| CONSOLIDATED VARIABLE INTEREST ENTITIES |
NOTE 5 – CONSOLIDATED VARIABLE INTEREST ENTITIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Assets in Consolidated Affiliates at | | Total Liabilities of Consolidated Affiliates at | Consolidated Affiliates | | | Date Acquired | | | Trust Ownership Interest | | | September 30,
2026 | | | December 31, 2025 | | September 30,
2026 | | December 31, 2025 | Sterling Northland, LLC | | | 2015 | | | 70% | | | $ | 35,658 | | $ | 35,822 | | $ | 28,524 | | $ | 29,056 | SRENOR1, LLC & SRENOR2, LLC | | | 2024 | | | 60% | | | | 67,813 | | | 68,704 | | | 52,580 | | | 51,403 | SE Rosemount, LLC | | | 2025 | | | 75% | | | | 33,660 | | | 13,038 | | | 23,081 | | | 2,348 | | | | | | | | | | $ | 137,131 | | $ | 117,564 | | $ | 104,185 | | $ | 82,807 |
Sterling Northland, LLC – the Operating Partnership owns a 70% interest as limited liability company in an office building in Bloomington, Minnesota. The property is encumbered by a mortgage, with the Trust acting as a guarantor on the outstanding indebtedness. SRENOR1, LLC & SRENOR2, LLC – the Operating Partnership owns a 60% interest as limited liability company in a multifamily property in Circle Pines, Minnesota. The property is encumbered by a mortgage, with the Trust acting as a guarantor on the outstanding indebtedness. SE Rosemount, LLC – the Operating Partnership owns a 75% interest as limited liability company in a multifamily development in Rosemount, Minnesota. The property is encumbered by a mortgage, with the Trust acting as a guarantor on the outstanding indebtedness. The following is a summary of the financial position of the consolidated variable interest entities at September 30, 2026 and December 31, 2025. | | | | | | | | | September 30, 2026 | | December 31, 2025 | | | | (in thousands) | ASSETS | | | | | | | Real estate investments | | $ | 152,925 | | $ | 130,741 | Accumulated depreciation | | | (20,637) | | | (18,751) | Total Real Estate Investments, net | | | 132,288 | | | 111,990 | Cash and cash equivalents | | | 1,408 | | | 2,669 | Restricted deposits | | | 928 | | | 726 | Financing and lease costs, net | | | 786 | | | 584 | Other assets, net | | | 1,721 | | | 1,595 | Total Assets | | $ | 137,131 | | $ | 117,564 | | | | | | | | LIABILITIES | | | | | | | Mortgage notes payable, net | | $ | 95,187 | | $ | 80,216 | Tenant security deposits payable | | | 460 | | | 547 | Accrued expenses and other liabilities | | | 8,538 | | | 2,044 | Total Liabilities | | | 104,185 | | | 82,807 | SHAREHOLDERS' EQUITY | | | | | | | Total Shareholders' Equity | | | 32,946 | | | 34,757 | | | | | | | | Total liabilities and shareholders' equity | | $ | 137,131 | | $ | 117,564 |
The following is a summary of results of operations of the consolidated variable interest entities for the three and nine months ended September 30, 2026 and 2025. | | | | | | | | | | | | | | | Three months ended
September 30, | | Nine months ended
September 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | | (in thousands) | | | (in thousands) | Income from rental operations | | $ | 3,490 | | $ | 3,635 | | $ | 10,741 | | $ | 10,608 | Expenses from rental operations | | | 1,634 | | | 1,691 | | | 5,030 | | | 4,955 | Net operating income | | | 1,856 | | | 1,944 | | | 5,711 | | | 5,653 | Depreciation and amortization | | | 923 | | | 967 | | | 2,810 | | | 3,063 | Interest | | | 1,062 | | | 1,101 | | | 3,267 | | | 3,252 | Other (income) expense | | | (12) | | | (22) | | | (37) | | | 55 | Net loss | | $ | (117) | | $ | (102) | | $ | (329) | | $ | (717) |
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