| CONSOLIDATED VARIABLE INTEREST ENTITIES |
NOTE 5 – CONSOLIDATED VARIABLE INTEREST ENTITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Assets in Consolidated Affiliates at | | Total Liabilities of Consolidated Affiliates at | Consolidated Affiliates | | | Date Acquired | | | Trust Ownership Interest | | | March 31,
2026 | | | December 31, 2025 | | March 31,
2026 | | December 31, 2025 | Sterling Northland, LLC | | | 2015 | | | 70% | | | $ | 36,027 | | $ | 35,822 | | $ | 29,081 | | $ | 29,056 | SRENOR1, LLC & SRENOR2, LLC | | | 2024 | | | 60% | | | | 68,608 | | | 68,704 | | | 51,733 | | | 51,403 | SE Rosemount, LLC | | | 2025 | | | 75% | | | | 17,159 | | | 13,038 | | | 6,500 | | | 2,348 | | | | | | | | | | $ | 121,794 | | $ | 117,564 | | $ | 87,314 | | $ | 82,807 |
Sterling Northland, LLC – the Operating Partnership owns a 70% interest as limited liability company in an office building in Bloomington, Minnesota. The property is encumbered by a mortgage, with the Trust acting as a guarantor on the outstanding indebtedness. SRENOR1, LLC & SRENOR2, LLC – the Operating Partnership owns a 60% interest as limited liability company in a multifamily property in Circle Pines, Minnesota. The property is encumbered by a mortgage, with the Trust acting as a guarantor on the outstanding indebtedness. SE Rosemount, LLC – the Operating Partnership owns a 75% interest as limited liability company in a multifamily development in Rosemount, Minnesota. The property is encumbered by a mortgage, with the Trust acting as a guarantor on the outstanding indebtedness. The following is a summary of the financial position of the consolidated variable interest entities at March 31, 2026 and December 31, 2025. | | | | | | | | | March 31, 2026 | | December 31, 2025 | | | | (in thousands) | ASSETS | | | | | | | Real estate investments | | $ | 134,374 | | $ | 130,741 | Accumulated depreciation | | | (18,902) | | | (18,751) | Total Real Estate Investments, net | | | 115,472 | | | 111,990 | Cash and cash equivalents | | | 3,006 | | | 2,669 | Restricted deposits | | | 933 | | | 726 | Financing and lease costs, net | | | 886 | | | 584 | Other assets, net | | | 1,497 | | | 1,595 | Total Assets | | $ | 121,794 | | $ | 117,564 | | | | | | | | LIABILITIES | | | | | | | Mortgage notes payable, net | | $ | 83,441 | | $ | 80,216 | Tenant security deposits payable | | | 580 | | | 547 | Accrued expenses and other liabilities | | | 3,293 | | | 2,044 | Total Liabilities | | | 87,314 | | | 82,807 | SHAREHOLDERS' EQUITY | | | | | | | Total Shareholders' Equity | | | 34,480 | | | 34,757 | | | | | | | | Total liabilities and shareholders' equity | | $ | 121,794 | | $ | 117,564 |
The following is a summary of results of operations of the consolidated variable interest entities for the three months ended March 31, 2026 and 2025. | | | | | | | | | Three months ended
March 31, | | | 2026 | | 2025 | | | | (in thousands) | Income from rental operations | | $ | 3,615 | | $ | 3,530 | Expenses from rental operations | | | 1,663 | | | 1,683 | Net operating income | | | 1,952 | | | 1,847 | Depreciation and amortization | | | 964 | | | 1,145 | Interest | | | 1,125 | | | 1,175 | Other (income) expense | | | (19) | | | 92 | Net loss | | $ | (118) | | $ | (565) |
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