ExchangeRight Income Fund: Comprehensive Investor Summary

Introduction This summary provides a clear and concise overview of ExchangeRight Income Fund's financial performance, strategic direction, and key highlights from its latest 10-K filing. We aim to offer investors a comprehensive understanding of the Fund's operations and outlook.

Business Overview ExchangeRight Income Fund actively acquires, manages, and sells income-generating properties across diverse geographic markets. The Fund's main goal is to deliver consistent distributions to its shareholders by building and managing a strong portfolio of real estate assets. We manage a diversified portfolio that includes essential retail, industrial, and medical office properties. Our strategy focuses on securing long-term, "triple-net" leases—where tenants cover most property expenses like taxes, insurance, and maintenance—with financially sound tenants, ensuring stable occupancy rates.

Management Discussion and Analysis (MD&A) Highlights The Fund's management discussion and analysis thoroughly explains its financial health and operational results. Management focuses on the strategic reasons behind portfolio decisions, the factors driving financial performance, and the careful management of capital. Key topics include how market conditions affect rental income, the effectiveness of our acquisition and disposition strategy, and how we manage debt and liquidity to support ongoing operations and growth. The MD&A also details significant trends and uncertainties that could impact the Fund's business.

Financial Health The Fund employs a prudent financing strategy, primarily using fixed-rate mortgage loans for property acquisitions. To manage interest rate risk, the Fund strategically uses interest rate swaps. These swaps hedge a significant portion of our variable-rate exposure, helping to stabilize financing costs.

Distributions to Shareholders ExchangeRight Income Fund consistently makes distributions to its shareholders. The Fund offers various common stock classes (Class A, I, and D shares). These classes typically differ in their fee structures, minimum investment requirements, and eligibility for certain investor types. Investors also have the option to participate in the Dividend Reinvestment Plan (DRIP). This plan allows distributions to be automatically reinvested into additional shares of the Fund, which can compound returns over time.

Key Portfolio Insights and Risks Investors should understand the inherent risks associated with real estate investments. These include:

• General economic downturns
• Fluctuations in interest rates
• Potential tenant defaults
• Changes in property valuations
• Local market conditions
• Availability of suitable acquisition opportunities
• Regulatory changes
• Environmental liabilities
• Ability to access capital markets on favorable terms

While the Fund's diversified portfolio and long-term lease strategy aim to reduce these risks, they cannot be entirely eliminated. The full 10-K filing provides a comprehensive discussion of all risk factors that could materially affect the Fund's business, financial condition, and results of operations.

Future Outlook Looking ahead, the Fund's strategy focuses on unlocking the embedded value within its existing portfolio. We plan to achieve this particularly by re-leasing below-market rate leases as they expire, which we expect to drive future income growth. Management anticipates continued strategic acquisitions in our target sectors (essential retail, industrial, medical office) to further diversify the portfolio and enhance yield. The Fund will also continue to monitor interest rate trends and economic conditions to optimize its financing structure and capital allocation. Future capital expenditures will go towards maintaining the quality of the existing portfolio and supporting tenant improvements to maximize retention and rental income. The Fund aims to maintain its consistent distribution policy while pursuing opportunities for long-term value creation for shareholders.

Competitive Position ExchangeRight Income Fund operates in a highly competitive real estate investment market. Our competitive position stems from our ability to identify and acquire high-quality, income-producing properties, our expertise in property and asset management, and our strong relationships with creditworthy tenants. The Fund competes with other real estate investment trusts (REITs), private equity funds, institutional investors, and individual investors for property acquisitions and tenants.

Our key competitive advantages include:

• A diversified portfolio across essential sectors
• A focus on long-term triple-net leases
• An established track record of consistent distributions

However, competition for attractive properties can lead to increased acquisition costs and lower yields. Similarly, competition for tenants can impact occupancy rates and rental growth. The Fund's access to capital and its ability to efficiently execute its investment strategy are crucial for maintaining its competitive standing.