In addition to partnering with the project sponsor which is usually a developer, the Company sometimes also seeks third-party investor equity on a project basis.

Real estate operations present certain unique business risks but the Company consistently uses certain practices to reduce its exposure to those risks to a level that management considers acceptable. These practices include avoidance of highly-speculative investments; careful evaluation of investment opportunities; adherence to guidelines established by the Company’s Board of Directors; prudent use of financial leverage; and selection of investment partners, developers, property managers and construction contractors that have demonstrated knowledge and expertise in previous real estate activities.