CFO Craig Bingham highlights PEG Companies' 2018 key achievements.

1. Craig Bingham
CFO, PEG Companies

2. Core Building Blocks
ASSETS IN KEY LOCATIONS
STRATEGIC VALUE-ADD ACQUISTIONS
MANAGEMENT OF ASSETS
CONSERVATIVE FINANCING TERMS
BEST PARTNERS

3. 2018 Key Achievements
Development and Equity 4 Developments Started - AND –
15 Projects Under Construction
14 Assets Acquired
$119.4 M Equity Placed
$305.3 M Total Project Costs

4. Accolades
2018 Key Achievements

5. New Partnerships
2018 Key Achievements

6. Financing
2018 Key Achievements

7. Advisory Firms
2018 Key Achievements

8. UVU Student Housing
2018 Key Achievements

9. ABR Exit
Salt Lake Hotel Portfolio
PROJECT: SLHP
BUDGET: $71.1M Total Cost
EQUITY:
$28.4M (50% ABR/50% PEG)
EXIT VALUE: $104M
IRR: 20.28%
MOIC: 2.53x

10. 2019 The Year Ahead
19 Projects in Development
$164.4 M Planned Equity Placement
$535.2 M Total Anticipated Project Costs

11. 2019 Expand Relationships

12. 2019 Refinance Events

13. 2019 Planned Dispositions

14. Fund III Overview
TARGET FUND: $100M
INVESTMENT PERIOD: 1-2 Years
TERM: 10 year term with three 1 year extensions
ASSETS:
Diversified mix of acquisition and development with a mix of asset
classes (hospitality, multifamily, and industrial) in the Intermountain West
TARGET RETURN:
Net IRR 15 -18%, MOIC 2.0 – 3.0x, 10-12% cash yield (quarterly
distributions)

15. Fund III Composition
Identified Portfolio Asset Class
Composition
Identified Portfolio Strategy Mix
Hospitality, 45%
Special
Situation/Hospitality,
8%Multifamily, 12%
Special
Situation/Multifamily, 10%
Industrial, 12%
Student Housing,
13%
Retail, 1%
Development , 71%
Value-Add Acquisitions,
29%

16. Philadelphia, PA
Fort Worth, TX
Dallas, TX Atlanta, GA
Boulder, CO
Clearwater, FL
Charlotte, NC
Sacramento, CA Phoenix, AZ
Scottsdale, AZ
Tempe, AZ
Santa Fe, NM
St. Louis, MI
Chicago, IL
West Valley< UT
Orem, UT
Provo, UT
Bozeman, MT
Henderson, NV
Ketchum, ID Boston, MA
Fund III
Identified Portfolio

17. Fund III Composition Detail

18. Fund III Returns
EST. GROSS
RETURNS
MOIC: 2.75x
IRR: 18.26%

19. Opportunity Zones
The Tax Cuts and Jobs Act (TCJA) passed in December 2017 created a
new tax-advantaged Opportunity Zone program to encourage
redevelopment and investment in certain census tracts that were
nominated by governors and certified by the Treasury Department.
Opportunity Zones offer three compelling tax incentives for investors:
Temporary
Deferral Step-Up in Basis
Permanent
Exclusion

20. OZII Fund Overview
TARGET SIZE: $200M
INVESTMENT PERIOD: Through 2028, expiration of the Opportunity Zone program
TERM: 15 year term
ASSETS:
Diversified mix of development with a mix of asset classes
(hospitality, multifamily, office)
TARGET RETURN: Net IRR 13-15%
FIRST CLOSING Q4 2018

21. (1,500,000)
(1,000,000)
(500,000)
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Annual Distributions Total Cash Flows
OZII Fund Returns
EST. GROSS
RETURNS
MOIC: 3.2x
IRR: 17.25%

22. OZII Fund Composition
Asset-Class Geographic

23. OZII Portfolio Target Asset Geography

24. OZII Fund Composition Deal

25. PEG’s Growth
$-
$500
$1,000
$1,500
$2,000
$2,500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
ConstructionCost(Millions)
PEGPROJECT COST OVERTIME
PEG TOTALS HOSPITALITY MULTIFAMILY / STUDENT HOUSING OFFICE RETAIL

26. Managing Growth
Top advisors
Internal construction experts
Improved internal processes
Improved internal reporting
Enhance portfolio reviews
Expand LP reporting
Refine Investment Committee
Advisory board