Stewards Completes $90 Million Acquisition of Envy Pompano Beach, Expanding South Florida Real Assets Portfolio

The acquired property generated approximately $5.3 million in trailing 12-month revenue and includes a 26-slip marina.

Rhea-AI Summary

Stewards (SWRD) completed its $90 million acquisition of Envy Pompano Beach on September 23, 2026.

Stewards acquired all membership interests in entities owning the 214-unit Florida property. The transaction included approximately $42.7 million of contractual rollover equity represented by 14.2 million restricted common shares, alongside a $47.7 million property-level loan. Common shares outstanding increased from 211.4 million immediately before closing to approximately 225.6 million afterward.

Envy was 89.3% occupied and 93.0% leased as of August 26, 2026; trailing 12-month revenue was approximately $5.3 million. Stewards targets approximately 95% occupancy and net operating income above $4.2 million at stabilization, from $1.7 million. Seven million issued shares may be canceled if corresponding cash settlement payments are made.

Positive

• $90 million Envy acquisition completed September 23, 2026

Negative

• Common shares outstanding rose from 211.4 million to approximately 225.6 million
• Escrow may require up to $21 million in cash payments

News Explained

The escrow arrangement may require up to seven monthly cash payments of $3 million, starting October 5, 2026; if all are made, about seven million issued shares are canceled and post-transaction shares outstanding would be about 218.6 million, assuming no other changes.

Market Context

The 11.01% pre-publication gain was recorded at the Sept. 23 close, before this acquisition completi...

Analysis

The 11.01% pre-publication gain was recorded at the Sept. 23 close, before this acquisition completion was announced; it describes the stock's prior position, not a response to this release.

Key Figures

Contractual purchase price: $90.0 million Rollover equity: Approximately $42.7 million Property-level loan: $47.7 million +5 more

Contractual purchase price

$90.0 million

Envy acquisition

Rollover equity

Approximately $42.7 million

Contractual transaction consideration

Property-level loan

$47.7 million

Acquisition financing

Restricted shares issued

14.2 million shares

Consideration issued in the transaction

Common shares outstanding

211.4 million before; approximately 225.6 million after

Immediately before closing versus following the transaction

Potential cash settlement

$21 million

Aggregate amount if all seven scheduled payments are made

Shares potentially canceled

Approximately 7 million shares

If all seven scheduled payments are made

NOI target at stabilization

Over $4.2 million, from $1.7 million

Company operating plan

Previous Acquisition Reports

1 past event · Latest: Sep 14

Same Type 1 event

1. Sep 14

   Proposed acquisition

   24h Move

   -6.1%

   Earlier non-binding proposal included Envy alongside PIXL; this announcement reported Envy's completion.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

noi, contractual rollover equity, restricted shares, escrow

4 terms

noi financial

"NOI of over $4.2 million at stabilization"

Net operating income (NOI) is the total profit a business makes from its core operations, after subtracting expenses directly related to running the business but before accounting for taxes, interest, or investments. It shows how well the company’s main activities generate earnings and helps investors assess its financial health and profitability without the influence of external factors. Think of it as the money a store earns from sales minus the costs to keep it open.

contractual rollover equity financial

"approximately $42.7 million of contractual rollover equity"

An arrangement where sellers in a sale or recapitalization contractually keep part of their ownership by converting some of their sale proceeds into shares of the surviving or new company. It is written into the deal terms so the sellers remain equity holders rather than taking all cash at closing. For investors, it changes who owns the business and how future gains or losses are shared—like a seller keeping a stake instead of cashing out entirely, signaling aligned interests and affecting potential returns and liquidity.

restricted shares financial

"14.2 million restricted shares of Stewards common stock"

Restricted shares are company stock that cannot be sold or transferred immediately because they are subject to legal or contractual limits, such as a required holding period or performance conditions. They matter to investors because these locked-up shares can affect a company’s available stock for trading, future dilution, and insider incentives—imagine a gift that can’t be cashed until certain conditions are met, which changes when and how much supply can suddenly enter the market.

escrow financial

"subject to an escrow and settlement arrangement"

A neutral third party holds money, documents, or assets until both sides in a transaction meet agreed conditions, like a safety deposit box that only opens when everyone fulfills the rules. For investors, escrow reduces risk and increases certainty by ensuring payments or shares are released only when contractual steps are completed, which affects deal timing, legal protection, and the likelihood that a transaction will close as planned.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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214-unit Class A multifamily property expands Stewards’ Real Assets platform with operating plan targeting NOI growth from $1.7 million to $4.2 million at stabilization

FORT LAUDERDALE, Fla., Sept. 24, 2026 (GLOBE NEWSWIRE) -- Stewards, Inc. (Nasdaq: SWRD) (“Stewards” or the “Company”), a diversified financial platform spanning private credit, real assets and technology, announced that on Sept. 23, 2026, it completed its previously disclosed acquisition of Envy Pompano Beach (“Envy”), a 214-unit Class A mixed-use multifamily community in Pompano Beach, Florida.

Stewards acquired 100% of the membership interests in the entities that own Envy for a contractual purchase price of $90.0 million. The transaction included approximately $42.7 million of contractual rollover equity, represented by 14.2 million restricted shares of Stewards common stock, together with a $47.7 million property-level loan from LoanCore Capital Credit REIT LLC.

The shares were issued using a negotiated contractual value of $3.00 per share solely to determine the number of shares issued under the transaction documents. The $3.00 contractual value does not represent the market price of Stewards common stock at closing. The accounting value of the shares and resulting purchase accounting remain subject to final valuation and auditor review.

As of August 26, 2026, Envy was 89.3% physically occupied and 93.0% leased. The property generated approximately $5.3 million in trailing 12-month revenue. Stewards’ operating plan targets approximately 95% occupancy and NOI of over $4.2 million at stabilization. NOI represents property revenue less property operating expenses and is calculated before interest, depreciation, amortization, corporate overhead and income taxes.

The operating plan targets over $2.5mm in NOI growth through a combination of increased residential occupancy, improved collections, reduced concessions and non-revenue units, greater operating efficiency, and additional revenue from the property’s retail and marina components.

“The acquisition of Envy represents another important step in the continued expansion of our Real Assets platform,” said Shaun Quin, Chief Executive Officer of Stewards, Inc. “We are adding a substantial South Florida multifamily asset with a defined operating plan and clear opportunities to improve performance. Our focus now turns to execution, increasing occupancy, strengthening property-level economics and realizing the long-term potential of the asset.”

A Defined Operating Plan

Envy consists of two 11-story buildings completed in 2020 and includes 214 residential units, a 26-slip marina and a three-story community center. The property’s residential, retail and marina components provide multiple opportunities for Stewards to drive improved operating performance through its stabilization plan.

Stewards Realty, led by the recently integrated JOSS Realty Partners team, will oversee execution of the property’s operating plan and oversee the property-management transition. The Stewards Realty team brings an institutional real estate track record spanning over 30 acquisitions, approximately 3.4 million square feet and more than $1.2 billion in transaction value.

In addition to increasing residential occupancy toward approximately 95%, Stewards plans to lease approximately 5,575 square feet of retail space and increase utilization of the property’s 26-slip marina.

The Company's current business plan does not include a condominium conversion.

“Envy gives us several identifiable levers to improve property-level performance without relying on a major renovation program,” said Larry Botel, President of Stewards Realty. “Our immediate focus is on occupancy, collections, concessions and operating discipline, while also capturing additional revenue opportunities from the property's retail and marina components. We believe there is a clear path to improving NOI as we execute the stabilization plan.”

Transaction Structure

The acquisition was financed through the $47.7 million LoanCore property-level loan, representing approximately 53% of the contractual purchase price, together with contractual rollover equity. The transaction was arranged by BayBridge Real Estate Capital, with Jay Miller, Spencer Miller, AJ Felberbaum, Noah Rothman and Jonah Gentleman leading the placement effort on behalf of the Company.

The acquisition resulted in the issuance of 14.2 million restricted shares of Stewards common stock. Based on 211.4 million common shares outstanding immediately prior to closing, Stewards has approximately 225.6 million common shares outstanding following the transaction.

All consideration shares issued in the transaction are initially restricted and none are freely tradable solely as a result of the closing. Seven million of the consideration shares are subject to an escrow and settlement arrangement and may require up to seven monthly cash payments of $3 million, beginning Oct. 5, 2026. One million escrowed shares are subject to cancellation upon each scheduled payment. If all seven payments are made, the aggregate cash settlement will total $21 million, approximately seven million of the initially issued shares will be canceled and Stewards would have approximately 218.6 million common shares outstanding, assuming no other changes to shares outstanding.

“We were deliberate in structuring the transaction around both the operating opportunity and its impact on our capital structure,” said Katy Murless, CFA, Chief Financial Officer of Stewards, Inc. “The transaction increases our common shares outstanding at closing, and we believe it is important to be transparent about that. At the same time, all consideration shares are initially restricted, and the escrow arrangement provides a mechanism under which up to seven million shares may ultimately be canceled as the corresponding settlement obligations are satisfied.”

Additional information regarding the acquisition, financing, escrow arrangement and other transaction terms will be included in a Current Report on Form 8-K to be filed with the SEC.

About Stewards, Inc.

Stewards, Inc. (Nasdaq: SWRD) is a diversified financial platform spanning private credit, real assets and technology. Through Stewards Business Capital, the Company provides revenue-based financing to small and midsized businesses through its origination, underwriting and servicing platform. Stewards’ Real Assets business expands the platform through income-producing real estate, while the Company continues to develop technology and infrastructure designed to improve efficiency and connectivity across its businesses.

About Envy Pompano Beach

Envy Pompano Beach is a Class A mixed-use multifamily property located in Pompano Beach, Florida. Completed in 2020, the property consists of two 11-story buildings with 214 residential units, a 26-slip marina and a three-story community center, along with approximately 5,575 square feet of retail space. The property is located in the South Florida market and combines residential, retail and marina components within a single waterfront community.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable federal securities laws. These statements include, among other things, statements regarding Envy’s expected occupancy, NOI, revenue and operating performance; the Company’s stabilization and operating plans; expected benefits of the acquisition; potential retail and marina revenue; the Company’s ability to fund scheduled settlement payments and the potential cancellation of escrowed shares; and the Company’s broader Real Assets strategy. Forward-looking statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied. These risks include the Company’s ability to execute its operating plan, improve occupancy and collections, reduce concessions and expenses, lease retail and marina space and satisfy its financing and other transaction-related obligations. Additional risks and uncertainties are described in Stewards’ filings with the U.S. Securities and Exchange Commission. Stewards undertakes no obligation to update forward-looking statements except as required by law.

Investor Relations
Stewards, Inc.
IR@Stewards.com
Stewards.com

Media Contact
Scott McGowan
Chief Marketing Officer
Stewards, Inc.
IR@Stewards.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did Stewards (SWRD) pay for Envy Pompano Beach, and how was the acquisition financed?

Stewards acquired the entities that own Envy for a contractual purchase price of $90.0 million. The transaction included approximately $42.7 million of contractual rollover equity, represented by 14.2 million restricted common shares, together with a $47.7 million property-level loan from LoanCore Capital Credit REIT.

What occupancy and net operating income does Stewards (SWRD) target for Envy Pompano Beach?

Stewards targets approximately 95% occupancy and net operating income of over $4.2 million at stabilization, from $1.7 million. Net operating income is property revenue less property operating expenses, before interest, depreciation, amortization, corporate overhead and income taxes.

How does the Envy Pompano Beach share escrow arrangement affect Stewards (SWRD)?

Seven million consideration shares are subject to an arrangement that may require up to seven monthly cash payments of $3 million, beginning October 5, 2026. One million escrowed shares are subject to cancellation upon each scheduled payment. If all seven payments are made, cash settlement will total $21 million and Stewards would have approximately 218.6 million shares outstanding, assuming no other changes.

Does the $3.00 share value in Stewards' Envy Pompano Beach acquisition reflect its closing market price?

No. The $3.00-per-share negotiated contractual value was used solely to determine the number of shares issued under the transaction documents; it does not represent the closing market price. The accounting value of the shares and resulting purchase accounting remain subject to final valuation and auditor review.

Does Stewards (SWRD) plan to convert Envy Pompano Beach into condominiums?

No. Stewards' current business plan does not include a condominium conversion. The company plans to lease approximately 5,575 square feet of retail space and increase use of the property's 26-slip marina as part of its operating plan.