Belpointe PREP, LLC Annual Report for Investors

Thinking about Belpointe PREP, LLC? Wondering how they've been doing? You're in the right place. We'll break down their latest annual report in plain English. No confusing financial jargon. Just the important stuff. You'll understand your investment better.

We'll cover key things. What do they do? What were their big wins or challenges? What does the future hold?

Here's what we'll be looking at:

1. What does this company do and how did they perform this year? Belpointe PREP, LLC is based in Delaware. Its main office is in Greenwich, Connecticut. Its Class A units trade publicly on the NYSE American exchange. The ticker symbol is "OZ". Regulators classify them in three ways. They are a "non-accelerated filer," a "smaller reporting company," and an "emerging growth company." This generally means they are a smaller company. They have different reporting rules than very large corporations. This often allows for less detailed public information.

   On June 30, 2025, their publicly traded Class A units were worth about $210.85 million. This excludes units held by company insiders. As of March 13, 2026, their ownership structure included: 3.9 million Class A units, 100,000 Class B units, and one Class M unit.

   Belpointe PREP, LLC develops and owns real estate. They acquire, develop, and manage properties. They use construction loans for projects like "NineteenNinetyOneMain" and "ThousandFirst." Other projects include "NineHundredEightLand" and "AsterAndLinks." This shows they focus on new properties. They might hold them for rent or future sale.

2. Financial health - cash, debt, liquidity Belpointe PREP, LLC uses different loans to fund its real estate projects. This is common in development. These include mortgage loans. These loans are secured by specific properties. They also use mezzanine loans. These are riskier loans with higher interest rates than standard mortgages. They often fill funding gaps in development. Construction loans fund projects like "NineteenNinetyOneMain" and "ThousandFirst." They also fund "NineHundredEightLand" and "AsterAndLinks." The company also has revolving credit lines. These offer flexible, short-term cash for daily operations.

   They use "interest rate caps" on some loans. This is a key part of their financial plan. This tool reduces the risk of rising interest rates. It sets a maximum limit on their variable interest payments. This gives them predictable costs and protection. Using these different loans shows their strategy to use borrowed money for development and manage interest rate risks.

3. Key risks that could hurt the stock price Belpointe PREP, LLC sees several big risks. These could affect its business, financial health, and stock price:

   • Economic Headwinds: The company is sensitive to economic trends. Trade disputes, unemployment, and energy prices can affect them. Tariffs and immigration policy changes also play a role. These influence consumer demand, construction costs, and property values. Of special concern are interest rates and inflation. Rising interest rates make borrowing more expensive. This hurts profit. Inflation can also greatly increase costs for materials and labor. Global events, like military actions, can create instability. This affects investor confidence and real estate markets.
   • Regulatory and Political Changes: Government and political changes pose a risk. This includes shifts in federal income tax laws. The "One Big Beautiful Bill Act of 2025" ("OBBBA" / "OZ 2.0") is one example. This law likely relates to the "Opportunity Zone" program. That program offers big tax breaks. It defers capital gains tax and excludes some gains. These benefits apply to investments in specific areas. Changes to these tax benefits could make their investments less attractive. Also, changes to landlord-tenant laws could hurt them. Broader U.S. regulations might also impact their ability to manage properties. This could affect their rental income.
   • Operational Challenges:
     • Financing: Securing new loans or investment on good terms is vital. This funds ongoing development and growth.
     • Development Costs: Unexpected increases in material or labor costs can hurt profit. Inflation especially drives up these construction costs.
     • Labor: Changes in immigration policies could affect skilled labor. This impacts its availability and cost for construction.
     • Insurance: Rising insurance costs or less available coverage is a risk. This impacts operating expenses and how much risk they face.
     • Project Delays: Construction projects can face delays. Weather, labor shortages, or permits cause some. Supply chain problems also push back revenue and raise costs.
     • Leasing Issues: After development, attracting tenants can be slow. Existing tenants might not renew leases. They might also miss payments, especially during bad economies or high unemployment.
     • Market Rents: Strong competition or bad market conditions can cause rent changes. This could lower market rental rates. This directly impacts property income.
     • Natural Disasters: Properties can be damaged by severe weather or earthquakes. Other natural events also cause damage. This means high repair costs and business interruptions.
   • Investment Opportunities: Finding attractive new real estate investments is hard. Market competition and changing regulations make it tough.

4. Future outlook The risks listed show potential challenges. Belpointe PREP, LLC is watching these uncertainties and preparing for them in the coming periods. This suggests a careful future plan, heavily influenced by outside economic and regulatory factors.

5. Market trends or regulatory changes affecting them Several market and regulatory trends could influence Belpointe PREP, LLC:

   • Tax Law Changes: The "One Big Beautiful Bill Act of 2025" (OBBBA or OZ 2.0) is a key tax law change. The company's "OZ" ticker suggests this relates to the Opportunity Zone program. This program offers big tax breaks. It defers capital gains tax and excludes some gains. These benefits apply to investments in specific areas. Changes to this program could greatly affect their project's financial appeal.
   • Regulatory Environment: U.S. regulations, like environmental and zoning rules, can affect them. Building codes also impact development timelines, costs, and project viability.
   • Landlord-Tenant Laws: Changing landlord-tenant laws could impact them. This affects rental income, property management costs, and evictions.
   • Immigration Policies: Changes in immigration policies affect labor. This impacts its availability and cost for construction and property management. This directly affects project budgets and how efficiently they operate.