8-K: Belpointe PREP Regains Compliance with NYSE American Listing Standards After Annual Meeting

Belpointe PREP, LLC (Belpointe OZ) announces it has regained compliance with NYSE American listing standards following the completion of its 2024 Annual Meeting of Unitholders.

Summary

• Belpointe PREP, LLC (Belpointe OZ) held its annual meeting of unitholders on January 28, 2025.
• The company received notification from NYSE American on January 6, 2025, that it was not in compliance with listing standards due to not holding its annual meeting by December 31, 2024.
• Unitholders approved the election of Class III directors and ratified the appointment of Citrin Cooperman & Company, LLP as the independent registered public accounting firm for the fiscal year ended December 31, 2024.
• On January 30, 2025, NYSE American acknowledged that Belpointe OZ had regained compliance with the listing standards.
• Belpointe OZ has over 2,500 units in its development pipeline throughout four cities, representing an approximate total project cost of over $1.3 billion.
• The company has filed registration statements with the SEC for the offer and sale of up to $1,500,000,000 of Class A units.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive. The company has resolved a compliance issue and is focused on future growth, but there are inherent risks associated with Opportunity Zone investments.

Positives

• Belpointe OZ has regained compliance with NYSE American listing standards, removing uncertainty for investors.
• The successful completion of the annual meeting demonstrates the company's commitment to corporate governance.
• The company has a significant development pipeline with an approximate total project cost of over $1.3 billion.
• Belpointe OZ offers investors liquidity, transparency, and access to Opportunity Zone investments through its publicly traded structure.

Negatives

• The company was previously notified of non-compliance with NYSE American listing standards due to a delay in holding its annual meeting.
• Investing in Belpointe OZ's Class A units involves a high degree of risk, including a complete loss of investment.

Risks

• Investing in Belpointe OZ's Class A units involves a high degree of risk, including a complete loss of investment.
• The company's forward-looking statements are subject to risks, uncertainties, and other factors beyond its control.

Future Outlook

Belpointe OZ remains focused on executing its investment strategy and creating long-term value for its unitholders through high-quality real estate investments in Opportunity Zones across the country.

Management Comments

• 'We appreciate the patience and support of our unitholders as we worked to resolve this matter,' said Brandon Lacoff, Chief Executive Officer of Belpointe OZ.
• With compliance restored, we remain focused on executing our investment strategy and creating long-term value for our unitholders through high-quality real estate investments in Opportunity Zones across the country.

Industry Context

Belpointe OZ is positioned as a leader in the Opportunity Zone space, leveraging its publicly traded structure to provide investors with liquidity, transparency, and access to Opportunity Zone investments.

Comparison to Industry Standards

• Belpointe OZ's publicly traded structure differentiates it from typical private Opportunity Zone funds, offering greater liquidity and transparency to investors.
• Other publicly traded real estate companies such as REITs (Real Estate Investment Trusts) offer similar liquidity, but Belpointe OZ focuses specifically on Opportunity Zone investments.
• Compared to private Opportunity Zone funds, Belpointe OZ's reporting requirements as a publicly traded company provide investors with more readily available information.

Stakeholder Impact

• Shareholders benefit from the company regaining compliance with listing standards, reducing uncertainty.
• Investors have access to Opportunity Zone investments through a publicly traded vehicle.
• The company's investments in Opportunity Zones contribute to economic development in those areas.

Next Steps

• Belpointe OZ will continue to execute its investment strategy and focus on high-quality real estate investments in Opportunity Zones.
• The company will continue to comply with NYSE American listing standards.

Key Dates