BALANCE SHEET (UNAUDITED) [1]
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Clark
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Goldfinger
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Lois
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Pumpkin
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Sambino
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ASSETS
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Current assets:
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Cash
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$
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9,981
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$
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30,983
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$
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12,648
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$
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21,732
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$
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11,855
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Other receivables
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-
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-
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-
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-
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-
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Prepaid expenses
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-
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-
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-
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-
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-
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Deposits
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5,273
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5,819
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6,601
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5,803
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6,736
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Property and equipment, net
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311,133
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532,892
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316,120
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320,304
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293,766
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Total assets
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$
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326,387
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$
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569,693
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$
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335,370
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$
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347,838
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$
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312,357
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LIABILITIES
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Current liabilities:
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Accrued expenses
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$
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5,675
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$
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3,599
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$
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5,675
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$
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2,329
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$
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1,577
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Accounts payable
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-
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-
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-
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-
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-
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Due to (from) related parties
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3,388
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4,756
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3,986
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5,709
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4,955
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Tenant deposits
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2,095
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2,495
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2,695
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2,545
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2,645
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Note payable, related party
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-
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-
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-
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-
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-
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Mortgage payables
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-
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-
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-
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-
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-
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Total liabilities
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$
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11,159
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$
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10,850
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$
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12,356
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$
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10,582
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$
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9,177
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MEMBERS' EQUITY (DEFICIT)
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Members' capital
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345,984
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584,076
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335,348
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344,532
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318,257
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Accumulated deficit
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(30,756)
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(25,233)
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(12,334)
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(7,276)
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(15,078)
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Total members' equity (deficit)
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$
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315,229
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$
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558,843
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$
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323,013
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$
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337,256
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$
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303,179
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Total liabilities and members' equity (deficit)
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$
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326,387
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$
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569,693
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$
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335,370
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$
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347,838
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$
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312,357
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NET FAIR VALUE OF ASSETS
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Net asset value with members' equity (without fair value adjustments)
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315,229
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558,843
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323,013
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337,256
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303,179
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Net adjustments to fair value
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62,485
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42,488
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54,184
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51,505
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46,242
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TOTAL NET ASSETS
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$
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377,714
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$
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601,331
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$
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377,197
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$
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388,762
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$
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349,421
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NET ASSET VALUE PER INTEREST
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$
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9.88
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$
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9.40
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$
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9.87
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$
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10.01
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$
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9.74
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[1]
Estimated Balance Sheet as of March 31, 2026.
As
described in the section "Description of the Securities Being Offered—Valuation
Policies," in the Offering Circular, our operating agreement provides that,
following the initial period, at the end of each quarterly period our Manager's
internal accountants and asset management team will calculate our NAV using a
process that reflects, among other matters:
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●
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an estimated
value of our investments, as determined by the Manager's asset management
team, including related liabilities, based upon (a) information from publicly
available sources about (i) market rents, comparable sales information and
interest rates and (ii) with respect to debt, default rates and discount
rates, and (b) in certain instances reports of the underlying real estate
provided by an independent valuation expert or automated valuation models;
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●
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the price of
liquid assets for which third party market quotes are available;
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●
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accruals of our
periodic distributions on our common shares; and
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●
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estimated
accruals of the revenues, fees and expenses where we will (a) amortize the
brokerage fee, offering expenses and sourcing fee over five years and (b)
include accrued fees and operating expenses, accrued distributions payable,
accrued management fees and any inter-company loans extended to the Company
by our Manager.
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Such determinations may
include subjective judgments by the Manager regarding the applicability of
certain inputs to market rents and comparable sales information. We do not
utilize a capitalization rate approach in determining NAV, because given the
nature of our investments in primary residences, we do not believe that the
value of a many of our assets can be determined based solely on the business
activities as the resale value of such asset will be decided independently of
the success of such business activities.
Note, however, that the
determination of our NAV is not based on, nor intended to comply with, fair
value standards under U.S. GAAP, and such NAV may not be indicative of the
price that we would receive for our assets at current market conditions. As a result,
the calculation of our NAV may not reflect the precise amount that might be
paid for your interests in a market transaction, and any potential disparity in
our NAV may be in favor of either holders who redeem their interests, or
holders who repurchase such interests, or existing holders. In instances where
we determine that an appraisal of a property is necessary, including, but not
limited to, instances where third party market values for comparable properties
are either nonexistent or extremely inconsistent, we will engage an appraiser
that has expertise in appraising residential real estate assets, to act as our
independent valuation expert. The independent valuation expert is not
responsible for, nor for preparing, our NAV per interest.
As there is no market value
for the interests of any series as they are not expected to be listed or traded
on any stock exchange (though periodic trading may become available pursuant to
our arrangement with North Capital Private Securities ("NCPS"), which is
intended to facilitate secondary transactions in interests on an alternative
trading system owned and operated by NCPS, as described in the section
"Description of Business—Liquidity Platform" in the Offering Circular), our
goal in setting NAV on a quarterly basis is to provide a reasonable estimate of
the value of our interests on a quarterly basis. However, each series property
consists of residential real estate and, as with any residential real estate
valuation protocol, the conclusions reached by the Manager's asset management
team or internal accountants, as the case may be, are based on a number of
judgments, assumptions and opinions about future events that may or may not
prove to be correct. The use of different judgments, assumptions or opinions
would likely result in different estimates of the value of our investments. In
addition, for any given period, our published NAV may not fully reflect certain
material events, to the extent that the financial impact of such events on our
portfolio is not immediately quantifiable.
Safe
Harbor Statement
The
information contained in this Current Report on Form 1-U includes some
statements that are not historical and that are considered "forward-looking
statements." Such forward-looking statements include, but are not
limited to, statements regarding our development plans for our business; our
strategies and business outlook; anticipated development of our company, the
manager and the Arrived platform (defined in the Offering Circular); and
various other matters (including contingent liabilities and obligations and
changes in accounting policies, standards and
interpretations). These forward-looking statements express the
manager's expectations, hopes, beliefs, and intentions regarding the
future. In addition, without limiting the foregoing, any statements
that refer to projections, forecasts or other characterizations of future
events or circumstances, including any underlying assumptions, are
forward-looking statements. The words "anticipates," "believes,"
"continue," "could," "estimates," "expects," "intends," "may," "might,"
"plans," "possible," "potential," "predicts," "projects," "seeks," "should,"
"will," "would" and similar expressions and variations, or comparable
terminology, or the negatives of any of the foregoing, may identify
forward-looking statements, but the absence of these words does not mean that a
statement is not forward-looking.
The
forward-looking statements contained in this Current Report on Form 1-U are
based on current expectations and beliefs concerning future developments that
are difficult to predict. Neither our company nor the manager can
guarantee future performance, or that future developments affecting our
company, the manager or the Arrived platform will be as currently
anticipated. These forward-looking statements involve a number of
risks, uncertainties or other assumptions that may cause actual results or
performance to be materially different from those expressed or implied by these
forward-looking statements.
All
forward-looking statements attributable to us are expressly qualified in their
entirety by these risks and uncertainties. These risks and
uncertainties, along with others, are also described in the Offering Circular
under the headings "Summary – Summary Risk Factors" and "Risk Factors." Should
one or more of these risks or uncertainties materialize, or should any of the
parties' assumptions prove incorrect, actual results may vary in material
respects from those projected in these forward-looking statements. You
should not place undue reliance on any forward-looking statements and should
not make an investment decision based solely on these forward-looking
statements. We undertake no obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, except as may be required under applicable securities
laws.
SIGNATURES
Pursuant
to the requirements of Regulation A, the issuer has duly caused this Current
Report on Form 1-U to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of New York, State of New York, on
April 28, 2026.
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ARRIVED HOMES 5, LLC
|
|
|
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By:
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Arrived Fund Manager, LLC
|
|
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Its:
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Managing Member
|
|
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By:
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/s/ Ryan Frazier
|
|
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Name: Ryan
Frazier
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Title:
Chief Executive Officer
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