Lightstone Value Plus REIT V, Inc. Annual Report: A Simple Guide

I’ve put together this guide to help you understand how Lightstone Value Plus REIT V, Inc. performed this year. My goal is to turn 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 V is a real estate investment trust. Think of it as a professional property manager that pools money from investors to buy and run commercial real estate. Their strategy is to find properties that need improvements—like renovations—to boost their value. They currently own eight apartment complexes with 2,480 units across the U.S., mainly in growing markets like Colorado and Texas. They use rental income to pay for operating costs, debt, and potential payouts to shareholders.

2. Financial performance and "The Wait"

As of September 30, 2025, the company estimated the value of your shares at $16.56. This is a 4.3% increase from the $15.87 reported in 2024. Total revenue reached about $84.2 million, thanks to steady rent. However, high interest costs and operating expenses continue to limit overall profit.

The most important update is the timeline for getting your money back. Since you cannot trade these shares on a stock exchange, you rely on a "liquidity event"—like a sale of the company—to cash out. The Board of Directors recently pushed that target date from June 2028 to June 2033. Your money will be tied up for five years longer than expected to allow for market stabilization.

3. How they value your investment

The company hires an outside firm, Capright, to estimate what their properties are worth. Keep in mind that these are estimates, not guarantees. The valuation depends on guesses about future rent and interest rates. If interest rates rise, property values could drop. For example, if a key risk measure (the "discount rate") increases by just 0.25%, your share value could drop by about $0.54.

4. Property performance

The company’s eight properties are 93% occupied. While this is a slight dip from the 95% seen in 2024, the portfolio remains stable. Rent growth is uneven. While some Sunbelt locations see rent increases of 2-3%, others are seeing rent declines. New apartment supply in those areas has forced the company to offer more move-in deals to keep units filled.

5. Financial health and debt

The company uses a lot of debt, which makes up 69.5% of its asset value—totaling about $415 million in loans. Much of this debt has variable interest rates or is coming due soon. If interest rates stay high, it becomes more expensive to manage this debt. Currently, a large portion of the cash from rent goes to lenders instead of investors.

6. Key risks to watch

• Liquidity: You cannot easily sell these shares. With the target date now 2033, this is a very long-term commitment.
• Valuation Uncertainty: The share price is an estimate. It is not a guarantee of what you will receive when the company is eventually sold.
• External Management: The company has no employees and relies on an outside advisor. This advisor collects fees regardless of whether the company makes a profit.
• Refinancing Risk: Because of the high debt, the company faces risks when loans mature. They may have to refinance at higher interest rates, which would hurt the bottom line.

Final Thought: When deciding on your next steps, consider whether you are comfortable with your capital being tied up until 2033. Because this is a long-term, illiquid investment, it is best suited for those who do not need immediate access to these funds and are prepared for the risks associated with high debt levels and interest rate fluctuations.