As we reflect on 2025, in many ways, it was one of the most difficult years of the Fund’s history. That said, difficulties create opportunities to set ourselves apart and show what we are made of. As we look back on the year and look out across the broader real estate market, the Alturas Real Estate Fund remains a top performer with margin to spare. As the market continues to recover, we are well positioned for continued success.  What has set us apart over the first decade of the Fund is an emphasis on long-term results that are built through people, partnerships, and execution rather than a transactional approach to investing – this approach remains our core focus.

For the quarter, realized returns were 16.50%, and total returns were 15.89%. For the full year, realized returns were 12.43% and total returns were 13.60%. In an environment where many real estate investments are struggling to generate attractive returns, this is an exceptional outcome and one that clearly stands out relative to peer performance.

We are proud of what the team accomplished this year. From acquiring several new assets, to successfully exiting others, and making progress in our leasing and development initiatives across the portfolio. These results highlight the resilience of the portfolio, strength of our partnerships, and our team that gets things done. We are hitting the ground running in 2026! This year will likely present similar opportunities and challenges, among many unknown changes. While we don’t know what tomorrow may bring, one thing is certain, we will find ways to create and realize value and in doing so generate returns for our partners.

Sourcing attractive returns in today’s environment is challenging. Asset pricing is elevated, and competition for properties is intense. As a result, compelling opportunities are increasingly found through creativity, patience, and a willingness to engage in more complex situations rather than settle for market rate transactions. Our focus continues to be on creating opportunities through our tenant relationships, broker network, development capabilities, and partnerships that allow us to win in the current environment with upside for the future.

The sale of Decker Lake is a clear example of this approach. Years of leasing and asset management work ultimately translated into a successful sale of the asset, highlighting the value embedded across the portfolio. Similarly, the Ogden development project reflects our ability to access opportunities through trusted relationships and create value through our hands-on approach and alignment with the right partners who can execute.

The open-ended structure of the Fund continues to be a significant advantage in this environment. It allows us to be selective about when and where capital is deployed, whether through new acquisitions, incremental investment to support leasing and operations across the portfolio, while also enabling us to sell assets when we believe value has been maximized and redeploy capital without artificial timing pressure. This flexibility supports disciplined decision-making as market conditions continue to evolve.

As we move into 2026, we are seeing a growing pipeline of opportunities that will likely allow us to accept new investments (see Acquisition Pipeline below). For partners considering an additional investment or those interested in participating in upcoming capital raises, we encourage you to reach out to our investor relations team to discuss the current and near-term opportunities.

Looking ahead, we remain focused on the underlying performance of the portfolio and the continued execution of leasing and development initiatives already underway, including our spec suite and build-to-suit programs, as well as completing development projects within the portfolio. This past year demonstrated our ability to execute despite the current market backdrop, and while challenges may persist, we are confident that the strength of our team and our partnership with you will allow us to continue to win.