Financial Performance - Total revenue for the three months ended March 31, 2023, was $497,000, compared to $329,000 for the same period in 2022, representing a 51% increase[18] - Rental revenue increased to $497,000 in Q1 2023 from $329,000 in Q1 2022, marking a 51% growth year-over-year[18] - Total expenses for Q1 2023 were $3,301,000, up from $2,832,000 in Q1 2022, reflecting a 16.6% increase[18] - The net loss attributable to Belpointe PREP, LLC for Q1 2023 was $2,810,000, compared to a net loss of $2,016,000 in Q1 2022, indicating a 39.4% increase in losses[18] Cash and Assets - Cash and cash equivalents at the end of Q1 2023 were $122,271,000, down from $171,631,000 at the end of Q1 2022, a decrease of 28.7%[21] - The total assets as of March 31, 2023, were $352,769,000, slightly down from $353,995,000 as of December 31, 2022[15] - Total assets as of March 31, 2023, were $313,923,000, compared to $312,022,000 as of December 31, 2022, reflecting a slight increase[36] - Cash and cash equivalents decreased to $99,424,000 as of March 31, 2023, down from $124,159,000 as of December 31, 2022[36] Real Estate Development - Real estate under construction increased to $157,194,000 as of March 31, 2023, compared to $133,898,000 as of December 31, 2022, a growth of 17.4%[15] - Real estate under construction increased to $157.194 million as of March 31, 2023, from $133.898 million as of December 31, 2022, reflecting an increase of 17.5%[68] - The company is focused on acquiring and managing commercial real estate in qualified opportunity zones, with at least 90% of its assets in such properties[24] Operating Activities - The company reported a net cash used in operating activities of $1,386,000 for Q1 2023, compared to $1,770,000 for Q1 2022, a decrease of 21.7%[21] - For the three months ended March 31, 2023, the company incurred operating expenses of $0.6 million, compared to $0.5 million for the same period in 2022, reflecting a 20% increase[56] - Management fees for the quarter ended March 31, 2023, were $0.7 million, up from $0.6 million in the same quarter of 2022, indicating a 16.67% increase[58] Financing and Capital - On May 9, 2023, the SEC declared effective a registration statement for the offer and sale of up to $750,000,000 of Class A units[26] - The company has a remaining unsold amount of $522,656,100 from its ongoing initial public offering of up to $750,000,000 as of May 9, 2023[28] - The company had an unfunded capital commitment of $128.8 million as of March 31, 2023, expected to be incurred over the next 15 months[96] - In May 2023, the company entered into a variable-rate construction loan agreement for $130.0 million, with an interest rate of 1-month term Secured Overnight Financing Rate plus 345 basis points, subject to a minimum interest rate of 8.51%[99] Unit and Share Information - The company issued no units during the three months ended March 31, 2023, maintaining 3,523,449 Class A units and 100,000 Class B units outstanding[84] - The basic and diluted weighted-average units outstanding for the three months ended March 31, 2023, were 3,523,449[93] - Holders of Class B units are entitled to share ratably in 5% of any gains recognized by the company, regardless of returns to Class A unit holders[88] - The company’s Operating Agreement allows for the issuance of an unlimited number of Class A units and 100,000 Class B units[83] Other Financial Metrics - The company reported total intangible assets of $9.495 million as of March 31, 2023, compared to $9.495 million as of December 31, 2022, indicating no change[71] - Total liabilities increased to $19,621,000 as of March 31, 2023, from $17,492,000 as of December 31, 2022[36] - The company did not incur any acquisition fees during the three months ended March 31, 2023, as all investments acquired were subject to development fees[62] - Interest income from loans receivable was zero for the three months ended March 31, 2023, compared to $0.5 million for the same period in 2022, marking a 100% decrease[76] Legal and Compliance - The company is classified as an "emerging growth company" and has elected to use an extended transition period for complying with new accounting standards[37] - The company is not subject to any material litigation as of March 31, 2023[95] - The company’s financial assets and liabilities had fair values that approximated their carrying values as of March 31, 2023[82]
BELPOINTE PREP(OZ) - 2023 Q1 - Quarterly Report