Dear Investors,

I want to share a clear Q1 update on what we’re focused on and why we’re making a strategic shift to strengthen liquidity and improve our cash conversion cycle.

The strategy shift (what’s changing and what’s not)

Ground-up construction remains a core strategy because it continues to be our most profitable work when executed end-to-end. The trade-off is timing permitting, construction, inspections, and sellout extend the timeline and keep capital tied up longer.

That’s why, during Q1, we are laser-focused on expanding into a single-family residential fix-and-flip vertical as a complementary strategy. This is not a last-minute idea we’ve been building the systems, processes, and acquisition channels since Q2 of last year, and now we’re ready to deploy in phases.

Why we’re doing this now

This pivot is about one thing: speeding up capital recycling.

By adding shorter-duration projects primarily light renovations we can create more frequent revenue events and build liquidity faster. That liquidity supports fund-level stability and gives us more flexibility as we continue to operate and grow the overall portfolio.

How we’re executing it (phased rollout + direct-to-seller focus)

This fix-and-flip strategy is built on:

• Direct-to-seller sourcing to secure stronger purchase discounts
• Creating win-win outcomes by offering speed, certainty, and simplicity
• Targeting deals, we can complete quickly with controlled scope and predictable execution

The target profile we’re pursuing:

• Single-family homes with resale value under $1M
• Typical acquisition band $400K–$600K (deal dependent)
• Light renovations whenever possible
• Targeted execution cycle of ~90 days from renovation start to resale (market and scope dependent)

Timing

• Q1: Execution focus tightening systems, sourcing, underwriting discipline, and building an active pipeline
• Q2: Strategy goes live deploying into identified opportunities as acquisitions and scopes are finalized
• Goal: Gain measurable traction and increased velocity heading into early Q3

NJ single-family market snapshot (Essex, Morris, Union  December 2025)

We’re actively tracking market conditions in our core NJ counties to ensure our underwriting stays disciplined and exits remain liquid. Below are key absorption and demand indicators from the December 2025 HousingTRAC county reports:

Absorption / supply (Month’s Supply is HousingTRAC’s preferred absorption metric):

• Essex: 2.1 month’s supply | 468 homes in inventory | 220 contract sales | Buyer:Seller ratio 47/100
• Morris: 1.6 month’s supply | 426 homes in inventory | 273 contract sales | Buyer:Seller ratio 64/100
• Union: 1.6 month’s supply | 384 homes in inventory | 193 contract sales | Buyer:Seller ratio 61/100

What this means in plain terms: supply is still relatively tight (especially in Morris and Union), which supports liquidity for correctly priced renovated product while inventory levels are improving enough that we must stay disciplined on entry price and scope.

At the statewide level (NJ):

• Inventory is up year-over-year, and price growth is continuing but slowing reinforcing why our focus is shorter hold times, clean scopes, and conservative exit underwriting.

What you should expect from us next

As we roll this out, our operating priorities are simple and measurable:

1. Maintain discipline on purchase basis (margin created at acquisition, not assumed in appreciation)
2. Keep renovations light and controlled where possible
3. Move fast reduce hold time and increase capital recycling
4. Continue executing our ground-up pipeline while adding faster-turn projects to improve overall liquidity

This is a pivot we must implement now to gain traction by the start of Q3 and accelerate progress toward stronger liquidity and operational stability at the fund level.