Belpointe PREP, LLC

What they do

The company is a Delaware limited liability company formed January 24, 2020, succeeding Belpointe REIT, Inc., and is externally managed by Belpointe PREP Manager, LLC, an affiliate of sponsor Belpointe, LLC. It focuses on identifying, acquiring, developing or redeveloping and managing commercial and mixed-use real estate located within qualified opportunity zones, with at least 90% of assets in qualified opportunity zone property. As of December 31, 2025, it had 17 qualified opportunity zone investments in three states. All assets are held and operations conducted through its operating companies, Belpointe PREP OC, LLC and Belpointe PREP TN OC, LLC.

Revenue drivers

• Qualified opportunity zone real estate portfolio — Revenue comes from the company's 17 qualified opportunity zone investments across three states, which are developed or redeveloped and managed for commercial and mixed-use use.
• Class A unit public offerings — The company raises capital through a continuous Follow-on Offering of up to $750,000,000 of Class A units; it sold 172,523 Class A units in 2025 and had raised $368.6 million in aggregate gross offering proceeds as of December 31, 2025.
• Quarterly revenue growth — Revenue rose from $997,000 in 2021 to $9.2 million in 2025, with quarterly revenue of $2.4 million, $3.1 million, $4.2 million and $5.4 million in the four quarters ended June 30, 2026.

Recent performance

Annual revenue grew from $997,000 in 2021 to $9.2 million in 2025, while net loss widened from $3.1 million in 2021 to $40.0 million in 2025. Diluted EPS was -$10.72 in 2025. Operating cash flow was negative each year, reaching -$25.2 million in 2025. Recent quarterly revenue rose sequentially to $5.4 million for the quarter ended June 30, 2026. As of June 30, 2026, total assets were $561.8 million, total liabilities were $304.4 million, cash and equivalents were $15.6 million, and long-term debt was $279.1 million.

Strategy

The company states it is the only publicly traded qualified opportunity fund listed on a national securities exchange and intends to continue identifying, acquiring, developing or redeveloping and managing commercial and mixed-use real estate in qualified opportunity zones. It is externally managed by Belpointe PREP Manager, LLC and relies on proceeds from its public offerings and financing that may be provided by its sponsor or affiliates to fund operations. It is conducting a Follow-on Offering of up to $750,000,000 of Class A units on a continuous best-efforts basis through dealer manager Emerson Equity LLC. For the six months ended June 30, 2026, it sold $3,210,218 of Class A units in that offering, and aggregate gross offering proceeds across its public offerings reached $371.8 million as of June 30, 2026. Its Manager calculates NAV quarterly; NAV was $116.17 per Class A unit as of December 31, 2025, and $116.25 as of March 31, 2026.

Risks

• Limited operating history — The company has a limited operating history, has held its investments only a limited period, and cannot assure investors it will achieve its investment objectives or pay distributions.
• Reliance on offering proceeds and sponsor financing — Operations are primarily reliant on proceeds from public offerings and any financing provided by the sponsor or its affiliates, with no assurance additional capital will be available.
• Persistent losses and negative operating cash flow — Net loss widened to $40.0 million in 2025 and operating cash flow was -$25.2 million, with long-term debt of $279.1 million as of June 30, 2026.
• Macroeconomic and policy exposure — Risks include interest rates, inflation, tariffs, immigration and labor market changes, insurance availability and price, construction delays, lease-up delays, tenant defaults, and changes in federal tax law including the One Big Beautiful Bill Act of 2025.

Outlook

Management does not provide a quantified outlook in the excerpts, but describes continued execution on its qualified opportunity zone investment strategy funded by its Follow-on Offering and potential sponsor financing. The company notes ongoing risks including borrowing costs, inflation, construction delays, lease-up and stabilization timing, occupancy fluctuations, and tenant non-renewals. It also flags uncertainty from recent federal tax legislation and related guidance. NAV announcements continue quarterly, most recently $116.25 per Class A unit as of March 31, 2026.