[1]

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. As of March 31, 2026, the property was included in the real estate assets held for sale, net on the consolidated balance sheet. 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. See Note 4. Real Estate Assets above for further discussion on impairment of the property.

[2]

Interest rates as of March 31, 2026.

[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]

As of March 31, 2026, there were four model homes included as real estate assets held for sale. Our model homes have stand-alone mortgage notes at interest rates ranging from 5.76% to 8.0% per annum as of March 31, 2026

[5]

As of December 31, 2025, there were five model homes included as real estate assets held for sale. Our model homes have stand-alone mortgage notes at interest rates ranging from 5.94% to 8.0% per annum as of December 31, 2025.