v3.26.3
Equity
 9 Months Ended
Sep. 30, 2026
Equity [Abstract]  
Equity

Note 9. Equity

 

As of September 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)

 

 

0.6

%

 

 

55

 

 

 

27,092

 

 

 

2,450

 

 

 

—

 

Total Formation Contribution

 

 

0.6

%

 

 

111

 

 

 

27,147

 

 

 

2,460

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private Offering

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A Limited Partners

 

 

63.7

%

 

 

2,687,228

 

 

 

—

 

 

 

251,792

 

 

 

(9,269

)

Class I Limited Partners

 

 

3.0

%

 

 

128,399

 

 

 

—

 

 

 

51,588

 

 

 

(40,000

)

Class R Limited Partners

 

 

32.7

%

 

 

1,378,572

 

 

 

—

 

 

 

128,232

 

 

 

(3,817

)

Total Limited Partners

 

 

99.4

%

 

 

4,194,199

 

 

 

—

 

 

 

431,612

 

 

 

(53,086

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

100.0

%

 

 

4,194,310

 

 

 

27,147

 

 

$

434,072

 

 

$

(53,086

)
(1)
Includes 4,607,953 Units issued under the Private Offering and 174,457 Units issued pursuant to the Partnership's DRIP, and net of 588,211 Units redeemed or repurchased.
(2)
Includes approximately $415.9 million of initial contributions under the Private Offering and approximately $15.7 million of DRIP contributions.
(3)
Redemptions/repurchases amounts reflect 102,709 Class A Units, 443,213 Class I Units, and 42,289 Class R Units redeemed or repurchased.
(4)
Numbers of Units and OP Units rounded 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 nine months ended September 30, 2026 and 2025:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30, 2026

 

 

September 30, 2025

 

 

September 30, 2026

 

 

September 30, 2025

 

($s in thousands)

# of Units Issued

 

 

Proceeds

 

 

# of Units Issued

 

 

Proceeds

 

 

# of Units Issued

 

 

Proceeds

 

 

# of Units Issued

 

 

Proceeds

 

Class A

 

89,675

 

 

$

8,094

 

 

 

106,541

 

 

$

9,615

 

 

 

257,259

 

 

$

23,218

 

 

 

367,949

 

 

$

33,206

 

Class I

 

2,216

 

 

 

200

 

 

 

—

 

 

 

—

 

 

 

2,216

 

 

 

200

 

 

 

14,404

 

 

 

1,300

 

Class R

 

37,346

 

 

 

3,371

 

 

 

53,730

 

 

 

4,849

 

 

 

101,047

 

 

 

9,120

 

 

 

221,010

 

 

 

19,946

 

Total

 

129,237

 

 

$

11,665

 

 

 

160,271

 

 

$

14,464

 

 

 

360,522

 

 

$

32,538

 

 

 

603,363

 

 

$

54,452

 

 

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 nine months ended September 30, 2026 and 2025:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30, 2026

 

 

September 30, 2025

 

 

September 30, 2026

 

 

September 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

 

12,617

 

 

$

1,139

 

 

 

10,525

 

 

$

950

 

 

 

36,296

 

 

$

3,276

 

 

 

29,214

 

 

$

2,637

 

Class I

 

520

 

 

 

47

 

 

 

530

 

 

 

48

 

 

 

1,543

 

 

 

139

 

 

 

1,674

 

 

 

151

 

Class R

 

6,070

 

 

 

548

 

 

 

5,281

 

 

 

477

 

 

 

17,983

 

 

 

1,623

 

 

 

14,269

 

 

 

1,288

 

Total

 

19,207

 

 

$

1,734

 

 

 

16,336

 

 

$

1,475

 

 

 

55,822

 

 

$

5,038

 

 

 

45,157

 

 

$

4,076

 

 

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 nine months ended September 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 September 30, 2026 and December 31, 2025 were approximately $4.2 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.

 

The following table sets forth the redemptions processed pursuant to the Partnership Agreement, during the three and nine months ended September 30, 2026 and 2025:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30, 2026

 

 

September 30, 2025

 

 

September 30, 2026

 

 

September 30, 2025

 

($s in thousands)

# of Units

 

 

$

 

 

# of Units

 

 

$

 

 

# of Units

 

 

$

 

 

# of Units

 

 

$

 

Redemptions

 

39,912

 

 

$

3,602

 

 

 

5,746

 

 

$

519

 

 

 

109,275

 

 

$

9,862

 

 

 

7,246

 

 

$

654

 

 

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.