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REIT RISKS

As with any investment, investing in REITs involves certain risks which are detailed in the Risk Factors section of each prospectus or private placement memorandum. Please consult the prospectus or memorandum for a discussion of risks and other disclosures such as the ones below:

• REIT advisors may face various conflicts of interest resulting from its activities with affiliated entities. Advisors or its affiliates may receive substantial asset management, acquisition and sales fees that are not based on performance.
• There is no guarantee of available operating cash flows from REIT properties to pay distributions to stockholders.
• There may not be limitations in organizational documents regarding the amount of mortgage and other borrowings on properties. High amounts of leverage may reduce cash available for distributions to stockholders.
• To qualify as a REIT under the Internal Revenue Service Code (the “Code”). Qualification and treatment as a REIT depends on the ability to meet, on a continuing basis, various tests relating to distribution rates, diversity of stock ownership and other qualification requirements imposed on REITs.
• Shares may not be listed on a national securities exchange or market. Therefore, it may be difficult to sell REIT shares promptly, and if a shareholder was able to sell shares, the sale price may reflect a loss from the price paid.
• The REIT management may pay selling commissions to broker-dealers and a dealer-manager fee for reimbursement of marketing expenses out of the offering proceeds raised.
• An investment in a REIT may not be suitable for all investors, and such an investment is limited to certain qualified investors.
• Investors should read the prospectus or memorandum carefully prior to investing. A copy of the prospectus or memorandum must be made available to you and an offer can only be made by the prospectus or memorandum which contains complete information about investment objectives and risks such as potential conflicts of interest, lack of liquidity, lack of experience in operating a REIT, risks associated with leveraging the investment, failure to qualify and remain qualified as a REIT, historical operating losses, potential adverse economics, and regulatory changes.
   

This is neither an offer to purchase nor a solicitation of an offer to sell. Any offer is made solely to Accredited Investors by a Private Placement Offering Memorandum or Prospectus and should be carefully read prior to any decision to invest. Investing in securities may contain market, interest rate, credit, liquidity, or other unforeseen risk. Please consult and read the appropriate Memorandum or Prospectus that would describe the terms, maturities, and risks of each and any investment.

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Naples AIS, Inc. is a broker dealer, member of FINRA and SIPC. All information contained herein is for informational purposes only for U.S. residents and does not constitute a solicitation or offer to sell securities or investment advisory services. Such an offer can only be made in States where Naples AIS, Inc. is registered or where an exemption from registration is available. Representatives of the firm may only conduct business in a State if the firm and its representatives are approved to do business in the State or are exempted from its registration requirements.