Fri, Sep 20, 9:17 PM (91 days ago)
Belpointe PREP, LLC's Q2 2024 results reveal a significant decline in revenue, with rental income dropping 51% to $384,000, reflecting reduced below-market rent amortization. Total expenses rose slightly to $5.1 million, driven by increased property and interest expenses, resulting in a net loss of $4.7 million, up 16% year-over-year. The company reported total assets of $476.2 million, primarily in real estate, with liabilities increasing to $159.3 million, largely due to new debt financing. Cash flow showed improvement, with a net increase of $11.6 million, driven by $96.3 million from financing activities, including loans for ongoing developments. Looking ahead, Belpointe faces uncertainties from economic conditions, interest rate fluctuations, and potential delays in property stabilization. The company plans to continue leveraging its investment strategy within qualified opportunity zones while navigating these challenges. The ongoing public offerings remain unsold as of June 30, 2024, indicating a need for strategic capital raising in the near term.