Hurricanes - GHBAHurricane Charlie August 2004 6.609 Million Aug 2003- July 2004 7.027 Million +6.3% Sep 2004- Aug 2005 +6.3% . 220,000 1st Time Applicants Unemployment Benefits ...

Hurricanes

Immediate Impact • Loss of Jobs • Declining Home Sales

6-12 Months Later • Strong Job

Growth • Rising Home Sales

Disaster Economic Impact

400

450

500

550

600

650

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

New Orleans MSA Employment

Thousands – Seasonally Adjusted

Hurricane Katrina

35

38

40

43

45

48

50

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

Punta Gorda MSA Employment

Thousands – Seasonally Adjusted

Hurricane Charlie

SW Florida Job Growth Rates

0.00%

'01 '02 '03 '04 '05 '06

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Recession U.S. Punta Gorda

Recession Hurricane

Charlie

Percent Change Year-Over-Year

Seasonally-Adjusted

Cape Coral-Ft Myers MSA Home Sales

0200400600800

1,0001,2001,4001,600

'02 '03 '04 '05 '06 '07

Closings Per Months Hurricane Charlie August 2004

12,281 Aug 2003- July 2004

13,646 +11.1% Sep 2004- Aug 2005

+11.1%

U.S. Existing Home Sales

0

200

400

600

800

'02 '03 '04 '05 '06

Closings Per Months Thousands

Hurricane Charlie August 2004

6.609 Million Aug 2003- July 2004

7.027 Million +6.3% Sep 2004- Aug 2005

+6.3%

220,000

1st

Time

Applicants

Unemployment

Benefits

Week Ending

January 13

2018

1.89

Million

Total People

on

Unemployment

Benefits

Week Ending

October 14

2017

90% of workers should

see an increase when new guidelines are

implemented

January 16, 2018

13.6%

Percent of

U.S.

Population

Aged 25-34

30% Percent of

Homebuyers

Prior Year

Aged 25-34

130,000+ Millennial Poll

Would You Rather? 47% Have an Easy Job Working for Someone Else 53% Work for Yourself But Work Incredibly Hard

9GAG + GfK Research

130,000+ Millennial Poll

Would You Rather? 29% Commit to a Guaranteed Job for Next 3 Years 71% Commit to a Start-Up Opportunity

9GAG + GfK Research

130,000+ Millennial Poll

Would You Rather? 95% Gain 10 Friends in Real Life 5% Gain 10,000 Friends on Instagram-Twitter

9GAG + GfK Research

130,000+ Millennial Poll

Would You Rather? 33% Lose the Right to Vote 67% Lose the Right to Say Anything on Social Media

9GAG + GfK Research

130,000+ Millennial Poll

Would You Rather? 43% Give Up Sex 57% Give Up the Internet

9GAG + GfK Research

Atlanta Austin Boston Chicago Columbus Dallas Denver

Indianapolis Los Angeles Miami Montgomery County, Maryland

Nashville Newark New York City Northern Virginia Philadelphia Pittsburgh

Raleigh Toronto Washington, D.C.

Amazon’s 2nd Headquarters Finalists

Airports Concessions

Housing Mass Transit Office Space Population

Flooding

Amazon’s Want And

Needs List

Do-Not-Want

2,500

2,600

2,700

2,800

2,900

3,000

3,100

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18

Houston-The Woodlands-Sugar Land MSA Jobs

Jobs (Thousands) Seasonally Adjusted

1.51 Percent Prior 12 Months 45,500 Net New Jobs in Past 12-Months

27,500 Jobs Lost in August-September

Loan Cap 750,000$

20 Percent Down 187,500$

Purchase Price 937,500$

2017 SFR Sales 69,464

$937,500+ 1,913

Percent Impacted 2.75%

Mortgage Interest Deduction Cap Impact - Houston

Houston MSA Home Sales & Median Prices Sales Trailing 12 Months

$175

$200

$225

$250

14 '15 '16 '17 '18

78,000

79,000

80,000

81,000

82,000

83,000

84,000

Median Price Homes Sales

Median Price $ Thousands Home Sales 12-Months

2.6%

Average

Number

Per

Month

Sales

Change

Y-O-Y

3.7% 12-Month

Moving

Average

Price

Increase

Y-O-Y

'16 to '17

Percent

Price Range 2014 2015 2016 2017 Change

$1 to $499,999 60,763 59,206 61,211 62,502 2.1%

$500,000 to $699,999 3,703 3,724 3,624 3,713 2.5%

$700,000 to $999,999 1,804 1,756 1,619 1,748 8.0%

$1 Million and Up 1,383 1,418 1,352 1,501 11.0%

Total 67,653 66,104 67,806 69,464 2.4%

Ft Bend-Galveston-Harris-Montgomery Counties

Single Family Sales

'16 to '17

Percent

Price Range 2014 2015 2016 2017 Change

$1 to $499,999 6,408 6,361 6,268 6,174 -1.5%

$500,000 to $699,999 279 257 211 256 21.3%

$700,000 to $999,999 71 61 63 63 0.0%

$1 Million and Up 20 13 12 13 8.3%

Total 6,778 6,692 6,554 6,506 -0.7%

Ft Bend-Galveston-Harris-Montgomery Counties

Townhouse-Condo Sales

Houston MSA Residential Building Permits

0

15,000

30,000

45,000

60,000

75,000

'99

'00

'01

'02

'03

'04

'05

'06

'07

'08

'09

'10

'11

'12

'13

'14

'15

'16

'17

Single Family Multi

Number of Dwelling Units

42,673 Permits is the past 12 months, 45,500 Net New Jobs 1.07 New Jobs Per New Dwelling Unit – 1.25 to 1.5 is Normal

$0

$100

$200

$300

$400

$500

$600

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

U.S. Commercial Real Estate Sales Volume

$ Billions – Trailing 12 Months

Property and Portfolio Sales $2.5 Million and Up

-6.7 Percent Year-Over-Year

$0.0

$2.5

$5.0

$7.5

$10.0

$12.5

$15.0

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

Houston Commercial Real Estate Sales Volume

$ Billions – Trailing 12 Months

Property and Portfolio Sales $2.5 Million and Up

+46.0 Percent YOY

$0

$50

$100

$150

$200

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

U.S. Commercial Real Estate Sales Volume

$ Billions – Quarterly

Property and Portfolio Sales $2.5 Million and Up

-12.7 Percent Q4 2017 vs Q4 2016

$0

$1

$2

$3

$4

$5

'02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

Houston Commercial Real Estate Sales Volume

$ Billions – Quarterly

Property and Portfolio Sales $2.5 Million and Up

+29.0 Percent Q4 2017 vs Q4 2016

Days to Drill & Fracture

3 Years Ago -- 40 Days

Now – 19 Days

0

500

1,000

1,500

2,000

2,5004-

Jan-

02

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North American Drilling Rig Counts Number of Operating Rigs

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