How would you respond to the results of the downside Case? Can you identify provisions that you might incorporate in a loan to make it safer and still achieve approval for this property?

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Income yield to equity Appreciation return to equity Total Return to Equity Base Case 14% 12% 12% 12% 28% 13% 8% 0% 42% 26% 20% 12% 1.78 1.88 1.98 2.06 70% 67% 66% 66% Debst service coverage (Ebitda/Debt Service) Loan to value % (LTV) Based on YR End Value Covenant Tests Pass/Fail Debt Service coverage ratio (Ebitda/Debt Service) 1.75x Loan amount to year end value ratio 70% Pass Pass Pass Pass Pass Pass Pass Pass Income yield to equity Appreciation return to equity Total Return to Equity Base Case 14% 12% 12% 12% 28% 13% 8% 0% 42% 26% 20% 12% 1.78 1.88 1.98 2.06 70% 67% 66% 66% Debst service coverage (Ebitda/Debt Service) Loan to value % (LTV) Based on YR End Value Covenant Tests Pass/Fail Debt Service coverage ratio (Ebitda/Debt Service) 1.75x Loan amount to year end value ratio 70% Pass Pass Pass Pass Pass Pass Pass Pass