7 – IMPAIRMENT AND ASSETS HELD FOR SALE

For the three months ended June 30, 2026 and 2025, the Trust recorded a non-cash impairment charge of approximately $119,000 and $14,000, respectively. For the six months ended June 30, 2026 and 2025, the Trust recorded a non-cash impairment charge of approximately $366,000 and $14,000, respectively. Any decline in the estimated fair values of the Trust’s assets could result in impairment charges in the future. It is possible that such impairments, if required, could be material.

A summary of the Trust’s impairment expense for the six months ended June 30, 2026 and 2025 is below:

 SUMMARY OF TRUSTS IMPAIRMENT EXPENSES

As of June 30, 2026, the Trust considered Maverick 1 (Ordway, CO), Maverick 5 (Ordway, CO), Tamarack 7 including MIP (Ordway, CO), Tamarack 19 (Ordway, CO), Tamarack 3 (Ordway, CO), Tamarack 27 and 28 (Ordway, CO), Tamarack 4 and 5 (Ordway, CO), Walsenburg (CO) and Desert Hot Spring (CA) as Assets Held for Sale.

The Trust has aggregated and classified the assets and liabilities of properties to be sold as held for sale in its Consolidated Balance Sheets as of June 30, 2026 since all criteria under ASC 360-10-45-9 were met. The balance sheet as of December 31, 2025 has been recast to achieve comparability by including the Tamarack 7 and the Maverick 5 properties which are now considered held for sale as of June 30, 2026. The December 31, 2025 balance sheet also includes the Maverick 14 and Vinita properties which were sold during the six months ended June 30, 2026.

The assets and liabilities of assets held for sale were as follows:

 SCHEDULE OF ASSETS AND LIABILITIES OF ASSETS HELD FOR SALE

Other assets as of June 30, 2026 and December 31, 2025 consist of a security deposit held at the local utility in Ordway, CO where these assets are located and held for sale.