NexPoint Small Bay III DST

Investment Highlights

• NexPoint Small Bay III DST features a portfolio of two small bay properties in Richardson, Texas and Deerfield Beach, Florida.

• NexPoint believes that small bay properties have an advantage over traditional warehouses or industrial facilities, which generally have a concentrated tenant base with long-term leases.

• Small bay properties tend to be in more densely populated infill areas and benefit from higher barriers to entry and replacement costs, and tenant leases of small bay properties are generally for a shorter term, which allows rents to adjust more quickly to market and new demand conditions.

• Contributing the assets at a $6.3mm discount of appraised value - Those new appraisals show an 8.1% gain in value for the properties. This is now an embedded gain in the DST for investors on Day 1.

• Dallas, TX Property (Arapahoe): 90% occupancy at $12.5/sqft (407,000 sqft)

• Deerfield Beach, FL Property: 95% occupancy at $17/sqft (97,000 sqft)

• 208 total tenants across the portfolio

• Cost Segregation Analysis Complete