v3.26.1
Equity
 6 Months Ended
Jun. 30, 2026
Equity [Abstract]  
Equity

Note 9. Equity

 

As of June 30, 2026, the Partners' respective ownership interests, life-to-date contributions and redemptions or repurchases were as follows:

 

($s in thousands)

 

%
Owned

 

 

# of Units
Owned (1)

 

 

# of OP Units Owned

 

 

Contributions (2)

 

 

Redemptions/Repurchases (3)

 

Formation Contribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General Partner (4)

 

 

0.0

%

 

 

56

 

 

 

55

 

 

$

10

 

 

$

—

 

SCI-II (4)

 

 

0.7

%

 

 

55

 

 

 

27,092

 

 

 

2,450

 

 

 

—

 

Total Formation Contribution

 

 

0.7

%

 

 

111

 

 

 

27,147

 

 

 

2,460

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private Offering

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A Limited Partners

 

 

63.6

%

 

 

2,615,685

 

 

 

—

 

 

 

242,560

 

 

 

(6,492

)

Class I Limited Partners

 

 

3.1

%

 

 

125,663

 

 

 

—

 

 

 

51,341

 

 

 

(40,000

)

Class R Limited Partners

 

 

32.6

%

 

 

1,344,296

 

 

 

—

 

 

 

124,314

 

 

 

(2,992

)

Total Limited Partners

 

 

99.3

%

 

 

4,085,644

 

 

 

—

 

 

 

418,215

 

 

 

(49,484

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

100.0

%

 

 

4,085,755

 

 

 

27,147

 

 

$

420,675

 

 

$

(49,484

)
(1)
Includes 4,478,716 Units issued under the Private Offering and 155,228 Units issued pursuant to the Partnership's DRIP, and net of 548,300 Units redeemed or repurchased.
(2)
Includes approximately $404.2 million of initial contributions under the Private Offering and approximately $14.0 million of DRIP contributions.
(3)
Redemptions/repurchases amounts reflect 71,940 Class A Units, 443,213 Class I Units, and 33,147 Class R Units redeemed or repurchased.
(4)
Numbers of Units and OP Units rounded in order to show the correct totals owned by the GP and SCI-II.

Private Offering

In April 2022, we commenced the Private Offering of Units for up to $750 million, expandable to $1 billion at the sole discretion of the GP. All classes of Units differ only with respect to the fees paid to broker-dealers in connection with their sale and are viewed as the same ownership interest.

The following tables set forth the net proceeds raised from the Private Offering and the number of Units issued for the three and six months ended June 30, 2026 and 2025:

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30, 2026

 

 

June 30, 2025

 

 

June 30, 2026

 

 

June 30, 2025

 

($s in thousands)

# of Units Issued

 

 

Proceeds

 

 

# of Units Issued

 

 

Proceeds

 

 

# of Units Issued

 

 

Proceeds

 

 

# of Units Issued

 

 

Proceeds

 

Class A

 

56,126

 

 

$

5,065

 

 

 

136,836

 

 

$

12,349

 

 

 

167,584

 

 

$

15,124

 

 

 

261,408

 

 

$

23,592

 

Class I

 

—

 

 

 

—

 

 

 

14,404

 

 

 

1,300

 

 

 

—

 

 

 

—

 

 

 

14,404

 

 

 

1,300

 

Class R

 

30,083

 

 

 

2,715

 

 

 

64,643

 

 

 

5,834

 

 

 

63,701

 

 

 

5,749

 

 

 

167,280

 

 

 

15,097

 

Total

 

86,209

 

 

$

7,780

 

 

 

215,883

 

 

$

19,483

 

 

 

231,285

 

 

$

20,873

 

 

 

443,092

 

 

$

39,989

 

 

The Partnership's DRIP allows the Limited Partners to elect to have their cash distributions attributable to the class of Units owned automatically reinvested in additional Units of the same class. The following tables set forth the DRIP contributions received, and the number of Units issued pursuant to the DRIP, during the three and six months ended June 30, 2026 and 2025:

 

 

Three Months Ended

 

 

Six Months Ended

 

 

June 30, 2026

 

 

June 30, 2025

 

 

June 30, 2026

 

 

June 30, 2025

 

($s in thousands)

# of Units Issued

 

 

DRIP Proceeds

 

 

# of Units Issued

 

 

DRIP Proceeds

 

 

# of Units Issued

 

 

DRIP Proceeds

 

 

# of Units Issued

 

 

DRIP Proceeds

 

Class A

 

12,021

 

 

$

1,085

 

 

 

9,616

 

 

$

867

 

 

 

23,679

 

 

$

2,137

 

 

 

18,688

 

 

$

1,686

 

Class I

 

509

 

 

 

46

 

 

 

519

 

 

 

47

 

 

 

1,023

 

 

 

92

 

 

 

1,144

 

 

 

103

 

Class R

 

5,943

 

 

 

536

 

 

 

4,720

 

 

 

426

 

 

 

11,913

 

 

 

1,075

 

 

 

8,988

 

 

 

811

 

Total

 

18,473

 

 

$

1,667

 

 

 

14,855

 

 

$

1,340

 

 

 

36,615

 

 

$

3,304

 

 

 

28,820

 

 

$

2,600

 

 

Distributions

The Company's distributable cash, as defined in the partnership agreement of the Partnership (as amended from time to time, the "Partnership Agreement"), is apportioned among the Limited Partners pro rata in accordance with their respective Units and pursuant to the distribution waterfall, which may include distributions to SIP IV Investor in respect of its subordinated participation interest. Distributions to each Limited Partner other than the GP will be distributed in the following order of priority:

i.
first, to the Limited Partner until such Limited Partner’s preferred return account balance is reduced to zero. Preferred return means 6% cumulative, non-compounding annual return on the Limited Partners’ unreturned capital account balances;
ii.
second, to the Limited Partner until such Limited Partner’s unreturned capital account balance is reduced to zero; and
iii.
20% of the remaining distributable cash to SIP IV Investor as its subordinated participation interest and 80% to Limited Partners.

In each of the six months ended June 30, 2026 and 2025, the Company made distributions at an annualized rate of $4.05 per unit to holders of Units of record as of the last day of each quarter, payable the following month. Distributions payable as of June 30, 2026 and December 31, 2025 were approximately $4.0 million and $3.9 million, respectively.

Redemptions

In accordance with the Partnership Agreement, Limited Partners who have held their Units for at least one year may request to have the Company redeem, in part or in whole, Units held by such Limited Partners. The redemption price for Limited Partners who have held their Units for at least one year but less than two years will equal ninety-five percent of the then current gross offering price. As the distributable cash of the Company permits, a redemption request shall be accommodated as determined by the GP in its sole discretion. To the extent the redemption amount, as defined in the Partnership Agreement, exceeds the Limited Partner's preferred return account and unreturned capital, 80% of such excess will be paid to the Limited Partner, and 20% to SIP IV Investor as part of its subordinated participation interest.

Any redemption request that would result in the Limited Partner owning less than $50,000 in Units (based upon the per Unit net asset value then in effect) shall be deemed to be a request for redemption of all such Limited Partner’s Units.

During the six months ended June 30, 2026, the Partnership redeemed 69,363 Units for approximately $6.3 million. During the six months ended June 30, 2025, the Partnership redeemed 1,500 Units for approximately $0.1 million.

Preferred Equity

In December 2022, the SIP IV REIT issued 125 non-voting Series A preferred shares at $1,000 per share for aggregate consideration before expenses of $125,000. The SIP IV REIT pays preferred dividends at an annual rate of 12% per share, payable in two installments each year.