Based on the provided financial report articles, the title of the article is likely to be: "Quarterly Report (10-Q) for the period ended March 31, 2026" This title is inferred from the various sections and tags present in the article, such as the "10-Q" filing, the reporting period (March 31, 2026), and the inclusion of financial statements and notes.
The report presents the financial statements of the company for the quarter ended March 31, 2026, as well as the comparative periods for 2025 and 2024. The company’s common stock, classified as Common Class A, Common Class B, and OZ: Common Class M, has a total value of unlimited. The report includes various financial figures, such as net income, revenue, and cash flows, as well as significant developments and events. The company’s parent member and non-controlling interest are also reported. The report provides a comprehensive overview of the company’s financial performance and position for the quarter ended March 31, 2026.
Overview
Belpointe PREP, LLC is the only publicly traded qualified opportunity fund listed on a national securities exchange. The company is a Delaware limited liability company focused on identifying, acquiring, developing or redeveloping and managing commercial and mixed-use real estate located within qualified opportunity zones. At least 90% of Belpointe PREP’s assets consist of qualified opportunity zone property.
Belpointe PREP was formed in 2020 and is the successor to Belpointe REIT, Inc. The company is externally managed by BelpoPREP Manager, LLC, an affiliate of its sponsor, Belpointe, LLC.
On May 9, 2023, the SEC declared effective Belpointe PREP’s registration statement for a follow-on offering of up to $750 million of its Class A units. The company has raised aggregate gross offering proceeds of $371.8 million across its primary and follow-on offerings, as well as Belpointe REIT’s prior offerings.
Our Business Outlook
Despite expectations of a U.S. recession, market conditions for Belpointe PREP’s multi-family and mixed-use properties have remained consistent. However, the company faces uncertainty from factors like rent growth, new construction, unemployment, energy costs, interest rates, inflation, and changes to trade policies and regulations. Belpointe PREP’s manager continuously reviews investment and financing strategies to reduce risk.
Our Investments
Belpointe PREP’s investment portfolio includes the following properties:
1991 Main Street - Sarasota, Florida (“Aster & Links”): A 5.13-acre mixed-use luxury development site in downtown Sarasota, Florida. The property includes two 10-story buildings with 424 luxury residential units and 51,000 sq ft of retail space. In September 2025, Belpointe PREP completed a $204.1 million post-construction refinancing for Aster & Links.
1000 First Avenue North and 900 First Avenue North - St. Petersburg, Florida (“VIV”): Two 11-story residential towers above a parking structure, containing 269 apartment homes and 15,500 sq ft of retail space. VIV was substantially completed in 2025.
901-909 Central Avenue North - St. Petersburg, Florida: A 0.13-acre site with a single-story retail/office building.
1700 Main Street - Sarasota, Florida: A 1.3-acre site planned for redevelopment into a 150-apartment home community with 6,000 sq ft of retail space.
1701, 1702 and 1710 Ringling Boulevard - Sarasota, Florida: A 1.6-acre site with a six-story office building and parking lot, planned for renovation and future multifamily development.
497-501 Middle Turnpike and Cedar Swamp Road - Storrs, Connecticut: A 60-acre site planned for development into a 261-apartment home community.
Storrs Road - Storrs, Connecticut: A 9-acre parcel of land held for future multifamily development.
1750 Storrs Road - Storrs, Connecticut: A 19-acre site planned for a multifamily mixed-use development.
900 8th Avenue South - Nashville, Tennessee: A 3.2-acre land assemblage approved for a mixed-use development. In September 2025, Belpointe PREP entered an agreement to sell this property for $19.3 million.
Loans
Belpointe PREP made a $5 million convertible loan to 100 Tokeneke Road, LLC, an affiliate of the company’s CEO, for the acquisition of a property in Darien, Connecticut.
Segment Reporting
Belpointe PREP has two operating and reportable segments: commercial and mixed-use. The company analyzes net operating income (NOI) at the segment level to evaluate performance.
Results of Operations
For the three months ended March 31, 2026 compared to the same period in 2025:
- Commercial Segment NOI decreased by $0.2 million due to lower base rents and higher property expenses.
- Mixed-use Segment NOI increased by $0.4 million due to the completion of VIV and higher occupancy at Aster & Links.
- Management fees were relatively flat.
- General and administrative expenses increased by $0.2 million due to higher marketing and tax costs.
- Interest expense increased by $0.9 million as interest was no longer capitalized on completed developments.
- Depreciation and amortization increased by $1.2 million due to the completion of VIV.
Liquidity and Capital Resources
Belpointe PREP expects its cash on-hand, proceeds from its follow-on offering, current debt obligations, projected cash flows, and financing activities to meet its liquidity needs for the next 12 months. The company employs leverage, with a target aggregate property-level leverage of 50-70% of asset value.
Key liquidity highlights:
- Completed a $204.1 million refinancing for Aster & Links in September 2025.
- Had unfunded capital commitments of $3.7 million for Aster & Links and $0.8 million for VIV as of March 31, 2026.
- Anticipates needing an additional $12.1 million and $9.2 million to complete construction at Aster & Links and VIV, respectively.
- Holds a $10 million land loan for the 900 8th Avenue South property in Nashville, due to mature in July 2026.
Belpointe PREP believes its current liquidity sources will be sufficient to meet its needs over the next 12 months, but faces risks from economic uncertainty, interest rate fluctuations, and changes to regulations that could impact its business.
