INVESTMENT IN DATACOM JOINT VENTURE

6 Months Ended

Jun. 30, 2025

INVESTMENT IN DATACOM JOINT VENTURE

INVESTMENT IN DATACOM JOINT VENTURE

10.INVESTMENT IN DATACOM JOINT VENTURE

Datacom Joint Venture is a Delaware limited liability company established as a joint venture on December 8, 2022. The Datacom Joint Venture was entered into by SWIF II Ventures I, LLC, a wholly owned subsidiary of the Company, and DataCom, LP. The Company accounts for its 51% ownership interest in the Datacom Joint Venture as an equity method investment as the Datacom Joint Venture is under shared control among the two Datacom Joint Venture partners. The Company does not consolidate the Datacom Joint Venture as it does not have the power to direct the activities that most significantly impact Datacom Joint Venture’s economic performance. The Company considered acquisition, disposition, major operating and capital raising and allocation decisions as activities that primarily impact the economic results of the Datacom Joint Venture.

The purpose of the Datacom Joint Venture is to conduct and engage in the following activities: (i) directly or indirectly acquire, purchase, own, hold, manage, develop, operate, improve, renovate, rent, lease, fund, finance, encumber, sell, transfer, exchange, dispose of, invest in, or otherwise deal with certain fiber and wireless real estate assets and any direct or indirect interest therein or any securities of any kind issued by any entity primarily engaged in such activities; (ii) to own, directly or indirectly, a limited liability company or other interest in, and act as a general or limited partner, member, manager, or shareholder of, each of the subsidiaries of the Datacom Joint Venture and to exercise all of the powers, duties, rights, and responsibilities associated therewith; and (iii) to do such other things and engage in such other activities, as may be necessary, convenient or advisable with respect to the conduct of the business of the Datacom Joint Venture.

The following table summarizes the statements of operations of the Datacom Joint Venture for the three and six months ended June 30, 2025, and 2024:


		Three Months Ended June 30,						Six Months Ended June 30,
		2025			2024			2025			2024

Rental revenues		$	1,396,519		$	1,029,958		$	2,732,369		$	2,025,931
Rental operating and other expenses			(299,744)			(617,916)			(1,279,220)			(973,238)
Management fees payable to affiliate			(174,706)			(243,262)			(349,034)			(298,379)
Depreciation and amortization			(2,505,441)			(2,075,510)			(4,985,244)			(3,810,336)
Interest expense			(576,758)			—			(1,159,208)			—
Net loss of Datacom Joint Venture		$	(2,160,130)		$	(1,906,730)		$	(5,040,337)		$	(3,056,022)
The Company’s allocated loss from Datacom Joint Venture		$	(933,030)		$	(802,601)		$	(2,372,646)		$	(1,386,435)

The following table summarizes the balance sheets of the Datacom Joint Venture as of June 30, 2025 and December 31, 2024:


		June 30, 2025			December 31, 2024
Assets
Property and equipment, net		$	50,235,739		$	51,256,072
Intangible assets, net			58,352,592			61,570,267
Other assets, net			23,071,871			12,972,693
Total assets		$	131,660,202		$	125,799,032
Liabilities and members’ capital
Accounts payable and accrued liabilities		$	580,871		$	781,914
Due to affiliates			333,678			193,014
Acquisition, asset and property management fees payable			992,339			753,555
Loan payable, net			43,000,695			32,375,896
Other liabilities, net			13,885,633			13,780,190
Members’ capital			72,866,986			77,914,463
Total liabilities and members’ capital		$	131,660,202		$	125,799,032
The Company’s investment in Datacom Joint Venture		$	37,750,140		$	40,122,786

During the six months ended June 30, 2025, no member capital contributions were made in the Datacom Joint Venture. For the six months ended June 30, 2024, the Datacom Joint Venture had member capital contributions of $8,193,081 of which the Company contributed $3,919,185.