| Summary of Discontinued Operations |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2025 |
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2024 |
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2025 |
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2024 |
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Revenues: |
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Leasing and related revenues |
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$ |
— |
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$ |
1,431,553 |
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$ |
— |
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$ |
2,870,730 |
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Operating expenses: |
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Property operating expenses |
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— |
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617,514 |
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— |
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1,246,590 |
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Property operating expenses – affiliates |
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— |
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126,256 |
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— |
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252,711 |
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Depreciation |
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— |
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304,451 |
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— |
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660,286 |
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Total operating expenses |
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— |
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1,048,221 |
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— |
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2,159,587 |
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Other expenses: |
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Interest expense (1) |
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— |
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1,151,689 |
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— |
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2,075,697 |
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Derivative fair value adjustment (2) |
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— |
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147,284 |
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— |
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147,284 |
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Interest expense - debt issuance costs (3) |
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— |
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362,966 |
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— |
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458,054 |
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Total other expenses |
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— |
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1,661,939 |
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— |
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2,681,035 |
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Net loss from discontinued operations |
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— |
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(1,278,607 |
) |
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— |
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(1,969,892 |
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(1)Includes interest expense related to the Fayetteville JPM Mortgage Loan, Fayetteville Mortgage Loan, and the KeyBank Bridge Loan that are required to be repaid according to the terms of the loan, in conjunction with the sale of the Fayetteville Property. (2)On April 10, 2024, in conjunction with the Fayetteville Mortgage Loan refinance, the Company entered into an interest rate cap agreement with a notional amount of $34.5 million, whereby SOFR was capped at 4.25% through the maturity of the Fayetteville Mortgage Loan, that capped the all in rate at 6.5%. We elected not to designate the interest cap as a hedge for GAAP purposes, and changes in the fair value are recorded in discontinued operations. (3)Includes interest expense - debt issuance costs related to the Fayetteville JPM Mortgage Loan, Fayetteville Mortgage, and the KeyBank Bridge Loan that are required to be repaid according to the terms of the loan, in conjunction with the sale of the Fayetteville Property. The amounts in the statement of cash flows that are included in discontinued operations are summarized in the following table:
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Six Months Ended June 30, |
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2025 |
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2024 |
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Adjustments to reconcile discontinued operating activities: |
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Depreciation |
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$ |
— |
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$ |
660,286 |
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Amortization of debt issuance costs |
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— |
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170,005 |
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Derivative fair value adjustment |
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— |
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147,284 |
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Adjustments to reconcile discontinued operating activities |
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— |
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977,575 |
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Increase (decrease) in cash, cash equivalents, and restricted cash from changes in assets and liabilities: |
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Purchase of interest rate cap |
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— |
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(366,000 |
) |
Other assets |
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— |
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(170,117 |
) |
Accounts payable and accrued liabilities |
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— |
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245,781 |
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Due to affiliates |
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— |
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252,711 |
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Net cash provided by discontinued operating activities |
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— |
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(37,625 |
) |
Cash flows from discontinued investing activities: |
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Additions to real estate |
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— |
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(193,341 |
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Net cash used in discontinued investing activities |
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— |
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(193,341 |
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Cash flows from discontinued financing activities: |
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Principal payments of KeyBank Bridge Loans |
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— |
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(300,000 |
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Proceeds from Fayetteville JPM refinance |
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— |
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5,000,000 |
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Debt issuance costs |
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— |
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(362,439 |
) |
Net cash used in discontinued financing activities |
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$ |
— |
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$ |
4,337,561 |
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