BELPOINTE OZ ISSUES CHAIRMAN & CEO LETTER TO UNITHOLDERS
Rhea-AI Summary
Belpointe OZ (NYSE American: OZ) Chairman & CEO letter (April 8, 2026) updates leasing, financing, pipeline and OZ 2.0 positioning. Aster & Links is >70% leased and VIV is >40% leased; both target stabilization late 2026–early 2027 with refinancing and distributions expected in 2027. Sale of 900 8th Avenue South priced ≈$19.3M, closing expected 2027. Company highlights permanent OZ 2.0 benefits and continued access for public investors.
Positive
- Aster & Links >70% leased as of April 2026
- VIV >40% leased since lease-up began October 2025
- Sale agreement for 900 8th Avenue South at ~$19.3M
- Planned refinancing into long‑term Fannie/Freddie agency debt
- Qualification under permanent OZ 2.0 and public listing
Negative
- Distributions to unitholders not expected until 2027
- Current capital structure relies on variable-rate construction financing
- Potential property-level capital raises that may affect unitholder interests
News Market Reaction – OZ
On the day this news was published, OZ declined 2.00%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
OZ fell 5.12% while key peers showed mixed moves: LPA up 1.63%, AEI up 3.43%, MRNO down 10.13%, AXR down 2.28%, JFB down 5.61%. Momentum scanner only flagged LPA moving down modestly earlier, reinforcing a stock-specific move for OZ rather than a sector-wide pattern.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 10 | Leasing milestone | Positive | +0.5% | Aster & Links reached roughly two‑thirds leased, signaling lease-up progress. |
| Jan 14 | Leasing milestone | Positive | +2.2% | VIV achieved 25% of units leased, reflecting steady early demand. |
| Jan 13 | Development site deal | Positive | -0.3% | Entered Darien, CT site agreement requiring no upfront cash outlay. |
| Oct 09 | Refinancing completed | Positive | -0.7% | $204.14M refinancing of Aster & Links to support lease-up and save interest. |
Recent project and financing updates have produced small, mixed price reactions, with an even split between alignment and divergence.
Over the last several quarters, OZ’s news flow has centered on lease-up and financing of its flagship Aster & Links and VIV projects and selective pipeline expansion. In October 2025, it secured a $204.14M refinancing for Aster & Links, followed by a Nashville sale agreement for $19.3M. Early 2026 updates highlighted Aster & Links reaching roughly two‑thirds leased and VIV hitting 25% pre‑lease milestones, plus a no‑cash Darien site deal. Today’s letter extends that narrative with higher leasing levels, a defined 2027 distribution goal and confirmation of the planned 900 8th Avenue South sale timing.
Market Pulse Summary
This announcement detailed continued leasing progress at Aster & Links and VIV, with levels above 70% and 40% respectively, plus a 2027 goal for commencing distributions after refinancing into permanent agency debt. It also reaffirmed the planned $19.3M sale of 900 8th Avenue South and described optionality for future condominium conversion. In the background, prior filings reported NAV of $116.17 per Class A unit as of Dec 31, 2025, underscoring the importance of tracking lease-up, refinancing execution, and OZ 2.0 implementation.
Key Terms
qualified opportunity fund regulatory
qualified opportunity zone program regulatory
opportunity zone 2.0 regulatory
fannie mae financial
freddie mac financial
condominium conversion technical
purchase and sale agreement financial
permanent debt financial
AI-generated analysis. Not financial advice.
GREENWICH, CT, April 08, 2026 (GLOBE NEWSWIRE) -- Belpointe PREP, LLC (“Belpointe OZ” or the “Company”) (NYSE American: OZ), the only Qualified Opportunity Fund listed on a national securities exchange, today issued a letter to unitholders from Chairman and Chief Executive Officer, Brandon Lacoff, providing an update on the Company’s leasing progress, financing strategy, development pipeline, and positioning under the Opportunity Zone 2.0 program.
Key highlights from the letter include:
- Flagship development Aster & Links, in Sarasota, FL, surpasses
70% residential leasing - VIV, in St. Petersburg, FL, exceeds
40% residential leasing since commencing lease-up in October 2025 - Stabilization of both assets expected between late 2026 and early 2027, with refinancing into permanent debt anticipated to follow
- Distributions to unitholders are presently forecasted to commence in 2027
- Sale of 900 8th Avenue South in Nashville, TN expected in 2027
- Belpointe OZ’s positioning under the permanent OZ 2.0 program
The full text of the letter follows.
Dear Fellow Unitholders,
I am writing to provide you with an update on the progress and strategic direction of Belpointe OZ. Over the past several quarters, we have advanced meaningfully across our core priorities of leasing, financing, capital deployment, and value creation—and I want to share with you a summary of where we currently stand and our goals for the year ahead and beyond.
Leasing Momentum
We are pleased with the continued leasing momentum at both Aster & Links, our flagship mixed-use luxury community in downtown Sarasota, Florida (asterandlinks.com), and VIV, our mixed-use development in downtown St. Petersburg, Florida (liveatviv.com).
As of early April 2026, Aster & Links was greater than
VIV, which commenced leasing in October 2025, was greater than
Based on current leasing velocity and market conditions, we continue to expect stabilization of both Aster & Links and VIV to occur between late 2026 and early 2027.
Permanent Financing and Path to Distributions
As is typical in ground-up real estate development, following the capital-intensive construction phase, our objective is to transition our projects as quickly as possible into stabilized revenue-generating assets in order to refinance into lower-cost permanent debt. Once Aster & Links and VIV achieve stabilization, which is expected to occur between late 2026 and early 2027, we currently intend to refinance both properties into long-term, fixed-rate, Fannie Mae or Freddie Mac agency debt. This refinancing would convert our existing variable-rate construction financing into fixed-rate permanent debt, providing stable and predictable cash flow for the portfolio.
With the anticipated transition to permanent financing, we also expect to be in a position to begin providing distributions to unitholders, which we presently anticipate commencing in 2027.
We expect to provide further guidance on distribution amounts and timing as we approach the refinancing. Any distributions would be subject to board approval, compliance with our then-existing loan covenants, and maintenance of adequate reserves.
Development Pipeline Capital Strategy
For properties in our development pipeline, including 1700 Main Street in Sarasota, Florida, and our sites near the University of Connecticut, we are currently exploring the possibility of raising development capital at the property level, as well as opportunities to allow our existing Class A unitholders to participate. As we continue to advance our pipeline, we will evaluate the optimal capital structure for each project, including potential joint venture partnerships, private securities offerings, and other structures designed to align investor interests while preserving value for our existing Class A unitholders.
Nashville Property Disposition
We have entered into a purchase and sale agreement for 900 8th Avenue South, one of our properties in Nashville, Tennessee, at a sale price of approximately
Transition to Steady State Operations
As Aster & Links and VIV reach stabilization and transition to steady-state operations, we anticipate a natural reduction in the variable costs associated with the development and lease-up phases of these assets. We expect the transition from a pure development portfolio to a mix of development-stage and stabilized, cash-flowing assets to result in a more predictable and efficient cost structure. With two stabilized assets generating recurring revenue, we believe that we will be better positioned to manage operating expenses relative to income, potentially resulting in improved operating margins and greater net cash flow over time.
Exit Optionality — Condominium Conversion Strategy
Both Aster & Links and VIV were designed and constructed with exit optionality in mind, including the potential for condominium conversion. We believe that a potential condominium sale exit strategy could increase total profitability relative to a traditional multifamily disposition. By way of example, comparable condominium products in Sarasota, Florida trade at an average of approximately
It is important for Class A unitholders to understand that any potential condominium conversion would be a long-term strategy. There are no guarantees that a sale as a multifamily asset or as a condominium will take place nor would we anticipate pursuing a condominium conversion for at least ten years, and any such decision would be subject to board approval, prevailing market conditions, our then-current portfolio mix, applicable regulatory requirements, and alignment with the broader interests of our unitholders.
Qualified Opportunity Zone 2.0
The Qualified Opportunity Zone program, originally established by the Tax Cuts and Jobs Act of 2017 (“OZ 1.0”), has been expanded and made permanent by the One Big Beautiful Bill Act of 2025 (“OZ 2.0”), with the goal of encouraging new long-term investment in low-income urban and rural communities nationwide.
We believe the permanence of the OZ 2.0 program is a significant positive development for all Qualified Opportunity Funds, including Belpointe OZ. By eliminating the uncertainty that previously existed around the program’s future, OZ 2.0 removes the ambiguity that may have deterred some investors and advisors from making long-term commitments to Qualified Opportunity Funds. We believe this clarity will drive increased investor interest across the opportunity zone space broadly and benefit established funds like ours.
We also believe that Belpointe OZ is uniquely positioned for the OZ 2.0 era. As the only Qualified Opportunity Fund listed on a national securities exchange, we offer our investors an unparalleled level of accessibility, transparency, and liquidity among opportunity zone sponsors, most of which operate through private, illiquid fund structures. Importantly, because our existing structure qualifies under OZ 1.0 and should transition seamlessly under OZ 2.0, we do not expect to create a new fund, restructure our offering, or launch a separate vehicle to participate in the new program. Investors will be able to continue to invest in the same proven platform that has operated continuously since the inception of OZ 1.0, providing continuity, simplicity, and an established track record that we believe sets us apart in the opportunity zone landscape.
The timing of OZ 2.0 also coincides with an important inflection point for our portfolio. Our expected stabilization of Aster & Links and VIV between late 2026 and early 2027, together with our anticipated refinancing in 2027, will mark our transition from a development-only platform to one with two income generating assets. We believe this demonstrated track record will not only strengthen interest from OZ 2.0 investors seeking an established vehicle for their opportunity zone investments but will also attract interest from traditional investors and cash buyers who may see value in any discount to NAV and future income profile of Belpointe OZ.
We strongly encourage investors to evaluate opportunity zone investing in the context of their broader investment and tax strategy and to consult with a qualified tax professional. We also encourage investors to sign up for our email alerts as we continue to bring you updates on OZ 2.0 strategy and implementation.
Closing
In summary, we are pleased with our progress over the last year, remain focused on executing our strategy, which we believe will unlock the full value of our portfolio for our Class A unitholders, and we are excited for what’s ahead. We appreciate your continued confidence and investment in Belpointe OZ, and we look forward to sharing further updates in the quarters ahead.
Sincerely,
Chairman and Chief Executive Officer
Belpointe PREP, LLC
April 8, 2026
About Belpointe OZ
Belpointe OZ is a publicly traded qualified opportunity fund, listed on NYSE American under the symbol “OZ.” To date, Belpointe OZ has over 2,000 units in its development pipeline throughout four cities, representing an approximate total project cost of over
Cautionary Note Regarding Forward-Looking Statements
This press release (this “Press Release”) contains express or implied “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to qualify for the “safe harbor” from liability established by those sections. Forward-looking statements are based on our current beliefs and assumptions, and on information currently available to us, and only speak as of the date of this Press Release. All statements other than statements of historical fact, such as statements containing estimates, projections and other forward-looking information, are forward-looking statements. Forward-looking statements are typically identified by words and phrases such as “anticipate,” “estimate,” “believe,” “continue,” “could,” “intend,” “may,” “plan,” “potential,” “predict,” “seek,” “should,” “will,” “would,” “expect,” “objective,” “projection,” “forecast,” “goal,” “guidance,” “outlook,” “effort,” “target” or the negative of such words and other comparable terminology. However, the absence of these words does not mean that a statement is not forward-looking. Any forward-looking statements expressing an expectation or belief as to future events is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future events and involve risks, uncertainties and other factors beyond our control, including factors described in our filings with the SEC, such as those detailed under the heading “Risk Factors” in our annual report on Form 10-K and quarterly reports on Form 10-Q. We cannot provide you with assurance that any of the assumptions upon which our forward-looking statements are based will prove to be correct. Should one or more risks materialize, or should our underlying assumptions prove incorrect, actual results may vary materially from those expressed or implied in any forward-looking statements, and you are therefore cautioned against placing undue reliance on any forward-looking statements. Except as otherwise required by applicable law, including federal securities laws, we do not intend to update or revise any forward-looking statements as a result of new information, future events, actual results, revised expectations or otherwise We further expressly disclaim any written or oral statements made by a third party regarding the subject matter of this Press Release.
Investor Relations and Media Contact:
Cody H. Laidlaw
Belpointe PREP, LLC
255 Glenville Road Greenwich, Connecticut 06831
IR@belpointeoz.com
203-883-1944
