What are the risks associated with investing in BRXS Properties?

As with all investments, there are risks when investing in real estate that you should take into account:

• Vacancy: a longer period without a tenant can lower your return due to a reduction in rental income. We minimize this risk by investing in properties in cities and neighbourhoods where we believe there is strong demand for rental properties.

• Defaulting tenant: it may happen that a tenant is no longer able to pay the rent, which will result in us having to terminate the lease. This can be time consuming, can lead to lower net rental income and therefore a lower return on your investment.

• Operating costs: the costs of a property can increase faster than expected and faster than the rental income. This could lead to lower net rental income and a lower return on your investment. During the purchase process, we conduct a thorough survey and technical inspection of the property to map out and budget for all necessary repairs and renovations. But we can never rule out an unexpected repair.

• Housing market risk: the housing market in the Netherlands has experienced strong increases due to increasing demand while there is a structural shortage of housing. But the past is no guarantee for the future and there have also been periods in the past 30 years when house prices fell.

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It is also good to keep the following principles in mind:

• Diversify your portfolio so that you are less exposed to a single investment. This helps you limit and spread your risk.

• Investments have a higher chance of a good return over a longer period of time, so we advise against investing money you might need in the short term and only investing money you can afford to lose. Long-term investing also helps to mitigate the impact of potential downturns in the housing market.

For additional information and a comprehensive overview of the main risks, please read the three part prospectus for the serie notes carefully. Each serie notes may have specific risks and the securities note outlines the material risks that could potentially occur and that we are aware of for that specific serie.

Each serie of notes has a security right granted to investors. In the worst case scenario, when an investment property can no longer be made profitable, BRXS Properties will sell the property. The net proceeds of the sale will be used to pay back the note loan. If the property is sold for a lower price than originally purchased, you could lose all or part of your investment.