FPA Multifamily is a privately held fully integrated real estate investment management firm specializing in the acquisition, management, and repositioning of multifamily properties across the United States on behalf of a global base of institutional investors. With more than 40 years of experience in the multifamily sector, FPA Multifamily has transacted on approximately $30 billion in multifamily assets, representing over 870 properties and 170,000 units nationwide. This extensive track record reflects the firm’s ability to source accretive transactions creatively leveraging deep relationships, market insights, and reputation it has cultivated over four decades. With more than 500 realized investments to date, FPA Multifamily has demonstrated a keen ability to identify, acquire, and create value across value-add and core-plus strategies across all major U.S. markets to generate attractive risk-adjusted returns for its investors.

Strategic corporate development

We are committed to becoming an industry leading fully integrated investment manager of residential assets by aiming to deliver strong risk adjusted returns, operational excellence, and resident satisfaction. Over time, the firm will strategically grow its portfolio through selective acquisitions in high-growth urban and suburban markets, emphasizing quality assets with strong upside potential in both cash flow and long-term appreciation.

Operational efficiency will be enhanced through advanced property management systems, boots on the ground data analysis, and proactive asset management strategies to maximize occupancy, rental growth, and long-term appreciation. Sustainability and ESG principles will guide renovations, energy efficiency upgrades, and community- focused initiatives to create desirable living environments and meet investor expectations.

Leadership development remains a key focus and priority, with handson training to enhance strategic thinking, decision-making, and people management skills to ensure consistency and effectiveness across all business units. By combining disciplined investment strategies, operational efficiencies, and a resident focused approach, FPA Multifamily aims to generate superior risk-adjusted returns while creating long-term value for its investors, residents, and the communities it serves.

Sector forecasts (as of June 2025)

RESIDENTIAL: Amidst macroeconomic uncertainty and political volatility, America’s multifamily housing sector remains resilient, supported by strong fundamentals in markets where leasing outpaces new construction and high home prices constrain homeownership. Nationally, annual apartment absorption is projected to exceed net deliveries over the next year for the first time since early 2022. Quarterly net deliveries have fallen 25% over the past year to roughly 140,000 units in Q3 2025 and are expected to drop below 75,000 by year-end. With new construction starts at decade lows and Generation Z entering prime renting years, absorption is expected to rise through 2026. Meanwhile, homeownership costs continue to climb—home prices are up 60% since 2019 and rising about 4% annually. The U.S. median single-family home price hit a record $412,500 in 2024, five times the median household income, reinforcing multifamily’ s long-term growth prospects amid persistently high interest rates.

In 2024, over 600,000 new apartments were delivered—the most since 1985 and double the long-term annual average of 298,000 units since 1990. The South and West regions led the way with 292,000 and 162,000 completions, respectively. The Midwest and Northeast regions saw less than one-third of the total deliveries to the South region. However, soaring construction costs, driven by the sheer number of new deliveries combined with higher interest rates have driven new starts down 25% to 354,000 by year-end 2024, far below the 2022 peak of 550,000. This slowdown has helped reduce vacancy rates; Out of the 150 largest markets nationwide tracked by RealPage, 89% recorded a decrease in multifamily vacancies in Q1 2025, compared to just 10% in Q1 2024, demonstrating how the national apartment market has been able to absorb the post-pandemic supply wave. Freddie Mac estimates a national housing shortfall of 3.7 million homes—largely due to years of single-family underbuilding—which continues to push demand toward rentals.

Home sales have plunged to 30-year lows, totaling just over 4 million in 2024, the lowest since 1995 as higher mortgage rates deter both buyers and sellers. Many homeowners remain locked into sub-3% mortgages from 2020–21, compared to today’s 6.15% average. The typical monthly mortgage payment now exceeds $2,500, requiring an income above $126,000 (applying 30% debt to income ratio), which is well beyond the reach of most renters as only 6 million out of 46 million renters earn more than $126,000. Consequently, the U.S. homeownership rate fell to 65% in early 2025, with the sharpest decline among those aged 35 and under. And with Gen Z entering the workforce, the majority of 21-to-35 age bracket will more likely opt to rent rather than enter home ownership, supporting sustained multifamily demand.

Source: FPA, 2025 The State of the Nation’s Housing: Joint Center for Housing Studies of Harvard University; Costar: Multi-Family National Report United States 10/30/2025

Investment principles & strategy

The Firm selectively targets the acquisition of multifamily properties with identifiable opportunities for both rental growth and value creation. Our investment strategy focuses on assets located within and around growth-oriented and established metropolitan markets across the United States.

Leveraging a proven track record developed over multiple market cycles, the Firm utilizes its extensive network, reputation, and sourcing capabilities to identify that offer favorable risk-adjusted return profiles.

Following acquisition, FPA executes a disciplined business plan designed to enhance property performance through accretive renovation projects, operational improvements and rent optimization as these initiatives are supported by conservative underwriting and hands-on asset management to increase net operating income (NOI) while maintaining rents at reasonable levels and below new construction.

Through thoughtful renovation, repositioning, and management enhancements, the Firm seeks to deliver consistent, superior risk-adjusted returns and long-term value for its investors.

Performance verification

The Firm tracks and monitors investment performance at both the asset and fund levels to provide quarterly reporting. Key performance metrics, including Internal Rate of Return (IRR), Multiple on Invested Capital (MOIC), and timeweighted returns, are calculated and benchmarked against major U.S. institutional commercial real estate indices to evaluate performance.

COMPLIANCE STATEMENT

This presentation contains selected information about FPA Multifamily, LLC (“FPA”) and its affiliates. This presentation has been prepared and is being furnished solely for informational purposes and solely for use by you in preliminary discussions with FPA. In particular, this presentation is not, and is not intended to be, an offer to sell, or a solicitation of an offer to purchase, any securities or any other interest in FPA or in any fund, account or other investment product or assets managed by FPA or to offer any services. Past performance does not guarantee future performance.