Woodstar Fund (the "Fund")
$ millions


> The Fund, which was formed in Q4 2021, holds the **14,793** affordable housing units comprising the Woodstar I and Woodstar II
portfolios and is accounted for under ASC 946, *Financial Services – Investment Companies*, with its investments reported on our
consolidated balance sheet at fair value and changes in fair value each period recognized in earnings


<figure type="DIAGRAM">

<description>The figure presents a comparison between two financial reporting methods: 'DE' and 'GAAP', followed by two related financial tables. The layout consists of a left-side panel with explanatory text and a right-side panel containing two tables, 'Net Income' and 'Change in FMV', linked by a dotted arrow.</description>

### Income Statement Explanation
- **DE ($18M)**: Represents net income at the portfolio-level excluding unrealized fair value adjustments
- **GAAP ($5M)**: Net income from our investments is reported as a single line item, which includes changes in fair value of the investments ($-13M), changes in working capital ($+9M), and cash income distributions received ($+9M)

### Financial Tables

<table>
  <tr>
    <th>Net Income</th>
    <th></th>
  </tr>
  <tr>
    <td>Rental and other income</td>
    <td>$ 59.3</td>
  </tr>
  <tr>
    <td>Cost of rental operations</td>
    <td>(24.2)</td>
  </tr>
  <tr>
    <td>Interest expense</td>
    <td>(16.9)</td>
  </tr>
  <tr>
    <td>Change in fair value</td>
    <td>(13.3)</td>
  </tr>
  <tr>
    <td><strong>Income from affordable housing fund investments</strong></td>
    <td><strong>$ 4.9</strong></td>
  </tr>
</table>

<table>
  <tr>
    <th>Change in FMV</th>
    <th></th>
  </tr>
  <tr>
    <td>Properties</td>
    <td>$ (9.3)</td>
  </tr>
  <tr>
    <td>Debt</td>
    <td>(2.0)</td>
  </tr>
  <tr>
    <td>Derivative</td>
    <td>(2.0)</td>
  </tr>
  <tr>
    <td><strong>Total change in FMV</strong></td>
    <td><strong>$ (13.3)</strong></td>
  </tr>
</table>



<description>A dotted arrow connects the 'Change in fair value' row in the 'Net Income' table to the 'Total change in FMV' value in the 'Change in FMV' table.</description></figure>

<figure type="DIAGRAM">

<description>The figure presents a conceptual explanation on the left, connected by a right-pointing arrow to a financial calculation table on the right. The left section is enclosed in a rounded rectangle titled 'Balance Sheet:' with two bullet points: 'Net Investment: Property-level assets, net of property-level debt' and 'Temporary Equity: 20.6% attributable to third party investors'. A blue arrow indicates the transition to the calculation table on the right.</description> <table><thead><tr><th>Net Investment</th><th></th></tr></thead><tbody><tr><td>Properties, at fair value</td><td>$ 3,239.7</td></tr><tr><td>Cash and other assets</td><td>43.4</td></tr><tr><td>Secured debt, at fair value</td><td>(1,529.5)</td></tr><tr><td>Accrued liabilities</td><td>(28.2)</td></tr><tr><td><strong>Investments of consolidated affordable housing fund, at fair value</strong></td><td><strong>$ 1,725.4</strong></td></tr></tbody></table></figure>

STARWOOD PROPERTY TRUST


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