Business Context and Reporting Period
Belpointe PREP, LLC (the "Company") filed this Form 8-K on May 30, 2023, to report the determination of its Net Asset Value (NAV) for the quarter ended March 31, 2023. The Company is a Delaware limited liability company with Class A units trading on the NYSE American under the symbol "OZ". The Manager, Belpointe PREP Manager, LLC, engaged Capright Property Advisers, LLC, an independent third-party firm, to assist in valuing the real estate portfolio, specifically focusing on underlying land values for vacant land and properties in development.
Key Financial Metrics
| Category | Item | Amount (in thousands) |
|---|---|---|
| Assets | Investments in real properties | $244,805 |
| Cash and cash equivalents | $115,676 | |
| Other assets | $8,192 | |
| Total Assets | $368,673 | |
| Liabilities | Debt obligations | $0 |
| Obligations due to affiliates | $5,689 | |
| Other liabilities | $11,276 | |
| Net Asset Value (NAV) | $351,708 | |
| Per Unit Data | NAV per Class A unit | $99.82 |
| Outstanding Units | Class A units | 3,524 |
Note: The filing does not provide revenue, profit, cash flow, or margin data as this is a NAV determination report rather than an income statement.
Material Changes and Valuation Adjustments
- Valuation Methodology: The Manager adjusted the NAV for transaction costs and equity premiums associated with the acquisition of Belpointe REIT, Inc.
- Exclusions: The Manager did not adjust for gains or distributions distributable to the Manager pursuant to its Class B units, concluding such amounts were immaterial.
- Market Considerations: Valuation conclusions incorporated current transaction activity, recent changes in capital market conditions, and the status of entitlements for each property.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, revenue outlook, or specific risk factors beyond the standard disclosure that NAV calculations are subject to the valuation guidelines approved by the Board. The Board unanimously approved the adjusted NAV per Class A unit of $99.82 on May 30, 2023, effective as of the first business day following the public announcement.
Key Facts for Investor Verification
- NAV per Unit: Verify the approved NAV of $99.82 per Class A unit as of March 31, 2023.
- Liquidity Position: Confirm the significant cash position of $115.7 million relative to total assets of $368.7 million.
- Debt Status: Note the absence of reported debt obligations ($0) in the liabilities section.
- Valuation Scope: Understand that the third-party valuation (Capright) was limited to underlying land values for vacant and development properties, not necessarily the full development value.
- Unit Count: Verify the outstanding Class A unit count of 3,524 (in thousands).