[1]

Genesis Plaza is owned by two tenants-in-common, NetREIT Genesis and NetREIT Genessis II, each of which own 57% and 43%, respectively, and we beneficially own an aggregate of 92.0%, based on our ownership of each entity. We have 100% ownership of NetREIT Genesis and 81.5% ownership of NetREIT Genesis II, and we have control of both entities. During July 2024, the Company completed a minority ownership conversion option as result of a death in a noncontrolling trust within NetREIT Genesis II. The Company issued the trust 86,232 shares of SQFT Series A Common Stock in exchange for their 36.4% ownership in NetREIT Genesis II, as per the original exchange agreement.

[2]

The non-recourse loan on the Dakota Center property matured on July 6, 2024. During December 2024, the lender agreed to the broker the Company would use to sell the property to settle the non-recourse debt. During July 2025, the lender approved a purchase offer from a third party for $5,125,000. In connection with the approved sale, we have impaired the property’s book value and recorded an impairment charge of approximately $3.5 million for the year ended December 31, 2025. The sale was completed on January 14, 2026, resulting in a net gain of approximately $0.6 million, net of closing costs.

[3]

During January 2026, the Company received notice that the Company's failure to repay in full by January 5, 2026 the indebtedness related to the loan agreement governing Shea Center II had triggered a default event. On February 13, 2026, the Company received notification that the Shea Center II property governed by the loan agreement was moved into receivership, which will fulfill its obligation for this non-recourse loan. The foreclosure sale and public auction is scheduled for June 17, 2026. During the three months ended March 31, 2026, the Company completed the transfer of the real estate to lender in connection with a loan default. At the time of transfer, cash of approximately $2.3 million was held in a lender-controlled lockbox and was legally restricted for the benefit of the lender. The restricted cash was retained by the lender upon receivership, and the Company did not receive any cash proceeds from the transaction. Prior to the foreclosure, the restricted cash was presented within Cash, cash equivalents and restricted cash on the consolidated balance sheet. The receivership resulted in the derecognition of real estate, restricted cash, and the related mortgage debt. The Company recognized a loss on foreclosure of approximately $2.4 million. The transaction represents a noncash investing and financing activity on the statement of cash flow.

[4]

A portion of the proceeds from the sale of Highland Court were used in like-kind exchange transactions pursued under Section 1031 of the Code for the acquisition of our Mandolin property. Mandolin is owned by NetREIT Palm Self-Storage LP, through its wholly owned subsidiary, NetREIT Highland LLC, and the Company is the sole general partner and owns 61.3% of NetREIT Palm Self-Storage LP.

[5]

Includes Model Homes listed as held for sale as of March 31, 2026 and December 31, 2025. During the three months ended March 31, 2026, we recorded an impairment charge for model homes totaling $75,639, which reflects the estimated sales prices for these specific model homes. The short hold period, less than two years, and the builder changing their model style after we purchased the homes, contributed to the lower-than-expected sales price.