# EDGAR Filing Document

**Accession Number:** 0001692951
**File Stem:** 0001692951-25-000198
**Filing Date:** 2025-8
**Character Count:** 308560
**Document Hash:** 7af1fdcc90200e37c93f2a56fb91820d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001692951-25-000198.hdr.sgml**: 20250814

**ACCESSION NUMBER**: 0001692951-25-000198

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 86

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250814

**DATE AS OF CHANGE**: 20250814

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Cottonwood Communities, Inc.
- **CENTRAL INDEX KEY:** 0001692951
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56165
- **FILM NUMBER:** 251219165

**BUSINESS ADDRESS:**
- **STREET 1:** 1245 BRICKYARD RD.
- **STREET 2:** SUITE 250
- **CITY:** SALT LAKE CITY
- **STATE:** UT
- **ZIP:** 84106
- **BUSINESS PHONE:** 801-278-0700

**MAIL ADDRESS:**
- **STREET 1:** 1245 BRICKYARD RD.
- **STREET 2:** SUITE 250
- **CITY:** SALT LAKE CITY
- **STATE:** UT
- **ZIP:** 84106

?xml version='1.0' encoding='ASCII'? cci-20250630

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**________________________________**

**FORM 10-Q**

**________________________________**

(Mark one)

🗷**QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2025**

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**FOR THE TRANSITION PERIOD FROM _________ TO _________**

Commission file number: 000-56165

**________________________________**

![cwlogoa06.gif](cci-20250630_g1.gif)

**Cottonwood Communities, Inc.**

**(Exact name of Registrant as specified in its charter)**

**________________________________**

---

| | |
|:---|:---|
| **Maryland** | **61-1805524** |
| (State or other jurisdiction of<br>incorporation or organization) | (I.R.S. Employer<br>Identification No.) |

---

**1245 E. Brickyard Road, Suite 250, Salt Lake City, UT 84106**

**(Address of principal executive offices) (Zip code)**

**(801) 278-0700**

**(Registrant's telephone number, including area code)**

**________________________________**

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered <br> <u>None</u> <u>N/A</u> <u>N/A</u>

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes 🗷 No ☐

------

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes 🗷 No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-Accelerated filer | 🗷 | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |

---

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No 🗷

As of August 8, 2025, there were 4,303,859 shares of the registrant's Class T common stock, 465,385 shares of the registrant's Class D common stock, 6,409,529 shares of the registrant's Class I common stock, and 18,815,829 shares of the registrant's Class A common stock outstanding.

------

<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

---

| | | | |
|:---|:---|:---|:---|
| **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** |
| **Table of Contents** | **Table of Contents** | **Table of Contents** | **Table of Contents** |
| PART I | <u>[FINANCIAL INFORMATION](#id69865b80f9a4c5da1e826485571e6cf_10)</u> | <u>[FINANCIAL INFORMATION](#id69865b80f9a4c5da1e826485571e6cf_10)</u> |  |
|  | Item 1. | <u>[Financial Statements](#id69865b80f9a4c5da1e826485571e6cf_13)</u> |  |
|  |  | <u>[Condensed Consolidated Balance Sheets as of](#id69865b80f9a4c5da1e826485571e6cf_16)[June 30](#id69865b80f9a4c5da1e826485571e6cf_16)[, 2025 (Unaudited) and December 31, 2024](#id69865b80f9a4c5da1e826485571e6cf_16)</u> | <u>[1](#id69865b80f9a4c5da1e826485571e6cf_16)</u> |
|  |  | <u>[Condensed Consolidated Statements of Operations for the Three](#id69865b80f9a4c5da1e826485571e6cf_19)[and Six](#id69865b80f9a4c5da1e826485571e6cf_19)[Months Ended](#id69865b80f9a4c5da1e826485571e6cf_19)[June 30,](#id69865b80f9a4c5da1e826485571e6cf_19)[2025 and 2024 (Unaudited)](#id69865b80f9a4c5da1e826485571e6cf_19)</u> | <u>[2](#id69865b80f9a4c5da1e826485571e6cf_19)</u> |
|  |  | <u>[Condensed Consolidated Statements of Stockholders' Equity for the Three](#id69865b80f9a4c5da1e826485571e6cf_22)[and Six](#id69865b80f9a4c5da1e826485571e6cf_22)[Months Ended](#id69865b80f9a4c5da1e826485571e6cf_22)[June 30](#id69865b80f9a4c5da1e826485571e6cf_22)[, 2025 and 2024 (Unaudited)](#id69865b80f9a4c5da1e826485571e6cf_22)</u> | <u>[3](#id69865b80f9a4c5da1e826485571e6cf_22)</u> |
|  |  | <u>[Condensed Consolidated Statements of Cash Flows for the](#id69865b80f9a4c5da1e826485571e6cf_25)[Six](#id69865b80f9a4c5da1e826485571e6cf_25)[Months Ended](#id69865b80f9a4c5da1e826485571e6cf_25)[June 30](#id69865b80f9a4c5da1e826485571e6cf_25)[, 2025 and 2024 (Unaudited)](#id69865b80f9a4c5da1e826485571e6cf_25)</u> | <u>[5](#id69865b80f9a4c5da1e826485571e6cf_25)</u> |
|  |  | <u>[Notes to Condensed Consolidated Financial Statements (Unaudited)](#id69865b80f9a4c5da1e826485571e6cf_28)</u> | <u>[8](#id69865b80f9a4c5da1e826485571e6cf_28)</u> |
|  | Item 2. | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#id69865b80f9a4c5da1e826485571e6cf_76)</u> | <u>[23](#id69865b80f9a4c5da1e826485571e6cf_76)</u> |
|  | Item 3. | <u>[Quantitative and Qualitative Disclosures About Market Risk](#id69865b80f9a4c5da1e826485571e6cf_121)</u> | <u>[41](#id69865b80f9a4c5da1e826485571e6cf_121)</u> |
|  | Item 4. | <u>[Controls and Procedures](#id69865b80f9a4c5da1e826485571e6cf_124)</u> | <u>[42](#id69865b80f9a4c5da1e826485571e6cf_124)</u> |
| PART II | <u>[OTHER INFORMATION](#id69865b80f9a4c5da1e826485571e6cf_127)</u> | <u>[OTHER INFORMATION](#id69865b80f9a4c5da1e826485571e6cf_127)</u> |  |
|  | Item 1. | <u>[Legal Proceedings](#id69865b80f9a4c5da1e826485571e6cf_130)</u> | <u>[43](#id69865b80f9a4c5da1e826485571e6cf_130)</u> |
|  | Item 1A. | <u>[Risk Factors](#id69865b80f9a4c5da1e826485571e6cf_133)</u> | <u>[43](#id69865b80f9a4c5da1e826485571e6cf_133)</u> |
|  | Item 2. | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#id69865b80f9a4c5da1e826485571e6cf_136)</u> | <u>[46](#id69865b80f9a4c5da1e826485571e6cf_136)</u> |
|  | Item 3. | <u>[Defaults Upon Senior Securities](#id69865b80f9a4c5da1e826485571e6cf_139)</u> | <u>[47](#id69865b80f9a4c5da1e826485571e6cf_139)</u> |
|  | Item 4. | <u>[Mine Safety Disclosures](#id69865b80f9a4c5da1e826485571e6cf_142)</u> | <u>[47](#id69865b80f9a4c5da1e826485571e6cf_142)</u> |
|  | Item 5. | <u>[Other Information](#id69865b80f9a4c5da1e826485571e6cf_145)</u> | <u>[47](#id69865b80f9a4c5da1e826485571e6cf_145)</u> |
|  | Item 6. | <u>[Exhibits](#id69865b80f9a4c5da1e826485571e6cf_148)</u> | <u>[49](#id69865b80f9a4c5da1e826485571e6cf_148)</u> |
|  | <u>[Signatures](#id69865b80f9a4c5da1e826485571e6cf_151)</u> |  | <u>[51](#id69865b80f9a4c5da1e826485571e6cf_151)</u> |

---

------

<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

**PART I - FINANCIAL INFORMATION**

**Item 1. Financial Statements**

---

| | | |
|:---|:---|:---|
| **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** |
| **Condensed Consolidated Balance Sheets** | **Condensed Consolidated Balance Sheets** | **Condensed Consolidated Balance Sheets** |
| (in thousands, except share and per share data) | (in thousands, except share and per share data) | (in thousands, except share and per share data) |
|  | **June 30, 2025** | **December 31, 2024** |
| **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;Real estate assets, net | $1413322 | $1679497 |
| &nbsp;&nbsp;&nbsp;Investments in unconsolidated real estate entities | 114008 | 111556 |
| &nbsp;&nbsp;&nbsp;Investments in real estate-related loans, net | 37018 | 30027 |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | 128898 | 59877 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 25929 | 33560 |
| &nbsp;&nbsp;&nbsp;Other assets | 38645 | 29338 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $1757820 | $1943855 |
| **Liabilities, Equity, and Noncontrolling Interests** |  |  |
| Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Mortgage notes and revolving credit facility, net | $919434 | $1151514 |
| &nbsp;&nbsp;&nbsp;Construction loans, net | 44052 | 44046 |
| &nbsp;&nbsp;&nbsp;Land loans, net | 19100 |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, net | 238488 | 221072 |
| &nbsp;&nbsp;&nbsp;Unsecured promissory notes, net | 20490 | 21350 |
| &nbsp;&nbsp;&nbsp;Accounts payable, accrued expenses and other liabilities | 61273 | 60944 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 1302837 | 1498926 |
| Commitments and contingencies (Note 13) |  |  |
| Equity and noncontrolling interests |  |  |
| Stockholders' equity |  |  |
| &nbsp;&nbsp;Series A Convertible Preferred Stock, $0.01 par value, 15,000,000 shares authorized at $10.00 per share; 9,100,307 and 5,825,457 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively. | 80126 | 50668 |
| &nbsp;&nbsp;Common stock, Class T shares, $0.01 par value, 275,000,000 shares authorized; 4,312,693 and 4,289,506 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively. | 43 | 43 |
| &nbsp;&nbsp;Common stock, Class D shares, $0.01 par value, 275,000,000 shares authorized; 465,874 and 386,477 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively. | 5 | 4 |
| &nbsp;&nbsp;Common stock, Class I shares, $0.01 par value, 275,000,000 shares authorized; 6,337,676 and 6,162,803 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively. | 63 | 62 |
| &nbsp;&nbsp;Common stock, Class A shares, $0.01 par value, 125,000,000 shares authorized; 19,036,891 and 20,358,844 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively. | 184 | 197 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 363846 | 372611 |
| &nbsp;&nbsp;&nbsp;Accumulated distributions - Series A Convertible Preferred | (5272) | (2255) |
| &nbsp;&nbsp;&nbsp;Accumulated distributions - common stock | (95984) | (84797) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (93808) | (105717) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 249203 | 230816 |
| Noncontrolling interests |  |  |
| &nbsp;&nbsp;Limited partners | 178590 | 186032 |
| &nbsp;&nbsp;Partially owned entities | 27190 | 28081 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total noncontrolling interests | 205780 | 214113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total equity and noncontrolling interests | 454983 | 444929 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities, equity and noncontrolling interests | $1757820 | $1943855 |
| *See accompanying notes to condensed consolidated financial statements* | *See accompanying notes to condensed consolidated financial statements* | *See accompanying notes to condensed consolidated financial statements* |

---

Note: The condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024 include assets of consolidated variable interest entities, or VIEs of $491.2 million and $498.9 million, respectively, and liabilities of $409.5 million and $409.7 million, respectively. Refer to <u>[Note 11](#id69865b80f9a4c5da1e826485571e6cf_58)</u> for additional discussion of our VIEs.

------

<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** |
| **Condensed Consolidated Statements of Operations** | **Condensed Consolidated Statements of Operations** | **Condensed Consolidated Statements of Operations** | **Condensed Consolidated Statements of Operations** | **Condensed Consolidated Statements of Operations** |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
| (in thousands, except share and per share data) | (in thousands, except share and per share data) | (in thousands, except share and per share data) | (in thousands, except share and per share data) | (in thousands, except share and per share data) |
|  | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| **Revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Rental and other property revenues | $35185 | $37066 | $72493 | $71421 |
| &nbsp;&nbsp;&nbsp;Property management revenues | 1659 | 2043 | 3451 | 4382 |
| &nbsp;&nbsp;&nbsp;Other revenues | 2140 | 989 | 3706 | 1774 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 38984 | 40098 | 79650 | 77577 |
| **Operating expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Property operations expense | 13543 | 13433 | 27125 | 27465 |
| &nbsp;&nbsp;&nbsp;Property management expense | 4785 | 4559 | 9367 | 9137 |
| &nbsp;&nbsp;&nbsp;Asset management fee | 3032 | 3129 | 6123 | 6273 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 14236 | 17199 | 29186 | 32153 |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 2930 | 1178 | 5489 | 2945 |
| &nbsp;&nbsp;&nbsp;Impairment loss |  |  | 957 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 38526 | 39498 | 78247 | 77973 |
| Income (loss) from operations | 458 | 600 | 1403 | (396) |
| &nbsp;&nbsp;&nbsp;Equity in earnings of unconsolidated real estate entities | 1516 | 2250 | 2885 | 3618 |
| &nbsp;&nbsp;&nbsp;Interest income | 481 | 495 | 815 | 968 |
| &nbsp;&nbsp;&nbsp;Interest expense | (18312) | (21257) | (38359) | (41675) |
| &nbsp;&nbsp;Loss on debt extinguishment | (1634) | (201) | (1732) | (1440) |
| &nbsp;&nbsp;Gain on sale of real estate assets | 56834 | 5 | 64766 | 26643 |
| &nbsp;&nbsp;Gain on legal settlement |  |  | 400 |  |
| &nbsp;&nbsp;Other (expense) income | (3144) | (1105) | (7118) | 117 |
| Income (loss) before income taxes | 36199 | (19213) | 23060 | (12165) |
| &nbsp;&nbsp;Income tax benefit (expense) | 295 | (47) | 420 | (32) |
| &nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss)** | 36494 | (19260) | 23480 | (12197) |
| Net (income) loss attributable to noncontrolling interests: |  |  |  |  |
| &nbsp;&nbsp;Limited partners | (18720) | 9051 | (12315) | 5195 |
| &nbsp;&nbsp;Partially owned entities | 408 | 861 | 744 | 1573 |
| **Net income (loss) attributable to controlling interests** | 18182 | (9348) | 11909 | (5429) |
| &nbsp;&nbsp;Less: preferred stock dividends | 1684 | 471 | 3017 | 614 |
| **Net income (loss) attributable to common stockholders** | $16498 | $(9819) | $8892 | $(6043) |
| Weighted-average common shares outstanding - basic | 31018873 | 31647211 | 31279782 | 31614142 |
| Weighted-average common shares outstanding - diluted | 38574476 | 31647211 | 31279782 | 31614142 |
| Net earnings (losses) per common share - basic | $0.53 | $(0.31) | $0.28 | $(0.19) |
| Net earnings (losses) per common share - diluted | $0.47 | $(0.31) | $0.28 | $(0.19) |
| *See accompanying notes to condensed consolidated financial statements* | *See accompanying notes to condensed consolidated financial statements* | *See accompanying notes to condensed consolidated financial statements* | *See accompanying notes to condensed consolidated financial statements* | *See accompanying notes to condensed consolidated financial statements* |

---

------

<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** |
| **Condensed Consolidated Statements of Stockholders' Equity** | **Condensed Consolidated Statements of Stockholders' Equity** | **Condensed Consolidated Statements of Stockholders' Equity** | **Condensed Consolidated Statements of Stockholders' Equity** | **Condensed Consolidated Statements of Stockholders' Equity** | **Condensed Consolidated Statements of Stockholders' Equity** | **Condensed Consolidated Statements of Stockholders' Equity** | **Condensed Consolidated Statements of Stockholders' Equity** | **Condensed Consolidated Statements of Stockholders' Equity** | **Condensed Consolidated Statements of Stockholders' Equity** | **Condensed Consolidated Statements of Stockholders' Equity** | **Condensed Consolidated Statements of Stockholders' Equity** | **Condensed Consolidated Statements of Stockholders' Equity** | **Condensed Consolidated Statements of Stockholders' Equity** |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
| (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) |
|  |  | **Cottonwood Communities, Inc. Stockholders' Equity** | **Cottonwood Communities, Inc. Stockholders' Equity** | **Cottonwood Communities, Inc. Stockholders' Equity** | **Cottonwood Communities, Inc. Stockholders' Equity** | **Cottonwood Communities, Inc. Stockholders' Equity** | **Cottonwood Communities, Inc. Stockholders' Equity** | **Cottonwood Communities, Inc. Stockholders' Equity** | **Cottonwood Communities, Inc. Stockholders' Equity** | **Cottonwood Communities, Inc. Stockholders' Equity** | **Noncontrolling interests** | **Noncontrolling interests** |  |
|  | **Series A Convertible Preferred Stock** | **Par Value - Common Stock** | **Par Value - Common Stock** | **Par Value - Common Stock** | **Par Value - Common Stock** | **Additional Paid-In Capital** | **Accumulated Distributions** | **Accumulated Distributions** | **Accumulated Deficit** | **Total Stockholders' Equity** | **Limited Partners** | **Partially Owned Entities** | **Total Equity and Noncontrolling Interests** |
|  | **Series A Convertible Preferred Stock** | **Class T** | **Class D** | **Class I** | **Class A** | **Additional Paid-In Capital** | **Convertible Preferred** | **Common Stock** | **Accumulated Deficit** | **Total Stockholders' Equity** | **Limited Partners** | **Partially Owned Entities** | **Total Equity and Noncontrolling Interests** |
| **Balance at January 1, 2025** | $50668 | $43 | $4 | $62 | $197 | $372611 | $(2255) | $(84797) | $(105717) | $230816 | $186032 | $28081 | $444929 |
| &nbsp;&nbsp;Issuance of Series A Convertible Preferred Stock | 19899 |  |  |  |  |  |  |  |  | 19899 |  |  | 19899 |
| &nbsp;&nbsp;Offering Costs - Series A Convertible Preferred Stock | (1621) |  |  |  |  |  |  |  |  | (1621) |  |  | (1621) |
| &nbsp;&nbsp;Series A Convertible Preferred Stock repurchased | (450) |  |  |  |  |  |  |  |  | (450) |  |  | (450) |
| &nbsp;&nbsp;Issuance of common stock |  | 1 |  | 5 |  | 7660 |  |  |  | 7666 |  |  | 7666 |
| &nbsp;&nbsp;Offering costs - common stock |  |  |  |  |  | (489) |  |  |  | (489) |  |  | (489) |
| &nbsp;&nbsp;Distribution reinvestment |  |  |  |  |  | 871 |  |  |  | 871 |  |  | 871 |
| &nbsp;&nbsp;Common stock/CROP Units repurchased |  | (1) |  | (2) | (7) | (11758) |  |  |  | (11768) | (90) |  | (11858) |
| &nbsp;&nbsp;Exchanges and transfers |  |  |  | 1 |  | 1792 |  |  |  | 1793 | (1793) |  |  |
| &nbsp;&nbsp;Share-based compensation |  |  |  |  |  | 93 |  |  |  | 93 | 949 |  | 1042 |
| &nbsp;&nbsp;Distributions to investors |  |  |  |  |  |  | (1333) | (5648) |  | (6981) | (5893) | (93) | (12967) |
| &nbsp;&nbsp;Net loss |  |  |  |  |  |  |  |  | (6273) | (6273) | (6405) | (336) | (13014) |
| &nbsp;&nbsp;Reallocation of stockholders' equity and noncontrolling interests |  |  |  |  |  | 782 |  |  |  | 782 | (782) |  |  |
| **Balance at March 31, 2025** | $68496 | $43 | $4 | $66 | $190 | $371562 | $(3588) | $(90445) | $(111990) | $234338 | $172018 | $27652 | $434008 |
| &nbsp;&nbsp;Issuance of Series A Convertible Preferred Stock | 12693 |  |  |  |  |  |  |  |  | 12693 |  |  | 12693 |
| &nbsp;&nbsp;Offering Costs - Series A Convertible Preferred Stock | (1063) |  |  |  |  |  |  |  |  | (1063) |  |  | (1063) |
| &nbsp;&nbsp;Issuance of common stock |  | 1 | 1 | 1 |  | 2815 |  |  |  | 2818 |  |  | 2818 |
| &nbsp;&nbsp;Offering costs - common stock |  |  |  |  |  | (491) |  |  |  | (491) |  |  | (491) |
| &nbsp;&nbsp;Distribution reinvestment |  |  |  |  |  | 873 |  |  |  | 873 |  |  | 873 |
| &nbsp;&nbsp;Common stock/CROP Units repurchased |  | (1) |  | (7) | (6) | (17475) |  |  |  | (17489) | (600) |  | (18089) |
| &nbsp;&nbsp;Exchanges and transfers |  |  |  | 3 |  | 3640 |  |  |  | 3643 | (3643) |  |  |
| &nbsp;&nbsp;Share-based compensation |  |  |  |  |  | 76 |  |  |  | 76 | 780 |  | 856 |
| &nbsp;&nbsp;Distributions to investors |  |  |  |  |  |  | (1684) | (5539) |  | (7223) | (5839) | (54) | (13116) |
| &nbsp;&nbsp;Net income (loss) |  |  |  |  |  |  |  |  | 18182 | 18182 | 18720 | (408) | 36494 |
| &nbsp;&nbsp;Reallocation of stockholders' equity and noncontrolling interests |  |  |  |  |  | 2846 |  |  |  | 2846 | (2846) |  |  |
| **Balance at June 30, 2025** | $80126 | $43 | $5 | $63 | $184 | $363846 | $(5272) | $(95984) | $(93808) | $249203 | $178590 | $27190 | $454983 |

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

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| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** |
| **Condensed Consolidated Statements of Stockholders' Equity (Continued)** | **Condensed Consolidated Statements of Stockholders' Equity (Continued)** | **Condensed Consolidated Statements of Stockholders' Equity (Continued)** | **Condensed Consolidated Statements of Stockholders' Equity (Continued)** | **Condensed Consolidated Statements of Stockholders' Equity (Continued)** | **Condensed Consolidated Statements of Stockholders' Equity (Continued)** | **Condensed Consolidated Statements of Stockholders' Equity (Continued)** | **Condensed Consolidated Statements of Stockholders' Equity (Continued)** | **Condensed Consolidated Statements of Stockholders' Equity (Continued)** | **Condensed Consolidated Statements of Stockholders' Equity (Continued)** | **Condensed Consolidated Statements of Stockholders' Equity (Continued)** | **Condensed Consolidated Statements of Stockholders' Equity (Continued)** | **Condensed Consolidated Statements of Stockholders' Equity (Continued)** | **Condensed Consolidated Statements of Stockholders' Equity (Continued)** |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
| (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) | (in thousands) |
|  |  | **Cottonwood Communities, Inc. Stockholders' Equity** | **Cottonwood Communities, Inc. Stockholders' Equity** | **Cottonwood Communities, Inc. Stockholders' Equity** | **Cottonwood Communities, Inc. Stockholders' Equity** | **Cottonwood Communities, Inc. Stockholders' Equity** | **Cottonwood Communities, Inc. Stockholders' Equity** | **Cottonwood Communities, Inc. Stockholders' Equity** | **Cottonwood Communities, Inc. Stockholders' Equity** | **Cottonwood Communities, Inc. Stockholders' Equity** | **Noncontrolling interests** | **Noncontrolling interests** |  |
|  | **Series A Convertible Preferred Stock** | **Par Value - Common Stock** | **Par Value - Common Stock** | **Par Value - Common Stock** | **Par Value - Common Stock** | **Additional Paid-In Capital** | **Accumulated Distributions** | **Accumulated Distributions** | **Accumulated Deficit** | **Total Stockholders' Equity** | **Limited Partners** | **Partially Owned Entities** | **Total Equity and Noncontrolling Interests** |
|  | **Series A Convertible Preferred Stock** | **Class T** | **Class D** | **Class I** | **Class A** | **Additional Paid-In Capital** | **Convertible Preferred** | **Common Stock** | **Accumulated Deficit** | **Total Stockholders' Equity** | **Limited Partners** | **Partially Owned Entities** | **Total Equity and Noncontrolling Interests** |
| **Balance at January 1, 2024** | $1569 | $39 | $2 | $43 | $226 | $373954 | $(14) | $(62114) | $(94761) | $218944 | $221617 | $30986 | $471547 |
| &nbsp;&nbsp;Issuance of Series A Convertible Preferred Stock | 13608 |  |  |  |  |  |  |  |  | 13608 |  |  | 13608 |
| &nbsp;&nbsp;Offering Costs - Series A Convertible Preferred Stock | (1713) |  |  |  |  |  |  |  |  | (1713) |  |  | (1713) |
| &nbsp;&nbsp;Issuance of common stock |  | 1 |  | 3 |  | 5976 |  |  |  | 5980 |  |  | 5980 |
| &nbsp;&nbsp;Offering costs - common stock |  |  |  |  |  | (88) |  |  |  | (88) |  |  | (88) |
| &nbsp;&nbsp;Distribution reinvestment |  |  |  |  |  | 724 |  |  |  | 724 |  |  | 724 |
| &nbsp;&nbsp;Common stock/CROP Units repurchased |  | (1) |  | (1) | (7) | (12575) |  |  |  | (12584) | (1968) |  | (14552) |
| &nbsp;&nbsp;Exchanges and transfers |  |  |  | 1 |  | 612 |  |  |  | 613 | (613) |  |  |
| &nbsp;&nbsp;CROP Units issued for real estate interests |  |  |  |  |  |  |  |  |  |  | 3322 |  | 3322 |
| &nbsp;&nbsp;Share-based compensation |  |  |  |  |  | 53 |  |  |  | 53 | 929 |  | 982 |
| &nbsp;&nbsp;Distributions to investors |  |  |  |  |  |  | (143) | (5656) |  | (5799) | (5887) | (39) | (11725) |
| &nbsp;&nbsp;Net income (loss) |  |  |  |  |  |  |  |  | 3919 | 3919 | 3856 | (712) | 7063 |
| &nbsp;&nbsp;Reallocation of stockholders' equity and noncontrolling interests |  |  |  |  |  | 1914 |  |  |  | 1914 | (1914) |  |  |
| **Balance at March 31, 2024** | $13464 | $39 | $2 | $46 | $219 | $370570 | $(157) | $(67770) | $(90842) | $225571 | $219342 | $30235 | $475148 |
| &nbsp;&nbsp;Issuance of Series A Convertible Preferred Stock | 12969 |  |  |  |  |  |  |  |  | 12969 |  |  | 12969 |
| &nbsp;&nbsp;Offering Costs - Series A Convertible Preferred Stock | (1570) |  |  |  |  |  |  |  |  | (1570) |  |  | (1570) |
| &nbsp;&nbsp;Issuance of common stock |  | 3 | 1 | 6 |  | 11714 |  |  |  | 11724 |  |  | 11724 |
| &nbsp;&nbsp;Offering costs - common stock |  |  |  |  |  | (1048) |  |  |  | (1048) |  |  | (1048) |
| &nbsp;&nbsp;Distribution reinvestment |  |  |  |  |  | 774 |  |  |  | 774 |  |  | 774 |
| &nbsp;&nbsp;Common stock/CROP Units repurchased |  | (1) |  | (1) | (9) | (13413) |  |  |  | (13424) | (1848) |  | (15272) |
| &nbsp;&nbsp;Exchanges and transfers |  |  |  | 4 |  | 5364 |  |  |  | 5368 | (5368) |  |  |
| &nbsp;&nbsp;CROP Units issued for real estate interests |  |  |  |  |  |  |  |  |  |  | 10891 |  | 10891 |
| &nbsp;&nbsp;Share-based compensation |  |  |  |  |  | 70 |  |  |  | 70 | 947 |  | 1017 |
| &nbsp;&nbsp;Distributions to investors |  |  |  |  |  |  | (471) | (5672) |  | (6143) | (6016) | (27) | (12186) |
| &nbsp;&nbsp;Net loss |  |  |  |  |  |  |  |  | (9348) | (9348) | (9051) | (861) | (19260) |
| &nbsp;&nbsp;Reallocation of stockholders' equity and noncontrolling interests |  |  |  |  |  | 1111 |  |  |  | 1111 | (1111) |  |  |
| **Balance at June 30, 2024** | $24863 | $41 | $3 | $55 | $210 | $375142 | $(628) | $(73442) | $(100190) | $226054 | $207786 | $29347 | $463187 |
| &nbsp;&nbsp;*See accompanying notes to condensed consolidated financial statements* | &nbsp;&nbsp;*See accompanying notes to condensed consolidated financial statements* | &nbsp;&nbsp;*See accompanying notes to condensed consolidated financial statements* | &nbsp;&nbsp;*See accompanying notes to condensed consolidated financial statements* | &nbsp;&nbsp;*See accompanying notes to condensed consolidated financial statements* | &nbsp;&nbsp;*See accompanying notes to condensed consolidated financial statements* | &nbsp;&nbsp;*See accompanying notes to condensed consolidated financial statements* | &nbsp;&nbsp;*See accompanying notes to condensed consolidated financial statements* | &nbsp;&nbsp;*See accompanying notes to condensed consolidated financial statements* | &nbsp;&nbsp;*See accompanying notes to condensed consolidated financial statements* | &nbsp;&nbsp;*See accompanying notes to condensed consolidated financial statements* |  |  |  |

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

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| | | |
|:---|:---|:---|
| **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** |
| **Condensed Consolidated Statements of Cash Flows** | **Condensed Consolidated Statements of Cash Flows** | **Condensed Consolidated Statements of Cash Flows** |
| (Unaudited) | (Unaudited) | (Unaudited) |
| (in thousands) | (in thousands) | (in thousands) |
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| Net income (loss) | $23480 | $(12197) |
| Adjustments to reconcile net income (loss) to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 29186 | 32153 |
| &nbsp;&nbsp;Gain on sale of real estate assets | (64766) | (26643) |
| &nbsp;&nbsp;Share-based compensation | 1898 | 1999 |
| &nbsp;&nbsp;Deferred taxes | (484) |  |
| &nbsp;&nbsp;Amortization of debt issuance costs, discounts and premiums | 3574 | 2990 |
| &nbsp;&nbsp;Paid-in-kind interest on construction loans |  | 2265 |
| &nbsp;&nbsp;Derivative fair value adjustments | 1037 | 1021 |
| &nbsp;&nbsp;Loss on debt extinguishment | 1732 | 1440 |
| &nbsp;&nbsp;Impairment loss | 957 |  |
| &nbsp;&nbsp;Other operating | 122 | (298) |
| &nbsp;&nbsp;Equity in earnings of unconsolidated real estate entities | (2885) | (3618) |
| &nbsp;&nbsp;Distributions from unconsolidated real estate entities - return on capital | 1433 | 3157 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Other assets | (5604) | (5375) |
| &nbsp;&nbsp;&nbsp;Accounts payable, accrued expenses and other liabilities | 2269 | 8959 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by operating activities | (8051) | 5853 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash acquired on consolidation of real estate |  | 4485 |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of real estate assets, net | 327031 | 82434 |
| &nbsp;&nbsp;&nbsp;Promissory note to buyer of real estate assets | (7000) |  |
| &nbsp;&nbsp;&nbsp;Capital expenditures and development activities | (25677) | (27586) |
| &nbsp;&nbsp;&nbsp;Investments in unconsolidated real estate entities | (1000) | (1314) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of investments in unconsolidated real estate entities |  | 9900 |
| &nbsp;&nbsp;Contributions to investments in real estate-related loans | (6876) | (15544) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by investing activities | 286478 | 52375 |

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

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| | | |
|:---|:---|:---|
| **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** |
| **Condensed Consolidated Statements of Cash Flows (Continued)** | **Condensed Consolidated Statements of Cash Flows (Continued)** | **Condensed Consolidated Statements of Cash Flows (Continued)** |
| (Unaudited) | (Unaudited) | (Unaudited) |
| (in thousands) | (in thousands) | (in thousands) |
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Principal payments on mortgage notes | (358) | (231) |
| &nbsp;&nbsp;&nbsp;Borrowings from revolving credit facility | 11000 | 63981 |
| &nbsp;&nbsp;&nbsp;Repayments on revolving credit facility | (67264) | (42000) |
| &nbsp;&nbsp;&nbsp;Borrowings under mortgage notes | 42556 | 103361 |
| &nbsp;&nbsp;&nbsp;Repayments of mortgage notes | (221405) | (48458) |
| &nbsp;&nbsp;&nbsp;Deferred financing costs on mortgage notes |  | (806) |
| &nbsp;&nbsp;&nbsp;Borrowings from construction loans | 6 | 8312 |
| &nbsp;&nbsp;&nbsp;Repayments of construction loans |  | (96681) |
| &nbsp;&nbsp;&nbsp;Payoff of preferred interest liability |  | (15300) |
| &nbsp;&nbsp;&nbsp;Borrowings under land loans | 19240 |  |
| &nbsp;&nbsp;&nbsp;Deferred financing costs on land loans | (222) |  |
| &nbsp;&nbsp;&nbsp;Repayments of related party notes assumed on acquisition |  | (1332) |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of preferred stock | 18502 | 10969 |
| &nbsp;&nbsp;&nbsp;Redemption of preferred stock | (1013) | (2543) |
| &nbsp;&nbsp;&nbsp;Offering costs paid on issuance of preferred stock | (1780) | (1217) |
| &nbsp;&nbsp;&nbsp;Repurchase of unsecured promissory notes | (843) | (755) |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of Series A Convertible Preferred Stock | 32708 | 25851 |
| &nbsp;&nbsp;&nbsp;Offering costs paid on issuance of Series A Convertible Preferred Stock | (2682) | (3214) |
| &nbsp;&nbsp;&nbsp;Repurchase of Series A Convertible Preferred Stock | (450) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock | 10484 | 17703 |
| &nbsp;&nbsp;&nbsp;Repurchase of common stock/CROP Units | (30222) | (35684) |
| &nbsp;&nbsp;&nbsp;Offering costs paid on issuance of common stock | (1092) | (1506) |
| &nbsp;&nbsp;&nbsp;Distributions to convertible preferred stockholders | (2797) | (448) |
| &nbsp;&nbsp;&nbsp;Distributions to common stockholders | (9504) | (9857) |
| &nbsp;&nbsp;&nbsp;Distributions to noncontrolling interests - limited partners | (11754) | (11853) |
| &nbsp;&nbsp;&nbsp;Distributions to noncontrolling interests - partially owned entities | (147) | (65) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (217037) | (41773) |
| **Net increase in cash and cash equivalents and restricted cash** | 61390 | 16455 |
| Cash and cash equivalents and restricted cash, beginning of period | 93437 | 90813 |
| **Cash and cash equivalents and restricted cash, end of period** | $154827 | $107268 |
| **Reconciliation of cash and cash equivalents and restricted cash to the condensed consolidated balance sheets:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $128898 | $73521 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 25929 | 33747 |
| Total cash and cash equivalents and restricted cash | $154827 | $107268 |

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

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| | | |
|:---|:---|:---|
| **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** | **Cottonwood Communities, Inc.** |
| **Condensed Consolidated Statements of Cash Flows (Continued)** | **Condensed Consolidated Statements of Cash Flows (Continued)** | **Condensed Consolidated Statements of Cash Flows (Continued)** |
| (Unaudited) | (Unaudited) | (Unaudited) |
| (in thousands) | (in thousands) | (in thousands) |
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
|  | **2025** | **2024** |
| **Supplemental disclosure of non-cash investing and financing activities:** |  |  |
| &nbsp;&nbsp;Changes in accrued deferred offering costs | $(146) | $(339) |
| &nbsp;&nbsp;Distributions reinvested in common stock | 1744 | 1498 |
| &nbsp;&nbsp;Changes in accrued capital expenditures | (55) | (12047) |
| &nbsp;&nbsp;Changes in accrued redemptions | (574) | (5509) |
| *Cottonwood Lighthouse Point Acquisition* |  |  |
| &nbsp;&nbsp;Real estate assets, net of cash acquired | $— | $86961 |
| &nbsp;&nbsp;Mortgage note assumed |  | (47581) |
| &nbsp;&nbsp;Other assets and liabilities assumed, net |  | (2426) |
| &nbsp;&nbsp;Value of CROP Units issued for interests acquired |  | 3322 |
| *Alpha Mill Acquisition* |  |  |
| &nbsp;&nbsp;Real estate assets, net of cash acquired | $— | $73253 |
| &nbsp;&nbsp;Mortgage note assumed |  | (38295) |
| &nbsp;&nbsp;Other assets and liabilities assumed, net |  | 181 |
| &nbsp;&nbsp;Value of CROP Units issued for interests acquired |  | 10891 |
| *See accompanying notes to condensed consolidated financial statements* |  |  |

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**Cottonwood Communities, Inc.**

**Notes to Condensed Consolidated Financial Statements**

(Unaudited)

**1. Organization and Business**

Cottonwood Communities, Inc. (the "Company," "we," "us," or "our") invests in a diverse portfolio of multifamily apartment communities and multifamily real estate-related assets throughout the United States. We are externally managed by our advisor, CC Advisors III, LLC ("CC Advisors III"), a wholly owned subsidiary of our sponsor, Cottonwood Communities Advisors, LLC ("CCA"). We were incorporated in Maryland in 2016. We own all of our assets through our operating partnership, Cottonwood Residential O.P., LP ("CROP"), and its subsidiaries. We are the sole member of the sole general partner of CROP and own general partner interests in CROP alongside third-party limited partners.

We are a non-listed, perpetual-life, net asset value ("NAV") real estate investment trust ("REIT"). We generally will not be subject to U.S. federal income taxes on our taxable income to the extent we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT.

We conducted an initial public offering of common stock (the "Initial Offering") from August 13, 2018 to December 22, 2020, from which we raised gross proceeds of $122.0 million. In November 2021, we registered with the SEC an offering of up to $1.0 billion of shares of common stock (the "Follow-on Offering"), consisting of up to $900.0 million in shares of common stock offered in a primary offering (the "Primary Offering") and $100.0 million in shares under our distribution reinvestment plan (the "DRP Offering"). As of June 30, 2025, we have raised gross proceeds of $253.8 million from the Follow-on Offering, including $9.6 million proceeds from the DRP Offering. We intend to conduct a continuous public offering of our common stock that will not have a predetermined duration, subject to continued compliance with the rules and regulations of the Securities and Exchange Commission (the "SEC") and applicable state laws.

Since November 2019, we have periodically conducted private placement offerings exempt from registration under the Securities Act pursuant to which we have offered for sale to accredited investors preferred stock at a purchase price of $10.00 per share of preferred stock (the "Private Offerings"). As of June 30, 2025, we have raised gross proceeds of $345.8 million from the Private Offerings. Additional information about our preferred stock is included in <u>[Note 8](#id69865b80f9a4c5da1e826485571e6cf_49)</u> and <u>[Note 9](#id69865b80f9a4c5da1e826485571e6cf_52)</u> to these condensed consolidated financial statements. In addition, our board of directors has approved a program for us, through CROP, to sell beneficial interests in specific Delaware statutory trusts holding real properties (the "DST Program") through private placement offerings exempt from registration under the Securities Act. We expect to commence our first offering pursuant to this DST Program in the third quarter of 2025.

We own and operate a diverse portfolio of investments in multifamily apartment communities located in targeted markets throughout the United States. As of June 30, 2025, our portfolio consists of ownership interests or structured investment interests in 33 multifamily apartment communities with a total of 8,966 units, including 198 units in one multifamily apartment community under construction and another 1,307 units in six multifamily apartment communities in which we have a structured investment interest. In addition, we have an ownership interest in four land sites. We operate as one reportable segment comprising multifamily real estate.

*Proposed Merger with RealSource*

On June 25, 2025, we, CROP and our wholly owned subsidiary ("Merger Sub"), entered into an Agreement and Plan of Merger (the "Merger Agreement") with RealSource Properties, Inc. ("RS") and RealSource Properties OP, LP, a subsidiary and the operating partnership of RS ("RSOP," and together with RS, the "RS Parties"). The merger is a stock-for-stock and unit-for-unit transaction whereby, subject to the terms and conditions of the Merger Agreement, RS will be merged with and into Merger Sub and RSOP will be merged with and into CROP.

If the closing conditions are met or waived, the merger will result in us acquiring the 11-property, 3,565-unit portfolio of multifamily assets of the RS Parties. In connection with the merger, we will also acquire third-party property management contracts on seven additional properties totaling 1,353 units.

At the effective time of the merger with and into Merger Sub, each issued and outstanding share of RS common stock, $0.01 par value per share ("RS Common Stock"), that is not cancelled and retired under the Merger Agreement will be converted into the right to receive 0.8893 shares of our Class I common stock, subject to adjustment as described in the Merger Agreement. As of June 25, 2025, there were 211,495.63 shares of RS Common Stock issued and outstanding. At the effective time of the merger with and into CROP, each issued and outstanding common unit of limited partnership interests in RSOP ("RSOP Partnership Unit") that is not cancelled and retired under the Merger Agreement will be converted into the right to receive common units of limited partnership interest in at the same ratio as the common stock. As of June 25, 2025, there were 18,285,480.60 RSOP Partnership Units outstanding. As the exchange ratio is subject to adjustment both prior to and after the

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completion of the merger, security holders of the RS Parties may receive less than or more than 0.8993 shares or units of the Company or CROP, as applicable.

The obligations of each party to consummate the merger are subject to a number of conditions, including receipt of the approval of the RS security holders, and no assurances can be provided that we will successfully complete the merger.

During the six months ended June 30, 2025, we expensed $0.8 million of professional fees in connection with the pending merger.

**2.&nbsp;&nbsp;&nbsp;&nbsp;Summary of Significant Accounting Policies**

*Basis of Presentation*

The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") and pursuant to the rules and regulations of the SEC for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The condensed consolidated financial statements, including the condensed notes thereto, are unaudited and exclude some of the disclosures required in audited financial statements. The condensed consolidated balance sheet as of December 31, 2024 has been derived from our audited financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements.

In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments and eliminations, consisting only of normal recurring adjustments necessary for a fair presentation in conformity with GAAP. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in our Annual Report on <u>[Form 10-K](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001692951/000169295125000106/cci-20241231.htm)</u> for the period ending December 31, 2024 filed with the SEC. As our comprehensive income is equivalent to net income, our accompanying condensed consolidated financial statements do not include a Statement of Other Comprehensive Income.

The accompanying condensed consolidated financial statements include our accounts and the accounts of our subsidiaries for which we have a controlling interest. All intercompany balances and transactions have been eliminated in consolidation.

Certain amounts in the prior year condensed consolidated financial statements and notes to the condensed consolidated financial statements have been reclassified to conform to the current year presentation. Such reclassifications did not impact previously reported net loss or accumulated deficit or change net cash provided by or used in operating, investing or financing activities.

**3.&nbsp;&nbsp;&nbsp;&nbsp;Real Estate Assets, Net**

The following table summarizes the carrying amounts of our consolidated real estate assets ($ in thousands):

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| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| Land | $223693 | $265635 |
| Buildings and improvements | 1221764 | 1459787 |
| Furniture, fixtures and equipment | 59239 | 67131 |
| Intangible assets | 35117 | 37782 |
| Construction in progress <sup>(1)</sup> | 67324 | 46965 |
|  | 1607137 | 1877300 |
| Less: Accumulated depreciation and amortization | (193815) | (197803) |
| Real estate assets, net | $1413322 | $1679497 |
| <sup>(1)</sup> Includes construction in progress for our development projects and capitalized costs for improvements not yet placed in service at our stabilized properties. | <sup>(1)</sup> Includes construction in progress for our development projects and capitalized costs for improvements not yet placed in service at our stabilized properties. | <sup>(1)</sup> Includes construction in progress for our development projects and capitalized costs for improvements not yet placed in service at our stabilized properties. |

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

*Sale of Cottonwood Broadway*

On February 28, 2025, we sold Cottonwood Broadway for net proceeds of $41.0 million after repayment of associated mortgage debt. We recorded a net gain on sale of $7.9 million.

As part of the sale, we provided a 10-year, $7.0 million unsecured promissory note to the buyer. The note bears an interest rate of 6.78%. The promissory note can be prepaid anytime with the first payment due on the 25th month of the loan. The promissory note is included in other assets on the condensed consolidated balance sheet at June 30, 2025.

*Sale of Parc Westborough*

On May 14, 2025, we sold Parc Westborough for net proceeds of $72.3 million after repayment of the balance of the revolving credit facility allocated to Parc Westborough. We recorded a net gain on sale of $32.3 million.

*Sale of Sugarmont*

On May 30, 2025, we sold Sugarmont for net proceeds of $56.6 million after repayment of associated mortgage debt. We recorded a net gain on sale of $24.6 million.

**4.&nbsp;&nbsp;&nbsp;&nbsp;Investments in Unconsolidated Real Estate Entities**

Our investments in unconsolidated real estate entities consist of ownership interests in stabilized properties and preferred equity investments as follows as of June 30, 2025 and December 31, 2024 ($ in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | | **Balance at** | **Balance at** |
|<br>**Property / Development** |<br>**Location** |<br>**% Owned** | **June 30, 2025** | **December 31, 2024** |
| *Stabilized Properties* |  |  |  |  |
| &nbsp;&nbsp;Cottonwood Bayview <sup>(1)</sup> | St. Petersburg, FL | 71.0% | $9298 | $10314 |
| &nbsp;&nbsp;Toscana at Valley Ridge <sup>(1)</sup> | Lewisville, TX | 58.6% | 5743 | 6036 |
| &nbsp;&nbsp;Fox Point <sup>(1)</sup> | Salt Lake City, UT | 52.8% | 12262 | 12570 |
| &nbsp;&nbsp;The Marq Highland Park <sup>(1)</sup> | Tampa, FL | 74.1% | 21038 | 22265 |
| *Preferred Equity Investments* |  |  |  |  |
| &nbsp;&nbsp;417 Callowhill <sup>(2)</sup> | Philadelphia, PA |  | 47667 | 44733 |
| &nbsp;&nbsp;Infield <sup>(3)</sup> | Kissimmee, FL |  | 17743 | 15408 |
| Other |  |  | 257 | 230 |
| **Total** |  |  | $114008 | $111556 |
| <sup>(1)</sup> We account for our tenant in common interests in these properties as equity method investments. | <sup>(1)</sup> We account for our tenant in common interests in these properties as equity method investments. | <sup>(1)</sup> We account for our tenant in common interests in these properties as equity method investments. | <sup>(1)</sup> We account for our tenant in common interests in these properties as equity method investments. | <sup>(1)</sup> We account for our tenant in common interests in these properties as equity method investments. |
| <sup>(2)</sup> As of June 30, 2025, we have fully funded our commitment on 417 Callowhill. | <sup>(2)</sup> As of June 30, 2025, we have fully funded our commitment on 417 Callowhill. | <sup>(2)</sup> As of June 30, 2025, we have fully funded our commitment on 417 Callowhill. | <sup>(2)</sup> As of June 30, 2025, we have fully funded our commitment on 417 Callowhill. | <sup>(2)</sup> As of June 30, 2025, we have fully funded our commitment on 417 Callowhill. |
| <sup>(3)</sup> On April 25, 2025, we committed an additional $2.0 million on our Infield preferred equity investment, of which we funded $1.0 million as of June 30, 2025. | <sup>(3)</sup> On April 25, 2025, we committed an additional $2.0 million on our Infield preferred equity investment, of which we funded $1.0 million as of June 30, 2025. | <sup>(3)</sup> On April 25, 2025, we committed an additional $2.0 million on our Infield preferred equity investment, of which we funded $1.0 million as of June 30, 2025. | <sup>(3)</sup> On April 25, 2025, we committed an additional $2.0 million on our Infield preferred equity investment, of which we funded $1.0 million as of June 30, 2025. | <sup>(3)</sup> On April 25, 2025, we committed an additional $2.0 million on our Infield preferred equity investment, of which we funded $1.0 million as of June 30, 2025. |

---

Equity in losses for our stabilized properties for the three months ended June 30, 2025 and 2024 were $0.7 million and $0.7 million, respectively. Equity in losses for our stabilized properties for the six months ended June 30, 2025 and 2024 were $1.4 million and $2.2 million, respectively.

Our preferred equity investments, which are in development projects, have liquidation rights and priorities that are different from ownership percentages. As such, equity in earnings is determined using the hypothetical liquidation book value method. Equity in earnings for our preferred equity investments for the three months ended June 30, 2025 and 2024 were $2.2 million and $3.0 million, respectively. Equity in earnings for our preferred equity investments for the six months ended June 30, 2025 and 2024 were $4.3 million and $5.9 million, respectively.

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

**5.&nbsp;&nbsp;&nbsp;&nbsp;Investments in Real Estate-Related Loans**

Our investments in real estate-related loans consist of the following mezzanine loans as of June 30, 2025 and December 31, 2024 ($ in thousands):

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|<br>**Property Name** |<br>**Loan Type** |<br>**Fixed Interest Rate** |<br>**Maturity Date** | **Amortized Cost** | **Allowance for Credit Losses** | **Carrying Value** | **Amortized Cost** | **Allowance for Credit Losses** | **Carrying Value** |
| 2215 Hollywood <sup>(1)</sup> | Mezzanine | 14.5% | April 14, 2026 | $10045 | $(25) | $10020 | $10045 | $(42) | $10003 |
| Monrovia Station <sup>(2)</sup> | Mezzanine | 16.5% | July 31, 2027 | 20150 | (101) | 20049 | 20150 | (126) | 20024 |
| Prospect on Central <sup>(3)</sup> | Mezzanine | 15.0% | May 8, 2027 | 3907 | (44) | 3863 |  |  |  |
| Bowline | Mezzanine | 14.8% | May 20, 2029 | 3116 | (30) | 3086 |  |  |  |
| **Total** |  |  |  | $37218 | $(200) | $37018 | $30195 | $(168) | $30027 |
| <sup>(1)</sup> The 2215 Hollywood loan was originated in April 2023 and has one 12-month extension option. As of June 30, 2025 and December 31, 2024, interest receivable was $3.8 million and $2.9 million, respectively. | <sup>(1)</sup> The 2215 Hollywood loan was originated in April 2023 and has one 12-month extension option. As of June 30, 2025 and December 31, 2024, interest receivable was $3.8 million and $2.9 million, respectively. | <sup>(1)</sup> The 2215 Hollywood loan was originated in April 2023 and has one 12-month extension option. As of June 30, 2025 and December 31, 2024, interest receivable was $3.8 million and $2.9 million, respectively. | <sup>(1)</sup> The 2215 Hollywood loan was originated in April 2023 and has one 12-month extension option. As of June 30, 2025 and December 31, 2024, interest receivable was $3.8 million and $2.9 million, respectively. | <sup>(1)</sup> The 2215 Hollywood loan was originated in April 2023 and has one 12-month extension option. As of June 30, 2025 and December 31, 2024, interest receivable was $3.8 million and $2.9 million, respectively. | <sup>(1)</sup> The 2215 Hollywood loan was originated in April 2023 and has one 12-month extension option. As of June 30, 2025 and December 31, 2024, interest receivable was $3.8 million and $2.9 million, respectively. | <sup>(1)</sup> The 2215 Hollywood loan was originated in April 2023 and has one 12-month extension option. As of June 30, 2025 and December 31, 2024, interest receivable was $3.8 million and $2.9 million, respectively. | <sup>(1)</sup> The 2215 Hollywood loan was originated in April 2023 and has one 12-month extension option. As of June 30, 2025 and December 31, 2024, interest receivable was $3.8 million and $2.9 million, respectively. | <sup>(1)</sup> The 2215 Hollywood loan was originated in April 2023 and has one 12-month extension option. As of June 30, 2025 and December 31, 2024, interest receivable was $3.8 million and $2.9 million, respectively. | <sup>(1)</sup> The 2215 Hollywood loan was originated in April 2023 and has one 12-month extension option. As of June 30, 2025 and December 31, 2024, interest receivable was $3.8 million and $2.9 million, respectively. |
| <sup>(2)</sup> The Monrovia Station loan was originated in July 2023 and has two 12-month extension options. As of June 30, 2025 and December 31, 2024, interest receivable was $5.1 million and $3.1 million, respectively. | <sup>(2)</sup> The Monrovia Station loan was originated in July 2023 and has two 12-month extension options. As of June 30, 2025 and December 31, 2024, interest receivable was $5.1 million and $3.1 million, respectively. | <sup>(2)</sup> The Monrovia Station loan was originated in July 2023 and has two 12-month extension options. As of June 30, 2025 and December 31, 2024, interest receivable was $5.1 million and $3.1 million, respectively. | <sup>(2)</sup> The Monrovia Station loan was originated in July 2023 and has two 12-month extension options. As of June 30, 2025 and December 31, 2024, interest receivable was $5.1 million and $3.1 million, respectively. | <sup>(2)</sup> The Monrovia Station loan was originated in July 2023 and has two 12-month extension options. As of June 30, 2025 and December 31, 2024, interest receivable was $5.1 million and $3.1 million, respectively. | <sup>(2)</sup> The Monrovia Station loan was originated in July 2023 and has two 12-month extension options. As of June 30, 2025 and December 31, 2024, interest receivable was $5.1 million and $3.1 million, respectively. | <sup>(2)</sup> The Monrovia Station loan was originated in July 2023 and has two 12-month extension options. As of June 30, 2025 and December 31, 2024, interest receivable was $5.1 million and $3.1 million, respectively. | <sup>(2)</sup> The Monrovia Station loan was originated in July 2023 and has two 12-month extension options. As of June 30, 2025 and December 31, 2024, interest receivable was $5.1 million and $3.1 million, respectively. | <sup>(2)</sup> The Monrovia Station loan was originated in July 2023 and has two 12-month extension options. As of June 30, 2025 and December 31, 2024, interest receivable was $5.1 million and $3.1 million, respectively. | <sup>(2)</sup> The Monrovia Station loan was originated in July 2023 and has two 12-month extension options. As of June 30, 2025 and December 31, 2024, interest receivable was $5.1 million and $3.1 million, respectively. |
| <sup>(3)</sup> As of June 30, 2025, carrying value includes $1.2 million of unamortized discount. | <sup>(3)</sup> As of June 30, 2025, carrying value includes $1.2 million of unamortized discount. | <sup>(3)</sup> As of June 30, 2025, carrying value includes $1.2 million of unamortized discount. | <sup>(3)</sup> As of June 30, 2025, carrying value includes $1.2 million of unamortized discount. | <sup>(3)</sup> As of June 30, 2025, carrying value includes $1.2 million of unamortized discount. | <sup>(3)</sup> As of June 30, 2025, carrying value includes $1.2 million of unamortized discount. | <sup>(3)</sup> As of June 30, 2025, carrying value includes $1.2 million of unamortized discount. | <sup>(3)</sup> As of June 30, 2025, carrying value includes $1.2 million of unamortized discount. | <sup>(3)</sup> As of June 30, 2025, carrying value includes $1.2 million of unamortized discount. | <sup>(3)</sup> As of June 30, 2025, carrying value includes $1.2 million of unamortized discount. |

---

On April 16, 2025, we provided a $5.1 million mezzanine loan to Prospect on Central, a mixed-use property in Denver, Colorado. The mezzanine loan consisted of $3.8 million in cash with a discount of $1.3 million. The mezzanine loan is paid current interest at a rate of 15.0% on $5.1 million and matures on May 8, 2027 with two 12-month extension options, subject to conditions being met.

On May 20, 2025, we entered into an agreement to provide a $8.4 million mezzanine loan to the sponsor of Bowline, a ground-up development in Santa Rosa Beach, Florida. We funded $2.6 million upon the execution of the agreement and an additional $0.5 million on June 20, 2025. The mezzanine loan accrues interest at a rate of 14.75% on the entire commitment and matures on May 20, 2029 with two 12-month extension options, subject to conditions being met.

**6.&nbsp;&nbsp;&nbsp;&nbsp;Debt**

*Mortgage Notes and Revolving Credit Facility*

The following table is a summary of the mortgage notes and revolving credit facility secured by our properties as of June 30, 2025 and December 31, 2024 ($ in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Weighted-Average Interest Rate** | **Weighted-Average Remaining Term** <sup>(1)</sup> | **Principal Balance Outstanding** | **Principal Balance Outstanding** |
|<br>**Indebtedness** | **Weighted-Average Interest Rate** | **Weighted-Average Remaining Term** <sup>(1)</sup> | **June 30, 2025** | **December 31, 2024** |
| *Fixed rate loans* <sup>(2)</sup> |  |  |  |  |
| &nbsp;&nbsp;Fixed rate mortgages | 4.32% | 4.0 Years | $759172 | $808056 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total fixed rate loans |  |  | 759172 | 808056 |
| *Variable rate loans* <sup>(3)</sup> |  |  |  |  |
| &nbsp;&nbsp;Floating rate mortgages | &nbsp;&nbsp;&nbsp;&nbsp; 5.81% <sup>(4)</sup> | 5.8 Years | 167016 | 273416 |
| &nbsp;&nbsp;Variable rate revolving credit facility | —% | 2.5 Years |  | 79250 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total variable rate loans |  |  | 167016 | 352666 |
| Total secured loans |  |  | 926188 | 1160722 |
| Unamortized debt issuance costs and discounts |  |  | (2147) | (4220) |
| Premium on assumed debt, net |  |  | (4607) | (4988) |
| &nbsp;&nbsp;&nbsp;&nbsp;Mortgage notes and revolving credit facility, net |  |  | $919434 | $1151514 |
| <sup>(1)</sup> For loans where we have the ability to exercise extension options at our own discretion, the maximum maturity date has been assumed, subject to certain debt service coverage ratio, loan to cost or debt yield requirements.  | <sup>(1)</sup> For loans where we have the ability to exercise extension options at our own discretion, the maximum maturity date has been assumed, subject to certain debt service coverage ratio, loan to cost or debt yield requirements.  | <sup>(1)</sup> For loans where we have the ability to exercise extension options at our own discretion, the maximum maturity date has been assumed, subject to certain debt service coverage ratio, loan to cost or debt yield requirements.  | <sup>(1)</sup> For loans where we have the ability to exercise extension options at our own discretion, the maximum maturity date has been assumed, subject to certain debt service coverage ratio, loan to cost or debt yield requirements.  | <sup>(1)</sup> For loans where we have the ability to exercise extension options at our own discretion, the maximum maturity date has been assumed, subject to certain debt service coverage ratio, loan to cost or debt yield requirements.  |
| <sup>(2)</sup> The fixed rate mortgages as of June 30, 2025 no longer include the related debt for Sugarmont, which was sold in May 2025.  | <sup>(2)</sup> The fixed rate mortgages as of June 30, 2025 no longer include the related debt for Sugarmont, which was sold in May 2025.  | <sup>(2)</sup> The fixed rate mortgages as of June 30, 2025 no longer include the related debt for Sugarmont, which was sold in May 2025.  | <sup>(2)</sup> The fixed rate mortgages as of June 30, 2025 no longer include the related debt for Sugarmont, which was sold in May 2025.  | <sup>(2)</sup> The fixed rate mortgages as of June 30, 2025 no longer include the related debt for Sugarmont, which was sold in May 2025.  |
| <sup>(3)</sup> The interest rates of our variable rate loans are based on 30-Day Average SOFR or one-month SOFR (CME Term). The variable rate mortgages as of June 30, 2025 no longer include the related debt for Cottonwood Broadway, which was sold in February 2025.  | <sup>(3)</sup> The interest rates of our variable rate loans are based on 30-Day Average SOFR or one-month SOFR (CME Term). The variable rate mortgages as of June 30, 2025 no longer include the related debt for Cottonwood Broadway, which was sold in February 2025.  | <sup>(3)</sup> The interest rates of our variable rate loans are based on 30-Day Average SOFR or one-month SOFR (CME Term). The variable rate mortgages as of June 30, 2025 no longer include the related debt for Cottonwood Broadway, which was sold in February 2025.  | <sup>(3)</sup> The interest rates of our variable rate loans are based on 30-Day Average SOFR or one-month SOFR (CME Term). The variable rate mortgages as of June 30, 2025 no longer include the related debt for Cottonwood Broadway, which was sold in February 2025.  | <sup>(3)</sup> The interest rates of our variable rate loans are based on 30-Day Average SOFR or one-month SOFR (CME Term). The variable rate mortgages as of June 30, 2025 no longer include the related debt for Cottonwood Broadway, which was sold in February 2025.  |
| <sup>(4)</sup> Includes the impact of interest rate caps in effect on June 30, 2025. | <sup>(4)</sup> Includes the impact of interest rate caps in effect on June 30, 2025. | <sup>(4)</sup> Includes the impact of interest rate caps in effect on June 30, 2025. | <sup>(4)</sup> Includes the impact of interest rate caps in effect on June 30, 2025. | <sup>(4)</sup> Includes the impact of interest rate caps in effect on June 30, 2025. |

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

As of June 30, 2025, our $100.0 million variable rate revolving credit facility was secured by Alpha Mill, with the amount available to draw subject to a cap as certain loan-to-value ratios and other requirements. As of June 30, 2025, the amount on our variable rate revolving credit facility was capped at $33.2 million primarily due to the interest rate environment and the applicable debt-service coverage ratio.

Proceeds from the sale of Parc Westborough in May 2025 were used to pay down the balance on the revolving credit facility that was allocated to Alpha Mill such that the entire balance on the facility was reduced to zero.

On June 27, 2025, we transferred 805 Riverfront to Cottonwood Riverfront DST, a Delaware Statutory Trust, in which we currently own 100% of the interests. In connection with this transaction, we refinanced the bridge loan on the property with a mortgage loan and reduced the debt from $60.2 million to $42.6 million. The mortgage loan bears interest at 5.08% and has a seven-year term. We intend to syndicate our interests in Cottonwood Riverfront DST starting in the third quarter of 2025.

We are in compliance with all covenants associated with our mortgage notes and revolving credit facility as of June 30, 2025.

*Construction Loans*

Information on our construction loans is as follows ($ in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Development** | **Interest Rate** | **Final Expiration Date** | **Loan Amount** | **Amount Drawn** | **Amount Drawn** |
| **Development** | **Interest Rate** | **Final Expiration Date** | **Loan Amount** | **June 30, 2025** | **December 31, 2024** |
| Cottonwood Highland | 30-Day Average SOFR + 2.55% | May 1, 2029 | $44250 | $44052 | $44046 |
| The Westerly <sup>(1)</sup> | One-Month SOFR + 3.0% | July 12, 2028 | 42000 |  |  |
|  |  |  | $86250 | $44052 | $44046 |
| <sup>(1)</sup> In July 2023, we entered into a construction loan agreement for The Westerly, a development project in Millcreek, UT. Construction is expected to be completed in 2026. No amounts have been drawn on the construction loan as of June 30, 2025. | <sup>(1)</sup> In July 2023, we entered into a construction loan agreement for The Westerly, a development project in Millcreek, UT. Construction is expected to be completed in 2026. No amounts have been drawn on the construction loan as of June 30, 2025. | <sup>(1)</sup> In July 2023, we entered into a construction loan agreement for The Westerly, a development project in Millcreek, UT. Construction is expected to be completed in 2026. No amounts have been drawn on the construction loan as of June 30, 2025. | <sup>(1)</sup> In July 2023, we entered into a construction loan agreement for The Westerly, a development project in Millcreek, UT. Construction is expected to be completed in 2026. No amounts have been drawn on the construction loan as of June 30, 2025. | <sup>(1)</sup> In July 2023, we entered into a construction loan agreement for The Westerly, a development project in Millcreek, UT. Construction is expected to be completed in 2026. No amounts have been drawn on the construction loan as of June 30, 2025. | <sup>(1)</sup> In July 2023, we entered into a construction loan agreement for The Westerly, a development project in Millcreek, UT. Construction is expected to be completed in 2026. No amounts have been drawn on the construction loan as of June 30, 2025. |

---

*Land Loans*

Information on our land loans is as follows ($ in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | | **Principal Balance Outstanding** | **Principal Balance Outstanding** |
|<br>**Development** |<br>**Interest Rate** |<br>**Maturity Date** | **June 30, 2025** | **December 31, 2024** |
| Galleria | One-Month SOFR + 3.0% | February 25, 2026 | $14500 | $— |
| 3300 Cottonwood | 7.29% | January 22, 2026 | 4740 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total land loans |  |  | 19240 |  |
| Unamortized debt issuance costs |  |  | (140) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Land loans, net |  |  | $19100 | $— |

---

*Unsecured Promissory Notes, Net*

We have issued unsecured promissory notes to investors outside of the United States. These notes are subordinate to all of CROP's debt. Information on our unsecured promissory notes is as follows ($ in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | | **Principal Balance Outstanding** | **Principal Balance Outstanding** |
| |<br>**Offering Size** |<br>**Interest Rate** |<br>**Maturity Date** | **June 30, 2025** | **December 31, 2024** |
| 2019 6% Notes | $25000 | 6.50% | December 31, 2025 | $20490 | $21350 |

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

The aggregate maturities, including amortizing principal payments on our debt for years subsequent to June 30, 2025 are as follows ($ in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Year | **Mortgage Notes and Revolving Credit Facility** | **Construction Loans** | **Land Loans** | **Unsecured <br>Promissory Notes** | **Total** |
| 2025 | $666 | $— | $— | $20490 | $21156 |
| 2026 | 1584 |  | 19240 |  | 20824 |
| 2027 | 363949 |  |  |  | 363949 |
| 2028 | 72229 |  |  |  | 72229 |
| 2029 | 1859 | 44052 |  |  | 45911 |
| Thereafter | 485901 |  |  |  | 485901 |
|  | $926188 | $44052 | $19240 | $20490 | $1009970 |

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**7.&nbsp;&nbsp;&nbsp;&nbsp;Fair Value of Financial Instruments**

We estimate the fair value of our financial instruments using available market information and valuation methodologies we believe to be appropriate. As of June 30, 2025 and December 31, 2024, the fair values of cash and cash equivalents, restricted cash, other assets, related party payables, and accounts payable, accrued expenses and other liabilities approximate their carrying values due to the short-term nature of these instruments.

Fair value measurements are determined based on the assumptions that market participants would use in pricing the asset or liability. Fair value measurements are categorized into one of three levels of the fair value hierarchy based on the lowest level of significant input used. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability. Considerable judgment and a high degree of subjectivity are involved in developing these estimates. These estimates may differ from the actual amounts that we could realize upon settlement.

The fair value hierarchy is as follows:

Level 1 - Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2 - Other observable inputs, either directly or indirectly, other than quoted prices included in Level 1, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Quoted prices for similar assets/liabilities in active markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Quoted prices for identical or similar assets/liabilities in non-active markets (e.g., few transactions, limited information, non-current prices, high variability over time);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Inputs other than quoted prices that are observable for the asset/liability (e.g., interest rates, yield curves, volatility, default rates); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Inputs that are derived principally from or corroborated by other observable market data.

Level 3 - Unobservable inputs that cannot be corroborated by observable market data.

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

The table below includes the carrying value and fair value for our financial instruments for which it is practicable to estimate fair value ($ in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| | **Carrying Value** | **Fair Value** | **Carrying Value** | **Fair Value** |
| Financial Asset: |  |  |  |  |
| &nbsp;&nbsp;Investments in real estate-related loans | $37018 | $38411 | $30027 | $30195 |
| &nbsp;&nbsp;Unsecured note receivable | 6932 | 7000 |  |  |
| Total | $43950 | $45411 | $30027 | $30195 |
| Financial Liability: |  |  |  |  |
| &nbsp;&nbsp;Fixed rate mortgages | $759172 | $742261 | $808056 | $787680 |
| &nbsp;&nbsp;Floating rate mortgages | 167016 | 167509 | 273416 | 273301 |
| &nbsp;&nbsp;Variable rate revolving credit facility |  |  | 79250 | 79250 |
| &nbsp;&nbsp;Construction loans | 44052 | 44052 | 44046 | 44046 |
| &nbsp;&nbsp;Land loans | 19240 | 19240 |  |  |
| &nbsp;&nbsp;Series 2019 Preferred Stock | 61743 | 61743 | 120119 | 120119 |
| &nbsp;&nbsp;Series 2023 Preferred Stock | 105366 | 105366 | 107277 | 107277 |
| &nbsp;&nbsp;Series 2023-A Preferred Stock | 2950 | 2950 | 2950 | 2950 |
| &nbsp;&nbsp;Series 2025 Preferred Stock | 77891 | 77891 |  |  |
| &nbsp;&nbsp;Unsecured promissory notes, net | 20490 | 20490 | 21350 | 21350 |
| Total | $1257920 | $1241502 | $1456464 | $1435973 |

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All financial instruments in the table above are categorized as Level 2 in the fair value hierarchy.

**8.&nbsp;&nbsp;&nbsp;&nbsp;Preferred Stock**

We have four classes of preferred stock outstanding as of June 30, 2025: Series 2019, Series 2023, Series 2023-A and Series 2025 that are accounted for as liabilities on the condensed consolidated balance sheets as they are mandatorily redeemable. Information on these classes of preferred stock as of June 30, 2025 and December 31, 2024 is as follows ($ in thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Current Dividend Rate** | **Redemption Date** | **Maximum Extension Date** | **Shares Outstanding at** | **Shares Outstanding at** |
| | **Current Dividend Rate** | **Redemption Date** | **Maximum Extension Date** | **June 30, 2025** | **December 31, 2024** |
| Series 2019 Preferred Stock <sup>(1)</sup> | 6.0% | December 31, 2025 | December 31, 2025 | 6174331 | 12011899 |
| Series 2023 Preferred Stock <sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp; 6.0% <sup>(2)</sup> | June 30, 2027 | June 30, 2029 | 10536607 | 10727658 |
| Series 2023-A Preferred Stock | 7.0% | December 31, 2027 | N/A | 295000 | 295000 |
| Series 2025 Preferred Stock <sup>(1)</sup> | &nbsp;&nbsp;&nbsp;&nbsp; 6.5% <sup>(3)</sup> | December 31, 2028 | December 31, 2030 | 7789052 |  |
| Total |  |  |  | 24794990 | 23034557 |
|  |  |  |  | \ |  |
| <sup>(1)</sup> During the six months ended June 30, 2025, we exchanged 5,783,082 and 171,631 shares of Series 2019 and Series 2023, respectively, for Series 2025 Preferred Stock. | <sup>(1)</sup> During the six months ended June 30, 2025, we exchanged 5,783,082 and 171,631 shares of Series 2019 and Series 2023, respectively, for Series 2025 Preferred Stock. | <sup>(1)</sup> During the six months ended June 30, 2025, we exchanged 5,783,082 and 171,631 shares of Series 2019 and Series 2023, respectively, for Series 2025 Preferred Stock. | <sup>(1)</sup> During the six months ended June 30, 2025, we exchanged 5,783,082 and 171,631 shares of Series 2019 and Series 2023, respectively, for Series 2025 Preferred Stock. | <sup>(1)</sup> During the six months ended June 30, 2025, we exchanged 5,783,082 and 171,631 shares of Series 2019 and Series 2023, respectively, for Series 2025 Preferred Stock. | <sup>(1)</sup> During the six months ended June 30, 2025, we exchanged 5,783,082 and 171,631 shares of Series 2019 and Series 2023, respectively, for Series 2025 Preferred Stock. |
| <sup>(2)</sup> The first-year extension dividend rate, applicable from July 1, 2027 to June 30, 2028, is 6.25%. The fully extended dividend rate, applicable from July 1, 2028 to June 30, 2029, is 6.5%. | <sup>(2)</sup> The first-year extension dividend rate, applicable from July 1, 2027 to June 30, 2028, is 6.25%. The fully extended dividend rate, applicable from July 1, 2028 to June 30, 2029, is 6.5%. | <sup>(2)</sup> The first-year extension dividend rate, applicable from July 1, 2027 to June 30, 2028, is 6.25%. The fully extended dividend rate, applicable from July 1, 2028 to June 30, 2029, is 6.5%. | <sup>(2)</sup> The first-year extension dividend rate, applicable from July 1, 2027 to June 30, 2028, is 6.25%. The fully extended dividend rate, applicable from July 1, 2028 to June 30, 2029, is 6.5%. | <sup>(2)</sup> The first-year extension dividend rate, applicable from July 1, 2027 to June 30, 2028, is 6.25%. The fully extended dividend rate, applicable from July 1, 2028 to June 30, 2029, is 6.5%. | <sup>(2)</sup> The first-year extension dividend rate, applicable from July 1, 2027 to June 30, 2028, is 6.25%. The fully extended dividend rate, applicable from July 1, 2028 to June 30, 2029, is 6.5%. |
| <sup>(3)</sup> The first-year extension dividend rate, applicable from January 1, 2029 to December 31, 2029, is 6.75%. The fully extended dividend rate, applicable from January 1, 2030 to December 31, 2030, is 7.0%. | <sup>(3)</sup> The first-year extension dividend rate, applicable from January 1, 2029 to December 31, 2029, is 6.75%. The fully extended dividend rate, applicable from January 1, 2030 to December 31, 2030, is 7.0%. | <sup>(3)</sup> The first-year extension dividend rate, applicable from January 1, 2029 to December 31, 2029, is 6.75%. The fully extended dividend rate, applicable from January 1, 2030 to December 31, 2030, is 7.0%. | <sup>(3)</sup> The first-year extension dividend rate, applicable from January 1, 2029 to December 31, 2029, is 6.75%. The fully extended dividend rate, applicable from January 1, 2030 to December 31, 2030, is 7.0%. | <sup>(3)</sup> The first-year extension dividend rate, applicable from January 1, 2029 to December 31, 2029, is 6.75%. The fully extended dividend rate, applicable from January 1, 2030 to December 31, 2030, is 7.0%. | <sup>(3)</sup> The first-year extension dividend rate, applicable from January 1, 2029 to December 31, 2029, is 6.75%. The fully extended dividend rate, applicable from January 1, 2030 to December 31, 2030, is 7.0%. |

---

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| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| Preferred stock outstanding | $247950 | $230346 |
| Unamortized offering costs and discounts | (9462) | (9274) |
| Preferred stock, net | $238488 | $221072 |

---

All offerings of preferred stock listed above have terminated other than the Series 2025 Preferred Stock offering, which remains ongoing. Shares of Series 2025 Preferred Stock were first issued in January 2025. During the six months ended June 30, 2025, we issued $77.9 million of Series 2025 Preferred Stock, of which $59.8 million was issued through Series 2025 Preferred Stock Exchanges and $18.1 million was issued for cash. Selling commissions and expenses, legal and other third-

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party costs were expensed under debt modification accounting. During the three and six months ended June 30, 2025, these expenses were $2.5 million and $5.6 million, respectively.

We are required to redeem for cash all outstanding Series 2019 Preferred Stock that has not been exchanged for Series 2025 Preferred Stock on or before December 31, 2025 at a price of $10.00 per share. As of August 8, 2025, 5,613,722 shares of Series 2019 Preferred Stock had not been exchanged and remain outstanding. Series 2025 Preferred Stock Exchanges may occur through the exchange offering period, which ends August 31, 2025 and can be extended upon approval of the board of directors.

*Preferred Stock Dividends*

Dividends on preferred stock accounted for as liabilities are recorded through interest expense in the condensed consolidated statements of operations. The following table summarizes our dividend activity for the three and six months ended June 30, 2025 and 2024 ($ in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Series 2019 Preferred Stock | $1006 | $1819 | $2569 | $3659 |
| Series 2023 Preferred Stock | 1582 | 1383 | 3168 | 2680 |
| Series 2023-A Preferred Stock | 51 | 51 | 102 | 102 |
| Series 2025 Preferred Stock | 1104 |  | 1379 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | $3743 | $3253 | $7218 | $6441 |

---

*Preferred Stock Repurchases*

The following table summarizes our repurchase activity for the six months ended June 30, 2025 and 2024 ($ in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2025** | **2024** | **2024** |
| | Number of shares | Aggregate dollar amount | Number of shares | Aggregate dollar amount |
| Series 2019 Preferred Stock | 54486 | $526 | 260800 | $2516 |
| Series 2023 Preferred Stock | 19420 | 185 | 69000 | 621 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 73906 | $711 | 329800 | $3137 |

---

**9.&nbsp;&nbsp;&nbsp;&nbsp;Stockholders' Equity**

*Convertible Preferred Stock*

As of June 30, 2025, there were 9,100,307 shares of Convertible Preferred Stock issued and outstanding. For the six months ended June 30, 2025, we paid aggregate dividends on our Convertible Preferred Stock of $2.8 million.

During the six months ended June 30, 2025, we repurchased 50,000 shares of Convertible Preferred Stock for $0.5 million at a repurchase price of $9.00. We had no unfulfilled repurchase requests during the six months ended June 30, 2025.

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*Common Stock*

The following table details the movement in our outstanding shares for each class of common stock:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Class T** | **Class D** | **Class I** | **Class A** | **Total** |
| December 31, 2024 | 4289506 | 386477 | 6162803 | 20358844 | 31197630 |
| &nbsp;&nbsp;&nbsp;Issuance of common stock | 205642 | 76651 | 598298 |  | 880591 |
| &nbsp;&nbsp;&nbsp;Distribution reinvestment | 43092 | 5781 | 37232 | 61190 | 147295 |
| &nbsp;&nbsp;&nbsp;Exchanges and transfers <sup>(1)</sup> |  |  | 457199 |  | 457199 |
| &nbsp;&nbsp;&nbsp;Repurchases of common stock | (225547) | (3035) | (917856) | (1383143) | (2529581) |
| June 30, 2025 | 4312693 | 465874 | 6337676 | 19036891 | 30153134 |
| <sup>(1)</sup> Exchanges represent the number of shares CROP Unit holders have exchanged for Class I shares during the period. Transfers represent Class T shares that were converted to Class I shares during the period, of which there were none during the six months ended June 30, 2025. | <sup>(1)</sup> Exchanges represent the number of shares CROP Unit holders have exchanged for Class I shares during the period. Transfers represent Class T shares that were converted to Class I shares during the period, of which there were none during the six months ended June 30, 2025. | <sup>(1)</sup> Exchanges represent the number of shares CROP Unit holders have exchanged for Class I shares during the period. Transfers represent Class T shares that were converted to Class I shares during the period, of which there were none during the six months ended June 30, 2025. | <sup>(1)</sup> Exchanges represent the number of shares CROP Unit holders have exchanged for Class I shares during the period. Transfers represent Class T shares that were converted to Class I shares during the period, of which there were none during the six months ended June 30, 2025. | <sup>(1)</sup> Exchanges represent the number of shares CROP Unit holders have exchanged for Class I shares during the period. Transfers represent Class T shares that were converted to Class I shares during the period, of which there were none during the six months ended June 30, 2025. | <sup>(1)</sup> Exchanges represent the number of shares CROP Unit holders have exchanged for Class I shares during the period. Transfers represent Class T shares that were converted to Class I shares during the period, of which there were none during the six months ended June 30, 2025. |

---

*Common Stock Distributions*

Distributions on our common stock are determined by the board of directors based on our financial condition and other relevant factors. Common stockholders may choose to receive cash distributions or purchase additional shares through our distribution reinvestment plan. For the six months ended June 30, 2025, we paid aggregate distributions of $11.2 million, including $1.7 million of distributions reinvested through our distribution reinvestment plan.

We declared the following gross monthly distributions for each share of our common stock as shown in the table below:

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| | | |
|:---|:---|:---|
| Shareholder Record Date | Monthly Rate | Annually |
| January 31, 2025 | $0.06083333 | $0.73 |
| February 28, 2025 | 0.06083333 | 0.73 |
| March 31, 2025 | 0.06083333 | 0.73 |
| April 30, 2025 | 0.06083333 | 0.73 |
| May 31, 2025 | 0.06083333 | 0.73 |
| June 30, 2025 | 0.06083333 | 0.73 |

---

The net distribution varies for each class of our common stock based on the applicable distribution fee, which is deducted from the gross distribution per share and paid to the dealer manager for the Follow-on Offering and reallowed to participating broker-dealers and servicing broker-dealers.

*Common Stock Repurchases* 

During the six months ended June 30, 2025, we repurchased 2,529,581 shares of common stock pursuant to our share repurchase program for $29.3 million, at an average repurchase price of $11.57. We had no unfulfilled repurchase requests during the six months ended June 30, 2025.

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**10.&nbsp;&nbsp;&nbsp;&nbsp;Related-Party Transactions**

*Advisor Compensation*

CC Advisors III manages our business as our external advisor and, under the terms of our advisory agreement, performs certain services for us, including the identification, evaluation, negotiation, origination, acquisition and disposition of investments; and the management of our business. These activities are all subject to oversight by our board of directors. Our advisor is entitled to receive fees and compensation for services provided as described below.

*Management Fee.* CROP pays our advisor a monthly management fee equal to 0.0625% of GAV (gross asset value of CROP, calculated pursuant to our valuation guidelines and reflective of the ownership interest held by CROP in such gross assets), subject to a cap. The cap is equal to 0.125% of "adjusted net asset value" of CROP, which is defined to include the value attributable to preferred stock that is convertible into common equity in the calculation of net asset value of CROP.

Management fees to our advisor for the three months ended June 30, 2025 and 2024 were $3.0 million and $3.1 million, respectively. Management fees to our advisor for the six months ended June 30, 2025 and 2024 were $6.1 million and $6.3 million, respectively.

*Acquisition Expense Reimbursement.* We will reimburse our advisor for out-of-pocket expenses in connection with the selection, evaluation, structuring, acquisition, financing and development of investments, whether or not such investments are acquired, and make payments to third parties or possibly certain of our advisor's affiliates in connection with providing services to us. There were no acquisition expense reimbursements for the six months ended June 30, 2025 and 2024.

*Performance Participation Allocation.* In addition to the fees paid to our advisor for services provided pursuant to our advisory agreement, CC Advisors - SLP, LLC, an affiliate of our advisor and the Special Limited Partner at CROP, holds a performance participation interest in CROP that entitles it to receive an allocation of CROP's total return to its capital account. The performance participation allocation is an incentive fee indirectly paid to our advisor and receipt of the allocation is subject to the ongoing effectiveness of the advisory agreement. As the performance participation allocation is associated with the performance of a service by the advisor, it is expensed in our condensed consolidated statements of operations.

Total return is defined as all distributions accrued or paid (without duplication) on Participating Partnership units (all units in CROP with the exception of preferred units and the Special Limited Partner Interest) plus the change in the aggregate net asset value of such Participating Partnership units. The annual total return will be allocated solely to the Special Limited Partner only after the other unit holders have received a total return of 5% (after recouping any loss carryforward amount) and such allocation will continue until the allocation between the Special Limited Partner and all other unit holders is equal to 12.5% and 87.5%, respectively. Thereafter, the Special Limited Partner will receive an allocation of 12.5% of the annual total return. The performance participation allocation is ultimately determined at the end of each calendar year, accrues monthly and will be paid in cash or Class I units at the election of the Special Limited Partner after the completion of each calendar year.

Due to the decrease in the value of our net assets, no performance participation allocation was incurred during the six months ended June 30, 2025 or during 2024.

*Block C*

We, through our indirect subsidiaries, have a joint venture investment in Block C for the purpose of developing three multifamily development projects near Salt Lake City, Utah: The Westerly, Millcreek North and The Archer. As of June 30, 2025, entities affiliated with us and our advisor (the "Affiliated Members") have made aggregate capital contributions of $10.9 million towards the joint venture. The Affiliated Members are owned directly or indirectly by our officers or directors, as well as certain employees of CROP and our advisor or its affiliates. The Affiliated Members participate in the economics of Block C on the same terms and conditions as us. The development projects are located in an Opportunity Zone, which provides tax benefits for development programs located in designated areas as established by Congress in the Tax Cuts and Jobs Act of 2017. As of June 30, 2025, our ownership in the Block C joint venture was 82.4%.

On January 31, 2025, we entered into a contract to sell The Archer to an unrelated party for $3.0 million. This transaction is expected to close in the third quarter of 2025. During the six months ended June 30, 2025, we recognized an impairment loss of $1.0 million on this development project.

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*Assumption of Related Party Notes and Interest*

On March 28, 2024, we acquired all of the outstanding tenant in common interests in Cottonwood Lighthouse Point from an unaffiliated third-party. As part of the transaction, we assumed $1.3 million of notes and accrued interest held by an affiliate of the seller of the tenant in common interests in favor, directly and indirectly, of nine of our executive officers. Subsequent to the transaction, we paid the amount outstanding under the notes to the executive officers.

*APT Cowork, LLC*

APT Cowork, LLC ("APT") engages in the business of converting underutilized and unused common space in multifamily apartment communities or retail space to revenue producing co-working space. Our officers and directors own 93.14% of APT through direct or indirect ownership interests. We and several of our properties have entered into agreements with APT. The following are the fees paid or incurred to APT under these agreements for the periods presented ($ in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Reimbursement and Cost Sharing Agreement | $5 | $— | $12 | $— |
| Coworking Space Design Agreement |  | 60 | 35 | 245 |
| Services Agreement, net revenue share | 31 | 107 | 77 | 212 |

---

APT is transitioning its services from a coworking agreement to a license agreement based on occupied units instead of total units. Effective September 1, 2024, the Services Agreement was amended to reduce the Service Fee and provide that the services agreement will terminate upon the earlier of (i) the unit-by-unit transition resulting in no additional units receiving payment under the coworking agreement; and (ii) September 30, 2025. Under the license agreement, new leases and renewal of existing leases with our residents will have the Service Fee charged directly to them and remitted to APT.

**11.&nbsp;&nbsp;&nbsp;&nbsp;Variable Interest Entities**

A VIE is a legal entity in which the equity investors at risk lack sufficient equity to finance the entity's activities without additional subordinated financial support or, as a group, the equity investors at risk lack: the power to direct the entity's activities, the obligation to absorb the entity's expected losses or the right to receive the entity's expected residual returns. Qualitative and quantitative factors are considered in determining whether we are the primary beneficiary of a VIE, including, but not limited to, which activities most significantly impact economic performance, which party controls such activities, the amount and characteristics of our investments, the obligation or likelihood for us or other investors to provide financial support, and the management relationship of the property.

CROP is a VIE as the limited partners lack substantive kick-out rights and substantive participating rights. We are the primary beneficiary of CROP as we have the power to direct the activities that most significantly impact economic performance and the rights to receive economic benefits. Substantially all of our assets and liabilities are held in CROP.

As of both June 30, 2025 and December 31, 2024, we had eight consolidated properties not wholly owned by us that are VIEs. As with our wholly owned properties, the debt is collateralized by the real estate for each respective property and assets can only be used to settle obligations of each respective VIE. With the exception of Cottonwood Highland, a recently completed development, creditors of consolidated VIEs do not have recourse to our general credit. We have a payment guarantee to cover a specified percent of the Cottonwood Highland loan during the lease-up and stabilization periods. As of June 30, 2025, the payment guarantee was 25%. This guarantee will be extinguished as milestone debt coverage ratios and occupancy rates are achieved.

In cases where we become the primary beneficiary of a VIE, we recognize a gain or loss for the difference between the sum of (1) the fair value of any consideration paid, the fair value of the noncontrolling interest, and the reported amount of our equity method investment and (2) the net fair value of identifiable assets and liabilities of the VIE.

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The following table details the assets and liabilities of our consolidated VIEs ($ in thousands):

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| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| **Assets:** | | |
| &nbsp;&nbsp;Real estate assets, net | $475057 | $482871 |
| &nbsp;&nbsp;Cash and cash equivalents | 6428 | 5257 |
| &nbsp;&nbsp;Restricted cash | 7215 | 8447 |
| &nbsp;&nbsp;Other assets | 2452 | 2347 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $491152 | $498922 |
| **Liabilities:** |  |  |
| &nbsp;&nbsp;Mortgage notes and revolving credit facility, net | $355075 | $354761 |
| &nbsp;&nbsp;Construction loans, net | 44052 | 44046 |
| &nbsp;&nbsp;Accounts payable, accrued expenses and other liabilities | 10407 | 10905 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $409534 | $409712 |

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**12.&nbsp;&nbsp;&nbsp;&nbsp;Noncontrolling Interests**

*Noncontrolling Interests - Limited Partners*

Common Limited CROP Units and LTIP Units are CROP units not owned by us and collectively referred to as "Noncontrolling Interests – Limited Partners."

<u>Common Limited CROP Units</u> - During the six months ended June 30, 2025 and 2024, we paid aggregate distributions to noncontrolling CROP Unit holders of $11.8 million and $11.9 million, respectively.

<u>LTIP Units</u> - As of June 30, 2025, there were 305,622 unvested time-based LTIP awards and 597,133 unvested performance-based LTIP awards outstanding. LTIP Unit award share-based compensation, included within share-based compensation in the condensed consolidated statements of stockholders' equity, was $1.7 million and $1.9 million for the six months ended June 30, 2025 and 2024, respectively. Total unrecognized compensation expense for LTIP Units as of June 30, 2025 is $3.7 million and is expected to be recognized on a straight-line basis through December 2028.

*Noncontrolling Interests - Partially Owned Entities*

As of June 30, 2025, noncontrolling interests in consolidated entities not wholly owned by us ranged from 1% to 63%, with the average being 11%.

**13.&nbsp;&nbsp;&nbsp;&nbsp;Commitments and Contingencies**

*Litigation*

We are subject to a variety of legal actions in the ordinary course of our business, most of which are covered by liability insurance. While the resolution of these matters cannot be predicted with certainty, as of June 30, 2025, we believe the final outcome of such legal proceedings and claims will not have a material adverse effect on our liquidity, financial position or results of operations.

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**14.&nbsp;&nbsp;&nbsp;&nbsp;Earnings Per Share**

The following table sets forth the computation of our net earnings (losses) per common share - basic and diluted ($ in thousands except share and per share amounts):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Numerator for net earnings (losses) per common share - basic** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $36494 | $(19260) | $23480 | $(12197) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net (income) loss attributable to noncontrolling interests - limited partners | (18720) | 9051 | (12315) | 5195 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss attributable to noncontrolling interests - partially owned entities | 408 | 861 | 744 | 1573 |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred distributions | (1684) | (471) | (3017) | (614) |
| &nbsp;&nbsp;Numerator for net earnings (losses) per common share - basic | $16498 | $(9819) | $8892 | $(6043) |
| **Numerator for net earnings (losses) per common share - diluted:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) | $36494 | $(19260) | $23480 | $(12197) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net (income) loss attributable to noncontrolling interests - limited partners | (18720) | 9051 | (12315) | 5195 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss attributable to noncontrolling interests - partially owned entities | 408 | 861 | 744 | 1573 |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred distributions |  | (471) | (3017) | (614) |
| &nbsp;&nbsp;Numerator for net earnings (losses) per share - diluted | $18182 | $(9819) | $8892 | $(6043) |
| **Denominator for net earnings (losses) per common share - basic and diluted:** |  |  |  |  |
| &nbsp;&nbsp;Denominator for net earnings (losses) per common share - basic | 31018873 | 31647211 | 31279782 | 31614142 |
| &nbsp;&nbsp;Effect of dilutive securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Convertible Preferred Shares | 7555603 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;CROP Units |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Long-term compensation shares/units |  |  |  |  |
| &nbsp;&nbsp;Denominator for net earnings (losses) per share - diluted | 38574476 | 31647211 | 31279782 | 31614142 |
| **Net earnings (losses) per common share - basic** | $0.53 | $(0.31) | $0.28 | $(0.19) |
| **Net earnings (losses) per common share - diluted** | $0.47 | $(0.31) | $0.28 | $(0.19) |

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For the three months ended June 30, 2025, CROP units and long-term compensation shares/units are excluded from the calculation of diluted earnings per share as the inclusion of such potential common shares in the calculation would be anti-dilutive.

For the six months ended June 30, 2025 and for the three and six months ended June 30, 2024, convertible preferred shares, CROP units and long-term compensation shares/units are excluded from the calculation of diluted earnings per share as the inclusion of such potential common shares in the calculation would be anti-dilutive.

**15.&nbsp;&nbsp;&nbsp;&nbsp;Segment Financial Information**

Our chief operating decision maker ("CODM") utilizes reportable segment net operating income ("Reportable Segment NOI") to assess performance and determine allocation of resources. Reportable Segment NOI represents 100% of each of our consolidated and unconsolidated properties' reportable segment rental and other property revenues and reportable segment property operations expense. We consider Reportable Segment NOI to be an appropriate supplemental measure of operating performance to net income because it measures the core operations of property performance by excluding corporate level expenses, depreciation and amortization, and other items not directly related to ongoing property operating performance. The CODM does not regularly review total assets for our reportable segment as total assets are not used to assess performance or allocate resources.

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The following table details Reportable Segment NOI, including significant expenses, for the three and six months ended June 30, 2025 and 2024 ($ in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Reportable segment rental and other property revenues** | $42121 | $42861 | $86509 | $85610 |
| **Reportable segment property operations expense** |  |  |  |  |
| &nbsp;&nbsp;Real estate taxes | 5351 | 5654 | 10781 | 11865 |
| &nbsp;&nbsp;Payroll and benefits | 3119 | 3274 | 6300 | 6478 |
| &nbsp;&nbsp;Utilities | 2617 | 2534 | 5471 | 5177 |
| &nbsp;&nbsp;Repairs and maintenance | 2014 | 2161 | 3823 | 3979 |
| &nbsp;&nbsp;Insurance | 1406 | 1617 | 3021 | 3693 |
| &nbsp;&nbsp;Other property expenses <sup>(1)</sup> | 1639 | 252 | 2733 | 1765 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total reportable segment property operations expense | 16146 | 15492 | 32129 | 32957 |
| &nbsp;&nbsp;**Total reportable segment net operating income** | $25975 | $27369 | $54380 | $52653 |
| <sup>(1)</sup> Other property expenses include general and administrative, marketing and advertising, and other non-recurring expenses. | <sup>(1)</sup> Other property expenses include general and administrative, marketing and advertising, and other non-recurring expenses. | <sup>(1)</sup> Other property expenses include general and administrative, marketing and advertising, and other non-recurring expenses. | <sup>(1)</sup> Other property expenses include general and administrative, marketing and advertising, and other non-recurring expenses. | <sup>(1)</sup> Other property expenses include general and administrative, marketing and advertising, and other non-recurring expenses. |

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The following table reconciles reportable segment net operating income to the reported net income (loss) attributable to common stockholders in the condensed consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 ($ in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Total reportable segment net operating income** | $25975 | $27369 | $54380 | $52653 |
| &nbsp;&nbsp;Rental and other property revenues of unconsolidated properties <sup>(1)</sup> | (6936) | (5795) | (14016) | (14189) |
| &nbsp;&nbsp;Property operations expense of unconsolidated properties <sup>(1)</sup> | 2603 | 2059 | 5004 | 5492 |
| &nbsp;&nbsp;Equity in earnings of unconsolidated real estate entities <sup>(2)</sup> | 1516 | 2250 | 2885 | 3618 |
| &nbsp;&nbsp;Property management revenues | 1659 | 2043 | 3451 | 4382 |
| &nbsp;&nbsp;Other revenues | 2140 | 989 | 3706 | 1774 |
| &nbsp;&nbsp;Property management expense | (4785) | (4559) | (9367) | (9137) |
| &nbsp;&nbsp;Asset management fee | (3032) | (3129) | (6123) | (6273) |
| &nbsp;&nbsp;Depreciation and amortization | (14236) | (17199) | (29186) | (32153) |
| &nbsp;&nbsp;General and administrative expenses | (2930) | (1178) | (5489) | (2945) |
| &nbsp;&nbsp;Impairment loss |  |  | (957) |  |
| &nbsp;&nbsp;Interest income | 481 | 495 | 815 | 968 |
| &nbsp;&nbsp;Interest expense | (18312) | (21257) | (38359) | (41675) |
| &nbsp;&nbsp;Loss on debt extinguishment | (1634) | (201) | (1732) | (1440) |
| &nbsp;&nbsp;Gain on sale of real estate assets | 56834 | 5 | 64766 | 26643 |
| &nbsp;&nbsp;Gain on legal settlement |  |  | 400 |  |
| &nbsp;&nbsp;Other (expense) income | (3144) | (1105) | (7118) | 117 |
| &nbsp;&nbsp;Income tax benefit (expense) | 295 | (47) | 420 | (32) |
| &nbsp;&nbsp;Net (income) loss attributable to noncontrolling interests - limited partners | (18720) | 9051 | (12315) | 5195 |
| &nbsp;&nbsp;Net loss attributable to noncontrolling interests - partially owned entities | 408 | 861 | 744 | 1573 |
| &nbsp;&nbsp;Less preferred stock dividends | (1684) | (471) | (3017) | (614) |
| **Net income (loss) attributable to common stockholders** | $16498 | $(9819) | $8892 | $(6043) |
| <sup>(1)</sup> Rental and other property revenues and property operations expense for unconsolidated properties are included in Reportable Segment NOI. They are removed here as this activity is included in equity in earnings of unconsolidated real estate entities on our condensed consolidated statements of operations. | <sup>(1)</sup> Rental and other property revenues and property operations expense for unconsolidated properties are included in Reportable Segment NOI. They are removed here as this activity is included in equity in earnings of unconsolidated real estate entities on our condensed consolidated statements of operations. | <sup>(1)</sup> Rental and other property revenues and property operations expense for unconsolidated properties are included in Reportable Segment NOI. They are removed here as this activity is included in equity in earnings of unconsolidated real estate entities on our condensed consolidated statements of operations. | <sup>(1)</sup> Rental and other property revenues and property operations expense for unconsolidated properties are included in Reportable Segment NOI. They are removed here as this activity is included in equity in earnings of unconsolidated real estate entities on our condensed consolidated statements of operations. | <sup>(1)</sup> Rental and other property revenues and property operations expense for unconsolidated properties are included in Reportable Segment NOI. They are removed here as this activity is included in equity in earnings of unconsolidated real estate entities on our condensed consolidated statements of operations. |
| <sup>(2)</sup> Equity in earnings of unconsolidated real estate entities includes our portion of revenues and expenses of unconsolidated properties as recorded under the equity method of accounting. | <sup>(2)</sup> Equity in earnings of unconsolidated real estate entities includes our portion of revenues and expenses of unconsolidated properties as recorded under the equity method of accounting. | <sup>(2)</sup> Equity in earnings of unconsolidated real estate entities includes our portion of revenues and expenses of unconsolidated properties as recorded under the equity method of accounting. | <sup>(2)</sup> Equity in earnings of unconsolidated real estate entities includes our portion of revenues and expenses of unconsolidated properties as recorded under the equity method of accounting. | <sup>(2)</sup> Equity in earnings of unconsolidated real estate entities includes our portion of revenues and expenses of unconsolidated properties as recorded under the equity method of accounting. |

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The following table reconciles rental and other property revenues and property operations expense for our reportable segment to rental and other property revenues and property operations expense as reported in the condensed consolidated statements of operations ($ in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Reportable segment rental and other property revenues | $42121 | $42861 | $86509 | $85610 |
| Rental and other property revenues of unconsolidated properties | (6936) | (5795) | (14016) | (14189) |
| &nbsp;&nbsp;Rental and other property revenues | $35185 | $37066 | $72493 | $71421 |
| Reportable segment property operations expense | $16146 | $15492 | $32129 | $32957 |
| Property operations expense of unconsolidated properties | (2603) | (2059) | (5004) | (5492) |
| &nbsp;&nbsp;Property operations expense | $13543 | $13433 | $27125 | $27465 |

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**16.&nbsp;&nbsp;&nbsp;&nbsp;Subsequent Events** 

We evaluate subsequent events up until the date the condensed consolidated financial statements are issued and have determined there are none to be reported or disclosed in the condensed consolidated financial statements other than those mentioned below.

*Bowline Mezzanine Loan*

On July 21, 2025, we funded an additional $1.4 million of the investment.

*Regenerant Joint Venture*

On July 31, 2025, we formed a joint venture with Regenerant Housing Partners (the "Regenerant Venture") focused on affordable housing investment opportunities. The Regenerant Venture will pursue, among other strategies, the acquisition or recapitalization of general and limited partnership interests in low-income housing tax credit and workforce housing projects. On August 4, 2025, we contributed $11.2 million to fund the acquisition of partnership interests in three projects (two located in Boulder, CO and one located in Kansas City, MO).

*Convertible Preferred Stock*

On August 4, 2025, our board approved the extension of the Series A Convertible Preferred Offering from August 31, 2025 to August 31, 2026.

*2025 7.25% Unsecured Notes*

On August 1, 2025, we launched a $50.0 million private placement offering of 2025 7.25% Unsecured Notes. The notes bear interest at a rate of 7.25% and mature on December 31, 2029, with two 12-month extension options. The notes can also be exchanged for 2019 6.00% Unsecured Notes on a dollar-to-dollar basis.

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**

*References herein to "Company," "we," "us," and "our" refer to Cottonwood Communities, Inc. together with its subsidiaries. The following discussion of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and the related notes.* 

**Forward-Looking Statements** 

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Exchange Act of 1934, as amended (the "Exchange Act"). Forward-looking statements include statements about our business, including, in particular, statements about our plans, strategies and objectives. You can generally identify forward-looking statements by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. You should not rely on these forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond our control. Our actual results, performance and achievements may be materially different from those expressed or implied by these forward-looking statements.

The following is a summary of the principal risks that could adversely affect our business, financial condition, results of operations and cash flows and an investment in our common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We depend on our advisor to identify suitable investments and to manage our investments. There is no assurance that we will be able to successfully achieve our investment objectives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There is no public trading market for shares of our common stock and the repurchase of shares by us will likely be the only way to dispose of your shares. Our share repurchase program provides stockholders with the opportunity to request that we repurchase their shares on a monthly basis, but we are not obligated to repurchase any shares and may choose to repurchase only some, or even none, of the shares that have been requested to be repurchased in any particular month in our discretion. In addition, repurchases are subject to available liquidity and other significant restrictions. Further, our board of directors may modify or suspend our share repurchase program if in its reasonable judgment it deems a suspension to be in our best interest and the best interest of our stockholders, such as when a repurchase request would place an undue burden on our liquidity, adversely affect our operations or risk having an adverse impact on the company that would outweigh the benefit of the repurchase offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The offering price and repurchase price for shares of our common stock are generally based on our prior month's NAV plus, in the case of our offering price, applicable upfront selling commissions and dealer manager fees, and are not based on any public trading market. In addition to being up to a month old when share purchases and repurchases take place, our NAV does not currently represent our enterprise value and may not accurately reflect the actual prices at which our assets could be liquidated on any given day, the value a third-party would pay for all or substantially all of our shares, or the price that our shares would trade at on a national stock exchange. Furthermore, our board of directors may amend our NAV procedures from time to time. Although there will be independent appraisals of our properties, the appraisal of properties is inherently subjective and our NAV may not accurately reflect the actual price at which our properties could be liquidated on any given day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Investing in commercial real estate assets involves certain risks, including, but not limited to: changes in values caused by global, national, regional or local economic performance, the performance of the real estate sector, unemployment and stock market volatility, demographic or capital market conditions; increases in interest rates and lack of availability of financing; vacancies, fluctuations in the average occupancy and rental rates for our residential properties; and residents experiencing financial hardships (resulting in an inability to pay rent). Disruptions in the financial markets and economic uncertainty, including as a result of uncertainties regarding actual and potential shifts in U.S. and foreign policies on trade and other fiscal, monetary and regulatory policies, including with respect to treaties and tariffs, could adversely affect our operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our proposed merger with the RS Parties (as defined and discussed herein) may not be consummated within the expected time period or at all, including as a result of the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; the inability to obtain security holder approval of the merger or the failure to satisfy the other conditions to completion of the merger; risks related to disruption of management's attention from the ongoing business operations due to the proposed merger.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have paid distributions from offering proceeds and may continue to fund distributions with offering proceeds. We have not established a limit on the amount of proceeds from our offering that we may use to fund distributions. To the extent we fund distributions from sources other than our cash flow from operations, we will have less funds available for investment in multifamily apartment communities and multifamily real estate-related assets and the overall return to our stockholders may be reduced. Distributions may also be paid from other sources such as borrowings, advances or the deferral of fees and expense reimbursements. These distributions may constitute a return of capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All of our officers and certain of our directors are also officers of our sponsor, advisor and their affiliates and, as a result, are subject to conflicts of interest, including conflicts arising from time constraints and the fact that the fees our advisor receives for services rendered to us are based on our NAV, which our advisor is responsible for determining.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We pay certain fees and expenses to our advisor and its affiliates. These fees were not negotiated at arm's length and therefore may be higher than fees payable to unaffiliated third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Development projects in which we invest will be subject to potential development and construction delays as well as the impact of any rising costs associated with increased inflation, or the persistence of elevated rates of inflation, as well as changes to tariffs and trade policies, all of which could result in unanticipated increased costs and risks and may hinder our operating results and ability to make distributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may incur significant debt in certain circumstances, including through the issuance of preferred equity that is accounted for as debt. Our use of leverage increases the risk of an investment in us. Loans we obtain may be collateralized by some or all of our investments, which will put those investments at risk of forfeiture if we are unable to pay our debts. Principal and interest payments on these loans and dividend payments on our preferred shares reduce the amount of money that would otherwise be available for other purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Volatility in the debt markets could affect our ability to obtain financing for investments or other activities related to real estate assets and the diversification or value of our portfolio, potentially reducing cash available for distribution to our stockholders or our ability to make investments. In addition, volatility in the debt markets could negatively impact our loans with variable interest rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There are limits on the ownership and transferability of our shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If we fail to continue to qualify as a real estate investment trust ("REIT"), it would adversely affect our operations and our ability to make distributions to our stockholders because we will be subject to United States federal income tax at regular corporate rates with no ability to deduct distributions made to our stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We restated our previously issued financial statements for the year ended December 31, 2022 and for each of the quarterly periods therein (the "Restatement"). As a result of the Restatement, we identified a material weakness in our internal control over financial reporting solely related to the statement of cash flows. As a result of this material weakness, management concluded that our disclosure controls and procedures and internal controls over financial reporting were not effective as of December 31, 2023 and 2022, which conclusion could harm our business. This material weakness was remediated as of March 31, 2024. The Restatement and related identification of a material weakness in our internal controls over financial reporting could subject us to increased risk of litigation.

Additional risks related to our business are discussed herein under Part II - "Item 1A. Risk Factors" and under the heading "Risk Factors" in our Annual Report on <u>[Form 10-K](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001692951/000169295125000106/cci-20241231.htm)</u> for the year ended December 31, 2024. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of this information should not be regarded as a representation by us or any other person that our objectives and plans, which we consider to be reasonable, will be achieved. Except as otherwise required by federal securities laws, we do not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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**Overview**

Cottonwood Communities, Inc. invests in a diverse portfolio of multifamily apartment communities and multifamily real estate-related assets throughout the United States. We are externally managed by our advisor, CC Advisors III, LLC ("CC Advisors III"), a wholly owned subsidiary of our sponsor, Cottonwood Communities Advisors, LLC ("CCA"). We were incorporated in Maryland in 2016. We hold all of our assets through Cottonwood Residential O.P., LP ("CROP"), our operating partnership. We are the sole member of the sole general partner of CROP and own general partner interests in CROP alongside third-party limited partners.

We are a non-listed perpetual-life, net asset value ("NAV"), REIT. We qualified as a REIT for U.S. federal income tax purposes beginning with the taxable year ended December 31, 2019. We generally will not be subject to U.S. federal income taxes on our taxable income to the extent we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT.

As of June 30, 2025, we raised $375.8 million from the sale of common stock in our public offerings and $345.8 million from the sale of our preferred stock in periodic private offerings to accredited investors (the "Private Offerings"). We have contributed our net proceeds to CROP in exchange for a corresponding number of mirrored OP Units in CROP.

<u>In</u> addition, our board of directors has approved a program (the "DST Program") for us, through CROP, to sell beneficial interests ("DST Interests") in specific Delaware statutory trusts ("DSTs") holding real properties (the "DST Property") through private placement offerings exempt from registration under the Securities Act. Under the DST Program, each DST Property will be sourced from our real properties or from third parties, which will be held in a DST and subsequently leased by one of our wholly owned subsidiaries in accordance with a certain master lease agreement. Each master lease agreement will be guaranteed by CROP, which will hold a fair market value option (the "FMV Option"), giving it the right, but not the obligation, to acquire the DST Interests in the applicable DST from the investors in exchange for OP Units in CROP or cash, at CROP's discretion. The FMV Option may be exercised beginning on the two-year anniversary of the final closing of the sale of DST interests pursuant to each private placement. We expect to commence our first offering pursuant to this DST Program in the third quarter of 2025.

As of our June 30, 2025 NAV, we had a portfolio of $2.1 billion in total assets, with 80.1% of our equity value in operating properties, 2.8% in development, 12.5% in real estate-related structured investments and 4.6% in land held for development. Refer to the sections entitled "Our Investments" and "Net Asset Value" below for further description of our portfolio and NAV.

*Proposed Merger with RealSource*

On June 25, 2025, we, CROP and our wholly owned subsidiary ("Merger Sub"), entered into an Agreement and Plan of Merger (the "Merger Agreement") with RealSource Properties, Inc. ("RS") and RealSource Properties OP, LP ("RSOP," and together with RS, the "RS Parties"). The merger is a stock-for-stock and unit-for-unit transaction whereby, subject to the terms and conditions of the Merger Agreement, RS will be merged with and into Merger Sub and RSOP will be merged with and into CROP (the "RealSource Merger").

If the closing conditions are met or waived, the merger will result in us acquiring the 11-property, 3,565-unit portfolio of multifamily assets of the RS Parties. In connection with the merger, we will also acquire third-party property management contracts on seven additional properties totaling 1,353 units.

At the effective time of the merger with and into Merger Sub, each issued and outstanding share of RS common stock, $0.01 par value per share ("RS Common Stock"), that is not cancelled and retired under the Merger Agreement will be converted into the right to receive 0.8893 shares of our Class I common stock, subject to adjustment as described in the Merger Agreement. As of June 25, 2025, there were 211,495.63 shares of RS Common Stock issued and outstanding. At the effective time of the merger with and into CROP, each issued and outstanding common unit of limited partnership interests in RSOP ("RSOP Partnership Unit") that is not cancelled and retired under the Merger Agreement will be converted into the right to receive common units of limited partnership interest in at the same ratio as the common stock. As of June 25, 2025, there were 18,285,480.60 RSOP Partnership Units outstanding. As the exchange ratio is subject to adjustment both prior to and after the completion of the merger, security holders of the RS Parties may receive less than or more than 0.8993 shares or units of the Company or CROP, as applicable.

The obligations of each party to consummate the merger are subject to a number of conditions, including receipt of the approval of the RS security holders, and no assurances can be provided that we will successfully complete the merger. In

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connection with the termination of the Merger Agreement, under certain specified circumstances, the RS Parties may be required to pay us a termination fee of $7.95 million.

**Highlights for the Three Months Ended June 30, 2025**

The following highlights activities that occurred during the three months ended June 30, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income attributable to common stockholders was $0.47 per diluted share compared to net loss attributable to common stockholders of $(0.31) per diluted share for the same period in the prior year. The increase was primarily due to gains on the sales of Parc Westborough and Sugarmont in the second quarter of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reportable segment net operating income ("Reportable Segment NOI") was $26.0 million compared to $27.4 million for the same period in the prior year primarily due to increases from lease-up properties, offset by lost net operating income from property sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Same store net operating income ("Same Store NOI") was $20.4 million compared to $20.3 million for the same period in the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Funds from operations attributable to common stockholders and unit holders ("FFO") was $(0.08) per diluted share/unit compared to $(0.02) for the same period in the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Core FFO was $0.06 per diluted share/unit, compared to $0.04 for the same period in the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net asset value was $11.5153 per share/unit at June 30, 2025, compared to $11.5429 per share/unit at March 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Entered into an agreement to acquire the RS portfolio of 11 multifamily assets and seven third-party property management contracts in a stock-for-stock and unit-for-unit transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sold Sugarmont for net proceeds of $56.6 million, recording a net gain on sale of $24.6 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sold Parc Westborough for net proceeds of $54.6 million, recording a net gain on sale of $32.3 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Funded $1.0 million of our preferred equity investment in the Infield development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Originated a $5.1 million mezzanine loan investment in the Prospect on Central development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Funded $3.1 million of our $8.4 million mezzanine loan investment in the Bowline development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Raised $9.6 million of net proceeds from the sale of Series 2025 Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exchanged 2,533,448 and 149,631 shares of Series 2019 and Series 2023, respectively, for Series 2025 Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Raised $11.6 million of net proceeds from the sale of Series A Convertible Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Raised $2.2 million of net proceeds from the sale of our common stock issued under our registered public offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Repurchased $18.1 million of common stock and OP Units at an average discount of 1% to NAV.

**Highlights for the Six Months Ended June 30, 2025**

The following highlights activities that occurred during the six months ended June 30, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income attributable to common stockholders was $0.28 per diluted share compared to net loss attributable to common stockholders of $(0.19) per diluted share for the same period in the prior year. The increase was primarily due to gains on the sales of Parc Westborough and Sugarmont in the second quarter of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reportable Segment NOI was $54.4 million compared to $52.7 million for the same period in the prior year primarily due to increases from lease-up properties, offset by lost net operating income from property sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Same Store NOI was $40.5 million compared to $41.0 million for the same period in the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• FFO was $(0.14) per diluted share/unit compared to $(0.06) for the same period in the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Core FFO was $0.11 per diluted share/unit, compared to $0.04 for the same period in the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net asset value was $11.5153 per share/unit at June 30, 2025, compared to $12.0083 per share/unit at December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Entered into an agreement to acquire the RS portfolio of 11 multifamily assets and seven third-party property management contracts in a stock-for-stock and unit-for-unit transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sold Cottonwood Broadway for net proceeds of $41.0 million, recording a net gain on sale of $7.9 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sold Sugarmont for net proceeds of $56.6 million, recording a net gain on sale of $24.6 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sold Parc Westborough for net proceeds of $54.6 million, recording a net gain on sale of $32.3 million.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Originated a $5.1 million mezzanine loan investment in the Prospect on Central development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Funded $1.0 million of our preferred equity investment in the Infield development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Funded $3.1 million of our $8.4 million mezzanine loan investment in the Bowline development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Raised $16.7 million of net proceeds from the sale of Series 2025 Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exchanged 5,783,082 and 171,631 shares of Series 2019 and Series 2023, respectively, for Series 2025 Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Raised $29.9 million of net proceeds from the sale of Series A Convertible Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Repurchased $0.5 million of Series A Convertible Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Raised $9.4 million of net proceeds from the sale of our common stock issued under our registered public offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Repurchased $29.9 million of common stock and OP Units at an average discount of 2% to NAV.

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**Our Investments**

&nbsp;&nbsp;&nbsp;&nbsp;

Information regarding our investments as of June 30, 2025 is as follows:

*Stabilized Properties ($ in thousands, except net effective rent)*

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| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Property Name** | **Market** | **Number<br>of Units** | **Average<br>Unit Size<br>(Sq Ft)** | **Purchase<br>Date** | **Purchase Price** | **Purchase Price** | | **Mortgage Debt Outstanding** <sup>(1)</sup> | **Mortgage Debt Outstanding** <sup>(1)</sup> | **Net Effective Rent** | **Net Effective Rent** | **Physical<br>Occupancy<br>Rate** | **Percentage<br>Owned by<br>CROP** |
| 805 Riverfront <sup>(2)(3)</sup> | West Sacramento, CA | 285 | 746 | Sept 2023 | $| 104646 | <sup>(4)</sup> | $| 42556 | $| 2294 | 88.07% | 100.00% |
| Alpha Mill | Charlotte, NC | 267 | 830 | May 2021 | 69500 | 69500 |  |  |  | 1655 | 1655 | 94.01% | 100.00% |
| Cason Estates | Murfreesboro, TN | 262 | 1078 | May 2021 | 51400 | 51400 |  | 37462 | 37462 | 1525 | 1525 | 94.27% | 100.00% |
| Cottonwood Apartments | Salt Lake City, UT | 264 | 834 | May 2021 | 47300 | 47300 |  | 35430 | 35430 | 1389 | 1389 | 96.21% | 100.00% |
| Cottonwood Bayview | St. Petersburg, FL | 309 | 805 | May 2021 | 95900 | 95900 |  | 71417 | 71417 | 2544 | 2544 | 91.59% | 71.00% |
| Cottonwood Clermont | Clermont, FL | 230 | 1111 | Sept 2022 | 85000 | 85000 |  | 34255 | 34255 | 2024 | 2024 | 91.30% | 100.00% |
| Cottonwood Highland <sup>(2)(5)</sup> | Salt Lake City, UT | 250 | 745 | May 2021 | 65210 | 65210 | <sup>(4)</sup> | 44052 | 44052 | 1822 | 1822 | 90.40% | 36.93% |
| Cottonwood Lighthouse Point | Pompano Beach, FL | 243 | 996 | June 2022 | 95500 | 95500 |  | 47964 | 47964 | 2217 | 2217 | 92.59% | 100.00% |
| Cottonwood Reserve | Charlotte, NC | 352 | 1021 | May 2021 | 77500 | 77500 |  | 48049 | 48049 | 1446 | 1446 | 91.07% | 91.14% |
| Cottonwood Ridgeview | Plano, TX | 322 | 1156 | May 2021 | 72930 | 72930 |  | 65300 | 65300 | 1787 | 1787 | 94.10% | 100.00% |
| Cottonwood Westside | Atlanta, GA | 197 | 860 | May 2021 | 47900 | 47900 |  | 26986 | 26986 | 1611 | 1611 | 92.39% | 100.00% |
| Enclave on Golden Triangle | Keller, TX | 273 | 1048 | May 2021 | 51600 | 51600 |  | 48400 | 48400 | 1669 | 1669 | 91.94% | 98.93% |
| Fox Point | Salt Lake City, UT | 398 | 841 | May 2021 | 79400 | 79400 |  | 44950 | 44950 | 1441 | 1441 | 95.73% | 52.75% |
| Heights at Meridian | Durham, NC | 339 | 997 | May 2021 | 79900 | 79900 |  | 53401 | 53401 | 1591 | 1591 | 91.74% | 100.00% |
| Melrose <sup>(2)</sup> | Nashville, TN | 220 | 951 | May 2021 | 67400 | 67400 |  | 56600 | 56600 | 1796 | 1796 | 95.45% | 100.00% |
| Melrose Phase II <sup>(2)</sup> | Nashville, TN | 139 | 675 | May 2021 | 40350 | 40350 |  | 32400 | 32400 | 1559 | 1559 | 94.24% | 100.00% |
| Park Avenue | Salt Lake City, UT | 234 | 714 | May 2021 | 67525 | 67525 | <sup>(4)</sup> | 43453 | 43453 | 1886 | 1886 | 95.30% | 100.00% |
| Pavilions | Albuquerque, NM | 240 | 1162 | May 2021 | 61100 | 61100 |  | 58500 | 58500 | 1889 | 1889 | 95.83% | 96.35% |
| Raveneaux | Houston, TX | 382 | 1065 | May 2021 | 57500 | 57500 |  | 47400 | 47400 | 1428 | 1428 | 95.29% | 96.97% |
| Regatta | Houston, TX | 490 | 862 | May 2021 | 48100 | 48100 |  | 35282 | 35282 | 1081 | 1081 | 93.46% | 100.00% |
| Retreat at Peachtree City | Peachtree City, GA | 312 | 980 | May 2021 | 72500 | 72500 |  | 58412 | 58412 | 1735 | 1735 | 97.12% | 100.00% |
| Scott Mountain | Portland, OR | 262 | 927 | May 2021 | 70700 | 70700 |  | 48340 | 48340 | 1807 | 1807 | 94.66% | 95.80% |
| Stonebriar of Frisco | Frisco, TX | 306 | 963 | May 2021 | 59200 | 59200 |  | 53600 | 53600 | 1541 | 1541 | 94.12% | 84.19% |
| Summer Park | Buford, GA | 358 | 1064 | May 2021 | 75500 | 75500 |  | 52398 | 52398 | 1561 | 1561 | 93.02% | 98.68% |
| The Marq Highland Park <sup>(2)</sup> | Tampa, FL | 239 | 999 | May 2021 | 65700 | 65700 |  | 46802 | 46802 | 2124 | 2124 | 93.72% | 74.10% |
| Toscana at Valley Ridge | Lewisville, TX | 288 | 738 | May 2021 | 47700 | 47700 |  | 32571 | 32571 | 1267 | 1267 | 95.49% | 58.60% |
| **Total / Weighted-Average** |  | 7461 | 936 |  | $| 1756961 |  | $| 1165979 | $| 1686 | 93.59% | 90.15% |
| <sup>(1)</sup> Mortgage debt outstanding is shown as if CROP owned 100% of the property. | <sup>(1)</sup> Mortgage debt outstanding is shown as if CROP owned 100% of the property. | <sup>(1)</sup> Mortgage debt outstanding is shown as if CROP owned 100% of the property. | <sup>(1)</sup> Mortgage debt outstanding is shown as if CROP owned 100% of the property. | <sup>(1)</sup> Mortgage debt outstanding is shown as if CROP owned 100% of the property. | <sup>(1)</sup> Mortgage debt outstanding is shown as if CROP owned 100% of the property. | <sup>(1)</sup> Mortgage debt outstanding is shown as if CROP owned 100% of the property. | <sup>(1)</sup> Mortgage debt outstanding is shown as if CROP owned 100% of the property. | <sup>(1)</sup> Mortgage debt outstanding is shown as if CROP owned 100% of the property. | <sup>(1)</sup> Mortgage debt outstanding is shown as if CROP owned 100% of the property. | <sup>(1)</sup> Mortgage debt outstanding is shown as if CROP owned 100% of the property. | <sup>(1)</sup> Mortgage debt outstanding is shown as if CROP owned 100% of the property. | <sup>(1)</sup> Mortgage debt outstanding is shown as if CROP owned 100% of the property. | <sup>(1)</sup> Mortgage debt outstanding is shown as if CROP owned 100% of the property. |
| <sup>(2)</sup> Data from commercial retail units are excluded from number of units and physical occupancy. | <sup>(2)</sup> Data from commercial retail units are excluded from number of units and physical occupancy. | <sup>(2)</sup> Data from commercial retail units are excluded from number of units and physical occupancy. | <sup>(2)</sup> Data from commercial retail units are excluded from number of units and physical occupancy. | <sup>(2)</sup> Data from commercial retail units are excluded from number of units and physical occupancy. | <sup>(2)</sup> Data from commercial retail units are excluded from number of units and physical occupancy. | <sup>(2)</sup> Data from commercial retail units are excluded from number of units and physical occupancy. | <sup>(2)</sup> Data from commercial retail units are excluded from number of units and physical occupancy. | <sup>(2)</sup> Data from commercial retail units are excluded from number of units and physical occupancy. | <sup>(2)</sup> Data from commercial retail units are excluded from number of units and physical occupancy. | <sup>(2)</sup> Data from commercial retail units are excluded from number of units and physical occupancy. | <sup>(2)</sup> Data from commercial retail units are excluded from number of units and physical occupancy. | <sup>(2)</sup> Data from commercial retail units are excluded from number of units and physical occupancy. | <sup>(2)</sup> Data from commercial retail units are excluded from number of units and physical occupancy. |
| <sup>(3)</sup> On June 27, 2025, we transferred 805 Riverfront to Cottonwood Riverfront DST, a Delaware Statutory Trust, in which we currently own 100% of the interests.  | <sup>(3)</sup> On June 27, 2025, we transferred 805 Riverfront to Cottonwood Riverfront DST, a Delaware Statutory Trust, in which we currently own 100% of the interests.  | <sup>(3)</sup> On June 27, 2025, we transferred 805 Riverfront to Cottonwood Riverfront DST, a Delaware Statutory Trust, in which we currently own 100% of the interests.  | <sup>(3)</sup> On June 27, 2025, we transferred 805 Riverfront to Cottonwood Riverfront DST, a Delaware Statutory Trust, in which we currently own 100% of the interests.  | <sup>(3)</sup> On June 27, 2025, we transferred 805 Riverfront to Cottonwood Riverfront DST, a Delaware Statutory Trust, in which we currently own 100% of the interests.  | <sup>(3)</sup> On June 27, 2025, we transferred 805 Riverfront to Cottonwood Riverfront DST, a Delaware Statutory Trust, in which we currently own 100% of the interests.  | <sup>(3)</sup> On June 27, 2025, we transferred 805 Riverfront to Cottonwood Riverfront DST, a Delaware Statutory Trust, in which we currently own 100% of the interests.  | <sup>(3)</sup> On June 27, 2025, we transferred 805 Riverfront to Cottonwood Riverfront DST, a Delaware Statutory Trust, in which we currently own 100% of the interests.  | <sup>(3)</sup> On June 27, 2025, we transferred 805 Riverfront to Cottonwood Riverfront DST, a Delaware Statutory Trust, in which we currently own 100% of the interests.  | <sup>(3)</sup> On June 27, 2025, we transferred 805 Riverfront to Cottonwood Riverfront DST, a Delaware Statutory Trust, in which we currently own 100% of the interests.  | <sup>(3)</sup> On June 27, 2025, we transferred 805 Riverfront to Cottonwood Riverfront DST, a Delaware Statutory Trust, in which we currently own 100% of the interests.  | <sup>(3)</sup> On June 27, 2025, we transferred 805 Riverfront to Cottonwood Riverfront DST, a Delaware Statutory Trust, in which we currently own 100% of the interests.  | <sup>(3)</sup> On June 27, 2025, we transferred 805 Riverfront to Cottonwood Riverfront DST, a Delaware Statutory Trust, in which we currently own 100% of the interests.  | <sup>(3)</sup> On June 27, 2025, we transferred 805 Riverfront to Cottonwood Riverfront DST, a Delaware Statutory Trust, in which we currently own 100% of the interests.  |
| <sup>(4)</sup> These purchase price amounts represent the acquisition date fair value plus subsequent capitalized costs on the projects placed in service.  | <sup>(4)</sup> These purchase price amounts represent the acquisition date fair value plus subsequent capitalized costs on the projects placed in service.  | <sup>(4)</sup> These purchase price amounts represent the acquisition date fair value plus subsequent capitalized costs on the projects placed in service.  | <sup>(4)</sup> These purchase price amounts represent the acquisition date fair value plus subsequent capitalized costs on the projects placed in service.  | <sup>(4)</sup> These purchase price amounts represent the acquisition date fair value plus subsequent capitalized costs on the projects placed in service.  | <sup>(4)</sup> These purchase price amounts represent the acquisition date fair value plus subsequent capitalized costs on the projects placed in service.  | <sup>(4)</sup> These purchase price amounts represent the acquisition date fair value plus subsequent capitalized costs on the projects placed in service.  | <sup>(4)</sup> These purchase price amounts represent the acquisition date fair value plus subsequent capitalized costs on the projects placed in service.  | <sup>(4)</sup> These purchase price amounts represent the acquisition date fair value plus subsequent capitalized costs on the projects placed in service.  | <sup>(4)</sup> These purchase price amounts represent the acquisition date fair value plus subsequent capitalized costs on the projects placed in service.  | <sup>(4)</sup> These purchase price amounts represent the acquisition date fair value plus subsequent capitalized costs on the projects placed in service.  | <sup>(4)</sup> These purchase price amounts represent the acquisition date fair value plus subsequent capitalized costs on the projects placed in service.  | <sup>(4)</sup> These purchase price amounts represent the acquisition date fair value plus subsequent capitalized costs on the projects placed in service.  | <sup>(4)</sup> These purchase price amounts represent the acquisition date fair value plus subsequent capitalized costs on the projects placed in service.  |
| <sup>(5)</sup> CROP's percentage ownership is not proportionate to the total amount CROP invested in the project due to a disproportionate ownership percentage assigned to CROP and related parties as fees and commissions were waived for the sponsor and its affiliates. | <sup>(5)</sup> CROP's percentage ownership is not proportionate to the total amount CROP invested in the project due to a disproportionate ownership percentage assigned to CROP and related parties as fees and commissions were waived for the sponsor and its affiliates. | <sup>(5)</sup> CROP's percentage ownership is not proportionate to the total amount CROP invested in the project due to a disproportionate ownership percentage assigned to CROP and related parties as fees and commissions were waived for the sponsor and its affiliates. | <sup>(5)</sup> CROP's percentage ownership is not proportionate to the total amount CROP invested in the project due to a disproportionate ownership percentage assigned to CROP and related parties as fees and commissions were waived for the sponsor and its affiliates. | <sup>(5)</sup> CROP's percentage ownership is not proportionate to the total amount CROP invested in the project due to a disproportionate ownership percentage assigned to CROP and related parties as fees and commissions were waived for the sponsor and its affiliates. | <sup>(5)</sup> CROP's percentage ownership is not proportionate to the total amount CROP invested in the project due to a disproportionate ownership percentage assigned to CROP and related parties as fees and commissions were waived for the sponsor and its affiliates. | <sup>(5)</sup> CROP's percentage ownership is not proportionate to the total amount CROP invested in the project due to a disproportionate ownership percentage assigned to CROP and related parties as fees and commissions were waived for the sponsor and its affiliates. | <sup>(5)</sup> CROP's percentage ownership is not proportionate to the total amount CROP invested in the project due to a disproportionate ownership percentage assigned to CROP and related parties as fees and commissions were waived for the sponsor and its affiliates. | <sup>(5)</sup> CROP's percentage ownership is not proportionate to the total amount CROP invested in the project due to a disproportionate ownership percentage assigned to CROP and related parties as fees and commissions were waived for the sponsor and its affiliates. | <sup>(5)</sup> CROP's percentage ownership is not proportionate to the total amount CROP invested in the project due to a disproportionate ownership percentage assigned to CROP and related parties as fees and commissions were waived for the sponsor and its affiliates. | <sup>(5)</sup> CROP's percentage ownership is not proportionate to the total amount CROP invested in the project due to a disproportionate ownership percentage assigned to CROP and related parties as fees and commissions were waived for the sponsor and its affiliates. | <sup>(5)</sup> CROP's percentage ownership is not proportionate to the total amount CROP invested in the project due to a disproportionate ownership percentage assigned to CROP and related parties as fees and commissions were waived for the sponsor and its affiliates. | <sup>(5)</sup> CROP's percentage ownership is not proportionate to the total amount CROP invested in the project due to a disproportionate ownership percentage assigned to CROP and related parties as fees and commissions were waived for the sponsor and its affiliates. | <sup>(5)</sup> CROP's percentage ownership is not proportionate to the total amount CROP invested in the project due to a disproportionate ownership percentage assigned to CROP and related parties as fees and commissions were waived for the sponsor and its affiliates. |

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

*Development/Lease-Up Properties ($ in thousands)*

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Property Name** | **Market** | **Units to<br>be Built** | **Average<br>Unit Size<br>(Sq Ft)** | **Purchase Date** | **Total Project Investment** | **Debt Outstanding** <sup>(1)</sup> | **Physical Occupancy Rate** <sup>(2)</sup> | **Percentage<br>Owned by<br>CROP** |
| The Westerly <sup>(3)</sup> | Salt Lake City, UT | 198 | 808 | May 2021 <sup>(3)</sup> | 49893 |  | —% | 82.45% |
| <sup>(1)</sup> Debt outstanding is shown as if CROP owned 100% of the development property. | <sup>(1)</sup> Debt outstanding is shown as if CROP owned 100% of the development property. | <sup>(1)</sup> Debt outstanding is shown as if CROP owned 100% of the development property. | <sup>(1)</sup> Debt outstanding is shown as if CROP owned 100% of the development property. | <sup>(1)</sup> Debt outstanding is shown as if CROP owned 100% of the development property. | <sup>(1)</sup> Debt outstanding is shown as if CROP owned 100% of the development property. | <sup>(1)</sup> Debt outstanding is shown as if CROP owned 100% of the development property. | <sup>(1)</sup> Debt outstanding is shown as if CROP owned 100% of the development property. | <sup>(1)</sup> Debt outstanding is shown as if CROP owned 100% of the development property. |
| <sup>(2)</sup> The Westerly is estimated to be completed in the second quarter of 2026. | <sup>(2)</sup> The Westerly is estimated to be completed in the second quarter of 2026. | <sup>(2)</sup> The Westerly is estimated to be completed in the second quarter of 2026. | <sup>(2)</sup> The Westerly is estimated to be completed in the second quarter of 2026. | <sup>(2)</sup> The Westerly is estimated to be completed in the second quarter of 2026. | <sup>(2)</sup> The Westerly is estimated to be completed in the second quarter of 2026. | <sup>(2)</sup> The Westerly is estimated to be completed in the second quarter of 2026. | <sup>(2)</sup> The Westerly is estimated to be completed in the second quarter of 2026. | <sup>(2)</sup> The Westerly is estimated to be completed in the second quarter of 2026. |
| <sup>(3)</sup> Construction on The Westerly began in July 2023. The amount above includes contributions from the Block C Joint Venture to The Westerly as of June 30, 2025 including the related land cost and capital expenditures. Refer to the land held for development table below for additional information on the Block C Joint Venture. | <sup>(3)</sup> Construction on The Westerly began in July 2023. The amount above includes contributions from the Block C Joint Venture to The Westerly as of June 30, 2025 including the related land cost and capital expenditures. Refer to the land held for development table below for additional information on the Block C Joint Venture. | <sup>(3)</sup> Construction on The Westerly began in July 2023. The amount above includes contributions from the Block C Joint Venture to The Westerly as of June 30, 2025 including the related land cost and capital expenditures. Refer to the land held for development table below for additional information on the Block C Joint Venture. | <sup>(3)</sup> Construction on The Westerly began in July 2023. The amount above includes contributions from the Block C Joint Venture to The Westerly as of June 30, 2025 including the related land cost and capital expenditures. Refer to the land held for development table below for additional information on the Block C Joint Venture. | <sup>(3)</sup> Construction on The Westerly began in July 2023. The amount above includes contributions from the Block C Joint Venture to The Westerly as of June 30, 2025 including the related land cost and capital expenditures. Refer to the land held for development table below for additional information on the Block C Joint Venture. | <sup>(3)</sup> Construction on The Westerly began in July 2023. The amount above includes contributions from the Block C Joint Venture to The Westerly as of June 30, 2025 including the related land cost and capital expenditures. Refer to the land held for development table below for additional information on the Block C Joint Venture. | <sup>(3)</sup> Construction on The Westerly began in July 2023. The amount above includes contributions from the Block C Joint Venture to The Westerly as of June 30, 2025 including the related land cost and capital expenditures. Refer to the land held for development table below for additional information on the Block C Joint Venture. | <sup>(3)</sup> Construction on The Westerly began in July 2023. The amount above includes contributions from the Block C Joint Venture to The Westerly as of June 30, 2025 including the related land cost and capital expenditures. Refer to the land held for development table below for additional information on the Block C Joint Venture. | <sup>(3)</sup> Construction on The Westerly began in July 2023. The amount above includes contributions from the Block C Joint Venture to The Westerly as of June 30, 2025 including the related land cost and capital expenditures. Refer to the land held for development table below for additional information on the Block C Joint Venture. |

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*Structured Investments ($ in thousands)*

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Property Name** | **Market** | **Investment Type** | **Date of Initial Investment** | **Number of Units** | **Funding Commitment** | **Funding Commitment** | **Amount Funded to Date** | **Amount Funded to Date** |
| 417 Callowhill | Philadelphia, PA | Preferred Equity | November 2022 | 220 | $| 33413 | $| 33413 |
| 2215 Hollywood | Hollywood, FL | Mezzanine Loan | April 2023 | 180 | 10045 | 10045 | 10045 | 10045 |
| Monrovia Station | Monrovia, CA | Mezzanine Loan | July 2023 | 296 | 20150 | 20150 | 20150 | 20150 |
| Infield <sup>(1)</sup> | Kissimmee, FL | Preferred Equity | November 2023 | 384 | 14650 | 14650 | 13650 | 13650 |
| Prospect at Central <sup>(2)</sup> | Denver, CO | Mezzanine Loan | April 2025 | 65 | 5100 | 5100 | 5100 | 5100 |
| The Bowline <sup>(3)</sup> | Santa Rosa Beach, FL | Mezzanine Loan | May 2025 | 162 | 8418 | 8418 | 3116 | 3116 |
| **Total** |  |  |  | 1307 | $| 91776 | $| 85474 |
| <sup>(1)</sup> On April 25, 2025, we increased our commitment by an additional $2.0 million on the Infield preferred equity investment, and funded $1.0 million on April 30, 2025, bringing our total funding to $13.7 million.  | <sup>(1)</sup> On April 25, 2025, we increased our commitment by an additional $2.0 million on the Infield preferred equity investment, and funded $1.0 million on April 30, 2025, bringing our total funding to $13.7 million.  | <sup>(1)</sup> On April 25, 2025, we increased our commitment by an additional $2.0 million on the Infield preferred equity investment, and funded $1.0 million on April 30, 2025, bringing our total funding to $13.7 million.  | <sup>(1)</sup> On April 25, 2025, we increased our commitment by an additional $2.0 million on the Infield preferred equity investment, and funded $1.0 million on April 30, 2025, bringing our total funding to $13.7 million.  | <sup>(1)</sup> On April 25, 2025, we increased our commitment by an additional $2.0 million on the Infield preferred equity investment, and funded $1.0 million on April 30, 2025, bringing our total funding to $13.7 million.  | <sup>(1)</sup> On April 25, 2025, we increased our commitment by an additional $2.0 million on the Infield preferred equity investment, and funded $1.0 million on April 30, 2025, bringing our total funding to $13.7 million.  | <sup>(1)</sup> On April 25, 2025, we increased our commitment by an additional $2.0 million on the Infield preferred equity investment, and funded $1.0 million on April 30, 2025, bringing our total funding to $13.7 million.  | <sup>(1)</sup> On April 25, 2025, we increased our commitment by an additional $2.0 million on the Infield preferred equity investment, and funded $1.0 million on April 30, 2025, bringing our total funding to $13.7 million.  | <sup>(1)</sup> On April 25, 2025, we increased our commitment by an additional $2.0 million on the Infield preferred equity investment, and funded $1.0 million on April 30, 2025, bringing our total funding to $13.7 million.  |
| <sup>(2)</sup> On April 16, 2025, we provided a $5.1 million mezzanine loan to Prospect on Central, a mixed-use property in Denver, Colorado. The mezzanine loan consisted of $3.8 million in cash with a discount of $1.3 million. The mezzanine loan is paid current interest at a rate of 15.0% on $5.1 million and matures on May 8, 2027 with two 12-month extension options, subject to conditions being met. | <sup>(2)</sup> On April 16, 2025, we provided a $5.1 million mezzanine loan to Prospect on Central, a mixed-use property in Denver, Colorado. The mezzanine loan consisted of $3.8 million in cash with a discount of $1.3 million. The mezzanine loan is paid current interest at a rate of 15.0% on $5.1 million and matures on May 8, 2027 with two 12-month extension options, subject to conditions being met. | <sup>(2)</sup> On April 16, 2025, we provided a $5.1 million mezzanine loan to Prospect on Central, a mixed-use property in Denver, Colorado. The mezzanine loan consisted of $3.8 million in cash with a discount of $1.3 million. The mezzanine loan is paid current interest at a rate of 15.0% on $5.1 million and matures on May 8, 2027 with two 12-month extension options, subject to conditions being met. | <sup>(2)</sup> On April 16, 2025, we provided a $5.1 million mezzanine loan to Prospect on Central, a mixed-use property in Denver, Colorado. The mezzanine loan consisted of $3.8 million in cash with a discount of $1.3 million. The mezzanine loan is paid current interest at a rate of 15.0% on $5.1 million and matures on May 8, 2027 with two 12-month extension options, subject to conditions being met. | <sup>(2)</sup> On April 16, 2025, we provided a $5.1 million mezzanine loan to Prospect on Central, a mixed-use property in Denver, Colorado. The mezzanine loan consisted of $3.8 million in cash with a discount of $1.3 million. The mezzanine loan is paid current interest at a rate of 15.0% on $5.1 million and matures on May 8, 2027 with two 12-month extension options, subject to conditions being met. | <sup>(2)</sup> On April 16, 2025, we provided a $5.1 million mezzanine loan to Prospect on Central, a mixed-use property in Denver, Colorado. The mezzanine loan consisted of $3.8 million in cash with a discount of $1.3 million. The mezzanine loan is paid current interest at a rate of 15.0% on $5.1 million and matures on May 8, 2027 with two 12-month extension options, subject to conditions being met. | <sup>(2)</sup> On April 16, 2025, we provided a $5.1 million mezzanine loan to Prospect on Central, a mixed-use property in Denver, Colorado. The mezzanine loan consisted of $3.8 million in cash with a discount of $1.3 million. The mezzanine loan is paid current interest at a rate of 15.0% on $5.1 million and matures on May 8, 2027 with two 12-month extension options, subject to conditions being met. | <sup>(2)</sup> On April 16, 2025, we provided a $5.1 million mezzanine loan to Prospect on Central, a mixed-use property in Denver, Colorado. The mezzanine loan consisted of $3.8 million in cash with a discount of $1.3 million. The mezzanine loan is paid current interest at a rate of 15.0% on $5.1 million and matures on May 8, 2027 with two 12-month extension options, subject to conditions being met. | <sup>(2)</sup> On April 16, 2025, we provided a $5.1 million mezzanine loan to Prospect on Central, a mixed-use property in Denver, Colorado. The mezzanine loan consisted of $3.8 million in cash with a discount of $1.3 million. The mezzanine loan is paid current interest at a rate of 15.0% on $5.1 million and matures on May 8, 2027 with two 12-month extension options, subject to conditions being met. |
| <sup>(3)</sup> On May 20, 2025, we entered into an agreement to provide a $8.4 million mezzanine loan to the sponsor of Bowline, a ground-up development in Santa Rosa Beach, Florida. As of June 30, 2025, we funded $2.6 million upon the execution of the agreement and an additional $0.5 million on June 20, 2025. The mezzanine loan accrues interest at a rate of 14.75% on the entire commitment and matures on May 20, 2029 with two 12-month extension options, subject to conditions being met.  | <sup>(3)</sup> On May 20, 2025, we entered into an agreement to provide a $8.4 million mezzanine loan to the sponsor of Bowline, a ground-up development in Santa Rosa Beach, Florida. As of June 30, 2025, we funded $2.6 million upon the execution of the agreement and an additional $0.5 million on June 20, 2025. The mezzanine loan accrues interest at a rate of 14.75% on the entire commitment and matures on May 20, 2029 with two 12-month extension options, subject to conditions being met.  | <sup>(3)</sup> On May 20, 2025, we entered into an agreement to provide a $8.4 million mezzanine loan to the sponsor of Bowline, a ground-up development in Santa Rosa Beach, Florida. As of June 30, 2025, we funded $2.6 million upon the execution of the agreement and an additional $0.5 million on June 20, 2025. The mezzanine loan accrues interest at a rate of 14.75% on the entire commitment and matures on May 20, 2029 with two 12-month extension options, subject to conditions being met.  | <sup>(3)</sup> On May 20, 2025, we entered into an agreement to provide a $8.4 million mezzanine loan to the sponsor of Bowline, a ground-up development in Santa Rosa Beach, Florida. As of June 30, 2025, we funded $2.6 million upon the execution of the agreement and an additional $0.5 million on June 20, 2025. The mezzanine loan accrues interest at a rate of 14.75% on the entire commitment and matures on May 20, 2029 with two 12-month extension options, subject to conditions being met.  | <sup>(3)</sup> On May 20, 2025, we entered into an agreement to provide a $8.4 million mezzanine loan to the sponsor of Bowline, a ground-up development in Santa Rosa Beach, Florida. As of June 30, 2025, we funded $2.6 million upon the execution of the agreement and an additional $0.5 million on June 20, 2025. The mezzanine loan accrues interest at a rate of 14.75% on the entire commitment and matures on May 20, 2029 with two 12-month extension options, subject to conditions being met.  | <sup>(3)</sup> On May 20, 2025, we entered into an agreement to provide a $8.4 million mezzanine loan to the sponsor of Bowline, a ground-up development in Santa Rosa Beach, Florida. As of June 30, 2025, we funded $2.6 million upon the execution of the agreement and an additional $0.5 million on June 20, 2025. The mezzanine loan accrues interest at a rate of 14.75% on the entire commitment and matures on May 20, 2029 with two 12-month extension options, subject to conditions being met.  | <sup>(3)</sup> On May 20, 2025, we entered into an agreement to provide a $8.4 million mezzanine loan to the sponsor of Bowline, a ground-up development in Santa Rosa Beach, Florida. As of June 30, 2025, we funded $2.6 million upon the execution of the agreement and an additional $0.5 million on June 20, 2025. The mezzanine loan accrues interest at a rate of 14.75% on the entire commitment and matures on May 20, 2029 with two 12-month extension options, subject to conditions being met.  | <sup>(3)</sup> On May 20, 2025, we entered into an agreement to provide a $8.4 million mezzanine loan to the sponsor of Bowline, a ground-up development in Santa Rosa Beach, Florida. As of June 30, 2025, we funded $2.6 million upon the execution of the agreement and an additional $0.5 million on June 20, 2025. The mezzanine loan accrues interest at a rate of 14.75% on the entire commitment and matures on May 20, 2029 with two 12-month extension options, subject to conditions being met.  | <sup>(3)</sup> On May 20, 2025, we entered into an agreement to provide a $8.4 million mezzanine loan to the sponsor of Bowline, a ground-up development in Santa Rosa Beach, Florida. As of June 30, 2025, we funded $2.6 million upon the execution of the agreement and an additional $0.5 million on June 20, 2025. The mezzanine loan accrues interest at a rate of 14.75% on the entire commitment and matures on May 20, 2029 with two 12-month extension options, subject to conditions being met.  |

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*Land Held for Development ($ in thousands)*

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Property Name** | **Market** | **Acreage** | **Purchase Date** | **Total Investment Amount** | **Percentage Owned by CROP** |
| Block C Joint Venture <sup>(1)</sup> | Salt Lake City, UT | 1.69 acres | May 2021 | $9534 | 82.45% |
| 3300 Cottonwood | Salt Lake City, UT | 1.76 acres | October 2021 | 7666 | 100.00% |
| Galleria <sup>(2)</sup> | Salt Lake City, UT | 26.07 acres | September 2022 | 30240 | 100.00% |
| **Total** |  |  |  | $47440 |  |
| <sup>(1)</sup> The total investment amount above for the Block C Joint Venture consists of land held for development for Millcreek North and The Archer multifamily development projects and cash held at the joint venture for future investment. The Westerly, a project currently under development, is also funded through the Block C Joint Venture and reflected separately in the development property table above. On January 31, 2025, we entered into a contract to sell The Archer for $3.0 million. We expect to close during the third quarter of 2025. | <sup>(1)</sup> The total investment amount above for the Block C Joint Venture consists of land held for development for Millcreek North and The Archer multifamily development projects and cash held at the joint venture for future investment. The Westerly, a project currently under development, is also funded through the Block C Joint Venture and reflected separately in the development property table above. On January 31, 2025, we entered into a contract to sell The Archer for $3.0 million. We expect to close during the third quarter of 2025. | <sup>(1)</sup> The total investment amount above for the Block C Joint Venture consists of land held for development for Millcreek North and The Archer multifamily development projects and cash held at the joint venture for future investment. The Westerly, a project currently under development, is also funded through the Block C Joint Venture and reflected separately in the development property table above. On January 31, 2025, we entered into a contract to sell The Archer for $3.0 million. We expect to close during the third quarter of 2025. | <sup>(1)</sup> The total investment amount above for the Block C Joint Venture consists of land held for development for Millcreek North and The Archer multifamily development projects and cash held at the joint venture for future investment. The Westerly, a project currently under development, is also funded through the Block C Joint Venture and reflected separately in the development property table above. On January 31, 2025, we entered into a contract to sell The Archer for $3.0 million. We expect to close during the third quarter of 2025. | <sup>(1)</sup> The total investment amount above for the Block C Joint Venture consists of land held for development for Millcreek North and The Archer multifamily development projects and cash held at the joint venture for future investment. The Westerly, a project currently under development, is also funded through the Block C Joint Venture and reflected separately in the development property table above. On January 31, 2025, we entered into a contract to sell The Archer for $3.0 million. We expect to close during the third quarter of 2025. | <sup>(1)</sup> The total investment amount above for the Block C Joint Venture consists of land held for development for Millcreek North and The Archer multifamily development projects and cash held at the joint venture for future investment. The Westerly, a project currently under development, is also funded through the Block C Joint Venture and reflected separately in the development property table above. On January 31, 2025, we entered into a contract to sell The Archer for $3.0 million. We expect to close during the third quarter of 2025. |
| <sup>(2)</sup> On October 15, 2024, we entered into a contract to sell approximately 6.9 acres of land at Galleria for $8.0 million. We expect to close during the third quarter of 2025. | <sup>(2)</sup> On October 15, 2024, we entered into a contract to sell approximately 6.9 acres of land at Galleria for $8.0 million. We expect to close during the third quarter of 2025. | <sup>(2)</sup> On October 15, 2024, we entered into a contract to sell approximately 6.9 acres of land at Galleria for $8.0 million. We expect to close during the third quarter of 2025. | <sup>(2)</sup> On October 15, 2024, we entered into a contract to sell approximately 6.9 acres of land at Galleria for $8.0 million. We expect to close during the third quarter of 2025. | <sup>(2)</sup> On October 15, 2024, we entered into a contract to sell approximately 6.9 acres of land at Galleria for $8.0 million. We expect to close during the third quarter of 2025. | <sup>(2)</sup> On October 15, 2024, we entered into a contract to sell approximately 6.9 acres of land at Galleria for $8.0 million. We expect to close during the third quarter of 2025. |

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

**Results of Operations**

Our results of operations for the three and six months ended June 30, 2025 and 2024 are as follows ($ in thousands, except share and per share data):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended <br>June 30,** | **Three Months Ended <br>June 30,** | | **Six Months Ended <br>June 30,** | **Six Months Ended <br>June 30,** | |
| | **2025** | **2024** |<br>**Change** | **2025** | **2024** |<br>**Change** |
| **Revenues** |  |  |  |  |  |  |
| &nbsp;&nbsp;Rental and other property revenues | $35185 | $37066 | $(1881) | $72493 | $71421 | $1072 |
| &nbsp;&nbsp;Property management revenues | 1659 | 2043 | (384) | 3451 | 4382 | (931) |
| &nbsp;&nbsp;Other revenues | 2140 | 989 | 1151 | 3706 | 1774 | 1932 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 38984 | 40098 | (1114) | 79650 | 77577 | 2073 |
| **Operating expenses** |  |  |  |  |  |  |
| &nbsp;&nbsp;Property operations expense | 13543 | 13433 | 110 | 27125 | 27465 | (340) |
| &nbsp;&nbsp;Property management expense | 4785 | 4559 | 226 | 9367 | 9137 | 230 |
| &nbsp;&nbsp;Asset management fee | 3032 | 3129 | (97) | 6123 | 6273 | (150) |
| &nbsp;&nbsp;Depreciation and amortization | 14236 | 17199 | (2963) | 29186 | 32153 | (2967) |
| &nbsp;&nbsp;General and administrative expenses | 2930 | 1178 | 1752 | 5489 | 2945 | 2544 |
| &nbsp;&nbsp;Impairment loss |  |  |  | 957 |  | 957 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 38526 | 39498 | (972) | 78247 | 77973 | 274 |
| Income (loss) from operations | 458 | 600 | (142) | 1403 | (396) | 1799 |
| &nbsp;&nbsp;Equity in earnings of unconsolidated real estate entities | 1516 | 2250 | (734) | 2885 | 3618 | (733) |
| &nbsp;&nbsp;Interest income | 481 | 495 | (14) | 815 | 968 | (153) |
| &nbsp;&nbsp;Interest expense | (18312) | (21257) | 2945 | (38359) | (41675) | 3316 |
| &nbsp;&nbsp;Loss on debt extinguishment | (1634) | (201) | (1433) | (1732) | (1440) | (292) |
| &nbsp;&nbsp;Gain on sale of real estate assets | 56834 | 5 | 56829 | 64766 | 26643 | 38123 |
| &nbsp;&nbsp;Gain on legal settlement |  |  |  | 400 |  | 400 |
| &nbsp;&nbsp;Other (expense) income | (3144) | (1105) | (2039) | (7118) | 117 | (7235) |
| Income (loss) before income taxes | 36199 | (19213) | 55412 | 23060 | (12165) | 35225 |
| &nbsp;&nbsp;Income tax benefit (expense) | 295 | (47) | 342 | 420 | (32) | 452 |
| &nbsp;&nbsp;&nbsp;&nbsp;**&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss)** | 36494 | (19260) | 55754 | 23480 | (12197) | 35677 |
| Net (income) loss attributable to noncontrolling interests: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Limited partners | (18720) | 9051 | (27771) | (12315) | 5195 | (17510) |
| &nbsp;&nbsp;&nbsp;Partially owned entities | 408 | 861 | (453) | 744 | 1573 | (829) |
| **Net income (loss) attributable to controlling interests** | 18182 | (9348) | 27530 | 11909 | (5429) | 17338 |
| &nbsp;&nbsp;&nbsp;Less: preferred stock dividends | $1684 | $471 | $1213 | $3017 | $614 | $2403 |
| **Net income (loss) attributable to common stockholders** | $16498 | $(9819) | $26317 | $8892 | $(6043) | $14935 |
| Weighted-average common shares outstanding - basic | 31018873 | 31647211 |  | 31279782 | 31614142 |  |
| Weighted-average common shares outstanding - diluted | 38574476 | 31647211 |  | 31279782 | 31614142 |  |
| Net earnings (losses) per common share - basic | $0.53 | $(0.31) |  | $0.28 | $(0.19) |  |
| Net earnings (losses) per common share - diluted | $0.47 | $(0.31) |  | $0.28 | $(0.19) |  |

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***Comparison of the Three Months Ended June 30, 2025 and 2024***

*Rental and Other Property Revenues*

Rental and other property revenues decreased $1.9 million due to a decrease of $2.9 million from the sale of Cottonwood Broadway, Parc Westborough and Sugarmont in 2025 and a decrease of $1.6 million from the deconsolidation of The Marq Highland Park in July 2024. This was offset by an increase of $0.4 million from the consolidation of Alpha Mill in April 2024 and an increase of $2.2 million from the lease-up of 805 Riverfront and Cottonwood Highland during 2024.

*Other Revenues*

Other revenues increased $1.2 million due to interest earned from additional investments in real estate-related loans.

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

*General and Administrative Expenses*

General and administrative expenses increased $1.8 million primarily due to increased legal costs.

*Interest Expense*

Interest expense decreased $2.9 million primarily due to a decrease of $1.5 million from debt paid off with the property sales in 2025 and a decrease of $0.6 million from the deconsolidation of The Marq Highland Park. Other interest decreases came from refinancing development bridge loans and the paydown of debt balances. These decreases were offset by $0.8 million of additional interest from preferred stock and additional interest from land loans.

*Loss on Debt Extinguishment*

Loss on debt extinguishment increased $1.4 million due to $1.6 million associated with the payoff of the Cottonwood Broadway, Parc Westborough and Sugarmont mortgages in 2025 compared to $0.2 million associated with a refinance in 2024.

*Gain on Sale of Real Estate Assets*

The $56.8 million gain on sale of real estate was from the sale of Parc Westborough and Sugarmont. There were no sales of real estate assets during same period in the prior year.

*Other (Expense) Income*

Net other expenses increased $2.0 million primarily due to $2.5 million in selling commissions and expenses associated with Series 2025 Preferred Stock Exchanges offset by changes in the fair value of interest rate caps.

***Comparison of the Six Months Ended June 30, 2025 and 2024***

*Rental and Other Property Revenues*

Rental and other property revenues increased $1.1 million due to an increase of $3.1 million from the consolidation of Cottonwood Lighthouse Point and Alpha Mill in March 2024 and April 2024, respectively, an increase of $5.1 million from the lease-up of 805 Riverfront and Cottonwood Highland during 2024, offset by a decrease of $4.0 million from property sales in 2024 and 2025 and a decrease of $3.2 million from the deconsolidation of The Marq Highland Park.

*Other Revenues*

Other revenues increased $1.9 million due to interest earned from additional investments in real estate-related loans.

*General and Administrative Expenses*

General and administrative expenses increased $2.5 million primarily due to increased legal costs.

*Interest Expense*

Interest expense decreased $3.3 million due to a decrease of $2.0 million from debt paid off with property sales in 2024 and 2025 and a decrease of $1.2 million from the deconsolidation of The Marq Highland Park. Other interest decreases came from refinancing development bridge loans and the paydown of debt balances. These decreases were offset by $1.4 million of additional interest from preferred stock, additional interest from land loans in 2025 and consolidation of assets in 2024.

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

*Gain on Sale of Real Estate Assets*

The $64.8 million gain on sale of real estate was from the sale of Cottonwood Broadway, Parc Westborough and Sugarmont. The $26.6 million gain on sale of real estate during the six months ended June 30, 2024 was from the sale of Cottonwood West Palm.

*Other (Expense) Income*

Net other expenses increased $7.2 million primarily due to $5.6 million in selling commissions and expenses associated with Series 2025 Preferred Stock Exchanges and changes in the fair value of interest rate caps.

**Reportable Segment Net Operating Income**

Reportable segment net operating income ("Reportable Segment NOI") is a supplemental non-GAAP measure of our property operating results. We define Reportable Segment NOI as operating revenues less operating expenses. We consider Reportable Segment NOI to be an appropriate supplemental measure of operating performance to net income because it measures the core operations of property performance by excluding corporate level expenses, depreciation and amortization, and other items not directly related to ongoing property operating performance. While we believe our net income (loss), as defined by GAAP, to be the most appropriate measure to evaluate our overall performance, we consider Reportable Segment NOI to be an appropriate supplemental performance measure. We believe Reportable Segment NOI provides useful information to our investors regarding our results of operations because it reflects the operating performance of our properties and excludes certain items that are not considered to be controllable in connection with the management of properties, such as real estate-related depreciation and amortization, general and administrative expenses, advisory and property management fees, interest expense, gains on sale of real estate, other income and expense, and noncontrolling interests. However, Reportable Segment NOI should not be viewed as an alternative measure of our financial performance since it excludes such items which could materially impact our results of operations. Further, our Reportable Segment NOI may not be comparable to that of other real estate companies, as they may use different methodologies for calculating reportable segment net operating income, therefore, our investors should consider net income (loss) as the primary indicator of our overall financial performance.

As discussed in <u>[Note 15](#id69865b80f9a4c5da1e826485571e6cf_70)</u> of the condensed consolidated financial statements, Reportable Segment NOI represents 100% of each of our consolidated and unconsolidated properties' reportable segment rental and other property revenues and reportable segment property operations expense. Of our portfolio of multifamily properties, 22 are consolidated and four are unconsolidated for financial reporting purposes. We believe the drivers of Reportable Segment NOI for our consolidated properties are generally the same for our unconsolidated properties, of which we own on average 62.8%.

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

The following table reconciles the net income (loss) attributable to common stockholders in the condensed consolidated statements of operations to Reportable Segment NOI for the three and six months ended June 30, 2025 and 2024 ($ in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net income (loss) attributable to common stockholders | $16498 | $(9819) | $8892 | $(6043) |
| &nbsp;&nbsp;Depreciation and amortization | 14236 | 17199 | 29186 | 32153 |
| &nbsp;&nbsp;General and administrative expenses | 2930 | 1178 | 5489 | 2945 |
| &nbsp;&nbsp;Impairment loss |  |  | 957 |  |
| &nbsp;&nbsp;Property management revenues | (1659) | (2043) | (3451) | (4382) |
| &nbsp;&nbsp;Property management expense | 4785 | 4559 | 9367 | 9137 |
| &nbsp;&nbsp;Asset management fee | 3032 | 3129 | 6123 | 6273 |
| &nbsp;&nbsp;Other revenues | (2140) | (989) | (3706) | (1774) |
| &nbsp;&nbsp;Equity in earnings of unconsolidated real estate entities | (1516) | (2250) | (2885) | (3618) |
| &nbsp;&nbsp;Interest income | (481) | (495) | (815) | (968) |
| &nbsp;&nbsp;Interest expense | 18312 | 21257 | 38359 | 41675 |
| &nbsp;&nbsp;Loss on debt extinguishment | 1634 | 201 | 1732 | 1440 |
| &nbsp;&nbsp;Gain on sale of real estate assets | (56834) | (5) | (64766) | (26643) |
| &nbsp;&nbsp;Gain on legal settlement |  |  | (400) |  |
| &nbsp;&nbsp;Other expense (income) | 3144 | 1105 | 7118 | (117) |
| &nbsp;&nbsp;Income tax benefit | (295) | 47 | (420) | 32 |
| &nbsp;&nbsp;Net loss (income) attributable to noncontrolling interests - limited partners | 18720 | (9051) | 12315 | (5195) |
| &nbsp;&nbsp;Net loss attributable to noncontrolling interests - partially owned entities | (408) | (861) | (744) | (1573) |
| &nbsp;&nbsp;Less preferred stock dividends | 1684 | 471 | 3017 | 614 |
| &nbsp;&nbsp;Rental and other property revenues of unconsolidated properties | 6936 | 5795 | 14016 | 14189 |
| &nbsp;&nbsp;Property operations expense of unconsolidated properties | (2603) | (2059) | (5004) | (5492) |
| Reportable segment net operating income | $25975 | $27369 | $54380 | $52653 |

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Refer to <u>[Note 15](#id69865b80f9a4c5da1e826485571e6cf_70)</u> for the details of Reportable Segment NOI, including significant expenses, for the three and six months ended June 30, 2025 and 2024.

Reportable Segment NOI decreased $1.4 million for the three months ended June 30, 2025 when compared to the same period in the prior year primarily due to lost net operating income from the sale of Parc Westborough and Sugarmont, offset by increases in net operating income from the lease-up of Cottonwood Highland and 805 Riverfront.

Reportable Segment NOI increased $1.7 million for the six months ended June 30, 2025 when compared to the same period in the prior year primarily due to increases in net operating income from the lease-up of Cottonwood Highland and 805 Riverfront, offset by lost net operating income from property sales.

We also evaluate the performance of operating properties within our reportable segment using a same store analysis ("Same Store NOI") because the population of properties is consistent from period to period, thereby eliminating the effects of any material changes in the composition of the aggregate portfolio on performance measures. Our same store portfolio includes those properties in our reportable segment for which we manage and have ownership interests in for the entirety of both current and prior years. Operating properties excluded from same store include development properties that have undergone lease-up and properties that have been acquired or disposed during the same store reporting period. We evaluate Same Store NOI based on our ownership in the properties within the same store portfolio, applying our ownership percentage at June 30, 2025 for all periods presented. Our same store analysis may not be comparable to that of other real estate companies and should not be considered to be more relevant or accurate in evaluating our operating performance than current GAAP methodology.

For the three and six months ended June 30, 2025, our same store portfolio consisted of 20 consolidated properties, representing approximately 5,700 units, and four unconsolidated properties, representing approximately 1,200 units.

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

The following table reconciles Reportable Segment NOI, as reconciled to net income (loss) attributable to common stockholders above, to Same Store NOI for the three and six months ended June 30, 2025 and 2024 ($ in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Reportable segment net operating income | $25975 | $27369 | $54380 | $52653 |
| &nbsp;&nbsp;&nbsp;&nbsp;Lease-up properties | (2090) | (836) | (4560) | (372) |
| &nbsp;&nbsp;&nbsp;&nbsp;Disposed properties | (2098) | (3306) | (5594) | (6650) |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-core property expenses, net | 526 | (985) | 191 | (813) |
| &nbsp;&nbsp;&nbsp;&nbsp;At share adjustments <sup>(1)</sup> | (1918) | (1916) | (3888) | (3858) |
| Same Store NOI | $20395 | $20326 | $40529 | $40960 |
| <sup>(1)</sup> Adjustment to apply CROP's ownership percentage in the properties within the same store portfolio. | <sup>(1)</sup> Adjustment to apply CROP's ownership percentage in the properties within the same store portfolio. | <sup>(1)</sup> Adjustment to apply CROP's ownership percentage in the properties within the same store portfolio. | <sup>(1)</sup> Adjustment to apply CROP's ownership percentage in the properties within the same store portfolio. | <sup>(1)</sup> Adjustment to apply CROP's ownership percentage in the properties within the same store portfolio. |

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*Comparison of the Three and Six Months Ended June 30, 2025 and 2024*

Same store NOI was flat for the three months ended June 30, 2025 when compared to the same period in the prior year. Same store NOI decreased slightly for the six months ended June 30, 2025 when compared to the same periods in the prior year. The weighted-average rents for the same store portfolio were $1,656 and $1,661, while the weighted-average occupancy rate for the same store portfolio was 93.9% and 93.7% at June 30, 2025 and 2024, respectively.

**Funds from Operations**

We believe funds from operations, or FFO, is a beneficial indicator of the performance of an equity REIT and of our company. We compute FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts, or NAREIT, as net income or loss (computed in accordance with GAAP), excluding gains or losses from sales of operating real estate assets (which can vary among owners of identical assets in similar conditions based on historical cost accounting and useful-life estimates), gains and losses from change in control, impairment losses on operating real estate assets, the cumulative effect of changes in accounting principles, real estate-related depreciation and amortization, and after adjustments for our share of unconsolidated partnerships and joint ventures.

We believe FFO facilitates comparisons of operating performance between periods and among other REITs. However, our computation of FFO may not be comparable to other REITs that do not define FFO in accordance with the NAREIT definition or that interpret the current NAREIT definition differently than we do. Our management believes that historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered the presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. As a result, we believe that the use of FFO, together with the required GAAP presentations, provides a more complete understanding of our performance relative to our competitors and provides a more informed and appropriate basis on which to make decisions involving operating, financing, and investing activities.

We adjust FFO by the items below to arrive at Core FFO. Our management uses Core FFO as a measure of our operating performance. Our calculation of Core FFO may differ from the methodology used for calculating Core FFO by other REITs and, accordingly, our Core FFO may not be comparable. We believe these measures are useful to investors because they facilitate an understanding of our operating performance after adjusting for non-cash expenses and other items not indicative of ongoing operating performance.

Neither FFO nor Core FFO is equivalent to net income or cash generated from operating activities determined in accordance with U.S. GAAP. Furthermore, FFO and Core FFO do not represent amounts available for management's discretionary use because of needed capital replacement or expansion, debt service obligations or other commitments or uncertainties. Neither FFO nor Core FFO should be considered as an alternative to net income as an indicator of our operating performance.

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

The following table presents the calculation of FFO and Core FFO ($ in thousands, except share and per share data):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net income (loss) attributable to controlling interests | $18182 | $(9348) | $11909 | $(5429) |
| Adjustments to arrive at FFO: |  |  |  |  |
| &nbsp;&nbsp;Real estate-related depreciation and amortization | 13598 | 16555 | 27946 | 30834 |
| &nbsp;&nbsp;Depreciation and amortization from unconsolidated real estate entities | 1768 | 1326 | 3756 | 3613 |
| &nbsp;&nbsp;Gain on sale of real estate assets | (56834) | (5) | (64766) | (26643) |
| &nbsp;&nbsp;Income allocated to noncontrolling interests - limited partners | 18460 | (9051) | 12054 | (5195) |
| &nbsp;&nbsp;Amount attributable to above from noncontrolling interests - partially owned entities | (516) | (506) | (1030) | (1011) |
| Funds from operations attributable to common stockholders and unit holders | (5342) | (1029) | (10131) | (3831) |
| Adjustments: |  |  |  |  |
| &nbsp;&nbsp;Gain on legal settlement |  |  | (400) |  |
| &nbsp;&nbsp;Amortization of intangible assets | 638 | 643 | 1240 | 1318 |
| &nbsp;&nbsp;Amortization of debt issuance costs | 794 | 848 | 1741 | 1587 |
| &nbsp;&nbsp;Accretion of discount on preferred stock | 1013 | 733 | 1953 | 1418 |
| &nbsp;&nbsp;Selling commissions and expenses from Series 2025 Preferred Stock Exchanges | 2512 |  | 5602 |  |
| &nbsp;&nbsp;Share-based compensation | 856 | 1017 | 1895 | 1999 |
| &nbsp;&nbsp;Promote from incentive allocation agreement (tax effected) |  |  |  | (40) |
| &nbsp;&nbsp;Losses on debt extinguishment | 1633 | 200 | 1732 | 1439 |
| &nbsp;&nbsp;Impairment loss |  |  | 957 |  |
| &nbsp;&nbsp;Losses on derivatives | 347 | 1099 | 1037 | 505 |
| &nbsp;&nbsp;Legal costs and settlements, net | 87 | (1500) | 81 | (2202) |
| &nbsp;&nbsp;Other adjustments <sup>(1)</sup> | 1443 | 437 | 1762 | 48 |
| &nbsp;&nbsp;Amount attributable to above from noncontrolling interests and unconsolidated entities | 57 | 408 | 112 | 415 |
| Core funds from operations attributable to common stockholders and unit holders | $4038 | $2856 | $7581 | $2656 |
| FFO per common share and unit - diluted | $(0.08) | $(0.02) | $(0.14) | $(0.06) |
| Core FFO per common share and unit - diluted | $0.06 | $0.04 | $0.11 | $0.04 |
| Weighted-average diluted common shares and units outstanding - FFO and Core FFO | 70511958 | 66346596 | 70155126 | 65354659 |
| <sup>(1)</sup> Other adjustments include acquisition fees and expenses, including those for the RealSource merger, insurance losses, and other miscellaneous non-cash or non-recurring items. | <sup>(1)</sup> Other adjustments include acquisition fees and expenses, including those for the RealSource merger, insurance losses, and other miscellaneous non-cash or non-recurring items. | <sup>(1)</sup> Other adjustments include acquisition fees and expenses, including those for the RealSource merger, insurance losses, and other miscellaneous non-cash or non-recurring items. | <sup>(1)</sup> Other adjustments include acquisition fees and expenses, including those for the RealSource merger, insurance losses, and other miscellaneous non-cash or non-recurring items. | <sup>(1)</sup> Other adjustments include acquisition fees and expenses, including those for the RealSource merger, insurance losses, and other miscellaneous non-cash or non-recurring items. |

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Weighted-average dilutive common shares and units for FFO and Core FFO are as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Dilutive weighted-average Series A Convertible Preferred shares | 7555848 | 2014532 | 6801589 | 1354069 |
| Weighted-average common shares | 31018873 | 31647211 | 31279782 | 31614142 |
| Weighted-average limited partnership units | 31937237 | 32684853 | 32073755 | 32386448 |
| Weighted-average common shares and units outstanding | 70511958 | 66346596 | 70155126 | 65354659 |

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&nbsp;&nbsp;&nbsp;&nbsp;FFO increased primarily due to the stabilization of recently developed properties, additional funding to structured investments, and decreased interest from refinances and the payoff of debt.

Refer to "<u>[Results of Operations](#id69865b80f9a4c5da1e826485571e6cf_91)</u>" and "<u>[Reportable Segment Net Operating Income](#id69865b80f9a4c5da1e826485571e6cf_94)</u>" above for further detail.

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

**Net Asset Value**

Our board of directors, including a majority of our independent directors, has adopted valuation guidelines, as amended from time to time, that contain a comprehensive set of methodologies to be used in connection with the calculation of our net asset value ("NAV"). Pursuant to these valuation procedures, we computed a June 30, 2025 NAV per share for our outstanding Class T, Class D, Class I, and Class A shares of $11.5153.

The purchase price per share for each class of common stock will vary and will generally equal our prior month's NAV per share, as determined monthly, plus applicable upfront selling commissions and dealer manager fees. Refer to Part II. Item 5. "Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Repurchase of Equity Securities – Net Asset Value and — NAV and NAV Per Share Calculation" in our Annual Report on Form 10-K for further information on the valuation methods used for the purposes of determining the valuations of our assets and liabilities.

CROP has certain classes or series of OP Units that are each economically equivalent to a corresponding class of shares. Accordingly, on the last day of each month, for such classes or series of OP Units, the NAV per OP Unit equals the NAV per share of the corresponding class. To the extent CROP has classes of units that do not correspond to a class of our shares, such units will be valued in a manner consistent with our valuation guidelines. The NAV of CROP on the last day of each month equals the sum of the NAVs of each fully-diluted outstanding OP Unit on such day. In calculating the fully-diluted outstanding OP Units we include all outstanding vested LTIP Units, unvested time-based LTIP Units and those performance-based LTIP Units that would be earned based on the internal rate of return as of such day.

Our total NAV in the following table includes the NAV of our outstanding classes of common stock, as well as the partnership interests of CROP held by parties other than us. The following table sets forth the components of our NAV as of June 30, 2025 ($ in thousands except share data):

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| | |
|:---|:---|
| **Components of NAV\*** | **As of June 30, 2025** |
| Investments in Multifamily Operating Properties | $1805533 |
| Investments in Multifamily Development Properties | 46396 |
| Investments in Real Estate-Related Structured Investments | 111690 |
| Investments in Land Held for Development | 44116 |
| Operating Company and Other Net Current Assets | 14828 |
| Cash and Cash Equivalents | 104664 |
| Secured Real Estate Financing | (1052946) |
| Subordinated Unsecured Notes | (20490) |
| Preferred Equity | (247950) |
| Convertible Preferred Equity | (91001) |
| Net Asset Value | $714840 |
| Fully-diluted Shares/Units Outstanding | 62077478 |
| *\* Presented as adjusted for our economic ownership percentage in each asset.* | *\* Presented as adjusted for our economic ownership percentage in each asset.* |

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The following table provides a breakdown of our total NAV and NAV per share/unit by class as of June 30, 2025 ($ in thousands, except share and per share data):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Class** | **Class** | **Class** | **Class** | **Class** | |
| | **T** | **D** | **I** | **A** | OP<sup>(1)</sup> |<br>**Total** |
| **As of June 30, 2025** |  |  |  |  |  |  |
| Monthly NAV | $49662 | $5365 | $73841 | $219215 | $366757 | $714840 |
| Fully-diluted Outstanding Shares/Units | 4312693 | 465874 | 6412399 | 19036891 | 31849621 | 62077478 |
| NAV per Fully-diluted Share/Unit | $11.5153 | $11.5153 | $11.5153 | $11.5153 | $11.5153 |  |
| <sup>(1)</sup> Includes the partnership interests of CROP held by High Traverse Holdings, an entity beneficially owned by Daniel Shaeffer, Chad Christensen, Gregg Christensen and Eric Marlin and other CROP interests, including LTIP Units as described above, held by parties other than us. | <sup>(1)</sup> Includes the partnership interests of CROP held by High Traverse Holdings, an entity beneficially owned by Daniel Shaeffer, Chad Christensen, Gregg Christensen and Eric Marlin and other CROP interests, including LTIP Units as described above, held by parties other than us. | <sup>(1)</sup> Includes the partnership interests of CROP held by High Traverse Holdings, an entity beneficially owned by Daniel Shaeffer, Chad Christensen, Gregg Christensen and Eric Marlin and other CROP interests, including LTIP Units as described above, held by parties other than us. | <sup>(1)</sup> Includes the partnership interests of CROP held by High Traverse Holdings, an entity beneficially owned by Daniel Shaeffer, Chad Christensen, Gregg Christensen and Eric Marlin and other CROP interests, including LTIP Units as described above, held by parties other than us. | <sup>(1)</sup> Includes the partnership interests of CROP held by High Traverse Holdings, an entity beneficially owned by Daniel Shaeffer, Chad Christensen, Gregg Christensen and Eric Marlin and other CROP interests, including LTIP Units as described above, held by parties other than us. | <sup>(1)</sup> Includes the partnership interests of CROP held by High Traverse Holdings, an entity beneficially owned by Daniel Shaeffer, Chad Christensen, Gregg Christensen and Eric Marlin and other CROP interests, including LTIP Units as described above, held by parties other than us. | <sup>(1)</sup> Includes the partnership interests of CROP held by High Traverse Holdings, an entity beneficially owned by Daniel Shaeffer, Chad Christensen, Gregg Christensen and Eric Marlin and other CROP interests, including LTIP Units as described above, held by parties other than us. |

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

Set forth below are the weighted averages of the key assumptions that were used by the Independent Appraisal Firms in the discounted cash flow methodology used in the June 30, 2025, valuations of our real property assets, based on property types.

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| | | |
|:---|:---|:---|
| | **Discount Rate** | **Exit Capitalization Rate** |
| Operating Assets | 6.78% | 5.42% |
| *\* Presented as adjusted for our economic ownership percentage in each asset, weighted by gross value. The weighted averages were calculated by our advisor based on the information provided by the Independent Appraisal Firms.* | *\* Presented as adjusted for our economic ownership percentage in each asset, weighted by gross value. The weighted averages were calculated by our advisor based on the information provided by the Independent Appraisal Firms.* | *\* Presented as adjusted for our economic ownership percentage in each asset, weighted by gross value. The weighted averages were calculated by our advisor based on the information provided by the Independent Appraisal Firms.* |

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A change in these assumptions would impact the calculation by the Independent Appraisal Firms of the value of our operating and development assets. For example, assuming all other factors remain unchanged, the changes listed below would result in the following effects on our operating and development asset values:

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| | | |
|:---|:---|:---|
| **Sensitivities** | **Change** | **Operating Asset <br>Values** |
| Discount Rate | 0.25% decrease | 2.4% |
|  | 0.25% increase | (2.3)% |
| Exit Capitalization Rate | 0.25% decrease | 3.5% |
|  | 0.25% increase | (3.1)% |
| *\* Presented as adjusted for our economic ownership percentage in each asset.* | *\* Presented as adjusted for our economic ownership percentage in each asset.* | *\* Presented as adjusted for our economic ownership percentage in each asset.* |

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The following table reconciles stockholders' equity and CROP partners' capital per our condensed consolidated balance sheet to our NAV ($ in thousands):

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| | |
|:---|:---|
| | **June 30, 2025** |
| Stockholders' equity | $249203 |
| Non-controlling interests attributable to limited partners | 178590 |
|  | 427793 |
| Adjustments at share: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated depreciation and amortization, consolidated and unconsolidated entities | 233482 |
| &nbsp;&nbsp;&nbsp;&nbsp;Discount on preferred stock | (7239) |
| &nbsp;&nbsp;&nbsp;&nbsp;Convertible preferred shares | (91001) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized net real estate and debt appreciation | 132717 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other <sup>(1)</sup> | 19088 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NAV | $714840 |
| <sup>(1)</sup> Other includes deferred revenue, non-current commissions, and derivative assets where settlement is not imminent. | <sup>(1)</sup> Other includes deferred revenue, non-current commissions, and derivative assets where settlement is not imminent. |

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The following describes the adjustments to reconcile GAAP stockholders' equity and CROP partners' capital per our condensed consolidated balance sheet to our NAV:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We depreciate our investments in real estate and amortize certain other assets and liabilities in accordance with GAAP. Such depreciation and amortization is not recorded for purposes of determining our NAV. Accumulated depreciation and amortization associated with our investments in unconsolidated real estate entities is also not recorded for purposes of determining our NAV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our preferred stock that is mandatorily redeemable is accounted for as a liability with associated issuance costs deferred and amortized under GAAP. These issuance costs are excluded for purposes of determining our NAV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Convertible preferred shares are treated as a reduction to NAV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our investments in real estate are presented under historical cost in our GAAP condensed consolidated financial statements. Additionally, our mortgage notes, revolving credit facility and construction loans are presented at their carrying value in our GAAP condensed consolidated financial statements. As such, any increases or decreases in the fair market value of our investments in real estate or our debt instruments are not included in our GAAP results. For purposes of determining our NAV, our investments in real estate and our instruments are recorded at fair value.

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

**Policies Regarding Operating Expenses**

Our advisor must reimburse us the amount by which our aggregate total operating expenses for the four fiscal quarters then ended exceed the greater of 2% of our average invested assets or 25% of our net income (the 2%/25% Limitation), unless the conflicts committee has determined that such excess expenses were justified based on unusual and non-recurring factors. For the four consecutive quarters ended June 30, 2025, our total operating expenses were less than the 2%/25% Limitation.

**Liquidity and Capital Resources**

Our principal demands for funds during the short and long-term are and will be for the acquisition of multifamily apartment communities and investments in multifamily real estate-related assets, including funding commitments on our structured investments; operating expenses, including the management fee we pay to our advisor and the performance participation allocation (when applicable); capital expenditures, including those on our development projects; general and administrative expenses; payments under debt obligations; repurchases of common and preferred stock; and payments of distributions to stockholders. We will obtain the capital required to purchase multifamily apartment communities and make investments in multifamily real estate-related assets and conduct our operations from the proceeds of our public and private offerings, our credit facilities, other secured or unsecured financings from banks and other lenders, and from any undistributed funds from our operations.

We intend to strengthen our capital and liquidity positions by continuing to focus on our core fundamentals at the property level. Factors which could increase or decrease our future liquidity include but are not limited to operating performance of the properties, the interest rate environment and inflation which could increase our expenses, the satisfaction of REIT dividend requirements and the volume of repurchase requests under our share purchase program. We have satisfied all of our repurchase requests to date. Due to commitments on our structured investments and development projects, which we believe will be accretive to our portfolio, our available cash to fund repurchase requests is limited. We completed the sale of Cottonwood Broadway (February 2025), Parc Westborough (May 2025) and Sugarmont (May 2025) to strengthen our liquidity position and enhance our ability to fund repurchase requests and anticipate we will be able to fully fund repurchase requests. To continue to bolster our liquidity position, we may pursue additional strategic asset sales in the future or seek additional sources of capital.

As of June 30, 2025, we have $759.2 million of fixed rate debt and $211.1 million of variable rate debt, which includes $44.1 million of construction loans. We have interest rate cap hedging instruments on $167.1 million, or 79.2%, of our variable rate debt. In addition, CROP has issued unsecured promissory notes in a private placement offering maturing in December 2025, in an aggregate amount of $20.5 million as of June 30, 2025.

We have a credit facility in place with JP Morgan that provides us with additional liquidity. Our JP Morgan Revolving Credit Facility has a variable rate. We can draw upon or pay down the JP Morgan Revolving Credit Facility at our option, subject to loan-to-value requirements, debt-service coverage ratios and other covenants and restrictions as set forth in the loan documents. At June 30, 2025, the $100.0 million credit facility was secured by Alpha Mill and was capped at $33.2 million due to the current interest rate environment and the applicable debt-service coverage ratio. As of June 30, 2025, we did not have advances on the credit facility.

One of our principal long-term liquidity requirements includes the repayment of maturing debt. Aggregate maturities will be $21.2 million for the year ended December 31, 2025 and for the years ending 2026 through 2029 will be $20.8 million, $363.9 million, $72.2 million, and $45.9 million, respectively, and $485.9 million in the aggregate thereafter. Of the $21.2 million maturing during the current year ended December 31, 2025, $20.5 million relates to our 2019 6% Unsecured Promissory Notes.

We have issued and outstanding Series 2019, Series 2023, Series 2023-A and Series 2025 Preferred Stock, each of which are similar in nature. Each series must be redeemed for cash at a redemption price per share equal to $10.00 plus any accrued and unpaid dividends, to the extent there are funds legally available, on the redemption date.

The Series 2019 Preferred Stock redemption date is December 31, 2025. The Series 2023 Preferred Stock redemption date is June 30, 2027, subject to two one-year extensions at our option. The Series 2023-A Preferred Stock redemption date is December 31, 2027. The Series 2025 Preferred Stock redemption date is December 31, 2028, subject to two one-year extension options at our discretion.

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

As of June 30, 2025, we had 6.2 million shares outstanding for our Series 2019 Preferred Stock, 10.5 million shares outstanding for our Series 2023 Preferred Stock, 0.3 million shares outstanding for our Series 2023-A Preferred Stock, and 7.8 million shares outstanding for our Series 2025 Preferred Stock.

Holders of Series 2019 Preferred Stock and Series 2023 Preferred Stock may exchange their shares at a ratio between 1:1 and 1:1.0782 with respect to the Series 2019 Preferred Stock and at a ratio of 1:1 with respect to the Series 2023 Preferred Stock through August 31, 2025, which date may be extended at the discretion of the board of directors. As of August 8, 2025, $62.3 million of Series 2019 Preferred Stock had been exchanged into Series 2025 Preferred Stock, reducing the amount of Series 2019 Preferred Stock to be redeemed to $57.3 million.

Management intends to pay future obligations, including the 2019 6% Unsecured Promissory Notes, land loans and Series 2019 Preferred Stock, with proceeds from the sale of real estate assets, including Parc Westborough and Sugarmont, cash on hand and available capacity on our revolving credit facility.

In addition to making investments in accordance with our investment objectives, we expect to use our capital resources to pay offering costs in connection with our securities offerings, as well as make certain payments to our advisor pursuant to the terms of our advisory management agreement.

To maintain our qualification as a REIT, we will be required to make aggregate annual distributions to our stockholders of at least 90% of our REIT taxable income (computed without regard to the dividends-paid deduction and excluding net capital gain). Our board of directors may authorize distributions in excess of those required for us to maintain REIT status depending on our financial condition and such other factors as our board of directors deems relevant.

**Cash Flows**

The following table provides a breakdown of the net change in our cash and cash equivalents and restricted cash ($ in thousands):

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| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** |
| Net cash from operating activities | $(8051) | $5853 |
| Net cash from investing activities | 286478 | 52375 |
| Net cash from financing activities | (217037) | (41773) |
| Net increase in cash and cash equivalents and restricted cash | $61390 | $16455 |

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Net cash flows from operating activities decreased by $13.9 million compared to the same period in the prior year primarily due to $5.6 million in selling commissions and expenses from Series 2025 Preferred Stock exchanges, large legal fee refunds in 2024 that were not present in 2025, property sales, and higher interest costs primarily from our preferred offerings.

Net cash flows from investing activities increased by $234.1 million compared to the same period in the prior year. The increase came from $244.6 million more in proceeds from property sales in 2025 compared to 2024, $8.7 million in reduced investments in real-estate related loans, and $2.4 million in reduced capital expenditures. This was offset by the issuance of a $7.0 million promissory note, the absence of cash acquired from consolidations in 2025 and $9.9 million from the payoff of a preferred equity investment in 2024.

Net cash flows from financing activities decreased by $175.3 million compared to the same period in the prior year. This is primarily due to a decrease of $221.6 million in borrowings on our revolving credit facility, mortgage notes and construction loans, of which $160.2 million came from the payoff of loans associated with property sales. Distributions also increased $2.0 million. This was offset by $19.0 million in net proceeds received from land loans, $7.5 million in net proceeds received from the issuance of preferred and common stock, a decrease of $6.5 million in redemptions of preferred and common stock and a $15.3 million payoff of a preferred interest liability in the prior year.

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

**Distributions** 

The following table shows distributions paid and cash flow (used in) provided by operating activities during the six months ended June 30, 2025 and the year ended December 31, 2024 ($ in thousands):

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| | | |
|:---|:---|:---|
| | **Six Months Ended <br>June 30, 2025** | **Year Ended <br>December 31, 2024** |
| Distributions paid in cash - convertible preferred stockholders | $2797 | $1885 |
| Distributions paid in cash - common stockholders | 9504 | 19544 |
| Distributions paid in cash to noncontrolling interests - limited partners | 11754 | 23708 |
| Distributions of DRP (reinvested) | 1745 | 3182 |
| &nbsp;&nbsp;Total distributions <sup>(1)</sup> | $25800 | $48319 |
| Source of distributions <sup>(2)</sup> |  |  |
| Paid from cash flows provided by operations | $— | $16529 |
| Paid from proceeds from realized investments | 24055 | 28608 |
| Offering proceeds from issuance of common stock pursuant to the DRP | 1745 | 3182 |
| &nbsp;&nbsp;Total sources | $25800 | $48319 |
| Net cash (used in) provided by operating activities <sup>(2)</sup> | $(8051) | $15443 |
| <sup>(1)</sup> Distributions are paid on a monthly basis. In general, distributions for all record dates of a given month are paid on or about the fifth business day of the following month. | <sup>(1)</sup> Distributions are paid on a monthly basis. In general, distributions for all record dates of a given month are paid on or about the fifth business day of the following month. | <sup>(1)</sup> Distributions are paid on a monthly basis. In general, distributions for all record dates of a given month are paid on or about the fifth business day of the following month. |
| <sup>(2)</sup> The allocation of total sources is calculated on a quarterly basis. Generally, for purposes of determining the source of our distributions paid, we assume first that we use positive cash flow from operating activities from the relevant or prior quarter to fund distribution payments. As such, amounts reflected above as distributions paid from cash flows provided by operations may be from prior quarters which had positive cash flow from operations. | <sup>(2)</sup> The allocation of total sources is calculated on a quarterly basis. Generally, for purposes of determining the source of our distributions paid, we assume first that we use positive cash flow from operating activities from the relevant or prior quarter to fund distribution payments. As such, amounts reflected above as distributions paid from cash flows provided by operations may be from prior quarters which had positive cash flow from operations. | <sup>(2)</sup> The allocation of total sources is calculated on a quarterly basis. Generally, for purposes of determining the source of our distributions paid, we assume first that we use positive cash flow from operating activities from the relevant or prior quarter to fund distribution payments. As such, amounts reflected above as distributions paid from cash flows provided by operations may be from prior quarters which had positive cash flow from operations. |

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For the six months ended June 30, 2025, distributions declared to convertible preferred stockholders, common stockholders and limited partners were $3.0 million, $11.2 million and $11.7 million, respectively.

For the six months ended June 30, 2025, we paid cash distributions to convertible preferred stockholders, common stockholders and limited partners of $2.8 million, $9.5 million and $11.8 million, respectively. For the six months ended June 30, 2025, our net income was $23.5 million. Cash flows used in operating activities for the six months ended June 30, 2025 was $8.1 million.

**Critical Accounting Policies**

Please refer to Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on <u>[Form 10-K](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001692951/000169295125000106/cci-20241231.htm#i9e434bea9a134ab7a325815224b859a6_40)</u> for the period ending December 31, 2024 for discussions of our critical accounting estimates. As of June 30, 2025, our critical accounting estimates have not changed from those described in that report.

**Subsequent Events**

*Bowline Mezzanine Loan*

On July 21, 2025, we funded an additional $1.4 million of the investment.

*Regenerant Joint Venture*

On July 31, 2025, we formed a joint venture with Regenerant Housing Partners (the "Regenerant Venture") focused on affordable housing investment opportunities. The Regenerant Venture will pursue, among other strategies, the acquisition or recapitalization of general and limited partnership interests in low-income housing tax credit and workforce housing projects. On August 4, 2025, we contributed $11.2 million to fund the acquisition of partnership interests in three projects (two located in Boulder, CO and one located in Kansas City, MO).

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*Convertible Preferred Stock*

On August 4, 2025, our board approved the extension of the Series A Convertible Preferred Offering from August 31, 2025 to August 31, 2026.

*2025 7.25% Unsecured Notes*

On August 1, 2025, we launched a $50.0 million private placement offering of 2025 7.25% Unsecured Notes. The notes bear interest at a rate of 7.25% and mature on December 31, 2029, with two 12-month extension options. The notes can also be exchanged for 2019 6.00% Unsecured Notes on a dollar-to-dollar basis.

**Item 3. Quantitative and Qualitative Disclosure about Market Risk**

*Interest Rate Risk*

We are exposed to the effects of interest rate changes as we incur debt to maintain liquidity and to finance our real estate investment portfolio and operations. Interest rate changes affect our profitability and the value of our real estate investment portfolio. Our objective with interest rate risk is to reduce the potentially adverse effects of interest rate changes on earnings, prepayment penalties and cash flows and to lower overall borrowing costs. We manage interest rate risk by maintaining a ratio of fixed rate, long-term debt such that variable rate exposure is kept at an acceptable level. We also utilize a variety of derivative financial instruments, including interest rate caps. These financial instruments may be subject to the risk that losses on a hedge position will reduce the funds available for the payment of distributions to our stockholders and/or that the losses may exceed the amount we invested in the derivative instrument itself.

We have both fixed and variable rate debt. Interest rate fluctuations will generally not affect future earnings or cash flows on fixed rate debt unless such debt matures or is otherwise terminated. However, interest rate changes do affect the fair value of fixed rate instruments. As of June 30, 2025, the face value of our fixed rate mortgage debt was $759.2 million and the estimated aggregate fair value was $742.3 million. Fair value is computed using rates available to us for debt with similar terms and remaining maturities. If interest rates had been 100 basis points higher as of June 30, 2025, the fair value of our fixed rate debt would have decreased by $11.3 million.

Conversely, movements in interest rates on variable rate debt change future earnings and cash flows, but, other than changes in required risk premiums, do not significantly affect fair value. As of June 30, 2025, we had $211.1 million of variable rate debt outstanding, including $44.1 million of construction loans, with 79.2% of our variable rate debt under rate cap hedging arrangements. If interest rates on non-hedged variable rate debt had been 100 basis points higher during the three and six months ended June 30, 2025, our interest expense would have increased by $0.1 million and $0.2 million, respectively. Interest on construction loans prior to being placed in service is capitalized; therefore, the impact of a change in interest rates on our condensed consolidated statements of operations would be less than the total change, but we would incur higher cash payments and capitalized costs, resulting in greater depreciation in later years.

The weighted-average interest rate of our variable rate debt at June 30, 2025 was 5.81%. The interest rate represents the actual interest rate in effect at June 30, 2025 (consisting of the contractual interest rate and the effect of interest rate swaps, if applicable), using interest rate indices as of June 30, 2025 where applicable.

*Credit Risk*

For our structured investments, we are exposed to the risk of a borrower's ability to perform under the terms of their obligations to us. We manage this credit risk by conducting a comprehensive due diligence process prior to making an investment and by actively monitoring the projects we have invested in. The performance and value of our real estate-related structured investments depend upon the sponsors' ability to manage the development of the respective properties that serve as collateral so that each property's value ultimately supports the repayment of the investment and accrued returns. Mezzanine loans and preferred equity investments are subordinate to senior mortgage loans and, therefore, involve a higher degree of risk. In the event of a default, mezzanine loans and preferred equity investments will be satisfied only after the senior lender's investment is fully recovered. As a result, in the event of a default, we may not recover all of our investment.

In addition, we are exposed to the risks generally associated with the commercial real estate market, including variances in occupancy rates, capitalization rates, absorption rates, and other macroeconomic factors beyond our control. We seek to manage these risks through our underwriting and asset management processes.

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**Item 4. Controls and Procedures**

*Evaluation of Disclosure Controls and Procedures*

Under the direction of our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of June 30, 2025. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of June 30, 2025, our disclosure controls and procedures were effective.

*Changes in Internal Control Over Financial Reporting*

There have been no changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**PART II - OTHER INFORMATION**

**Item 1. Legal Proceedings**

From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of June 30, 2025, we were not involved in any material legal proceedings.

**Item 1A. Risk Factors**

Please see the risks discussed below and in Part I, Item 1A of our Annual Report on <u>[Form 10-K](https://www.sec.gov/ix?doc=/Archives/edgar/data/0001692951/000169295125000106/cci-20241231.htm#i9e434bea9a134ab7a325815224b859a6_16)</u> for the year ended December 31, 2024.

**Risks Related to our Company**

***We have incurred net losses under GAAP in the past and may incur net losses in the future, and we have an accumulated deficit and may continue to have an accumulated deficit in the future.***

For the three and six months ended June 30, 2025, we had consolidated net income of $36.5 million and $23.5 million, respectively. For the year ended December 31, 2024, we had consolidated net losses of $20.6 million. As of June 30, 2025, we had an accumulated deficit of $93.8 million. These amounts largely reflect the expense of real estate depreciation and amortization in accordance with GAAP, which was $29.2 million for the six months ended June 30, 2025 and $65.3 million for the year ended December 31, 2024.

Net income (loss) and accumulated deficit are calculated and presented in accordance with GAAP, which, among other things, requires depreciation of real estate investments. We calculate depreciation on a straight-line basis. As a result, our operating results imply that the value of our real estate investments will decrease evenly over a set time period. However, we believe that the value of real estate investments will fluctuate over time based on market conditions. Thus, in addition to GAAP financial metrics, management reviews certain non-GAAP financial metrics, including funds from operations, or FFO and Core FFO. FFO measures operating performance that excludes gains or losses from sales of depreciable properties, real estate-related depreciation and amortization and after adjustments for our share of consolidated and unconsolidated entities. See Part I, Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations– Funds from Operations" for considerations on how to review this metric.

***We have paid distributions from offering proceeds. In the future we may continue to fund distributions with offering proceeds. To the extent we fund distributions from sources other than our cash flow from operations, we will have less funds available for investment in multifamily apartment communities and multifamily real estate-related assets and the overall return to our stockholders may be reduced.***

Our charter permits us to make distributions from any source, including offering proceeds or borrowings (which may constitute a return of capital), and our charter does not limit the amount of funds we may use from any source to pay such distributions. We intend to make distributions on our common stock on a per share basis with each share receiving the same distribution, subject to any class-specific expenses such as distribution fees on our Class T and Class D shares. If we fund distributions from financings, our offerings or other sources, we will have less funds available for investment in multifamily apartment communities and other multifamily real estate-related assets and the number of real estate properties that we invest in and the overall return to our stockholders may be reduced. If we fund distributions from borrowings, our interest expense and other financing costs, as well as the repayment of such borrowings, will reduce our earnings and cash flow from operations available for distribution in future periods. If we fund distributions from the sale of assets or the maturity, payoff or settlement of multifamily real estate-related assets, this will affect our ability to generate cash flows from operations in future periods.

It is likely that we will use sources of funds, which may constitute a return of capital to fund distributions. During our offering stage, when we may raise capital more quickly than we acquire income-producing assets, and for some period after, we may not be able to make distributions solely from our cash flow from operations. Further, because we may receive income from our investments at various times during our fiscal year and because we may need cash flow from operations during a particular period to fund capital expenditures and other expenses, we expect that we will declare distributions in anticipation of cash flow that we expect to receive during a later period and we will make these distributions in advance of our actual receipt of these funds. In addition, to the extent our investments are in development or redevelopment projects or in properties that have significant capital requirements, our ability to make distributions may be negatively impacted. In these instances, we expect to look to third-party borrowings to fund our distributions. We may also fund such distributions from the sale of assets. To the

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extent distributions exceed cash flow from operations, a stockholder's basis in our stock will be reduced and, to the extent distributions exceed a stockholder's basis, the stockholder may recognize capital gain.

For the six months ended June 30, 2025, and the year ended December 31, 2024, we paid aggregate distributions to convertible preferred stockholders, common stockholders and limited partnership unit holders of $25.8 million and $48.3 million, including $24.1 million and $45.1 million of distributions paid in cash and $1.7 million and $3.2 million of distributions reinvested through our distribution reinvestment plan, respectively.

Our net income for the six months ended June 30, 2025 was $23.5 million and our net loss for the year ended December 31, 2024 was $20.6 million. Cash flows used in operating activities were $8.1 million for the six months ended June 30, 2025, and cash flows provided by operating activities were $15.4 million for the year ended December 31, 2024.

We funded our total distribution paid during the six months ended June 30, 2025, which includes net cash distributions and distribution reinvestment by stockholders, with $1.7 million of offering proceeds from issuance of common stock pursuant to our distribution reinvestment plan and $24.1 million from proceeds from realized investments.

We funded our total distributions paid during the year ended December 31, 2024, which includes net cash distributions and distributions reinvested by stockholders, with $16.5 million cash provided by operating activities, $3.2 million of offering proceeds from issuance of common stock pursuant to our distribution reinvestment plan and $28.6 million from proceeds from realized investment.

Generally, for purposes of determining the source of our distributions paid, we assume first that we use cash flow from operating activities from the relevant or prior periods to fund distribution payments. To the extent that we pay distributions from sources other than our cash flow from operating activities, we will have less funds available for the acquisition of real estate investments, the overall return to our stockholders may be reduced and subsequent investors will experience dilution. In addition, to the extent distributions exceed cash flow from operating activities, a stockholder's basis in our stock will be reduced and, to the extent distributions exceed a stockholder's basis, the stockholder may recognize capital gain.

**Risks Related to the DST Program**

***The DST Program could subject us to liabilities from litigation or otherwise.***

Our board of directors has approved the DST Program pursuant to which we, through CROP, intend to sell DST Interests in specific DSTs holding real properties, which may be sourced from our real properties or from third parties, through private placement offerings exempt from registration under the Securities Act. We expect that the DST Program will give us the opportunity to expand and diversify our capital-raising strategies by offering what we believe to be an attractive investment product for investors that may be seeking like-kind replacement properties to complete tax-deferred exchange transactions under Section 1031 of the Internal Revenue Code of 1986, as amended (the "Code"). However, there is no guarantee that the DST Program will provide the tax benefits expected by investors. Investors who acquire DST Interests through such private placements may be seeking certain tax benefits that depend on the interpretation of, and compliance with, federal and state income tax laws and regulations. As the sole member of the sole general partner of CROP, we may become subject to liability, from litigation or otherwise, as a result of the DST Program, including in the event an investor fails to qualify for any desired tax benefits.

***The DST Program will not shield us from risks related to the performance of the DST Properties held through such structures.***

Under the DST Program, certain of our existing real properties and real properties acquired from third parties may be placed into DSTs, the beneficial interests of which will be sold to investors. We will hold long-term leasehold interests in each DST Property under a master lease. Each master lease agreement will be guaranteed by CROP, which will retain a fair market value purchase option giving it the right, but not the obligation, to acquire the interests in the applicable DST from the investors any time after two years from the closing of the applicable DST offering in exchange for OP Units in CROP or cash. Under each master lease we will be responsible for subleasing the DST Property to residents of the property until the earlier of the expiration of the master lease or CROP's exercise of the FMV Option, which means that we bear the risk that the underlying cash flow from a DST Property may be less than the master lease payments. Therefore, even though we will no longer own the DST Property, because of the fixed terms of the master lease guaranteed by CROP, negative performance by the DST Property could affect cash available for distributions to our stockholders and would likely have an adverse effect on our results of operations. In addition, although CROP will hold a FMV Option to reacquire each DST Property, the purchase price will be based on the then current fair market value of the DST Property subject to the master lease. Therefore, we may pay more for the

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DST Property upon the FMV Option exercise if it appreciates while held by the DST than if we had not placed such property in the DST Program.

***We may own DST Interests in DSTs owning DST Properties that will be subject to the agreements under our DST Program, which may have an adverse effect on our results of operations, relative to if the DST Program agreements did not exist.***

In connection with the launch of the DST Program, we may own DST Interests in DSTs owning one or more DST Properties that are subject to the terms of the agreements governing our DST Program. The DST Program agreements may limit our ability to encumber, lease or dispose of our DST Interests. Such agreements could affect our ability to turn our DST Interests into cash and could affect cash available for distributions to our stockholders. The DST Program agreements, and in some cases the financing documents used in connection with the DST Program, could also impair our ability to take actions that would otherwise be in the best interests of our stockholders and, therefore, may have an adverse effect on our results of operations and NAV, relative to if the DST Program agreements did not exist.

***DST Properties acquired through the exercise of FMV Options may be less liquid than other assets, which could impair our ability to utilize cash proceeds from sales of such DST Properties for other purposes such as paying down debt, distributions or additional investments.***

DST Properties may later be acquired by CROP through the exercise of the FMV Option. In such cases, the investors who become limited partners in CROP will generally still be tied to the applicable DST Property in terms of basis and built-in-gain. As a result, if a DST Property is subsequently sold, unless we effectuate a like-kind exchange under Section 1031 of the Code, then tax will be triggered on the investors' built-in-gain. Any replacement property acquired in connection with a 1031 exchange will similarly be tied to such investors with similar considerations if such replacement property ever is sold. As a result of these factors, placing real properties into the DST Program may limit our ability to access liquidity from such real properties or replacement properties through sale without triggering taxes due to the built-in-gain tied to investors in the DST Program. Such reduced liquidity could impair our ability to utilize cash proceeds from sales for other purposes such as paying down debt, paying distributions, funding repurchases or making additional investments.

**Risks Related to the Proposed RealSource Merger** 

***Completion of the RealSource Merger is subject to many conditions. If these conditions are not satisfied or waived, the RealSource Merger will not be completed, which could result in the expenditure of significant unrecoverable transaction costs.***

The completion of the RealSource Merger is subject to many conditions, including the approval of the stockholders and unitholders of the RS Parties, which must be satisfied or waived in order to complete the RealSource Merger. There can be no assurance that the conditions to closing the RealSource Merger will be satisfied or waived or that the RealSource Merger will be completed. Failure to consummate the RealSource Merger may adversely affect our results of operations and business prospects for the following reasons, among others: (i) we have incurred and will continue to incur certain transaction costs, regardless of whether the RealSource Merger closes, which could adversely affect our financial condition, results of operations and ability to make distributions to our stockholders; and (ii) the RealSource Merger, whether or not it closes, will divert the attention of certain management and other key employees of our advisor from ongoing business activities, including the pursuit of other opportunities that could be beneficial to us. In addition, we may terminate the merger agreement under certain circumstances. If the RealSource Merger is not consummated, our ongoing business could be adversely affected.

***We expect to incur substantial expenses related to the RealSource Merger.***

We expect to incur substantial expenses in connection with completing the RealSource Merger and integrating the properties and operations of the RS Parties being acquired in connection with the RealSource Merger. Although we have assumed that a certain level of transaction expenses would be incurred, there are a number of factors beyond our control that could affect the total amount or the timing of such expenses. Many of the expenses that will be incurred, by their nature, are difficult to estimate accurately at the present time. As a result, the transaction expenses associated with the RealSource Merger could, particularly in the near term, exceed the savings we expect to achieve from the elimination of duplicative expenses and the realization of economies of scale and cost savings following the completion of the RealSource Merger.

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***Litigation challenging the RealSource Merger may increase transaction costs and prevent the RealSource Merger from becoming effective or from becoming effective within the expected time frame.***

If any stockholder or limited partner files a lawsuit challenging the RealSource Merger, we can provide no assurances as to the outcome of any such lawsuit, including the costs associated with defending these claims or any other liabilities that may be incurred in connection with the litigation or settlement of these claims. If plaintiffs are successful in obtaining an injunction prohibiting the parties from completing the RealSource Merger on the agreed-upon terms, such an injunction may prevent the completion of the RealSource Merger in the expected time frame or may prevent the RealSource Merger from being completed altogether. Whether or not any such plaintiffs' claims are successful, this type of litigation is often expensive and diverts management's attention and resources, which could adversely affect the operations of each company's business.

***Our indebtedness will increase following the RealSource Merger.***

We will be subject to risks associated with increased debt financing, including a risk that our cash flow could be insufficient to meet required payments on our debt. Our indebtedness could have important consequences to holders of our equity interests, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• vulnerability to general adverse economic and industry conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limiting our ability to obtain additional financing to fund future working capital, capital expenditures and other general corporate requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• requiring the use of a substantial portion of our cash flow from operations for the payment of principal and interest on our indebtedness, thereby reducing our ability to use operating cash flow to pay distributions and fund working capital, acquisitions, capital expenditures and other general corporate requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limiting our flexibility in planning for, or reacting to, changes in our business and industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• putting us at a disadvantage compared to its competitors with less indebtedness; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limiting our ability to access capital markets.

In addition, for certain loans, if we default under a mortgage loan, it would automatically be in default under any other loan that has cross-default provisions, and we may lose the properties securing these loans.

***Following consummation of the RealSource Merger, we may assume certain potential and unknown liabilities relating to the RS Parties.***

Following the consummation of the RealSource Merger, we will have assumed certain potential and unknown liabilities relating to RS Parties. These liabilities could be significant and have a material adverse effect on our business to the extent we have not identified such liabilities or have underestimated the amount of such liabilities.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

**Unregistered Sale of Equity Securities**

During the three months ended June 30, 2025, we sold equity securities that were not registered under the Securities Act and not previously included in a Quarterly Report on Form 10-Q or Current Report on Form 8-K as described below.

*Class I Common Stock*

During the three months ended June 30, 2025, we issued 309,799 shares of Class I common stock upon exchange of corresponding OP Units held by various limited partners. The issuance of such shares of common stock was effected in reliance upon an exemption from registration provided by Section 4(a)(2) under the Securities Act and the rules and regulations promulgated thereunder. We relied on the exemption based on representations given by the holders of the OP Units. The Class I common stock was issued at the most recently disclosed NAV of the Class I shares as determined based on the valuation guidelines adopted by our board of directors.

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*Share Repurchase Program*

We have adopted a share repurchase program, whereby subject to the limitations of the program, on a monthly basis, stockholders may request that we repurchase all or any portion of their shares. We are not obligated to repurchase any shares and may choose to repurchase only some, or even none, of the shares that have been requested to be repurchased in any particular month in our discretion.

Under our share repurchase program, to the extent we choose to repurchase shares in any particular month, we will only repurchase shares as of the last calendar day of that month (a "Repurchase Date"). Repurchases will be made at the transaction price in effect on the Repurchase Date (which will generally be equal to our prior month's NAV per share), except that depending on the class of shares requested to be repurchased and how long the shares have been outstanding, the shares may be repurchased at a discount to the transaction price (an "Early Repurchase Deduction") as described in the Share Repurchase Program which is filed as exhibit 99.1 in our Annual Report on <u>[Form 10-K](https://www.sec.gov/Archives/edgar/data/1692951/000169295123000192/ex991ccisharerepurchasepro.htm)</u>, subject to certain limited exceptions.

The total amount of aggregate repurchases of our Class T, Class D, Class I, and Class A shares (all of our outstanding classes of common stock) is limited to no more than 2% of the aggregate NAV of our common stock outstanding per month and no more than 5% of our aggregate NAV of our common stock outstanding per calendar quarter.

During the three months ended June 30, 2025, we repurchased shares of our common stock in the following amounts at the then-applicable transaction price (reduced as applicable by the Early Repurchase Deduction):

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| | | | | |
|:---|:---|:---|:---|:---|
| **Month of:** | **Total Number of Shares Repurchased** <sup>(1)</sup> | **Repurchases as a Percentage of NAV** <sup>(2)</sup> | **Average Price Paid per Share** | **Maximum Number of Shares Pending Repurchase Pursuant to Publicly Announced Plans or Programs** <sup>(3)</sup> |
| April 2025 | 570973 | 1.7904679% | $11.2711 |  |
| May 2025 | 618173 | 1.9923896% | $11.5022 |  |
| June 2025 | 342140 | 1.1197139% | $11.5292 |  |
| Total | 1531286 |  |  |  |
| <sup>(1)</sup> With the exception of the repurchase of 2,000 Class A shares in May 2025, at the most recent transaction price in effect on the Repurchase Date, all shares have been repurchased pursuant to our share repurchase program.  | <sup>(1)</sup> With the exception of the repurchase of 2,000 Class A shares in May 2025, at the most recent transaction price in effect on the Repurchase Date, all shares have been repurchased pursuant to our share repurchase program.  | <sup>(1)</sup> With the exception of the repurchase of 2,000 Class A shares in May 2025, at the most recent transaction price in effect on the Repurchase Date, all shares have been repurchased pursuant to our share repurchase program.  | <sup>(1)</sup> With the exception of the repurchase of 2,000 Class A shares in May 2025, at the most recent transaction price in effect on the Repurchase Date, all shares have been repurchased pursuant to our share repurchase program.  | <sup>(1)</sup> With the exception of the repurchase of 2,000 Class A shares in May 2025, at the most recent transaction price in effect on the Repurchase Date, all shares have been repurchased pursuant to our share repurchase program.  |
| <sup>(2)</sup> Represents aggregate NAV of the shares repurchased under our share repurchase plan over aggregate NAV of all shares of our common stock outstanding, in each case, based on our NAV as of the last calendar day of the prior month. Pursuant to our share repurchase program, we may repurchase up to 2% of the aggregate NAV of our common stock outstanding per month and 5% of the aggregate NAV of our common stock outstanding per calendar quarter.  | <sup>(2)</sup> Represents aggregate NAV of the shares repurchased under our share repurchase plan over aggregate NAV of all shares of our common stock outstanding, in each case, based on our NAV as of the last calendar day of the prior month. Pursuant to our share repurchase program, we may repurchase up to 2% of the aggregate NAV of our common stock outstanding per month and 5% of the aggregate NAV of our common stock outstanding per calendar quarter.  | <sup>(2)</sup> Represents aggregate NAV of the shares repurchased under our share repurchase plan over aggregate NAV of all shares of our common stock outstanding, in each case, based on our NAV as of the last calendar day of the prior month. Pursuant to our share repurchase program, we may repurchase up to 2% of the aggregate NAV of our common stock outstanding per month and 5% of the aggregate NAV of our common stock outstanding per calendar quarter.  | <sup>(2)</sup> Represents aggregate NAV of the shares repurchased under our share repurchase plan over aggregate NAV of all shares of our common stock outstanding, in each case, based on our NAV as of the last calendar day of the prior month. Pursuant to our share repurchase program, we may repurchase up to 2% of the aggregate NAV of our common stock outstanding per month and 5% of the aggregate NAV of our common stock outstanding per calendar quarter.  | <sup>(2)</sup> Represents aggregate NAV of the shares repurchased under our share repurchase plan over aggregate NAV of all shares of our common stock outstanding, in each case, based on our NAV as of the last calendar day of the prior month. Pursuant to our share repurchase program, we may repurchase up to 2% of the aggregate NAV of our common stock outstanding per month and 5% of the aggregate NAV of our common stock outstanding per calendar quarter.  |
| <sup>(3)</sup> All repurchase requests under our share repurchase plan were satisfied. We funded our repurchases with cash available from operations, financing activities and capital raising activities. | <sup>(3)</sup> All repurchase requests under our share repurchase plan were satisfied. We funded our repurchases with cash available from operations, financing activities and capital raising activities. | <sup>(3)</sup> All repurchase requests under our share repurchase plan were satisfied. We funded our repurchases with cash available from operations, financing activities and capital raising activities. | <sup>(3)</sup> All repurchase requests under our share repurchase plan were satisfied. We funded our repurchases with cash available from operations, financing activities and capital raising activities. | <sup>(3)</sup> All repurchase requests under our share repurchase plan were satisfied. We funded our repurchases with cash available from operations, financing activities and capital raising activities. |

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**Item 3. Defaults Upon Senior Securities**

None

**Item 4. Mine Safety Disclosures**

Not applicable

**Item 5. Other Information**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) During the quarterly period ended June 30, 2025, none of our directors or officers (as defined in Rule 16a-1(f) promulgated under the Exchange Act) adopted or terminated any "Rule 10b5-1 trading arrangement" or any "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408 of Regulation S-K.

*Office Leases at The Westerly* 

On August 12, 2025, our conflicts committee approved the negotiation of two separate lease agreements, one with us and the second with CCA, for office space at The Westerly development project. In connection with the approval, our conflicts committee approved a spend of up to $400,000 in tenant improvements, which amount is to be allocated between us and CCA based on leased square footage. The lease terms will be consistent with market and are subject to final approval by our conflicts committee prior to execution.

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*Authorized CROP LTIP Units*

On August 14, 2025, our compensation committee approved an increase in the partnership units in CROP designated as "CROP LTIP Units" under the Sixth Amended and Restated Limited Partnership Agreement of CROP from 2,000,000 CROP LTIP Units to 8,000,000 CROP LTIP Units. Our compensation committee has granted and intends to continue to grant CROP LTIP Units as equity compensation to our officers, directors and certain employees of the Company.

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<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

**Item 6. Exhibits** 

---

| | |
|:---|:---|
| **Exhibit Number** | **Exhibit Description** |
| 2.1 | <u>[Agreement and Plan of Merger dated June 25, 2025, by and among Cottonwood Communities, Inc., Cottonwood Residential O.P., LP, Cottonwood Communities GP Subsidiary, LLC, RealSource Properties, Inc. and RealSource Properties OP, LP (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed June 26, 2025)](https://www.sec.gov/Archives/edgar/data/1692951/000119312525148962/d921117dex21.htm)</u> |
| 3.1 | <u>[Articles of Amendment and Restatement, incorporated by reference to Exhibit 3.1 to Pre-Effective Amendment No. 3 to the Company's Registration Statement on Form S-11 (No. 333-215272) filed June 27, 2018](https://www.sec.gov/Archives/edgar/data/1692951/000119312518204294/d574119dex31.htm)</u> |
| 3.2 | <u>[Bylaws, incorporated by reference to Exhibit 3.2 to the Company's Registration Statement on Form S-11 (No. 333-215272) filed December 22, 2016](https://www.sec.gov/Archives/edgar/data/1692951/000119312516802208/d275505dex32.htm)</u> |
| 3.3 | <u>[Articles Supplementary for the Class A shares of common stock, incorporated by reference to Exhibit 3.1 on Form 8-K (No. 333-215272) filed August 19, 2019](https://www.sec.gov/Archives/edgar/data/1692951/000169295119000031/cci-articlessupplementarya.htm)</u> |
| 3.4 | <u>[Articles Supplementary for the Class T shares of common stock, incorporated by reference to Exhibit 3.2 on Form 8-K (No. 333-215272) filed August 19, 2019](https://www.sec.gov/Archives/edgar/data/1692951/000169295119000031/cci-articlessupplementaryt.htm)</u> |
| 3.5 | <u>[Articles of Amendment, incorporated by reference to Exhibit 3.3 on Form 8-K (No. 333-215272) filed August 19, 2019](https://www.sec.gov/Archives/edgar/data/1692951/000169295119000031/cci-articlesofamendmentaug.htm)</u> |
| 3.6 | <u>[Article Supplementary – Preferred Stock, incorporated by reference to Exhibit 3.6 to the Company's Quarterly Report on Form 10-Q filed November 13, 2019](https://www.sec.gov/Archives/edgar/data/1692951/000169295119000038/articlessupplpreferredstock.htm)</u> |
| 3.7 | <u>[Articles Supplementary for the Series 2019 Preferred Stock, incorporated by reference to Exhibit 3.3 on Form 8-K (No. 000-56165) filed April 2, 2021](https://www.sec.gov/Archives/edgar/data/0001692951/000169295121000011/exhibit33-articlessuppleme.htm)</u> |
| 3.8 | <u>[Articles of Amendment for the Class TX shares of common stock, incorporated by reference to Exhibit 3.4 on Form 8-K (No. 000-56165) filed April 2, 2021](https://www.sec.gov/Archives/edgar/data/0001692951/000169295121000011/exhibit34-articlessuppleme.htm)</u> |
| 3.9 | <u>[Articles Supplementary for the Class D, Class I and Class T shares of common stock, incorporated by reference to Exhibit 3.5 on Form 8-K (No. 000-56165) filed April 2, 2021](https://www.sec.gov/Archives/edgar/data/0001692951/000169295121000011/exhibit35-articlessuppleme.htm)</u> |
| 3.10 | <u>[Articles Supplementary for the Class D shares of common stock, incorporated by reference to Exhibit 3.12 to the Company's Registration Statement on Form S-4/A (file no. 333-255171) filing dated May 13, 2021](https://www.sec.gov/Archives/edgar/data/1692951/000114036121017198/nt10022672x6_ex3-12.htm)</u> |
| 3.11 | <u>[Articles Supplementary for the Class D and Class T shares of common stock, incorporated by reference to Exhibit 3.1 to the Company's Post-Effective Amendment no. 7 to its Registration Statement on Form S-11 (No. 333-215272) filed August 11, 2021](https://www.sec.gov/Archives/edgar/data/1692951/000119312521243363/d203934dex31.htm)</u> |
| 3.12 | <u>[Articles Supplementary for the Series 2019 Preferred Stock (incorporated by reference to Exhibit 3.1 on Form 8-K (No. 000-56165) filed October 18, 2021)](https://www.sec.gov/Archives/edgar/data/1692951/000169295121000077/exhibit31-articlessuppleme.htm)</u> |
| 3.13 | <u>[Articles of Amendment (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed December 20, 2021)](https://www.sec.gov/Archives/edgar/data/0001692951/000169295121000117/exhibit31-cciamendmenttoch.htm)</u> |
| 3.14 | <u>[Articles Supplementary for the Series 2019 Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed February 7, 2022)](https://www.sec.gov/Archives/edgar/data/0001692951/000169295122000012/exhibit31-articlessuppleme.htm)</u> |
| 3.15 | <u>[Articles Supplementary for the Series 2023 Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed December 16, 2022)](https://www.sec.gov/Archives/edgar/data/1692951/000169295122000124/exhibit31-articlessuppleme.htm)</u> |
| 3.16 | <u>[Articles Supplementary for the Series 2023-A Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed July 28, 2023)](https://www.sec.gov/Archives/edgar/data/1692951/000169295123000120/exhibit31-articlessuppleme.htm)</u> |
| 3.17 | <u>[Articles Supplementary for the Series 2023 Preferred Stock of Cottonwood Communities, Inc. (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed August 23, 2023)](https://www.sec.gov/Archives/edgar/data/1692951/000169295123000136/exhibit31-articlessuppleme.htm)</u> |
| 3.18 | <u>[Articles Supplementary for the Series A Convertible Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed September 22, 2023)](https://www.sec.gov/Archives/edgar/data/1692951/000169295123000171/exhibit31-articlessuppleme.htm)</u> |
| 3.19 | <u>[Articles of Amendment for the terms of the Series A Convertible Preferred Stock of Cottonwood Communities, Inc. (incorporated by reference Exhibit 3.1 to the Company's Current Report on Form 8-K filed February 12, 2024)](https://www.sec.gov/Archives/edgar/data/1692951/000169295124000023/exhibit31-articlesofamendm.htm)</u> |
| 3.20 | <u>[Articles Supplementary for the terms of the Series 2025 Preferred Stock of Cottonwood Communities, Inc. (incorporated by reference Exhibit 3.1 to the Company's Current Report on Form 8-K filed January 13, 2025)](https://www.sec.gov/Archives/edgar/data/1692951/000169295125000053/exhibit31-articlessuppleme.htm)</u> |
| 4.1 | <u>[Statement regarding restrictions on transferability of shares of common stock (to appear on stock certificate or to be sent upon request and without charge to stockholders issued shares without certificates), incorporated by reference to Exhibit 4.2 to Pre-Effective Amendment No. 3 to the Company's Registration Statement on Form S-11 (No. 333-215272) filed June 27, 2018](https://www.sec.gov/Archives/edgar/data/1692951/000119312518204294/d574119dex42.htm)</u> |

---

------

<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

---

| | |
|:---|:---|
| 4.2 | <u>[Distribution Reinvestment Plan, incorporated by reference to Appendix A to the prospectus included in the Company's Amendment No. 1 to the Company's Registration Statement on Form S-11 (No. 333-258754) filed October 21, 2021](https://www.sec.gov/Archives/edgar/data/1692951/000119312521304169/d245232ds11a.htm#toc245232_28)</u> |
| 4.3 | <u>[Multiple Class Plan, incorporated by reference to Exhibit 4.1 to the Company's Post-Effective Amendment no. 7 to its Registration Statement on Form S-11 (No. 333-215272) filed August 11, 2021](https://www.sec.gov/Archives/edgar/data/1692951/000119312521243363/d203934dex41.htm)</u> |
| 4.4 | <u>[Form of Subscription Agreement (incorporated by reference to Appendix B to the prospectus included in the Company's Amendment no. 1 to the Registration Statement on Form S-11 (No. 333-258754))](https://www.sec.gov/Archives/edgar/data/1692951/000119312521304169/d245232ds11a.htm#toc245232_29)</u> |
| 10.1 | <u>[Amended and Restated Advisory Agreement by and among the Company, Cottonwood Residential O.P., LP and CC Advisors III, LLC dated May 7, 2025 (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q filed May 15, 2025)](https://www.sec.gov/Archives/edgar/data/1692951/000169295125000142/advisoryagreementcci-cciad.htm)</u> |
| 10.2 | <u>[Renewal Agreement dated May 7, 2025 by and among Cottonwood Capital Management, Inc. and Cottonwood Communities Advisors, LLC with respect to Reimbursement and Cost Sharing Agreement dated May 7, 2021 (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q filed May 15, 2025)](https://www.sec.gov/Archives/edgar/data/1692951/000169295125000142/cci-reimbursementandcostsh.htm)</u>  |
| 10.3 | <u>[Internalization Agreement, dated as of June 25, 2025, by and among: (i) RealSource Properties, Inc.; (ii) RealSource Properties OP, LP; (iii) RealSource Properties Advisor, LLC; (iv) RS Properties Management, LLC; (v) RealSource Management LLC; (vi) RealSource Advisor Holdings; (vii) RSP Management Holdings; (viii) Michelle M. Hanks, as Trustee of the Lake Louise Trust; (ix) Mark Hanks; and (x) Kelly Randall and M. Hanks, each as a Contributor Representative, solely with respect to Section 7.6, Section 9.1(b) and Section 9.1(d)](https://www.sec.gov/Archives/edgar/data/1692951/000119312525151331/d80544dex1026.htm)[(incorporated by reference to Exhibit 10.26 to the Company](https://www.sec.gov/Archives/edgar/data/1692951/000119312525151331/d80544dex1026.htm)['](https://www.sec.gov/Archives/edgar/data/1692951/000119312525151331/d80544dex1026.htm)[s Registration Statement on Form S-11 (No. 333-](https://www.sec.gov/Archives/edgar/data/1692951/000119312525151331/d80544dex1026.htm)[282872](https://www.sec.gov/Archives/edgar/data/1692951/000119312525151331/d80544dex1026.htm)[) filed June](https://www.sec.gov/Archives/edgar/data/1692951/000119312525151331/d80544dex1026.htm)[27](https://www.sec.gov/Archives/edgar/data/1692951/000119312525151331/d80544dex1026.htm)[, 2025)](https://www.sec.gov/Archives/edgar/data/1692951/000119312525151331/d80544dex1026.htm)</u> |
| 31.1\* | <u>[Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex311q225sox302ceocertific.htm)</u> |
| 31.2\* | <u>[Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](ex312q225sox302cfocertific.htm)</u> |

| 99.1\* | <u>[Amended and Restated Share Repurchase Program effective August 12, 2025](ccisharerepurchaseprogramn.htm)</u> |
| 101.INS\* | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) |
| 101.SCH\* | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL\* | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF\* | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB\* | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE\* | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104\* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

\*Filed herewith

------

<u>[**Table of Contents**](#id69865b80f9a4c5da1e826485571e6cf_7)</u>

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | |
|:---|:---|
| **COTTONWOOD COMMUNITIES, INC.** | **COTTONWOOD COMMUNITIES, INC.** |
| By: | /s/ Daniel Shaeffer |
|  | Daniel Shaeffer, Chief Executive Officer |
| By: | /s/ Adam Larson |
|  | Adam Larson, Chief Financial Officer |

---

Dated: August 14, 2025

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. SECTION 350)**

I, Daniel Shaeffer, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of Cottonwood Communities, Inc. (the "registrant");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant, as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 14, 2025

---

| |
|:---|
| /s/ Daniel Shaeffer |
| Daniel Shaeffer, Chief Executive Officer |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF THE CHIEF FINANCIAL OFFICER PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. SECTION 350)**

I, Adam Larson, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of Cottonwood Communities, Inc. (the "registrant");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant, as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 14, 2025

---

| |
|:---|
| /s/ Adam Larson |
| Adam Larson, Chief Financial Officer |

---

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATIONS PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

**Certification of Chief Executive Officer**

&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and in connection with the Quarterly Report on Form 10-Q of Cottonwood Communities, Inc. (the "Company") for the period ended June 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned, the Chief Executive Officer of the Company, certifies, to his knowledge, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 14, 2025

---

| |
|:---|
| /s/ Daniel Shaeffer |
| Daniel Shaeffer, Chief Executive Officer |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATIONS PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

**Certification of Chief Financial Officer**

&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and in connection with the Quarterly Report on Form 10-Q of Cottonwood Communities, Inc. (the "Company") for the period ended June 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned, the Chief Financial Officer of the Company, certifies, to his knowledge, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 14, 2025

---

| |
|:---|
| /s/ Adam Larson |
| Adam Larson, Chief Financial Officer |

---

## Exhibit 99.1

**COTTONWOOD COMMUNITIES, INC.**

Amended and Restated Share Repurchase Program

Effective as of August 12, 2025

**Definitions**

*Advisor –* shall mean CC Advisors III, LLC

*Class D shares* – shall mean the shares of the Company's common stock classified as Class D.

*Class I shares* – shall mean the shares of the Company's common stock classified as Class I.

*Class T shares* – shall mean the shares of the Company's common stock classified as Class T.

*Class A shares* – shall mean the shares of the Company's common stock classified as Class A.

*Class TX shares* – shall mean the shares of the Company's common stock classified as Class TX.

*Company* – shall mean Cottonwood Communities, Inc., a Maryland corporation.

*Dealer Manager* – shall mean Orchard Securities LLC.

*NAV* – shall mean the net asset value of the Company or a class of its shares, as the context requires, determined in accordance with the Company's Net Asset Value Calculation and Valuation Guidelines as described in the Company's prospectus.

*Operating Partnership* – shall mean Cottonwood Residential O.P., LP.

*Operating Partnership units* – shall mean limited partnership interests in the Operating Partnership.

*Special Limited Partner* – shall mean CC Advisors III, LLC

*Stockholders* – shall mean the holders of Class T, Class D, Class I, Class A or Class TX shares.

*Transaction Price* – shall mean the repurchase price per share for each class of common stock, which shall be equal to the then-current offering price before applicable selling commissions and dealer manager fees.

**Share Repurchase Program**

Stockholders may request that the Company repurchase shares of its common stock through their financial professional or directly with the Company's transfer agent. The procedures relating to the repurchase of shares of the Company's common stock are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Certain broker-dealers require that their clients process repurchases through their broker-dealer, which may impact the time necessary to process such repurchase request, impose more restrictive deadlines than described under this share repurchase program, impact the timing of a Stockholder receiving repurchase proceeds and require different paperwork or process than described in this share repurchase program. Stockholders should contact their broker-dealer first if they want to request the repurchase of their shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under this share repurchase program, to the extent the Company chooses to repurchase shares in any particular month the Company will only repurchase shares as of the last calendar day of that

------

month (a "Repurchase Date"). Shares redeemed on the Repurchase Date remain outstanding on the Repurchase Date and are no longer outstanding on the day following the Repurchase Date. To have shares repurchased, a Stockholder's repurchase request and required documentation must be received in good order by 4:00 p.m. (Eastern time) on the second to last business day of the applicable month. Settlements of share repurchases will generally be made within three business days of the Repurchase Date. Repurchase requests received and processed by the Company's transfer agent will be effected at a repurchase price equal to the Transaction Price on the applicable Repurchase Date (which will generally be equal to the Company's most recently disclosed monthly NAV per share), subject to any Early Repurchase Deduction (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A Stockholder may withdraw his or her repurchase request by notifying the transfer agent, directly or through the Stockholder's financial intermediary, on the toll-free telephone number, (844) 422-2584. The line is open on each business day between the hours of 9:00 a.m. and 6:00 p.m. (Eastern time). Repurchase requests must be cancelled before 4:00 p.m. (Eastern time) on the last business day of the applicable month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If a repurchase request is received after 4:00 p.m. (Eastern time) on the second to last business day of the applicable month, the repurchase request will be executed, if at all, on the next month's Repurchase Date at the Transaction Price applicable to that month (subject to any Early Repurchase Deduction), unless such request is withdrawn prior to repurchase. Repurchase requests received and processed by the Company's transfer agent on a business day, but after the close of business on that day or on a day that is not a business day, will be deemed received on the next business day. All questions as to the form and validity (including time of receipt) of repurchase requests and notices of withdrawal will be determined by the Company, in its sole discretion, and such determination shall be final and binding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Repurchase requests may be made by mail or by contacting the Stockholder's financial intermediary, both subject to certain conditions described in this share repurchase program. If making a repurchase request by contacting the Stockholder's financial intermediary, the Stockholder's financial intermediary may require the Stockholder to provide certain documentation or information. If making a repurchase request by mail to the transfer agent, the Stockholder must complete and sign a repurchase authorization form, which can be found at the end of this share repurchase program and which will also be available on the Company's website, www.cottonwoodcommunities.com. Written requests should be sent to the transfer agent at the following address:

Cottonwood Communities, Inc.

c/o DST Systems, Inc.

PO Box 219065

Kansas City, MO 64121-9065

------

Overnight Address:

Cottonwood Communities, Inc.

c/o DST Systems, Inc.

430 W. 7th Street

Kansas City, MO 64105

Corporate investors and other non-individual entities must have an appropriate certification on file authorizing repurchases. A medallion signature guarantee may be required in connection with repurchase requests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For processed repurchases, Stockholders may request that repurchase proceeds are to be paid by mailed check provided that the check is mailed to an address on file with the transfer agent for at least 30 days. Stockholders should check with their broker-dealer that such payment may be made via check or wire transfer, as further described below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Stockholders may also receive repurchase proceeds via wire transfer, provided that wiring instructions for their brokerage account or designated U.S. bank account are provided. For all repurchases paid via wire transfer, the funds will be wired to the account on file with the transfer agent or, upon instruction, to another financial institution provided that the Stockholder has made the necessary funds transfer arrangements. The customer service representative can provide detailed instructions on establishing funding arrangements and designating a bank or brokerage account on file. Funds will be wired only to U.S. financial institutions (ACH network members).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A medallion signature guarantee will be required in certain circumstances. A medallion signature guarantee may be obtained from a domestic bank or trust company, broker-dealer, clearing agency, savings association or other financial institution which participates in a medallion program recognized by the Securities Transfer Association. The three recognized medallion programs are the Securities Transfer Agents Medallion Program, the Stock Exchanges Medallion Program and the New York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees from financial institutions that are not participating in any of these medallion programs will not be accepted. A notary public cannot provide signature guarantees. The Company reserves the right to amend, waive or discontinue this policy at any time and establish other criteria for verifying the authenticity of any repurchase or transaction request. The Company may require a medallion signature guarantee if, among other reasons: (1) the amount of the repurchase request is over $500,000; (2) a Stockholder wishes to have proceeds transferred by wire to an account other than the designated bank or brokerage account on file for at least 30 days or sent to an address other than such Stockholder's address of record for the past 30 days; or (3) the Company's transfer agent cannot confirm a Stockholder's identity or suspects fraudulent activity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If a Stockholder has made multiple purchases of shares of the Company's common stock, any repurchase request will be processed on a first in/first out basis unless otherwise requested in the repurchase request.

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***Minimum Account Repurchases***

In the event that any Stockholder fails to maintain the minimum balance of $500 of shares of the Company's common stock, the Company may repurchase all of the shares held by that Stockholder at the repurchase price in effect on the date the Company determines that such Stockholder has failed to meet the minimum balance, less any Early Repurchase Deduction. Minimum account repurchases will apply even in the event that the failure to meet the minimum balance is caused solely by a decline in the Company's NAV. Minimum account repurchases are subject to the Early Repurchase Deduction.

***Sources of Funds for Repurchases***

The Company may fund repurchase requests from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds (including from sales of the Company's common stock or Operating Partnership units to the Special Limited Partner), and the Company has no limits on the amounts it may use to fund repurchases from such sources.

***Repurchase Limitations***

The Company may repurchase fewer shares than have been requested in any particular month to be repurchased under this share repurchase program, or none at all, in its discretion at any time. In addition, the total amount of aggregate repurchases of Class T, Class D, Class I, Class A and Class TX shares will be limited in any calendar month, to shares whose aggregate value (based on the repurchase price per share on the date of the repurchase) is no more than 2% of the aggregate NAV of the Company's common stock outstanding as of the last day of the previous calendar month and, in any calendar quarter, to shares whose aggregate value is no more than 5% of the aggregate NAV of the Company's common stock outstanding as of the last day of the previous calendar quarter.

In the event that the Company determines to repurchase some but not all of the shares submitted for repurchase during any month, shares submitted for repurchase during such month will be repurchased on a pro rata basis. All unsatisfied repurchase requests must be resubmitted after the start of the next month or quarter, or upon the recommencement of this share repurchase program, as applicable.

In the transitional second quarter of 2021, the Company will allow repurchases in up to the maximum permitted as if the share repurchase program had been effective and open the entire quarter (taking into consideration repurchases under the Company's prior share repurchase program in the quarter).

If the Transaction Price for the applicable month is not made available by the tenth business day prior to the last business day of the month (or is changed after such date), then no repurchase requests will be accepted for such month and Stockholders who wish to have their shares repurchased the following month must resubmit their repurchase requests. The Transaction Price for each month will be available on the Company's website at <u>www.cottonwoodcommunities.com</u> and in prospectus supplements filed with the Securities and Exchange Commission.

Should repurchase requests, in the Company's judgment, place an undue burden on the Company's liquidity, adversely affect the Company's operations or risk having an adverse impact on the Company as a whole, or should the Company otherwise determine that investing its liquid assets in real properties or other illiquid investments rather than repurchasing the Company's shares is in the best interests of the Company as a whole, the Company may choose to repurchase fewer shares in any particular month than have been requested to be repurchased, or none at all. Further, the Company's board of directors may modify or suspend this share repurchase program if in its reasonable judgment it deems a suspension to be in the best interest of the Company and its Stockholders. Material modifications, including any amendment to the 2% monthly or 5% quarterly limitations on repurchases, to and suspensions of this share repurchase program will be promptly disclosed to Stockholders in a prospectus supplement (or post-effective amendment if required by the Securities Act) or in a Current Report on Form 8-K or in annual or quarterly reports, all publicly filed with the Securities and Exchange Commission. Material modifications will also be disclosed on the Company's website. In addition, the Company may determine to suspend this share repurchase program due to regulatory changes, changes in law or if the Company becomes aware of undisclosed material

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information that it believes should be publicly disclosed before shares are repurchased. Upon a determination by the Company's board of directors to (i) suspend this share repurchase program or (ii) materially modify this share repurchase program in a manner that reduces liquidity available to the Stockholders, the Company's board of directors must consider, at least quarterly, whether continuing to restrict repurchases or resuming repurchases at the original repurchase limits set forth in this share repurchase program would be in the best interest of the Company and the Stockholders. The Company's board of directors must affirmatively authorize the recommencement of this program if it is suspended before Stockholder requests will be considered again. The Company's board of directors cannot terminate this share repurchase program absent a liquidity event which results in Stockholders receiving cash or securities listed on a national securities exchange or where otherwise required by law.

Shares held by the Advisor acquired as payment of the Advisor's management fee will not be subject to this share repurchase program, including with respect to any repurchase limits or the Early Repurchase Deduction.

***Early Repurchase Deduction***

There is no minimum holding period for repurchase of the Class T, Class D and Class I shares and holders of such shares can request that the Company repurchase their shares at any time. Holders of Class A and Class TX shares must hold their shares at least one year before they are eligible to be repurchased. Repurchases will be made at the Transaction Price in effect on the Repurchase Date, with the following exceptions (collectively, the "Early Repurchase Deduction"): (i) Class T, Class D and Class I shares that have not been outstanding for at least one year will be repurchased at 95.0% of the Transaction Price, (ii) Class A and Class TX shares that have been outstanding for at least five years and less than six years will be repurchased at 95.0% of the Transaction Price, (iii) Class A and Class TX shares that have been outstanding for at least three years and less than five years will be repurchased at 90.0% of the Transaction Price and (iv) Class A and Class TX shares that have been outstanding for at least one year and less than three years will be repurchased at 85.0% of the Transaction Price. For purposes of the Early Repurchase Deduction, the holding period is measured from the date the Stockholder acquired the share (the "Acquisition Date") through the first calendar day immediately following the prospective repurchase date. With respect to holders of Class A shares who acquired their shares pursuant to a merger transaction, the Acquisition Date is the date the holder acquired the corresponding share that was exchanged in the merger transaction. In addition, with respect to Class A and Class TX shares acquired through the Company's distribution reinvestment plan or issued pursuant to a stock dividend, the shares will be deemed to have been acquired on the same date as the initial share to which the distribution reinvestment plan share or stock dividend relate. The Acquisition Date for stockholders who received shares of our common stock in exchange for their Operating Partnership units is measured as of the date the exchange occurred and they received shares of our common stock. The Early Repurchase Deduction will also generally apply to minimum account repurchases. With respect to Class T, Class D and Class I shares, the Early Repurchase Deduction will not apply to shares acquired through the Company's distribution reinvestment plan or issued pursuant to a stock dividend.

In connection with repurchases resulting from death or qualifying disability, the Company may, from time to time, waive the Early Repurchase Deduction with respect to the Class T, Class D and Class I shares that have been outstanding for less than a year and the Class A and Class TX shares that have been outstanding for at least two years, and reduce the Early Repurchase Deduction for Class A and Class TX shares that have been outstanding for less than two years such that the shares are repurchased at 95% of the Transaction Price. In addition, the Company may, from time to time, waive the Early Repurchase Deduction with respect to all classes of shares in the event that a Stockholder's shares are repurchased because such Stockholder has failed to maintain the $500 minimum account balance.

As set forth above, the Company may waive or reduce the Early Repurchase Deduction in respect of the repurchase of shares resulting from the death of a Stockholder who is a natural person, subject to the conditions and limitations described above, including shares held by such Stockholder through a revocable grantor trust or an IRA or other retirement or profit-sharing plan, after receiving written notice from the estate of the Stockholder, the recipient of the shares through bequest or inheritance, or, in the case of a revocable grantor trust, the trustee of such trust, who shall have the sole ability to request repurchase on behalf of the trust. The Company must receive the written repurchase request within 12 months after the death of the Stockholder in order for the requesting party to rely on any of the

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special treatment described above that may be afforded in the event of the death of a Stockholder. Such a written request must be accompanied by a certified copy of the official death certificate of the Stockholder. If spouses are joint registered holders of shares, the request to repurchase the shares may be made if either of the registered holders dies. If the Stockholder is not a natural person, such as certain trusts or a partnership, corporation or other similar entity, waiver of the Early Repurchase Deduction upon death does not apply.

Furthermore, as set forth above, the Company may waive or reduce the Early Repurchase Deduction in respect of the repurchase of shares held by a Stockholder who is a natural person who is deemed to have a qualifying disability (as such term is defined in Section 72(m)(7) of the Code), subject to the conditions and limitations described above, including shares held by such Stockholder through a revocable grantor trust, or an IRA or other retirement or profit-sharing plan, after receiving written notice from such Stockholder, provided that the condition causing the qualifying disability was not pre-existing on the date that the Stockholder became a Stockholder. The Company must receive the written repurchase request within 12 months of the initial determination of the Stockholder's disability in order for the Stockholder to rely on any of the waivers described above that may be granted in the event of the disability of a Stockholder. If spouses are joint registered holders of shares, the request to repurchase the shares may be made if either of the registered holders acquires a qualifying disability. If the Stockholder is not a natural person, such as certain trusts or a partnership, corporation or other similar entity, waiver of the Early Repurchase Deduction upon disability does not apply.

***Items of Note***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Stockholders will not receive interest on amounts represented by uncashed repurchase checks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under applicable anti-money laundering regulations and other federal regulations, repurchase requests may be suspended, restricted or canceled and the proceeds may be withheld;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• IRS regulations require the Company to determine and disclose on Form 1099-B the adjusted cost basis for shares of the Company's stock sold or repurchased. Although there are several available methods for determining the adjusted cost basis, unless a Stockholder elects otherwise, which such Stockholder may do by contacting the Company's transfer agent at the toll free telephonic number at (844) 422-2584, the Company will utilize the first-in-first-out method; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All shares of the Company's common stock requested to be repurchased must be beneficially owned by the Stockholder of record making the request or his or her estate, heir or beneficiary, or the party requesting the repurchase must be authorized to do so by the Stockholder of record of the shares or his or her estate, heir or beneficiary, and such shares of common stock must be fully transferable and not subject to any liens or encumbrances. In certain cases, the Company may ask the requesting party to provide evidence satisfactory to the Company that the shares requested for repurchase are not subject to any liens or encumbrances. If the Company determines that a lien exists against the shares, the Company will not be obligated to repurchase any shares subject to the lien.

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**Frequent Trading and Other Policies**

In general, Stockholders may request that the Company repurchase their shares of common stock once every 30 days. However, the Company prohibits frequent trading. The Company defines frequent trading as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any Stockholder who requests that the Company repurchase its shares of common stock within 30 calendar days of the purchase of such shares;<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transactions deemed harmful or excessive by the Company (including, but not limited to, patterns of purchases and repurchases), in the Company's sole discretion; and<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transactions initiated by financial professionals, among multiple stockholder accounts, that in the aggregate are deemed harmful or excessive.

The following are excluded when determining whether transactions are excessive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• purchases and requests for repurchase of the Company's shares in the amount of $2,500 or less;<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• purchases or repurchases initiated by the Company; and<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transactions subject to the trading policy of an intermediary that the Company deems materially similar to its policy.

At the Dealer Manager's discretion, upon the first violation of the policy in a calendar year, purchase and repurchase privileges may be suspended for 90 days. Upon a second violation in a calendar year, purchase and repurchase privileges may be suspended for 180 days. On the next business day following the end of the 90 or 180 day suspension, any transaction restrictions placed on a Stockholder may be removed.

**Liability** 

The Company shall not be liable for any act done in good faith or for any good faith omission to act. The Company and its transfer agent will not be responsible for the authenticity of mail or phone instructions or losses, if any, resulting from unauthorized Stockholder transactions if they reasonably believe that such instructions were genuine. The Company's transfer agent has established reasonable procedures to confirm that instructions are genuine including requiring the Stockholder to provide certain specific identifying information on file and sending written confirmation to Stockholders of record. Failure by the Stockholder or its agent to notify the Company's transfer agent in a timely manner, but in no event more than 60 days from receipt of such confirmation, that the instructions were not properly acted upon or any other discrepancy will relieve the Company, the Company's transfer agent and the financial professional of any liability with respect to the discrepancy.

**Governing Law**

This share repurchase program shall be governed by the laws of the State of Maryland.

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