Introducing:
Forum Exchange

Designed to: Preserve gains.
Defer taxes. Elevate your portfolio.

Forum Exchange offers a streamlined program that enables qualified investors to complete a 1031 exchange into a Delaware Statutory Trust (DST), with the option to later execute a 721 exchange into the FMREIT Operating Partnership (FMREIT OP).

Forum Exchange Investment Objectives

  • Realize current income
  • Preserve investor capital
  • Defer taxes

How Forum Exchange Works

Sell Your
Property

Relinquished property

1

Exchange Proceeds
into DST

Fractional interest in DST property

2

Potential Future
UPREIT

Into FMREIT OP through 721 Exchange

1

Investors sell an existing property and
reinvest 100% of the proceeds into a DST

2

FMREIT OP may acquire 100% of the DST interests on a tax deferred basis in exchange for Operating Partnership (OP) Units

Tax-Deferral Benefits of a 1031 Exchange

Taxes on the sale of appreciated real estate may be significant. A 1031 Exchange is one of the most effective investment tools for real estate owners looking to defer taxes on the sale of appreciated investment properties or properties used in a trade or business.

Taxes upon sales of
real estate can exceed:
37%
Hypothetical: assumes federal tax rate of 20%, Medicare tax of 3.8%, and state tax of 13.3% (CA highest tax bracket).

Hypothetical Investor Scenario

SCENARIO 1
Investor sells investment property & pays all tax liability.		 SCENARIO 2
Investor exchanges the investment property through a 1031 Exchange into a DST & defers tax liability.
PURCHASE PRICE $750,000 $750,000
Depreciation $500,000 $500,000
Adjusted Cost Basis $250,000 $250,000
SALE PRICE $1,750,000 $1,750,000
TOTAL TAXABLE GAIN $1,500,000 —
Depreciation Recapture Tax
(25% of Depreciation)		 $125,000 —
Federal Long-term Capital Gains Liability
(20% of Total Taxable Gain Less Depreciation Recapture)		 $200,000 —
State Tax
(Assumed 13.3% Highest State Tax Rate)		 $199,500 —
Net Investment Income Tax
(Assumed 3.8% of Total Taxable Gain)		 $57,000 —
TOTAL TAXES DUE $581,500 —
NET PROCEEDS FOR INVESTMENT $1,168,500 $1,750,000
Note:For illustrative purposes only. Example is hypothetical and is not tax advice.

Key Potential Benefits1 of Forum Exchange

Aligned Distributions: Receive the same gross distributions as holders of FMREIT common stock of the same class

Tax Efficiency: Maintain tax-deferred status without the need for future 1031 exchanges

Portfolio Diversification: Gain exposure to FMREIT’s institutional quality multifamily real estate portfolio2

Flexible Estate Planning: Interests can be more easily allocated or transferred as part of an estate plan

Liquidity Access: OP Unit redemption program provides a potential pathway to liquidity3

1. Assumes the FMV Purchase Option has been exercised in exchange for OP Units. Purchase Option is exercisable beginning two (2) years after the end of the DST syndication period. With Forum Exchange, FMREIT OP (and not the DST Investors) can elect to exercise the Purchase Option for cash or OP Units, although it is generally expected that OP Units will be utilized. FMREIT OP is under no obligation to exercise the Purchase Option and may choose not to do so. 2.Institutional quality refers to a portfolio of investment exposures that are typically only available to institutional investors as well as one that provides broad exposure by vintage year and geography. 3. Subject to the terms of the Second Amended & Restated Limited Partnership Agreement (as further amended, modified or supplemented).

Key Features of Forum Exchange

The Master Lease1

Predictable Cash Flow –
DST investors receive distributions supported by fixed monthly rent payments under a 20-year Master Lease, regardless of property occupancy or rent collections

Net Lease Structure –
The Master Lease is a net lease, with operating expenses like taxes and insurance borne by the Master Tenant2

Credit Enhancement –
The Master Lease is guaranteed by FMREIT OP, adding an additional layer of financial support

1. The Master Lease is guaranteed by FMREIT OP.
2. Master Tenant is a wholly-owned subsidiary of FMREIT OP.

The Fair Market Purchase Option1

FMREIT OP has the option to acquire 100% of the DST interests at their then-current fair
market value.2

If exercised, investors exchange their DST interests for Operating Partnership interests
(“OP Units”).3

• Commonly referred to as a 721 Exchange or UPREIT
• Allows investors to access FMREIT’s diversified multifamily portfolio on a
    tax-deferred basis

1. The FMV Purchase Option, exercisable during the two (2) year period beginning two (2) years after the last sale of a DST interest in the offering, provides FMREIT OP the right, but not the obligation, to purchase investors’ DST interests in exchange for OP Units or for cash at FMREIT OP's sole discretion. 2. Fair market value will be based on the value of the DST's properties subject to the Master Lease. 3. OP Units represent interests in FMREIT OP and are economically equivalent to, and receive the same gross distributions as, shares of FMREIT's common stock of the same class.

Fair Market Purchase Option

Current DST Offering

View Offering
NOW AVAILABLE

The Indigo (Canton, GA)

This is a Class A garden-style multifamily community with 168 units and 260 parking spaces. It includes 96 one-bedroom, 60 two-bedroom, and 12 threebedroom units.

  • Offering Type: Reg. D Private Placement
  • Maximum Offering Amount: $41.86M
  • Minimum Equity Investment: $250K
  • Distributions: Monthly
DOWNLOAD BROCHURE

Ready to Get Started?

Financial Advisors & Intermediaries: Connect with one of our Regional
Directors to learn how Forum Exchange may support your client needs.

Regional Directors

Individual Investor? Consult your financial professional to determine
whether a tax-deferred exchange may be appropriate for you.

Resources

IMPORTANT INFORMATION

The materials are intended for informational purposes only and are subject to change. This is not provided as investment advice or a recommendation to you. Such an offer to sell or solicitation to buy an interest in any DST may be made only by the delivery of that DST’s private placement memorandum. In the event that these materials and the memorandum are in conflict, the memorandum terms shall control. Please review the memorandum fully and consult with your legal, financial, and tax counsel, as appropriate. Any product or service referred to herein may not be suitable for all persons.

Past performance is no guarantee of future returns. Any DST’s performance can be volatile, and the investment involves a high degree of risk.

Investors should consider the investment objectives, risks, charges, and expenses carefully before investing. Investors should read the memorandum, including all exhibits, appendices and supplements thereto, carefully with this and other information such DST. For additional information, please call 888-267-1456 or email InvestorRelations@ForumIG.com.

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.