Financial Performance - Total revenue for the three months ended September 30, 2025, was $2,382,000, a significant increase from $860,000 in the same period of 2024, representing a growth of 177.7%[16] - Rental revenue for the nine months ended September 30, 2025, reached $6,123,000, compared to $1,581,000 in 2024, marking an increase of 286.5%[16] - The company reported total expenses of $11,828,000 for the three months ended September 30, 2025, compared to $7,799,000 in the same period of 2024, indicating an increase of 51.8%[16] - For the nine months ended September 30, 2025, the net loss increased to $28,392,000 compared to a net loss of $15,622,000 for the same period in 2024, representing an increase of 81.5%[21] - For the three months ended September 30, 2025, total rental revenue was $2,382,000, a decrease from $2,960,000 in the same period of 2024, reflecting a decline of approximately 19.5%[111] - For the nine months ended September 30, 2025, total rental revenue was $6,123,000, down from $7,738,000 in 2024, representing a decrease of approximately 20.9%[114] Assets and Liabilities - Total assets as of September 30, 2025, amounted to $570,775,000, up from $517,591,000 as of December 31, 2024, reflecting a growth of 10.3%[14] - Total liabilities increased to $286,717,000 as of September 30, 2025, from $213,534,000 as of December 31, 2024, representing a rise of 34.2%[14] - Total liabilities increased to $275,219,000 as of September 30, 2025, compared to $203,278,000 as of December 31, 2024, marking a rise of 35.3%[35] - Total debt increased from $183.2 million on December 31, 2024 to $256.7 million on September 30, 2025, with a net debt of $251.4 million[75] Cash Flow and Financing - Cash flows from operating activities resulted in a net cash used of $14,996,000 for the nine months ended September 30, 2025, compared to $8,710,000 for the same period in 2024, indicating a 72.5% increase in cash outflow[21] - Net cash provided by financing activities was $78,004,000 for the nine months ended September 30, 2025, compared to $123,425,000 in 2024, a decrease of 36.8%[21] - The company maintained liquid assets of no less than $10.0 million and a net worth of no less than $110.0 million, in compliance with loan covenants as of September 30, 2025[79] - The company anticipates that its ability to generate cash flows from operations will be a key factor in future liquidity needs[206] Operational Highlights - The company is focused on acquiring and managing commercial real estate within qualified opportunity zones, with at least 90% of its assets consisting of such properties[22] - The company raised aggregate gross offering proceeds of $365.7 million as of September 30, 2025, including $8,403,711 from the Follow-on Offering during the nine months ended September 30, 2025[27] - The company has entered into interest rate protection agreements for its Variable Rate Loans, requiring interest rate caps to limit the impact of increases in the one-month term SOFR[89] - The company is currently evaluating the impact of ASU No. 2024-03 and ASU No. 2025-03 on its consolidated financial statements, which will be effective for fiscal years beginning after December 15, 2026[41][42] Development Projects - Aster & Links, a mixed-use luxury development, was acquired for an aggregate purchase price of $20.7 million, with an additional adjacent parcel acquired for $4.9 million[135] - VIV, located in downtown St. Petersburg, was acquired for $12.1 million and is approximately 97.7% complete as of September 30, 2025, with leasing commencing in October 2025[147] - The company acquired a 3.2-acre site in Nashville for $19.7 million, with plans for a mixed-use development including up to 300 residential units[163] - The company plans to redevelop 690/1106 Davidson Street into a mixed-use residential community after successful rezoning[173] Management and Expenses - Management fees for the three months ended September 30, 2025, amounted to $830,000, slightly lower than $672,000 in the same period of 2024[53] - Employee reimbursement expenditures to affiliates for the nine months ended September 30, 2025, totaled $1.4 million, compared to $0.9 million in 2024, indicating increased operational costs[62] - General and administrative expenses increased by $0.4 million to $1.305 million, primarily due to higher legal expenses[187] Interest and Debt - Interest expense for the three months ended September 30, 2025, was $4,846,000, compared to $3,331,000 in the same period of 2024, reflecting an increase of 45.5%[16] - Interest expense for the nine months ended September 30, 2025, totaled $12.072 million, up from $5.757 million in 2024, due to a higher average outstanding debt balance[198] - A loss on extinguishment of debt of $3.0 million was recorded during the nine months ended September 30, 2025, related to the Aster & Links Refinance Transactions[203] Segment Reporting - Segment reporting has been revised into Commercial and Mixed-use Segments, reflecting the company's operational structure[179] - Total Segment NOI for the three months ended September 30, 2025, was $(584,000), compared to $(551,000) for the same period in 2024, indicating a slight increase in losses[111] - Mixed-use Segment NOI increased by $0.2 million, attributed to the stabilization of Aster & Links, which was in its initial lease-up phase last year[185]
BELPOINTE PREP(OZ) - 2025 Q3 - Quarterly Report