In This Story
Belpointe PREP LLC Class A Units (OZ+1.28%) has submitted its annual report on Form 10-K for the fiscal year ended December 31, 2024. filing
The filing details the company's focus on identifying, acquiring, developing, or redeveloping and managing commercial real estate located within qualified opportunity zones. At least 90% of its assets consist of qualified opportunity zone property.
Belpointe PREP LLC is externally managed by Belpointe PREP Manager, LLC, an affiliate of its sponsor, Belpointe, LLC. The company operates as a Delaware limited liability company and qualifies as a partnership for U.S. federal income tax purposes.
During the fiscal year, Belpointe PREP LLC issued 41,774 Class A units, raising net offering proceeds of $3.0 million. The company has raised aggregate gross offering cash proceeds of $357.3 million as of December 31, 2024.
The company reported a net loss of $23.9 million for the year ended December 31, 2024, compared to a net loss of $14.4 million in the previous year. The loss per Class A unit was $6.56, compared to $4.04 in the prior year.
Belpointe PREP LLC's investment portfolio includes a range of commercial and mixed-use rental properties, with significant investments in Sarasota, Florida, and St. Petersburg, Florida. The company is involved in ongoing development projects in these areas.
The company's primary needs for liquidity and capital resources are to fund its investments, pay operating fees and expenses, and pay interest on its outstanding indebtedness. It believes that its cash on-hand, anticipated net proceeds from offerings, and projected cash flows will be sufficient to meet its liquidity needs for the next 12 months.
Belpointe PREP LLC employs leverage with a targeted aggregate property-level leverage of between 50-70% of the greater of the cost or fair market value of its assets. The company may employ greater leverage on individual assets during the acquisition, development, and redevelopment phases.
The company is subject to various risks, including those related to general market and economic conditions, competition, and regulatory changes. It is also involved in a legal proceeding related to a disputed mortgage note, which it is actively defending.
Belpointe PREP LLC's management and board of directors are responsible for overseeing the company's operations and investment activities. The company has established an Executive Advisory Board to provide advice on potential investment opportunities and general market conditions.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Belpointe PREP LLC Class A Units annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.