Belpointe PREP, LLC 10-K

Item 8. Financial Statements and Supplementary Data. TABLE OF CONTENTS Page No. Report of Independent Registered Public Accounting Firm (PCAOB Firm ID: 2468 ) 51 Report of Independent Registered Public Accounting Firm (PCAOB Firm ID: 596 ) 52 Consolidated Balance Sheets as of December 31, 2025 and 2024 53 Consolidated Statements of Operations for the years ended December 31, 2025 and 2024 54 Consolidated Statements of Changes in Members’ Capital for the years ended December 31, 2025 and 2024 55 Consolidated Statements of Cash Flows for the years ended December 31, 2025 and 2024 56 Notes to Consolidated Financial Statements 57 50 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Members of Belpointe PREP, LLC Opinion on the Financial Statements We have audited the accompanying consolidated balance sheet of Belpointe PREP, LLC and subsidiaries (the “Company”) as of December 31, 2025, and the related consolidated statements of operations, changes in members’ capital, and cash flows for the year then ended, and the related notes to the consolidated financial statements (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These financial statements are the responsibility of the entity’s management. Our responsibility is to express an opinion on the entity’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (the “PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, we express no such opinion. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion. /s/ CohnReznick, LLP We have served as the Company’s auditor since 2025. New York, New York March 19, 2026 51 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Members of Belpointe PREP, LLC Opinion on the Financial Statements We have audited the accompanying consolidated balance sheet of Belpointe PREP, LLC (the “Company”) as of December 31, 2024, and the related consolidated statements of operations, changes in members’ capital and cash flows for the year ended December 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024, and the results of its operations and its cash flows for the year ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion. /s/ Citrin Cooperman & Company, LLP We have served as the Company’s auditor from 2020 to 2025. New York, New York March 31, 2025 52 Table of Contents Belpointe PREP, LLC Consolidated Balance Sheets (in thousands, except unit and per unit data) December 31, 2025 2024 Assets Real estate Land $ 63,116 $ 51,038 Building and improvements 410,263 238,684 Furniture, fixtures and equipment 7,700 2,633 Intangible assets 8,197 8,530 Real estate under construction 57,838 191,308 Total real estate 547,114 492,193 Accumulated depreciation and amortization ( 15,234 ) ( 6,917 ) Real estate, net 531,880 485,276 Cash and cash equivalents 24,342 24,737 Other assets 7,974 7,578 Total assets $ 564,196 $ 517,591 Liabilities Debt, net $ 260,638 $ 177,017 Loan from affiliate — 2,600 Due to affiliates 9,366 9,103 Intangible liabilities, net 1,127 1,225 Accounts payable 12,383 13,322 Accrued expenses and other liabilities 5,467 10,267 Total liabilities 288,981 213,534 Commitments and contingencies — — Members’ Capital Class A units, unlimited units authorized, 3,836,696 and 3,664,173 units issued and outstanding at December 31, 2025 and 2024, respectively 272,958 301,776 Class B units, 100,000 units authorized, 100,000 units issued and outstanding at December 31, 2025 and 2024, respectively — — Class M unit, one unit authorized, one unit issued and outstanding at December 31, 2025 and 2024, respectively — — Total members’ capital excluding noncontrolling interests 272,958 301,776 Noncontrolling interests 2,257 2,281 Total members’ capital 275,215 304,057 Total liabilities and members’ capital $ 564,196 $ 517,591 See accompanying notes to consolidated financial statements. 53 Table of Contents Belpointe PREP, LLC Consolidated Statements of Operations (in thousands, except unit and per unit data) Years Ended December 31, 2025 2024 Revenue Rental revenue $ 9,187 $ 2,675 Total revenue 9,187 2,675 Expenses Property expenses 14,966 6,839 General and administrative 6,166 5,111 Interest expense 17,441 10,006 Depreciation and amortization 8,707 4,215 Impairment of real estate — 777 Total expenses 47,280 26,948 Other (loss) income Interest income 1,028 646 Other expense ( 46 ) ( 228 ) Loss on extinguishment of debt ( 2,960 ) — Total other (loss) income ( 1,978 ) 418 Loss before income taxes ( 40,071 ) ( 23,855 ) Provision for income taxes — ( 1 ) Net loss ( 40,071 ) ( 23,856 ) Net loss attributable to noncontrolling interests 25 — Net loss attributable to Belpointe PREP, LLC $ ( 40,046 ) $ ( 23,856 ) Loss per Class A unit (basic and diluted) Net loss per unit $ ( 10.72 ) $ ( 6.56 ) Weighted-average units outstanding 3,735,891 3,638,258 See accompanying notes to consolidated financial statements. 54 Table of Contents Belpointe PREP, LLC Consolidated Statements of Changes in Members’ Capital (in thousands, except unit and per unit data) Units Amount Units Amount Units Amount Interests Interests Capital Class A units Class B units Class M unit Total Members’ Capital Excluding Noncontrolling Noncontrolling Total Members’ Units Amount Units Amount Units Amount Interests Interests Capital Balance at December 31, 2023 3,622,399 $ 322,626 100,000 $ — 1 $ — $ 322,626 $ 2,438 $ 325,064 Issuance of units 41,774 3,061 — — — — 3,061 — 3,061 Contribution from noncontrolling interests — — — — — — — 51 51 Distribution to noncontrolling interests — — — — — — — ( 47 ) ( 47 ) Acquisition of noncontrolling interests — ( 39 ) — — — — ( 39 ) ( 161 ) ( 200 ) Offering costs — ( 16 ) — — — — ( 16 ) — ( 16 ) Net loss — ( 23,856 ) — — — — ( 23,856 ) — ( 23,856 ) Balance at December 31, 2024 3,664,173 301,776 100,000 — 1 — 301,776 2,281 304,057 Balance 3,664,173 301,776 100,000 — 1 — 301,776 2,281 304,057 Issuance of units 172,523 11,264 — — — — 11,264 — 11,264 Contribution from noncontrolling interests — — — — — — — 1 1 Offering costs — ( 36 ) — — — — ( 36 ) — ( 36 ) Net loss — ( 40,046 ) — — — — ( 40,046 ) ( 25 ) ( 40,071 ) Balance at December 31, 2025 3,836,696 $ 272,958 100,000 $ — 1 $ — $ 272,958 $ 2,257 $ 275,215 Balance 3,836,696 $ 272,958 100,000 $ — 1 $ — $ 272,958 $ 2,257 $ 275,215 See accompanying notes to consolidated financial statements. 55 Table of Contents Belpointe PREP, LLC Consolidated Statements of Cash Flows (in thousands) Year Ended December 31, 2025 2024 Cash flows from operating activities Net loss $ ( 40,071 ) $ ( 23,856 ) Adjustments to net loss: Amortization of rent-related intangibles and straight-line rent adjustments ( 71 ) ( 2 ) Depreciation and amortization including intangible assets and deferred financing costs 10,850 5,514 Impairment of real estate — 777 Loss on extinguishment of debt 2,960 — Unrealized loss on interest rate derivatives, net 32 225 Changes in operating assets and liabilities: Increase in other assets ( 1,061 ) ( 223 ) Increase in due to affiliates 946 2,513 Decrease in accounts payable ( 130 ) ( 248 ) Increase in accrued expenses and other liabilities 1,337 1,611 Net cash used in operating activities ( 25,208 ) ( 13,689 ) Cash flows from investing activities Development of real estate ( 61,788 ) ( 137,845 ) Other investing activity ( 192 ) ( 244 ) Net cash used in investing activities ( 61,980 ) ( 138,089 ) Cash flows from financing activities Proceeds from term loans 176,787 55,755 Repayment of construction loan ( 113,277 ) — Proceeds from construction loans 67,559 102,767 Repayment of term loan ( 51,092 ) — Proceeds from units issued 11,264 3,061 Repayment of loans from affiliates ( 2,600 ) ( 4,000 ) Payment of debt issuance costs ( 1,776 ) ( 3,143 ) Other financing activities, net 189 226 Payment of offering costs ( 26 ) ( 47 ) Contributions from noncontrolling interests 1 52 Proceeds from short-term loan from affiliate — 2,600 Distribution to noncontrolling interests — ( 247 ) Net cash provided by financing activities 87,029 157,024 Net (decrease) increase in cash and cash equivalents, and restricted cash ( 159 ) 5,246 Cash and cash equivalents, and restricted cash, beginning of year 28,831 23,585 Cash and cash equivalents, and restricted cash, end of year $ 28,672 $ 28,831 See accompanying notes to consolidated financial statements. 56 Table of Contents BELPOINTE PREP, LLC NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 – Organization, Business Purpose and Capitalization Organization and Business Purpose Belpointe PREP, LLC (together with its subsidiaries, the “Company,” “we,” “us,” or “our”) is focused on identifying, acquiring, developing or redeveloping and managing commercial real estate located within “qualified opportunity zones.” We were formed on January 24, 2020 as a Delaware limited liability company and are treated as a partnership and qualified opportunity fund for U.S. federal income tax purposes. At least 90% of our assets consist of qualified opportunity zone property, and all of our assets are held by, and all of our operations are conducted through, one or more operating companies (each an “Operating Company” and collectively, our “Operating Companies”), either directly or indirectly through their subsidiaries. We are externally managed by Belpointe PREP Manager, LLC (our “Manager”), an affiliate of our sponsor, Belpointe, LLC (our “Sponsor”). Subject to the oversight of our board of directors (our “Board”), our Manager is responsible for managing our affairs on a day-to-day basis and for identifying and making acquisitions, dispositions, and other investments on our behalf. Capitalization We are the successor in interest to Belpointe REIT, Inc., a Maryland corporation (“Belpointe REIT”), incorporated on June 19, 2018. During the year ended December 31, 2021, we acquired all of the outstanding shares of common stock of Belpointe REIT in an exchange offer and related conversion and merger transaction. On May 9, 2023, the U.S. Securities and Exchange Commission (the “SEC”) declared effective our registration statement on Form S-11, as amended (File No. 333-271262) (the “Follow-on Registration Statement”), registering the offer and sale of up to $ 750,000,000 of our Class A units on a continuous “best efforts” basis by any method deemed to be an “at the market” offering pursuant to Rule 415(a)(4) under the Securities Act of 1933, as amended (the “Securities Act”), including by offers and sales made directly to investors or through one or more agents (our “Follow-on Offering”). In connection with the Follow-on Offering, we entered into a non-exclusive dealer manager agreement with Emerson Equity LLC (the “Dealer Manager”), a registered broker-dealer, for the sale of our Class A units through the Dealer Manager. The Dealer Manager has and will continue to enter into participating dealer agreements and wholesale agreements with other broker-dealers, referred to as “selling group members,” to authorize those broker-dealers to solicit offers to purchase our Class A units. We pay our Dealer Manager commissions of up to 0.25 %, and the selling group members commissions ranging from 0.25 % to 4.50 %, of the principal amount of Class A units sold in the Follow-on Offering. For the year ended December 31, 2025, we have sold aggregate gross proceeds of $ 11.3 million, of Class A units in connection with our Follow-on Offering. Together with the gross proceeds raised in our primary offering, which expired in 2024 (our “Primary Offering” and, together with our Follow-on Offering, our “Public Offerings”) and the gross proceeds raised in Belpointe REIT, Inc.’s prior offerings, as of December 31, 2025, we have raised aggregate gross offering proceeds of $ 368.6 million. The purchase price for Class A units in our Follow-on Offering is the lesser of (i) the current net asset value (the “NAV”) of our Class A units, and (ii) the average of the high and low sale prices of our Class A units on the NYSE American (the “NYSE”) during regular trading hours on the last trading day immediately preceding the investment date on which the NYSE was open for trading and trading in our Class A units occurred. Our Manager calculates our NAV within approximately 60 days of the last day of each quarter, and any adjustments take effect as of the first business day following its public announcement. On March 4, 2026, we announced that our NAV as of December 31, 2025 was equal to $ 116.17 per Class A unit. Note 2 – Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared on the accrual basis of accounting and conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and Article 8 of Regulation S-X of the rules and regulations of the SEC. 57 Table of Contents Basis of Consolidation The accompanying consolidated financial statements reflect all of our accounts, including those of our controlled subsidiaries. The portion of members’capital (deficit) in controlled subsidiaries that are not attributable, directly or indirectly, to us are presented in noncontrolling interests. All significant intercompany accounts and transactions have been eliminated. We have evaluated our economic interests in entities to determine if they are deemed to be variable interest entities (“VIEs”) and whether the entities should be consolidated. An entity is a VIE if it has any one of the following characteristics: (i) the entity does not have enough equity at risk to finance its activities without additional subordinated financial support; (ii) the at-risk equity holders, as a group, lack the characteristics of a controlling financial interest; or (iii) the entity is structured with non-substantive voting rights. The distinction between a VIE and other entities is based on the nature and amount of the equity investment and the rights and obligations of the equity investors. Fixed price purchase and renewal options within a lease, as well as certain decision-making rights within a loan or joint-venture agreement, can cause us to consider an entity a VIE. Limited partnerships and other similar entities that operate as a partnership will be considered VIEs unless the limited partners hold substantive kick-out rights or participation rights. Significant judgment is required to determine whether a VIE should be consolidated. We review all agreements and contractual arrangements to determine whether (i) we or another party have any variable interests in an entity, (ii) the entity is considered a VIE, and (iii) which variable interest holder, if any, is the primary beneficiary of the VIE. Determination of the primary beneficiary is based on whether a party (a) has the power to direct the activities that most significantly impact the economic performance of the VIE, and (b) has the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. The following table presents the financial data of the consolidated VIEs,which are considered VIE’s as they do not have sufficient equity at risk to finance their activities without additional subordinated financial support, included in the consolidated balance sheets as of December 31, 2025 and 2024, respectively (amounts in thousands): Schedule of Carrying Value Net Assets 2025 2024 December 31, 2025 2024 Assets Real estate Land $ 53,301 $ 41,223 Building and improvements 407,736 236,165 Furniture, fixtures and equipment 7,700 2,633 Intangible assets 6,083 6,174 Real estate under construction 57,580 190,750 Total Real estate 532,400 476,945 Accumulated depreciation and amortization ( 13,886 ) ( 5,578 ) Real estate, net 518,514 471,367 Cash and cash equivalents 2,943 2,566 Other assets 7,288 7,096 Total assets $ 528,745 $ 481,029 Liabilities Debt, net $ 260,638 $ 177,017 Due to affiliates 3,280 3,413 Intangible liabilities, net — 21 Accounts payable 12,294 13,137 Accrued expenses and other liabilities 4,685 9,690 Total liabilities $ 280,897 $ 203,278 An interest in a VIE requires reconsideration when an event occurs that was not originally contemplated. At each reporting period we will reassess whether there are any events that require us to reconsider our determination of whether an entity is a VIE and whether it should be consolidated. 58 Table of Contents Emerging Growth Company Status We are an “emerging growth company,” as defined in the Jump Start Our Business Startups Act of 2012 (“JOBS Act”). Under Section 107 of the JOBS Act, emerging growth companies are permitted to use an extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended (the “Securities Act”), for complying with new or revised accounting standards that have different effective dates for public and private companies. We have elected to use the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards which is the earlier of (i) the last day of the fiscal year (a) following the fifth anniversary of the effective date of our Primary Offering (which will be September 30, 2026), (b) in which we have total annual gross revenue of at least $1.235 billion, or (c) in which we are deemed to be a “large accelerated filer” (as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), (ii) the date on which we have issued more than $1.0 billion in non-convertible debt during the preceding three-year period, or (iii) the date that we affirmatively and irrevocably opt out of the extended transition period provided in Section 7(a)(2)(B). By electing to extend the transition period for complying with new or revised accounting standards, our consolidated financial statements may not be comparable to the consolidated financial statements of companies that comply with public company effective dates. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and the accompanying notes to the consolidated financial statements. Actual results could materially differ from those estimates. Segment Reporting Our Chief Executive Officer is our chief operating decision maker (“CODM”). We are focused on identifying, acquiring, developing or redeveloping and managing real estate assets located within qualified opportunity zones. Our operating segments are based on the way we organize and evaluate our business internally. We currently have two operating and reportable segments, commercial and mixed-use, which are further described in Note 12 - Segment Reporting . Allocation of Purchase Price of Acquired Assets and Liabilities Upon the acquisition of real estate properties we determine whether a transaction is a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the assets acquired are not a business, we account for the transaction as an asset acquisition. We capitalize acquisition-related costs and fees associated with our asset acquisitions, and expense acquisition-related costs and fees associated with business combinations. It is our policy to allocate the purchase price of properties to acquired tangible assets, consisting of land, buildings, fixtures and improvements, and identified intangible lease assets and liabilities, consisting of the value of above-market and below-market leases, as applicable, the value of in-place leases, certain development rights and the value of tenant relationships, based in each case on their relative fair values. The fair value of the tangible assets of an acquired property is determined by valuing the property as if it were vacant, which value is then allocated to land, buildings and improvements based on management’s determination of the fair values of these assets. We measure the aggregate value of intangible assets and liabilities acquired based on the difference between the property valued (i) with existing in-place leases, adjusted to market rental rates, and (ii) as if vacant. Other factors considered include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions and costs to execute similar leases. We consider information obtained about each property as a result of its pre-acquisition due diligence, marketing and leasing activities in estimating the fair value of the tangible and intangible assets acquired. In estimating carrying costs, we include real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods. We estimate costs to execute similar leases including leasing commissions and legal and other related expenses to the extent that such costs have not already been incurred in connection with a new lease origination as part of the transaction. In connection with the purchase of real property for development use, development rights are often transferred from one party to another to provide additional density. This transfer of rights allows an entity to permit, construct and develop additional dwelling units. Accordingly, we allocate a portion of the purchase price to these development right intangible assets based on the value attributed to the land of which we do not hold title to but are provided density transfer rights over. These rights are amortized to amortization expense over the useful life based on the respective contract. If the rights are transferred in perpetuity and there are no legal, regulatory, contractual, competitive, economic or other factors that limit its useful life, we consider the intangible asset indefinite-lived and therefore do not amortize. 59 Table of Contents The total amount of other intangible assets acquired are further allocated to in-place lease values and customer relationship intangible values based on management’s evaluation of the specific characteristics of each tenant’s lease and our overall relationship with that respective tenant. We consider the nature and extent of our existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals (including those existing under the terms of the lease agreement), among other factors. We amortize the value of in-place leases to depreciation and amortization expense over the remaining term of the respective leases (as well as any applicable below market renewal options). The value of customer relationship intangibles will be amortized to expense over the initial term in the respective leases, but in no event will the amortization periods for the intangible assets exceed the remaining depreciable life of the building. Should a tenant terminate its lease, the unamortized portion of the in-place lease value and customer relationship intangibles would be charged to expense in that period. The values of acquired above-market and below-market leases are determined based on our experience and the relevant facts and circumstances that existed at the time of the acquisitions and are recorded based on the present values (using discount rates which reflect the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the leases negotiated and in place at the time of acquisition of the properties, and (ii) our estimate of fair market lease rates for the properties or equivalent properties. Such valuations include consideration of the non-cancellable terms of the respective leases (as well as any applicable below market renewal options). The values of above and below-market leases associated with the original non-cancelable lease term are amortized to rental revenue over the terms of the respective non-cancelable lease periods. The portion of the values of the leases associated with below-market renewal options, that are likely to be exercised, are amortized to rental revenue over the respective renewal periods. When we acquire leveraged properties, the fair value of the related debt instruments is determined using a discounted cash flow model with rates that take into account the credit of the tenants, where applicable, and interest rate risk. Such resulting premium or discount is amortized over the remaining term of the obligation and is included in Interest expense in our consolidated statements of operations. We also consider the value of the underlying collateral taking into account the quality of the collateral, the credit quality of the tenant, the time until maturity and the current interest rate. The determination of the fair value of the assets and liabilities acquired requires the use of significant assumptions with regard to current market rental rates, discount rates and other variables. Real Estate Real estate is carried at cost, less accumulated depreciation. Expenditures which improve or extend the useful life of the assets are capitalized, while expenditures for maintenance and repairs, which do not extend lives of the assets, are charged to expense. Deprecation is calculated using the straight-line method based on the estimated useful lives of the respective assets (not to exceed 40 years). Project costs directly related to the construction and development of real estate projects (including but not limited to interest and related loan fees, property taxes, insurance and legal costs) are capitalized as a cost of the project. Indirect project costs that relate to projects are capitalized and allocated to the projects to which they relate. Pertaining to assets under development, capitalization begins when both direct and indirect project costs have been made and it is determined that development of the future asset is probable. If we suspend substantially all activities related to the project, we will cease cost capitalization of indirect costs until activities are resumed. We will not suspend cost capitalization for brief interruptions, interruptions that are externally imposed, or delays that are inherent in the development process unless there are other circumstances involved that warrant a judgmental decision to cease capitalization. In addition, capitalization of project costs will cease when the project is considered substantially completed and occupied, or ready for its intended use (but no later than one year from cessation of major construction activity). Upon substantial completion, depreciation of these assets will commence. If discrete portions of a project are substantially completed and occupied and other portions have not yet reached that stage, the substantially completed portions are accounted for separately. We allocate costs incurred between the portions under construction and the portions substantially completed and only capitalize those costs associated with the portions under construction. Impairment of Long-Lived Assets We evaluate our tangible and identifiable intangible real estate assets for impairment when events such as delays or changes in development, declines in a property’s operating performance, deteriorating market conditions, or environmental or legal concerns bring recoverability of the carrying value of one or more assets into question. When qualitative factors indicate the possibility of impairment, the total undiscounted cash flows of the property, including proceeds from disposition, are compared to the net book value of the property. If the carrying value of the asset exceeds the undiscounted cash flows of the asset, an impairment loss is recorded in earnings to reduce the carrying value of the asset to fair value, calculated as the discounted net cash flows of the property. In circumstances where the highest and best use of a property is the fee simple value of vacant land, we compare book value of the property to the appraised value of the land. If the carrying value of the asset exceeds the appraised value of the land, an impairment loss is recorded to reduce the carrying value to the appraised value. 60 Table of Contents Abandoned Pursuit Costs Pre-development and due diligence costs incurred in pursuit of new development and acquisition opportunities, which we deem to be probable, will be capitalized in Other assets in our consolidated balance sheets. If the development or acquisition opportunity is not probable or the status of the project changes such that it is deemed no longer probable, the costs incurred will be expensed. Initial Direct Costs Initial direct costs are incremental costs of a lease that would not have been incurred had the lease not been executed. Such costs include lease incentives and leasing commissions. Costs incurred to obtain tenant leases are amortized using the straight-line method over the term of the related lease agreement. If the lease is terminated early, the remaining unamortized deferred leasing cost is written off. Initial direct costs are capitalized in Other assets in our consolidated balance sheets. Deferred Financing Costs We capitalize fees as well as other expenditures incurred that are necessary to obtain debt financing. Fees paid to lenders upon the issuance of debt are reflected as a debt discount. Such fees and costs are generally presented as direct deduction from the related debt liability and are amortized on a straight-line basis, which approximates the effective interest method, over the term of the loan. In circumstances when debt is retired prior to maturity, any unamortized financing costs are included in the calculation of gain or loss on debt extinguishment. Derivative Instruments Our derivative instruments are measured at fair value and are recorded as either assets or liabilities in our consolidated balance sheets depending on the pertinent rights or obligations under the applicable derivative contract. The derivative contracts that we may enter into are generally concurrent with obtaining floating rate debt and are intended to manage the economic risk and cash flows related to increases in benchmark interest rates. Our derivative instruments are not designated as hedges for accounting purposes, and therefore we account for changes in the fair value of the derivative instruments as either a gain or loss in the consolidated statements of operations. Cash and Cash Equivalents Cash and cash equivalents consist of cash held in major financial institutions, cash on hand and liquid investments with original maturities of three months or less. Cash balances may at times exceed federally insurable limits per institution, however, we deposit our cash and cash equivalents with high-credit-quality institutions to minimize credit risk exposure. Restricted Cash Restricted cash consists of amounts required to be reserved pursuant to contractual obligations and lender agreements for debt service. The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within our consolidated balance sheets to our consolidated statements of cash flows (amounts in thousands): Schedule of Restricted Cash and Cash Equivalents 2025 2024 December 31, 2025 2024 Cash and cash equivalents $ 24,342 $ 24,737 Restricted cash (1) 4,330 4,094 Total cash and cash equivalents and restricted cash $ 28,672 $ 28,831 (1) Restricted cash is included within Other assets in our consolidated balance sheets. 61 Table of Contents Subscriptions Receivable Subscriptions receivable consists of units that have been issued with subscriptions that have not yet settled. Subscriptions receivable are carried at cost which approximates fair value. As of December 31, 2025 and 2024, there were no subscriptions that had not yet settled. Non-controlling Interest A non-controlling interest in a subsidiary (minority interest) is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements and separate from the parent company’s equity. In addition, consolidated net income (loss) is required to be reported at amounts that include the amounts attributable to both the parent and the noncontrolling interest and the amount of consolidated net income (loss) attributable to the parent and the noncontrolling interests are required to be disclosed on the face of the consolidated statements of operations. Organization, Public Offerings and Other Operating Costs Organization costs are expensed as incurred. Offering expenses include, without limitation, legal, accounting, printing, mailing and filing fees and expenses, fees and expenses of our transfer agent. Offering costs, when incurred, will be charged to members’ equity against the gross proceeds of an offering. Our Public Offering costs for the years ended December 31, 2025, and 2024, were less than $ 0.1 million and less than $ 0.1 million, respectively. We became liable to reimburse our Manager and its affiliates, including our Sponsor, when the first closing was held in connection with our Primary Offering, which occurred in October 2021. Pursuant to a Management Agreement by and among the Company, our Operating Companies and our Manager (the “Management Agreement”), we reimburse our Manager, Sponsor, and their respective affiliates, for actual expenses incurred on our behalf in connection with the selection, acquisition or origination of an investment, whether or not we ultimately acquire or originate the investment. We also reimburse our Manager, Sponsor, and their respective affiliates, for out-of-pocket expenses paid to third parties in connection with providing services to us. Pursuant to an Amended and Restated Services and Cost Sharing Agreement (the “Services and Cost Sharing Agreement”) by and among the Company, our Operating Companies, our Manager, our Sponsor, and certain of our Sponsor’s subsidiaries, associates and affiliates (collectively, the “Sponsor Group”), we reimburse the Sponsor Group and our Manager for expenses incurred for our allocable share of the salaries, benefits and overhead of personnel providing services to us. The expenses are payable, at the election of the recipient, in cash, by issuance of our Class A units at the then-current NAV, or through some combination of the foregoing. Risks and Uncertainties Demand for commercial and mixed-use rental properties is subject to a number of risks and uncertainties, including, among others, interest rate risk, the availability of credit, higher rates of inflation, the rate of unemployment, ongoing supply chain disruptions, the impact of general global economic conditions, trade disputes, tariffs, recent military actions in Iran and the Middle East, and changes in federal income tax and other laws. The potential effect of these and other factors presents material uncertainty and risk with respect to our future performance and financial results, including the potential to negatively impact the timing of completion and stabilization of our assets, our costs of operations, our financing arrangements, the value of our investments, and the laws, regulations, and government and regulatory policies applicable to us. We are closely monitoring the potential impact of these and other factors on all aspects of our investments and operations. Other Assets and Liabilities Other assets in our consolidated balance sheets include our transaction costs pertaining to our deal pursuits, restricted cash, interest on loan receivables, property deposits, capitalized leasing commissions, corporate fixed assets, utility deposits, prepaid expenses, and accounts receivable. We include accrued expenses, straight-line lease liabilities, accrued interest, prepaid rent, leasing commission payables and security deposits payable in Accrued expenses and other liabilities in our consolidated balance sheets. Income Taxes We have been treated as a partnership for U.S. federal income tax purposes since our tax year ended December 31, 2020, and intend to continue to operate in a manner that will allow us to qualify as a partnership for U.S. federal income tax purposes. Generally, an entity that is treated as a partnership for U.S. federal income tax purposes is not a taxable entity and incurs no U.S. federal income tax liability. Accordingly, no provision for U.S. federal income taxes has been made in our consolidated financial statements because each of our members recognize their proportionate share of our income or loss on their tax returns. If we fail to qualify as a partnership for U.S. federal income tax purposes in any taxable year, and if we are not entitled to relief under the Code for an inadvertent termination of our partnership status, we will be subject to federal and state income tax on our taxable income at regular corporate income tax rates. 62 Table of Contents Loss Per Unit Loss per unit represents both basic and dilutive per-unit amounts for the period presented in our consolidated financial statements. Basic and diluted loss per unit is calculated by dividing Net loss attributable to the Company by the weighted-average number of Class A units outstanding during the year. Recent Accounting Pronouncements In November 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40))—Disaggregation of Income Statement Expenses (“ASU 2024-03”), and in January 2025, the FASB issued ASU No. 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)—Clarifying the Effective Date (“ASU 2025-01”). ASU 2024-03 requires public entities to provide disaggregated disclosure of certain income statement expense captions within the footnotes to the financial statements. ASU No. 2024-03, as clarified by ASU 2025-01, is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. We are currently evaluating the impact ASU No. 2024-03, as clarified by ASU 2025-01, will have on our consolidated financial statements and disclosures. In May 2025, the FASB issued ASU No. 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity (“ASU 2025-03”). ASU 2025-03 requires public business entities to assess which entity is the accounting acquirer for a business combination that is effected primarily by exchanging equity interest in which a VIE is acquired. ASU 2025-03 is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. We are currently evaluating the impact ASU 2025-03 will have on our consolidated financial statements and disclosures. In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270)—Narrow Scope Improvements (“ASU 2025-11”). ASU 2025-11 clarifies interim disclosure requirements and the applicability of Topic 270. ASU 2025-11 is effective for interim periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the impact ASU 2025-11 will have on our consolidated financial statements and disclosures. Note 3 – Leases Lessor Accounting We earn lease revenue from our residential, retail, office, and warehouse properties that are leased to tenants under operating leases. Our leases for residential units typically have terms between 12 and 24 months. Our leases with commercial tenants have a weighted average lease term of 11.7 years as of December 31, 2025. Certain of our leases may include options to extend or terminate the lease, which are included in the lease term when we are reasonably certain they will be exercised. Revenues from such leases are reported as Rental revenue in our consolidated statements of operations, and are comprised of (i) lease components, which includes fixed and variable lease payments and (ii) non-lease components, which includes reimbursements of property level operating expenses. We have elected the practical expedient under Accounting Standards Codification Topic 842, Leases, to combine both lease and non-lease components as the timing and pattern of transfer are the same. Fixed lease revenues represent the base rent that each tenant is required to pay in accordance with the terms of their respective leases reported on a straight-line basis over the non-cancelable term of the lease. Variable lease revenues include payments based on (i) tenant reimbursements, (ii) changes in the index or market-based indices after the inception of the lease, or (iii) percentage rents. Variable lease revenues are not recognized until the specific events that trigger the variable payments have occurred. The following table summarizes the components of lease revenues (amounts in thousands): Schedule of Components of Lease Revenues 2025 2024 Years Ended December 31, 2025 2024 Fixed lease revenues $ 8,608 $ 2,121 Variable lease revenues (1) 507 552 Lease revenues (2) (3) $ 9,115 $ 2,673 (1) Includes reimbursements for property taxes, insurance, and common area maintenance services. (2) Excludes lease intangible amortization of less than $ 0.1 million, and less than $ 0.1 million, for the years ended December 31, 2025, and 2024, respectively. (3) Excludes straight-line rent of less than $ 0.1 million and less than $ 0.1 million for the years ended December 31, 2025, and 2024, respectively. In certain of our leases, the tenant is obligated to pay the real estate taxes, insurance, and certain other expenses directly to the vendor. These obligations, which have been assumed by the tenants, are not reflected in our consolidated financial statements. To the extent any such tenant defaults on its lease or if it is deemed probable that the tenant will fail to pay for such obligations, a liability for such obligations would be recorded. We assess the collectability of substantially all lease payments due, including unbilled rent receivable balances, by reviewing a tenant’s payment history and financial condition, and the age of the receivables. Changes to collectability are recognized as a current period adjustment to rental revenue. We have assessed the collectability of all recorded lease revenues as probable as of December 31, 2025. 63 Table of Contents Minimum Future Lease Payments The following table summarizes the minimum future contractual rents to be received (exclusive of expenses paid by tenants, and percentage of sales rents) on non-cancellable tenant operating leases as of December 31, 2025 (amounts in thousands): Schedule of Minimum Future Lease Payments For the year ended December 31, 2026 $ 12,495 2027 4,084 2028 1,770 2029 1,813 2030 1,865 Thereafter 12,035 Total $ 34,062 Note 4 – Related Party Arrangements Our Transaction with Belpointe Development Holding, LLC On May 16, 2024, we entered into an agreement, which has since been amended, to borrow up to $ 3.0 million in principal amount from Belpointe Development Holding, LLC, an affiliate of our Chief Executive Officer, pursuant to the terms of a revolving credit facility agreement (the “BDH Facility”). Interest accrues on the BDH Facility at an annual rate of 5.0 %, due and payable at maturity. The BDH Facility is due to mature on August 31, 2026 . Proceeds under the BDH Facility are to be used for general corporate purposes. During the year ended December 31, 2025, we repaid the outstanding balance of $ 2.6 million, and accrued interest of $ 0.2 million. As of December 31, 2025 and 2024, the BDH Facility had an outstanding principal balance of zero and $ 2.6 million, respectively, and accrued interest of zero and less than $ 0.1 million, respectively. Our Transaction with Lacoff Holding II, LLC On December 29, 2023, we borrowed $ 4.0 million from Lacoff Holding II LLC, an affiliate of our Chief Executive Officer, pursuant to the terms of a promissory note secured by a first mortgage lien on certain property owned by subsidiaries of the Company (the “LH II Loan”). The LH II Loan was due and payable on April 1, 2024 and interest accrued on the LH II Note at an annual rate of 5.26 %. The proceeds of the loan were used for general corporate purposes. On February 8, 2024, the LH II Loan, including accrued interest of less than $ 0.1 million, was repaid in full. Our Joint Venture and other Co-Ownership Arrangements Each of our investment assets has either an affiliate of our Sponsor or Manager, or their respective affiliates (together, the “Belpointe SP Group”), or an independent third party, or any combination of the foregoing, as the sponsor or co-sponsor, general partner or co-general partner, manager or co-manager, developer or co-developer of the investment asset, and our role, in general, is as a passive investor. During the years ended December 31, 2025 and 2024, less than $ 0.1 million, and less than $ 0.1 million, respectively, of noncontrolling interest contributions were made by affiliates members of the Belpointe SP Group representing their 0.1 % ownership in various investments. These noncontrolling interests will be allocated profit and loss in accordance with the respective operating agreements. Our Relationship with Our Manager and Sponsor Our Manager and its affiliates, including our Sponsor, receive fees or reimbursements in connection with our Follow-on Offering and the management of our investments. 64 Table of Contents The following table summarizes the fees incurred on our behalf by, and expenses reimbursable to, our Manager and its affiliates, including our Sponsor, in accordance with the terms of our relevant agreements with such parties (amounts in thousands): Schedule of Non Cash Activity to Related Party 2025 2024 Years Ended December 31, 2025 2024 Amounts included in the Consolidated Statements of Operations Costs incurred by our Manager and its affiliates (1) $ 3,705 $ 3,128 Management fees (2) 3,309 2,705 Insurance (3) 491 793 Property management oversight fees (2) 56 — Director compensation 85 80 Costs and expenses related parties $ 7,646 $ 6,706 Capitalized costs included in the Consolidated Balance Sheets Development fee and reimbursements $ 2,724 $ 5,438 Insurance (3) 1,485 2,479 Capitalized costs $ 4,209 $ 7,917 (1) Includes wage, overhead and other reimbursements to our Manager and its affiliates, including members of the Sponsor Group, which are included in General and administrative in our consolidated statements of operations. (2) Included in Property expenses in our consolidated statements of operations. (3) Our insurance premiums are prepaid and are included in Other assets in our consolidated balance sheets and are amortized monthly to either Property expenses or General and administrative expenses in our consolidated statements of operations or Real estate under construction in our consolidated balance sheets based on the nature of the insurance coverage. The following table summarizes amounts included in Due to affiliates in our consolidated balance sheets (amounts in thousands): Schedule of Due to Affiliates 2025 2024 December 31, 2025 2024 Management and property management fees $ 5,372 $ 4,070 Development fees 2,664 2,546 Employee cost sharing and reimbursements (1) 1,226 2,388 Insurance 83 — Director compensation 21 20 Accrued interest — 79 Amounts due to affiliates $ 9,366 $ 9,103 (1) Includes wage, overhead and other reimbursements to our Manager and its affiliates, including members of the Sponsor Group. 65 Table of Contents Other Operating Expenses Pursuant to the terms of the Management Agreement, we reimburse our Manager, Sponsor and their respective affiliates for actual expenses incurred on our behalf in connection with the selection, acquisition or origination of investments, whether or not we ultimately acquire or originate an investment. We also reimburse our Manager, Sponsor and their respective affiliates for out-of-pocket expenses paid to third parties in connection with providing services to us. Pursuant to the terms of the Services and Cost Sharing Agreement, we reimburse the Sponsor Group and our Manager for expenses incurred for our allocable share of the salaries, benefits and overhead of personnel providing services to us. During the years ended December 31, 2025, and 2024, our Manager and its affiliates, including the Sponsor Group, incurred operating expenses of $ 2.1 million and $ 2.6 million, respectively, on our behalf. The expenses are payable, at the election of the recipient, in cash, by issuance of our Class A units at the then-current NAV, or through some combination of the foregoing. As of December 31, 2025, all expenses incurred since inception have been paid in cash. Management Fee Subject to the limitations set forth in our Amended and Restated Limited Liability Company Operating Agreement (our “Operating Agreement”) and the oversight of our Board, our Manager is responsible for managing our affairs on a day-to-day basis and for the origination, selection, evaluation, structuring, acquisition, financing and development of our commercial real estate properties, real estate-related assets, including but not limited to commercial real estate loans, and debt and equity securities issued by other real estate-related companies, as well as private equity acquisitions and investments, and opportunistic acquisitions of other qualified opportunity funds and qualified opportunity zone businesses. Pursuant to the Management Agreement, we pay our Manager a quarterly management fee in arrears of one-fourth of 0.75 %. The management fee is based on our NAV at the end of each quarter. Property Management Oversight Fee We, through the individual subsidiaries of our Operating Companies, pay our Manager, or an affiliate of our Manager, an annual property management oversight fee equal to 1.5 % of revenues generated by the applicable property. Development Fees and Reimbursements Affiliates of our Sponsor are entitled to receive (i) development fees on each project in an amount that is usual and customary for comparable services rendered to similar projects in the geographic market of the project, and (ii) reimbursements for their expenses, such as employee compensation and other overhead expenses incurred in connection with the project. During the years ended December 31, 2025, and 2024, we incurred development fees earned during the construction phase of $ 2.1 million, and $ 4.2 million, respectively. As of December 31, 2025 and 2024, $ 2.7 million and $ 2.5 million, respectively, remained due and payable to our affiliates for development fees. During the years ended December 31, 2025, and 2024, we incurred employee reimbursement expenditures to our affiliates acting as development managers of $ 2.1 million, and $ 1.7 million, respectively, of which $ 0.6 million, and $ 1.1 million, respectively, is included in Real estate under construction in our consolidated balance sheets, and $ 1.6 million, $ 0.6 million, respectively, is included in General and administrative expenses in our consolidated statements of operations. As of December 31, 2025 and 2024, $ 0.6 million and $ 1.2 million, respectively, remained due and payable to our affiliates for employee reimbursement expenditures. Acquisition Fees We will pay our Manager, Sponsor, or an affiliate of our Manager or Sponsor, an acquisition fee equal to 1.5 % of the total value of any acquisition transaction, including any acquisition through merger with another entity (but excluding any transactions in which our Sponsor, or an affiliate of our Manager or Sponsor, would otherwise receive a development fee). We did not incur any acquisition fees during the years ended December 31, 2025 and 2024. Insurance Certain immediate family members of our Chief Executive Officer have a passive indirect minority beneficial ownership interest in Belpointe Specialty Insurance, LLC (“Belpointe Specialty Insurance”). Belpointe Specialty Insurance has acted, and may continue to act, as our broker in connection with the placement of insurance coverage for certain of our properties and operations. Belpointe Specialty Insurance earns brokerage commissions related to the brokerage services that it provides to us, which commissions vary, are based on a percentage of the premiums that we pay and are set by the insurer. We have also engaged Belpointe Specialty Insurance to provide us with contract insurance consulting services related to owner-controlled insurance programs, for which we pay an administration fee. Management believes that the commissions that Belpointe Specialty Insurance earns are comparable to those commissions that we would pay to unaffiliated third parties in arms-length transactions. 66 Table of Contents During the years ended December 31, 2025, and 2024, we obtained insurance coverage and paid premiums in the aggregate amount of $ 1.8 million, and $ 2.9 million, respectively, from which Belpointe Specialty Insurance earned commissions and administrative fees of $ 0.2 million, and $ 0.2 million, respectively. Insurance premiums are prepaid and are included in Other assets in our consolidated balance sheets. Economic Dependency Under various agreements we have engaged our Manager and its affiliates, including in certain cases members of the Sponsor Group, to provide certain services that are essential to us, including asset management services, asset acquisition and disposition services, supervision of our Follow-on Offerings and any other offerings that we may conduct, as well as other administrative responsibilities for the Company, including, without limitation, accounting services and investor relations services. As a result of these relationships, we are dependent upon our Manager and its affiliates, including the Sponsor Group. In the event that our Manager and its affiliates are unable to provide us with the services we have engaged them to provide, we would be required to find alternative service providers. Note 5 – Real Estate, Net Real Estate Under Construction The following table provides the activity of our Real estate under construction (amounts in thousands): Schedule of Real Estate Under Construction 2025 2024 December 31, 2025 2024 Beginning balance $ 191,308 $ 291,130 Placed in service ( 188,716 ) ( 235,675 ) Capitalized costs (1) (2) 50,628 133,236 Capitalized interest 4,618 3,394 Impairment charges (3) — ( 777 ) Ending balance $ 57,838 $ 191,308 (1) Includes development fees and employee reimbursement expenditures. See “ Note 4 – Related Party Agreements ” for additional details regarding our transactions with related parties. (2) Includes direct and indirect project costs to the construction and development of real estate projects, including but not limited to loan fees, property taxes and insurance, incurred of $ 2.3 million and $ 5.4 million for the years ended December 31, 2025 and 2024, respectively. (3) Impairments for the year ended 2024 are in relation to one of our real estate assets located in Nashville, Tennessee, based on our conclusion that the estimated fair market value of the real estate asset was lower than the carrying value, and as a result, we reduced the carrying value to the estimated fair market value. 67 Table of Contents 2025 Assets Placed in Service On September 30, 2025, our development project at 1000 First Avenue North, St Petersburg, Florida (“VIV”) reached substantial completion, and as a result, we reclassified $ 184.0 million from Real estate under construction to Land ($ 12.1 million), Building and improvements ($ 167.2 million), and Furniture, fixtures and equipment ($ 4.8 million) on our consolidated balance sheets. Additionally, during the year ended December 31, 2025, we reclassified $ 4.7 million from Real estate under construction to Building and improvements ($ 4.4 million) and Furniture, fixtures and equipment ($ 0.3 million) on our consolidated balance sheets in connection with certain phases of our 1991 Main Street, Sarasota, Florida (“Aster & Links”) development project, which reached substantial completion in 2024. Non-cash Disclosures For year ended December 31, 2025, non-cash investing activity relating to the development of real estate totaled $ 7.6 million, of which $ 7.5 million (inclusive of unpaid development fees of $ 1.8 million and unpaid employee cost sharing and reimbursements of $ 0.1 million) was included in Building and improvements in our consolidated balance sheets and $ 0.1 million was included in Real estate under construction in our consolidated balance sheets. For the year ended December 31, 2024, non-cash investing activity relating to the development of real estate totaled and $ 21.0 million for the year ended (inclusive of unpaid development fees of $ 2.2 million and unpaid employee cost sharing and reimbursements of $ 0.9 million), which was included in Real estate under construction in our consolidated balance sheets. Depreciation Expense Depreciation expense was $ 8.5 million, and $ 4.0 million for the years ended December 31, 2025, and 2024, respectively, and is included in Depreciation and amortization in our consolidated statements of operations. Note 6 – Intangible Assets and Liabilities The following table summarizes our intangible assets and liabilities (amounts in thousands): Schedule of Intangible Assets And Liabilities December 31, 2025 2024 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Finite-Lived Intangible Assets In-place leases $ 2,538 $ ( 1,023 ) $ 1,515 $ 2,871 $ ( 1,188 ) $ 1,683 Indefinite-Lived Intangible Assets Development rights 5,659 — 5,659 5,659 — 5,659 Total intangible assets $ 8,197 $ ( 1,023 ) $ 7,174 $ 8,530 $ ( 1,188 ) $ 7,342 Finite-Lived Intangible Liabilities Below-market leases $ ( 1,538 ) $ 411 $ ( 1,127 ) $ ( 1,743 ) $ 518 $ ( 1,225 ) Total intangible liabilities $ ( 1,538 ) $ 411 $ ( 1,127 ) $ ( 1,743 ) $ 518 $ ( 1,225 ) During the years ended December 31, 2025, and 2024, the amortization of in-place lease intangible assets was $ 0.2 million, and $ 0.1 million, respectively, and is included in Depreciation and amortization in our consolidated statements of operations. During the years ended December 31, 2025, and 2024, the amortization of below-market lease liability was $ 0.1 million and $ 0.1 million, respectively, and is included in Rental revenue in our consolidated statements of operations. 68 Table of Contents Based on the intangible assets and liabilities recorded as of December 31, 2025, scheduled annual net amortization of intangibles for the next five calendar years and thereafter is as follows (amounts in thousands): Schedule of Annual Net Amortization of Intangibles Years Ending December 31, Increase in Rental Revenue Increase to Amortization Net 2026 $ ( 77 ) $ 105 $ 28 2027 ( 77 ) 105 28 2028 ( 77 ) 105 28 2029 ( 77 ) 105 28 2030 ( 77 ) 105 28 Thereafter ( 742 ) 990 248 $ ( 1,127 ) $ 1,515 $ 388 Note 7 – Debt, Net 2025 Debt Transactions On September 29, 2025, we, through our indirect majority-owned subsidiaries, entered into a variable-rate non-recourse mortgage loan providing for up to $ 163.3 million in principal amount (the “Aster & Links Mortgage Loan”), and a variable-rate non-recourse mezzanine loan providing for up to $ 40.8 million in principal amount (the “Aster & Links Mezzanine Loan”, and together with the Aster & Links Mortgage Loan, the “Aster & Links Loans”) with SM Finance III LLC, as lender (the “Aster & Links Refinance Transactions”). Proceeds from the Aster & Links Refinance Transactions were used to extinguish the existing Aster & Links construction loan (the “1991 Main Construction Loan”) and mezzanine loan (the “1991 Main Mezzanine Loan”), resulting in a loss on extinguishment of debt of $ 3.0 million, which includes a non-cash write off of unamortized deferred financing costs of $ 2.6 million. Additional details regarding the loans are described below. 2024 Debt Transactions On June 28, 2024, we, through our indirect majority-owned subsidiary entered into a variable-rate construction loan agreement for up to $ 104.0 million in principal amount (the “1000 First Construction Loan”) with various lenders, which is secured by our investment in VIV. On June 26, 2024, our indirect majority-owned subsidiary entered into a fixed-rate loan agreement for $ 10.0 million in principal amount (the “900 8th Land Loan”) with KHRE SMA Funding, LLC. On January 31, 2024, our indirect majority-owned subsidiary entered into a fixed-rate mezzanine loan agreement for up to $ 56.4 million in principal amount (the “1991 Main Mezzanine Loan”) with Southern Realty Trust Holdings, LLC. The following table details our Debt, net (dollars in thousands): Schedule of Debt, Net Indebtedness Weighted Average Interest Rate Maturity Date Maximum Facility 2025 2024 December 31, 2025 Carrying Value as of December 31, Indebtedness Weighted Average Interest Rate Maturity Date Maximum Facility 2025 2024 Fixed rate loans: 1991 Main Mezzanine Loan (1) — — — $ — $ 46,243 900 8th Land Loan (2) 9.50 % July 2026 N/A 10,000 10,000 Variable rate loans: 1991 Main Construction Loan (1) — — — — 97,521 1000 First Construction Loan (3) SOFR + 3.80 % June 2027 $ 104,000 81,300 29,468 Aster & Links Loans (4) SOFR + 2.55 % October 2027 $ 204,138 173,925 — Total debt 265,225 183,232 Unamortized debt issuance costs ( 2,274 ) ( 3,931 ) Unamortized debt discount ( 2,313 ) ( 2,284 ) Debt, net $ 260,638 $ 177,017 (1) Both the 1991 Main Mezzanine Loan and the 1991 Main Construction Loan were repaid in full in connection with the Aster & Links Refinancing Transaction. 69 Table of Contents (2) The 900 8th Land Loan is secured by our investment at 900 8th Avenue South, Nashville, Tennessee. The 900 8th Land Loan contained two six-month extension options, both of which have been exercised as of December 31, 2025 . (3) The 1000 First Construction Loan contains two one-year extension options, exercisable at our election, subject to certain terms and conditions set forth in the loan agreement. Advances under the 1000 First Construction Loan bear interest at a per annum rate equal to the one-month term Secured Overnight Financing Rate (“SOFR”) plus 3.80 %, subject to a minimum all-in per annum rate of 7.55 %. To mitigate our exposure to increases to the one-month SOFR, we have obtained an interest rate cap (see “ Note 9 – Derivative Instruments ”). The 1000 First Construction Loan is prepayable in whole or in part at any time with not less than 45 days’ notice. Full prepayment is subject to an interest make-whole amount, if any, calculated as of the prepayment date. (4) The Aster & Links Loans bear interest at a fluctuating rate based on: (i) one-month term SOFR, subject to a 3.25 % floor, plus (ii) a blended rate of 2.55 %, and requires interest-only monthly payments during their term. The Aster & Links Loans each contain two one-year extensions exercisable at our election, subject to certain terms and conditions set forth in each of the loan agreements. The Aster & Links Loans are secured by a first-priority mortgage on Aster & Links and a pledge of the borrower’s equity interest in an indirect subsidiary of the Company. To mitigate our exposure to increases to the one-month term SOFR, we have obtained interest rate caps (see “ Note 9 – Derivative Instruments ”). The Aster & Links Loans are prepayable in whole or in part at any time with not less than 30 days’ notice, however, if prepaid in full prior to October 2026, such prepayment is subject to an interest make-whole amount, if any, calculated as of the prepayment date. The following table summarizes the scheduled future principal payments, exclusive of extension options, under our debt arrangements as of December 31, 2025 (amounts in thousands): Schedule of Future Principal Payments Year ended December 31, 2026 $ 10,000 2027 255,225 2028 — 2029 — 2030 — Thereafter — Total $ 265,225 Interest paid, net of capitalized interest for the years ended December 31, 2025 and 2024, was $ 17.1 million and $ 7.5 million, respectively. During the year ended December 31, 2024 we capitalized unpaid lender fees of less than $ 0.1 million, which is a non-cash financing activity. Amortization of deferred financing costs for the years ended December 31, 2025 and 2024, was $ 2.8 million and $ 2.3 million, respectively, of which $ 0.7 million and $ 1.0 million was capitalized, respectively. Guarantees and Covenants Each of our indebtedness agreements are secured by either the individual underlying real estate investments or by a pledge of ownership interests in the entity that indirectly owns the real estate investment. In connection with certain agreements, we have provided guarantees of payment and performance, completion guarantees, which, among other things, guarantee completion of the work at each individual construction project, as well as carveout guarantees pursuant to which we guarantee the borrowers obligations with respect to certain non-recourse carveout events, such as “bad acts,” environmental conditions, and violations of certain provisions of the loan documents. We also provided a customary environmental indemnity agreement to the certain lenders pursuant to which we agreed to protect, defend, indemnify, release and hold harmless such lenders from and against certain environmental liabilities related to the real estate investments for which they apply. We are subject to various financial and operational covenants in connection with the Aster & Links Loans and 1000 First Construction Loan which include, but are not limited to, maintaining liquid assets of no less than $10.0 million and a net worth of no less than $110.0 million . As of December 31, 2025 and 2024, we were in compliance with all of our loan covenants. 70 Table of Contents Note 8 – Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between marketplace participants at the measurement date under current market conditions ( i.e. , the exit price). We categorize our financial instruments, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. Financial assets and liabilities recorded on the consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows: Level 1 – Quoted market prices in active markets for identical assets or liabilities. Level 2 – Significant other observable inputs ( e.g. , quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs). Level 3 – Valuation generated from model-based techniques that use inputs that are significant and unobservable in the market. These unobservable assumptions reflect estimates of inputs that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow methodologies or similar techniques, which incorporate management’s own estimates of assumptions that market participants would use in pricing the instrument or valuations that require significant management judgment or estimation. Recurring Fair Value Measurements Assets measured at fair value on a recurring basis is comprised of our interest rate caps (see “ Note 9 – Derivative Instruments ”). The valuation of our interest rate caps were determined by management based on a valuation prepared by an independent third-party and is classified as Level 2 in the fair value hierarchy, as the valuation is approximated using market values of similar instruments in active markets. The following table sets forth the carrying value and estimated fair value of our debt arrangements as of December 31, 2025 and 2024 (amounts in thousands): Schedule of Carrying Value and Estimated Fair Value December 31, 2025 2024 Level Carrying Value (1) Fair Value (2) Carrying Value (1) Fair Value (2) Total indebtedness 3 $ 260,638 $ 265,225 $ 177,017 $ 183,088 (1) Amounts disclosed are net of unamortized debt issuance costs and debt discounts. (2) We estimate the fair value of our indebtedness by discounting the expected future loan payments using current market interest rates. These rates reflect market conditions and consider the quality of the underlying collateral, the credit quality of the tenant or borrower, and the remaining loan term. We estimated that our other financial assets and liabilities had fair values that approximated their carrying values as of December 31, 2025 and 2024. Note 9 – Derivative Instruments In connection with our 1000 First Construction Loan, Aster & Links Mortgage Loan and Aster & Links Mezzanine Loan (collectively, the “Variable Rate Loans”) (Note 7 – Debt, Net), we are required to obtain and maintain interest rate protection in the form of interest rate caps during the term of the Variable Rate Loans to effectively limit the impact of increases in the one-month SOFR. We are subject to credit risk by the counterparty of these derivative instruments in the event of non-performance under the derivative contracts, however we believe the risk to be minimal. The following table details our derivative financial instruments as of December 31, 2025 (dollars in thousands): Schedule of Derivative Financial Instruments Interest Rate Derivative Notional Amount Strike Maturity Date 1991 Main Construction Loan interest rate cap $ 130,000 5.07 % July 2026 1000 First Construction Loan interest rate cap $ 104,000 6.25 % July 2026 Aster & Links Loans interest rate caps $ 204,138 6.00 % October 2027 71 Table of Contents The following table details the fair value of our derivative financial instruments (amounts in thousands): Schedule of Fair Value of Our Derivative Financial Instruments Fair Value as of December 31, (1) Interest Rate Derivative 2025 2024 Interest rate caps $ 11 $ 3 (1) Amounts are included in Other assets in our consolidated balance sheets. The following table details the effect of our derivative financial instruments on our consolidated statement of operations for the years ended December 31, 2025 and 2024 (amounts in thousands): Schedule of Effect of Derivative Financial Instruments Years Ended December 31, Interest Rate Derivative Location of Gain (Loss) 2025 2024 Interest rate caps Other expense $ ( 32 ) $ ( 225 ) Note 10 – Members’ Capital Our Operating Agreement generally authorizes our Board to issue an unlimited number of units and options, rights, warrants and appreciation rights relating to such units for consideration or for no consideration and on the terms and conditions as determined by our Board, in its sole discretion, in most cases without the approval of our members. These additional securities may be used for a variety of purposes, including in future offerings to raise additional capital and acquisitions. Our Operating Agreement currently authorizes the issuance of an unlimited number of Class A units, 100,000 Class B units and one Class M unit. For the years ended December 31, 2025, and 2024, we issued 172,523 , and 41,774 , respectively, Class A units. As of December 31, 2025, there were 3,836,696 Class A units, 100,000 Class B units and one Class M unit issued and outstanding. As of December 31, 2024, there were 3,664,173 Class A units, 100,000 Class B units and one Class M unit issued and outstanding. Class A units Upon payment in full of any consideration payable with respect to the initial issuance of our Class A units, the holder thereof will not be liable for any additional capital contributions to the Company. Holders of our Class A units are not entitled to preemptive, redemption or conversion rights. Holders of our Class A units are entitled to one vote per unit on all matters submitted to a vote of our members. Matters must generally be approved by a majority (or, in the case of the election of directors, by a plurality) of the votes entitled to be cast. Holders of our Class A units share ratably in any distributions we make, subject to any statutory or contractual restrictions on distributions and to any restrictions on distributions imposed by the terms of any preferred units we issue. Upon our dissolution, liquidation or winding up, after payment of all amounts required to be paid to creditors and holders of preferred units, if any, holders of our Class A units are entitled to receive our remaining assets available for distribution. Class B units All of our Class B units are currently held by our Manager and were issued on September 14, 2021. Holders of our Class B units are not entitled to preemptive, redemption or conversion rights. Holders of our Class B units are entitled to one vote per unit on all matters submitted to a vote of our members. Matters must generally be approved by a majority (or, in the case of the election of directors, by a plurality) of the votes entitled to be cast. Holders of our Class B units are entitled to share ratably as a class in 5 % of any gains recognized by or distributed to the Company or recognized by or distributed from our Operating Companies or any subsidiary or other entity related to the Company, regardless of whether the holders of our Class A units have received a return of their capital. The allocation and distribution rights that the holders of our Class B units are entitled to may not be amended, altered or repealed, and the number of authorized Class B units may not be increased or decreased, without the consent of the holders of our Class B units. In addition, our Manager, or any other holder of our Class B units, will continue to hold the Class B units even if our Manager is no longer our manager. Upon our dissolution, liquidation or winding up, after payment of all amounts required to be paid to creditors and holders of preferred units, if any, holders of our Class B units will be entitled to receive any accrual of gains or distributions otherwise distributable pursuant to the terms of the Class B units, regardless of whether the holders of our Class A units have received a return of their capital. 72 Table of Contents Class M unit The Class M unit is currently held by our Manager and was issued on September 14, 2021. The holder of our Class M unit is not entitled to preemptive, redemption or conversion rights. The holder of our Class M unit is entitled to that number of votes equal to the product obtained by multiplying (i) the sum of the aggregate number of outstanding Class A units plus Class B units, by (ii) 10, on matters on which the Class M unit has a vote. Our Manager will continue to hold the Class M unit for so long as it remains our manager. The holder of our Class M unit does not have any right to receive ordinary, special or liquidating distributions. Preferred units Under our Operating Agreement, our Board may from time to time establish and cause us to issue one or more classes or series of preferred units and set the designations, preferences, rights, powers and duties of such classes or series. Basic and Diluted Loss Per Class A Unit For the years ended December 31, 2025, and 2024, the basic and diluted weighted-average units outstanding were 3,735,891 , and 3,638,258 , respectively. For the years ended December 31, 2025, and 2024, net loss attributable to our Class A units was $ 40.0 million, and $ 23.9 million, respectively, and the loss per basic and diluted unit was $ 10.72 , and $ 6.56 , respectively. Note 11 – Commitments and Contingencies Litigation From time to time the Company may become involved in certain non-material litigation, as described below, or other claims arising in the ordinary course of business. As of December 31, 2025, neither we nor any of our subsidiaries were subject to any material legal proceedings nor were we aware of any material legal proceedings threatened against us or any of our subsidiaries. The Galinn Fund LLC On December 5, 2024, the Galinn Fund LLC, a New York limited liability company (“Galinn”), filed a complaint in Connecticut State Superior Court naming CMC Storrs SPV, LLC (“CMC”), the holding company for our investment property located at 497-501 Middle Turnpike, Storrs, Connecticut (“497-501 Middle”), as a defendant, alongside Chen Ji, an individual (“Chen”), and two additional entities (the “Guarantors”). In the complaint Galinn alleges, among other things, that on May 24, 2024, Chen, on behalf of CMC, executed a mortgage note (the “Note”) in the principal amount of $ 3.0 million (the “Loan”), which was secured in part by a mortgage against 497-501 Middle (the “Mortgage”). Galinn further alleges that CMC is in default under both the Note and Mortgage for failure to make payments when due. Galinn is seeking to foreclose on the Mortgage and damages against CMC and the Guarantors. In March 2020, when we first acquired an equity interest in CMC, Chen was an affiliate of the entity, however, he thereafter exited the investment and is no longer in any way affiliated with or authorized to act on behalf of CMC. We maintain that the Loan was obtained as a result of Chen’s fraud and Galinn’s negligence, and had Galinn done adequate due diligence, or reviewed the publicly available filings on the State of Connecticut’s Business Records website, or even a basic Google search, Chen’s lack of authority would have been readily apparent prior to Galinn having made the Loan. On September 15, 2025, CMC filed an amended counterclaim and cross complaint against Chen and Galinn alleging, among other things, fraud, wrongful conduct, theft, conversion, forgery, slander and violations of the Connecticut Unfair Trade Practices Act, and seeking certain declaratory relief as well as damages, attorneys’ fees, and costs and expenses related thereto. We dispute any liability in this litigation, believe we have substantial defenses to Galinn’s claims, and continue to vigorously defend the matter. Development Projects In connection with the development of our commercial real estate assets, we have entered into separate construction management agreements for each asset which contain terms and conditions that are customary for the related scope of work. As of December 31, 2025, we have two development projects with an aggregate unfunded commitment of $ 14.3 million. As of December 31, 2025, $ 12.4 million, inclusive of retainage of $ 12.2 million, is outstanding and payable in connection with these developments. 73 Table of Contents Note 12 – Segment Reporting We identify our operating segments based on the way we organize and evaluate our business, which consists of: ● Commercial Segment — which includes properties such as office, retail centers, and warehouses (the “Commercial Segment”). For reporting purposes, we aggregate these asset types into the Commercial Segment given their similar characteristics in property management and leasing. ● Mixed-use Segment — which includes properties that have both residential and retail spaces within a single real estate asset (the “Mixed-use Segment”). Our CODM reviews financial information presented on an operating segment basis for purposes of allocating resources, making decisions and assessing financial performance. We believe that analyzing net operating income (loss) by segment (“Segment NOI”) provides a useful measure of our performance of our business, as it reflects the core rental operations of our operating real estate. Segment NOI is calculated as total revenues, less property expenses, excluding corporate level items, such as management fees incurred to our Manager (see Note 4 – Related Party Arrangements ), depreciation and amortization, general and administrative expenses, interest expense, and other non-operating items. The following table details the results of Segment NOI, reconciled to Loss before income taxes as reported on our consolidated statement of operations for the years ended December 31, 2025, and 2024 (amounts in thousands): Schedule of Segment NOI Reconciled to Consolidated Statement of Operations Commercial Segment Mixed-use Segment Total Commercial Segment Mixed-use Segment Total Year Ended December 31, 2025 Year Ended December 31, 2024 Commercial Segment Mixed-use Segment Total Commercial Segment Mixed-use Segment Total Segment NOI: Rental revenue $ 936 $ 8,251 $ 9,187 $ 1,099 $ 1,576 $ 2,675 Property expenses ( 2,077 ) ( 9,580 ) ( 11,657 ) ( 1,145 ) ( 2,989 ) ( 4,134 ) Total Segment NOI $ ( 1,141 ) $ ( 1,329 ) $ ( 2,470 ) $ ( 46 ) $ ( 1,413 ) $ ( 1,459 ) Non-segment items: Management fees, included in Property expenses ( 3,309 ) ( 2,705 ) General and administrative ( 6,166 ) ( 5,111 ) Interest expense ( 17,441 ) ( 10,006 ) Depreciation and amortization ( 8,707 ) ( 4,215 ) Impairment of real estate — ( 777 ) Interest income 1,028 646 Other expense ( 46 ) ( 228 ) Loss on extinguishment of debt ( 2,960 ) — Loss before income taxes $ ( 40,071 ) $ ( 23,855 ) The following table details the significant expense categories by segment for the years ended December 31, 2025, and 2024 (amounts in thousands): Schedule of Significant Expense Categories by Segment Commercial Segment Mixed-use Segment Total Commercial Segment Mixed-use Segment Total Years Ended December 31, 2025 2024 Commercial Segment Mixed-use Segment Total Commercial Segment Mixed-use Segment Total Property expenses: Real estate taxes $ 1,454 $ 2,741 $ 4,195 $ 628 $ 423 $ 1,051 Repairs & maintenance 251 1,681 1,932 159 512 671 Insurance 292 1,466 1,758 266 399 665 Management fees (1) 45 1,602 1,647 45 812 857 Utilities 34 863 897 47 394 441 Other property expenses 1 1,227 1,228 — 449 449 Total property expenses (1) $ 2,077 $ 9,580 $ 11,657 $ 1,145 $ 2,989 $ 4,134 (1) Excludes management fees incurred to our Manager (see Note 4 – Related Party Arrangements ). The following table details our total assets by segment as of December 31, 2025, and 2024 (amounts in thousands): Schedule of Total Assets By Segment 2025 2024 December 31, 2025 2024 Commercial Segment $ 97,038 $ 97,358 Mixed-use Segment 443,301 395,642 Other non-segment assets (1) 23,857 24,591 Total assets $ 564,196 $ 517,591 (1) Other non-segment assets primarily consist of cash and cash equivalents not attributable to specific reportable segments. Note 13 – Subsequent Events Management’s Evaluation Management has evaluated subsequent events to determine if events or transactions occurring after the balance sheet date through the date the audited consolidated financial statements were issued require potential adjustment to or disclosure in the audited consolidated financial statements and has concluded that, except as set forth below, all such events or transactions that would require recognition or disclosure have been recognized or disclosed. Tokeneke Transactions On March 3, 2026, the Company, through our indirect wholly-owned subsidiary BPOZ 100 Tokeneke Holding, LLC (“BPOZ Tokeneke”), made a loan (the “BPOZ Tokeneke Loan”) in the principal amount of $ 5.0 million, evidenced by a convertible promissory note (the “BPOZ Tokeneke Note”), to 100 Tokeneke Road, LLC (“Tokeneke Road”). The BPOZ Tokeneke Loan bears interest at a rate of 3.6 % per annum, computed on the basis of a 365/366-day year, and, unless earlier converted, is due and payable on March 3, 2028. The BPOZ Tokeneke Note is convertible, in whole or in part, in the sole discretion of BPOZ Tokeneke into that number of Class A units of 100 Tokeneke Partners, LLC (“Tokeneke Partners”) and direct holding company for Tokeneke Road, that equal the total amount then being converted, divided by $ 14.50 per Class A unit (the “Conversion Price”), subject to adjustment as provided in the BPOZ Tokeneke Note. The proceeds of the BPOZ Tokeneke Loan were immediately applied by Tokeneke Road in connection with consummation of its purchase of certain real property located at 100 Tokeneke Road, Darien, Connecticut (the “Property”). Concurrently with our extension of the BPOZ Tokeneke Loan, Belpointe Tokeneke Investment, LLC, which is indirectly owned by an entity in which certain immediate family members of the Company’s Chief Executive Officer hold a passive beneficial ownership interest (the “Related Party”), also made a loan (the “Related Party Loan”) in the principal amount of $ 3.3 million, evidenced by a convertible promissory note (the “Related Party Note”), to Tokeneke Road. The Related Party Loan bears interest at a rate of 3.6 % per annum, computed on the basis of a 365/366-day year, and is due and payable on March 3, 2028. The Related Party Note contains a mandatory post-closing conversion clause which required $ 0.6 million of the principal balance of the Related Party Loan be converted into Class A units in Tokeneke Partners (the “Mandatory Conversion”). Following the Mandatory Conversion the Related Party became the 50% beneficial owner of Tokeneke Partners. The remaining balance of the Related Party Note is convertible, in whole or in part, in the sole discretion of the Related Party into that number of Class A units of Tokeneke Partners that equal the total amount then being converted divided by the Conversion Price, subject to adjustment as provided in the Related Party Note. The proceeds of the Related Party Loan were immediately applied by Tokeneke Road in connection with consummation of its purchase of the Property. Redemption of CMC Class A Preferred Equity Interests On March 9, 2026, we, through CMC Storrs SPV, LLC, (“CMC”), an entity in which we indirectly own a 100 % controlling interest, entered into a letter agreement (the “CMC Letter Agreement”) with an entity holding Class A preferred equity (the “Class A Preferred Equity”) representing a non-voting economic interest in CMC to redeem the Class A Preferred Equity in accordance with the terms of CMC’s Amended and Restated Limited Liability Company Agreement for an aggregate amount of $ 1.6 million representing the entities original investment together with all accrued and unpaid preferred returns thereon through the date of the CMC Letter Agreement. 74 Table of Contents Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosures. None.