Note 4 — Liabilities for Estimated Costs in Excess of Estimated Receipts During Liquidation

The liquidation basis of accounting requires us to estimate net cash flows from operations and to accrue all costs associated with implementing and completing the Plan of Sale and Liquidation. As of March 31, 2026, we estimated that we will have costs in excess of estimated receipts during the liquidation process. These amounts can vary significantly due to, among other things, the timing and estimates for executing and renewing leases, estimates of tenant improvement costs and capital expenditures, the timing and value of property sales, estimates of direct costs incurred to complete the sales, the timing and estimated amounts associated with discharging known and contingent liabilities, and the estimated costs associated with the winding up of operations. These costs are estimated and are anticipated to be paid out over the liquidation period based on the estimated disposal date of each asset; however, no assurances can be provided that the dates used in estimation will be met.

Upon transition to the liquidation basis of accounting on February 1, 2026, we accrued the following revenues and expenses expected to be incurred during liquidation (in thousands):


	As of February 1, 2026
Rental and other property revenues	$	69,958
Property operating expenses		(26,266	)
General and administrative expenses		(22,854	)
Interest income		3,828
Interest expense		(32,773	)
Capital expenditures		(2,762	)
Capital expenditures for active construction(1)		(72,821	)
Liquidation transaction costs(2)		(51,600	)
Distributions and returns to noncontrolling interests		(7,674	)
Income tax		(326	)
Other estimated (costs), net of receipts		(2,384	)
Liabilities for estimated costs in excess of estimated receipts during liquidation	$	(145,674	)

(1) Capital expenditures for our one multifamily development project under construction in Miami, Florida is primarily funded through a construction loan and preferred equity draws. Our estimated future capital expenditures exclude certain commitments we expect will not be incurred prior to the sale of our interest in the active development.

(2) Liquidation transaction costs primarily include disposal costs related to the sale of the Company's assets, severance expenses, and advisory expenses related to the Plan of Sale and Liquidation.


	As of February 1, 2026			Revenue Recognized / Expense Incurred			As of March 31, 2026
ASSETS
Estimated net inflows from real estate(1)	$	43,692		$	(7,069	)	$	36,623
Interest income		3,828			(1,323	)		2,505
Total estimated assets		47,520			(8,392	)		39,128

LIABILITIES
General and administrative expenses		(22,854	)		5,514			(17,340	)
Interest expense		(32,773	)		5,944			(26,829	)
Capital expenditures		(2,762	)		1,734			(1,028	)
Capital expenditures for active construction		(72,821	)		14,570			(58,251	)
Distributions and returns to noncontrolling interests		(7,674	)		1,947			(5,727	)
Liquidation transaction costs		(51,600	)		19,916			(31,684	)
Income tax		(326	)		(374	)		(700	)
Other estimated (costs), net of receipts		(2,384	)		763			(1,621	)
Total estimated liabilities		(193,194	)		50,014			(143,180	)

Liabilities for estimated costs in excess of estimated receipts during liquidation	$	(145,674	)	$	41,622		$	(104,052	)

(1) Estimated net inflows from real estate include estimated future rental and other property revenues during liquidation less estimated future property operating expenses during liquidation