Lendlease Americas responds: U.S. Military Housing improvements

• To date, Lendlease has directed more than $7.4 billion in investment to build over 15,000 new homes and renovate more than 25,000 existing homes.
• Much of the inventory Lendlease inherited was built decades before we took ownership.
• Lendlease recently worked with the Army to generate additional financing that allows us to substantially accelerate improvements across our Army housing portfolio.
• This proactive approach aligns with our strategy to ensure we are continuously improving or replacing older homes.
• Specifically, Lendlease closed on $1.1 billion private financing in April 2021 to make further housing improvements across several installations in our portfolio under an accelerated timeline (work will take place over five years).
• This new private capital will expedite the renovation of more than 12,000 existing homes and construction of more than 1,200 new homes across these communities.
• Despite what has been reported, this money has not been “given” to Lendlease. It is private funding, through private investors, that will go directly to housing improvements. It is a private finance loan that must be repaid.
• Nearly one half of the $1.1bn investment will go to Fort Hood, Texas, with the remaining funds to be spent at Fort Campbell, Fort Drum, Fort Knox and our Army installations in Hawaii.

• Like with any property portfolio, there is always opportunity for modernization and renovation.
• We are always looking for ways to improve, and our commitment to that is well demonstrated:
1. Lendlease was one of the first military housing providers to agree to every provision in the Tenant Bill of Rights.
2. We were the first to provide the seven-year “history of the home” to all prospective residents.
3. We continually review all aspects of our customer service, resident engagement and operational activities.
4. We consult with advocacy groups such as the Safe Military Housing Initiative, and we work extensively with our various military partners to review all aspects of our operation, on an ongoing basis.
5. We have made broad-ranging improvements over the last few years, including more frequent inspections by Lendlease and our military partners, more property management services performed by more highly trained personnel, and more options for our residents to communicate with us, including online and via a smart phone app.

• We are partners with the Army and work cooperatively and collaboratively to manage the housing. However, The Army decides how investments are spent both across and within its installations.
• While we handle the day-to-day management, our military partners have oversight of all our operations and have major decision rights under the respective agreements, including how and where this private financing, sourced from private investors, is spent.

• There is much confusion about how Basic Allowance for Housing (BAH) works.
• BAH is a housing allowance paid to service members by the U.S. Federal Government.
• For service members who choose to live on base, BAH is paid to the project company, in rent, and not to Lendlease.
• BAH then becomes the funds used by the project company and the military to maintain homes and facilities on the installation.

We look forward to our ongoing partnership with the DoD to continue evolving our approach and programs in ways that benefit the military families we serve.