Belpointe OZ Announces Fourth Quarter Net Asset Value Per Class A Unit
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Insights
The announcement of Belpointe PREP, LLC's unaudited quarterly net asset value (NAV) provides critical information for investors evaluating the company's current financial health. A NAV of $365.43 million or $100.88 per Class A unit, especially in the volatile commercial real estate market, suggests a stable asset base amid economic headwinds such as higher interest rates and increased construction costs. This stability is particularly noteworthy given the broader market conditions, which have been characterized by tightening lending conditions that can affect liquidity and valuations in the real estate sector.
Investors should note, however, that NAV is not calculated according to U.S. GAAP, which may lead to differences in asset and liability valuations. The exclusions in the NAV calculation, like transaction costs and equity premium adjustments and the non-adjustment for gains or distributions to the manager, could potentially affect the accuracy and comparability of the NAV. This discrepancy is important to consider when comparing Belpointe OZ's financial position to other entities that report under U.S. GAAP. In the long-term, the methods of valuation and the adjustments made can have significant implications for the perceived performance of the fund.
Belpointe OZ's announcement highlights the resilience of their asset valuations despite ongoing challenges in the commercial real estate sector. The mention of higher interest rates, tighter lending conditions and increased construction costs are factors that typically depress real estate valuations. In this context, maintaining a stable NAV is an indicator of robust asset management and potentially strategic asset allocation.
However, investors should be cautious about the forward-looking implications of the fund's valuation. The statement that the fair value of Belpointe OZ’s real estate assets may have been impacted by post-reporting date events is a reminder of the inherent unpredictability of real estate markets. Factors such as changes in market demand, regulatory shifts and broader economic trends can dramatically alter the landscape. The fund's past performance not being indicative of future results is a standard disclaimer, yet it underscores the need for investors to continually reassess the fund's performance in light of changing market conditions.
From a risk management perspective, the report from Belpointe OZ carries important signals. The stability of the NAV amidst market uncertainties is a positive sign, but the acknowledgment of the potential impact of unknown events on the fair value of real estate assets post-December 31, 2023, highlights the importance of ongoing risk assessment. It is critical for investors to understand that all investments carry the risk of loss of principal and real estate investments are no exception. The dynamic nature of the commercial real estate market requires continuous monitoring of factors that can affect asset values, such as economic cycles, demographic shifts and interest rate movements.
Moreover, the non-GAAP measure of NAV requires investors to exercise due diligence in understanding the unique adjustments made by the fund, as these can influence the perceived risk and return profiles. The fund's approach to calculating NAV, including the non-adjustment for gains or distributions to the manager, may also have implications for the alignment of interests between the fund managers and investors.
Greenwich, CT, Feb. 29, 2024 (GLOBE NEWSWIRE) -- Belpointe PREP, LLC (NYSE American: OZ) (“Belpointe OZ”), a publicly traded qualified opportunity fund, today announced its unaudited quarterly net asset value (“NAV”) as of December 31, 2023 of
“Despite current challenges and uncertainties in the commercial real estate market, including higher interest rates, tighter lending conditions and increased construction costs, we are pleased to announce that our NAV remains relatively stable” said Brandon Lacoff, CEO of Belpointe OZ.
NAV is not a measure used under accounting principles generally accepted in the United States of America (“U.S. GAAP”), and the valuations of and certain adjustments made to our assets and liabilities used in the determination of NAV will differ from U.S. GAAP. You should not consider NAV to be equivalent to members’ capital or any other U.S. GAAP measure. For information on how Belpointe OZ calculates NAV, see the “Net Asset Value Calculation and Valuation Policies” section of our prospectus
In calculating its NAV, Belpointe OZ adjusted for the transaction costs and equity premium associated with its acquisition of Belpointe REIT, Inc., however, did not adjust for gains or distributions distributable to the manager pursuant to the manager’s Class B units based on the conclusion that such amounts would be immaterial.
The fair value of Belpointe OZ’s real estate assets may have been impacted after December 31, 2023 by circumstances and events that are as of yet unknown. Past performance is not necessarily indicative of future results. All investments involve risk including the loss of principal.
About Belpointe OZ
Belpointe OZ is a publicly traded qualified opportunity fund, listed on NYSE American under the symbol “OZ.” To date, Belpointe OZ has over 2,500 units in its development pipeline throughout four cities, representing an approximate total project cost of over
Belpointe OZ has filed two registration statements (including a combined prospectus) with the U.S. Securities and Exchange Commission (“SEC”) for the offer and sale of up to an aggregate of
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may be considered forward-looking, such as statements containing estimates, projections and other forward-looking information. Forward-looking statements are typically identified by words and phrases such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” or the negative of such words and other comparable terminology. However, the absence of these words does not mean that a statement is not forward-looking. Any forward-looking statements expressing an expectation or belief as to future events is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future events and involve risks, uncertainties and other factors beyond our control. Therefore, we caution you against relying on any of these forward-looking statements. Actual outcomes and results may differ materially from what is expressed in any forward-looking statement. Except as required by applicable law, including federal securities laws, we do not intend to update any of the forward-looking statements to conform them to actual results or revised expectations.
Investor Relations and Media Contact:
Cody H. Laidlaw
Belpointe PREP, LLC
255 Glenville Road
Greenwich, Connecticut 06831
IR@belpointeoz.com
203-883-1944
FAQ
What is the unaudited quarterly net asset value of Belpointe OZ as of December 31, 2023?
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What should investors not consider NAV to be equivalent to?
