Forever Fund Performance Update

There have been a few substantial market changes over the last 12 months that have impacted cash flow and portfolio value of the Forever Fund.

1. Due to the Federal Reserve adjusting interest rates in order to combat inflation, mortgage interest rates are up.
2. There was a rent correction (reduction) beginning in June 2023 (reduced market rent).
3. Property taxes increased.
4. Property insurance increased (approximately 30%).
5. When interest rates increased, property values decreased. This occurred at the end of 2022 and the beginning of 2023.
6. Property values have since stabilized and begun to increase in 2024. The market is supporting "the new normal." This refers to average interest rates around 7% being the "new normal."

Considering the market conditions, we are pleased with the overall performance of the Forever Fund. We have purchased properties at below market value, we have repositioned those properties for property value enhancement.