Shared and Transition Services

Under a shared services arrangement with MMC, MMREIS was charged $1.0 million for reimbursement of health insurance premiums, $109,000 for general and administrative expenses and $186,000 in shared services during the three months ended June 30, 2013 and MMREIS was charged $1.8 million for reimbursement of health insurance premiums, $389,000 for general and administrative expenses and $403,000 in shared services during the six months ended June 30, 2013.

In connection with the IPO, the shared services arrangement with MMC was replaced by a Transition Services Agreement between the Company and MMC that became effective on October 31, 2013 whereby MMC provides certain services to the Company for a limited period of time. During the three and six months ended June 30, 2014, $0 and $1.0 million, respectively was incurred for reimbursement to MMC for health insurance premiums and $53,000 and $187,000, respectively for other costs, which are included in selling, general, and administrative expense in the accompanying condensed consolidated statements of net and comprehensive income. Effective April 2014, MMI has its own health insurance plan. As of June 30, 2014 and December 31, 2013, $74,000 and $506,000, respectively, remains unpaid and included in accounts payable and other accrued expenses – related party in the accompanying condensed consolidated balance sheets.

Financing and Brokerage Services with the Subsidiaries of MMC

For the three months ended June 30, 2014 and 2013, the Company recorded real estate brokerage commissions and financing fees of $0 and $67,500, respectively, and cost of services of $0 and $40,500, respectively from certain subsidiaries of MMC. For the six months ended June 30, 2014 and 2013, the Company recorded real estate brokerage commissions and financing fees of $60,000 and $382,000, respectively, and cost of services of $36,000 and $228,000, respectively from certain subsidiaries of MMC.

Operating Lease with MMC

The Company has an operating lease with MMC for an office located in Palo Alto, California. The lease expires April 30, 2015. Rent expense for this office totaled $109,500 for each of the three months ended June 30, 2014 and 2013, respectively which is included in selling, general, and administrative expense in the accompanying condensed consolidated statements of net and comprehensive income. Rent expense totaled $219,000 and $179,000 for the six months ended June 30, 2014 and 2013, respectively, which is included in selling, general and administrative expense in the accompanying condensed consolidated statements of net and comprehensive income.

Other

Following the IPO, Mr. Marcus, the Company’s founder and Co-Chairman, continues to own indirectly approximately 67% of the Company’s fully diluted shares, including shares to be issued upon settlement of vested deferred stock units, or DSUs.

Total dividends declared and paid to MMC for the six months ended June 30, 2013 were $24.7 million.

Prior to its termination on June 30, 2013, the Company was subject to a cash sweep arrangement with MMC. Under the arrangement, the Company’s cash was swept daily into an MMC money market account. The Company received interest on the balances held in the sweep accounts. The Company earned interest of $33,000 and $74,000 on the balances for the three and six months ended June 30, 2013, respectively.

The Company, from time-to-time makes advances to non-executive employees. At June 30, 2014 and December 31, 2013, the aggregate principal amount for employee loans outstanding was $423,000 and $419,000, respectively which is included in employee notes receivable in the accompanying condensed consolidated balance sheets.