¹FMREIT holds a 90% economic interest in Vinings at Carolina Bay as a tenant in common.

²The acquisition year for Talo and The Local are the year when we acquired the land for development.

³The Local is subject to a lease whereby FMREIT leases the land from the City of Tempe, Arizona. Upon expiration of the lease term or earlier termination, there will be automatic conveyance of the property in fee simple to a FMREIT controlled entity.

IMPORTANT RISK FACTORS

An investment in Forum Multifamily Real Estate Investment Trust, Inc. (“FMREIT” or the “Company”) is subject to significant risks. A summary of some of the more important risks is below. A more detailed description of the risks associated with the offering is found in the section of the private placement memorandum (“PPM”) entitled “Risk Factors.” Investors should read and understand all of the risk factors before making a decision to invest in shares of FMREIT’s common stock. The following material must be read in conjunction with the PPM in order to fully understand all of the implications and risks of the offering of securities to which it relates.

• Past performance is not a guarantee of future results. Investing in shares of FMREIT’s common stock involves a high degree of risk. Full loss of principal is possible.
• REITs are not suitable for all investors. FMREIT is subject to various risks related to owning real estate, including changes in economic, demographic, and real estate market conditions. Due to the risks involved in the ownership of real estate and real estate-related investments, the amount of distributions FMREIT may pay to stockholders in the future, if any, is uncertain. There is no guarantee of any return on investment and stockholders may lose the amount they invest.
• FMREIT anticipates that its investment in real estate assets will be primarily concentrated in the multifamily real estate sector. Such sector concentration may expose FMREIT to the risk of economic downturns in this sector to a greater extent than if its business activities included investing a more significant portion of the net proceeds of the offering in other sectors of the real estate industry, and market concentrations may expose FMREIT to the risk of economic downturns in such areas. These concentration risks could negatively impact FMREIT’s operating results and affect its ability to make distributions to its stockholders.
• Furthermore, investing in FMREIT’s common stock involves additional and substantial risks specific to FMREIT, including, among others, that:

i. There is no assurance that we will be able to achieve our investment objectives.

ii. There is no public trading market for shares of our common stock, and we do not anticipate that there will be a public trading market for our shares, so redemption of shares by us will likely be the only way to dispose of your shares. Our share redemption program will provide you with the opportunity to request that we redeem your shares on a monthly basis, but we are not obligated to redeem any shares and may choose to redeem only some, or even none, of the shares that have been requested to be redeemed in any particular month, in our discretion. In addition, redemptions will be subject to available liquidity and other significant restrictions. Further, our board of directors may make exceptions to, modify or suspend our share redemption program if in its reasonable judgment it deems such actions to be in our best interest and the best interest of our stockholders. Although our board of directors has the discretion to suspend our share redemption program, our board of directors will not terminate our share redemption program other than in connection with a liquidity event which results in our stockholders receiving cash or securities listed on a national securities exchange or where otherwise required by law. As a result, our shares should be considered as having only limited liquidity and at times may be illiquid; therefore, you must be prepared to hold your shares for an indefinite length of time.

iii. A portion of the proceeds received in this offering is expected to be used to satisfy redemption requests. Using the proceeds from this offering for redemptions will reduce the net proceeds available to retire debt or acquire additional investments, which may result in reduced liquidity and profitability or restrict our ability to grow our NAV. The transaction price may not accurately represent the value of FMREIT’s common stock at any given time and the actual value of a stockholder’s investment may be substantially less. The transaction price generally is based on FMREIT’s most recently disclosed monthly NAV of each class of common stock (subject to material changes as described above) and will not be based on any public trading market. In addition, the transaction price may not accurately reflect the actual prices at which FMREIT’s assets could be liquidated on any given day, the value a third party would pay for all or substantially all of FMREIT’s shares, or the price at which FMREIT’s shares would trade on a national stock exchange. Further, FMREIT’s board of directors may amend its NAV procedures from time to time.

iv. The offering price and redemption price for shares of our common stock are generally based on our prior month’s NAV and are not based on any public trading market. In addition to being up to a month old when share purchases and redemptions take place, our NAV does not currently represent our enterprise value and may not accurately reflect the actual prices at which our assets could be liquidated on any given day, the value a third party would pay for all or substantially all of our shares, or the price that our shares would trade at on a national stock exchange. Furthermore, our board of directors may amend our NAV procedures from time to time. Although there will be independent appraisals of our properties, the appraisal of properties is inherently subjective and our NAV may not accurately reflect the actual price at which our properties could be liquidated on any given day.

v. Distributions are not guaranteed and may be funded from sources other than cash flow from operations, including, without limitation, borrowings, the sale of our assets, return of capital or offering proceeds, and advances or the deferral of fees and expenses. We have no limits on the amounts we may fund from such sources.

vi. We depend on FMREIT Advisors LLC (our “Advisor”) and its affiliates to select investments and to manage our business.

vii. We pay substantial fees to our Advisor and its affiliates. These fees increase the risk that you will not earn a profit on your investment. These fees were not negotiated at arm’s length and therefore may be higher than fees payable to unaffiliated third parties.

viii. Forum Investment Group, LLC (“Forum” or the “Sponsor”), the Advisor and their affiliates are subject to conflicts of interest, including conflicts arising from time constraints and the fact that the fees our Advisor receives for services rendered to us are based on our NAV, the procedures for which the Advisor assists our board of directors in developing, overseeing, implementing and coordinating.

ix. Our use of leverage, such as mortgage indebtedness and other borrowings, increases the risk of loss on our investments. Principal and interest payments on these loans reduce the amount of money that would otherwise be available for other purposes.

x. Volatility in the debt markets could affect our ability to obtain financing for investments or other activities related to real estate assets and the diversification or value of our portfolio, potentially reducing cash available for distribution to our stockholders or our ability to make investments. In addition, we have loans and may obtain future loans with variable interest rates, volatility in the debt markets could negatively impact such loans.

xi. Failure to qualify as a REIT could adversely affect our operations and our ability to make distributions.

This material has been provided to you by Forum for informational purposes and may not be relied upon for any other purpose. The information contained herein is preliminary and subject to change and is not an offer to buy or sell or a solicitation of an offer to buy or sell an interest in the Company or any other investment fund sponsored by Forum. No such offer or solicitation will be made prior to the delivery of the Company’s PPM and/or other associated documentation, including subscription documents (the “Subscription Documents,” and together with the PPM, the “Company Documents”).

The opinions herein do not take into account prospective investors’ circumstances, objectives, or needs and are not intended as recommendations of particular securities, financial instruments or strategies to any prospective investors. Nothing contained herein should be construed as legal, business, tax accounting or investment advice. You should consult your own attorney, business advisor, tax advisor and accounting advisor as to legal, business, tax, accounting and related matters concerning an investment in the Company and its suitability for you.

The information herein is intended solely for “Accredited Investors” within the meaning of Rule 501 of Regulation D under the U.S. Securities Act of 1933, as amended (the “Securities Act”). An investment in the Company may not be suitable for all persons. No representation is made as to the feasibility for any recipient hereof to acquire interests in the Company, which will only be offered on a private placement basis to suitably qualified investors of the type described above. No securities commission or regulatory authority in the United States has in any way passed upon the merits of an investment in the Company or the accuracy or adequacy of this presentation or the material contained herein.

None of Forum or any of its affiliates make any representation or warranty, express or implied, as to the accuracy, completeness or reliability of the information contained herein, and nothing contained herein shall be relied upon as a promise or representation as to past or future performance. All information set forth herein has been prepared from information furnished by Forum and from publicly available sources. The information contained herein (including industry data) may be based, in part, on information obtained from third parties believed to be reliable and/or assumptions that later prove to be invalid or incorrect. While such sources are believed to be reliable, none of Forum or its affiliates assumes any responsibility for such information. The data and charts presented herein are intended to be actual, historical data or otherwise are intended to be hypothetical illustrations of mathematical principles.

The information contained herein does not purport to contain all of the information that may be required to evaluate a potential investment in the Company, and you are urged to read the Company Documents and should conduct your own independent analysis of any data referred to herein. This material should not be used as the sole basis for making a decision as to whether or not to invest in the Company. In making an investment decision, you must rely on your own examination of the Company and the terms of the applicable offering. The information contained herein is qualified in its entirety by reference to the Company Documents. If the terms described herein are inconsistent with the terms of the Company Documents, the Company Documents will control. The Company has the ability in its sole discretion to change the strategy or terms described herein at any time. You are urged to request any additional information you may consider necessary or desirable in making an informed investment decision. You (and your representative, if any) are invited to ask questions of, and receive answers from, Forum concerning the Company and to obtain additional information.

The information contained herein is as of the date hereof or as of the specific dates noted herein, as applicable, and Forum has no obligation to update or revise such information as a result of new information, subsequent events or any other circumstances, including in the event that such information becomes inaccurate, and nothing shall be construed as to create any implication that there has been no change in the affairs of Forum after the date hereof. Unless otherwise noted, any performance information contained herein is unaudited. Certain figures herein have been rounded and certain schedules may not foot due to such rounding.

This presentation includes express and implied forward-looking statements regarding the current expectations, estimates, opinions and beliefs of Forum that are not historical facts. Such forward-looking statements may be identified by words such as “believes,” “expects,” “endeavors,” “anticipates,” “intends,” “plans,” “estimates,” “projects,” “target,” “should,” “may,” “will” and “objective” and variations of such words and similar words or the negatives thereof. The accuracy of such statements is dependent upon future events, and involves known and unknown risks, uncertainties and other factors beyond Forum’s control that may cause actual results to differ materially from what is presented herein. These forward-looking statements speak only as of the date herein and should not be construed as statements of facts. Prospective investors in the Company should not rely on these forward-looking statements or examples included herein in deciding whether to invest in the Company.

Any estimates or projections contained herein as to events that may occur in the future (including projections of future financial performance and forward-looking statements) are based upon the reasonable judgment of Forum. Due to various risks and uncertainties, actual events or results or the actual performance of the Company may differ materially from those reflected or contemplated in such estimates or projections. There can be no assurances or guarantees that (i) the Company’s investment objectives will be realized, (ii) the Company’s investment strategy will prove successful, (iii) investors will not lose all or a portion of their investment in the Company, and (iv) the projections and estimates contained herein will be achieved. An investment in the Company will provide limited liquidity since the interests in the Company are not freely transferable. Any investment in the Company is speculative, involves a high degree of risk, and is suitable only for persons with investment experience and of adequate financial means who have no need for liquidity.

The information contained herein is privileged and confidential information and is intended for use by the intended recipient only. This presentation includes confidential, proprietary, trade secret and other commercially sensitive information and must be kept strictly confidential and may not be photocopied, reproduced or distributed (in each case, in whole or in part) to others at any time without the prior written consent of Forum. By accepting such information, you agree that you will, and you will cause your directors, partners, officers, employees, affiliates, agents and representatives to, use such information only to evaluate your potential investment in the Company and for no other purpose, and you will not make any communication regarding the Company or provide or divulge any such information to any other party or summarize or otherwise refer to such information. You shall be responsible for violations of your directors, partners, officers, employees, affiliates, agents and representatives of the obligations set forth in this paragraph.

Foreside Fund Services, LLC provides marketing review services for Forum Capital Advisors, LLC. Foreside Fund Services, LLC and Forum Capital Advisors, LLC, are not affiliated.