4. VARIABLE INTEREST ENTITIES

The Company has determined that the Operating Partnership is a VIE, as its limited partners lack substantive kick-out rights and substantive participating rights. Prior to its liquidation in July 2026, the DownREIT Partnership was

also a VIE, as its limited partners lacked substantive kick-out rights and substantive participating rights. The Company has concluded that it is the primary beneficiary of, and therefore consolidates, the Operating Partnership, and that it was the primary beneficiary of, and therefore consolidated, the DownREIT Partnership as of December 31, 2025 and through the date of its liquidation, based on its role as the sole general partner of each partnership. The Company’s role as community manager and its equity interests give us the power to direct the activities that most significantly impact the economic performance and the obligation to absorb potentially significant losses or the right to receive potentially significant benefits of the Operating Partnership and, prior to its liquidation, the DownREIT Partnership.