Scottsdale Residences LLC

“Line 2 all officers and directors of the filing organization have a business relationship with one another by virtue of their positions as officers, directors, and/or key employees of invesco advisers, inc.”

“Line 3, 6, 7a, 7b, 11B, 19 SCOTTSDALE RESIDENCES, LLC's stock is owned 100% by Public Employees' Retirement System of Nevada. Public Employees' Retirement System of Nevada has engaged Invesco Real Estate, an independent management company, to manage all aspects of the entity including preparing the financial statements and tax returns. Public Employees' Retirement System of Nevada has the ability to hire and fire the management company at any time, and Public Employees' Retirement System of Nevada is ultimately responsible for all decisions. Invesco personnel hold the officer positions, but Public Employees' Retirement System of Nevada has the ability to remove/change officers at any time. Invesco engages a paid preparer to prepare the tax return based on financial statements provided by Invesco. Once the return is prepared, it is sent to Invesco for review by the accountant assigned to the entity and the officer signing the return. Organization documents and financial statements related to the entity are not made available to the public.”

“Line 8B SCOTTSDALE RESIDENCES, LLC does not have any committee with authority to act on behalf of the governing body. As such, no committee meeting minutes or other documentation have been required.”

“LINE 1 INVESCO ADVISERS, INC. MANAGEMENT SERVICES $418,657 2001 ROSS AVENUE, STE 3400 DALLAS, TX 75201 Alliance Residential Company Property Manager $114,603 2525 E Camelback Rd Suite 500 Phoenix, AZ 85072-2133 AO SERVICES REPAIR SERVICES $133,105 640 S. PERRY LN, SUITE 102 TEMPE, AZ 85281”

“Line 9 - other changes in fund balance include: additional paid-in capital 424,362 distributions to shareholder (3,932,662) ------------- (3,508,300)”

“Line 2b an outside accounting firm performs an annual audit on the consolidated financial statements of the public employees' retirement system of nevada's (parent's) core real estate portolio. The consolidated financial statements include the financial information for scottsdale residences, llc (taxpayer). However, to accomodate the parent's financial statement audit, the consolidated financial statements of the real estate portfolio are audited on the fiscal year ended march 31, which differs from the taxpayer's fiscal and tax year ended june 30.”