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Risks

• The ongoing COVID-19 pandemic, the responses thereto and the economic consequences flowing therefrom, may adversely impact our business, income, cash flow, results of operations, financial condition, liquidity, prospects, ability to service our debt obligations, and our ability to pay cash dividends to our stockholders.
• Most of our multi-family properties are located in the Southeast and Texas which makes us susceptible to adverse developments in such markets.
• Risks involved in conducting real estate activity through joint ventures.
• The failure of third party property management companies to properly manage our properties or obtain sufficient insurance coverage could adversely impact our results of operations.
• Increasing real estate taxes, utilities and insurance premiums may negatively impact operating results.
• We may not be able to compete with competitors, many of which have greater financial and other resources than we possess.
• Our operating results are significantly influenced by demand for multi-family properties generally, and a decrease in such demand will likely have a greater adverse effect on our revenues than if we owned a more diversified real estate portfolio.
• Our value-add activities involve greater risks than more conservative investment strategies.
• Increased competition and increased affordability of residential homes could limit our ability to retain our tenants or increase or maintain rents.
• Our operating results and assets may be negatively affected if our insurance coverage is insufficient to compensate us for casualty events occurring at our properties.
• Development, redevelopment and construction risks could affect our operating results.
• The expiration of our $10 million credit facility in April 2021 will adversely affect our liquidity
• We may not have sufficient funds to make required or desired capital improvements.
• Our acquisition, development and value-add activities are limited by the funds available to us.
• If we are required to make payments under any “bad boy” carve out guarantees that we have provided in connection with certain mortgages and related loans, our business and financial results could be materially adversely affected.
• We could be negatively impacted by changes in our relationship with Fannie Mae or Freddie Mac, changes in the condition of Fannie Mae or Freddie Mac and by changes in government support for multi-family housing.
• The phasing out of LIBOR after 2021 may adversely affect our cash flow and financial results.
• Liabilities relating to environmental matters may impact the value of our properties.
• Compliance with REIT requirements may hinder our ability to maximize profits.
• Because real estate investments are illiquid, we may not be able to reconfigure our portfolio on a timely basis.
• We may incur impairment charges in 2021.
• Our transactions with affiliated entities involve conflicts of interest.
• Senior management and other key personnel are critical to our business and our future success may depend on our ability to retain them.
• Certain provisions of our Articles of Incorporation, our Bylaws and Maryland law may inhibit a change in control that stockholders consider favorable and could also limit the market price of our common stock
• The stock market is volatile, and fluctuations in our operating results, removal from various indices and other factors could cause our stock price to decline.
• A material weakness in our internal control over financial reporting was identified and has not been remediated.