Lightstone Value Plus REIT I, Inc. Annual Report: A Performance Summary

I’ve put together this guide to help you understand how Lightstone Value Plus REIT I, Inc. performed this year. My goal is to translate complex financial filings into plain English so you can decide if this investment still fits your goals.

1. What does this company do?

Lightstone Value Plus REIT I is a real estate investment trust. Think of it as a professional landlord that pools money from investors to buy and manage commercial and apartment buildings across the U.S.

As of December 31, 2025, the board valued each share at $11.66. Remember, this is a non-traded REIT. There is no public stock market for these shares, so you cannot sell them instantly like you would with stocks such as Apple or Amazon. You can only sell shares through periodic repurchase programs, which depend on board approval and available cash.

2. How they make money

The company aims to grow property values and generate steady income. Their portfolio includes:

• Moxy Hotel (NYC): This 303-room hotel is performing well. It has 93% occupancy, charges about $308 per night, and brings in roughly $34 million in annual revenue.
• Gantry Park Landing (Queens, NY): This luxury apartment complex is 96% occupied, providing stable rental income in a busy urban market.
• Columbus Portfolio (Ohio): This collection of over 2,500 apartments is 93% occupied and serves as the primary source of the company’s recurring cash.
• Development: They hold 1,100 acres in South Carolina worth about $22 million. They are exploring opportunities to develop this into a data center or industrial site.

The company hires an outside "Advisor," led by David Lichtenstein, to manage operations. The Advisor earns various fees, including an annual asset management fee of 0.75% of the average invested assets.

3. Financial health: The "Checkbook"

The company uses borrowed money to grow. They aim to keep total debt below 300% of their net assets. As of December 31, 2025, their debt was $315 million, or 115% of net assets—well within their safety limit. They generated about $42 million in cash flow (Funds From Operations) over the past year, which helps them cover interest payments and potential payouts.

4. Major wins and challenges

• Limited Liquidity: Your money is essentially "locked up." The company does not plan to list on a public exchange, so there is no easy way to exit. Redemptions are restricted and often capped at 5% of total shares per year.
• Legal Issues: There are claims regarding rent rules at Gantry Park Landing. The company set aside $1.5 million for potential settlements but believes they will win in court.
• Related Parties: Much of the business involves companies owned by David Lichtenstein. While this can be efficient, it creates a conflict of interest where the Advisor might prioritize their own fees over your returns.

5. Key risks

• Economic Pressure: High interest rates (averaging 5.8% on their debt) make refinancing expensive and shrink the gap between rental income and debt costs.
• Competition: They compete with larger, better-funded REITs. These rivals often have cheaper access to cash, allowing them to outbid Lightstone for the best properties.
• Valuation Uncertainty: The $11.66 share price is an estimate. Because the company relies on its own Advisor and third-party firms to set this value, the price may not reflect what you would receive if the assets were sold today.

6. Future outlook

The company plans to hold properties for 5 to 7 years to reach their "optimum value." They are currently focused on boosting rental income and are seeking partners to help fund the $150 million needed to develop the South Carolina data center.

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Final Thought for Your Decision: When considering this investment, ask yourself if you are comfortable with the "locked-in" nature of a non-traded REIT. Because you cannot easily sell your shares, this is a long-term commitment. Ensure that your personal financial plan allows for your capital to remain tied up in these properties for several years, and weigh the potential for steady rental income against the risks of interest rates and the specific management structure of the company.