Belpointe PREP, LLC Segments Disclosure
Note 12 – Segment Reporting
We identify our operating segments based on the way we organize and evaluate our business, which consists of:
| ● | Commercial Segment — which includes properties such as office, retail centers, and warehouses (the “Commercial Segment”). For reporting purposes, we aggregate these asset types into the Commercial Segment given their similar characteristics in property management and leasing. | |
| ● | Mixed-use Segment — which includes properties that have both residential and retail spaces within a single real estate asset (the “Mixed-use Segment”). |
Our CODM reviews financial information presented on an operating segment basis for purposes of allocating resources, making decisions and assessing financial performance.
We believe that analyzing net operating income (loss) by segment (“Segment NOI”) provides a useful measure of our performance of our business, as it reflects the core rental operations of our operating real estate. Segment NOI is calculated as total revenues, less property expenses, excluding corporate level items, such as management fees incurred to our Manager (see Note 4 – Related Party Arrangements), depreciation and amortization, general and administrative expenses, interest expense, and other non-operating items.
The following table details the results of Segment NOI, reconciled to Loss before income taxes as reported on our consolidated statement of operations for the years ended December 31, 2025, and 2024 (amounts in thousands):
| Year Ended December 31, 2025 | Year Ended December 31, 2024 | |||||||||||||||||||||||
| Commercial Segment | Mixed-use Segment | Total | Commercial Segment | Mixed-use Segment | Total | |||||||||||||||||||
| Segment NOI: | ||||||||||||||||||||||||
| Rental revenue | $ | 936 | $ | 8,251 | $ | 9,187 | $ | 1,099 | $ | 1,576 | $ | 2,675 | ||||||||||||
| Property expenses | (2,077 | ) | (9,580 | ) | (11,657 | ) | (1,145 | ) | (2,989 | ) | (4,134 | ) | ||||||||||||
| Total Segment NOI | $ | (1,141 | ) | $ | (1,329 | ) | $ | (2,470 | ) | $ | (46 | ) | $ | (1,413 | ) | $ | (1,459 | ) | ||||||
| Non-segment items: | ||||||||||||||||||||||||
| Management fees, included in Property expenses | (3,309 | ) | (2,705 | ) | ||||||||||||||||||||
| General and administrative | (6,166 | ) | (5,111 | ) | ||||||||||||||||||||
| Interest expense | (17,441 | ) | (10,006 | ) | ||||||||||||||||||||
| Depreciation and amortization | (8,707 | ) | (4,215 | ) | ||||||||||||||||||||
| Impairment of real estate | (777 | ) | ||||||||||||||||||||||
| Interest income | 1,028 | 646 | ||||||||||||||||||||||
| Other expense | (46 | ) | (228 | ) | ||||||||||||||||||||
| Loss on extinguishment of debt | (2,960 | ) | ||||||||||||||||||||||
| Loss before income taxes | $ | (40,071 | ) | $ | (23,855 | ) | ||||||||||||||||||
The following table details the significant expense categories by segment for the years ended December 31, 2025, and 2024 (amounts in thousands):
| Years Ended December 31, | ||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||
| Commercial Segment | Mixed-use Segment | Total | Commercial Segment | Mixed-use Segment | Total | |||||||||||||||||||
| Property expenses: | ||||||||||||||||||||||||
| Real estate taxes | $ | 1,454 | $ | 2,741 | $ | 4,195 | $ | 628 | $ | 423 | $ | 1,051 | ||||||||||||
| Repairs & maintenance | 251 | 1,681 | 1,932 | 159 | 512 | 671 | ||||||||||||||||||
| Insurance | 292 | 1,466 | 1,758 | 266 | 399 | 665 | ||||||||||||||||||
| Management fees (1) | 45 | 1,602 | 1,647 | 45 | 812 | 857 | ||||||||||||||||||
| Utilities | 34 | 863 | 897 | 47 | 394 | 441 | ||||||||||||||||||
| Other property expenses | 1 | 1,227 | 1,228 | 449 | 449 | |||||||||||||||||||
| Total property expenses (1) | $ | 2,077 | $ | 9,580 | $ | 11,657 | $ | 1,145 | $ | 2,989 | $ | 4,134 | ||||||||||||
| (1) | Excludes management fees incurred to our Manager (see Note 4 – Related Party Arrangements). |
The following table details our total assets by segment as of December 31, 2025, and 2024 (amounts in thousands):
| December 31, | ||||||||
| 2025 | 2024 | |||||||
| Commercial Segment | $ | 97,038 | $ | 97,358 | ||||
| Mixed-use Segment | 443,301 | 395,642 | ||||||
| Other non-segment assets (1) | 23,857 | 24,591 | ||||||
| Total assets | $ | 564,196 | $ | 517,591 | ||||
| (1) | Other non-segment assets primarily consist of cash and cash equivalents not attributable to specific reportable segments. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 20, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.