Note 7 – PROPERTY AND EQUIPMENT

Property and equipment consists of buildings of $19,593,849, land of $1,583,572, accumulated depreciation of $(246,063) and accumulated amortization of buildings of $(94,068), for property and equipment, net, of $20,837,290 at June 30, 2026. Depreciation expense was $53,326 for the six months ended June 30, 2026. Accumulated depreciation includes amounts recorded by acquired entities before the dates on which the Company obtained control.

Construction in progress of $1,260,177 at June 30, 2026 consists of predevelopment costs of $62,305, construction in process of $545,224 and capitalized construction period interest of $652,647. The comparable amount of $577,510 at December 31, 2025 consists of predevelopment costs of $48,440, construction in process of $129,995 and capitalized construction period interest of $399,075. Interest is capitalized during the period an asset is being prepared for its intended use. Of the $253,572 of interest capitalized during the six months ended June 30, 2026, $192,870 was released from the escrowed interest reserve on the DC Rental properties and $60,702 was accrued on the Rhode Island loans.

One commercial condominium unit, Unit C-1 at 3628 Georgia Avenue, NW, Washington, D.C., is vacant, is not in service, and is not being depreciated. The units at that property are being upgraded for resale and have generated no rental activity.