MIRACLE MILE
Asset Management
Prepared for
K2

K2 — Runaway Bay Portfolio

Trailing Twelve Month Operating Review — Actual vs. Budget — Forward Projections

440 Units  |  T12: Jan – Dec 2025  |  As of December 31, 2025

December 31, 2025
CONFIDENTIAL — FOR AUTHORIZED RECIPIENTS ONLY
Total Units
440
Dec 2025 rent roll
Gross Potential Rent
$8.63M
T12 annualized
T12 Net Operating Income
$6.61M
NOI Margin 67.6%
NOI per Unit / Year
$15,032
$1,253 / unit / month
Implied Value Today
$94.5M
T12 NOI ÷ 7.00% cap
Year 3 Exit Value
$124.4M
@ 5.75% cap · $29.9M created
Period:
to
Monthly Net Operating Income — 2025 Jan – Dec Actual
Avg Monthly NOI: $551,192 Highest: May $598,497 Lowest: Jun $516,442 T12 Total: $6,614,298
Monthly Total Income — 2025
T12 Total Income: $9,787,122  ·  Avg/mo: $815,594
Monthly Operating Expenses — 2025
T12 Total OpEx: $3,172,823  ·  Avg/mo: $264,402
Monthly Operating Summary
Month Net Rental Income Other Income Total Income Total OpEx NOI NOI Margin
T12 Income & Expense Statement Jan–Dec 2025 · Actual
Line Item T12 TotalPer Unit / Yr% of GPR
INCOME
Market / Gross Potential Rent$8,634,499$19,624100.0%
Loss / Gain to Lease$143,031$3251.7%
Vacancy($548,067)($1,246)(6.3%)
Management Office / Model($6,070)($14)(0.1%)
Staff Units($15,615)($35)(0.2%)
Concessions($32,600)($74)(0.4%)
Net Rental Income$8,175,178$18,58094.7%
Other Income (all categories)$1,561,170$3,54818.1%
Bad Debt — Net Recovery$50,773$1150.6%
Effective Gross Income (EGI)$9,787,122$22,243113.4%
OPERATING EXPENSES
Renting Expense$89,395$2031.0%
Administrative Costs$122,117$2781.4%
Management Fees (3.3% of NRI)$269,310$6123.1%
Salaries & Benefits$671,031$1,5257.8%
Contract Repairs & Maintenance$287,254$6533.3%
Maintenance & Repair Supplies$62,913$1430.7%
Total Variable Expense$1,502,021$3,41417.4%
Utilities (water, sewer, electric, trash)$705,378$1,6038.2%
Real Estate & Property Taxes$804,682$1,8299.3%
Insurance (liability, property, umbrella)$160,742$3651.9%
Total Fixed Expense$1,670,802$3,79719.4%
Total Operating Expenses$3,172,823$7,21136.7%
Net Operating Income (NOI)$6,614,298$15,03276.6%
Expense Breakdown
Utilities
$705,378
Taxes
$804,682
Salaries
$671,031
Insurance
$160,742
Contract Rep.
$287,254
Mgmt Fees
$269,310
Admin
$122,117
Renting
$89,395
Maint. Supplies
$62,913
Other Income Detail (Top Items)
Water/Sewer Reimb.
$490,978
Cable Income
$175,491
Tenant Damage
$173,935
Valet Trash
$107,012
Termination Fee
$111,161
Interest Income
$88,247
Pet Rent
$87,452
Admin Fee
$84,760
Trash Reimb.
$75,091
Total Other Income: $1,561,170  ·  16.0% of EGI
Current Month — December 2025
Line ItemActualBudgetVariance $Var %
INCOME
Net Rental Income$683,671$695,999($12,328)-1.8%
Other Income$122,487$120,528$1,959+1.6%
Bad Debt — Net($3,161)($3,195)$34+1.1%
Total Income$802,997$813,332($10,335)-1.3%
EXPENSES
Renting$7,109$5,135($1,974)-38.4%
Administrative$8,666$11,903$3,237+27.2%
Management Fees$22,704$20,333($2,371)-11.7%
Salaries & Benefits$66,967$73,124$6,157+8.4%
Contract Repairs$18,899$13,735($5,164)-37.6%
Maint. Supplies$3,451$5,415$1,964+36.3%
Variable Total$127,794$129,645$1,851+1.4%
Utilities$70,213$74,872$4,659+6.2%
Taxes$69,055$65,743($3,312)-5.0%
Total OpEx$279,501$270,260($9,241)-3.4%
NOI$523,497$543,072($19,575)-3.6%
Year-to-Date — Full Year 2025
Line ItemActualBudgetVariance $Var %
INCOME
Net Rental Income$8,175,178$8,229,490($54,312)-0.7%
Other Income$1,561,170$1,376,873$184,297+13.4%
Bad Debt — Net$50,773$27,885$22,888+82.1%
Total Income$9,787,122$9,634,248$152,874+1.6%
EXPENSES
Renting$89,395$63,224($26,171)-41.4%
Administrative$122,117$128,750$6,633+5.2%
Management Fees$269,310$240,857($28,453)-11.8%
Salaries & Benefits$671,031$700,818$29,787+4.3%
Contract Repairs$287,254$236,409($50,845)-21.5%
Maint. Supplies$62,913$73,880$10,967+14.8%
Variable Total$1,502,021$1,443,938($58,083)-4.0%
Utilities$705,378$753,104$47,726+6.3%
Taxes$804,682$788,916($15,766)-2.0%
Total OpEx$3,172,823$3,146,700($26,123)-0.8%
NOI$6,614,298$6,487,548$126,750+2.0%
YTD Variance by Category — Actual vs. Budget

Green = under budget (favorable)  ·  Red = over budget (unfavorable)  ·  Income: favorable = above budget

Income Variances (YTD)
Total Income
+$152,874
Other Income
+$184,297
Bad Debt Net
+$22,888
Net Rental Inc.
($54,312)
Expense Variances — Fav. = Under Budget
Utilities
+$47,726
Salaries
+$29,787
Maint. Supplies
+$10,967
Administrative
+$6,633
Contract Rep.
($50,845)
Mgmt Fees
($28,453)
Taxes
($15,766)
Renting
($26,171)
YTD Summary: NOI of $6,614,298 is $126,750 (+2.0%) above budget. Income exceeded budget by $152,874 driven by strong Other Income (+$184K). OpEx was $26,123 over budget, primarily due to higher contract repairs (+$50.8K) and renting costs (+$26.2K), partially offset by utilities savings (+$47.7K) and salaries under budget (+$29.8K).
Balance Sheet — December 31, 2025
AccountBalance
ASSETS
Current Assets
Cash — Operating$279,730
Security Deposit Escrow$189,737
Capital Reserve — Internal$829,914
Accounts Receivable — Tenants$79,805
Accounts Receivable — Other$25,478
Allowance for Doubtful Accounts($10,204)
Replacement Reserve (Lender)$24,903
Escrow — Real Estate Tax (Lender)$172,929
Escrow — Insurance (Lender)$172,680
Prepaid Insurance & Deposits$7,764
Total Current Assets$1,773,640
Non-Current Assets
Real Property Investment$90,000,000
Capital Improvements$3,803,894
Property Improvements$825,870
Legal & Acquisition Costs (net)$3,375,085
Accumulated Depreciation & Amortization($21,185,850)
Financing Fees (net)$210,576
Total Non-Current Assets$77,220,985
TOTAL ASSETS$78,994,625
LIABILITIES
Current Liabilities
Prepaid Tenant Rents$13,880
Accrued Interest Payable$170,980
Accounts Payable$157,329
Accrued Expenses$81,659
Total Current Liabilities$423,848
Long-Term Liabilities
Tenant Security Deposits$188,905
1st Mortgage Payable$47,615,511
2nd Mortgage Payable$15,111,142
Total Other Liabilities$62,915,558
TOTAL LIABILITIES$63,339,407
CAPITAL
Capital — MLG Runaway Bay$30,888,000
Capital — K2 Runaway Bay$3,432,000
Partner Distributions($12,539,821)
Retained Earnings($6,124,960)
TOTAL CAPITAL$15,655,219
TOTAL LIABILITIES & CAPITAL$78,994,625
Debt Structure
1st Mortgage
$47.6M
$47,615,511 outstanding
2nd Mortgage
$15.1M
$15,111,142 outstanding
Total Debt Outstanding$62,726,653
LTV (implied @ 7.0% cap)66.4%
LTV (at T12 EGI)64.1%
Accrued Interest (Dec)$170,980
Annualized Interest (est.)~$2,051,760
DSCR (Interest Coverage)3.2x
Equity Value Analysis
Implied Equity Today
$31.8M
$94.5M value − $62.7M debt
Y3 Exit Equity
$61.7M
$124.4M exit − $62.7M debt
Invested Capital (MLG + K2)$34,320,000
Partner Distributions to Date($12,539,821)
Net Capital Deployed$21,780,179
Implied Equity Today$31,763,323
Y3 Exit Equity (@ 5.75% cap)$61,711,816
Equity Multiple (on Net Capital)2.83x
Liquidity & Reserves
Cash — Operating$279,730
Capital Reserve — Internal$829,914
Lender Replacement Reserve$24,903
Lender RE Tax Escrow$172,929
Lender Insurance Escrow$172,680
Security Deposit Escrow$189,737
Total Reserves & Liquidity$1,669,893
3-Year RAM Pro Forma T12 Dec 2025 Base · 3% Rent Growth · 95–95.5% Occ · 3% OpEx
Line Item T12 ActualYear 1 (2026)Y1 Δ Year 2 (2027)Y2 Δ Year 3 (2028)Y3 Δ vs T12
INCOME
Gross Potential Rent$8,634,499$8,893,534+3.0%$9,160,340+3.0%$9,435,150+9.3%
Net Rental Income$8,175,178$8,406,613+2.8%$8,686,155+3.3%$8,965,516+9.7%
Other Income$1,561,170$1,592,393+2.0%$1,624,241+2.0%$1,656,726+6.1%
Effective Gross Income$9,787,122$10,049,779+2.7%$10,361,158+3.1%$10,673,013+9.1%
EXPENSES
Total Operating Expenses$3,172,823$3,268,008+3.0%$3,366,048+3.0%$3,467,030+9.3%
NET OPERATING INCOME
Net Operating Income$6,614,298$6,730,998+1.8%$6,944,348+3.2%$7,155,212+8.2%
NOI Margin67.6%67.0%—67.0%—67.1%—
NOI / Unit / Yr$15,032$15,298+$266$15,783+$485$16,262+$1,230
NOI Growth Trajectory
T12 Actual
$6.61M
Year 1 (2026)
$6.73M
Year 2 (2027)
$6.94M
Year 3 (2028)
$7.16M
3-Year NOI Growth: +8.2%  ·  CAGR: 2.7%  ·  Cumulative Incremental NOI: $540,914
3-Year Cumulative NOI
Year 1
$6,730,998
Year 2
$6,944,348
Year 3
$7,155,212
3-Yr Total
$20,830,558
3-Year Cumulative NOI: $20,830,558  ·  Avg NOI/Unit (3yr): $47,342
Interactive Exit Cap Rate Tool
Exit Cap Rate
5.75%
4.0% 9.0%
Exit Value (Y3)
$124.4M
Exit Equity
$61.7M
Value Creation
$29.9M
Going-In Cap Rate7.00%
Implied Value Today$94,489,971
Total Debt$62,726,653
Implied Equity Today$31,763,318
Year 3 NOI$7,155,212
Exit Value (@ 5.75%)$124,438,469
Exit Equity$61,711,816
Value Creation (vs Implied Today)$29,948,493
Equity Multiple (on Net Capital) 2.83x
Full Sensitivity Matrix
Exit Cap Exit ValueExit EquityValue Creation% Gain
MIRACLE MILE ASSET MANAGEMENT  ·  K2 — Runaway Bay Portfolio  ·  December 2025
Confidential — for authorized recipients only  ·  charlie@miraclemileco.com
Capital Expenditure Analysis — Jan–Dec 2025 T12
Monthly CapEx Spend by Category
Property Improvements (GL 7310–9115)

Below-NOI capital spend on property upkeep, unit turns, and replacement items. All amounts positive = cash outflow.

GL Description Dec 2025 Q4 2025 H2 2025 YTD / T12 Mo. Avg $/Unit/Yr
Capital Improvements (GL 9200–9249)

Structural improvements, major system replacements, and unit upgrade program. Largest line: Upgrade Units ($360K YTD).

GL Description Dec 2025 Q4 2025 H2 2025 YTD / T12 Mo. Avg $/Unit/Yr
Combined CapEx Summary
Category Dec 2025 Q4 2025 H2 2025 YTD / T12 Mo. Avg $/Unit/Yr
Capital Reserves: Lender Replacement Reserve Deposits (GL 0815): $118,800 T12 ($9,900/mo)  ·  Internal Capital Reserve (GL 0825): ($680,653) internal release  ·  Lender Reserve Disbursements (GL 0867): ($120,545)  ·  Net Reserve Activity: ($682,398)
Owner Expenses & Cash Flow — Jan–Dec 2025 T12
Monthly Debt Service Coverage Ratio (DSCR)
Debt Service (Interest + Principal)

1st Mortgage (Lument, $47.6M) + 2nd Mortgage ($15.1M). See Balance Sheet tab for loan terms.

GL Description Dec 2025 Q4 2025 YTD / T12 Mo. Avg % of NOI
Asset Management & Partnership Expenses

Owner-level fees separate from property management (included in OpEx above NOI).

GL Description Dec 2025 Q4 2025 YTD / T12 Mo. Avg % of NOI
Partner Distributions (MLG + K2)

Cash distributions to equity partners. Amounts shown as outflows (negative).

GL Description Dec 2025 Q4 2025 YTD / T12 Mo. Avg % of NOI
Cash Flow Waterfall — T12 2025

Full cash flow from NOI through partner distributions per the GL statement.

Line Item T12 Amount
Weekly Management Report — Runaway Bay
Source: Harbor Group Management · Auto-populated from tracker · Upload new weekly data below
Current Week: —
Occupancy Trend — 26 Weeks
Traffic Funnel — This Week
💳 Delinquency Aging — Current Week
Current
—
1 Month
—
2 Months
—
3+ Months
—
Total Delinquency: —
💰 Unit Pricing by Floorplan
Unit TypeCurrent Rent4-Wk AvgChg Avg MktAvg In-Place
📊 12-Week Historical Summary Scroll to see all weeks
WeekPhys OccLeasedVacant Move InMove OutNotice LeadsShowsApps 30+ Delinq1BR-A1BR-B2BR-A
Weekly Reports

Upload weekly rent rolls, MMR summaries, and variance reports. PDF, XLSX accepted.

📄
Click to select or drop files here
PDF, XLSX, DOCX — max 25 MB each
Monthly Reports

Upload monthly P&Ls, financials, and investor packages.

📊
Click to select or drop files here
PDF, XLSX, DOCX — max 25 MB each
Email Sync

Pull report attachments from your dedicated reports inbox.

Configured Inbox
✉ reports@mmamco.com
Document Library
No documents uploaded yet. Use the upload zones above to add files.
Loading alerts…