgment as of [REPORT DATE], the date of this forecast, of the expected conditions and its expected course of
- action. The assumptions disclosed herein are those that management believes are
significant to the forecast. There will usually be differences between the forecasted and actual results, because events and circumstances frequently do not occur as expected, and those differences may be material.
5 ‐ DISC. See Accountants' Compilation Report and Summary of Significant Assumptions 2
P R E S E N T A T I O N F O R E C A S T
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BACKLEVERED DEBT 50,000,000 CAPITAL 26,361,500 ITCS ALLOCATED 465,000 MANAGING MEMBER EQUITY 511,500 TAX EQUITY INVESTOR (WIDELY HELD C COR 50,638,500 PRE FLIP (UNTIL) TOTAL SOURCES 51,150,000 5/31/2026 PROFITS / (LOSSES) 1.00% 5/31/2026 CASH FLOW 1.00% CAPITAL 50,638,500
Priority Return RESERVES HELD BY TENANT‐ 5/31/2026 PRIORITY RETURN 2.00% ITCS ALLOCATED 46,035,000 INVESTMENT IN LANDLORD 51,150,000
LegendTOTAL USES 51,150,000 POST FLIP (THEREAFTER) PRE FLIP (UNTIL)
Triangles: PartnershipsPROFITS / (LOSSES) 95.00% 5/31/2026 PROFITS / (LOSSES) 99.00%
Rectangles: Non PartnershipsCASH FLOW 95.00% 5/31/2026 CASH FLOW 99.00%
Solid Lines: Ownership5/31/2026 PRIORITY RETURN (FIRST 2.00% POST FLIP (THEREAFTER) PROFITS / (LOSSES) 5.00% CASH FLOW 5.00%
(paid from cash flow)CAPITAL EQUITY EQUITY ITCS ALLOCATED 51,150,000 75,850,000 PRE FLIP (UNTIL) OWNERSHIP OWNERSHIP 5/31/2026 PROFITS / (LOSSES) 40% 60% 5/31/2026 CASH FLOW 5/31/2026 PRIORITY RETURN (FIRST FIVE YEARS) POST FLIP (THEREAFTER) PROFITS / (LOSSES) CASH FLOW
TOTAL PROJECT COSTS PERMANENT LOA TOTAL PROJECT COSTS127,000,000 TOTAL USES 127,000,000 SPONSOR EQUITY AT LANDLORD 75,850,000 MASTER TENANT EQUITY 51,150,000 TOTAL SOURCES 127,000,000
LANDLORD & MASTER TENANT FINANCIAL FORECAST SUPPLEMENTAL SCHEDULE OF FORECASTED PARTNERSHIP OWNERSHIP DIAGRAM
Dotted Lines: Non‐ Ownership Flow of FundsMASTER TENANT TAX EQUITY INVESTOR (WIDELY HELD C CORP) SPONSOR/D EVELOPER LANDLORD
6 ‐ OC #1 See Accountants' Compilation Report and Summary of Significant Assumptions 3PRESENTATION FORECAST
SLIDE 54 GENERAL Ownership Entity LANDLORD & MASTER TENANT Structure Type Inverted Lease Business Purpose Produce and sell solar electricity Offtaker type(s) Utility PPA or Lease * PPAs Term(s) 20 Years Number of Facilities 1 Total ITC Eligible Amount (Based on Appraised FMV) 155,000,000 Total ITCs Allocated to Owners 46,500,000 Total Facility Size (DC) ‐ MW 110.00 Month business operations commence January 31, 2021 (Note: Estimated PIS date for Southwick ‐ 2/28/2015) Lease Begins 1/31/2021 Lease Ends 1/31/2046 OWNERSHIP MASTER TENANT ‐ PRE FLIP PERIOD MEMBER NAME TYPE Tax Credits Profits/Losses Operating Cash Flow TAX EQUITY INVESTOR (WIDELY HELD C CORP) INVESTOR MEMBERS / TAX EQUITY 99.00% 99.00% 99.00% SPONSOR/DEVELOPER SPONSOR 1.00% 1.00% 1.00% MASTER TENANT ‐ INITIAL FLIP PERIOD MEMBER NAME TYPE Tax Credits Profits/Losses Operating Cash Flow TAX EQUITY INVESTOR (WIDELY HELD C CORP) INVESTOR MEMBERS / TAX EQUITY 5.00% 5.00% 5.00% SPONSOR/DEVELOPER SPONSOR 95.00% 95.00% 95.00% Cash Flip March 31, 2026 Taxable Income/(loss) Allocation Flip Point Date (effective beginning) March 31, 2026 Master Landlord Managing Member Return of Capital % of Available Cash Flow 100% Up to an aggregate amount of: 75,850,000 Operating Reserve % of Available Cash Flow 50% Up to an aggregate amount of: 1,700,000 Release Date: January 31, 2046 TAX EQUITY INVESTOR TERMS Admission Month July 30, 2020 Fee to Tax Equity Investor Admission Month July 30, 2020 Purchase Option Month March 31, 2026 (paid at initial tax equity closing) ITCs Allocated 46,500,000 Total ITCs allocated to tax equity investor 46,035,000 Capital Commitment 50,638,500 Capital Commitment to ITC Ratio 1.10 Priority Return ‐ Commencement Month January 31, 2021 Priority Return ‐ Flip Term 2.00% % of Cumulative Capital Contributions CONSOLIDATED Contributions % of Total Commitment Amount of Contribution Conditions for Contribution Forecasted Dates First Installment 5.0% 2,531,925 Tax Equity Closing July 30, 2020 Second Installment 20.0% 10,127,700 Mechanical Completion September 30, 2020 Third Installment 75% 37,978,875 Placed in Service January 31, 2021 100% 50,638,500
LANDLORD & MASTER TENANT
FINANCIAL FORECAST SUMMARY OF SIGNIFICANT ASSUMPTIONS PRE FLIP POST FLIP 8 ‐ A 1 See Accountants' Compilation Report and Summary of Significant Assumptions 4P R E S E N T A T I O N F O R E C A S T
SLIDE 55 MASTER TENANT FORECASTED NET OPERATING INCOME ‐ TOTAL (MASTER TENANT) FOR THE PERIOD BEGINNING JULY 30, 2020 AND ENDING DECEMBER 31, 2061 NET OPERATING INCOME ‐ TOTAL (MASTER TENANT) YR# YEAR PPA REVENUE MERCHANT REVENUE MERCHANT REC REVENUE TOTAL REVENUE TAXES O&M COSTS SITE LEASE INSURANCE ASSET MANAGEMENT FEE OTHER TENANT NOI DSCR
1 2021 6,346,405 ‐ 300,000 6,646,405 (250,000) (600,000) (520,000) (75,000) (200,000) (155,000) 4,846,405 1.39 2 2022 6,428,696 ‐ 299,560 6,728,255 (250,000) (620,200) (520,000) (73,778) (200,000) (156,497) 4,907,780 1.41 3 2023 6,420,025 ‐ 299,120 6,719,145 (250,000) (641,081) (520,000) (72,577) (200,000) (158,064) 4,877,424 1.40 4 2024 6,542,180 ‐ 298,681 6,840,861 (250,000) (662,664) (520,000) (71,395) (200,000) (159,704) 4,977,098 1.43 5 2025 6,509,012 ‐ 298,242 6,807,254 (250,000) (684,974) (520,000) (70,232) (200,000) (161,421) 4,920,627 1.41
6 2026 7,646,259 ‐ 297,805 7,944,064 (250,000) (708,035) (520,000) (69,088) (200,000) (163,218) 6,033,723 1.73 7 2027 7,713,621 ‐ 297,368 8,010,988 (250,000) (731,873) (520,000) (67,963) (200,000) (165,097) 6,076,056 1.74 8 2028 7,700,877 ‐ 296,931 7,997,808 (250,000) (756,513) (520,000) (66,856) (200,000) (167,063) 6,037,376 1.73 9 2029 7,587,984 ‐ 296,495 7,884,479 (250,000) (781,982) (520,000) (65,767) (200,000) (169,120) 5,897,610 1.69 10 2030 7,548,247 ‐ 296,060 7,844,307 (250,000) (808,310) (520,000) (64,695) (200,000) (171,269) 5,830,033 1.67 11 2031 7,122,862 ‐ 295,626 7,418,488 (175,000) (835,523) (520,000) (63,642) (200,000) (173,517) 5,450,806 1.56 12 2032 7,203,089 ‐ 295,192 7,498,280 (175,000) (863,653) (520,000) (62,605) (200,000) (175,866) 5,501,156 1.58 13 2033 7,213,312 ‐ 294,758 7,508,071 (175,000) (892,730) (520,000) (61,585) (200,000) (178,321) 5,480,434 1.57 14 2034 7,108,807 ‐ 294,326 7,403,132 (175,000) (922,785) (520,000) (60,582) (200,000) (180,887) 5,343,878 1.53 15 2035 6,769,825 ‐ 293,894 7,063,719 (175,000) (953,853) (520,000) (59,596) (200,000) (183,568) 4,971,702 1.43 16 2036 6,698,520 ‐ 293,462 6,991,983 (175,000) (985,966) (520,000) (58,625) (200,000) (186,369) 4,866,023 1.40 17 2037 6,414,231 ‐ 293,031 6,707,263 (175,000) (1,019,161) (520,000) (57,670) (200,000) (189,294) 4,546,138 1.30 18 2038 6,454,168 ‐ 292,601 6,746,770 (175,000) (1,053,473) (520,000) (56,731) (200,000) (192,350) 4,549,216 1.30 19 2039 6,456,336 ‐ 292,172 6,748,507 (175,000) (1,088,941) (520,000) (55,807) (200,000) (195,541) 4,513,220 1.29 20 2040 6,489,890 4,552,022 291,743 11,333,654 (175,000) (1,125,602) (520,000) (54,898) (200,000) (198,873) 9,059,282 2.60 21 2041 ‐ 11,000,000 291,315 11,291,315 (175,000) (1,163,498) (520,000) (54,003) (200,000) (202,352) 8,976,461 0.00 22 2042 ‐ 9,264,532 290,887 9,555,419 (175,000) (1,202,670) (520,000) (53,124) (200,000) (205,984) 7,198,641 0.00 23 2043 ‐ 7,802,868 290,460 8,093,328 (175,000) (1,243,160) (520,000) (52,259) (200,000) (209,776) 5,693,133 0.00 24 2044 ‐ 6,571,810 290,034 6,861,844 (175,000) (1,285,014) (520,000) (51,407) (200,000) (213,734) 4,416,689 0.00 25 2045 ‐ 5,534,977 289,608 5,824,585 (175,000) (1,328,277) (520,000) (50,570) (200,000) (217,866) 3,332,873 0.00 26 2046 ‐ 4,661,724 289,183 4,950,907 ‐ (1,372,996) (520,000) (49,746) (200,000) (222,177) 2,585,988 0.00 27 2047 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 138,374,345 49,387,933 7,658,554 195,420,832 (5,125,000) (24,332,932) (13,520,000) (1,600,199) (5,200,000) (5,172,928) 140,889,772 11 ‐ NOI ‐ MT See Accountants' Compilation Report and Summary of Significant Assumptions 5PRESENTATION FORECAST
SLIDE 56
MASTER TENANT FORECASTED SOURCES AND USES OF CASH ‐ MASTER TENANT FOR THE PERIOD BEGINNING JULY 30, 2020 AND ENDING DECEMBER 31, 2061 ‐77.01% OPERATING SOURCES AND (USES) ‐ MASTER TENANT NOI 95% change to 22 yrs 90% Master Lease Term (Yrs) Lease End Beginning 25 12/31/2044 OPERATING SOURCES AND (USES) ‐ MASTER TENANT YR# YEAR NOI ‐ CASH CASH FROM LANDLORD MASTER LEASE TO LANDLORD ‐ BASE PRIORITY RETURN MASTER LEASE TO LANDLORD ‐ ADDITIONAL OPERATING RESERVE WITHDRAWALS / (DEPOSITS) CASH FLOW ‐ INVESTOR MEMBER CASH FLOW ‐ MANAGING MEMBER
1 2021 4,846,405 ‐ (3,419,598) (1,011,902) (368,853) (23,026) (22,796) (230) 2 2022 4,907,780 ‐ (3,424,433) (1,012,770) (410,672) (29,952) (29,653) (299) 3 2023 4,877,424 ‐ (3,412,845) (1,012,770) (417,067) (17,371) (17,197) (174) 4 2024 4,977,098 ‐ (3,390,084) (1,013,005) (509,207) (32,401) (32,077) (324) 5 2025 4,920,627 ‐ (3,486,747) (1,012,770) (393,387) (13,861) (13,723) (138)
6 2026 6,033,723 ‐ (3,486,747) (249,724) (1,041,369) (627,941) (80,586) (547,355) 7 2027 6,076,056 ‐ (3,486,747) ‐ (1,079,516) (754,896) (37,745) (717,151) 8 2028 6,037,376 ‐ (3,486,747) ‐ (1,072,003) (200,551) (63,904) (1,214,170) 9 2029 5,897,610 ‐ (3,486,747) ‐ (1,007,405) ‐ (70,173) (1,333,284) 10 2030 5,830,033 ‐ (3,486,747) ‐ (984,508) ‐ (67,939) (1,290,839) 11 2031 5,450,806 ‐ (3,486,747) ‐ (741,790) ‐ (61,113) (1,161,155) 12 2032 5,501,156 ‐ (3,486,747) ‐ (787,272) ‐ (61,357) (1,165,780) 13 2033 5,480,434 ‐ (3,486,747) ‐ (792,853) ‐ (60,042) (1,140,792) 14 2034 5,343,878 ‐ (3,486,747) ‐ (733,038) ‐ (56,205) (1,067,887) 15 2035 4,971,702 ‐ (3,486,747) ‐ (539,572) ‐ (47,269) (898,114) 16 2036 4,866,023 ‐ (3,486,747) ‐ (498,683) ‐ (44,030) (836,563) 17 2037 4,546,138 ‐ (3,486,747) ‐ (336,392) ‐ (36,150) (686,848) 18 2038 4,549,216 ‐ (3,486,747) ‐ (358,911) ‐ (35,178) (668,380) 19 2039 4,513,220 1,019,204 (3,486,747) ‐ (359,902) ‐ (84,289) (1,601,485) 20 2040 9,059,282 2,601,877 (3,486,747) ‐ (2,973,436) ‐ (260,049) (4,940,927) 21 2041 9,572,819 2,592,157 (3,500,000) ‐ (2,936,049) ‐ (286,446) (5,442,480) 22 2042 10,191,726 2,193,646 (3,500,000) ‐ (1,946,589) ‐ (346,939) (6,591,844) 23 2043 10,417,306 1,857,992 (3,500,000) ‐ (1,113,197) ‐ (383,105) (7,278,996) 24 2044 10,637,743 1,575,280 (3,500,000) ‐ (411,251) ‐ (415,089) (7,886,682) 25 2045 2,173,456 1,409,646 (3,500,000) ‐ ‐ ‐ (4,155) (78,947) 26 2046 ‐ 3,880,553 ‐ ‐ ‐ 1,700,000 (279,028) (5,301,525) 27 2047 ‐ 3,943,509 ‐ ‐ ‐ ‐ (197,175) (3,746,334) 28 2048 ‐ 4,007,339 ‐ ‐ ‐ ‐ (200,367) (3,806,972) 29 2049 ‐ 4,072,057 ‐ ‐ ‐ ‐ (203,603) (3,868,454) 30 2050 ‐ 4,137,676 ‐ ‐ ‐ ‐ (206,884) (3,930,792) 31 2051 ‐ 4,204,208 ‐ ‐ ‐ ‐ (210,210) (3,993,998) 32 2052 ‐ 4,269,653 ‐ ‐ ‐ ‐ (213,483) (4,056,170) 33 2053 ‐ 4,338,054 ‐ ‐ ‐ ‐ (216,903) (4,121,151) 34 2054 ‐ 4,407,408 ‐ ‐ ‐ ‐ (220,370) (4,187,038) 35 2055 ‐ 4,477,732 ‐ ‐ ‐ ‐ (223,887) (4,253,845) 36 2056 ‐ 4,549,037 ‐ ‐ ‐ ‐ (227,452) (4,321,585) 37 2057 ‐ 4,621,340 ‐ ‐ ‐ ‐ (231,067) (4,390,273) 38 2058 ‐ 4,694,654 ‐ ‐ ‐ ‐ (234,733) (4,459,921) 39 2059 ‐ 4,768,995 ‐ ‐ ‐ ‐ (238,450) (4,530,545) 40 2060 ‐ 4,844,376 ‐ ‐ ‐ ‐ (242,219) (4,602,157) 41 2061 ‐ 415,941 ‐ ‐ ‐ ‐ (20,797) (395,144) TOTAL 151,679,037 78,882,334 (86,934,920) (5,312,941) (21,812,924) ‐ (5,983,837) (110,516,748) 12 ‐ SU ‐ MT
See Accountants' Compilation Report and Summary of Significant Assumptions6
PRESENTATION FORECAST
SLIDE 57
MASTER TENANT FORECASTED TAXABLE INCOME / (LOSS) ‐ MASTER TENANT FOR THE PERIOD BEGINNING JULY 30, 2020 AND ENDING DECEMBER 31, 2061 TAXABLE INCOME / (LOSS) ‐ MASTER TENANT YR# YEAR NOI MASTER LEASE EXPENSE ‐ BASE MASTER LEASE EXPENSE ‐ ADDITIONAL INCOME/(LOSS) FROM LANDLORD EXCL. MG CHARGEBACK INCOME AND MG LOSS ALLOCATIONS TAXABLE INCOME/(LOSS) 1 2021 4,846,405 (3,419,598) (368,853) (47,244,563) (46,186,609) 2 2022 4,907,780 (3,424,433) (410,672) 1,504,336 2,577,010 3 2023 4,877,424 (3,412,845) (417,067) 298,560 1,346,072 4 2024 4,977,098 (3,390,084) (509,207) (100,000) 977,807 5 2025 4,920,627 (3,486,747) (393,387) (100,000) 940,492 6 2026 6,033,723 (3,486,747) (1,041,369) (100,000) 1,405,607 7 2027 6,076,056 (3,486,747) (1,079,516) (100,000) 1,409,792 8 2028 6,037,376 (3,486,747) (1,072,003) (100,000) 1,378,626 9 2029 5,897,610 (3,486,747) (1,007,405) (100,000) 1,303,457 10 2030 5,830,033 (3,486,747) (984,508) (100,000) 1,258,778 11 2031 5,450,806 (3,486,747) (741,790) (100,000) 1,122,268 12 2032 5,501,156 (3,486,747) (787,272) (100,000) 1,127,137 13 2033 5,480,434 (3,486,747) (792,853) (100,000) 1,100,834 14 2034 5,343,878 (3,486,747) (733,038) (100,000) 1,024,092 15 2035 4,971,702 (3,486,747) (539,572) (100,000) 845,383 16 2036 4,866,023 (3,486,747) (498,683) (100,000) 780,593 17 2037 4,546,138 (3,486,747) (336,392) (100,000) 622,998 18 2038 4,549,216 (3,486,747) (358,911) (100,000) 603,558 19 2039 4,513,220 (3,486,747) (359,902) 919,204 1,585,774 20 2040 9,059,282 (3,486,747) (2,973,436) 2,501,877 5,100,976 21 2041 8,976,461 (3,500,000) (2,936,049) 2,583,824 5,124,236 22 2042 7,198,641 (3,500,000) (1,946,589) 2,193,646 3,945,698 23 2043 5,693,133 (3,500,000) (1,113,197) 1,857,992 2,937,929 24 2044 4,416,689 (3,500,000) (411,251) 1,575,280 2,080,717 25 2045 3,332,873 (3,500,000) ‐ 1,409,646 1,242,519 26 2046 2,585,988 ‐ ‐ 3,880,553 6,466,541 27 2047 ‐ ‐ ‐ 3,943,509 3,943,509 28 2048 ‐ ‐ ‐ 4,007,339 4,007,339 29 2049 ‐ ‐ ‐ 4,072,057 4,072,057 30 2050 ‐ ‐ ‐ 4,137,676 4,137,676 31 2051 ‐ ‐ ‐ 4,204,208 4,204,208 32 2052 ‐ ‐ ‐ 4,269,653 4,269,653 33 2053 ‐ ‐ ‐ 4,338,054 4,338,054 34 2054 ‐ ‐ ‐ 4,407,408 4,407,408 35 2055 ‐ ‐ ‐ 4,477,732 4,477,732 36 2056 ‐ ‐ ‐ 4,549,037 4,549,037 37 2057 ‐ ‐ ‐ 4,621,340 4,621,340 38 2058 ‐ ‐ ‐ 4,694,654 4,694,654 39 2059 ‐ ‐ ‐ 4,768,995 4,768,995 40 2060 ‐ ‐ ‐ 4,844,376 4,844,376 41 2061 ‐ ‐ ‐ 415,941 415,941 ‐ ‐ ‐ ‐ TOTALS 140,889,772 (86,934,920) (21,812,924) 31,732,334 63,874,263 13 ‐ TI ‐ MT See Accountants' Compilation Report and Summary of Significant Assumptions 7
P R E S E N T A T I O N F O R E C A S T
SLIDE 58
MASTER TENANT SUPPLEMENTAL SCHEDULE OF FORECASTED TAX CREDIT INVESTOR RETURN ‐ ANNUAL (ASSUMING PUT OPTION EXERCISED) FOR THE PERIOD BEGINNING JULY 30, 2020 AND ENDING MARCH 31, 2026 INVESTOR BENEFITS SCHEDULE ‐ PRE‐PUT OPTION PERIOD: ANNUAL (ASSUMING PUT OPTION EXERCISED) (G) (K) (A) (B) (C) (E ) (F) (SUM OF A ‐ F) (H) (I) (J) (SUM OF H ‐ J) * TAX RATE (G + K) YR# YEAR CONTRIBUTIONS ITC PRIORITY RETRUNS OPERATING CASH FLOW PUT PROCEEDS ANNUAL NET CASH RETURN ALLOCATED INCOME (LOSS) 50D INCOME GAIN/(LOSS) ON EXIT BENEFITS/(BURDEN) FROM (LOSSES)/INCOME ANNUAL AFTER TAX BENEFIT CUMULATIVE AFTER TAX BENEFITS 1 2020 (12,659,625) ‐ ‐ ‐ ‐ (12,659,625) ‐ ‐ ‐ ‐ (12,659,625) (12,659,625) 2 2021 (37,978,875) 46,035,000 1,011,902 22,796 ‐ 9,090,823 (45,724,743) 4,603,500 ‐ 8,635,461 17,726,284 5,066,659 3 2022 ‐ ‐ 1,012,770 29,653 ‐ 1,042,423 2,551,240 4,603,500 ‐ (1,502,495) (460,072) 4,606,586 4 2023 ‐ ‐ 1,012,770 17,197 ‐ 1,029,967 1,332,611 4,603,500 ‐ (1,246,583) (216,616) 4,389,970 5 2024 ‐ ‐ 1,013,005 32,077 ‐ 1,045,082 968,029 4,603,500 ‐ (1,170,021) (124,939) 4,265,031 6 2025 ‐ ‐ 1,012,770 13,723 ‐ 1,026,493 931,087 4,603,500 ‐ (1,162,263) (135,770) 4,129,261 7 2026 ‐ ‐ 249,724 32,234 1,217,777 1,499,735 200,299 ‐ (4,218,626) 843,849 2,343,584 6,472,845 TOTAL (50,638,500) 46,035,000 5,312,941 147,680 1,217,777 2,074,898 (39,741,476) 23,017,500 (4,218,626) 4,397,946 6,472,845 6,472,845 Tax rate used in determining loss benefits: 21.00% ROI 12.78% SOUTHWICK 21.00%
16 ‐ IB 5A ‐ MT ‐ CONS See Accountants' Compilation Report and Summary of Significant Assumptions 8PRESENTATION FORECAST
SLIDE 59
1,217,777 5.00% of Capital Contributed 2,531,925 Call Price (Greater of NPV and 5.00% Cont. Capital) 1,217,777 FORECASTED GAIN FROM SALE ON INVESTMENT: Adjusted Basis of Investment Equity Contribution 50,638,500 Cumulative Allocated Income/(Loss) (39,741,476) Distributions (5,460,621) Adjusted Basis 5,436,402 Federal Net Gain/(Loss) for Tax Credit Investor (4,218,626) Tax Rate 21% Tax Benefit / (Burden) from Gain/Loss $885,911
MASTER TENANT SUPPLEMENTAL SCHEDULE OF PROJECTED POST‐FLIP NET PRESENT VALUE OF INVESTOR MEMBER CASH FLOW FOR THE PERIOD BEGINNING JULY 30, 2020 AND ENDING DECEMBER 31, 2061
NPV of Cash Flows @ 7.00% 24 ‐ R&E See Accountants' Compilation Report and Summary of Significant Assumptions 9
P R E S E N T A T I O N F O R E C A S T
SLIDE 60
MASTER TENANT SUPPLEMENTAL SCHEDULE OF FORECASTED TAX CREDIT INVESTOR RETURN ‐ ANNUAL (ASSUMING PUT OPTION NOT EXERCISED) ‐ CONSOLIDATED FOR THE PERIOD BEGINNING JULY 30, 2020 AND ENDING DECEMBER 31, 2061 INVESTOR BENEFITS SCHEDULE ‐ 30 YEAR: ANNUAL (ASSUMING PURCHASE OPTION NOT EXERCISED) ‐ CONSOLIDATED (F) (J) (A) (B) (C) (E) (SUM OF A ‐ E) (G) (H) {(SUM OF G ‐ I) * 0%} (F + J) YR# YEAR CONTRIBUTIONS INVESTMENT TAX CREDITS PRIORITY RETRUNS OPERATING CASH FLOW TOTAL CASH AND CREDITS TAXABLE INCOME/(LOSS) PARTNER 50D INCOME BENEFITS/(BURDEN) FROM (LOSSES)/INCOME ANNUAL NET BENEFITS CUMULATIVE NET BENEFITS
1 2020 (12,659,625) ‐ ‐ ‐ (12,659,625) ‐ ‐ ‐ (12,659,625) (12,659,625) 2 2021 (37,978,875) 46,035,000 1,011,902 22,796 9,090,823 (45,724,743) 4,603,500 8,635,461 17,726,284 5,066,659 3 2022 ‐ ‐ 1,012,770 29,653 1,042,423 2,551,240 4,603,500 (1,502,495) (460,072) 4,606,586 4 2023 ‐ ‐ 1,012,770 17,197 1,029,967 1,332,611 4,603,500 (1,246,583) (216,616) 4,389,970 5 2024 ‐ ‐ 1,013,005 32,077 1,045,082 968,029 4,603,500 (1,170,021) (124,939) 4,265,031 6 2025 ‐ ‐ 1,012,770 13,723 1,026,493 931,087 4,603,500 (1,162,263) (135,770) 4,129,261
7 2026 ‐ ‐ 249,724 80,586 330,310 400,598 ‐ (84,126) 246,185 4,375,445 8 2027 ‐ ‐ ‐ 37,745 37,745 70,490 ‐ (14,803) 22,942 4,398,387 9 2028 ‐ ‐ ‐ 63,904 63,904 68,931 ‐ (14,476) 49,428 4,447,816 10 2029 ‐ ‐ ‐ 70,173 70,173 65,173 ‐ (13,686) 56,487 4,504,303 11 2030 ‐ ‐ ‐ 67,939 67,939 62,939 ‐ (13,217) 54,722 4,559,024 12 2031 ‐ ‐ ‐ 61,113 61,113 56,113 ‐ (11,784) 49,329 4,608,354 13 2032 ‐ ‐ ‐ 61,357 61,357 56,357 ‐ (11,835) 49,522 4,657,876 14 2033 ‐ ‐ ‐ 60,042 60,042 55,042 ‐ (11,559) 48,483 4,706,359 15 2034 ‐ ‐ ‐ 56,205 56,205 51,205 ‐ (10,753) 45,452 4,751,811 16 2035 ‐ ‐ ‐ 47,269 47,269 42,269 ‐ (8,877) 38,392 4,790,203 17 2036 ‐ ‐ ‐ 44,030 44,030 39,030 ‐ (8,196) 35,834 4,826,037 18 2037 ‐ ‐ ‐ 36,150 36,150 31,150 ‐ (6,541) 29,609 4,855,646 19 2038 ‐ ‐ ‐ 35,178 35,178 30,178 ‐ (6,337) 28,841 4,884,486 20 2039 ‐ ‐ ‐ 84,289 84,289 79,289 ‐ (16,651) 67,638 4,952,125 21 2040 ‐ ‐ ‐ 260,049 260,049 255,049 ‐ (53,560) 206,489 5,158,614 22 2041 ‐ ‐ ‐ 286,446 286,446 256,212 ‐ (53,804) 232,642 5,391,255 23 2042 ‐ ‐ ‐ 346,939 346,939 197,285 ‐ (41,430) 305,509 5,696,764 24 2043 ‐ ‐ ‐ 383,105 383,105 146,896 ‐ (30,848) 352,257 6,049,021 25 2044 ‐ ‐ ‐ 415,089 415,089 104,036 ‐ (21,848) 393,241 6,442,262 26 2045 ‐ ‐ ‐ 4,155 4,155 62,126 ‐ (13,046) (8,891) 6,433,371 27 2046 ‐ ‐ ‐ 279,028 279,028 323,327 ‐ (67,899) 211,129 6,644,500 28 2047 ‐ ‐ ‐ 197,175 197,175 197,175 ‐ (41,407) 155,768 6,800,268 29 2048 ‐ ‐ ‐ 200,367 200,367 200,367 ‐ (42,077) 158,290 6,958,558 30 2049 ‐ ‐ ‐ 203,603 203,603 203,603 ‐ (42,757) 160,846 7,119,405 31 2050 ‐ ‐ ‐ 206,884 206,884 206,884 ‐ (43,446) 163,438 7,282,843 32 2051 ‐ ‐ ‐ 210,210 210,210 210,210 ‐ (44,144) 166,066 7,448,909 33 2052 ‐ ‐ ‐ 213,483 213,483 213,483 ‐ (44,831) 168,652 7,617,561 34 2053 ‐ ‐ ‐ 216,903 216,903 216,903 ‐ (45,550) 171,353 7,788,914 35 2054 ‐ ‐ ‐ 220,370 220,370 220,370 ‐ (46,278) 174,092 7,963,006 36 2055 ‐ ‐ ‐ 223,887 223,887 223,887 ‐ (47,016) 176,871 8,139,877 37 2056 ‐ ‐ ‐ 227,452 227,452 227,452 ‐ (47,765) 179,687 8,319,564 38 2057 ‐ ‐ ‐ 231,067 231,068 231,067 ‐ (48,524) 182,544 8,502,108 39 2058 ‐ ‐ ‐ 234,733 234,735 234,733 ‐ (49,294) 185,441 8,687,549 40 2059 ‐ ‐ ‐ 238,450 238,453 238,450 ‐ (50,074) 188,379 8,875,928 41 2060 ‐ ‐ ‐ 242,219 242,222 242,219 ‐ (50,866) 191,356 9,067,284 42 2061 ‐ ‐ ‐ 20,797 20,800 20,797 ‐ (4,367) 16,433 9,083,717 TOTAL (50,638,500) 46,035,000 5,312,941 5,983,837 6,693,290 (34,400,483) 23,017,500 2,390,426 9,083,717 9,083,717
PRE TAX IRR 8%
21 ‐ IB_30A ‐ MT ‐ CONS
See Accountants' Compilation Report and Summary of Significant Assumptions10
PRESENTATION FORECAST
SLIDE 61 MASTER TENANT PARTNERSHIP CASH ON CASH PROFIT CASH RETURNS ‐ MANAGING MEMBER YR# YR INVESTOR MEMBER MANAGING MEMBER INVESTOR MEMBER MANAGING MEMBER PRIORITY RETURNS OPERATING CASH FLOW OPERATING CASH FLOW & SPECIAL DISTRIBUTION INVESTOR MEMBER MANAGING MEMBER TOTAL P'SHIP 1 2020 (12,659,625) (127,875) ‐ ‐ ‐ ‐ ‐ (12,659,625) (127,875) (12,787,500) 2 2021 (37,978,875) (383,625) 46,035,000 465,000 1,011,902 22,796 230 (3,568,802) (46,270) (3,615,072) 3 2022 ‐ ‐ ‐ ‐ 1,012,770 29,653 299 (2,526,379) (45,971) (2,572,350) 4 2023 ‐ ‐ ‐ ‐ 1,012,770 17,197 174 (1,496,412) (45,797) (1,542,209) 5 2024 ‐ ‐ ‐ ‐ 1,013,005 32,077 324 (451,330) (45,473) (496,803) 6 2025 ‐ ‐ ‐ ‐ 1,012,770 13,723 138 575,163 (45,335) 529,828 7 2026 ‐ ‐ ‐ ‐ 249,724 80,586 547,355 905,473 502,020 1,407,493 8 2027 ‐ ‐ ‐ ‐ ‐ 37,745 717,151 943,218 1,219,171 2,162,389 9 2028 ‐ ‐ ‐ ‐ ‐ 63,904 1,214,170 1,007,122 2,433,341 3,440,463 10 2029 ‐ ‐ ‐ ‐ ‐ 70,173 1,333,284 1,077,295 3,766,625 4,843,920 11 2030 ‐ ‐ ‐ ‐ ‐ 67,939 1,290,839 1,145,234 5,057,464 6,202,698 12 2031 ‐ ‐ ‐ ‐ ‐ 61,113 1,161,155 1,206,347 6,218,619 7,424,966 13 2032 ‐ ‐ ‐ ‐ ‐ 61,357 1,165,780 1,267,704 7,384,399 8,652,103 14 2033 ‐ ‐ ‐ ‐ ‐ 60,042 1,140,792 1,327,746 8,525,191 9,852,937 15 2034 ‐ ‐ ‐ ‐ ‐ 56,205 1,067,887 1,383,951 9,593,078 10,977,029 16 2035 ‐ ‐ ‐ ‐ ‐ 47,269 898,114 1,431,220 10,491,192 11,922,412 17 2036 ‐ ‐ ‐ ‐ ‐ 44,030 836,563 1,475,250 11,327,755 12,803,005 18 2037 ‐ ‐ ‐ ‐ ‐ 36,150 686,848 1,511,400 12,014,603 13,526,003 19 2038 ‐ ‐ ‐ ‐ ‐ 35,178 668,380 1,546,578 12,682,983 14,229,561 20 2039 ‐ ‐ ‐ ‐ ‐ 84,289 1,601,485 1,630,867 14,284,468 15,915,335 21 2040 ‐ ‐ ‐ ‐ ‐ 260,049 4,940,927 1,890,916 19,225,395 21,116,311 22 2041 ‐ ‐ ‐ ‐ ‐ 286,446 5,442,480 2,177,362 24,667,875 26,845,237 23 2042 ‐ ‐ ‐ ‐ ‐ 346,939 6,591,844 2,524,301 31,259,719 33,784,020 24 2043 ‐ ‐ ‐ ‐ ‐ 383,105 7,278,996 2,907,406 38,538,715 41,446,121 25 2044 ‐ ‐ ‐ ‐ ‐ 415,089 7,886,682 3,322,495 46,425,397 49,747,892 26 2045 ‐ ‐ ‐ ‐ ‐ 4,155 78,947 3,326,650 46,504,344 49,830,994 27 2046 ‐ ‐ ‐ ‐ ‐ 279,028 5,301,525 3,605,678 51,805,869 55,411,547 28 2047 ‐ ‐ ‐ ‐ ‐ 197,175 3,746,334 3,802,853 55,552,203 59,355,056 29 2048 ‐ ‐ ‐ ‐ ‐ 200,367 3,806,972 4,003,220 59,359,175 63,362,395 30 2049 ‐ ‐ ‐ ‐ ‐ 203,603 3,868,454 4,206,823 63,227,629 67,434,452 31 2050 ‐ ‐ ‐ ‐ ‐ 206,884 3,930,792 4,413,707 67,158,421 71,572,128 32 2051 ‐ ‐ ‐ ‐ ‐ 210,210 3,993,998 4,623,917 71,152,419 75,776,336 33 2052 ‐ ‐ ‐ ‐ ‐ 213,483 4,056,170 4,837,400 75,208,589 80,045,989 34 2053 ‐ ‐ ‐ ‐ ‐ 216,903 4,121,151 5,054,303 79,329,740 84,384,043 35 2054 ‐ ‐ ‐ ‐ ‐ 220,370 4,187,038 5,274,673 83,516,778 88,791,451 36 2055 ‐ ‐ ‐ ‐ ‐ 223,887 4,253,845 5,498,560 87,770,623 93,269,183 37 2056 ‐ ‐ ‐ ‐ ‐ 227,452 4,321,585 5,726,012 92,092,208 97,818,220 38 2057 ‐ ‐ ‐ ‐ ‐ 231,067 4,390,273 5,957,079 96,482,481 102,439,560 39 2058 ‐ ‐ ‐ ‐ ‐ 234,733 4,459,921 6,191,812 100,942,402 107,134,214 40 2059 ‐ ‐ ‐ ‐ ‐ 238,450 4,530,545 6,430,262 105,472,947 111,903,209 41 2060 ‐ ‐ ‐ ‐ ‐ 242,219 4,602,157 6,672,481 110,075,104 116,747,585 42 2061 20,797 (50,638,500) (511,500) 46,035,000 465,000 5,312,941 5,983,837 110,121,604 90,179,933 1,510,912,221 1,601,092,154 NOTE: ‐ Returns exclude tax benefits and burdens from income/loss allocations as well as developer fee payments received by managing member affiliate. Summary IM MM Total CAPITAL CONTRIBUTION INVESTMENT (50,638,500) (511,500) (51,150,000) INVESTMENT TAX CREDITS 46,035,000 465,000 46,500,000 PRIORITY RETURNS 5,312,941 ‐ 5,312,941 OPERATING CASH FLOW 5,983,837 110,121,604 116,105,441 Profit 6,693,278 110,075,104 116,768,382 #REF! #REF! ‐ Returns also exclude investment tax credits (to show only cash on capital returns) SUPPLEMENTAL SCHEDULE OF FORECASTED PARTNERSHIP CASH ON CASH PROFIT FOR THE PERIOD BEGINNING JULY 30, 2020 AND ENDING DECEMBER 31, 2061 CAPITAL CONTRIBUTION (INVESTMENTS) INVESTMENT TAX CREDIT RETURNS CASH RETURNS ‐ INVESTOR MEMBER CUMULATIVE CASH ON CASH PROFIT (DEFICIT) 25 ‐ COC ‐ MT See Accountants' Compilation Report and Summary of Significant Assumptions 11
PRESENTATION FORECAST
SLIDE 62 MASTER TENANT SUPPLEMENTAL SCHEDULE OF FORECASTED CAPITAL ACCOUNTS ‐ MASTER TENANT FOR THE PERIOD BEGINNING JULY 30, 2020 AND ENDING DECEMBER 31, 2061 CAPITAL ACCOUNTS ‐ MASTER TENANT INVESTOR MEMBER YR# YR BEGINNING CONTRIBUTIONS PRIORITY RETURNS OPERATING CASH FLOW FINAL ALLOCATED ENDING DEFICIT RESTORATION OBLIGATION 1 2020 ‐ 12,659,625 ‐ ‐ ‐ 12,659,625 ‐ 2 2021 12,659,625 37,978,875 (1,011,902) (22,796) (45,724,743) 3,879,059 ‐ 3 2022 3,879,059 ‐ (1,012,770) (29,653) 2,551,240 5,387,877 ‐ 4 2023 5,387,877 ‐ (1,012,770) (17,197) 1,332,611 5,690,520 ‐ 5 2024 5,690,520 ‐ (1,013,005) (32,077) 968,029 5,613,467 ‐ 6 2025 5,613,467 ‐ (1,012,770) (13,723) 931,087 5,518,062 ‐ 7 2026 5,518,062 ‐ (249,724) (80,586) 400,598 5,588,350 ‐ 8 2027 5,588,350 ‐ ‐ (37,745) 70,490 5,621,094 ‐ 9 2028 5,621,094 ‐ ‐ (63,904) 68,931 5,626,122 ‐ 10 2029 5,626,122 ‐ ‐ (70,173) 65,173 5,621,121 ‐ 11 2030 5,621,121 ‐ ‐ (67,939) 62,939 5,616,121 ‐ 12 2031 5,616,121 ‐ ‐ (61,113) 56,113 5,611,122 ‐ 13 2032 5,611,122 ‐ ‐ (61,357) 56,357 5,606,122 ‐ 14 2033 5,606,122 ‐ ‐ (60,042) 55,042 5,601,121 ‐ 15 2034 5,601,121 ‐ ‐ (56,205) 51,205 5,596,121 ‐ 16 2035 5,596,121 ‐ ‐ (47,269) 42,269 5,591,121 ‐ 17 2036 5,591,121 ‐ ‐ (44,030) 39,030 5,586,121 ‐ 18 2037 5,586,121 ‐ ‐ (36,150) 31,150 5,581,121 ‐ 19 2038 5,581,121 ‐ ‐ (35,178) 30,178 5,576,120 ‐ 20 2039 5,576,120 ‐ ‐ (84,289) 79,289 5,571,120 ‐ 21 2040 5,571,120 ‐ ‐ (260,049) 255,049 5,566,120 ‐ 22 2041 5,566,120 ‐ ‐ (286,446) 256,212 5,535,886 ‐ 23 2042 5,535,886 ‐ ‐ (346,939) 197,285 5,386,232 ‐ 24 2043 5,386,232 ‐ ‐ (383,105) 146,896 5,150,023 ‐ 25 2044 5,150,023 ‐ ‐ (415,089) 104,036 4,838,970 ‐ 26 2045 4,838,970 ‐ ‐ (4,155) 62,126 4,896,941 ‐ 27 2046 4,896,941 ‐ ‐ (279,028) 323,327 4,941,240 ‐ 28 2047 4,941,240 ‐ ‐ (197,175) 197,175 4,941,240 ‐ 29 2048 4,941,240 ‐ ‐ (200,367) 200,367 4,941,240 ‐ 30 2049 4,941,240 ‐ ‐ (203,603) 203,603 4,941,240 ‐ 31 2050 4,941,240 ‐ ‐ (206,884) 206,884 4,941,240 ‐ 32 2051 4,941,240 ‐ ‐ (210,210) 210,210 4,941,240 ‐ 33 2052 4,941,240 ‐ ‐ (213,483) 213,483 4,941,240 ‐ 34 2053 4,941,240 ‐ ‐ (216,903) 216,903 4,941,240 ‐ 35 2054 4,941,240 ‐ ‐ (220,370) 220,370 4,941,240 ‐ 36 2055 4,941,240 ‐ ‐ (223,887) 223,887 4,941,240 ‐ 37 2056 4,941,240 ‐ ‐ (227,452) 227,452 4,941,239 ‐ 38 2057 4,941,239 ‐ ‐ (231,067) 231,067 4,941,239 ‐ 39 2058 4,941,239 ‐ ‐ (234,733) 234,733 4,941,239 ‐ 40 2059 4,941,239 ‐ ‐ (238,450) 238,450 4,941,239 ‐ 41 2060 4,941,239 ‐ ‐ (242,219) 242,219 4,941,239 ‐ 42 2061 4,941,239 ‐ ‐ (20,797) 20,797 4,941,239 ‐ TOTAL 50,638,500 (5,312,941) (5,983,837) (34,400,483) ‐ MANAGING MEMBER/SPONSOR YR# YR BEGINNING CONTRIBUTIONS PRIORITY RETURNS OPERATING CASH FLOW & SPECIAL DISTRIBUTION FINAL ALLOCATED ENDING DEFICIT RESTORATION OBLIGATION 1 2020 ‐ 127,875 ‐ ‐ ‐ 127,875 ‐ 2 2021 127,875 383,625 ‐ (230) (461,866) 49,404 ‐ 3 2022 49,404 ‐ ‐ (299) 25,770 74,875 ‐ 4 2023 74,875 ‐ ‐ (174) 13,461 88,162 ‐ 5 2024 88,162 ‐ ‐ (324) 9,778 97,616 ‐ 6 2025 97,616 ‐ ‐ (138) 9,405 106,883 ‐ 7 2026 106,883 ‐ ‐ (547,355) 1,005,009 564,537 ‐ 8 2027 564,537 ‐ ‐ (717,151) 1,339,303 1,186,688 ‐ 9 2028 1,186,688 ‐ ‐ (1,214,170) 1,309,694 1,282,213 ‐ 10 2029 1,282,213 ‐ ‐ (1,333,284) 1,238,284 1,187,213 ‐ 11 2030 1,187,213 ‐ ‐ (1,290,839) 1,195,839 1,092,213 ‐ 12 2031 1,092,213 ‐ ‐ (1,161,155) 1,066,155 997,212 ‐ 13 2032 997,212 ‐ ‐ (1,165,780) 1,070,780 902,212 ‐ 14 2033 902,212 ‐ ‐ (1,140,792) 1,045,792 807,213 ‐ 15 2034 807,213 ‐ ‐ (1,067,887) 972,888 712,213 ‐ 16 2035 712,213 ‐ ‐ (898,114) 803,114 617,213 ‐ 17 2036 617,213 ‐ ‐ (836,563) 741,563 522,213 ‐ 18 2037 522,213 ‐ ‐ (686,848) 591,848 427,213 ‐ 19 2038 427,213 ‐ ‐ (668,380) 573,380 332,213 ‐ 20 2039 332,213 ‐ ‐ (1,601,485) 1,506,485 237,213 ‐ 21 2040 237,213 ‐ ‐ (4,940,927) 4,845,927 142,213 ‐ 22 2041 142,213 ‐ ‐ (5,442,480) 4,868,024 (432,243) (432,243) 23 2042 (432,243) ‐ ‐ (6,591,844) 3,748,413 (3,275,674) (3,275,674) 24 2043 (3,275,674) ‐ ‐ (7,278,996) 2,791,032 (7,763,638) (7,763,638) 25 2044 (7,763,638) ‐ ‐ (7,886,682) 1,976,681 (13,673,639) (13,673,639) 26 2045 (13,673,639) ‐ ‐ (78,947) 1,180,393 (12,572,193) (12,572,193) 27 2046 (12,572,193) ‐ ‐ (5,301,525) 6,143,214 (11,730,504) (11,730,504) 28 2047 (11,730,504) ‐ ‐ (3,746,334) 3,746,333 (11,730,505) (11,730,505) 29 2048 (11,730,505) ‐ ‐ (3,806,972) 3,806,972 (11,730,504) (11,730,504) 30 2049 (11,730,504) ‐ ‐ (3,868,454) 3,868,454 (11,730,504) (11,730,504) 31 2050 (11,730,504) ‐ ‐ (3,930,792) 3,930,792 (11,730,504) (11,730,504) 32 2051 (11,730,504) ‐ ‐ (3,993,998) 3,993,997 (11,730,505) (11,730,505) 33 2052 (11,730,505) ‐ ‐ (4,056,170) 4,056,171 (11,730,504) (11,730,504) 34 2053 (11,730,504) ‐ ‐ (4,121,151) 4,121,151 (11,730,504) (11,730,504) 35 2054 (11,730,504) ‐ ‐ (4,187,038) 4,187,038 (11,730,504) (11,730,504) 36 2055 (11,730,504) ‐ ‐ (4,253,845) 4,253,845 (11,730,504) (11,730,504) 37 2056 (11,730,504) ‐ ‐ (4,321,585) 4,321,586 (11,730,504) (11,730,504) 38 2057 (11,730,504) ‐ ‐ (4,390,273) 4,390,273 (11,730,504) (11,730,504) 39 2058 (11,730,504) ‐ ‐ (4,459,921) 4,459,922 (11,730,503) (11,730,503) 40 2059 (11,730,503) ‐ ‐ (4,530,545) 4,530,545 (11,730,503) (11,730,503) 41 2060 (11,730,503) ‐ ‐ (4,602,157) 4,602,157 (11,730,503) (11,730,503) 42 2061 (11,730,503) ‐ ‐ (395,144) 395,144 (11,730,502) (11,730,502) TOTAL ‐ 511,500 ‐ (110,121,604) 97,879,601 ‐ 28 ‐ CAP ‐ MT See Accountants' Compilation Report and Summary of Significant Assumptions 12
P R E S E N T A T I O N F O R E C A S T
SLIDE 63
LANDLORD SUPPLEMENTAL SCHEDULE OF FORECASTED SOURCES AND USES OF CASH ‐ MASTER LANDLORD FOR THE PERIOD BEGINNING JULY 30, 2020 AND ENDING DECEMBER 31, 2061 SOURCES AND (USES) ‐ MASTER LANDLORD ‐ YR# YR CASH NOI MASTER LEASE FROM MASTER TENANT ‐ BASE MASTER LEASE FROM MASTER TENANT ‐ ADD'L MM RETURN OF CAPITAL ‐ DEBT SERVICE RETURN OF CAPITAL ‐ MANAGING MEMBER/SPONSOR CASH FLOW ‐ MASTER TENANT CASH FLOW ‐ MANAGING MEMBER/SPONSOR
1 2021 ‐ 3,419,598 368,853 (3,486,747) (301,703) ‐ ‐ 2 2022 ‐ 3,424,433 410,672 (3,486,747) (348,358) ‐ ‐ 3 2023 ‐ 3,412,845 417,067 (3,486,747) (343,165) ‐ ‐ 4 2024 ‐ 3,390,084 509,207 (3,486,747) (412,543) ‐ ‐ 5 2025 ‐ 3,486,747 393,387 (3,486,747) (393,387) ‐ ‐
6 2026 ‐ 3,486,747 1,041,369 (3,486,747) (1,041,369) ‐ ‐ 7 2027 ‐ 3,486,747 1,079,516 (3,486,747) (1,079,516) ‐ ‐ 8 2028 ‐ 3,486,747 1,072,003 (3,486,747) (1,072,003) ‐ ‐ 9 2029 ‐ 3,486,747 1,007,405 (3,486,747) (1,007,405) ‐ ‐ 10 2030 ‐ 3,486,747 984,508 (3,486,747) (984,508) ‐ ‐ 11 2031 ‐ 3,486,747 741,790 (3,486,747) (741,790) ‐ ‐ 12 2032 ‐ 3,486,747 787,272 (3,486,747) (787,272) ‐ ‐ 13 2033 ‐ 3,486,747 792,853 (3,486,747) (792,853) ‐ ‐ 14 2034 ‐ 3,486,747 733,038 (3,486,747) (733,038) ‐ ‐ 15 2035 ‐ 3,486,747 539,572 (3,486,747) (539,572) ‐ ‐ 16 2036 ‐ 3,486,747 498,683 (3,486,747) (498,683) ‐ ‐ 17 2037 ‐ 3,486,747 336,392 (3,486,747) (336,392) ‐ ‐ 18 2038 ‐ 3,486,747 358,911 (3,486,747) (358,911) ‐ ‐ 19 2039 ‐ 3,486,747 359,902 (1,316,075) ‐ (1,019,204) (1,511,370) 20 2040 ‐ 3,486,747 2,973,436 ‐ ‐ (2,601,877) (3,858,306) 21 2041 ‐ 3,500,000 2,936,049 ‐ ‐ (2,592,157) (3,843,893) 22 2042 ‐ 3,500,000 1,946,589 ‐ ‐ (2,193,646) (3,252,943) 23 2043 ‐ 3,500,000 1,113,197 ‐ ‐ (1,857,992) (2,755,205) 24 2044 ‐ 3,500,000 411,251 ‐ ‐ (1,575,280) (2,335,972) 25 2045 ‐ 3,500,000 ‐ ‐ ‐ (1,409,646) (2,090,354) 26 2046 9,635,000 ‐ ‐ ‐ ‐ (3,880,553) (5,754,447) 27 2047 9,791,312 ‐ ‐ ‐ ‐ (3,943,509) (5,847,804) 28 2048 9,949,796 ‐ ‐ ‐ ‐ (4,007,339) (5,942,457) 29 2049 10,110,484 ‐ ‐ ‐ ‐ (4,072,057) (6,038,427) 30 2050 10,273,408 ‐ ‐ ‐ ‐ (4,137,676) (6,135,732) 31 2051 10,438,600 ‐ ‐ ‐ ‐ (4,204,208) (6,234,392) 32 2052 10,601,094 ‐ ‐ ‐ ‐ (4,269,653) (6,331,441) 33 2053 10,770,925 ‐ ‐ ‐ ‐ (4,338,054) (6,432,871) 34 2054 10,943,125 ‐ ‐ ‐ ‐ (4,407,408) (6,535,717) 35 2055 11,117,730 ‐ ‐ ‐ ‐ (4,477,732) (6,639,999) 36 2056 11,294,775 ‐ ‐ ‐ ‐ (4,549,037) (6,745,738) 37 2057 11,474,295 ‐ ‐ ‐ ‐ (4,621,340) (6,852,955) 38 2058 11,656,327 ‐ ‐ ‐ ‐ (4,694,654) (6,961,672) 39 2059 11,840,906 ‐ ‐ ‐ ‐ (4,768,995) (7,071,911) 40 2060 12,028,070 ‐ ‐ ‐ ‐ (4,844,376) (7,183,694) 41 2061 1,032,738 ‐ ‐ ‐ ‐ (415,941) (616,797) TOTAL 162,958,586 86,934,920 21,812,924 (64,077,530) (11,772,470) (78,882,334) (116,974,096) OPERATING SOURCES AND (USES) ‐ MASTER LANDLORD 46 ‐ SU 35A‐L (Total) See Accountants' Compilation Report and Summary of Significant Assumptions 13
PRESENTATION FORECAST
SLIDE 64 LANDLORD SUPPLEMENTAL SCHEDULE OF FORECASTED TAXABLE INCOME / (LOSS) ‐ MASTER LANDLORD FOR THE PERIOD BEGINNING JULY 30, 2020 AND ENDING DECEMBER 31, 2061 TAXABLE INCOME / (LOSS) TOTAL ‐ MASTER LANDLORD YR# YR TAX NOI MASTER LEASE INCOME ‐ BASE &
- SUPPL. DEPRECIATION EXPENSE
1 2020 ‐ ‐ ‐ ‐ ‐ 2 2021 ‐ 3,788,451 (121,000,000) (91,667) (117,303,216) 3 2022 ‐ 3,835,106 ‐ (100,000) 3,735,106 4 2023 ‐ 3,829,912 ‐ (100,000) 3,729,912 5 2024 ‐ 3,899,291 ‐ (100,000) 3,799,291 6 2025 ‐ 3,880,135 ‐ (100,000) 3,780,135
7 2026 ‐ 4,528,116 ‐ (100,000) 4,428,116 8 2027 ‐ 4,566,263 ‐ (100,000) 4,466,263 9 2028 ‐ 4,558,751 ‐ (100,000) 4,458,751 10 2029 ‐ 4,494,153 ‐ (100,000) 4,394,153 11 2030 ‐ 4,471,255 ‐ (100,000) 4,371,255 12 2031 ‐ 4,228,538 ‐ (100,000) 4,128,538 13 2032 ‐ 4,274,020 ‐ (100,000) 4,174,020 14 2033 ‐ 4,279,600 ‐ (100,000) 4,179,600 15 2034 ‐ 4,219,785 ‐ (100,000) 4,119,785 16 2035 ‐ 4,026,320 ‐ (100,000) 3,926,320 17 2036 ‐ 3,985,430 ‐ (100,000) 3,885,430 18 2037 ‐ 3,823,140 ‐ (100,000) 3,723,140 19 2038 ‐ 3,845,659 ‐ (100,000) 3,745,659 20 2039 ‐ 3,846,649 ‐ (100,000) 3,746,649 21 2040 ‐ 6,460,183 ‐ (100,000) 6,360,183 22 2041 ‐ 6,436,049 ‐ (8,333) 6,427,716 23 2042 ‐ 5,446,589 ‐ ‐ 5,446,589 24 2043 ‐ 4,613,197 ‐ ‐ 4,613,197 25 2044 ‐ 3,911,251 ‐ ‐ 3,911,251 26 2045 ‐ 3,500,000 ‐ ‐ 3,500,000 27 2046 9,635,000 ‐ ‐ ‐ 9,635,000 28 2047 9,791,312 ‐ ‐ ‐ 9,791,312 29 2048 9,949,796 ‐ ‐ ‐ 9,949,796 30 2049 10,110,484 ‐ ‐ ‐ 10,110,484 31 2050 10,273,408 ‐ ‐ ‐ 10,273,408 32 2051 10,438,600 ‐ ‐ ‐ 10,438,600 33 2052 10,601,094 ‐ ‐ ‐ 10,601,094 34 2053 10,770,925 ‐ ‐ ‐ 10,770,925 35 2054 10,943,125 ‐ ‐ ‐ 10,943,125 36 2055 11,117,730 ‐ ‐ ‐ 11,117,730 37 2056 11,294,775 ‐ ‐ ‐ 11,294,775 38 2057 11,474,295 ‐ ‐ ‐ 11,474,295 39 2058 11,656,327 ‐ ‐ ‐ 11,656,327 40 2059 11,840,906 ‐ ‐ ‐ 11,840,906 41 2060 12,028,070 ‐ ‐ ‐ 12,028,070 42 2061 1,032,738 ‐ ‐ ‐ 1,032,738 TOTALS 162,958,586 108,747,843 (121,000,000) (2,000,000) 148,706,429 47 ‐ TI ‐ L See Accountants' Compilation Report and Summary of Significant Assumptions 14PRESENTATION FORECAST
SLIDE 65 LANDLORD SUPPLEMENTAL SCHEDULE OF FORECASTED CAPITAL ACCOUNTS ‐ MASTER LANDLORD FOR THE PERIOD BEGINNING JULY 30, 2020 AND ENDING DECEMBER 31, 2061 CAPITAL ACCOUNTS ‐ MASTER LANDLORD MASTER TENANT YR# YR BEGINNING CONTRIBUTIONS MT RETURN OF CAPITAL OPERATING CASH FLOW FINAL ALLOCATED ENDING SHARE OF MIN GAIN DRO 1 2020 12,787,500 ‐ ‐ ‐ 12,787,500 ‐ ‐ 2 2021 12,787,500 38,362,500 ‐ ‐ (47,244,563) 3,905,437 ‐ 6,487,067 3 2022 3,905,437 ‐ ‐ ‐ 1,504,336 5,409,773 ‐ 4,829,932 4 2023 5,409,773 ‐ ‐ ‐ 298,560 5,708,333 ‐ 3,164,468 5 2024 5,708,333 ‐ ‐ ‐ (100,000) 5,608,333 ‐ 1,490,631 6 2025 5,608,333 ‐ ‐ ‐ (100,000) 5,508,333 ‐ ‐ 7 2026 5,508,333 ‐ ‐ ‐ (100,000) 5,408,333 ‐ ‐ 8 2027 5,408,333 ‐ ‐ ‐ (100,000) 5,308,333 ‐ ‐ 9 2028 5,308,333 ‐ ‐ ‐ (100,000) 5,208,333 ‐ ‐ 10 2029 5,208,333 ‐ ‐ ‐ (100,000) 5,108,333 ‐ ‐ 11 2030 5,108,333 ‐ ‐ ‐ (100,000) 5,008,333 ‐ ‐ 12 2031 5,008,333 ‐ ‐ ‐ (100,000) 4,908,333 ‐ ‐ 13 2032 4,908,333 ‐ ‐ ‐ (100,000) 4,808,333 ‐ ‐ 14 2033 4,808,333 ‐ ‐ ‐ (100,000) 4,708,333 ‐ ‐ 15 2034 4,708,333 ‐ ‐ ‐ (100,000) 4,608,333 ‐ ‐ 16 2035 4,608,333 ‐ ‐ ‐ (100,000) 4,508,333 ‐ ‐ 17 2036 4,508,333 ‐ ‐ ‐ (100,000) 4,408,333 ‐ ‐ 18 2037 4,408,333 ‐ ‐ ‐ (100,000) 4,308,333 ‐ ‐ 19 2038 4,308,333 ‐ ‐ ‐ (100,000) 4,208,333 ‐ ‐ 20 2039 4,208,333 ‐ ‐ (1,019,204) 919,204 4,108,333 ‐ ‐ 21 2040 4,108,333 ‐ ‐ (2,601,877) 2,501,877 4,008,333 ‐ ‐ 22 2041 4,008,333 ‐ ‐ (2,592,157) 2,583,824 4,000,000 ‐ ‐ 23 2042 4,000,000 ‐ ‐ (2,193,646) 2,193,646 4,000,000 ‐ ‐ 24 2043 4,000,000 ‐ ‐ (1,857,992) 1,857,992 4,000,000 ‐ ‐ 25 2044 4,000,000 ‐ ‐ (1,575,280) 1,575,280 4,000,000 ‐ ‐ 26 2045 4,000,000 ‐ ‐ (1,409,646) 1,409,646 4,000,000 ‐ ‐ 27 2046 4,000,000 ‐ ‐ (3,880,553) 3,880,553 4,000,000 ‐ ‐ 28 2047 4,000,000 ‐ ‐ (3,943,509) 3,943,509 4,000,000 ‐ ‐ 29 2048 4,000,000 ‐ ‐ (4,007,339) 4,007,339 4,000,000 ‐ ‐ 30 2049 4,000,000 ‐ ‐ (4,072,057) 4,072,057 4,000,000 ‐ ‐ 31 2050 4,000,000 ‐ ‐ (4,137,676) 4,137,676 4,000,000 ‐ ‐ 32 2051 4,000,000 ‐ ‐ (4,204,208) 4,204,208 4,000,000 ‐ ‐ 33 2052 4,000,000 ‐ ‐ (4,269,653) 4,269,653 4,000,000 ‐ ‐ 34 2053 4,000,000 ‐ ‐ (4,338,054) 4,338,054 4,000,000 ‐ ‐ 35 2054 4,000,000 ‐ ‐ (4,407,408) 4,407,408 4,000,000 ‐ ‐ 36 2055 4,000,000 ‐ ‐ (4,477,732) 4,477,732 4,000,000 ‐ ‐ 37 2056 4,000,000 ‐ ‐ (4,549,037) 4,549,037 4,000,000 ‐ ‐ 38 2057 4,000,000 ‐ ‐ (4,621,340) 4,621,340 4,000,000 ‐ ‐ 39 2058 4,000,000 ‐ ‐ (4,694,654) 4,694,654 4,000,000 ‐ ‐ 40 2059 4,000,000 ‐ ‐ (4,768,995) 4,768,995 4,000,000 ‐ ‐ 41 2060 4,000,000 ‐ ‐ (4,844,376) 4,844,376 4,000,000 ‐ ‐ 42 2061 4,000,000 ‐ ‐ (415,941) 415,941 4,000,000 ‐ ‐ TOTAL ‐ 51,150,000 ‐ (78,466,392) 31,316,392 4,000,000 MANAGING MEMBER/SPONSOR YR# YR BEGINNING CONTRIBUTIONS MM RETURN OF CAPITAL OPERATING CASH FLOW FINAL ALLOCATED ENDING SHARE OF MIN GAIN DRO 1 2020 75,850,000 ‐ ‐ ‐ 75,850,000 ‐ ‐ 2 2021 75,850,000 (0) (3,788,451) ‐ (70,058,653) 2,002,896 ‐ ‐ 3 2022 2,002,896 ‐ (3,835,106) ‐ 2,230,770 398,560 ‐ ‐ 4 2023 398,560 ‐ (3,829,912) ‐ 3,431,352 ‐ ‐ ‐ 5 2024 ‐ ‐ (3,899,291) ‐ 3,899,291 ‐ ‐ ‐ 6 2025 ‐ ‐ (3,880,135) ‐ 3,880,135 ‐ ‐ ‐ 7 2026 ‐ ‐ (4,528,116) ‐ 4,528,116 ‐ ‐ ‐ 8 2027 ‐ ‐ (4,566,263) ‐ 4,566,263 ‐ ‐ ‐ 9 2028 ‐ ‐ (4,558,751) ‐ 4,558,751 ‐ ‐ ‐ 10 2029 ‐ ‐ (4,494,153) ‐ 4,494,153 ‐ ‐ ‐ 11 2030 ‐ ‐ (4,471,255) ‐ 4,471,255 ‐ ‐ ‐ 12 2031 ‐ ‐ (4,228,538) ‐ 4,228,538 ‐ ‐ ‐ 13 2032 ‐ ‐ (4,274,020) ‐ 4,274,020 ‐ ‐ ‐ 14 2033 ‐ ‐ (4,279,600) ‐ 4,279,600 ‐ ‐ ‐ 15 2034 ‐ ‐ (4,219,785) ‐ 4,219,785 ‐ ‐ ‐ 16 2035 ‐ ‐ (4,026,320) ‐ 4,026,320 ‐ ‐ ‐ 17 2036 ‐ ‐ (3,985,430) ‐ 3,985,430 ‐ ‐ ‐ 18 2037 ‐ ‐ (3,823,140) ‐ 3,823,140 ‐ ‐ ‐ 19 2038 ‐ ‐ (3,845,659) ‐ 3,845,659 ‐ ‐ ‐ 20 2039 ‐ ‐ (1,316,075) (1,511,370) 2,827,446 ‐ ‐ ‐ 21 2040 ‐ ‐ ‐ (3,858,306) 3,858,306 ‐ ‐ ‐ 22 2041 ‐ ‐ ‐ (3,843,893) 3,843,893 ‐ ‐ ‐ 23 2042 ‐ ‐ ‐ (3,252,943) 3,252,943 ‐ ‐ ‐ 24 2043 ‐ ‐ ‐ (2,755,205) 2,755,205 ‐ ‐ ‐ 25 2044 ‐ ‐ ‐ (2,335,972) 2,335,972 ‐ ‐ ‐ 26 2045 ‐ ‐ ‐ (2,090,354) 2,090,354 ‐ ‐ ‐ 27 2046 ‐ ‐ ‐ (5,754,447) 5,754,447 ‐ ‐ ‐ 28 2047 ‐ ‐ ‐ (5,847,804) 5,847,804 ‐ ‐ ‐ 29 2048 ‐ ‐ ‐ (5,942,457) 5,942,457 ‐ ‐ ‐ 30 2049 ‐ ‐ ‐ (6,038,427) 6,038,427 ‐ ‐ ‐ 31 2050 ‐ ‐ ‐ (6,135,732) 6,135,732 ‐ ‐ ‐ 32 2051 ‐ ‐ ‐ (6,234,392) 6,234,392 ‐ ‐ ‐ 33 2052 ‐ ‐ ‐ (6,331,441) 6,331,441 ‐ ‐ ‐ 34 2053 ‐ ‐ ‐ (6,432,871) 6,432,871 ‐ ‐ ‐ 35 2054 ‐ ‐ ‐ (6,535,717) 6,535,717 ‐ ‐ ‐ 36 2055 ‐ ‐ ‐ (6,639,999) 6,639,999 ‐ ‐ ‐ 37 2056 ‐ ‐ ‐ (6,745,738) 6,745,738 ‐ ‐ ‐ 38 2057 ‐ (6,852,955) 6,852,955 ‐ ‐ ‐ 39 2058 ‐ (6,961,672) 6,961,672 ‐ ‐ ‐ 40 2059 ‐ (7,071,911) 7,071,911 ‐ ‐ ‐ 41 2060 ‐ (7,183,694) 7,183,694 ‐ ‐ ‐ 42 2061 ‐ (616,797) 616,797 ‐ ‐ ‐ TOTAL 75,850,000 (75,850,000) (116,974,096) 116,974,096 49 ‐ CAP(T)‐L (Total) See Accountants' Compilation Report and Summary of Significant Assumptions 15
PRESENTATION FORECAST
SLIDE 66
COST SEGREGATION ‐ (LANDLORD) DEVELOPMENT COSTS Costs % Included in Eligible Basis TAX LIFE Depreciation ITC ELIGIBLE DEPRECIABLE LAND INTANGIBLE RESERVES SYNDICATION DEPRECIABLE PROPERTY Method Ineligible depreciable property 4,000,000 0% 15 15 year MACRS ‐ 4,000,000 ‐ ‐ ‐ ‐ Eligible Energy Property ‐ 5 Year 110,000,000 100% 5 5 year MACRS 110,000,000 110,000,000 ‐ ‐ ‐ ‐ Eligible Energy Property ‐ 15 Year 7,000,000 100% 15 15 year MACRS 7,000,000 7,000,000 ‐ ‐ ‐ ‐ Developer Fee 5 5 year MACRS ‐ Construction Management Fee 0% 5 5 year MACRS ‐ ‐ ‐ ‐ ‐ ‐ INTANGIBLE ASSETS Intangible assets (PPA, Interconnection) 2,000,000 0% 20 ‐ ‐ 2,000,000 ‐ ‐ Loan fees 0% 10 ‐ ‐ ‐ ‐ ‐ Other Intangibles 0% 15 ‐ ‐ ‐ ‐ ‐ OTHER ASSETS Syndication costs 4,000,000 0% 5 ‐ ‐ ‐ ‐ 4,000,000 Reserves ‐ #REF! ‐ $ 117,000,000 $ 121,000,000 $ ‐ $ 2,000,000 $ ‐ $ 4,000,000 $ TOTALS 127,000,000 117,000,000 121,000,000 ‐ 2,000,000 ‐ 4,000,000 117,000,000 FMV OF ITC ELIGIBLE COSTS 155,000,000 ITC ELIGIBLE BASIS 155,000,000 ITC % 30.00% ITC $ 46,500,000 INVESTOR % 99.00% INVESTOR SHARE 46,035,000 SYNDICATION RATE 1.10 INVESTOR EQUITY 50,638,500 39.87% LANDLORD SUPPLEMENTAL SCHEDULE OF FORECASTED COST SEGREGATION ‐ (LANDLORD) #REF! COST SEGREGATION ‐ $
100 ‐ CS‐L (BL) See Accountants' Compilation Report and Summary of Significant Assumptions 1PRESENTATION FORECAST