| Schedule of Revenues and Expenses Expected to be Incurred during Liquidation |
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. (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.
|
| Schedule of Change in Liabilities for Estimated Costs in Excess of Estimated Receipts during Liquidation |
The change in the liabilities for estimated costs in excess of estimated receipts during liquidation as of June 30, 2026 is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of February 1, 2026 |
|
|
Revenue Recognized / Expense Incurred |
|
|
Remeasurement |
|
|
As of June 30, 2026 |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated net inflows from real estate(1) |
|
$ |
43,692 |
|
|
$ |
(12,450 |
) |
|
$ |
(2,758 |
) |
|
$ |
28,484 |
|
|
Interest income |
|
|
3,828 |
|
|
|
(2,847 |
) |
|
|
558 |
|
|
|
1,539 |
|
|
Total estimated assets |
|
|
47,520 |
|
|
|
(15,297 |
) |
|
|
(2,200 |
) |
|
|
30,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
|
(22,854 |
) |
|
|
12,281 |
|
|
|
(378 |
) |
|
|
(10,951 |
) |
|
Interest expense |
|
|
(32,773 |
) |
|
|
12,086 |
|
|
|
(1,274 |
) |
|
|
(21,961 |
) |
|
Capital expenditures |
|
|
(2,762 |
) |
|
|
2,050 |
|
|
|
(113 |
) |
|
|
(825 |
) |
|
Capital expenditures for active construction |
|
|
(72,821 |
) |
|
|
31,578 |
|
|
|
(46,093 |
) |
|
|
(87,336 |
) |
|
Distributions and returns to noncontrolling interests |
|
|
(7,674 |
) |
|
|
3,412 |
|
|
|
(14,908 |
) |
|
|
(19,170 |
) |
|
Liquidation transaction costs |
|
|
(51,600 |
) |
|
|
24,885 |
|
|
|
(5,837 |
) |
|
|
(32,552 |
) |
|
Income tax |
|
|
(326 |
) |
|
|
(374 |
) |
|
|
— |
|
|
|
(700 |
) |
|
Other estimated (costs), net of receipts |
|
|
(2,384 |
) |
|
|
1,208 |
|
|
|
(580 |
) |
|
|
(1,756 |
) |
|
Total estimated liabilities |
|
|
(193,194 |
) |
|
|
87,126 |
|
|
|
(69,183 |
) |
|
|
(175,251 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities for estimated costs in excess of estimated receipts during liquidation |
|
$ |
(145,674 |
) |
|
$ |
71,829 |
|
|
$ |
(71,383 |
) |
|
$ |
(145,228 |
) |
|
(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.
|