Dear Investors, 

The Fund delivered 13.30% in total returns and 11.02% in realized returns for the quarter. Performance continues to be driven by stable operating income and active asset management across the portfolio. We are encouraged by the increase in acquisition activity during the quarter and the depth of our current pipeline, which positions the Fund to continue capitalizing on opportunities that have come during this market cycle. 

We have a growing pipeline of properties under contract including Legends at Sparks Marina, a 421,479 square foot regional open-air shopping center located in Sparks, Nevada. The property is approximately 96% leased and serves as the leading retail and entertainment destination within the Reno-Sparks market and #4 in all of Nevada. We are currently in our due diligence period and expect to close this summer. 

We have been pursuing the property for several years, and we are excited to have it under contract. It provides a very attractive combination of good in-place cash flow with in-place investor yields above 10%, while also being a stable asset that strengthens the overall portfolio. In addition, there is notable upside in the property. There are many legacy leases from the previous era. As those leases mature in the coming months and years, transitioning those leases to more favorable terms and structures will create significant value on top of the attractive in-place returns. Additionally, there are potential pad- sale/arbitrage and development opportunities.  

For those considering an investment in the Fund, this represents a timely opportunity to participate. We encourage you to connect with our team to discuss this acquisition and the Fund more broadly. 

During the quarter, we acquired six projects, including the purchase of a note secured by a property located in Billings, Montana. We have subsequently negotiated a deed in lieu of foreclosure and now have the title to the property.  

We have generated tenant interest that provides flexibility in our leasing strategy and will create significant value in the asset as we lease space.. This is a market that requires diligence, creativity, and relationships, and this project in particular reflects how the team works to create value for the portfolio and our partners.  

The activity this quarter reflects the groundwork laid over the past year. While 2025 was lighter on acquisitions, we remained active in the market, and those efforts are now translating into awarded opportunities. Maintaining consistent engagement within the market continues to be a key differentiator. 

Additionally, we executed on the sale of three cell towers, one at Orchard Pointe in the Denver Tech Center and two at Gainey Ranch in Scottsdale, Arizona, generating a profitable gain on sale and demonstrating our ability to unlock additional value across the portfolio. 

Leasing activity across the portfolio (and across the broader market) has improved over the past several months, with increased tenant engagement and a growing number of executed leases. While the majority of activity in our suburban office portfolio continues to come from tenants in the 5,000 square-foot range, and built (spec) spaces, we are beginning to see larger users re-enter the market, which could represent meaningful upside over time. (See CoStar report on office leasing trends)

As discussed on our most recent manager call, late 2024 and 2025 represented the peak of lease rollover across the portfolio. That period has largely passed, and we are now focused on leasing vacant space. Early traction has been positive, and we are encouraged by the momentum. 

Interest rates remain our most significant headwind, however we are not unique in our position and as rates continue to pressure the market, it will create buying opportunities that the Fund is uniquely positioned to take advantage of due to our portfolio, relationships and team.  

We look forward to continuing to build on this momentum and appreciate your continued trust and partnership.