Ark7 Properties Plus H1 2026 loss widens to $64.4K
Series property-management reserves totaled $68,122 as of June 30, 2026.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Ark7 Properties Plus LLC (AKPPS), an 18-series investment vehicle for fractional ownership of rental properties, reported results for the six months ended June 30, 2026. Consolidated revenue was $249,550, compared with $253,375 a year earlier; operating income was $25,478 versus $30,824, and net loss was $64,389 versus $31,876. Management attributed the net result mainly to higher interest expense following the refinancing of certain mortgage loans and higher property taxes, partly offset by lower general and administrative expenses.
Operating activities used $434,784 of cash, compared with $296,856 provided in the prior-year period, while financing activities provided $862,075. As of June 30, 2026, cash and cash equivalents were $584,734, total assets were $7,059,834, and total liabilities were $2,875,345. Related-party receivables of $1,674,481 were due from the Parent Company, were non-interest bearing and were due on demand.
Management said operating losses in prior years had required ongoing financial support, but believes its plans and resources support continued operations. The financial statements were prepared on a going-concern basis.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- None.
Negative
- Moderate pointNet loss increased to $64,389 from $31,876 year over year.
- Moderate pointOperating cash flow shifted to $434,784 used, versus $296,856 provided.
Filing Explained
Mortgage debt is higher: noncurrent mortgage debt was
Key Figures
Key Terms
property management reserves financial
Free Cash Flows financial
going concern basis financial
straight-line basis financial
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was AKPPS's net loss in the first half of 2026?
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 1-SA
SEMIANNUAL REPORT PURSUANT TO REGULATION A
For the fiscal semiannual period ended
June 30, 2026
ARK7 PROPERTIES PLUS LLC
(A DELAWARE SERIES LIMITED LIABILITY COMPANY)
(Exact name of issuer as specified in its charter)
Delaware | 88-1359905 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
1 Ferry Building, Ste 201
San Francisco, CA 94111
(Full mailing address of principal executive offices)
415-275-0701
(Issuer's telephone number, including area code)
Series #WGI3Z, Series #0XYT6, Series #JTDXY, Series #ZIE3T, Series #NHMOP, Series #QGXF0, Series #SOV9W, Series #WRA7O, Series #FTWDS, Series #P7FJ5, Series #RPFUV, Series #DIVTU, Series #ORHOF, Series #ZAUH4, Series #OJXLW, Series #EYPIR, Series #5VCTK, and Series #ET8BV
(Title of each class of securities issued pursuant to Regulation A)
TABLE OF CONTENTS
ITEM 1. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION | 1 | |
ITEM 2. OTHER INFORMATION | 1 | |
ITEM 3. FINANCIAL STATEMENTS | 7 | |
EXHIBIT INDEX | 26 |
I
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
THE INFORMATION CONTAINED IN THIS REPORT MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY'S MANAGEMENT. WHEN USED IN THIS REPORT, THE WORDS "ESTIMATE," "PROJECT," "BELIEVE," "ANTICIPATE," "INTEND," "EXPECT" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT'S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY'S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.
In this Annual Report, "we," "us," "our" or "our company", shall refer to Ark7 Properties Plus LLC. All of the series of our company may collectively be referred to in this Annual Report as the "series" and each, individually, as a "series." The membership interests of all series described above may collectively be referred to in this Annual Report as the "shares" and each, individually, as a "share". Ark7 Inc., a Delaware corporation ("Ark7") will serve as the asset manager responsible for managing each Series' Underlying Asset (the "Asset Manager") as described in the Asset Management Agreement between Ark7 Inc. and each series of Ark7 Properties Plus LLC. Ark7 will serve as the Managing Member responsible for the day-to-day management of the company and each registered series.
II
ITEM 1. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
You should read the following discussion and analysis of the financial statements and financial condition of Ark7 Properties Plus LLC and results of its operations together with: (i) its financial statements and related notes appearing at the end of this Offering Circular and (ii) the pro forma consolidated financial statements appearing at the end of this Offering Circular. This discussion contains forward-looking statements reflecting the company's current expectations that involve risks and uncertainties. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors, including those discussed in the section entitled "Risk Factors" and elsewhere in this Offering Circular.
Overview
Ark7 Properties Plus LLC was formed on March 17, 2022 ("Inception") in the State of Delaware. Ark7 Properties Plus LLC is an investment vehicle which intends to enable investors to own fractional ownership of a specific real estate property. This lowers the cost-of-entry and minimizes the time commitment for real estate investing. An investment in the company entitles the investor to the potential economic benefits normally associated with direct property ownership, while requiring no investor involvement in asset or property management.
Ark7 is the company's Managing Member. As the company's Managing Member, it will manage the company's day-to-day operations. Ark7 is also the Managing Member of each Series and the Asset Manager of each Series and will manage each property that a Series acquires.
Emerging Growth Company
If the company becomes subject to the ongoing reporting requirements of the Exchange Act, we will qualify as an "emerging growth company" under the JOBS Act. As a result, we will be permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so long as we are an emerging growth company, we will not be required to:
- have an auditor report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;
- comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis);
- submit certain executive compensation matters to shareholder advisory votes, such as "say-on-pay" and "say-on-frequency;" and
- disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the CEO's compensation to median employee compensation.
In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.
We will remain an "emerging growth company" for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed $1.07 billion, (ii) the date that we become a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our interests that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter or (iii) the date on which we have issued more than $1.07 billion in non-convertible debt during the preceding three year period.
1
Operating Results - Six Months Ended June 30, 2026 and 2025
Revenues are generated at the series level. For the period ended June 30, 2026 and 2025, the Series aggregated together generated $249,550 and $253,375 in revenues, respectively.
These revenues were generated by rental income across each Series as set out below:
Series | Gross Rental Income as of June 30, 2026 | Gross Rental Income as of June 30, 2025 | ||
#WGI3Z | $ 3,347 | $ 10,260 | ||
#0XYT6 | $ 18,741 | $ 14,414 | ||
#JTDXY | $ 19,086 | $ 20,038 | ||
#ZIE3T | $ 22,440 | $ 21,052 | ||
#NHMOP | $ 12,153 | $ 13,512 | ||
#SOV9W | $ 11,250 | $ 6,355 | ||
#WRA7O | $ 18,270 | $ 21,240 | ||
#QGXF0 | $ 24,077 | $ 24,040 | ||
#FTWDS | $ 9,600 | $ 9,600 | ||
#P7FJ5 | $ 9,000 | $ 9,000 | ||
#RPFUV | $ 11,700 | $ 10,631 | ||
#ORHOF | $ 13,904 | $ 19,064 | ||
#DIVTU | $ 16,224 | $ 24,060 | ||
#OJXLW | $ 12,122 | $ 13,634 | ||
#ZAUH4 | $ 11,400 | $ 7,437 | ||
#EYPIR | $ 7,957 | $ 2,949 | ||
#5VCTK | $ 14,016 | $ 9,217 | ||
#ET8BV | $ 14,265 | $ 16,871 |
Over this same period, each series incurred expenses from operations of the series, as well as professional expenses related to undertaking the Series offering. Expenses from operations of the properties, such as utilities, repairs and maintenance, insurance, and property tax amounted to:
Series | Expenses Relating to Operating of the Property as of June 30, 2026 | Expenses Relating to Operating of the Property as of June 30, 2025 | ||
#WGI3Z | $ 5,325 | $ 1,421 | ||
#0XYT6 | $ 6,233 | $ 6,008 | ||
#JTDXY | $ 9,056 | $ 7,738 | ||
#ZIE3T | $ 8,925 | $ 6,311 | ||
#NHMOP | $ 6,264 | $ 4,254 | ||
#SOV9W | $ 5,545 | $ 6,116 | ||
#WRA7O | $ 12,221 | $ 12,461 | ||
#QGXF0 | $ 9,621 | $ 8,491 | ||
#FTWDS | $ 2,980 | $ 3,061 | ||
#P7FJ5 | $ 2,778 | $ 2,587 | ||
#RPFUV | $ 6,907 | $ 7,586 | ||
#ORHOF | $ 8,014 | $ 5,847 | ||
#DIVTU | $ 11,419 | $ 7,587 | ||
#OJXLW | $ 2,944 | $ 2,747 | ||
#ZAUH4 | $ 3,257 | $ 5,623 | ||
#EYPIR | $ 2,753 | $ 3,535 | ||
#5VCTK | $ 5,234 | $ 5,195 | ||
#ET8BV | $ 6,445 | $ 7,281 |
When including all expenses, such as legal and professional fees, general and administrative expenses, depreciation, and interest expense to Ark7, against revenues during this period, resulted in net income of the following:
Series | Net Income (Loss) as of June 30, 2026 | Net Income (Loss) as of June 30, 2025 | ||
#WGI3Z | $ (6,792) | $ 2,922 | ||
#0XYT6 | $ 4,109 | $ 1,216 | ||
#JTDXY | $ 2,875 | $ 6,797 | ||
#ZIE3T | $ 6,580 | $ 9,152 | ||
#NHMOP | $ 2,583 | $ 6,707 | ||
#SOV9W | $ 1,874 | $ (4,164) | ||
#WRA7O | $ (1,567) | $ 1,149 | ||
#QGXF0 | $ 9,175 | $ 10,770 | ||
#FTWDS | $ 3,777 | $ 3,391 | ||
#P7FJ5 | $ 3,438 | $ 2,668 | ||
#RPFUV | $ 2,130 | $ (804) | ||
#ORHOF | $ 2,033 | $ 10,025 | ||
#DIVTU | $ 301 | $ 12,650 | ||
#OJXLW | $ 4,818 | $ 6,949 | ||
#ZAUH4 | $ 2,555 | $ (1,820) | ||
#EYPIR | $ 1,219 | $ (3,837) | ||
#5VCTK | $ 4,835 | $ (7) | ||
#ET8BV | $ 4,839 | $ (16,887) |
2
Liquidity and Capital Resources
Each Series has allocated funds to establish property management reserves. These funds are designed to mitigate future financial uncertainties associated with property-related expenses, including maintenance, repairs, enhancements, or unanticipated costs. The aim is to maintain the properties in satisfactory condition, prevent financial strain, and preclude the necessity for immediate supplementary contributions from investors or owners due to substantial, unexpected expenses. As of June 30, 2026, the balance of the property management reserve by Series was:
Series | Cash and Property Management Reserve as of June 30, 2026 | |
#WGI3Z | $ 1,720 | |
#0XYT6 | $ 690 | |
#JTDXY | $ (3,366) | |
#ZIE3T | $ 6,236 | |
#NHMOP | $ 3,963 | |
#SOV9W | $ 2,286 | |
#WRA7O | $ 9,516 | |
#QGXF0 | $ 6,733 | |
#FTWDS | $ (218) | |
#P7FJ5 | $ 3,296 | |
#RPFUV | $ 0 | |
#ORHOF | $ 5,786 | |
#DIVTU | $ 6,322 | |
#OJXLW | $ 2,699 | |
#ZAUH4 | $ 2,447 | |
#EYPIR | $ 4,028 | |
#5VCTK | $ 7,146 | |
#ET8BV | $ 8,838 |
An additional $0 of cash is held by Ark7 Properties Plus LLC that is not assigned to a specific series.
3
Down Payment Loan Payables
The Parent Company provide initial funding required for property acquisitions and structured this as a down payment loan to APPL and its series. Borrowers are authorized to use the Parent Company's bank checking account for property acquisition purpose.
Series #0XYT6
On July 1, 2022, the APPL - Series #0XYT6 executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APPL - Series #0XYT6 borrowed $378,478 at 9% interest with a maturity of June 30, 2023. The loan was paid off in 2023, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #5VCTK
On May 20, 2024, the APPL - Series #5VCTK executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APPL - Series #5VCTK borrowed $240,000 at 10% interest with a maturity of May 19, 2025. The loan was paid off in 2024, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #DIVTU
On December 1, 2023, the APPL - Series #DIVTU executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APPL - Series #DIVTU borrowed $222,660 at 10% interest with a maturity of November 30, 2024. The loan was paid off in 2024, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #ET8BV
On May 24, 2024, the APPL - Series #ET8BV executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APPL - Series #ET8BV borrowed $200,000 at 10% interest with a maturity of May 23, 2025. The loan was paid off in 2024, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #EYPIR
On May 20, 2024, the APPL - Series #EYPIR executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APPL - Series #EYPIR borrowed $210,000 at 10% interest with a maturity of May 19, 2025. The loan was paid off in 2024, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #FTWDS
On September 1, 2022, the APPL - Series #FTWDS executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APPL - Series #FTWDS borrowed $228,015 at 9% interest with a maturity of August 31, 2023. The loan was paid off in 2023, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #JTDXY
On August 1, 2022, the APPL - Series #JTDXY executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APPL - Series #JTDXY borrowed $356,203 at 9% interest with a maturity of July 31, 2024. The loan was paid off in 2023, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #NHMOP
On October 1, 2023, the APPL - Series #NHMOP executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APPL - Series #NHMOP borrowed $165,100 at 10% interest with a maturity of September 30, 2024. The loan was paid off in 2024, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #OJXLW
On April 18, 2024, the APPL - Series #OJXLW executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APPL - Series #OJXLW borrowed $230,000 at 10% interest with a maturity of April 17, 2025. The loan was paid off in 2024, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #ORHOF
On November 1, 2023, the APPL - Series #ORHOF executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APPL - Series #ORHOF borrowed $175,587 at 10% interest with a maturity of October 31, 2024. The loan was paid off in 2024, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #P7FJ5
On September 1, 2022, the APPL - Series #P7FJ5 executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APPL - Series #P7FJ5 borrowed $227,985 at 9% interest with a maturity of August 31, 2024. The loan was paid off in 2023, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #QGXF0
On August 1, 2023, the APPL - Series #QGXF0 executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APPL - Series #QGXF0 borrowed $344,051 at 10% interest with a maturity of July 31, 2024. The loan was paid off in 2023, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #RPFUV
On October 18, 2023, the APPL - Series #RPFUV executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APPL - Series #RPFUV borrowed $250,963 at 10% interest with a maturity of October 17, 2024. The loan was paid off in 2023, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #SOV9W
On August 1, 2023, the APPL - Series #SOV9W executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APPL - Series #SOV9W borrowed $212,919 at 10% interest with a maturity of July 31, 2024. The loan was paid off in 2023, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #WGI3Z
On April 5, 2022, the APPL - Series #WGI3Z executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APPL - Series #WGI3Z borrowed $299,120 at 9% interest with a maturity of April 4, 2023. The loan was paid off in 2022, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #WRA7O
On October 1, 2022, the APPL - Series #WRA7O executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APPL - Series #WRA7O borrowed $542,610 at 9% interest with a maturity of September 30, 2023. The loan was paid off in 2023, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #ZAUH4
On May 20, 2024, the APPL - Series #ZAUH4 executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APPL - Series #ZAUH4 borrowed $210,000 at 10% interest with a maturity of May 19, 2025. The loan was paid off in 2024, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
Series #ZIE3T
On August 1, 2022, the APPL - Series #ZIE3T executed a Loan Agreement from the Parent Company. According to the Loan Agreement, the APPL - Series #ZIE3T borrowed $360,205 at 9% interest with a maturity of July 31, 2024. The loan was paid off in 2023, and the outstanding balance of the Loan Payable - Down Payment Loan as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, and is included in related party payables on the accompanying balance sheet. The interest expenses incurred in the six months ended at June 30, 2026 and 2025 was $0 and $0, respectively.
4
Trend Information
Our results of operations are affected by a variety of factors, including conditions in the financial markets and the economic and political environments, particularly in the United States. Global economic conditions, including political environments, financial market performance, interest rates, credit spreads or other conditions beyond our control are unpredictable and could negatively affect the value of the series properties, our ability to acquire and manage single family rentals and the success of our current and future offerings. In addition to the aforementioned macroeconomic trends, we believe the following factors will influence our future performance:
- Recent increases in interest rates may have a negative effect on the demand for our offerings due to the attractiveness of alternative investments.
- The continuing increase in prices in the United States housing market may result in difficulties in sourcing properties and meeting demand for our offerings.
- Continued increases in remote work arrangements may lead to greater rental activity in our target markets.
5
ITEM 2. OTHER INFORMATION
None.
6
ITEM 3. FINANCIAL STATEMENTS
ARK7 PROPERTIES PLUS LLC
UNAUDITED CONSOLIDATED AND CONSOLIDATING FINANCIAL STATEMENTS
For the six months ended June 30, 2026 and 2025
F-1
Table of Contents
Consolidated Balance Sheet as of June 30, 2026 and December 31, 2025 | F-3 | |
Consolidated Statement of Income for the six months ended June 30, 2026 and 2025 | F-4 | |
Consolidated Statement of Members' Equity for the six months ended June 30, 2026 and 2025 | F-5 | |
Consolidated Statement of Cash Flows for the six months ended June 30, 2026 and 2025 | F-6 | |
Consolidated and consolidating Balance Sheet as of June 30, 2026 | F-7 | |
Consolidated and consolidating Statement of Income for the six months ended June 30, 2026 | F-8 | |
Consolidated and consolidating Statement of Members' Equity for the six months ended June 30, 2026 | F-9 | |
Consolidated and consolidating Statement of Cash Flows for the six months ended June 30, 2026 | F-10 | |
Notes to the Consolidated and consolidating Financial Statements | F-11 |
F-2
Ark7 Properties Plus LLC
Consolidated Balance Sheet
As of June 30, 2026 and December 31, 2025
Description | June 30, 2026 | December 31, 2025 | ||
Assets | ||||
Current Assets | ||||
Cash and cash equivalents | $ 584,734 | $ 204,039 | ||
Receivables | 2,540 | 2,900 | ||
Related party receivables | 1,674,481 | 1,263,181 | ||
Prepaid expenses | 107,651 | 42,185 | ||
Total Current Assets | 2,369,406 | 1,512,305 | ||
Noncurrent Assets | ||||
Property, plant, and equipment | ||||
Property, plant, and equipment - Cost | 5,188,110 | 5,141,515 | ||
Property, plant, and equipment - Accumulated Depreciation | (497,682) | (415,848) | ||
Total Property, plant, and equipment | 4,690,428 | 4,725,666 | ||
Total Noncurrent Assets | 4,690,428 | 4,725,666 | ||
Total Assets | 7,059,834 | 6,237,971 | ||
| ||||
Liabilities & Members' Equity | ||||
Liabilities | ||||
Current Liabilities | ||||
Accounts payable and accrued liabilities | 99,696 | 34,308 | ||
Current portion of mortgage payable | 27,177 | 23,809 | ||
Related party payables | (0) | (0) | ||
Other liabilities, current | 14,973 | 18,264 | ||
Total Current Liabilities | 141,845 | 76,382 | ||
Noncurrent Liabilities | ||||
Mortgage payable | 2,733,499 | 1,787,549 | ||
Total Noncurrent Liabilities | 2,733,499 | 1,787,549 | ||
Total Liabilities | 2,875,345 | 1,863,930 | ||
| ||||
Member's Equity | ||||
Equity | ||||
Members' Equity | 5,077,313 | 5,202,475 | ||
Retained Earnings (Accumulated Deficit) | (892,823) | (828,435) | ||
Total Equity | 4,184,489 | 4,374,040 | ||
Total Member's Equity | 4,184,489 | 4,374,040 | ||
Total Liabilities & Members' Equity | $ 7,059,834 | $ 6,237,971 |
F-3
Ark7 Properties Plus LLC
Consolidated Statement of Income
For the six months ended June 30, 2026 and 2025
Description | June 30, 2026 | June 30, 2025 | ||
Net Income (Loss) | ||||
Gross Profit (Loss) | ||||
Rental Income | $ 248,840 | $ 252,278 | ||
Other rental fees | 710 | 1,096 | ||
Total Gross Profit (Loss) | 249,550 | 253,375 | ||
Operating Expenses | ||||
General and administrative expenses | 80,380 | 97,114 | ||
Depreciation and amortization expenses | 83,265 | 78,240 | ||
Property tax and state fee | 60,427 | 47,196 | ||
Total Operating Expenses | 224,072 | 222,551 | ||
Operating Income (Loss) | 25,478 | 30,824 | ||
Other Income (Loss) | ||||
Interest expense | (89,867) | (62,700) | ||
Interest expense, related party | - | - | ||
Other income (expense) | - | - | ||
Total Other Income (Loss) | (89,867) | (62,700) | ||
Total Net Income (Loss) | $ (64,389) | $ (31,876) |
F-4
Ark7 Properties Plus LLC
Consolidated Statement of Members' Equity
For the six months ended June 30, 2026 and 2025
Description | June 30, 2026 | June 30, 2025 | ||
Balance at the beginning of the period | $ 4,374,040 | $ 4,830,105 | ||
Equity Contribution | 17,024 | (26,772) | ||
Net Income (Loss) | (64,389) | (31,876) | ||
Distribution | (142,187) | (142,725) | ||
Balance at the end of the period | $ 4,184,489 | $ 4,628,731 |
F-5
Ark7 Properties Plus LLC
Consolidated Statement of Cash Flows
For the six months ended June 30, 2026 and 2025
Description | June 30, 2026 | June 30, 2025 | ||
Cash Flows From Operating Activities | ||||
Net Income (Loss) | $ (64,389) | $ (31,876) | ||
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities | ||||
Depreciation and amortization | 83,265 | 79,155 | ||
(Increase) decrease in operating assets, net of effects of businesses acquired | ||||
Accounts receivable | 360 | 1,647,018 | ||
Related party receivables | ||||
Prepaid expenses | (65,466) | (74,952) | ||
Increase (decrease) in operating liabilities, net of effects of businesses acquired | ||||
Accounts payable and accrued expenses | 63,054 | (1,585,220) | ||
Related party payables | (448,316) | 259,888 | ||
Other liabilities | (3,291) | 2,845 | ||
Net Cash Provided by (Used in) Operating Activities | (434,784) | 296,856 | ||
Cash Flows from Investing Activities | ||||
Purchase of property, plant, and equipment | (46,596) | (91,640) | ||
Cash Flows from Financing Activities | ||||
Proceeds from issuance of debt | 987,238 | |||
Repayment of related party debt | (149,784) | |||
Proceeds from private offerings | 17,024 | (26,772) | ||
Distributions to partners | (142,187) | (142,725) | ||
Net Cash Provided by (Used in) Financing Activities | 862,075 | (326,153) | ||
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | 380,696 | 28,847 | ||
Cash, Cash Equivalents, and Restricted Cash at the beginning of the period | 204,039 | 37,354 | ||
Cash, Cash Equivalents, and Restricted Cash at the end of the period | 584,734 | 66,201 | ||
| ||||
Supplemental Cash Flow information | ||||
Cash Paid During the Year for | ||||
Interest | $ 89,867 | $ 61,785 |
F-6
Ark7 Properties Plus LLC
Consolidated and consolidating Balance Sheet
As of June 30, 2026
Description | Ark7 Properties Plus LLC | Ark7 Properties Plus LLC - Series #0XYT6 | Ark7 Properties Plus LLC - Series #5VCTK | Ark7 Properties Plus LLC - Series #DIVTU | Ark7 Properties Plus LLC - Series #ET8BV | Ark7 Properties Plus LLC - Series #EYPIR | Ark7 Properties Plus LLC - Series #FTWDS | Ark7 Properties Plus LLC - Series #JTDXY | Ark7 Properties Plus LLC - Series #NHMOP | Ark7 Properties Plus LLC - Series #OJXLW | ||||||||||
Assets | ||||||||||||||||||||
Current Assets | ||||||||||||||||||||
Cash and cash equivalents | $ 516,613 | $ 690 | $ 7,146 | $ 6,322 | $ 8,838 | $ 4,028 | $ (218) | $ (3,366) | $ 3,963 | $ 2,699 | ||||||||||
Receivables | $ 2,540 | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | ||||||||||
Related party receivables | (754,926) | 165,228 | 118,005 | 104,628 | 106,949 | 78,994 | 140,214 | 192,087 | 102,952 | 135,797 | ||||||||||
Prepaid expenses | - | 7,918 | 7,619 | 6,903 | 6,719 | 3,762 | 2,739 | 8,954 | 4,607 | 4,444 | ||||||||||
Total Current Assets | (235,773) | 173,836 | 132,770 | 117,853 | 122,506 | 86,784 | 142,734 | 197,675 | 111,522 | 142,940 | ||||||||||
Noncurrent Assets | ||||||||||||||||||||
Property, plant, and equipment | ||||||||||||||||||||
Property, plant, and equipment - Cost | 100 | 434,148 | 260,391 | 256,708 | 239,254 | 243,242 | 225,335 | 384,971 | 174,018 | 222,976 | ||||||||||
Property, plant, and equipment - Accumulated Depreciation | - | (51,787) | (16,360) | (18,932) | (14,991) | (14,107) | (27,231) | (45,282) | (13,807) | (14,149) | ||||||||||
Total Property, plant, and equipment | 100 | 382,361 | 244,031 | 237,776 | 224,263 | 229,134 | 198,104 | 339,689 | 160,211 | 208,827 | ||||||||||
Total Noncurrent Assets | 100 | 382,361 | 244,031 | 237,776 | 224,263 | 229,134 | 198,104 | 339,689 | 160,211 | 208,827 | ||||||||||
Total Assets | (235,673) | 556,198 | 376,801 | 355,629 | 346,769 | 315,919 | 340,838 | 537,364 | 271,733 | 351,767 | ||||||||||
| ||||||||||||||||||||
Liabilities & Members' Equity | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Current Liabilities | ||||||||||||||||||||
Accounts payable and accrued liabilities | 99,696 | - | - | - | - | - | - | - | - | - | ||||||||||
Current portion of mortgage payable | - | 2,132 | 1,536 | 1,446 | - | 1,439 | 1,571 | 2,162 | - | 1,667 | ||||||||||
Related party payables | (0) | - | - | - | - | - | - | - | - | - | ||||||||||
Other liabilities, current | - | 2,000 | - | 0 | - | - | 1,450 | 1,800 | - | - | ||||||||||
Total Current Liabilities | 99,696 | 4,132 | 1,536 | 1,446 | - | 1,439 | 3,021 | 3,962 | - | 1,667 | ||||||||||
Noncurrent Liabilities | ||||||||||||||||||||
Mortgage payable | - | 197,540 | 153,447 | 116,419 | 120,627 | 113,220 | 144,572 | 200,189 | 101,241 | 133,976 | ||||||||||
Total Noncurrent Liabilities | - | 197,540 | 153,447 | 116,419 | 120,627 | 113,220 | 144,572 | 200,189 | 101,241 | 133,976 | ||||||||||
Total Liabilities | 99,696 | 201,672 | 154,983 | 117,865 | 120,627 | 114,659 | 147,593 | 204,151 | 101,241 | 135,643 | ||||||||||
| ||||||||||||||||||||
Member's Equity | ||||||||||||||||||||
Equity | ||||||||||||||||||||
Members' Equity | - | 384,314 | 250,688 | 271,368 | 248,560 | 239,545 | 216,006 | 361,974 | 189,404 | 229,468 | ||||||||||
Retained Earnings (Accumulated Deficit) | (335,369) | (29,788) | (28,870) | (33,604) | (22,419) | (38,285) | (22,761) | (28,762) | (18,913) | (13,344) | ||||||||||
Total Equity | (335,369) | 354,526 | 221,818 | 237,765 | 226,142 | 201,260 | 193,245 | 333,213 | 170,492 | 216,124 | ||||||||||
Total Member's Equity | (335,369) | 354,526 | 221,818 | 237,765 | 226,142 | 201,260 | 193,245 | 333,213 | 170,492 | 216,124 | ||||||||||
Total Liabilities & Members' Equity | $ (235,673) | $ 556,198 | $ 376,801 | $ 355,629 | $ 346,769 | $ 315,919 | $ 340,838 | $ 537,364 | $ 271,733 | $ 351,767 |
Description | Ark7 Properties Plus LLC - Series #ORHOF | Ark7 Properties Plus LLC - Series #P7FJ5 | Ark7 Properties Plus LLC - Series #QGXF0 | Ark7 Properties Plus LLC - Series #RPFUV | Ark7 Properties Plus LLC - Series #SOV9W | Ark7 Properties Plus LLC - Series #WGI3Z | Ark7 Properties Plus LLC - Series #WRA7O | Ark7 Properties Plus LLC - Series #ZAUH4 | Ark7 Properties Plus LLC - Series #ZIE3T | Total | ||||||||||
Assets | ||||||||||||||||||||
Current Assets | ||||||||||||||||||||
Cash and cash equivalents | $ 5,786 | $ 3,296 | $ 6,733 | $ - | $ 2,286 | $ 1,720 | $ 9,516 | $ 2,447 | $ 6,236 | $ 584,734 | ||||||||||
Receivables | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ 2,540 | ||||||||||
Related party receivables | 86,531 | 132,813 | 160,716 | 121,241 | 126,036 | 155,223 | 235,234 | 76,244 | 190,514 | 1,674,481 | ||||||||||
Prepaid expenses | 4,969 | 2,183 | 8,741 | 2,368 | 5,671 | 8,546 | 8,005 | 7,122 | 6,382 | 107,651 | ||||||||||
Total Current Assets | 97,286 | 138,292 | 176,191 | 123,609 | 133,993 | 165,488 | 252,755 | 85,812 | 203,132 | 2,369,406 | ||||||||||
Noncurrent Assets | ||||||||||||||||||||
Property, plant, and equipment | ||||||||||||||||||||
Property, plant, and equipment - Cost | 212,222 | 224,360 | 373,092 | 256,768 | 215,670 | 290,347 | 535,451 | 250,524 | 388,535 | 5,188,110 | ||||||||||
Property, plant, and equipment - Accumulated Depreciation | (16,778) | (27,151) | (30,827) | (21,332) | (18,627) | (44,144) | (63,309) | (14,317) | (44,551) | (497,682) | ||||||||||
Total Property, plant, and equipment | 195,444 | 197,209 | 342,265 | 235,436 | 197,043 | 246,204 | 472,141 | 236,207 | 343,984 | 4,690,428 | ||||||||||
Total Noncurrent Assets | 195,444 | 197,209 | 342,265 | 235,436 | 197,043 | 246,204 | 472,141 | 236,207 | 343,984 | 4,690,428 | ||||||||||
Total Assets | 292,729 | 335,501 | 518,455 | 359,045 | 331,036 | 411,692 | 724,897 | 322,019 | 547,116 | 7,059,834 | ||||||||||
| ||||||||||||||||||||
Liabilities & Members' Equity | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Current Liabilities | ||||||||||||||||||||
Accounts payable and accrued liabilities | - | - | - | - | - | - | - | - | - | 99,696 | ||||||||||
Current portion of mortgage payable | - | 1,576 | 1,923 | 1,377 | 1,703 | 1,878 | 3,005 | 1,631 | 2,132 | 27,177 | ||||||||||
Related party payables | - | - | - | - | - | - | - | - | - | (0) | ||||||||||
Other liabilities, current | - | 2,250 | 1,804 | 2,450 | 2,900 | (1,332) | - | 1,650 | - | 14,973 | ||||||||||
Total Current Liabilities | - | 3,826 | 3,728 | 3,827 | 4,603 | 547 | 3,005 | 3,281 | 2,132 | 141,845 | ||||||||||
Noncurrent Liabilities | ||||||||||||||||||||
Mortgage payable | 98,633 | 144,648 | 183,644 | 133,660 | 136,540 | 149,425 | 279,585 | 128,592 | 197,540 | 2,733,499 | ||||||||||
Total Noncurrent Liabilities | 98,633 | 144,648 | 183,644 | 133,660 | 136,540 | 149,425 | 279,585 | 128,592 | 197,540 | 2,733,499 | ||||||||||
Total Liabilities | 98,633 | 148,474 | 187,371 | 137,488 | 141,143 | 149,972 | 282,590 | 131,873 | 199,672 | 2,875,345 | ||||||||||
| ||||||||||||||||||||
Member's Equity | ||||||||||||||||||||
Equity | ||||||||||||||||||||
Members' Equity | 222,341 | 222,327 | 331,232 | 260,988 | 219,848 | 306,537 | 528,963 | 220,189 | 373,558 | 5,077,313 | ||||||||||
Retained Earnings (Accumulated Deficit) | (28,245) | (35,300) | (148) | (39,431) | (29,955) | (44,817) | (86,656) | (30,043) | (26,114) | (892,823) | ||||||||||
Total Equity | 194,097 | 187,027 | 331,084 | 221,557 | 189,893 | 261,720 | 442,307 | 190,146 | 347,444 | 4,184,489 | ||||||||||
Total Member's Equity | 194,097 | 187,027 | 331,084 | 221,557 | 189,893 | 261,720 | 442,307 | 190,146 | 347,444 | 4,184,489 | ||||||||||
Total Liabilities & Members' Equity | $ 292,729 | $ 335,501 | $ 518,455 | $ 359,045 | $ 331,036 | $ 411,692 | $ 724,897 | $ 322,019 | $ 547,116 | $ 7,059,834 |
F-7
Ark7 Properties Plus LLC
Consolidated and consolidating Statement of Income
For the six months ended June 30, 2026
Description | Ark7 Properties Plus LLC | Ark7 Properties Plus LLC - Series #0XYT6 | Ark7 Properties Plus LLC - Series #5VCTK | Ark7 Properties Plus LLC - Series #DIVTU | Ark7 Properties Plus LLC - Series #ET8BV | Ark7 Properties Plus LLC - Series #EYPIR | Ark7 Properties Plus LLC - Series #FTWDS | Ark7 Properties Plus LLC - Series #JTDXY | Ark7 Properties Plus LLC - Series #NHMOP | Ark7 Properties Plus LLC - Series #OJXLW | ||||||||||
Net Income (Loss) | ||||||||||||||||||||
Gross Profit (Loss) | ||||||||||||||||||||
Rental Income | $ - | $ 18,741 | $ 14,016 | $ 16,224 | $ 14,265 | $ 7,957 | $ 9,600 | $ 19,086 | $ 12,153 | $ 12,122 | ||||||||||
Other rental fees | - | - | - | - | - | - | - | - | - | - | ||||||||||
Total Gross Profit (Loss) | - | 18,741 | 14,016 | 16,224 | 14,265 | 7,957 | 9,600 | 19,086 | 12,153 | 12,122 | ||||||||||
Operating Expenses | ||||||||||||||||||||
General and administrative expenses | 213 | 3,898 | 2,586 | 10,898 | 5,105 | 849 | 1,049 | 5,906 | 6,588 | 1,037 | ||||||||||
Depreciation and amortization expenses | - | 7,307 | 4,269 | 3,923 | 3,673 | 3,739 | 3,693 | 6,367 | 2,638 | 3,226 | ||||||||||
Property tax and state fee | 300 | 5,492 | 3,910 | 2,081 | 1,648 | 2,226 | 2,603 | 6,033 | 1,190 | 2,923 | ||||||||||
Total Operating Expenses | 513 | 16,697 | 10,764 | 16,902 | 10,427 | 6,814 | 7,345 | 18,306 | 10,416 | 7,186 | ||||||||||
Operating Income (Loss) | (513) | 2,043 | 3,251 | (678) | 3,838 | 1,142 | 2,255 | 780 | 1,737 | 4,935 | ||||||||||
Other Income (Loss) | ||||||||||||||||||||
Interest income, related party | (112,657) | 10,196 | 7,621 | 4,285 | 4,378 | 808 | 7,516 | 10,342 | 3,757 | 1,935 | ||||||||||
Interest expense | - | (8,131) | (6,038) | (3,305) | (3,377) | (731) | (5,994) | (8,247) | (2,911) | (2,052) | ||||||||||
Interest expense, related party | - | - | - | - | - | - | - | - | - | - | ||||||||||
Other income (expense) | - | - | - | - | - | - | - | - | - | - | ||||||||||
Total Other Income (Loss) | (112,657) | 2,065 | 1,584 | 980 | 1,001 | 77 | 1,522 | 2,095 | 846 | (118) | ||||||||||
Total Net Income (Loss) | $ (113,169) | $ 4,109 | $ 4,835 | $ 301 | $ 4,839 | $ 1,219 | $ 3,777 | $ 2,875 | $ 2,583 | $ 4,818 |
Description | Ark7 Properties Plus LLC - Series #ORHOF | Ark7 Properties Plus LLC - Series #P7FJ5 | Ark7 Properties Plus LLC - Series #QGXF0 | Ark7 Properties Plus LLC - Series #RPFUV | Ark7 Properties Plus LLC - Series #SOV9W | Ark7 Properties Plus LLC - Series #WGI3Z | Ark7 Properties Plus LLC - Series #WRA7O | Ark7 Properties Plus LLC - Series #ZAUH4 | Ark7 Properties Plus LLC - Series #ZIE3T | Total | ||||||||||
Net Income (Loss) | ||||||||||||||||||||
Gross Profit (Loss) | ||||||||||||||||||||
Rental Income | $ 13,904 | $ 9,000 | $ 23,100 | $ 11,700 | $ 11,250 | $ 3,614 | $ 18,270 | $ 11,400 | $ 22,440 | $ 248,840 | ||||||||||
Other rental fees | - | - | 977 | - | - | (267) | - | - | - | 710 | ||||||||||
Total Gross Profit (Loss) | 13,904 | 9,000 | 24,077 | 11,700 | 11,250 | 3,347 | 18,270 | 11,400 | 22,440 | 249,550 | ||||||||||
Operating Expenses | ||||||||||||||||||||
General and administrative expenses | 8,088 | 1,174 | 3,254 | 4,759 | 4,056 | 4,986 | 7,490 | 2,249 | 6,196 | 80,380 | ||||||||||
Depreciation and amortization expenses | 3,283 | 3,680 | 6,046 | 4,079 | 3,315 | 5,434 | 8,601 | 3,775 | 6,215 | 83,265 | ||||||||||
Property tax and state fee | 1,323 | 2,233 | 7,522 | 2,148 | 2,410 | 1,305 | 6,656 | 2,908 | 5,515 | 60,427 | ||||||||||
Total Operating Expenses | 12,694 | 7,087 | 16,822 | 10,986 | 9,781 | 11,726 | 22,748 | 8,933 | 17,925 | 224,072 | ||||||||||
Operating Income (Loss) | 1,210 | 1,913 | 7,255 | 714 | 1,469 | (8,379) | (4,478) | 2,467 | 4,515 | 25,478 | ||||||||||
Other Income (Loss) | ||||||||||||||||||||
Interest income, related party | 3,599 | 7,436 | 9,599 | 7,081 | 1,977 | 6,643 | 14,372 | 916 | 10,196 | 0 | ||||||||||
Interest expense | (2,776) | (5,911) | (7,679) | (5,665) | (1,572) | (5,056) | (11,461) | (828) | (8,131) | (89,867) | ||||||||||
Interest expense, related party | - | - | - | - | - | - | - | - | - | - | ||||||||||
Other income (expense) | - | - | - | - | - | - | - | - | - | - | ||||||||||
Total Other Income (Loss) | 823 | 1,525 | 1,920 | 1,416 | 404 | 1,586 | 2,911 | 87 | 2,065 | (89,867) | ||||||||||
Total Net Income (Loss) | $ 2,033 | $ 3,438 | $ 9,175 | $ 2,130 | $ 1,874 | $ (6,792) | $ (1,567) | $ 2,555 | $ 6,580 | $ (64,389) |
F-8
Ark7 Properties Plus LLC
Consolidated and consolidating Statement of Members' Equity
For the six months ended June 30, 2026
Description | Ark7 Properties Plus LLC | Ark7 Properties Plus LLC - Series #0XYT6 | Ark7 Properties Plus LLC - Series #5VCTK | Ark7 Properties Plus LLC - Series #DIVTU | Ark7 Properties Plus LLC - Series #ET8BV | Ark7 Properties Plus LLC - Series #EYPIR | Ark7 Properties Plus LLC - Series #FTWDS | Ark7 Properties Plus LLC - Series #JTDXY | Ark7 Properties Plus LLC - Series #NHMOP | Ark7 Properties Plus LLC - Series #OJXLW | ||||||||||
Balance at January 01, 2026 | $ (222,200) | $ 357,124 | $ 221,058 | $ 245,276 | $ 229,155 | $ 205,447 | $ 196,915 | $ 341,519 | $ 174,488 | $ 218,829 | ||||||||||
Equity Contribution | - | 6,876 | 2,100 | - | - | (1,290) | 40 | 87 | - | - | ||||||||||
Net Income (Loss) | (113,169) | 4,109 | 4,835 | 301 | 4,839 | 1,219 | 3,777 | 2,875 | 2,583 | 4,818 | ||||||||||
Distribution | - | (13,582) | (6,175) | (7,812) | (7,852) | (4,116) | (7,487) | (11,269) | (6,579) | (7,522) | ||||||||||
Balance at June 30, 2026 | $ (335,369) | $ 354,526 | $ 221,818 | $ 237,765 | $ 226,142 | $ 201,260 | $ 193,245 | $ 333,213 | $ 170,492 | $ 216,124 |
Description | Ark7 Properties Plus LLC - Series #ORHOF | Ark7 Properties Plus LLC - Series #P7FJ5 | Ark7 Properties Plus LLC - Series #QGXF0 | Ark7 Properties Plus LLC - Series #RPFUV | Ark7 Properties Plus LLC - Series #SOV9W | Ark7 Properties Plus LLC - Series #WGI3Z | Ark7 Properties Plus LLC - Series #WRA7O | Ark7 Properties Plus LLC - Series #ZAUH4 | Ark7 Properties Plus LLC - Series #ZIE3T | Total | ||||||||||
Balance at January 01, 2026 | $ 195,793 | $ 190,724 | $ 335,381 | $ 226,094 | $ 194,411 | $ 272,112 | $ 450,056 | $ 192,014 | $ 349,844 | $ 4,374,040 | ||||||||||
Equity Contribution | 3,360 | - | 1,697 | - | 1,008 | 32 | 2,274 | 840 | - | 17,024 | ||||||||||
Net Income (Loss) | 2,033 | 3,438 | 9,175 | 2,130 | 1,874 | (6,792) | (1,567) | 2,555 | 6,580 | (64,389) | ||||||||||
Distribution | (7,090) | (7,135) | (15,169) | (6,668) | (7,400) | (3,632) | (8,456) | (5,262) | (8,980) | (142,187) | ||||||||||
Balance at June 30, 2026 | $ 194,097 | $ 187,027 | $ 331,084 | $ 221,557 | $ 189,893 | $ 261,720 | $ 442,307 | $ 190,146 | $ 347,444 | $ 4,184,489 |
F-9
Ark7 Properties Plus LLC
Consolidated and consolidating Statement of Cash Flows
For the six months ended June 30, 2026
Description | Ark7 Properties Plus LLC | Ark7 Properties Plus LLC - Series #0XYT6 | Ark7 Properties Plus LLC - Series #5VCTK | Ark7 Properties Plus LLC - Series #DIVTU | Ark7 Properties Plus LLC - Series #ET8BV | Ark7 Properties Plus LLC - Series #EYPIR | Ark7 Properties Plus LLC - Series #FTWDS | Ark7 Properties Plus LLC - Series #JTDXY | Ark7 Properties Plus LLC - Series #NHMOP | Ark7 Properties Plus LLC - Series #OJXLW | ||||||||||
Cash Flows From Operating Activities | ||||||||||||||||||||
Net Income (Loss) | $ (113,169) | $ 4,109 | $ 4,835 | $ 301 | $ 4,839 | $ 1,219 | $ 3,777 | $ 2,875 | $ 2,583 | $ 4,818 | ||||||||||
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities | ||||||||||||||||||||
Depreciation and amortization | - | 7,307 | 4,269 | 3,923 | 3,673 | 3,739 | 3,693 | 6,367 | 2,638 | 3,226 | ||||||||||
Total Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities |
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(Increase) decrease in operating assets, net of effects of businesses acquired | ||||||||||||||||||||
Accounts receivable | 360 | - | - | - | - | - | - | - | - | - | ||||||||||
Related party receivables | - | |||||||||||||||||||
Prepaid expenses | - | (5,945) | (5,776) | (5,451) | (5,199) | (2,459) | (1,662) | (3,291) | (3,880) | (3,361) | ||||||||||
Increase (decrease) in operating liabilities, net of effects of businesses acquired | ||||||||||||||||||||
Accounts payable and accrued expenses | 63,054 | - | - | - | - | - | - | - | - | - | ||||||||||
Related party payables | 370,019 | 843 | 6,758 | (104,627) | (109,917) | (109,352) | 2,444 | 9,367 | (95,396) | (132,124) | ||||||||||
Other liabilities | - | - | - | 0 | - | (1,300) | - | - | - | - | ||||||||||
Net Cash Provided by (Used in) Operating Activities | 320,263 | 6,313 | 10,086 | (105,854) | (106,604) | (108,152) | 8,252 | 15,318 | (94,055) | (127,442) | ||||||||||
Cash Flows from Investing Activities | ||||||||||||||||||||
Payments received from related party loans and notes receivable |
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Related party loans and notes receivable issued |
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Purchase of property, plant, and equipment | - | - | - | (2,565) | (2,166) | (1,753) | - | - | (1,483) | (2,963) | ||||||||||
Cash Flows from Financing Activities | ||||||||||||||||||||
Proceeds from issuance of debt | (998) | (721) | 122,553 | 125,460 | 119,340 | (736) | (1,012) | 106,080 | 140,626 | |||||||||||
Payments for debt issuance costs |
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Repayment of debt |
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Proceeds from private offerings | - | 6,876 | 2,100 | - | - | (1,290) | 40 | 87 | - | - | ||||||||||
Distributions to partners | - | (13,582) | (6,175) | (7,812) | (7,852) | (4,116) | (7,487) | (11,269) | (6,579) | (7,522) | ||||||||||
Net Cash Provided by (Used in) Financing Activities | - | (7,704) | (4,796) | 114,740 | 117,608 | 113,934 | (8,183) | (12,194) | 99,501 | 133,104 | ||||||||||
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | 320,263 | (1,391) | 5,290 | 6,322 | 8,838 | 4,028 | 69 | 3,124 | 3,963 | 2,699 | ||||||||||
Cash, Cash Equivalents, and Restricted Cash at January 01, 2026 | 196,350 | 2,081 | 1,856 | - | - | - | (287) | (6,490) | - | - | ||||||||||
Cash, Cash Equivalents, and Restricted Cash at June 30, 2026 | 516,613 | 690 | 7,146 | 6,322 | 8,838 | 4,028 | (218) | (3,366) | 3,963 | 2,699 | ||||||||||
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Supplemental Cash Flow information | ||||||||||||||||||||
Cash Paid During the Year for | ||||||||||||||||||||
Interest | $ - | $ 8,131 | $ 6,038 | $ 3,305 | $ 3,377 | $ 731 | $ 5,994 | $ 8,247 | $ 2,911 | $ 2,052 |
Description | Ark7 Properties Plus LLC - Series #ORHOF | Ark7 Properties Plus LLC - Series #P7FJ5 | Ark7 Properties Plus LLC - Series #QGXF0 | Ark7 Properties Plus LLC - Series #RPFUV | Ark7 Properties Plus LLC - Series #SOV9W | Ark7 Properties Plus LLC - Series #WGI3Z | Ark7 Properties Plus LLC - Series #WRA7O | Ark7 Properties Plus LLC - Series #ZAUH4 | Ark7 Properties Plus LLC - Series #ZIE3T | Total | ||||||||||
Cash Flows From Operating Activities | ||||||||||||||||||||
Net Income (Loss) | $ 2,033 | $ 3,438 | $ 9,175 | $ 2,130 | $ 1,874 | $ (6,792) | $ (1,567) | $ 2,555 | $ 6,580 | $ (64,389) | ||||||||||
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities | ||||||||||||||||||||
Depreciation and amortization | 3,283 | 3,680 | 6,046 | 4,079 | 3,315 | 5,434 | 8,601 | 3,775 | 6,215 | 83,265 | ||||||||||
Total Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities |
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(Increase) decrease in operating assets, net of effects of businesses acquired | ||||||||||||||||||||
Accounts receivable | - | - | - | - | - | - | - | - | - | 360 | ||||||||||
Related party receivables | ||||||||||||||||||||
Prepaid expenses | (3,929) | (1,249) | (6,001) | (1,646) | (4,740) | (5,506) | (304) | (4,581) | (486) | (65,466) | ||||||||||
Increase (decrease) in operating liabilities, net of effects of businesses acquired | ||||||||||||||||||||
Accounts payable and accrued expenses | - | - | - | - | - | - | - | - | - | 63,054 | ||||||||||
Related party payables | (92,896) | 4,419 | 10,443 | 2,749 | (135,934) | 16,685 | 7,874 | (128,302) | 28,630 | (448,316) | ||||||||||
Other liabilities | - | - | (385) | - | 1,400 | (3,007) | - | - | - | (3,291) | ||||||||||
Net Cash Provided by (Used in) Operating Activities | (91,508) | 10,288 | 19,279 | 7,312 | (134,086) | 6,815 | 14,605 | (126,552) | 40,939 | (434,784) | ||||||||||
Cash Flows from Investing Activities | ||||||||||||||||||||
Payments received from related party loans and notes receivable |
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Purchase of property, plant, and equipment | (2,118) | - | (4,046) | - | (920) | (1,884) | - | (1,831) | (24,867) | (46,596) | ||||||||||
Cash Flows from Financing Activities | ||||||||||||||||||||
Proceeds from issuance of debt | 103,142 | (739) | (900) | (644) | 143,684 | (744) | (1,407) | 135,252 | (998) | 987,238 | ||||||||||
Payments for debt issuance costs |
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Repayment of debt |
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Proceeds from private offerings | 3,360 | - | 1,697 | - | 1,008 | 32 | 2,274 | 840 | - | 17,024 | ||||||||||
Distributions to partners | (7,090) | (7,135) | (15,169) | (6,668) | (7,400) | (3,632) | (8,456) | (5,262) | (8,980) | (142,187) | ||||||||||
Net Cash Provided by (Used in) Financing Activities | 99,412 | (7,873) | (14,372) | (7,312) | 137,292 | (4,344) | (7,589) | 130,830 | (9,978) | 862,075 | ||||||||||
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | 5,786 | 2,414 | 861 | 0 | 2,286 | 586 | 7,015 | 2,447 | 6,094 | 380,696 | ||||||||||
Cash, Cash Equivalents, and Restricted Cash at January 01, 2026 | - | 882 | 5,872 | - | - | 1,133 | 2,501 | - | 142 | 204,039 | ||||||||||
Cash, Cash Equivalents, and Restricted Cash at June 30, 2026 | 5,786 | 3,296 | 6,733 | - | 2,286 | 1,720 | 9,516 | 2,447 | 6,236 | 584,734 | ||||||||||
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Supplemental Cash Flow information | ||||||||||||||||||||
Cash Paid During the Year for | ||||||||||||||||||||
Interest | $ 2,776 | $ 5,911 | $ 7,679 | $ 5,665 | $ 1,572 | $ 5,056 | $ 11,461 | $ 828 | $ 8,131 | $ 89,867 |
F-10
ARK7 PROPERTIES PLUS LLC
NOTES TO THE CONSOLIDATED AND CONSOLIDATING FINANCIAL STATEMENTS
NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
General Information
Ark7 Properties Plus LLC (the "APPL") is a Delaware series limited liability company wholly owned by Ark7 Inc. (the "Parent Company"). The APPL was formed on March 17, 2022, in accordance with the Limited Liability Company Act (LLCA) of the state of Delaware. The APPL has registered 18 Series Delaware limited liability companies (the "Series Companies"), each of which will be used as an investment vehicle that intends to enable investors to own fractional ownership of a specific rental property. This lowers the cost of entry and minimizes the time commitment for real estate investing. An investment in the APPL entitles the investor to the potential economic benefits normally associated with direct property ownership while requiring no investor involvement in asset or property management.
Series | Carrier | Property Address | Registration Date | |||
WGI3Z | Arizona City-S6 | 11679 W Madero Dr, Arizona City, AZ 85123 | March 21, 2022 | |||
0XYT6 | Dallas-S7 | 2105 Silver Leaf Dr, Mesquite, TX 75181 | June 30, 2022 | |||
JTDXY | Dallas-S9 | 2300 Homestead Dr, Mesquite, TX 75181 | June 30, 2022 | |||
ZIE3T | Dallas-S8 | 2507 Decoy Dr, Mesquite, TX 75181 | August 1, 2022 | |||
NHMOP | Atlanta-C3 | 215 Piedmont Ave NE, Unit 205, Atlanta, GA 30308 | August 10, 2022 | |||
SOV9W | Chicago-C1 | 2113 W Gladys Ave, Unit 3S, Chicago, IL 60612 | August 10, 2022 | |||
WRA7O | Tampa-S10 | 4263 Cadence Loop, LAND O LAKES, FL 34638 | August 10, 2022 | |||
QGXF0 | Urbana-S11 | 704 S Lincoln Ave, Urbana, IL 61801 | August 10, 2022 | |||
FTWDS | Atlanta-T3 | 1527 Iris Walk, Jonesboro, GA 30238 | November 21, 2022 | |||
P7FJ5 | Atlanta-T4 | 1541 Iris Walk, Jonesboro, GA 30238 | November 21, 2022 | |||
RPFUV | Alexandria-C2 | 3405 Commonwealth Ave, Unit C, Alexandria, VA 22305 | September 27, 2023 | |||
ORHOF | Atlanta-C5 | 215 Piedmont Ave NE, Unit 407, Atlanta, GA 30308 | September 27, 2023 | |||
DIVTU | Atlanta-C6 | 215 Piedmont Ave NE, Unit 406, Atlanta, GA 30308 | September 27, 2023 | |||
OJXLW | DFW-S12 | 228 W Norway St, Walnut Springs, TX 76690 | March 18, 2024 | |||
ZAUH4 | DFW-S13 | 516 W Live Oak St, Dublin, TX 76446 | March 18, 2024 | |||
EYPIR | DFW-S14 | 655 E Live Oak St, Dublin, TX 76446 | March 18, 2024 | |||
5VCTK | DFW-S15 | 3616 Redbird St, Waco, TX 76705 | April 25, 2024 | |||
ET8BV | Atlanta-C7 | 215 Piedmont Ave NE, Unit 909, Atlanta, GA 30308 | May 16, 2024 |
Management's Plan and Going Concerns
The accompanying financial statements have been prepared on a going concern basis, which assumes that APPL will continue to operate in the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of business. APPL has experienced operating losses in prior years, which have required ongoing financial support. For the six months ended June 30, 2026, APPL generated operating income of $25,478 and incurred a net loss of $64,389, compared with operating income of $30,824 and a net loss of $31,876 for the six months ended June 30, 2025, mainly reflecting higher interest expense following the refinancing of certain mortgage loans and higher property taxes, partly offset by lower general and administrative expenses. As of June 30, 2026, APPL's accumulated deficit amounted to $892,823.
Management has taken several steps to strengthen APPL's financial position, including refinancing mortgage loans, securing additional capital contributions and implementing operational efficiencies. Management believes that, with continued focus on cost management and strategic fundraising, APPL is progressing toward long-term sustainability. While uncertainties remain, management believes it has appropriate plans and resources in place to address these factors and to support ongoing operations. Accordingly, the financial statements have been prepared on a going concern basis. No adjustments have been made to the financial statements that might result from the outcome of these uncertainties.
F-11
Statement of compliance
The accompanying consolidated and consolidating financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. The consolidated and consolidating financial statements include the accounts of the APPL and its Series Companies. All intercompany balances and transactions are eliminated in consolidation.
These consolidated and consolidating financial statements have been prepared under the historical cost convention, except for evaluating specific financial instruments carried at fair value.
The accompanying interim consolidated and consolidating financial statements are unaudited. In the opinion of management, all adjustments necessary in order to make the interim financial statements not misleading have been included.
Method of accounting
The consolidated and consolidating financial statement of the APPL is prepared on the accrual basis of accounting. It includes only those assets, liabilities, and results of operations that relate to the business of the APPL.
Use of estimates and assumptions
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. To the extent that there are material differences between these estimates and actual results, the APPL's financial condition or operating results will be materially affected. The APPL bases its estimates on past experience and other assumptions that the APPL believes are reasonable under the circumstances, and the APPL evaluates those estimates on an ongoing basis.
Functional and presentation currency
Items included in the APPL's consolidated financial statements are estimated using the currency that best reflects the economic substance of the underlying events and circumstances related to the APPL (the "functional currency"). The functional and presentation currency of the accompanying financial statements is US Dollars (the "USD").
Revenue recognition
Rental income is reported on a straight-line basis over the terms of the respective leases. The property rental income for the six months ended June 30, 2026 and 2025 was $248,840 and $252,278, respectively.
The concentration of credit risk
Financial instruments potentially subject the APPL to the concentration of credit risk, primarily cash and tenant receivables. The APPL places its cash with financial institutions, and its balances are insured by the Federal Deposit Insurance Corporation up to $250,000. At various times, the APPL had a cash balance over the insured amount.
Fair value measurements
FASB ASC 820, "Fair Value Measurements" defines fair value for certain financial and nonfinancial assets and liabilities that are recorded at fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. It requires that an entity measure its financial instruments to base fair value on the exit price, maximize the use of observable units and minimize the use of unobservable inputs to determine the exit price. It establishes a hierarchy which prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy increases the consistency and comparability of fair value measurements and related disclosures by maximizing the use of observable inputs and minimizing the use of unobservable inputs by requiring that observable inputs be used when available.
Observable inputs are inputs that reflect the assumptions market participants would use in pricing the assets or liabilities based on market data obtained from sources independent of the APPL. Unobservable inputs are inputs that reflect the APPL's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy prioritizes the inputs into three broad levels based on the reliability of the inputs as follows:
Level 1 - Inputs are quoted prices in active markets for identical assets or liabilities that the APPL has the ability to access at the measurement date. Valuation of these instruments does not require a high degree of judgment as the valuations are based on quoted prices in active markets that are readily and regularly available.
Level 2 - Inputs other than quoted prices in active markets that are either directly or indirectly observable as of the measurement date, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 - Valuations based on inputs that are unobservable and not corroborated by market data. The fair value for such assets and liabilities is generally determined using pricing models, discounted cash flow methodologies, or similar techniques that incorporate the assumptions a market participant would use in pricing the asset or liability.
The carrying values of certain assets and liabilities of the APPL approximate fair value due to their either relatively short maturities and/or consistency with current market rates.
F-12
Property, plant, and equipment
Land is carried at cost. Building, leasehold improvements, furniture, fixtures, and equipment are carried at cost, less accumulated depreciation and amortization. The building, furniture, fixtures, and equipment are depreciated using the straight-line method over the estimated useful lives of the assets. The cost of leasehold improvements is amortized using the straight-line method over the terms of the related leases. Repairs and maintenance are expensed when incurred.
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of long-lived assets is assessed by a comparison of the carrying amount of the asset to the estimated future undiscounted net cash flows expected to be generated by the asset or group of assets. If estimated future undiscounted net cash flows are less than the carrying amount of the asset or group of assets, the asset is considered impaired and an expense is recorded in an amount required to reduce the carrying amount of the asset to its then fair value. Fair value is generally determined from estimated discounted future net cash flows (for assets held for use) or net realizable value (for assets held for sale). For the six months ended June 30, 2026 and 2025, the APPL has not recognized any impairment losses.
Property, plant and equipment consist of the following as of June 30, 2026 and December 31, 2025:
| June 30, 2026 | December 31, 2025 | ||
Buildings and improvements | $ 4,417,806 | $ 4,382,741 | ||
Furniture and fixtures | $ 33,445 | $ 21,915 | ||
Land | $ 736,859 | $ 736,859 | ||
Property, plant, and equipment, gross | 5,188,110 | 5,141,515 | ||
Less: Buildings and improvements - Accumulated Depreciation | (487,249) | (408,080) | ||
Furniture and fixtures - Accumulated Depreciation | (10,433) | (7,768) | ||
Property, plant, and equipment | $ 4,690,428 | $ 4,725,666 |
Estimated useful life for buildings and improvements is 27.5 years.
Depreciation expenses for the six months ended June 30, 2026 and 2025 was $83,265 and $78,240, respectively.
Lease accounting
According to the recently adopted Accounting Standards Updated ("ASU") No. 2016-02, Leases (Topic 842) ("ASU 2016- 02" or "ASC 842"), the APPL determines whether the arrangement is or contains a lease based on the unique facts and circumstances present in the arrangement. Leases with a term greater than one year are recognized on the balance sheet as right-of-use assets and current and non-current lease liabilities, as applicable. As of June 30, 2026 and December 31, 2025, the APPL had no long-term leases.
Income taxes
The APPL is taxed as a Limited Liability Company (LLC). Under these provisions, the APPL does not pay federal corporate income taxes on its taxable income. Instead, the shareholders are liable for individual federal and state income taxes on their respective shares of the APPL's taxable income.
Each series will be taxed as a C-corporation, with the profits taxed at the series level, independent of distributions to investors. For this offering of series interests to investors, each series will be taxed as a C-corporation, with the profits taxed at the series level, independent of distributions to investors. This means that the Series will owe corporate income tax on its profits and will report these profits and losses for tax purposes at the corporate level. The Series will distribute dividends to investors from the net profits after taxes, subject to our Managing Member's discretion regarding the retention of funds for future working capital needs. Consequently, investors may receive dividend distributions when profits are realized and taxes are paid at the corporate level, which could be independent of the actual cash distributions made to investors.
Distributions per unit
Distributions per unit of each Series, calculated as the distributions made by the Series during the period divided by its outstanding units, were as follows:
Series | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | ||
#WGI3Z | $ 0.32 | $ 0.74 | ||
#0XYT6 | $ 0.57 | $ 0.48 | ||
#JTDXY | $ 0.50 | $ 0.56 | ||
#ZIE3T | $ 0.39 | $ 0.63 | ||
#NHMOP | $ 3.05 | $ 2.26 | ||
#SOV9W | $ 2.85 | $ 1.97 | ||
#WRA7O | $ 0.27 | $ 0.30 | ||
#QGXF0 | $ 3.70 | $ 3.82 | ||
#FTWDS | $ 0.57 | $ 0.52 | ||
#P7FJ5 | $ 0.54 | $ 0.46 | ||
#RPFUV | $ 2.30 | $ 1.90 | ||
#ORHOF | $ 2.84 | $ 2.59 | ||
#DIVTU | $ 2.56 | $ 2.69 | ||
#OJXLW | $ 2.89 | $ 2.84 | ||
#ZAUH4 | $ 2.19 | $ 1.72 | ||
#EYPIR | $ 1.58 | $ 1.63 | ||
#5VCTK | $ 2.25 | $ 1.94 | ||
#ET8BV | $ 3.00 | $ 2.67 |
F-13
NOTE 2: PROPERTY MANAGEMENT RESERVES
Multiple Series Companies have allocated funds to establish property management reserves. These funds are designed to mitigate future financial uncertainties associated with property-related expenses, including maintenance, repairs, enhancements, or unanticipated costs. The aim is to maintain the properties in satisfactory condition, prevent financial strain, and preclude the necessity for immediate supplementary contributions from investors or owners due to substantial, unexpected expenses.
As of June 30, 2026 and December 31, 2025, the balance of the property management reserve was $68,122 and $7,689, respectively, and is included in cash and cash equivalents on the accompanying balance sheet.
F-14
NOTE 3: MORTGAGE PAYABLES
Series #WGI3Z
On December 29, 2025, the APPL - Series WGI3Z executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APPL - Series WGI3Z borrowed $ 159,000.00 at 6.375% interest with a maturity of December 31, 2055. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $151,303 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $5,056.
Series #0XYT6
On April 25, 2024, the APPL - Series 0XYT6 executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APPL - Series 0XYT6 borrowed $ 210,000.00 at 7.875% interest with a maturity of April 30, 2054. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $199,672 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $8,131.
Series #JTDXY
On April 25, 2024, the APPL - Series JTDXY executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APPL - Series JTDXY borrowed $ 213,000.00 at 7.875% interest with a maturity of April 30, 2054. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $202,351 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $8,247.
Series #ZIE3T
On April 25, 2024, the APPL - Series ZIE3T executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APPL - Series ZIE3T borrowed $ 210,000.00 at 7.875% interest with a maturity of April 30, 2054. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $199,672 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $8,131.
Series #NHMOP
On January 29, 2026, the APPL - Series NHMOP executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APPL - Series NHMOP borrowed $ 106,080.00 at 6.500% interest with a maturity of January 31, 2056. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $101,241 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $2,911.
Series #QGXF0
On May 14, 2024, the APPL - Series QGXF0 executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APPL - Series QGXF0 borrowed $ 195,000.00 at 8.000% interest with a maturity of May 31, 2054. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $185,567 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $7,679.
Series #SOV9W
On April 27, 2026, the APPL - Series SOV9W executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APPL - Series SOV9W borrowed $ 143,820.00 at 6.250% interest with a maturity of April 30, 2056. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $138,243 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $1,572.
Series #WRA7O
On April 23, 2024, the APPL - Series WRA7O executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APPL - Series WRA7O borrowed $ 296,000.00 at 7.875% interest with a maturity of April 30, 2054. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $282,590 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $11,461.
Series #FTWDS
On April 12, 2024, the APPL - Series FTWDS executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APPL - Series FTWDS borrowed $ 154,800.00 at 7.875% interest with a maturity of April 30, 2054. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $146,143 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $5,994.
Series #P7FJ5
On July 30, 2024, the APPL - Series P7FJ5 executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APPL - Series P7FJ5 borrowed $ 154,800.00 at 7.750% interest with a maturity of July 31, 2054. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $146,224 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $5,911.
Series #RPFUV
On September 12, 2024, the APPL - Series RPFUV executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APPL - Series RPFUV borrowed $ 143,400.00 at 8.000% interest with a maturity of September 30, 2054. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $135,037 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $5,665.
Series #DIVTU
On January 29, 2026, the APPL - Series DIVTU executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APPL - Series DIVTU borrowed $ 123,012.00 at 6.375% interest with a maturity of January 31, 2056. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $117,865 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $3,305.
Series #ORHOF
On January 29, 2026, the APPL - Series ORHOF executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APPL - Series ORHOF borrowed $ 103,142.00 at 6.375% interest with a maturity of January 31, 2056. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $98,633 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $2,776.
Series #ZAUH4
On May 22, 2026, the APPL - Series ZAUH4 executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APPL - Series ZAUH4 borrowed $ 135,252.00 at 6.125% interest with a maturity of May 31, 2056. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $130,223 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $828.
Series #OJXLW
On April 7, 2026, the APPL - Series OJXLW executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APPL - Series OJXLW borrowed $ 140,760.00 at 6.250% interest with a maturity of April 30, 2056. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $135,643 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $2,052.
Series #EYPIR
On May 22, 2026, the APPL - Series EYPIR executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APPL - Series EYPIR borrowed $ 119,340.00 at 6.125% interest with a maturity of May 31, 2056. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $114,659 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $731.
Series #5VCTK
On July 18, 2025, the APPL - Series 5VCTK executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APPL - Series 5VCTK borrowed $ 159,250.00 at 7.625% interest with a maturity of July 31, 2055. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $154,983 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $6,038.
Series #ET8BV
On January 29, 2026, the APPL - Series ET8BV executed a Loan Agreement Secured by the Deed of Trust. According to the Loan Agreement, the APPL - Series ET8BV borrowed $ 125,460.00 at 6.375% interest with a maturity of January 31, 2056. The outstanding balance of the Loan Payable - Mortgage as of June 30, 2026 was $120,627 and is included in current portion of mortgage payable and mortgage payable on the accompanying balance sheet. The interest expense incurred in 2026 was $3,377.
Mortgage interest expenses for the six months ended June 30, 2026 was $89,867.
| June 30, 2026 | June 30, 2025 | ||
Current Portion of Mortgage Payable | $ 27,177 | $ 18,246 |
Maturities of the mortgage payable are as follows (excluding the net of the finance cost):
Year | Amount | |
2027 | 27,177 | |
2028 | 29,225 | |
2029 | 31,430 | |
2030 | 33,803 | |
2031 | 36,357 | |
Thereafter | 2,703,254 | |
Total | $ 2,861,246 |
F-15
NOTE 4: TRANSACTIONS WITH RELATED PARTIES
Loan Receivable - due from affiliate
APPL occasionally pays for the Parent Company for covering administrative costs. The loan has been structured as receivable from the Parent Company to APPL. These advances are non-interest bearing and are due on demand. The outstanding balance due from the affiliate as of June 30, 2026 and December 31, 2025 was $1,674,481 and $1,263,181, respectively, and is included in the related party receivables on the accompanying balance sheet.
Loan Payable - due to affiliate
The Parent Company pays APPL for covering administrative costs. The loan has been structured as payable to the Parent Company from APPL. These advances are non-interest bearing and are due on demand. The outstanding balance due to the affiliate as of June 30, 2026 and December 31, 2025 was $0 and $0, respectively, as amounts due to the Parent Company are presented net of amounts due from the Parent Company.
F-16
Property sourcing fee and offering expenses reimbursement
Pursuant to the Operating Agreement the Asset Manager, as consideration for assisting in the sourcing of the Underlying Asset of a Series, to the extent not waived by the Managing Member in its sole discretion, will receive a 3.0% (of the maximum offering amount) Sourcing Fee. The sourcing fee is in connection with the search and negotiation of the property purchase as set forth in the Certificate of Designations for the Series.
The Parent Company assigns offering expenses to each series, which are then set as part of each series' intended Use of Proceeds. The parent company will be reimbursed a fixed amount for each series for offering expenses.
Series #0XYT6
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #5VCTK
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #DIVTU
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #EYPIR
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #FTWDS
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #JTDXY
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #NHMOP
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #OJXLW
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #ORHOF
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #P7FJ5
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #QGXF0
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #RPFUV
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #SOV9W
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #WGI3Z
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #WRA7O
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #ZAUH4
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
Series #ZIE3T
The property sourcing fee and offering expenses incurred in the six months ended June 30, 2026 was $0 and $0, respectively, and in the six months ended June 30, 2025 was $0 and $0, respectively.
F-17
Asset management fee
For services performed, the Series will pay an annual Asset Management Fee to the Asset Manager in respect of each fiscal year, 15% of any Free Cash Flows available for distribution pursuant to Article VII of the Operating Agreement. Any such amount will be paid at the same time as, and only if, a distribution is made from the Series to its Members.
Series #0XYT6
The Series #0XYT6 has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #0XYT6 and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #0XYT6 together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $13, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $3,107 and $1,141, respectively.
Series #5VCTK
The Series #5VCTK has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #5VCTK and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #5VCTK together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $777 and $259, respectively.
Series #DIVTU
The Series #DIVTU has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #DIVTU and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #DIVTU together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $1,252 and $0, respectively.
Series #ET8BV
The Series #ET8BV has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #ET8BV and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #ET8BV together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $0 and $0, respectively.
Series #EYPIR
The Series #EYPIR has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #EYPIR and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #EYPIR together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $284 and $0, respectively.
Series #FTWDS
The Series #FTWDS has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #FTWDS and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #FTWDS together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $672 and $672, respectively.
Series #JTDXY
The Series #JTDXY has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #JTDXY and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #JTDXY together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $2,856 and $1,428, respectively.
Series #NHMOP
The Series #NHMOP has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #NHMOP and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #NHMOP together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $1,165 and $0, respectively.
Series #OJXLW
The Series #OJXLW has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #OJXLW and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #OJXLW together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $756 and $756, respectively.
Series #ORHOF
The Series #ORHOF has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #ORHOF and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #ORHOF together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $1,060 and $0, respectively.
Series #P7FJ5
The Series #P7FJ5 has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #P7FJ5 and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #P7FJ5 together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $630 and $1,375, respectively.
Series #QGXF0
The Series #QGXF0 has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #QGXF0 and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #QGXF0 together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $1,155 and $1,160, respectively.
Series #RPFUV
The Series #RPFUV has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #RPFUV and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #RPFUV together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $0 and $967, respectively.
Series #SOV9W
The Series #SOV9W has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #SOV9W and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #SOV9W together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $788 and $788, respectively.
Series #WGI3Z
The Series #WGI3Z has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #WGI3Z and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #WGI3Z together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $499 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $558 and $718, respectively.
Series #WRA7O
The Series #WRA7O has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #WRA7O and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #WRA7O together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $513 and $1,268, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $1,851 and $1,756, respectively.
Series #ZAUH4
The Series #ZAUH4 has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #ZAUH4 and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #ZAUH4 together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $693 and $560, respectively.
Series #ZIE3T
The Series #ZIE3T has entered into an Asset Management Agreement with the Parent Company (the Asset Manager), the managing member of the Series #ZIE3T and shall reimburse the Asset Manager for any such expenses paid by the Asset Manager on behalf of the Series #ZIE3T together with a reasonable rate of interest (a rate no less than the Applicable Federal Rate (as defined in the Internal Revenue Code)) as may be imposed by the Asset Manager in its sole discretion ("Operating Expenses Reimbursement Obligation"). As of June 30, 2026 and December 31, 2025, the prepaid Asset Management Fee was $0 and $0, respectively. Asset Management Fee for the six months ended June 30, 2026 and 2025, was $2,758 and $1,428, respectively.
F-18
NOTE 5: SUBSEQUENT EVENTS
Management has evaluated subsequent events through the date on the consolidated financial statements that were available to be issued, which is October 8, 2026 and has determined that there were no material subsequent events that require disclosure in these financial statements.
NOTE 6: APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS
The consolidated and consolidating financial statements have been approved by the management of the APPL and authorized for issue on October 8, 2026.
F-19
EXHIBIT INDEX
The documents listed in the Exhibit Index of this report are incorporated by reference or are filed with this report, in each case as indicated below.
2.1 | Certificate of Formation of Ark7 Properties Plus LLC* | |
2.2 | Operating Agreement of Ark7 Properties Plus LLC* | |
3.1 | Series #WGI3Z Series Designation* | |
3.2 | Series #0XYT6 Series Designation* | |
3.3 | Series # ZIE3T Series Designation* | |
3.4 | Series #JTDXY Series Designation* | |
3.5 | Series #FTWDS Series Designation* | |
3.6 | Series #P7FJ5 Series Designation* | |
3.7 | Series #WRA7O Series Designation* | |
3.8 | Series #SOV9W Series Designation* | |
3.9 | Series #QGXF0 Series Designation* | |
3.10 | Series #NHMOP Series Designation* | |
3.11 | Series #RPFUV Series Designation* | |
3.12 | Series #ORHOF Series Designation* | |
3.13 | Series #DIVTU Series Designation* | |
3.14 | Series #OJXLW Series Designation* | |
3.15 | Series #ZAUH4 Series Designation* | |
3.16 | Series #EYPIR Series Designation* | |
3.17 | Series #5VCTK Series Designation* | |
3.18 | Series #ET8BV Series Designation* | |
4.1 | Form of Series #[______] Subscription Agreement* | |
6.1 | Real Estate Purchase Agreement dated April 15, 2022, between Seller and Series #WGI3Z, as amended* | |
6.2 | Real Estate Purchase Agreement dated July 7, 2022 between Seller and Series #0XYT6, as amended* | |
6.3 | Real Estate Purchase Agreement dated August 2, 2022 between Seller and Series #ZIE3T* | |
6.4 | Real Estate Purchase Agreement dated August 15, 2022 between Seller and Series #JTDXY* | |
6.5 | Real Estate Purchase Agreement between Seller and Ark7 for the property located at 1527 Iris Walk, Jonesboro, GA 30238* | |
6.6 | Real Estate Purchase Agreement between Seller and Ark7 for the property located at 1541 Iris Walk Jonesboro, GA 30238* | |
6.7 | Real Estate Purchase Agreement between Seller and Ark7 Properties Plus LLC - Series #WRA7O* | |
6.8 | Assignment and Sale and Purchase Agreement between Ark7 and Ark7 Properties Plus LLC - Series #FTWDS LLC* | |
6.9 | Assignment of Sale and Purchase Agreement between Ark7 and Ark7 Properties Plus LLC - Series #P7FJ5 LLC* | |
6.10 | Real Estate Purchase Agreement between Seller and Series #SOV9W* | |
6.11 | Real Estate Purchase Agreement between Seller and Series #QGXF0* | |
6.12 | Asset Management Agreement between Ark7 Properties Plus LLC - Series #WGI3Z and Ark7 Inc. dated April 15, 2022* | |
6.13 | Asset Management Agreement between Ark7 Properties Plus LLC - Series #0XYT6 dated July 1, 2022* | |
6.14 | Asset Management Agreement between Ark7 Properties Plus LLC - Series #ZIE3T dated August 1, 2022* | |
6.15 | Asset Management Agreement between Ark7 Properties Plus LLC - Series #JTDXY dated August 1, 2022* | |
6.16 | Asset Management Agreement between Ark7 and Ark7 Properties Plus LLC - Series #FTWDS LLC* | |
6.17 | Asset Management Agreement between Ark7 and Ark7 Properties Plus LLC - Series #P7FJ5 LLC* | |
6.18 | Asset Management Agreement between Ark7 and Ark7 Properties Plus LLC - Series #WRA7O* | |
6.19 | Asset Management Agreement between Ark7 and Ark7 Properties Plus LLC - Series #SOV9W* | |
6.20 | Asset Management Agreement between Ark7 and Ark7 Properties Plus LLC - Series #QGXF0* | |
6.21 | Inter-company Loan Agreement between Ark7 Inc. and Series #WGI3Z* | |
6.22 | Inter-company Loan Agreement between Ark7 Inc. and Series #0XYT6* | |
6.23 | Inter-company Loan Agreement between Ark7 Inc. and Series # ZIE3T* | |
6.24 | Inter-company Loan Agreement between Ark7 Inc. and Series #JTDXY* | |
6.25 | Inter-company Loan Agreement between Ark7 Properties Plus LLC and Ark7 Properties Plus LLC - Series #FTWDS LLC* | |
6.26 | Inter-company Loan Agreement between Ark7 Properties Plus LLC and Ark7 Properties Plus LLC - Series #P7FJ5 LLC* | |
6.27 | Inter-company Loan Agreement between Ark7 Properties Plus LLC and Series #WRA7O* | |
6.28 | Inter-company Loan Agreement between Ark7 Properties Plus LLC and Series #SOV9W* | |
6.29 | Inter-company Loan Agreement between Ark7 Properties Plus LLC and Series QGXF0* | |
6.30 | Form of Lease Agreement* | |
6.31 | Real Estate Purchase Agreement dated August 2, 2022 between Seller and Series #NHMOP* | |
6.32 | Real Estate Purchase Agreement dated August 15, 2022 between Seller and Series #RPFUV* | |
6.33 | Asset Management Agreement between Ark7 and Ark7 Properties Plus LLC - Series #NHMOP* | |
6.34 | Asset Management Agreement between Ark7 and Ark7 Properties Plus LLC - Series #RPFUV* | |
6.35 | Inter-company Loan Agreement between Ark7 Properties Plus and Series #NHMOP* | |
6.36 | Inter-company Loan Agreement between Ark7 Properties Plus and Series #RPFUV* | |
6.37 | Real Estate Purchase Agreement dated October 30, 2023 between Seller and Series #ORHOF* | |
6.38 | Real Estate Purchase Agreement dated December 20, 2023 between Seller and Series #DIVTU* | |
6.39 | Asset Management Agreement between Ark7 and Ark7 Properties Plus LLC - Series #ORHOF* | |
6.40 | Asset Management Agreement between Ark7 and Ark7 Properties Plus LLC - Series #DIVTU* | |
6.41 | Inter-company Loan Agreement between Ark7 Properties Plus and Series #ORHOF* | |
6.42 | Inter-company Loan Agreement between Ark7 Properties Plus and Series #DIVTU* | |
6.43 | Real Estate Purchase Agreement dated April 18, 2024 between Seller and Series #OJXLW* | |
6.44 | Real Estate Purchase Agreement dated May 20, 2024 between Seller and Series #ZAUH4* | |
6.45 | Real Estate Purchase Agreement dated May 20, 2024 between Seller and Series #EYPIR* | |
6.46 | Real Estate Purchase Agreement dated May 20, 2024 between Seller and Series #5VCTK* | |
6.47 | Real Estate Purchase Agreement dated May 24, 2024 between Seller and Series #ET8BV* | |
6.48 | Asset Management Agreement between Ark7 and Ark7 Properties Plus LLC - Series #OJXLW* | |
6.49 | Asset Management Agreement between Ark7 and Ark7 Properties Plus LLC - Series #ZAUH4* | |
6.50 | Asset Management Agreement between Ark7 and Ark7 Properties Plus LLC - Series #EYPIR* | |
6.51 | Asset Management Agreement between Ark7 and Ark7 Properties Plus LLC - Series #5VCTK* | |
6.52 | Asset Management Agreement between Ark7 and Ark7 Properties Plus LLC - Series #ET8BV* | |
6.53 | Inter-company Loan Agreement between Ark7 Properties Plus LLC and Series #OJXLW* | |
6.54 | Inter-company Loan Agreement between Ark7 Properties Plus LLC and Series #ZAUH4* | |
6.55 | Inter-company Loan Agreement between Ark7 Properties Plus LLC and Series #EYPIR* | |
6.56 | Inter-company Loan Agreement between Ark7 Properties Plus LLC and Series #5VCTK* | |
6.57 | Inter-company Loan Agreement between Ark7 Properties Plus LLC and Series #ET8BV* | |
9.1 | Letter regarding change in accountant from George Dimov CPA dated April 30, 2023* | |
9.2 | Letter regarding change in accountant from Flex Tax and Consulting Group dated June 6th, 2025* |
____________________
* Previously Filed
26
SIGNATURES
Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized in the State of California, on October 8, 2026.
Ark7 Properties Plus LLC a Delaware series limited liability company
By | /s/ Ark7 Inc., a Delaware corporation | |
| Its: Managing Member | |
|
|
|
| By: | /s/ Yizhen Zhao |
| Name: | Yizhen Zhao |
| Title: | President |
This report has been signed by the following persons in the capacities and on the dates indicated.
Ark7 Properties Plus LLC a Delaware series liability company
By | /s/ Ark7 Inc., a Delaware corporation | |
| Its: Managing Member | |
|
|
|
| By: | /s/ Yizhen Zhao |
| Name: | Yizhen Zhao |
| Title: | Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer of Ark7 Inc., Managing Member of Ark7 Properties Plus LLC |
| Date: | October 8, 2026 |
27