What changed in this filing

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Item 2. Properties

2026-03-27 compared with 2025-03-31 · 21 added, 30 removed, 83 unchanged (38% of the section changed)

1 unchanged sentence

We invest in a diverse multi-tenant portfolio of real estate assets primarily consisting of office/industrial, retail, and model home properties located primarily in the western United States.

As of December 31, 2024, we owned or had an equity interest in nine office/industrial buildings totaling approximately 758,175 rentable square feet and three retail centers totaling approximately 65,242 rentable square feet.

In addition, through our Model Home subsidiary and our investments in six limited partnerships and one corporation, we own a total of 78 Model Home Properties located in three states, totaling approximately 236,955 square feet.

As of December 31, 2025, we owned or had an equity interest in office/industrial buildings totaling approximately 758,175 rentable square feet and retail centers totaling approximately 10,500 rentable square feet.

In addition, through our Model Home subsidiary and our investments in three limited partnerships and one corporation, we own a total of 80 Model Home Properties located in four states, totaling approximately 237,981 square feet.

Of the 80 Model Home Properties in our portfolio, 63 of them are wholly owned by the Company through NetREIT Model Homes, Inc .

39 unchanged sentences

Retail Properties:

Union Town Center, Colorado Springs, CO (4)

Research Parkway, Colorado Springs, CO (4)

Mandolin, Houston, TX (4)

5 unchanged sentences

The non-recourse loan on the Dakota Center property matured on July 6, 2024.

During October 2024, management has agreed with the lender to sell the property to settle the loan balance.

Due to the uncertainties in the Fargo market, we have impaired the property’s book value and recorded an impairment charge of approximately $0.7 million as of September 30, 2024.

During December 2024, the lender had agreed on the broker the Company would use to sell the property to settle the non-recourse debt.

As of December 31, 2024, the property was included in the real estate assets held for sale, net on the consolidated balance sheet.

Any purchase offers will be subject to lender approval.

Grand Pacific Center, Bismarck, ND, was removed from held-for-sale after signing a major lease with KLJ Engineering on December 7, 2022 for approximately 33,296 usable square feet, a term of 122 months, and starting annualized rent of $532,736.

KLJ Engineering moved into the building during December 2023, with rent that commenced on February 28, 2024.

As of September 30, 2024, Union Town Center and Research Parkway have been listed for sale, and included in the real estate assets held for sale, net on the consolidated balance sheet as of December 31, 2024.

The sale of UTC and Research Parkway took place in February 2025, to a single buyer for a combined sales price of $16.95 million, and the Company recorded a combined gain of approximately $4.0 million.

During the year ended December 31, 2023, we recorded a $2.0 million impairment charge for One Park Center that reflects management’s revised estimate of the fair market value based on sales comparable of like properties in the same geographical area as well as an evaluation of future cash flows or an executed purchase sale agreement.

No additional impairment was deemed necessary during the year ended December 31, 2024.

On December 31, 2022, the lease for our largest tenant, Halliburton, expired.

Halliburton was located in our Shea Center II property in Colorado, and made up approximately $536,080 of our annual base rent.

Halliburton did not renew the lease and we placed approximately $1.1 million in a reserve account with our lender to cover future mortgage payments, if necessary, none of which has been used as of December 31, 2023.

Our management team is working to fill the 45,535 square foot space and has leased approximately 54% of the space as of February 2025 and has reviewed various proposals for the remaining 46%.

During December 2024, the lender agreed to the broker the Company would use to sell the property to settle the non-recourse debt.

At December 31, 2025, the property was included in the real estate assets held for sale, net on the consolidated balance sheet.

During July 2025, the lender approved a purchase offer from a third party for $5,125,000.

In connection with the sale, we have impaired the property’s book value and recorded an impairment charge of approximately $3.5 million for the year ended December 31, 2025.

The sale took place in January of 2026.

During the year ended December 31, 2025, the Company impaired Shea Center II for a total of approximately $2.5 million after low property occupancy triggered a cash management event under the terms of the loan agreement.

Subsequent to the year ended December 31, 2025, the Company received notice that the Company's failure to repay in full by January 5, 2026 the indebtedness related to the loan agreement governing Shea Center II had triggered a default event.

The Company has received notification that the Shea Center II property governed by this agreement will be moved into receivership, which will fulfill its obligation for this non-recourse loan.

A portion of the proceeds from the sale of Highland Court were used in like-kind exchange transactions pursued under Section 1031 of the Code for the acquisition of our Mandolin property.

7 unchanged sentences

% of Total Annualized Base Rent

John Hopkins University

Johns Hopkins University

Finastra USA Corporation

1 unchanged sentence

MasTec North America, Inc.

Meissner Jacquet Real Estate Management Group, Inc.

Wells Fargo Bank, NA

OnPoint Medical Group Holdings, LLC

Republic Indemnity of America

Nova Financial & Investment Corporation

Meissner Commercial Real Estate Services

Fredrikson & Byron P.A.

Nova Financial & Investment Corporation was subleasing to OnPoint Medical Group Holdings, LLC (“OnPoint”), until their lease expired in January 2025.

Since October 2024, OnPoint had also been directly leasing a 2,543 square foot space in our Shea Center building.

In January 2025, OnPoint took over 11,831 square foot space from Nova Financial & Investment Corporation, signing an additional 3-year lease for that space.

Genesis Plaza's occupancy at December 31, 2024 was at 95.6%.

During the year, the Company invested approximately $74 thousand in building and tenant improvements for the property, expanded the space for Meissner and extended the term of their lease to 2035, and reduced the space used by the Company.

On January 1, 2025, Meissner took possession of the expanded space and Genesis Plaza was 100% leased.

Republic Indemnity of America's lease expired on January 31, 2026 without a renewal.

The Company is currently looking at potential tenants to occupy their vacant space.

Republic Indemnity of America accounted for approximately 17% of the annualized rent at Genesis Plaza.

Lease Expirations Tables

6 unchanged sentences

Percent of Total

Two of these leases expired on December 31, 2024 and were located in our One Park Centre property, and accounted for approximately 3% of One Park Centre's annual rent and totaled approximately 2,045 square feet.

Month to Month

One of these leases expired on December 31, 2025 and was located in our One Park Centre property, and accounted for approximately 9% of One Park Centre's annual rent.

During January 2026 the tenant renewed its lease until December 31, 2027.

The remaining leases are mainly for month to month storage, parking and other miscellaneous space.

5 unchanged sentences

Percent of Total

Expired Leases

These leases are subject to extensions by the home builder depending on sales of the total development.

1 unchanged sentence

These properties came off lease during 2025 and are listed as held for sale as of December 31, 2025.

As of December 31, 2024 we had nine model homes listed for sale, and included in the real estate assets held for sale, net on the consolidated balance sheet as of December 31, 2024.

As of December 31, 2025 we had five model homes listed for sale, and are included in the real estate assets held for sale, net on the consolidated balance sheet.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties