Capital Discipline

Capital Structure Policy

Algonquian Real Estate, LLC prioritizes financial durability over expansion speed. Capital decisions are evaluated through a risk-management framework designed to protect long-term asset performance.

Our capital structure emphasizes:

• Conservative loan-to-value parameters
• Minimum stabilized DSCR of 1.25x or greater
• Stress-tested underwriting assumptions
• Preference for fixed-rate or predictably structured debt
• Maintenance of liquidity at acquisition

We do not pursue aggressive leverage, speculative refinancing assumptions, or capital structures that compromise long-term solvency.

Cash Flow Allocation Framework

Net operating income is allocated in the following priority order:

1. Operating expenses
2. Debt service
3. Capital reserve funding
4. Contingency retention
5. Distributions (when appropriate)

Distributions remain secondary to asset stability.

Growth Governance

Expansion is conditioned upon:

• Proven operational performance
• Stable historical debt coverage
• Preserved liquidity
• Market conditions consistent with underwriting assumptions

Growth will not compromise capital strength or underwriting standards.