Hello,

As we progress through the year, we are pleased to share an update on our portfolio and strategies. All properties from Fund V are operational, while Fund VI is advancing steadily, with one property already online and the remaining three developments on track for delivery by the end of this year. On the fundraising front, we have adopted a patient and deliberate approach, monitoring market conditions to identify the most favorable opportunities. In parallel, we continue to pursue acquisitions on a deal-by-deal basis, focusing on markets with high barriers to entry, strong rent growth potential supported by supply-demand trends, and opportunities to acquire assets below replacement cost. This approach reflects our commitment to careful execution and disciplined decision-making, aligned with the best interests of our investors. We look forward to keeping you informed as we continue making progress.

All my best,
Gerardo Gutierrez
CEO DDelta REI

“[Multifamily] Demand is strongest in the Sun Belt, which grew by 100,000 units this year, more than 2% of the region’s inventory. However, construction starts nationwide have fallen, with only 103,000 units breaking ground this year. This represents a decrease of 60% from last year”. – Globest

Quarterly Highlights

• We continue to make progress in our FVI, with projects such as Lookout already pre-leasing, while at Junewood we are preparing for our first unit turnover.

•  Our team volunteered for the Central Texas Food Bank, helping prepare over 6,500 lbs of food which represented over 5,500 meals for members of our community.

Company Update

• As part of our commitment to ESG, we completed our ESG due diligence questionnaires that will be implemented to our partners for any new project we invest in.
• We attended the NAA International Symposium in Mexico City enjoyed connecting with different U.S. institutions while supporting efforts to capitalize on building bridges between Latinx managers and Capital Allocators.• We attended the NYC GCM Consortium. It was a valuable opportunity to engage with industry leaders, investors, and managers, fostering connections that align with our growth strategy.
• We look forward to attending the Toigo LA Gala in November, viewing it as an excellent opportunity to network and build strong relationships with new partners.If you are planning to attend, we would like to connect with you.

Insights – New Development Insights

• The current market and lending environment have resulted in a marked slowdown in new multifamily development, with new building permits declining by 21% in the first half of 2024 compared to the same period in the prior year.
• This reduction in new construction is expected to create a significant shortage of delivered units in 2026 and 2027, reminiscent of the post-GFC.
• To meet the annual demand for 380,000 units until 2034, the market will require substantial increases in new deliveries. However, only an average of 280,000 units are expected to be delivered over the next four years
• While most new development deals are not penciling out currently, we are actively monitoring our key markets and pipeline, to position ourselves to execute as soon as market conditions improve, ensuring we can capitalize on this window of opportunity.

Not an offer: This document does not constitute advice or a recommendation or offer to sell or a solicitation to deal in any security or financial product. It is provided for information purposes only and on the understanding that the recipient has sufficient knowledge and experience to be able to understand and make their own evaluation of the proposals and services described herein, any risks associated therewith and any related legal, tax, accounting, or other material considerations. To the extent that the reader has any questions regarding the applicability of any specific issue discussed above to their specific portfolio or situation, prospective investors are encouraged to contact Gerardo Gutierrez – CEO – or consult with the professional advisor of their choosing.

Past Performance: There is no guarantee that the investment objectives will be achieved. Moreover, the past performance is not a guarantee or indicator of future results. Forward-looking statements: Certain information contained herein constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “estimate,” “intend,” “continue,” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events, results, or actual performance may differ materially from those reflected or contemplated in such forward-looking statements. Nothing contained herein may be relied upon as a guarantee, promise, assurance, or a representation as to the future.

Currentness: Except where otherwise indicated, the information contained in this presentation is based on matters as they exist as of the date of preparation of such material and not as of the date of distribution or any future date. Recipients should not rely on this material in making any future investment decision.

Confidentiality: This presentation is confidential, is intended only for the person to whom it has been directly provided and under no circumstances may a copy be shown, copied, transmitted, or otherwise be given to any person other than the authorized recipient without the prior written consent of Gerardo Gutierrez – CEO.

An investment in the Fund involves risks, including loss of the entire investment. For further risk considerations, see more here.