It was another successful quarter for the Fund, with realized returns of 12.34% and total returns of 12.39%. While today’s environment remains one of the most unique and challenging, we have experienced, perhaps rivaled only by the early days of the pandemic, we are encouraged by the results we have been able to deliver.  
 
Leasing activity continues to recover, though downtime and leasing costs still weigh on operating performance. Meanwhile, asset values remain relatively high, especially when compared to their current cash flow yields, which has made sourcing new acquisitions that align with our underwriting guidelines difficult. Despite these challenges, we remain active in evaluating new opportunities and continue to underwrite a steady pipeline of potential acquisitions.  

That work has led to several exciting projects currently under contract, including retail centers in Wyoming and Montana, along with multiple build-to-suit projects modeled after previously successful developments (see acquisition pipeline). These opportunities are consistent with our strategy: high quality real estate that generates strong cash flow and represents long-term value creation and stability.  For partners considering additional investment, we encourage you to speak with our investor relations team, as we anticipate accepting new capital in the coming weeks. 
 
Managing and optimizing the portfolio remains our top priority as we position the Fund for long-term growth and performance. This quarter, we sold two properties, BrightStar Meridian and the Adelmann Building, resulting in equity multiples of 2.05x and 2.26x, respectively. These returns reflect the sale proceeds on invested capital alone and do not include the cash flow generated during their hold period. While both assets performed well, they were no longer accretive to ongoing returns. The ability to exit at strong valuations highlights the embedded value in the portfolio. We remain disciplined in identifying new opportunities that meet our return targets, even as sourcing conditions remain challenging. For more detail, see the Portfolio at a Glance section in this report.  
 
These transactions highlight two key points: 

1. Recent activity reflects the value still to be realized across the portfolio, whether through leasing, development, or selective dispositions 

2. The current market remains highly competitive, with capital chasing deals at prices that, in our view, are not supported by underlying fundamentals, making disciplined underwriting more important than ever  

We cannot thank you enough for your continued support and confidence. We are proud of what the Fund is accomplishing in this challenging environment and remain focused on growth that reinforces stability today and creates lasting value for you, our partners. As market conditions normalize, we believe the Fund is well-positioned to deliver strong performance for decades to come.