Based on the provided financial report articles, I generated the title for the article: "Unlimited Company's Quarterly Report for Q2 2024: Common Stock and Noncontrolling Interest Disclosure" Please note that the title may not be exact, as the provided text is a large block of financial data and may not contain a specific title.
The report presents the financial statements of the company for the quarter ended June 30, 2024. The company reported total assets of $[insert amount], total liabilities of $[insert amount], and total stockholders’ equity of $[insert amount]. The company’s revenue for the quarter was $[insert amount], with net income of $[insert amount]. The company’s cash and cash equivalents increased by $[insert amount] during the quarter, and its accounts receivable decreased by $[insert amount]. The company’s inventory increased by $[insert amount] during the quarter, and its accounts payable decreased by $[insert amount]. The company’s capital expenditures for the quarter were $[insert amount], and its cash flow from operations was $[insert amount]. The company’s debt-to-equity ratio was [insert ratio], and its current ratio was [insert ratio].
Overview
Belpointe PREP, LLC (the “Company”) is the only publicly traded qualified opportunity fund listed on a national securities exchange. The Company is a Delaware limited liability company formed in 2020 and has been treated as a partnership for U.S. federal income tax purposes since 2020. The Company is focused on identifying, acquiring, developing or redeveloping, and managing commercial real estate located within qualified opportunity zones. At least 90% of the Company’s assets consist of qualified opportunity zone property.
The Company is externally managed by Belpointe PREP Manager, LLC, an affiliate of the Company’s sponsor, Belpointe, LLC. On May 9, 2023, the Company’s registration statement was declared effective by the SEC, registering the offer and sale of up to $750 million of the Company’s Class A units on a continuous “best efforts” basis. The Company also has an ongoing initial public offering of up to $750 million of its Class A units.
Our Business Outlook
The market conditions for multifamily and mixed-use rental properties in the Company’s geographic markets have remained strong, but future economic conditions and real estate demand are subject to uncertainty due to factors such as construction delays, unemployment, interest rates, inflation, and supply chain issues. These factors present material risk and uncertainty regarding the Company’s future performance and financial results.
Our Investments
The Company’s investment portfolio consists of the following multifamily and mixed-use rental properties:
| Property | Location | Description |
|---|---|---|
| 1991 Main Street (Aster & Links) | Sarasota, FL | 424-apartment, 51,000 sq ft retail development |
| 1000 First Avenue North (Viv) | St. Petersburg, FL | 269-apartment, 15,500 sq ft retail development |
| 1701-1710 Ringling Boulevard | Sarasota, FL | 80,000 sq ft office building and parking lot |
| 497-501 Middle Turnpike | Storrs, CT | 261-apartment community near UConn |
| 900 8th Avenue South | Nashville, TN | 3.2-acre mixed-use development site |
| 1700 Main Street | Sarasota, FL | 200-apartment, 6,400 sq ft retail redevelopment |
| 690⁄1106 Davidson Street | Nashville, TN | Mixed-use residential redevelopment |
| 1130 Davidson Street | Nashville, TN | 1.7-acre retail redevelopment site |
| 1400 Davidson Street | Nashville, TN | Mixed-use residential redevelopment |
| 1750 Storrs Road | Storrs, CT | 19-acre multifamily development site near UConn |
| 901-909 Central Avenue North | St. Petersburg, FL | 5,328 sq ft retail/office building |
The Company has funded the development of these properties through construction loans, mezzanine loans, and other financing arrangements.
Results of Operations
During the three and six months ended June 30, 2024, the Company’s revenue decreased by 51% and 43% respectively compared to the same periods in 2023, primarily due to lower amortization of below-market rent intangibles. Property expenses increased by 44% and 34% respectively, mainly due to higher general and administrative costs at the Aster & Links property. Interest expense totaled $1.7 million and $2.4 million respectively, reflecting interest on the Company’s debt. The Company also recorded impairment charges of $0.2 million and $0.8 million respectively related to one of its Nashville properties.
Liquidity and Capital Resources
The Company believes its cash on-hand, anticipated proceeds from its public offerings, cash flows from operations, and current and anticipated financing activities will be sufficient to meet its liquidity and capital requirements for the next 12 months and beyond. The Company has significant unfunded capital commitments related to the construction and development of its properties, which it expects to fund through a combination of debt and equity. The Company employs leverage, targeting 50-70% property-level leverage, to enhance returns on its investments.
Conclusion
Belpointe PREP, LLC is a publicly traded qualified opportunity fund focused on commercial real estate investments in opportunity zones. The Company has assembled a portfolio of multifamily and mixed-use properties across several high-growth markets. While facing some economic uncertainty, the Company believes it is well-positioned to continue executing on its investment strategy and creating value for its shareholders.
