# EDGAR Filing Document

**Accession Number:** 0001914496
**File Stem:** 0001914496-25-000093
**Filing Date:** 2025-8
**Character Count:** 325136
**Document Hash:** 0605aaae7dea6a9e245a3e5202395476
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001914496-25-000093.hdr.sgml**: 20250814

**ACCESSION NUMBER**: 0001914496-25-000093

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 90

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250814

**DATE AS OF CHANGE**: 20250813

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Sculptor Diversified Real Estate Income Trust, Inc.
- **CENTRAL INDEX KEY:** 0001914496
- **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:** 000-56566
- **FILM NUMBER:** 251213928

**BUSINESS ADDRESS:**
- **STREET 1:** 9 WEST 57TH STREET
- **STREET 2:** 40TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10019
- **BUSINESS PHONE:** 212.790.0000

**MAIL ADDRESS:**
- **STREET 1:** 9 WEST 57TH STREET
- **STREET 2:** 40TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10019

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

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**______________________________________________________**

**FORM 10-Q**

**____________________________________________________________________**

☒ **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 000-56566**

**______________________________________________________**

**Sculptor Diversified Real Estate Income Trust, Inc.** 

(Exact Name of Registrant as Specified in Its Charter)

**______________________________________________________**

---

| | |
|:---|:---|
| **Maryland** | **88-0870670** |
| (State or Other Jurisdiction of<br>Incorporation or Organization) | (I.R.S. Employer<br>Identification No.) |
| **9 West 57**<sup>th</sup> **Street, 40th Floor** |  |
| **New York** | **10019** |
| (Address of Principal Executive Offices) | (Zip Code) |

---

(Registrant's Telephone Number, Including Area Code) **(212) 790-0000** 

______________________________________________________________________

Securities registered pursuant to Section 12(b) for the Act

Title of each class Trading Symbol(s) Name of each exchange on which registered <br>   

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 (§232.405 of this chapter) 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.

---

| | | | |
|:---|:---|:---|:---|
| 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. Yes ☒ No ☐

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 13, 2025, the registrant had the following shares outstanding: 19,607,711 outstanding shares of Class F common stock, 6,281,722 outstanding shares of Class FF common stock, 6,023,523 outstanding shares of Class AA common stock, 1,706,571outstanding shares of Class A common stock, 49,843 outstanding shares of Class I-S common stock and 3,954,718 outstanding shares of Class E common stock.

------

**SCULPTOR DIVERSIFIED REAL ESTATE INCOME TRUST, INC.**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **PART I.** | **FINANCIAL INFORMATION** | [1](#ie1b59014ed724aaa8ad6c038bae5a61f_16) |
| Item 1. | Financial Statements | [1](#ie1b59014ed724aaa8ad6c038bae5a61f_16) |
|  | *<u>Condensed Consolidated Financial Statements (Unaudited):</u>* |  |
|  | [Condensed Consolidated Balance Sheets as of](#ie1b59014ed724aaa8ad6c038bae5a61f_16)[Jun](#ie1b59014ed724aaa8ad6c038bae5a61f_16)[e 30](#ie1b59014ed724aaa8ad6c038bae5a61f_16)[, 2025 and December 31, 2024](#ie1b59014ed724aaa8ad6c038bae5a61f_16) | [1](#ie1b59014ed724aaa8ad6c038bae5a61f_16) |
|  | [Condensed Consolidated Statements of Operations for the](#ie1b59014ed724aaa8ad6c038bae5a61f_19)[Three and](#ie1b59014ed724aaa8ad6c038bae5a61f_19)[Six](#ie1b59014ed724aaa8ad6c038bae5a61f_19)[Months Ended](#ie1b59014ed724aaa8ad6c038bae5a61f_19)[June 30](#ie1b59014ed724aaa8ad6c038bae5a61f_19)[, 2025 and 2024](#ie1b59014ed724aaa8ad6c038bae5a61f_19) | [2](#ie1b59014ed724aaa8ad6c038bae5a61f_19) |
|  | [Condensed Consolidated Statements of Equity for the](#ie1b59014ed724aaa8ad6c038bae5a61f_22)[Three and](#ie1b59014ed724aaa8ad6c038bae5a61f_22)[Six](#ie1b59014ed724aaa8ad6c038bae5a61f_22)[Months Ended](#ie1b59014ed724aaa8ad6c038bae5a61f_22)[June 30](#ie1b59014ed724aaa8ad6c038bae5a61f_22)[, 2025 and 2024](#ie1b59014ed724aaa8ad6c038bae5a61f_22) | [3](#ie1b59014ed724aaa8ad6c038bae5a61f_22) |
|  | [Condensed Consolidated Statements of Cash Flows for the](#ie1b59014ed724aaa8ad6c038bae5a61f_25)[Six](#ie1b59014ed724aaa8ad6c038bae5a61f_25)[Months Ended](#ie1b59014ed724aaa8ad6c038bae5a61f_25)[June 30](#ie1b59014ed724aaa8ad6c038bae5a61f_25)[, 2025 and 2024](#ie1b59014ed724aaa8ad6c038bae5a61f_25) | [5](#ie1b59014ed724aaa8ad6c038bae5a61f_25) |
|  | [Notes to Condensed Consolidated Financial Statements](#ie1b59014ed724aaa8ad6c038bae5a61f_28) | [7](#ie1b59014ed724aaa8ad6c038bae5a61f_28) |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#ie1b59014ed724aaa8ad6c038bae5a61f_79) | [34](#ie1b59014ed724aaa8ad6c038bae5a61f_79) |
| Item 3. | [Quantitative and Qualitative Disclosures about Market Risk](#ie1b59014ed724aaa8ad6c038bae5a61f_133) | [54](#ie1b59014ed724aaa8ad6c038bae5a61f_133) |
| Item 4. | [Controls and Procedures](#ie1b59014ed724aaa8ad6c038bae5a61f_136) | [54](#ie1b59014ed724aaa8ad6c038bae5a61f_136) |
| **PART II.** | **OTHER INFORMATION** | [55](#ie1b59014ed724aaa8ad6c038bae5a61f_139) |
| Item 1. | [Legal Proceedings](#ie1b59014ed724aaa8ad6c038bae5a61f_142) | [55](#ie1b59014ed724aaa8ad6c038bae5a61f_139) |
| Item 1A. | [Risk Factors](#ie1b59014ed724aaa8ad6c038bae5a61f_181) | [55](#ie1b59014ed724aaa8ad6c038bae5a61f_145) |
| Item 2. | [Unregistered Sales of Equity Securities and Use of Proceeds](#ie1b59014ed724aaa8ad6c038bae5a61f_148) | [55](#ie1b59014ed724aaa8ad6c038bae5a61f_148) |
| Item 3. | [Defaults upon Senior Securities](#ie1b59014ed724aaa8ad6c038bae5a61f_151) | [56](#ie1b59014ed724aaa8ad6c038bae5a61f_151) |
| Item 4. | [Mine Safety Disclosures](#ie1b59014ed724aaa8ad6c038bae5a61f_154) | [56](#ie1b59014ed724aaa8ad6c038bae5a61f_154) |
| Item 5. | [Other Information](#ie1b59014ed724aaa8ad6c038bae5a61f_157) | [56](#ie1b59014ed724aaa8ad6c038bae5a61f_157) |
| Item 6. | [Exhibits](#ie1b59014ed724aaa8ad6c038bae5a61f_160) | [58](#ie1b59014ed724aaa8ad6c038bae5a61f_160) |
| [SIGNATURES](#ie1b59014ed724aaa8ad6c038bae5a61f_163) | [SIGNATURES](#ie1b59014ed724aaa8ad6c038bae5a61f_163) | [59](#ie1b59014ed724aaa8ad6c038bae5a61f_163) |

---

------

**PART I. FINANCIAL INFORMATION**

**ITEM 1. FINANCIAL STATEMENTS**

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Condensed Consolidated Balance Sheets**

**(in thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
| | **June 30, 2025**<br>**(Unaudited)** | **December 31, 2024**<br>**(Audited)** |
| **Assets** | | |
| Investments in real estate, net | $480830 | $467812 |
| Investment in an unconsolidated entity | 1758 | 1782 |
| Investments in real estate debt | 60562 | 7985 |
| Cash and cash equivalents | 23803 | 36174 |
| Restricted cash | 13883 | 18666 |
| Deferred rent and other receivables | 2727 | 2149 |
| Goodwill | 34458 | 34458 |
| Lease intangible assets, net | 32682 | 35466 |
| Other assets | 11159 | 4520 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $661862 | $609012 |
| **Liabilities and Equity** |  |  |
| **Liabilities** |  |  |
| Mortgages and other loans payable, net | $215535 | $225826 |
| Revolving credit facility, net | 33397 | 18201 |
| Accounts payable and other liabilities | 17493 | 20225 |
| Financing obligation, net | 22959 | 22959 |
| Due to related parties | 3551 | 3235 |
| Lease intangible liabilities, net | 44470 | 47807 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 337405 | 338253 |
| Commitment and contingencies |  |  |
| Redeemable noncontrolling interest in the Operating Partnership | 1720 | 1648 |
| **Equity** |  |  |
| Common stock, Class F shares, $0.01 par value per share, 300,000,000 shares authorized; 19,607,441 and 20,637,033 shares issued and outstanding, respectively | 196 | 206 |
| Common stock, Class FF shares, $0.01 par value per share, 300,000,000 shares authorized; 6,241,936 and 6,311,042 shares issued and outstanding, respectively | 62 | 63 |
| Common stock, Class E shares, $0.01 par value per share, 100,000,000 shares authorized; 3,921,217 and 266,204 shares issued and outstanding, respectively | 39 | 3 |
| Common stock, Class AA shares, $0.01 par value per share, 300,000,000 shares authorized, 4,645,736 and 2,566,352 shares issued and outstanding, respectively | 47 | 26 |
| Common stock, Class A shares, $0.01 par value per share, 300,000,000 shares authorized; 1,704,696 and 128,535 shares issued and outstanding, respectively | 17 | 1 |
| Common stock, Class I-S shares, $0.01 par value per share, 100,000,000 shares authorized; 49,253 and no shares issued and outstanding, respectively | 1 |  |
| Preferred stock, $0.01 par value per share, 100,000,000 shares authorized, no shares issued and outstanding |  |  |
| Additional paid-in capital | 361178 | 295294 |
| Accumulated deficit and cumulative distributions | (56629) | (43792) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total stockholders' and members' equity** | 304911 | 251801 |
| Non-controlling interests in the consolidated subsidiaries | 17826 | 17310 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total equity** | 322737 | 269111 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and equity** | $661862 | $609012 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Condensed Consolidated Statements of Operations (Unaudited)**

**(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** |  |  |  |  |
| Rental revenue | $11401 | $10739 | $23218 | $21690 |
| Other revenue | 424 | 272 | 823 | $556 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 11825 | 11011 | 24041 | 22246 |
| **Expenses** |  |  |  |  |
| Property operating expenses | 1247 | 1041 | 2354 | 2023 |
| Management fees | 465 | 318 | 898 | 620 |
| Performance participation allocation | 623 | (285) | 623 |  |
| General and administrative | 2343 | 2127 | 4828 | 4250 |
| Depreciation and amortization | 4931 | 6344 | 10092 | 12906 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 9609 | 9545 | 18795 | 19799 |
| Operating income | 2216 | 1466 | 5246 | 2447 |
| **Other income (expense):** |  |  |  |  |
| Interest expense, net | (3229) | (3013) | (6250) | (6051) |
| Impairment of investments in real estate | (1160) | (580) | (1913) | (1022) |
| Income from investments in real estate debt, net | 1783 |  | 2599 |  |
| Income (loss) from an unconsolidated entity | 29 | 18 | 59 | 10 |
| Unrealized gain (loss) on derivative instruments | (275) | (61) | (656) | 138 |
| Gain on sale of real estate | 218 | 34 | 236 | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (2634) | (3602) | (5925) | (6891) |
| **Net income (loss)** | (418) | (2136) | (679) | (4444) |
| Net loss (income) attributable to non-controlling interest in the consolidated subsidiaries | 26 | 67 | 29 | 61 |
| Net loss (income) attributable to non-controlling interest in the Operating Partnership | (4) | 16 | (5) | 29 |
| **Net loss attributable to SDREIT stockholders** | $(396) | $(2053) | $(655) | $(4354) |
| **Net loss per common share - basic and diluted** | $(0.01) | $(0.09) | $(0.02) | $(0.19) |
| **Weighted-average common shares outstanding - basic and diluted** | 35373992 | 23225630 | 33569498 | 22770531 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Condensed Consolidated Statements of Equity (Unaudited)**

**(in thousands)**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** | | | | | |
| | **Common Stock Class F** | **Common Stock Class FF** | **Common Stock Class E** | **Common Stock Class AA** | **Common Stock Class A** | **Common Stock Class I-S** |<br>**Additional Paid-in Capital** |<br>**Accumulated Deficit and cumulative distributions** |<br>**Total Stockholders' and Members' Equity** |<br>**Non-controlling interests in the consolidated subsidiaries** |<br>**Total Equity** |
| **Balance at March 31, 2025** | $196 | $62 | $20 | $36 | $16 | $1 | $327714 | $(49786) | $278259 | $18298 | $296557 |
| Common stock issued |  |  | 19 | 10 | 1 |  | 32900 |  | 32930 |  | 32930 |
| Distribution reinvestment |  |  |  | 1 |  |  | 1258 |  | 1259 |  | 1259 |
| Repurchase of common stock |  |  |  |  |  |  | (171) |  | (171) |  | (171) |
| Offering costs |  |  |  |  |  |  | (293) |  | (293) |  | (293) |
| Amortization of compensation awards, net |  |  |  |  |  |  | (186) |  | (186) |  | (186) |
| Distributions declared on common stock |  |  |  |  |  |  |  | (6447) | (6447) |  | (6447) |
| Contributions from non-controlling interests |  |  |  |  |  |  |  |  |  | 17 | 17 |
| Distributions to non-controlling interests |  |  |  |  |  |  |  |  |  | (463) | (463) |
| Adjustment to carrying value of redeemable equity instruments |  |  |  |  |  |  | (44) |  | (44) |  | (44) |
| Net income (loss) |  |  |  |  |  |  |  | (396) | (396) | (26) | (422) |
| **Balance at June 30, 2025** | $**196** | $**62** | $**39** | $**47** | $**17** | $**1** | $**361178** | $**(56629)** | $**304911** | $**17826** | $**322737** |
|  | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
|  | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** |  |  |  |  |  |
|  | **Common Stock Class F** | **Common Stock Class FF** | **Common Stock Class E** | **Common Stock Class AA** | **Common Stock Class A** | **Common Stock Class I-S** | **Additional Paid-in Capital** | **Accumulated Deficit and cumulative distributions** | **Total Stockholders' and Members' Equity** | **Non-controlling interests in the consolidated subsidiaries** | **Total Equity** |
| **Balance at March 31, 2024** | $161 | $61 | $1 | $2 | $— | $— | $225843 | $(26900) | $199168 | $46489 | 245657 |
| Common stock issued |  |  |  | 9 |  |  | 9555 |  | 9564 |  | 9564 |
| Distribution reinvestment |  | 1 |  |  |  |  | 807 |  | 808 |  | 808 |
| Exchange of common stock | (1) |  | 1 |  |  |  |  |  |  |  |  |
| Offering costs |  |  |  |  |  |  | (108) |  | (108) |  | (108) |
| Amortization of compensation awards, net | 1 |  |  |  |  |  | 3 |  | 4 |  | 4 |
| Distributions declared on common stock |  |  |  |  |  |  |  | (4294) | (4294) |  | (4294) |
| Contributions from non-controlling interests |  |  |  |  |  |  |  |  |  | 174 | 174 |
| Distributions to non-controlling interests |  |  |  |  |  |  |  |  |  | (1048) | (1048) |
| Adjustment to carrying value of redeemable equity instruments |  |  |  |  |  |  | (38) |  | (38) |  | (38) |
| Net income (loss) |  |  |  |  |  |  |  | (2053) | (2053) | (67) | (2120) |
| **Balance at June 30, 2024** | $**161** | $**62** | $**2** | $**11** | $**—** | $**—** | $**236062** | $**(33247)** | $**203051** | $**45548** | $**248599** |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Condensed Consolidated Statements of Equity (Unaudited)**

**(in thousands)**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **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** | **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** | **Six Months Ended June 30, 2025** |
| | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** | | | | | |
| | **Common Stock Class F** | **Common Stock Class FF** | **Common Stock Class E** | **Common Stock Class AA** | **Common Stock Class A** | **Common Stock Class I-S** |<br>**Additional Paid-in Capital** |<br>**Accumulated Deficit and cumulative distributions** |<br>**Total Stockholders' and Members' Equity** |<br>**Non-controlling interests in the consolidated subsidiaries** |<br>**Total Equity** |
| **Balance at December 31, 2024** | $206 | $63 | $3 | $26 | $1 | $— | $295294 | $(43792) | $251801 | $17310 | 269111 |
| Common stock issued |  |  | 36 | 20 | 16 | 1 | 77298 |  | 77371 |  | 77371 |
| Distribution reinvestment |  | 1 |  | 1 |  |  | 2378 |  | 2380 |  | 2380 |
| Repurchase of common stock | (10) | (2) |  |  |  |  | (13115) |  | (13127) |  | (13127) |
| Offering costs |  |  |  |  |  |  | (485) |  | (485) |  | (485) |
| Amortization of compensation awards, net |  |  |  |  |  |  | (125) |  | (125) |  | (125) |
| Distributions declared on common stock |  |  |  |  |  |  |  | (12182) | (12182) |  | (12182) |
| Contributions from non-controlling interests |  |  |  |  |  |  |  |  |  | 1312 | 1312 |
| Distributions to non-controlling interests |  |  |  |  |  |  |  |  |  | (767) | (767) |
| Adjustment to carrying value of redeemable equity instruments |  |  |  |  |  |  | (67) |  | (67) |  | (67) |
| Net income (loss) |  |  |  |  |  |  |  | (655) | (655) | (29) | (684) |
| **Balance at June 30, 2025** | $**196** | $**62** | $**39** | $**47** | $**17** | $**1** | $**361178** | $**(56629)** | $**304911** | $**17826** | $**322737** |
|  | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
|  | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** | **Par Value** |  |  |  |  |  |
|  | **Common Stock Class F** | **Common Stock Class FF** | **Common Stock Class E** | **Common Stock Class AA** | **Common Stock Class A** | **Common Stock Class I-S** | **Additional Paid-in Capital** | **Accumulated Deficit and cumulative distributions** | **Total Stockholders' and Members' Equity** | **Non-controlling interests in the consolidated subsidiaries** | **Total Equity** |
| **Balance at December 31, 2023** | $161 | $59 | $1 | $— | $— | $— | $221253 | $(20457) | $201017 | $46886 | 247903 |
| Common stock issued |  | 1 |  | 11 |  |  | 13463 |  | 13475 |  | 13475 |
| Distribution reinvestment |  | 2 |  |  |  |  | 1516 |  | 1518 |  | 1518 |
| Exchange of common stock | (1) |  | 1 |  |  |  |  |  |  |  |  |
| Offering costs |  |  |  |  |  |  | (187) |  | (187) |  | (187) |
| Amortization of compensation awards, net | 1 |  |  |  |  |  | 90 |  | 91 |  | 91 |
| Distributions declared on common stock |  |  |  |  |  |  |  | (8436) | (8436) |  | (8436) |
| Contributions from non-controlling interests |  |  |  |  |  |  |  |  |  | 686 | 686 |
| Distributions to non-controlling interests |  |  |  |  |  |  |  |  |  | (1963) | (1963) |
| Adjustment to carrying value of redeemable equity instruments |  |  |  |  |  |  | (73) |  | (73) |  | (73) |
| Net income (loss) |  |  |  |  |  |  |  | (4354) | (4354) | (61) | (4415) |
| **Balance at June 30, 2024** | $**161** | $**62** | $**2** | $**11** | $**—** | $**—** | $**236062** | $**(33247)** | $**203051** | $**45548** | $**248599** |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Condensed Consolidated Statements of Cash Flows (Unaudited)**

**(in thousands)**

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2024** |
| **Cash Flows from Operating Activities:** | | |
| Net income (loss) | $(679) | $(4444) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Management fees | 898 | 620 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 10092 | 12906 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of discounts and deferred financing costs | 285 | 263 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment of investments in real estate | 1913 | 1022 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on sale of real estate | (236) | (34) |
| &nbsp;&nbsp;&nbsp;&nbsp;Straight-line rent adjustment | (211) | (285) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of above- and below-market leases | (3007) | (2300) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of share-based compensation | 122 | 91 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gain) loss on investments in real estate debt | 18 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gain) loss on interest rate cap | 656 | (138) |
| &nbsp;&nbsp;&nbsp;&nbsp;(Income) loss from an unconsolidated entity | (59) | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp;Paid-in-kind interest | (596) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other reconciling items | 39 | 45 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred rent and other receivables | (406) | (297) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | (305) | 426 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | 1121 | 1464 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due to related parties | 600 | (204) |
| **Net cash provided by operating activities** | 10245 | 9125 |
| **Cash Flows From Investing Activities:** |  |  |
| Acquisition of real estate | (33793) | (3562) |
| Additions to real estate | (386) | (1388) |
| Deposit on real estate acquisition, net of refunds | (143) | 48 |
| Proceeds from sale of real estate | 5000 | 3115 |
| Investments in real estate debt | (52000) |  |
| Investment in an unconsolidated entity |  | (1935) |
| Distributions in excess of cumulative earnings from an unconsolidated entity | 83 | 48 |
| **Net cash used in investing activities** | (81239) | (3674) |
| **Cash Flows from Financing Activities:** |  |  |
| Repayments of mortgages and other loans payable | (10425) | (2070) |
| Proceeds from revolving credit facility | 15312 | 1954 |
| Payment of deferred financing costs | (266) | (252) |
| Payment of offering costs | (478) | (249) |
| Due to related parties | (344) | (72) |

---

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Condensed Consolidated Statements of Cash Flows (Unaudited)**

**(in thousands)**

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2024** |
| Subscriptions received in advance | (4224) | 2575 |
| Issuance of common stock | 76286 | 12873 |
| Repurchase of common stock | (13127) |  |
| Distribution to shareholders | (9439) | (6882) |
| Contribution by noncontrolling interests in the consolidated subsidiaries | 1312 | 686 |
| Distribution to noncontrolling interests in the consolidated subsidiary | (767) | (1963) |
| **Net cash provided by (used in) financing activities** | 53840 | 6600 |
| **Net change in cash and cash equivalents and restricted cash** | (17154) | 12051 |
| **Cash and cash equivalents and restricted cash at beginning of period** | 54840 | 23102 |
| **Cash and cash equivalents and restricted cash at end of period** | $37686 | $35153 |
| **Reconciliation of Cash and Cash Equivalents and Restricted Cash:** |  |  |
| Cash and cash equivalents | $23803 | $26374 |
| Restricted cash | 13883 | 8779 |
| Total cash and cash equivalents and restricted cash | $37686 | $35153 |
| **Supplemental Information:** |  |  |
| Interest paid | $5880 | $5690 |
| **Supplemental Disclosure of Noncash Investing and Financing Activities:** |  |  |
| Dividends unpaid | $2210 | $1454 |
| Distribution reinvestment | $2380 | $1516 |
| Contributions by noncontrolling interests in the Operating Partnership | $58 | $1566 |
| Distributions to noncontrolling interests in the Operating Partnership | $58 | $10 |
| Transfer to assets held for sale | $7801 | $1385 |
| Management fee paid in shares | $837 | $605 |
| Performance allocation paid in Operating Partnership units | $— | $1566 |
| Accrued distribution fee | $7 | $61 |
| Adjustment to carrying value of redeemable common stock | $67 | $73 |
| Vested shares issued to board of directors | $248 | $— |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

**1. ORGANIZATION AND DESCRIPTION OF THE BUSINESS**

Sculptor Diversified Real Estate Income Trust, Inc. (the "Company," "we," or "us") was formed on February 11, 2022 as a Maryland corporation and has operated and elected to be treated as a real estate investment trust ("REIT") for U.S. federal income tax purposes beginning January 1, 2023.

The Company is the sole general partner and a limited partner of Sculptor Diversified REIT Operating Partnership LP, a Delaware limited partnership (the "Operating Partnership"). Sculptor Diversified REIT Special Limited Partner LP (the "Special Limited Partner"), an indirect subsidiary of Sculptor Capital LP ("Sculptor"), is the special limited partner in the Operating Partnership. The Company was organized to invest primarily in stabilized, income-generating commercial real estate across a variety of both traditional and non-traditional sectors in the U.S. and Europe, and to a lesser extent, invest in real estate related securities. These assets may include multifamily, industrial, net lease, retail and office assets, as well as others, including, without limitation, healthcare, student housing, single-family, senior living, lodging, data centers, manufactured housing, parking, and self-storage properties. Substantially all of the Company's business is conducted through the Operating Partnership, which was formed on February 22, 2022. The Company and the Operating Partnership are externally managed by Sculptor Advisors LLC (the "Adviser"), an affiliate of Sculptor.

In March 2023, the Company launched a private placement offering exempt from registration under the Securities Act of 1933, as amended (the "Securities Act") (the "Offering"). The Company sells shares monthly in the Offering at a price generally equal to the prior month's net asset value ("NAV") per share as determined pursuant to the valuation guidelines adopted by the Company's board of directors (the "Board"), including a majority of its independent directors, plus applicable fees and commissions. NAV is not a measure used under accounting principles generally accepted in the U.S. ("GAAP") and the valuations of and certain adjustments to the Company's assets and liabilities used in the determination of NAV will differ from GAAP. Our Class A, Class AA, Class D, Class F (issuer direct sales to institutional investors), Class I, Class S, and Class I-S shares are generally available for issuance in the Offering. Class F and Class FF shares were available for issuance through a third-party distribution partner through January 1, 2024, and existing investors in such classes had the ability to invest in such classes in an amount up to such investor's initial investment in such class until January 1, 2025. Class E shares are only expected to be held by Sculptor, its personnel, and affiliates.

As of June 30, 2025, the Company owned a portfolio of 1,122 single-family rental homes, one student housing property, two commercial real estate properties, three investments in real estate debt, and one investment in an unconsolidated real estate venture.

The Company, through its wholly-owned subsidiary, CapGrow Holdings Member, LLC (the "CapGrow Member"), owns a 93.20% controlling interest in CapGrow Holdings JV LLC (the "CapGrow JV"), and together with CapGrow Member ("CapGrow"), owns a portfolio of primarily single-family homes (the "CapGrow Portfolio") leased to and operated by care providers that serve individuals with intellectual and developmental disabilities.

The Company, together with a third-party joint venture partner (such joint venture, the "Denton JV"), owns a 90% controlling interest in a student housing property ("University Courtyard") located in Denton, Texas.

On February 23, 2024, CapGrow JV, CapGrow's founder, and CapGrow Neptune Investor LLC, an affiliate of Sculptor, formed a joint venture, CapGrow Neptune JV LLC (the "Neptune JV"), and closed on the acquisition of a portfolio of single-family residences and intermediate care facilities located in California and Minnesota (the "Neptune Portfolio").

On March 18, 2025, the Company, together with a third-party joint venture partner (such joint venture, the "Parking JV"), closed on the acquisition of two parking garage properties located in Rochester, New York. Concurrent with the acquisition, leases were entered into with a national parking operator for both garages. The Company owns a 85.10% controlling interest in the Parking JV.

From time to time, the Company acquires or enters into interests in real estate debt, such as commercial mortgage backed securities ("CMBS"), loans, and/or preferred equity investments. As of June 30, 2025, investments in real estate debt consists of (i) an investment in preferred equity in a real estate company that owns 65 net-leased veterinary hospitals and clinics, (ii) a junior mortgage loan collateralized by a casino and hotel property located in Las Vegas, Nevada and (iii) investments in CMBS.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Basis of Presentation***

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP 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. All significant intercompany balances and transactions have been eliminated in consolidation. Management believes it has made all necessary adjustments, consisting of only normal recurring items, so that the condensed consolidated financial statements are presented fairly and that estimates made in preparing its condensed consolidated financial statements are reasonable and prudent. Certain amounts in the Company's prior period unaudited condensed consolidated financial statements have been reclassified to conform to the current period presentation. The accompanying unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission (the "SEC"). The operating results for the period presented are not necessarily indicative of the results that may be expected for the year ended December 31, 2025.

***Principles of Consolidation***

The Company consolidates entities in which the Company has a controlling financial interest. Entities in which, directly or indirectly, the Company does not have a controlling interest, are accounted for under the equity method. In determining whether the Company has a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, the Company considers whether the entity is a variable interest entity ("VIE") and whether it is the primary beneficiary. The Company is the primary beneficiary of a VIE when it has (i) the power to direct the most significant activities impacting the economic performance of the VIE and (ii) the obligation to absorb losses or receive benefits significant to the VIE. Entities that do not qualify as VIEs are generally considered voting interest entities ("VOEs") and are evaluated for consolidation under the voting interest model. VOEs are consolidated when the Company controls the entity through a majority voting interest or other means.

For consolidated joint ventures, the non-controlling partner's share of the assets, liabilities, and operations of each joint venture is included in non-controlling interests as equity of the Company. The non-controlling partner's interest is generally computed as the joint venture partner's ownership percentage. Certain of the joint ventures formed by the Company provide the other partner a profits interest based on certain return hurdles being achieved. Any profits interest due to the other partner is reported within non-controlling interests.

When the requirements for consolidation are not met, the investment is accounted for under the equity method of accounting, with the investment initially recorded at cost, with subsequent adjustments for the Company's pro-rata share of net income, contributions and distributions.

The assets of consolidated VIEs will be used first to settle obligations of the applicable VIE. Remaining assets may then be distributed to the VIEs' owners, including the Company, subject to the liquidation preferences of certain noncontrolling interest holders and any other preferential distribution provisions contained within the operating agreements of the relevant VIEs.

As of June 30, 2025, the total assets and liabilities of the Company's consolidated VIEs were $654.0 million and $329.6 million, respectively. Such amounts are included on the Company's condensed consolidated balance sheets.

***Use of Estimates***

The preparation of these condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain amounts reported in the condensed consolidated financial statements and accompanying notes to condensed consolidated financial statements. Actual results could differ from those estimates.

***Investments in Real Estate***

Real estate properties are carried at cost less accumulated depreciation and impairment losses, if any. Upon acquisition, the Company evaluates each acquisition transaction for the purpose of determining whether a transaction should be accounted for as an asset acquisition or business combination. The acquisition transaction qualifies as a business combination when the

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

assets acquired and liabilities assumed constitute a business. If the property acquired does not constitute a business, the Company accounts for the transaction as an asset acquisition. The guidance for business combinations ("screen test") states that when substantially all of the fair value of the gross assets to be acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the asset or set of assets is not a business.

Whether an acquisition is considered a business combination or asset acquisition, the Company determines the fair value of acquired tangible and intangible assets and liabilities (including land, buildings, site improvements, tenant improvements, above-market and below-market leases, acquired in-place leases, leasing commissions and other identified intangible assets and assumed liabilities), the liabilities assumed and any non-controlling interest in the acquired entity. For transactions that are business combinations, the Company evaluates the existence of goodwill or a gain from a bargain purchase. Under the business combination, acquisition-related costs are expensed as incurred. For asset acquisitions, the Company allocates the purchase price to the acquired assets and assumed liabilities based on their relative fair values. Acquisition-related costs associated with asset acquisitions are capitalized as part of the acquisition costs.

Ordinary repairs and maintenance are expensed as incurred. Major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives.

Depreciation is computed using the straight-line method. The estimated useful life of our buildings ranges from eight to 30 years. Improvements to buildings made after the initial acquisition are capitalized and depreciated over useful lives ranging from three to 15 years. Tenant improvements are capitalized and depreciated over the non-cancellable term of the related lease or their estimated useful life, whichever is shorter. Furniture, fixtures, and equipment are capitalized and depreciated over useful lives ranging from two to seven years. Depreciation expense amounted to $3.9 million and $3.6 million for the three months ended June 30, 2025 and 2024, respectively. Depreciation amounted to $7.6 million and $7.2 million for the six months ended June 30, 2025 and 2024, respectively.

The Company evaluates its real estate investments for impairment upon occurrence of a significant adverse change in its operations to assess whether any impairment indicators are present that affect the recovery of the recorded value. If indicators of impairment are identified, the Company estimates the future undiscounted cash flows from the use and eventual disposition of the property and compares this amount to the carrying value of the property. If any real estate investment is considered impaired, a loss is recognized to reduce the carrying value of the property to its estimated fair value. Refer to Note 3, "Investments in Real Estate, Net", for detailed information regarding impairment loss recorded.

From time to time, the Company may identify properties to be sold. The Company considers whether the following conditions have been met in determining whether or not such properties should be classified as held for sale in accordance with GAAP: (i) there is a committed plan to sell a property; (ii) the property is immediately available for sale in its present condition; (iii) an active program to locate a buyer and other actions required to complete the plan to sell a property have been initiated; (iv) the sale of a property is probable within one year (generally determined based upon listing for sale); (v) the property is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and (vi) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. To the extent that these factors are all present, depreciation is discontinued, and properties held for sale are stated at the lower of its carrying amount or its fair value less estimated costs to sell. Assets held for sale and related liabilities are included in other assets and accounts payable and other liabilities, respectively, in the condensed consolidated balance sheets.

***Investments in Real Estate Debt***

The Company's investments in real estate debt consists of an investment in preferred equity of a real estate company, a junior mortgage loan collateralized by a casino and hotel property and investments in CMBS. The Company has elected the fair value option ("FVO") for both the preferred equity investment and the junior mortgage loan, and records these investments at fair value, with unrealized gains and losses of such investment included in income from investment in real estate debt, net on the Company's condensed consolidated statements of operations. For investments in which the Company has elected the FVO, the Company records any related upfront costs and fees in earnings as incurred.

The Company has elected to classify its CMBS as a trading security and records such investment at fair value, with unrealized gains and losses on such security included in income from investments in real estate debt, net on the Company's condensed consolidated statements of operations.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

Interest income from the Company's investment in real estate debt is recognized based on the stated terms of each investment and is included in income from investment in real estate debt, net on the condensed consolidated statements of operations.

***Goodwill***

Goodwill represents the excess of the consideration transferred over the fair value of the identifiable tangible and intangible assets acquired and liabilities assumed in a business combination and is allocated to an entity's reporting unit, which as of June 30, 2025 and December 31, 2024, relates to CapGrow.

The Company evaluates goodwill for impairment when an event occurs or circumstances change that indicate the carrying value may not be recoverable, or at least annually. Unless circumstances otherwise dictate, the annual impairment test is performed as of December 31. In evaluating goodwill for impairment, the Company assesses qualitative factors such as significant decline in real estate valuations or enterprise value of the reporting unit, current macroeconomic conditions, and the overall financial performance of the reporting unit, among others. If the carrying value of a reporting unit exceeds its estimated fair value, then an impairment charge is recorded in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. As of June 30, 2025 and December 31, 2024, goodwill recognized in connection with the acquisition of CapGrow was $34.5 million and there has not been any goodwill impairment.

***Fair Value Measurements***

See Note 12, "Fair Value Measurements," for related disclosures.

***Segment Reporting***

Under the provisions of ASC 280, "Segment Reporting," the Company has determined that it has four reportable segments: Residential (Business), Student Housing, Commercial Properties, and Investments in Real Estate Debt. The first, Residential (Business), is associated with the CapGrow Portfolio as well as CapGrow's investment in Neptune. The CapGrow Portfolio engages in activities related to acquiring, renovating, developing, leasing and operating single-family homes as rental properties. The CapGrow Portfolio is geographically dispersed, and management evaluates operating performance on a total portfolio basis. The aggregation of individual homes constitutes the total portfolio. Decisions regarding acquisitions and dispositions of homes are made at the individual home level with a focus on accretion in high-growth locations where there is greater scale and density.

The second reportable segment, Student Housing, is associated with University Courtyard.

The third reportable segment, Commercial Properties, is associated with the Company's investment in two parking garages located in Rochester, New York. Decisions regarding the allocation of resources are made at the property level.

The fourth reportable segment, Investments in Real Estate Debt, includes the Company's investment in the preferred equity of a real estate company, a junior mortgage loan collateralized by a casino and hotel property and CMBS. Decisions regarding the allocation of resources are made at the investment level.

See Note 16, "Segment Reporting", for related disclosures.

***Revenue Recognition***

The Company derives a significant portion of its revenues from single-family residential leases, which are accounted for as operating leases. The majority of these leases are under a triple net lease arrangement which requires tenants to pay the taxes, insurance and maintenance costs, among others, of the property it leases in addition to its contractual base rent. Other leases are under a modified net lease arrangement wherein tenants pay, for most, but not all property expenses in addition to its contractual base rent. Additionally, the Company also derives revenue from leases at a student housing property and two parking garages which are also accounted for as operating leases. Under the terms of these leases, tenants pay monthly fixed rental income as well as various applicable fees, including utility charges, amenity fees and parking fees. Certain leases also provide for variable rental income which is only recognized when it is earned. As a practical expedient, the Company elected to account for both the lease and non-lease components as a single lease component because the timing and pattern of revenue recognition are generally the same.

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

Rental revenue is recognized on the straight-line basis over the non-cancellable terms of the leases from the later of (i) the date of the commencement of the lease or (ii) the date of acquisition of the property. For lease modifications, the commencement date is considered to be the date the lease modification is executed. Rental revenue recognition begins when tenants control the space and continues through the term of their respective leases, which typically have an initial lease term of five to ten years for CapGrow, and 12 months or less for University Courtyard and the parking garages. Any excess of rents recognized over amounts contractually due pursuant to the underlying leases are included in deferred rent and other receivables on the condensed consolidated balance sheets. Any amounts paid in advance by the tenants are recorded as deferred revenue, which is included in accounts payable and other liabilities on the condensed consolidated balance sheets and are recognized as rental income in accordance with the Company's revenue recognition policy.

Rental revenue is recognized if collectability is probable. For leases that are deemed not probable of collection, revenue is recorded as the lesser of (i) the amount which would be recognized on a straight-line basis or (ii) cash that has been received from the tenant, with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectability determination.

Other revenue includes termination income and late fees. Termination income, which relates to fees paid by tenants to terminate their lease prior to the contractual lease expiration date, and late fees, are recognized during the period when: (i) the termination agreement is executed or the condition is met, (ii) the fee is determinable, and (iii) collectability of the fee is assured. Interest income earned on debt investments, which is included in income on investments in real estate debt, is recognized when earned.

Gain or loss on sale of real estate is recognized when the Company no longer has a controlling financial interest in the real estate, a contract exists with a third party and that third party has control of the assets acquired.

***Income Taxes***

The Company elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"), for U.S. federal income tax purposes beginning with the Company's taxable year ending December 31, 2023. As a REIT, the Company generally is not subject to federal corporate income tax to the extent it distributes 100% of its taxable income to its stockholders. REITs are subject to a number of organizational and operational requirements. If the Company fails to qualify as a REIT in any taxable year, without the benefit of certain relief provisions, the Company will be subject to federal and state income tax on its taxable income at regular corporate tax rates. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income.

The Operating Partnership is classified as a partnership for U.S. federal and state income tax purposes and are therefore not subject to income tax. Each partner is responsible for the tax liability, if any, related to their share of Operating Partnership taxable income or loss.

The Company may elect to treat certain of our corporate subsidiaries as taxable REIT subsidiaries ("TRSs"). In general, a TRS may perform additional services for our tenants and generally may engage in any real estate or non-real estate-related business. The TRSs are subject to taxation at the federal, state and local levels, as applicable. The Company accounts for applicable income taxes by utilizing the asset and liability method. As such, the Company records deferred tax assets and liabilities for the future tax consequences resulting from the difference between the carrying value of existing assets and liabilities and their respective tax basis. A valuation allowance for deferred tax assets is provided if the Company believes all or some portion of the deferred tax asset may not be realized. As of June 30, 2025 and December 31, 2024, there were no significant deferred tax assets or liabilities.

During the three and six months ended June 30, 2025 and 2024, the Company recorded a net income tax expense of less than $0.1 million, which is included in the general and administrative expenses in the condensed consolidated statements of operations.

Management is responsible for determining whether a tax position taken by the Company or the Operating Partnership is more likely than not to be sustained on the merits. The Company has no material unrecognized tax benefits or uncertain income tax positions and therefore no interest or penalties associated with uncertain tax positions.

**Recent Accounting Pronouncements**

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

In December 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," or ASU 2023-09. ASU 2023-09 requires additional disaggregated disclosures on the entity's effective tax rate reconciliation and additional details on income taxes paid. ASU 2023-09 is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2024 and early adoption is permitted. The Company adopted this guidance on January 1, 2025 and it did not have a material impact on our consolidated financial statements.

In November 2024, the FASB issued ASU No. 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses" ("ASU 2024-03"), which requires disclosure of certain costs and expenses on an interim and annual basis in the notes to the financial statements. ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods within annual periods beginning after December 15, 2027, and early adoption is permitted. The Company is evaluating the impact this ASU will have on our condensed consolidated financial statements.

**3. INVESTMENTS IN REAL ESTATE, NET**

Investments in real estate, net consists of (in thousands):

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| Land and land improvements | $79269 | $77098 |
| Building and improvements | 433132 | 415498 |
| Furniture, fixtures and equipment | 1698 | 1612 |
| Total real estate properties, at cost | 514099 | 494208 |
| Less: accumulated depreciation | (33269) | (26396) |
| Investments in real estate, net | $480830 | $467812 |

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**Asset Acquisitions**

During the three months ended June 30, 2025 and 2024, the Company, through CapGrow, acquired 44 and three vacant homes, at an aggregate purchase price of approximately $19.1 million and $1.2 million, respectively.

During the six months ended June 30, 2025 and 2024, the Company, through CapGrow acquired 63 and 10 vacant homes, at an aggregate purchase price of approximately $25.2 million and $3.5 million, respectively.

On March 18, 2025, the Company, through the Parking JV, closed on the acquisition of two parking garages located in Rochester, New York for a total purchase price, inclusive of closing costs, of $8.5 million, of which the Company's share was $7.2 million. Concurrent with the closing of the acquisition, the two parking garages entered into lease agreements with a national parking operator. As of June 30, 2025, the Company owned an 85.10% indirect controlling interest in the Parking JV.

**Asset Dispositions**

During the three months ended June 30, 2025 and 2024, the Company sold 11 and five homes for aggregate net proceeds of $3.8 million and $2.0 million, respectively. During the three months ended June 30, 2025, the Company recognized impairment loss of $0.5 million and gain on sale of $0.2 million on these assets sold. During the three months ended June 30, 2024, the Company recognized impairment loss of $0.2 million and gain on sale of $34.0 thousand on these assets sold.

During the six months ended June 30, 2025 and 2024, the Company sold 16 and ten homes for aggregate net proceeds of $5.0 million and $3.1 million, respectively. During the six months ended June 30, 2025, the Company recognized impairment loss of $0.6 million and gain on sale of $0.2 million on these assets sold. During the six months ended June 30, 2024, the Company recognized impairment loss of $0.4 million and gain on sale of $34.0 thousand on these assets sold.

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

**Properties Held-for-Sale**

As of June 30, 2025 and December 31, 2024, the Company classified 26 properties and two properties, respectively, as held for sale. As of June 30, 2025 and December 31, 2024, assets held for sale, which are included in other assets in the condensed consolidated balance sheets, amounted to $7.7 million and $0.9 million, respectively. As of June 30, 2025 and December 31, 2024, liabilities held for sale, which are included in accounts payable and other liabilities in the condensed consolidated balance sheets, amounted to $0.7 million and $0.7 million, respectively.

**Asset Impairment**

The Company evaluates impairment on held for use properties generally when leases are terminated and/or are vacant. As of June 30, 2025 and December 31, 2024, the Company, through CapGrow, had nine and 16 impaired held for use properties, respectively.

The details of impairment losses for the three months ended June 30, 2025 and 2024 and for the six months ended June 30, 2025 and 2024 are as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Impairment loss - assets sold | $457 | $204 | $595 | $398 |
| Impairment loss - held for sale<sup>(1)</sup> | 575 | 69 | 811 | 180 |
| Impairment loss - held for use<sup>(1)</sup> | 128 | 307 | 507 | 444 |
|  | $1160 | $580 | $1913 | $1022 |

---

___________________________________________

<sup>(1)</sup> Amount is net of impairment loss reclassified to Impairment loss - assets sold during the period.

**4. INVESTMENT IN UNCONSOLIDATED ENTITIES**

In February 2024, Neptune JV, through its wholly owned subsidiary ("Neptune Owner"), closed on the acquisition of the Neptune Portfolio for a gross purchase price of $101.5 million, exclusive of closing costs. Concurrently with the acquisition, Neptune Owner obtained debt financing in the amount of $66.0 million. Neptune JV is a VIE in which the Company is not the primary beneficiary. Therefore, the Company accounts for this investment under the equity method of accounting. The Company owns an indirect equity interest of 4.66% in the Neptune Portfolio as of June 30, 2025. Our maximum loss is limited to the amount of our equity investment in this VIE. As of June 30, 2025 and December 31, 2024, the Company's investment in unconsolidated entity was $1.8 million and $1.8 million, respectively. During the three months ended June 30, 2025 and 2024, as well as the six months ended June 30, 2025 and 2024, the income from unconsolidated entity, which was included in income from an unconsolidated entity on the condensed consolidated statements of operations, was less than $0.1 million.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

**5. INVESTMENTS IN REAL ESTATE DEBT**

Investments in real estate debt consists of (in thousands):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| |<br>**Coupon** |<br>**Maturity Date** | **Face Amount**<sup>(1)</sup> | **Cost Basis**<sup>(1)</sup> | **Fair Value** |
| Preferred equity | 12.25%<sup>(2)</sup> | N/A<sup>(3)</sup> | $35596 | $35596 | $35596 |
| Junior mortgage loan | SOFR + 7.50%<sup>(4)</sup> | May 5, 2030 | 17000 | 17000 | 17000 |
| CMBS - floating | 1M SOFR + 2.941% | January 2030 | 8000 | 7980 | 7966 |
|  |  |  | $60596 | $60576 | $60562 |
|  |  |  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Coupon** | **Maturity Date** | **Face Amount** | **Cost Basis** | **Fair Value** |
| CMBS - floating | 1M SOFR + 2.941% | January 2030 | $8000 | $7980 | $7985 |
|  |  |  | $8000 | $7980 | $7985 |

---

_______________________________________

<sup>(1)</sup> Investment in preferred equity includes original stated balance of $35.0 million plus paid-in-kind interest as of June 30, 2025.

<sup>(2)</sup> Interest accrues monthly with a current pay rate of 7.00% and a deferred interest rate of 5.25% through March 2030, after which the current pay rate increases to 12.00% and the deferred interest rate remains at 5.25% until the preferred units are fully redeemed, including accrued interest.

<sup>(3)</sup> The Company's preferred equity investment does not contain a stated maturity date. The Company has the right to cause the issuer to market and sell assets sufficient to redeem all remaining preferred units, including accrued interest, beginning in March 2031.

<sup>(4)</sup> Interest accrues monthly at a rate of SOFR+ 7.50% with a SOFR floor of 3.00%.

In March 2025, the Company closed on the acquisition of $35.0 million of 12.25% cumulative preferred equity interests in a private real estate company that owns 65 net-leased veterinary hospitals and clinics. From the issue date through the fifth anniversary of the issue date, interest accrues monthly at a rate of 12.25%, with a current pay rate of 7.00% and the remainder deferred and added to the outstanding balance of the investment. Unless the preferred units are fully redeemed, after the fifth anniversary of the issue date, interest accrues at a rate of 17.25%, with a current pay rate of 12.00%. If the preferred units are not redeemed prior to the sixth anniversary of the issue date, the Company has the right to cause the issuer to market and sell assets of the issuer sufficient to redeem all remaining preferred units, including any accrued but unpaid interest. As the investment in preferred equity is subject to the Company's right to cause redemption, if not already redeemed by the issuer itself, the instrument is considered a debt security and is included in our investment in real estate debt.

On May 5, 2025, the Company closed on a $17.0 million junior mortgage loan collateralized by a casino and hotel property located in Las Vegas, Nevada. The loan accrues interest monthly at a rate of SOFR + 7.50% with a SOFR floor of 3.00%. The interest rate may increase by 0.50% if the borrower fails to comply with certain provisions under the first lien credit facility. The loan matures on May 5, 2030, unless repaid earlier, and is secured by a second-priority lien on substantially all assets of the borrower and guarantors, subordinated to the first lien facility.

The following table details the Company's income (loss) from investments in real estate debt (in thousands):

---

| | | |
|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| Interest income | $1561 | $2012 |
| Unrealized (loss) gain | (33) | (18) |
| Other<sup>(1)</sup> | 255 | 605 |
| Total | $1783 | $2599 |

---

_______________________________________

<sup>(1)</sup> Represents origination fees received concurrent with the origination of the preferred equity investment. As a result of the election of the FVO, these fees were recognized at origination.

We did not own any real estate debt for the three and six months ended June 30, 2024.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

**6. LEASE INTANGIBLES** 

The gross carrying amount and accumulated amortization of the Company's intangible assets and liabilities as of June 30, 2025 and December 31, 2024 are as follows.

---

| | | | |
|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| | **Cost** | **Accumulated Amortization** | **Net** |
| <u>Intangible assets, net:</u> |  |  |  |
| Above-market lease intangibles | $3110 | $(1593) | $1517 |
| In-place lease intangibles | 8178 | (2164) | 6014 |
| Leasing commissions | 31587 | (6436) | 25151 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total intangible assets | $42875 | $(10193) | $32682 |
| <u>Intangible liabilities, net:</u> |  |  |  |
| Below-market lease intangibles | $(55185) | $10715 | $(44470) |

---

---

| | | | |
|:---|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| | **Cost** | **Accumulated Amortization** | **Net** |
| <u>Intangible assets, net:</u> |  |  |  |
| Above-market lease intangibles | $3126 | $(1288) | $1838 |
| In-place lease intangibles | 8370 | (1782) | 6588 |
| Leasing commissions | 32290 | (5250) | 27040 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total intangible assets | $43786 | $(8320) | $35466 |
| <u>Intangible liabilities, net:</u> |  |  |  |
| Below-market lease intangibles | $(56572) | $8765 | $(47807) |

---

For the three months ended June 30, 2025 and 2024, the Company recognized $1.2 million and $1.0 million, respectively, of rental revenue for the amortization of aggregate below-market leases in excess of above-market leases resulting from the allocation of the purchase price of the applicable properties and wrote off $0.3 million and $0.1 million, respectively, of accumulated amortization related to fully amortized assets, held for sale assets and sold assets sold. Additionally, during the three months ended June 30, 2025 and 2024, the Company recorded $1.1 million and $2.8 million, respectively, of amortization of in-place leases and leasing commissions and wrote off $0.2 million and $0.1 million, respectively, of accumulated amortization related to fully amortized assets, held for sale assets and assets sold.

For the six months ended June 30, 2025 and 2024, the Company recognized $3.0 million and $2.3 million, respectively, of rental revenue for the amortization of aggregate below-market leases in excess of above-market leases resulting from the allocation of the purchase price of the applicable properties and wrote off $1.4 million and $0.4 million, respectively, of accumulated amortization related to fully depreciated assets, held for sale assets and sold assets. Additionally, during the six months ended June 30, 2025 and 2024, the Company recorded $2.5 million and $5.7 million, respectively, of amortization of in-place leases and leasing commissions and wrote off $0.9 million and $0.3 million of accumulated amortization related to fully amortized assets, held for sale assets and assets sold. Amortization of the in-place leases and leasing commissions are included in depreciation and amortization of the condensed statements of operations.

As of June 30, 2025, the weighted-average amortization period for above-market leases, in-place lease intangibles, leasing commissions and below-market lease costs is 3.7 years, 10.8 years, 12.0 years and 12.6 years, respectively. As of June 30,

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

2025, the estimated future amortization of the Company's lease intangibles for each of the next five years and thereafter is as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Above-market Lease Intangibles** | **In-place Lease Intangibles** | **Leasing Commissions** | **Below-market Lease Intangibles** |
| 2025 (six months) | $318 | $426 | $1289 | $(2135) |
| 2026 | 511 | 752 | 2474 | (4161) |
| 2027 | 343 | 654 | 2356 | (4004) |
| 2028 | 94 | 543 | 2195 | (3841) |
| 2029 | 86 | 534 | 2177 | (3803) |
| Thereafter | 165 | 3105 | 14660 | (26526) |
|  | $1517 | $6014 | $25151 | $(44470) |

---

**7. OTHER ASSETS** 

The following table summarizes the components of other assets (in thousands). Refer to Note 12, "Fair Value Measurements", for additional information on the interest rate cap included in Derivative assets below.

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| Assets held for sale | $7719 | 859 |
| Derivative assets | 1613 | 2269 |
| Deferred costs | 590 | 410 |
| Right of use asset - operating lease | 199 | 234 |
| Pre-acquisition costs | 174 | 31 |
| Prepaid insurance | 146 | 418 |
| Prepaid ground rent | 95 | 95 |
| Other | 623 | 204 |
| Total | $11159 | $4520 |

---

**8. ACCOUNTS PAYABLE AND OTHER LIABILITIES** 

The following table summarizes the components of accounts payable and other liabilities (in thousands):

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| Accounts payable and accrued expenses | $3519 | $1729 |
| Tenant security deposits | 2435 | 2426 |
| Distribution payable | 2210 | 1846 |
| Subscriptions received in advance | 7838 | 12061 |
| Property taxes payable | 463 | 899 |
| Liabilities related to assets held for sale | 713 | 713 |
| Lease liability - operating lease | 205 | 239 |
| Deferred income | 110 | 312 |
| Total | $17493 | $20225 |

---

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

**9. BORROWINGS**

***Mortgages and Other Loans Payable, net***

The following table provides information regarding the Company's mortgages and other loans payable, some of which were assumed upon acquisition of CapGrow and were secured by certain properties of CapGrow (amounts in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** | **Interest<br>Rate** | **Initial Maturity<br>Date** |
| Mortgage note payable<sup>(1)(2)</sup> | $5272 | $5330 | 7.50% | October 2026 |
| Mortgage note payable<sup>(2)</sup> | 8017 | 8942 | 5.19% | June 2027 |
| Mortgage note payable<sup>(2)</sup> | 8592 | 8726 | 3.75% | April 2028 |
| Mortgage note payable<sup>(2)</sup> | 6257 | 7445 | 5.59% | April 2028 |
| Mortgage note payable<sup>(2)</sup> | 17592 | 18111 | 4.28% | November 2029 |
| Mortgage note payable<sup>(3)</sup> | 46206 | 48172 | 3.59% | September 2030 |
| Mortgage note payable<sup>(4)</sup> | 34903 | 37901 | 3.85% | January 2031 |
| Mortgage note payable<sup>(2)</sup> | 1941 | 1969 | 4.35% | February 2031 |
| Mortgage note payable<sup>(5)</sup> | 23267 | 24982 | 4.01% | January 2032 |
| Mortgage note payable<sup>(2)</sup> | 13721 | 13907 | 4.00% | March 2032 |
| Mortgage note payable<sup>(6)</sup> | 31652 | 32241 | 6.60% | September 2033 |
| Mortgage note payable <sup>(7)</sup> | 20880 | 20880 | 3.56% | November 2033 |
| Mortgage note payable<sup>(2)</sup> | 710 | 729 | 5.63% to 6.38% | February 2037 through January 2039  |
| Notes payable<sup>(8)</sup> | 219 | 318 | 7.00% | October 2025 through January 2026  |
| **Total** | 219229 | 229653 |  |  |
| Discounts and deferred financing costs, net | (2981) | (3114) |  |  |
| Total mortgages and other loans payable, net | $216248 | $226539 |  |  |

---

_______________________________________

<sup>(1)</sup> Includes one mortgage loan related to assets held for sale amounting to $0.7 million at June 30, 2025 and December 31, 2024, which is included in accounts payable and other liabilities on the condensed consolidated balance sheets. On June 28, 2024, the Company entered into a modification and extension agreement which provides, among other things, the extension of the original maturity date from June 28, 2024 to October 31, 2026 and an increase in interest rate from 5% to 7.5%.

<sup>(2)</sup> These loans are subject to monthly principal and interest payments through maturity date.

<sup>(3)</sup> Interest only payment loan through September 2023, at which time monthly principal and interest payments are due through maturity date.

<sup>(4)</sup> Interest only payment loan through January 2024, at which time monthly principal and interest payments are due through maturity date.

<sup>(5)</sup> Interest only payment loan through January 2025, at which time monthly principal and interest payments are due through maturity date.

<sup>(6)</sup> Interest only payment loan through September 2026, at which time monthly principal and interest payments are due through maturity date.

<sup>(7)</sup> The acquisition of University Courtyard was funded partly by equity, a $20.8 million leasehold mortgage, and $23.2 million of financing proceeds derived from a failed sale and leaseback transaction. This leasehold mortgage bears interest based on SOFR plus 2.56% per annum and is subject to interest only payments through November 2028, at which time monthly principal and interest payments are due through maturity date. In connection with this leasehold mortgage, University Courtyard entered into a 5-year interest rate cap agreement which caps SOFR at 1% per annum. The interest rate above represents the effective interest rate giving consideration to the interest rate cap. The contractual rate not giving effect to the interest rate cap is 6.91%. Refer to "Financing Obligation, net" below for additional information relating to the failed sale and leaseback transaction. Refer to Note 12, "Fair Value Measurements," for additional information related to this interest rate cap.

<sup>(8)</sup> These loans, which are owed to private parties, bear interest rates of 7%. Monthly principal and interest payments are due through maturity date beginning October 2025 through January 2026.

***Revolving Credit Facility***

Upon the acquisition of CapGrow, the Company assumed the existing revolving line of credit agreement (the "Credit Facility") with CIBC Bank USA, which carried an outstanding loan balance of $30.3 million and allowed for a maximum borrowing facility of $50.0 million and had a maturity date of February 2024. The maturity date of the Credit Facility was

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

initially extended to February 2025 as a result of the Company exercising its one-year extension option, and was further extended to February 2027. The Credit Facility bears interest equal to Term SOFR plus 3.50% per annum. As of June 30, 2025 and December 31, 2024, the interest rate was 7.95% and 7.99%, respectively. As of June 30, 2025 and December 31, 2024, the Credit Facility had an outstanding principal balance of $33.5 million and $18.2 million, respectively. The Credit Facility is guaranteed by certain subsidiaries of CapGrow.

***Financing Obligation, Net***

In connection with the acquisition of University Courtyard in October 2023, the Company entered into a sale and leaseback transaction whereby the underlying land was sold to an unaffiliated third party for $23.2 million and simultaneously entered into a lease agreement with the same unaffiliated third party to lease the property back. The sale and leaseback of University Courtyard is accounted for as a failed sale and leaseback because the lease is classified as a finance lease. Accordingly, the sale of the underlying land is not recognized and the property continues to be included within the Company's condensed consolidated financial statements. The Company will continue to depreciate the property as if the Company is the legal owner. The proceeds received from the sale, net of debt financing costs of $0.2 million, are accounted for as a financing obligation on our condensed consolidated balance sheets. The Company allocates the rental payments under the lease between interest expense and principal repayment of the financing obligation using the effective interest method and amortizes over the 99-year lease term. The total principal payments are not expected to exceed the difference between the gross proceeds from the sale of $23.2 million and the initial carrying value of the land of $4.1 million, resulting in maximum principal payments of $19.1 million over the term of the arrangement. As of June 30, 2025 and December 31, 2024, the net carrying value of the financing obligation was $23.0 million.

***Restrictive Covenants***

The Company is subject to various financial and operational covenants under certain of its mortgages and other loans payable and the Credit Facility. These covenants require the Company to maintain a minimum debt service coverage ratio, liquidity, and net worth, and a minimum of two years of remaining lease term on all of the CapGrow Portfolio, among others. As of June 30, 2025 and December 31, 2024, the Company was in compliance with all of its loan covenants.

***Contractual Maturities***

The scheduled principal maturities for each of the next five years and thereafter of the Company's mortgages and other loans payable and Credit Facility as of June 30, 2025 were as follows (amounts in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Year Ending** | **Mortgages and Other Loans Payable** | **Credit Facility** | **Financing Obligation** | **Total** |
| December 31, 2025 (six months) | $2065 | $— | $1 | $2066 |
| December 31, 2026 | 9168 |  | 3 | 9171 |
| December 31, 2027 | 11045 | 33545 | 5 | 44595 |
| December 31, 2028 | 17258 |  | 7 | 17265 |
| December 31, 2029 | 19788 |  | 8 | 19796 |
| Thereafter | 159905 |  | 19118 | 179023 |
|  | $219229 | $33545 | $19142 | $271916 |

---

**10. STOCKHOLDERS' AND MEMBERS' EQUITY AND NON-CONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP AND CONSOLIDATED SUBSIDIARIES**

***Authorized Capital Stock***

As of June 30, 2025, the Company's authorized capital stock was as follows:

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

---

| | | |
|:---|:---|:---|
| | **Number of Shares** | **Par Value per Share** |
| Class F Shares | 300000000 | $0.01 |
| Class FF Shares | 300000000 | $0.01 |
| Class S Shares | 300000000 | $0.01 |
| Class D Shares | 300000000 | $0.01 |
| Class I Shares | 300000000 | $0.01 |
| Class A Shares | 300000000 | $0.01 |
| Class AA Shares | 300000000 | $0.01 |
| Class I-S Shares | 100000000 | $0.01 |
| Class E Shares | 100000000 | $0.01 |
| Total | 2300000000 |  |
| Preferred Stock | 100000000 | $0.01 |
|  | 2400000000 |  |

---

***Common Stock***

The following table details the changes in the Company's outstanding shares of common stock:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Class F** | **Class FF** | **Class E** | **Class AA** | **Class A** | **Class I-S** | **Total** |
| March 31, 2025 | 19607042 | 6191298 | 1982592 | 3593393 | 1558735 | 48381 | 32981441 |
| Common stock issued |  |  | 1933046 | 1010425 | 143189 |  | 3086660 |
| Distribution reinvestment | 399 | 66957 | 5579 | 41918 | 2772 | 872 | 118497 |
| Shares repurchased |  | (16319) |  |  |  |  | (16319) |
| June 30, 2025 | 19607441 | 6241936 | 3921217 | 4645736 | 1704696 | 49253 | 36170279 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **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** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** |
| | **Class F** | **Class FF** | **Class E** | **Class AA** | **Class A** | **Class I-S** | **Total** |
| December 31, 2024 | 20637033 | 6311042 | 266204 | 2566352 | 128535 |  | 29909166 |
| Common stock issued |  |  | 3644607 | 2005927 | 1571089 | 48097 | 7269720 |
| Distribution reinvestment | 790 | 133698 | 10406 | 73457 | 5072 | 1156 | 224579 |
| Shares repurchased | (1030382) | (202804) |  |  |  |  | (1233186) |
| June 30, 2025 | 19607441 | 6241936 | 3921217 | 4645736 | 1704696 | 49253 | 36170279 |

---

Holders of Class F shares purchased before January 1, 2023, totaling 15,019,800 shares, are prohibited from seeking repurchase of their shares before January 1, 2026 except in the event of a material violation, amendment, or waiver of the Company's corporate governance guidelines without the prior consent of the holders of a majority of the outstanding Class F shares.

***Share Repurchase Plan***

On February 10, 2023, the Company adopted a Share Repurchase Plan (the "Repurchase Plan"), whereby, subject to certain limitations, stockholders may request on a monthly basis that the Company repurchase all or any portion of their shares. The total amount of aggregate repurchases of the Company's stock is limited during each calendar month to 2% of the aggregate NAV of all classes as of the last calendar day of the previous quarter and in each calendar quarter will be limited to 5% of the aggregate NAV of all share classes as of the last calendar day of the previous calendar quarter; provided, however, that every

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

month and quarter each class of the Company's stock will be allocated capacity within such aggregate limit to allow stockholders in such class to either (a) redeem shares equal to at least 2% of the aggregate NAV of such share class as of the last calendar day of the previous quarter, or, if more limiting, (b) redeem shares over the course of a given quarter equal to at least 5% of the aggregate NAV of such share class as of the last calendar day of the previous quarter. Shares will be repurchased at a price equal to the transaction price on the applicable repurchase date, subject to any Early Repurchase Deduction (as defined below). The transaction price will generally equal the prior month's NAV per share for that share class. Shares repurchased within one year of the date of issuance will be repurchased at 95% of the current transaction price (the "Early Repurchase Deduction"). The Early Repurchase Deduction will not apply to shares acquired through the distribution reinvestment plan. Due to the illiquid nature of investments in real estate, the Company may not have sufficient liquid resources to fund repurchase requests, and the Company has established limitations on the amount of funds it may use for repurchases during any calendar month and quarter as described above. The Company's Board may modify, suspend or terminate the Repurchase Plan. During the three and six months ended June 30, 2025 , the Company repurchased 16,319 and 1,233,186 shares for $0.2 million and $13.1 million, respectively. There were no shares repurchased during the six months ended June 30, 2024.

***Distributions***

To comply with the REIT provisions of the Code, the Company generally intends to distribute substantially all of its taxable income, which does not necessarily equal net income as calculated in accordance with GAAP, to our stockholders.

Each class of common stock receives the same gross distribution per share. The net distribution varies for each class based on the applicable distribution fee, which is deducted from the monthly distribution per share and paid directly to the applicable distributor, and/or certain other class-specific fees, as applicable. The following table details the aggregate distributions declared for each applicable class of common stock:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Class F** | **Class FF** | **Class E** | **Class AA** | **Class A** | **Class I-S** |
| Aggregate gross distributions declared per share of common stock | $0.1854 | $0.1854 | $0.1854 | $0.1854 | $0.1854 | $0.1854 |
| Distribution fee per share of common stock |  | (0.0131) |  | (0.0131) |  |  |
| Net distributions declared per share of common stock | $0.1854 | $0.1723 | $0.1854 | $0.1723 | $0.1854 | $0.1854 |

---

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **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** | **Six Months Ended June 30, 2025** |
| | **Class F** | **Class FF** | **Class E** | **Class AA** | **Class A** | **Class I-S** |
| Aggregate gross distributions declared per share of common stock | $0.3711 | $0.3711 | $0.3711 | $0.3711 | $0.3711 | $0.3091 |
| Distribution fee per share of common stock |  | (0.0260) |  | (0.0261) |  |  |
| Net distributions declared per share of common stock | $0.3711 | $0.3451 | $0.3711 | $0.3450 | $0.3711 | $0.3091 |

---

***Distribution Reinvestment Plan***

In February 2023, the Company adopted a distribution reinvestment plan ("DRIP") whereby participating stockholders will have their cash distributions attributable to the class of shares purchased automatically reinvested in the same class of shares. The per share purchase price for shares purchased under the DRIP will be equal to the transaction price on the record date of the distribution that is payable. Stockholders will not pay upfront selling commissions when purchasing shares pursuant to the DRIP, but such shares will be subject to distribution fees, if any. The distribution fees (when applicable) are calculated based on the NAV for the applicable shares and may reduce the NAV, or alternatively, the distributions payable with respect to the shares of each such class, including shares issued under the DRIP.

***Share-Based Compensation Plan***

On March 7, 2023, the Board approved the independent director compensation plan (the "Compensation Plan"), which provides independent directors an initial one-time grant of Class F restricted shares of common stock valued at $100,000 (the

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

"Initial Grant"), annual compensation consisting of a number of restricted shares (the "Equity Retainer") valued at $25,000 and all or a portion of their cash compensation (the "Cash Retainer") if the independent directors elect to receive such cash compensation in the form of restricted shares of the Company's common stock. Prior to September 3, 2023, any grant of restricted stock was based on the then-current per share transaction price of the Class F shares at the time of grant. In April 2024, the Board approved the exchange of these Class F shares for a number of Class E shares with an equivalent aggregate net asset value. Thereafter, any grant of restricted stock will be based on the then-current per share transaction price of the Class E shares at the time of grant. Restricted stock grants will generally vest on the first anniversary of the date of grant. During the restricted period, these restricted shares are automatically subject to the Company's DRIP with all dividends and other distributions declared and paid in respect of such restricted shares being applied to the purchase of additional restricted shares of the same class until the later of (i) such restricted shares becomes fully vested or (ii) receipt of nonparticipation in the DRIP by such independent director. The maximum number of shares that will be available for issuance under the Compensation Plan is 500,000.

In March 2023, the Company granted approximately $0.6 million or approximately 62,411 Class F restricted shares of common stock which represented the Initial Grant, Equity Retainer and a portion of the Cash Retainer that the independent directors have elected to receive in restricted shares of stock. These restricted stock grants along with the additional restricted shares earned under the DRIP vested between February 2024 and April 2024. Upon the Board's approval, all Class F Shares previously granted were exchanged for Class E Shares of common stock. In June 2024, the Company granted approximately $0.2 million or approximately 22,792 Class E restricted shares which represented the Equity Retainer and a portion of the Cash Retainer that the independent directors have elected to receive in restricted shares of common stock. These restricted stock grants along with the additional restricted shares earned under the DRIP were vested in June 2025. In June 2025, the Company granted approximately $0.2 million, or approximately 18,927 Class E restricted shares, which represented the Equity Retainer and a portion of the Cash Retainer that the independent directors have elected to receive in restricted shares of common stock. These restricted stock grants along with the additional restricted shares earned under the DRIP will vest in June 2026.

As of June 30, 2025, 395,870 shares of common stock remain available for issuance under the Compensation Plan. For both the three months ended June 30, 2025 and 2024, total share-based compensation recognized was less than $0.1 million. For the six months ended June 30, 2025 and 2024, total share-based compensation recognized was both $0.1 million. The Company adopted the policy of accounting for forfeitures as they occur. As of June 30, 2025, the Company expects that the independent directors will complete their requisite service period. If awards are ultimately forfeited prior to vesting, then the Company will reclassify amounts previously charged to retained earnings to compensation cost in the period the award is forfeited.

***Non-controlling Interest in the Operating Partnership***

As discussed in Note 11, "Related Party Transactions," the Special Limited Partner holds a performance participation interest in the Operating Partnership. Because the Special Limited Partner has the ability to redeem its Class E units for cash or Class E shares, at its election, the Company has classified these Class E units as a redeemable non-controlling interest in the Operating Partnership on our condensed consolidated balance sheets. The redeemable non-controlling interest in the Operating Partnership is recorded at the greater of the carrying amount, adjusted for its share of the allocation of income or loss and dividends, or the redemption value, which is equivalent to fair value, of such units at the end of each measurement period.

Below are the details of the non-controlling interest in the Operating Partnership:

---

| | | |
|:---|:---|:---|
| | **Six Months Ended June 30,** | **Six Months Ended June 30,** |
| | **2025** | **2024** |
| **Balance at the beginning of the year** | $1648 | $2 |
| Issuance of Class E units | 58 | 1611 |
| Distributions | (58) | (55) |
| GAAP income allocation | 5 | (29) |
| Adjustment to carrying value of redeemable equity instrument | 67 | 73 |
| **Ending balance** | $1720 | $1602 |

---

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

***Non-controlling Interest in the Consolidated Subsidiaries***

Non-controlling interest in the consolidated subsidiaries represents an affiliate and third-party equity interests in certain consolidated entities that are not wholly owned by the Company.

***Members' Equity of CapGrow***

Within CapGrow, the members' obligations and rights relating to contributions, distributions, and allocation of income and loss, among others, are governed by CapGrow's limited liability company agreement, as further amended from time to time (the "CapGrow Agreement"). Distributions of available cash are distributed to the members of CapGrow based on their respective membership interests until certain internal rate of return thresholds are met. As the rate of return thresholds are achieved, the allocation of distributions is modified as further described in the CapGrow Agreement. Income or losses are allocated to the members in amounts that result in ending capital account balances reflecting the amounts that would be distributed to them assuming CapGrow was liquidated at book value at the end of the reporting period.

**11. RELATED PARTY TRANSACTIONS**

***Due from Related Parties***

Since our initial investment, CapGrow has overseen the day-to-day operations of the Neptune JV and is entitled to a reimbursement of expenses borne on behalf of the Neptune JV. As of June 30, 2025 and December 31, 2024, there were no reimbursement of expenses due from the Neptune JV.

***Due to Related Parties***

The components of due to related parties of the Company are as follows (in thousands):

---

| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| Accrued management fee | $315 | 255 |
| Accrued performance participation allocation | 623 |  |
| Due to adviser | 1 | 21 |
| Advanced organization and offering costs | 2576 | 2920 |
| Due to affiliates | 36 | 39 |
|  | $3551 | $3235 |

---

***Management Fee***

The Company pays the Adviser an annual asset management fee equal to 0.50% of the NAV of the Company's Class F and Class FF Common Shares, and 0.75% of the NAV of the Company's Class AA, Class A and Class I-S Common Shares. If in the future the Company sells other classes of shares, the Company will pay the Adviser a management fee of 1.25% of the aggregate NAV of Class S Common Shares, Class D Common Shares and Class I Common Shares per annum payable monthly. Additionally, to the extent that the Operating Partnership issues Operating Partnership units to parties other than the Company, the Operating Partnership will pay the Adviser a management fee equal to 1.25% of the aggregate NAV of the Operating Partnership attributable to such Operating Partnership units not held by the Company per annum payable monthly in arrears. No management fee will be paid with respect to Class E Common Shares or Class E Units, which are only expected to be held by Sculptor, its personnel and affiliates. In calculating the management fee, the Company will use its NAV and the NAV of the Operating Partnership units not held by the Company before giving effect to monthly accruals for the management fee, the performance participation allocation, distribution fees or distributions payable on the Company's shares of stock or Operating Partnership units.

The management fee, which is due monthly in arrears, may be paid, at the Adviser's election, in cash, Class E shares or Class E units of our Operating Partnership. The Adviser may defer the payment of management fee at its discretion.

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

During the three months ended June 30, 2025 and 2024, the Company incurred management fees amounting to $0.5 million and $0.3 million, respectively. During the six months ended June 30, 2025 and 2024, the Company incurred management fees amounting to $0.9 million and $0.6 million, respectively.

During the six months ended June 30, 2025, the Company issued 78,024 Class E shares as payment for the management fee from November 2024 through April 2025.

As of June 30, 2025 and December 31, 2024, the Company owed management fees amounting to $0.3 million and $0.3 million, respectively.

***Performance Participation***

The Special Limited Partner holds a performance participation interest in the Operating Partnership, which has multiple components: a performance participation interest with respect to the Class D units, Class I units and Class S units (the "Performance Allocation"); a performance allocation with respect to the Class A units and Class AA units (the "Class A Performance Allocation"); a performance allocation with respect to the Class I-S units (the "Class I-S Performance Allocation"); and a performance allocation with respect to the Class F units and Class FF units (the "Class F Performance Allocation"). The Performance Allocation entitles the Special Limited Partner to receive an allocation from the Operating Partnership equal to 12.5% of the Total Return, subject to a 5% Hurdle Amount and a High-Water Mark, with a Catch-Up; the Class A Performance Allocation entitles the Special Limited Partner to receive an allocation equal to 10.0% of the Class A Total Return, subject to a 7% Class A Hurdle Amount and a High-Water Mark, with a 50% Catch-Up; the Class I-S Performance Allocation entitles the Special Limited Partner to receive an allocation equal to 10.0% of the Class I-S Total Return, subject to a 7% Class I-S Hurdle Amount and a High-Water Mark, with a 50% Catch-Up; and the Class F Performance Allocation entitles the Special Limited Partner to receive an allocation equal to 6.25% of the Class F Total Return, subject to a 7% Class F Hurdle Amount and a High-Water Mark, with a 50% Catch-Up (as each of those terms is defined in the amended and restated limited partnership agreement of the Operating Partnership). Distributions on the Performance Allocation, Class A Performance Allocation, Class I-S Performance Allocation, and Class F Performance Allocation are payable in cash or Class E Units at the election of the Special Limited Partner.

The performance allocations are accrued on a monthly basis and are paid on an annual basis. During the six months ended June 30, 2025, the Company accrued $0.6 million of performance allocation. During the three months ended March 31, 2025, there was no performance allocation accrued.

During the six months ended June 30, 2024, there was no performance allocation accrued. During the three months ended June 30, 2024, the Company reversed the performance allocation amounting to $0.3 million, which was accrued during the three months ended March 31, 2024.

***Expense Reimbursements***

Except for the employees of CapGrow, the Company does not have any employees. Currently, the Adviser is responsible for the payroll costs and related expenses of the Adviser's personnel who are involved in the operation and management of the Company.

The Adviser is entitled to reimbursement of all costs and expenses incurred on behalf of the Company, which includes (a) organization and offering expenses (excluding upfront selling commissions and distribution fees), (b) professional fees for services obtained from third parties that directly relate to the management and operations of the Company, (c) expenses of managing and operating our properties, whether payable to an affiliate or a non-affiliated person, and (d) out-of-pocket expenses in connection with the selection and acquisition of properties and real estate debt, whether or not such investments are acquired. At both June 30, 2025 and December 31, 2024, the Company owed the Adviser less than $0.1 million for expenses paid on its behalf.

The Company began reimbursing organization and offering expenses incurred prior to the first anniversary of the commencement of the Offering ratably over 60 months commencing in the first month following the first anniversary of the date the Company commenced the Offering. Any additional organization and offering expenses incurred subsequently are reimbursed on a monthly basis. Commencing four fiscal quarters after the acquisition of CapGrow, the Company may not reimburse the Adviser at the end of any fiscal quarter for total operating expenses that in the four consecutive fiscal quarters then ended exceed the greater of: 2% of our "average invested assets" or 25% of the Company's "net income" (as defined in the advisory agreement) unless the independent directors determine that the excess expenses were justified based on such

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

factors that they deem sufficient. As of June 30, 2025 and December 31, 2024, the Company owed offering and organization costs of $2.6 million and $2.9 million, respectively.

***Employment Agreement***

At acquisition, CapGrow renewed the employment agreement with its chief executive officer, whose primary responsibility is to manage the day-to-day business and affairs of CapGrow, as directed by the Company. The employment agreement, which expires in January 2028, provides a minimum salary amount and a performance-based bonus. The total compensation costs were included in payroll costs on the condensed consolidated statements of operations.

A wholly-owned subsidiary of CapGrow JV has a performance bonus plan that allows its qualified employees to be entitled to a cash bonus at the end of the 5-year performance period ending January 3, 2028. The performance bonus is calculated at 2% of the hypothetical distributions to members of CapGrow JV after CapGrow Member would have received a certain IRR. As the hypothetical distributions are partly based on the fair market value of our investment at the end of the performance period, we determined that as of both June 30, 2025 and December 31, 2024, it is not probable to conclude that a liability will be incurred at January 3, 2028 and no bonus compensation has been accrued.

***Property Management Agreements***

Certain of the Company's investments are managed by the Company's joint venture partners and such joint venture partners' affiliates. They provide management, leasing, construction supervision and asset management services. These agreements typically provide for property and asset management fees based on either predetermined fees or fees as a percentage of the effective gross income generated by the respective asset. Fees for construction management are typically based on a percentage of costs incurred. Additionally, certain agreements require the Company to reimburse the property manager for any expenses incurred on its behalf.

During the three months ended June 30, 2025 and 2024, the total property and asset management fees which were included in property operating expenses in the condensed consolidated statements of operations, were $0.1 million and $0.1 million, respectively. During the six months ended June 30, 2025 and 2024, the total property and asset management fees amounted to $0.2 million and $0.1 million, respectively.

As of June 30, 2025 and December 31, 2024, the amounts due to affiliates under the property management agreements totaled to less than $0.1 million.

**12. FAIR VALUE MEASUREMENTS**

The Company is required to disclose fair value information regarding certain financial instruments, whether or not recognized at fair value in the condensed consolidated balance sheets, for which it is practical to estimate fair value. The FASB guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date (e.g., the exit price). The Company measures and/or discloses the estimated fair value of certain financial assets and liabilities based on a hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity's own assumptions about market participant assumptions. This hierarchy consists of three broad levels: Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date; Level 2 - inputs other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3 - unobservable inputs for the asset or liability that are used when little or no market data is available. The Company follows this hierarchy for our assets and liabilities measured at fair value on a recurring and nonrecurring basis. In instances in which 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 of input that is significant to the fair value measurement in its entirety. Our assessment of the significance of the particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.

***Valuation of Financial Instruments Measured at Fair Value***

From time to time, the Company may use derivative instruments, such as interest rate swaps or caps to manage or hedge interest rate risk. The Company hedges its exposure to variability in future cash flows for forecasted transactions in addition to anticipated future interest payments on its existing debt. The Company does not anticipate designating any of its derivative

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

financial instruments as hedges. As such, derivatives that are not hedges are adjusted to fair value through earnings. The valuation of these instruments is determined by a third-party service provider using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and utilizes observable market-based inputs, including interest rate curves and implied volatilities. The valuation of these derivatives is considered Level 2 within the fair value hierarchy.

As of June 30, 2025 and December 31, 2024, the Company has an interest rate cap agreement, which is used to manage the interest payments related to the mortgage payable held by University Courtyard. The fair value of this interest rate cap is presented as part of other assets in the condensed consolidated balance sheets.

During the three months ended June 30, 2025 and 2024, the Company recorded an unrealized loss on derivative instrument of $0.3 million and $0.1 million, respectively, which are included in unrealized gain (loss) on derivative instruments in our condensed consolidated statements of operations. During the six months ended June 30, 2025 and 2024, the Company recorded an unrealized loss on derivative instrument of $0.7 million and an unrealized gain of $0.1 million, respectively.

The following table summarizes the fair value, notional amount and other information related to this instrument as of June 30, 2025 and December 31, 2024, respectively:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Notional Value** | **Index** | **Strike Rate** | **Effective Date** | **Expiration Date** | **June 30, 2025** | **December 31, 2024** |
| Interest rate cap | $20880 | SOFR | 1% | October 2023 | November 2028 | $1613 | $2269 |
|  |  |  |  |  |  | $1613 | $2269 |

---

From time to time, the Company may invest in certain real estate-related debt investments, including preferred equity and debt securities, among others, which are recorded at fair value. The Company generally determines the fair value of its real estate debt investments utilizing third-party pricing service providers, who may use broker-dealer quotations, reported trades, or valuation estimates from their pricing models to determine the estimated price. The pricing service providers' models usually consider the attributes applicable for similar securities (e.g., credit rating, seniority), current market data, and estimated cash flows and incorporate deal collateral performance, such as prepayment speeds and default rates, as available. The valuation of our investments in CMBS is considered Level 2 within the fair value hierarchy.

As of March 31, 2025, the valuation of our investment in preferred equity, which was based on the purchase price, was considered Level 1 within the fair value hierarchy. The valuation of our investment in preferred equity was transferred to Level 3 within the fair value hierarchy as of June 30, 2025. During the three and six months ended June 30, 2025, the Company recorded no unrealized gain or loss related to this investment as the cost approximated the fair value.

The fair value of Level 3 preferred equity is determined primarily using discounted cash flow models and recent transaction pricing, adjusted for market conditions. The models incorporate significant unobservable inputs, including: (i) estimated cash flows and exit scenarios based on expected distributions and redemption rights; (ii) discount rates, reflecting credit risk and liquidity; (iii) estimated timing and probability of exit events; and (iv) subordination features or waterfall priority in capital structures. Because these inputs are based on judgment and assumptions that are not directly observable in the market, changes to these inputs could result in significantly different fair values. For example, increases in the discount rate or a delay in expected exit timing would reduce the fair value. Interrelationships among these assumptions (e.g., higher risk assumptions leading to lower expected exit proceeds) can magnify valuation sensitivity.

As of June 30, 2025, the valuation of the Company's investment in the junior mortgage loan in May 2025 is based on the purchase price of the investment.

***Valuation of Assets Measured at Fair Value on a Nonrecurring Basis***

When performing a business combination or asset acquisition, the Company is required to measure assets and liabilities at fair value as of the acquisition date consistent with ASC 805. The fair value of each property is determined primarily based on unobservable data inputs, which utilized market knowledge obtained from historical transactions and published market data. Any above- and below-market lease intangibles are derived (using a discount rate which reflects the risks associated with the lease acquired) based on the difference between contractual rent and market rent, measured over a period equal to the remaining term of each of the leases, including the renewal options for below market leases. In estimating in-place leases

------

**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

and deferred commissions, the Company uses estimates of its carry costs during hypothetical expected lease-up periods and costs to execute similar leases, which include estimates of lost rental income at market rates as well as leasing commissions. Debt is valued by a third-party appraiser, utilizing the discounted cash flow and inputs such as discount rate, prepayment speeds, general economic and industry trends, and is considered Level 3 within the fair value hierarchy.

Certain of the Company's assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments, such as when there is evidence of impairment, and therefore measured at fair value on a nonrecurring basis. The Company reviews its real estate properties for impairment each quarter or when there is an event or change in circumstances that could indicate the carrying amount of the real estate value may not be recoverable. The valuation methodologies used to value our real estate with indicators of impairment involve subjective judgments regarding such factors as comparable sales, rental revenue and operating expense data, known contingencies, the capitalization or discount rate, and projections of future rent and expenses based on appropriate analysis.

The Company recorded impairment losses in respect of the assets sold, held for sale properties and certain held for use properties where leases were terminated and/or are vacant, with expected sales proceeds to be lower than the carrying value of the properties. The fair value of these impaired assets is primarily based on the sale price pursuant to the binding executed contracts, list price or third-party estimated fair value less applicable estimated costs to sell, and are considered Level 3 within the fair value hierarchy. Refer to Note 3, "Investments in Real Estate," for additional disclosure relating to asset impairment.

***Valuation of Liabilities Not Measured at Fair Value***

The following table presents the carrying value and estimated fair value of our financial instruments that are not carried at fair value on the condensed consolidated balance sheets as of June 30, 2025 and December 31, 2024, respectively:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | **December 31, 2024** | **December 31, 2024** |
| | **Carrying Value**<sup>(1)</sup> | **Estimated Fair Value** | **Carrying Value**<sup>(1)</sup> | **Estimated Fair Value** |
| Mortgages and other loans payable | $219229 | $212182 | 229653 | 220631 |
| Revolving credit facility | 33545 | 33545 | 18233 | 18233 |
| Financing obligation, net | 23199 | 23200 | 23200 | 23200 |
|  | $275973 | $268927 | $271086 | $262064 |
| <sup>(1)</sup> The carrying value of these loans do not include unamortized debt issuance costs. | <sup>(1)</sup> The carrying value of these loans do not include unamortized debt issuance costs. | <sup>(1)</sup> The carrying value of these loans do not include unamortized debt issuance costs. |  |  |

---

The fair value of the Company's borrowings is estimated by modeling the cash flows required by our debt agreements and discounting them back to present value using the appropriate discount rate. Additionally, the Company considers current market rates and conditions by evaluating similar borrowing agreements with comparable loan-to-value ratios and credit profiles. These estimates are considered Level 3 within the fair value hierarchy.

**13. ECONOMIC DEPENDENCY**

The Company is dependent on the Adviser and its affiliates for certain services that are essential to it, including the sale of the Company's shares of common stock, acquisition and disposition decisions, and certain other responsibilities. In the event that the Adviser and its affiliates are unable to provide such services, the Company would be required to find alternative service providers.

**14. RENTAL INCOME**

The Company leases the CapGrow Portfolio to various companies who serve adults with behavioral health needs, primarily under triple-net lease agreements, with terms extending through June 2035. Under the terms of the triple-net lease agreements, tenants are responsible for the payment of all taxes, maintenance, repairs, insurance, environmental and other operating expenses relating to the residential and commercial real estate. Variable lease payments consist of tenant reimbursements and other fees such as late fees, among others. As of June 30, 2025, 45 subsidiaries of National Mentor Holdings, Inc., a Delaware corporation doing business as "Sevita," leased approximately 500 of the CapGrow Portfolio properties, representing 33% of the Company's total assets. As of December 31, 2024, 44 subsidiaries of National Mentor

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

Holdings, Inc. leased approximately 500 of CapGrow Portfolio properties, representing 36% of the Company's total assets. These leases accounted for 38% and 42% of the Company's total rental revenues for the six months ended June 30, 2025 and 2024, respectively. These leases had various expiration dates extending through June 2035.

There are no cross-default provisions among the leases with the subsidiaries of Sevita. Although Sevita is not a party to these leases, Sevita has entered into separate guarantee agreements with respect to 430 and 426 of CapGrow's properties as of June 30, 2025 and December 31, 2024, respectively (representing 29% and 31% of total assets, respectively).

During the three months ended June 30, 2025 and 2024, these properties represented 33% and 35% of the total rental revenues, respectively.

During the six months ended June 30, 2025 and 2024, rental revenue from these guaranteed properties represented 32% and 34% of the total rental revenues, respectively.

For both the three months ended June 30, 2025 and 2024, there were two tenants that each represented more than 5% of total rental income, which collectively represented 46% and 51% of the Company's rental revenue, respectively.

For both the six months ended June 30, 2025 and 2024, there were two tenants that each represented more than 5% of total rental income, which collectively represented 46% and 51% of the Company's rental revenue, respectively.

While this represents a significant concentration risk with regard to revenue, the credit risk associated with these tenants is mitigated since the payor stream is principally derived through Medicaid waivers. A majority of the CapGrow Portfolio is located in Minnesota, Texas, Ohio, Arizona, and Pennsylvania.

Leases at the Company's student housing and parking garage properties are generally rented under lease agreements with terms of one year or less, renewable on an annual or monthly basis. All of the leases related to the Company's student housing property as of June 30, 2025 expire on or before July 2025 as is customary for student housing where lease terms are generally based on the start of the academic year in the fall. Such leases generally provide for a fixed monthly rent during the lease term. The leases related to the Company's parking garage properties provide for a fixed monthly rent and variable lease payments based on a percentage of revenues in excess of a predetermined revenue threshold generated by the garages during the annual lease term.

As of June 30, 2025, the future minimum rent to be received over the next five years and thereafter for noncancellable operating leases are as follows:

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| | |
|:---|:---|
| **Year Ending** | |
| December 31, 2025 (six months) | $17628 |
| December 31, 2026 | 32111 |
| December 31, 2027 | 25187 |
| December 31, 2028 | 14989 |
| December 31, 2029 | 12689 |
| Thereafter | 18021 |
|  | $120625 |

---

The components of lease income from operating leases are as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2024** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2024** |
| Fixed lease payments | $11329 | $10691 | 23065 | 21603 |
| Variable lease payments | 72 | 48 | 153 | 87 |
| Total | $11401 | $10739 | $23218 | $21690 |

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

**15. COMMITMENTS AND CONTINGENCIES**

***Office Lease***

CapGrow leases its office space from a third party under an operating lease, which expires in February 2028.

During the three months ended June 30, 2025 and 2024, and six months ended June 30, 2025 and 2024 rent expense, which is included in general and administrative in the condensed consolidated statements of operations, was less than $0.1 million for each period.

The following table reflects the future minimum lease payments as of June 30, 2025 (in thousands):

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| | |
|:---|:---|
| **Year Ending** | |
| December 31, 2025 (six months) | $39 |
| December 31, 2026 | 80 |
| December 31, 2027 | 82 |
| December 31, 2028 | 14 |
| December 31, 2029 |  |
| Total minimum lease payments | 215 |
| Imputed interest | (10) |
| Total operating lease liabilities | $205 |

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***Legal Matters***

The Company is not involved in any material litigation nor, to management's knowledge, was any material litigation threatened against the Company which if adversely determined could have a material adverse impact on the Company other than routine litigation arising in the ordinary course of business.

***Environmental Matters***

As an owner of real estate, the Company is subject to various environmental laws of federal, state, and local governments. The Company's compliance with existing laws has not had a material adverse effect on its financial condition and results of operations, and the Company does not believe it will have a material adverse effect in the future. However, the Company cannot predict the impact of unforeseen environmental contingencies or new or changed laws or regulations on its current properties or on properties that the Company may acquire.

**16. SEGMENT REPORTING**

The Company operates in four reportable segments as of June 30, 2025: Residential (Business), Student Housing, Commercial Properties, and Investments in Real Estate Debt. Prior to the acquisition of preferred equity interests and the two parking garage properties in March 2025 and the investment in the junior mortgage loan in May 2025, the Company operated in two reportable segments.

The following table details the total assets by segment ($ in thousands):

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| | | |
|:---|:---|:---|
| | **June 30, 2025** | **December 31, 2024** |
| Residential (Business) | $507532 | $494852 |
| Student Housing | 57007 | 58783 |
| Commercial Properties | 8468 |  |
| Investments in Real Estate Debt | 60766 | 7985 |
| Other (Corporate) | 28089 | 47392 |
| Total assets | $661862 | $609012 |

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

The following table details the financial results of operations by segment for the three and six months ended June 30, 2025 and 2024 ($ in thousands):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
| | **Residential<br>(Business)** | **Student Housing** | **Commercial Properties** | **Investments in Real Estate Debt** | **Other (Corporate)** | **Total** |
| **Revenues** | | | | | | |
| Rental revenue | $9458 | $1645 | $298 | $— | $— | $11401 |
| Other revenue | 205 | 219 |  |  |  | 424 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 9663 | 1864 | 298 |  |  | 11825 |
| **Expenses** |  |  |  |  |  |  |
| Property operating expenses | 404 | 796 | 47 |  |  | 1247 |
| General and administrative | 1041 | 209 | 7 |  | 1086 | 2343 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 1445 | 1005 | 54 |  | 1086 | 3590 |
| Segment net operating income (loss) | $8218 | $859 | $244 | $— | $(1086) | $8235 |
| Income from an unconsolidated joint venture | 29 |  |  |  |  | 29 |
| Income from investments in real estate debt, net |  |  |  | 1783 |  | 1783 |
| Gain on sale of real estate | 218 |  |  |  |  | 218 |
| Interest expense, net | (2993) | (483) |  |  | 247 | (3229) |
| Impairment of investments in real estate | (1160) |  |  |  |  | (1160) |
| GAAP segment income (loss) | $4312 | $376 | $244 | $1783 | $(839) | $5876 |
| Other segment income (expense)<sup>(1)</sup> | (4223) | (814) | (170) |  | (1087) | (6294) |
| **Net income (loss)** | 89 | (438) | 74 | 1783 | (1926) | (418) |
| Net loss (income) attributable to non-controlling interest in the consolidated subsidiaries | (7) | 44 | (11) |  |  | 26 |
| Net loss (income) attributable to non-controlling interest in the Operating Partnership |  |  |  |  | (4) | (4) |
| **Net income (loss) attributable to SDREIT stockholders** | $82 | $(394) | $63 | $1783 | $(1930) | $(396) |
| _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees and performance participation allocation. |

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
| | **Residential<br>(Business)** | **Student Housing** | **Commercial Properties** | **Investments in Real Estate Debt** | **Other (Corporate)** | **Total** |
| **Revenues** | | | | | | |
| Rental revenue | $9127 | $1612 | $— | $— | $— | $10739 |
| Other revenue | 43 | 229 |  |  |  | 272 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 9170 | 1841 |  |  |  | 11011 |
| **Expenses** |  |  |  |  |  |  |
| Property operating expenses | 239 | 802 |  |  |  | 1041 |
| General and administrative | 853 | 229 |  |  | 1045 | 2127 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 1092 | 1031 |  |  | 1045 | 3168 |
| Segment net operating income (loss) | 8078 | 810 |  |  | (1045) | 7843 |
| Income from an unconsolidated joint venture | 18 |  |  |  |  | 18 |
| Income from investments in real estate debt, net |  |  |  |  |  |  |
| Gain (loss) on sale of real estate | 34 |  |  |  |  | 34 |
| Interest expense, net | (2806) | (476) |  |  | 269 | (3013) |
| Impairment of investments in real estate | (518) | (62) |  |  |  | (580) |
| GAAP segment income (loss) | $4806 | $272 | $— | $— | $(776) | $4302 |
| Other segment income (expense)<sup>(1)</sup> | (4124) | (2281) |  |  | (33) | (6438) |
| **Net income (loss)** | 682 | (2009) |  |  | (809) | (2136) |
| Net (income) loss attributable to non-controlling interest in the consolidated subsidiaries | (134) | 201 |  |  |  | 67 |
| Net (income) loss attributable to non-controlling interest in the Operating Partnership |  |  |  |  | 16 | 16 |
| **Net income (loss) attributable to SDREIT stockholders** | $548 | $(1808) | $— | $— | $(793) | $(2053) |
| _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. |

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **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** | **Six Months Ended June 30, 2025** |
| | **Residential<br>(Business)** | **Student Housing** | **Commercial Properties** | **Investments in Real Estate Debt** | **Other (Corporate)** | **Total** |
| **Revenues** | | | | | | |
| Rental revenue | $19574 | $3304 | $340 | $— | $— | $23218 |
| Other revenue | 381 | 442 |  |  |  | 823 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 19955 | 3746 | 340 |  |  | 24041 |
| **Expenses** |  |  |  |  |  |  |
| Property operating expenses | 741 | 1562 | 51 |  |  | 2354 |
| General and administrative | 2142 | 396 | 21 | 233 | 2036 | 4828 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 2883 | 1958 | 72 | 233 | 2036 | 7182 |
| Segment net operating income (loss) | 17072 | 1788 | 268 | (233) | (2036) | 16859 |
| Income from an unconsolidated joint venture | 59 |  |  |  |  | 59 |
| Income from investments in real estate debt, net |  |  |  | 2599 |  | 2599 |
| Gain (loss) on sale of real estate | 236 |  |  |  |  | 236 |
| Interest expense, net | (5938) | (963) |  |  | 651 | (6250) |
| Impairment of investments in real estate | (1913) |  |  |  |  | (1913) |
| GAAP segment income (loss) | $9516 | $825 | $268 | $2366 | $(1385) | $11590 |
| Other segment income (expense)<sup>(1)</sup> | (8823) | (1730) | (196) |  | (1520) | (12269) |
| **Net income (loss)** | 693 | (905) | 72 | 2366 | (2905) | (679) |
| Net (income) loss attributable to non-controlling interest in the consolidated subsidiaries | (51) | 91 | (11) |  |  | 29 |
| Net (income) loss attributable to non-controlling interest in the Operating Partnership |  |  |  |  | (5) | (5) |
| **Net income (loss) attributable to SDREIT stockholders** | $642 | $(814) | $61 | $2366 | $(2910) | $(655) |
| _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. |

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **Residential<br>(Business)** | **Student Housing** | **Commercial Properties** | **Investments in Real Estate Debt** | **Other (Corporate)** | **Total** |
| **Revenues** | | | | | | |
| Rental revenue | $18449 | $3241 | $— | $— | $— | $21690 |
| Other revenue | 100 | 456 |  |  |  | 556 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 18549 | 3697 |  |  |  | 22246 |
| **Expenses** |  |  |  |  |  |  |
| Property operating expenses | 458 | 1565 |  |  |  | 2023 |
| General and administrative | 1708 | 394 |  |  | 2148 | 4250 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 2166 | 1959 |  |  | 2148 | 6273 |
| Segment net operating income (loss) | 16383 | 1738 |  |  | (2148) | 15973 |
| Income from an unconsolidated joint venture | 10 |  |  |  |  | 10 |
| Gain (loss) on sale of real estate | 34 |  |  |  |  | 34 |
| Interest expense, net | (5549) | (953) |  |  | 451 | (6051) |
| Impairment of investments in real estate | (960) | (62) |  |  |  | (1022) |
| GAAP segment income (loss) | $9918 | $723 | $— | $— | $(1697) | $8944 |
| Other segment income (expense)<sup>(1)</sup> | (8367) | (4401) |  |  | (620) | (13388) |
| **Net income (loss)** | 1551 | (3678) |  |  | (2317) | (4444) |
| Net (income) loss attributable to non-controlling interest in the consolidated subsidiaries | (307) | 368 |  |  |  | 61 |
| Net (income) loss attributable to non-controlling interest in the Operating Partnership |  |  |  |  | 29 | 29 |
| **Net income (loss) attributable to SDREIT stockholders** | $1244 | $(3310) | $— | $— | $(2288) | $(4354) |
| _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses not key to CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as corporate expenses, including management fees, and performance participation allocation. |

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**17. SUBSEQUENT EVENTS**

***Private Placement Offerin****g*

Subsequent to June 30, 2025, the Company issued the following shares at aggregate gross proceeds of $14.6 million.

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| | | |
|:---|:---|:---|
| | **Number of Shares Issued** | **Gross Proceeds** |
| Class E Shares<sup>(1)</sup> | 29058 | $315 |
| Class AA Shares<sup>(2)</sup> | 1342128 | 14317 |
| Total | 1371186 | $14632 |

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_______________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Class E shares were issued to Sculptor Advisors LLC as payment for accrued management fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(2)</sup> Includes sales load fees of $0.2 million for Class AA Shares.

***Distributions***

The following table summarizes the Company's distributions per share as declared and paid or payable (net of distribution fees) to stockholders subsequent to June 30, 2025:

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**Sculptor Diversified Real Estate Income Trust, Inc.**

**Notes to the Condensed Consolidated Financial Statements (Unaudited)**

**(in thousands, except share and per share data)**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Declaration Date** | **Record Date** | **Class F Shares** | **Class FF Shares** | **Class E Shares** | **Class AA Shares** | **Class A Shares** | **Class I-S Shares** | **Payment Date** |
| June 30, 2025 | June 30, 2025 | $0.0621 | $0.0578 | $0.0621 | $0.0578 | $0.0621 | $0.0621 | July 11, 2025 |
| July 31, 2025 | July 31, 2025 | $0.0620 | $0.0575 | $0.0620 | $0.0575 | $0.0620 | $0.0620 | August 12, 2025 |

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**ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

*References herein to "Sculptor Diversified Real Estate Income Trust," "SDREIT," the "Company," "we," "us," or "our" refer to Sculptor Diversified Real Estate Income Trust, Inc., a Maryland corporation, and its subsidiaries including Sculptor Diversified REIT Operating Partnership LP, a Delaware limited partnership, which we refer to herein as the "Operating Partnership" unless the context specifically requires otherwise.*

The following discussion should be read in conjunction with our unaudited condensed consolidated financial statements and the accompanying notes to our unaudited condensed consolidated financial statements, which are included in Item 1 of this Quarterly Report, as well as the information contained in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC").

**Forward-Looking Statements**

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward-looking terminology such as "believe," "expect," "anticipate," "estimate," "plan," "continue," "intend," "should," "may" or similar expressions, or the negatives thereof. These may include our financial projections and estimates and their underlying assumptions, statements about plans, objectives and expectations with respect to future operations, statements with respect to acquisitions, statements regarding future performance and statements regarding identified but not yet closed acquisitions. Such forward-looking statements are inherently uncertain and there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this. Except as otherwise required by federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

**Overview**

Sculptor Diversified Real Estate Income Trust invests primarily in stabilized income-generating commercial real estate across a variety of both traditional and non-traditional sectors in the U.S. and Europe, and to a lesser extent, invests in real estate related securities. The Company is the sole general partner and a limited partner of Sculptor Diversified REIT Operating Partnership LP (the "Operating Partnership"), and we own substantially all of our assets through the Operating Partnership.

The Company was formed on February 11, 2022 ("Inception") as a Maryland corporation and has operated and elected to be treated as a real estate investment trust ("REIT") for U.S. federal income tax purposes commencing with the taxable year ended December 31, 2023. We generally are not subject to U.S. federal income taxes on our taxable income to the extent we annually distribute all of our net taxable income to shareholders and maintain our qualification as a REIT.

The Company and the Operating Partnership are externally managed by our adviser, Sculptor Advisors LLC (in its capacity as our adviser, the "Adviser"), a Delaware limited liability company and a registered investment adviser. Our Adviser is an affiliate of Sculptor Capital Management, Inc. (together with its affiliates, "Sculptor"). Sculptor Diversified REIT Special Limited Partner LP (the "Special Limited Partner"), an affiliate of the Adviser, owns a special limited partner interest in the Operating Partnership.

The Company's board of directors has at all times oversight and policy-making authority over us, including responsibility for governance, financial controls, compliance and disclosure. Pursuant to an advisory agreement, the Company has delegated to the Adviser the authority to source, evaluate and monitor our investment opportunities and make decisions related to the acquisition, management, financing and disposition of our assets, in accordance with our investment objectives, guidelines, policies and limitations, subject to oversight by our board of directors.

As of June 30, 2025, the Company, through its wholly-owned subsidiary, CapGrow Holdings Member, LLC (the "CapGrow Member"), owns a 93.20% controlling interest in CapGrow Holdings JV LLC (the "CapGrow JV", and together with CapGrow Member, "CapGrow"), which owns a portfolio of primarily single-family homes (the "CapGrow Portfolio") leased to and operated by care providers that serve individuals with intellectual and developmental disabilities. In addition, the Company, through a 90.0% owned joint venture (such join venture, the "Denton JV"), owns a 240-unit, 792-bed student housing property ("University Courtyard") located in Denton, Texas.

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On February 23, 2024, CapGrow, CapGrow's founder and CapGrow Neptune Investor LLC, an affiliate of Sculptor, formed a joint-venture, CapGrow Neptune JV LLC (the "Neptune JV"), and closed on the acquisition of a portfolio of 33 single-family residences and intermediate care facilities located in California and Minnesota (the "Neptune Portfolio").

On March 18, 2025, the Company, through an 85.10% owned joint venture (such joint venture, the "Parking JV"), closed on the acquisition of two parking garage properties located in Rochester, New York, totaling 564,990 square feet and containing 2,250 stalls. Concurrent with the acquisition, leases were entered into with a national parking operator for both garages.

From time to time, the Company acquires, originates, or enters into interests in real estate debt, such as commercial mortgage backed securities ("CMBS"), loans, and/or preferred equity investments. As of June 30, 2025, investments in real estate debt consists of an investment in preferred equity in a real estate company that owns 65 net-leased veterinary hospitals and clinics (the "Veterinary Real Estate Company"), an investment in a junior mortgage loan collateralized by a casino and hotel property and investments in CMBS.

See "Investment Portfolio" below for additional information on these investments.

**Current Market Conditions and Related Risks and Opportunities**

The Company's business is materially affected by conditions in the financial markets and economic conditions in the U.S. and to a lesser extent, elsewhere in the world (including as a result the 2024 U.S. presidential and congressional elections and resulting uncertainties regarding actual and potential shifts in U.S. and foreign, trade, economic, tax and other policies, including with respect to treaties and tariffs). High interest rates and a reduction in the availability of financing, especially from banks, has led to greater spreads between the prices sought by sellers and buyers, which may adversely affect the value of our real estate assets. However, given that we are seeking to raise and invest substantial equity capital, we believe that market stresses could lead to attractive acquisition opportunities. While higher interest rates make financing more expensive, CapGrow has the benefit of having previously locked in all of its mortgage loans at favorable fixed interest rates, which represented approximately 72% of our total debt obligations. Also, we have a five-year interest rate protection agreement which caps University Courtyard's mortgage at a fixed interest rate of 3.56% through November 2028. The only variable rate loan that is indexed to SOFR is CapGrow's revolving credit facility, which had a balance of $33.5 million as of June 30, 2025. A 100 basis point increase or decrease in SOFR would have resulted in an increase or decrease in interest expense of approximately $0.1 million during the six months ended June 30, 2025. See "Liquidity and Capital Resources — Capital Resources" below. With respect to the Veterinary Real Estate Company, the Veterinary Real Estate Company has a senior loan facility with a variable rate loan that is indexed to SOFR. In general, higher interest expenses will increase CapGrow's and the Veterinary Real Estate Company's financing costs associated with existing and newly acquired homes and facilities and are also likely to adversely affect the financial performance of CapGrow's and the Veterinary Real Estate Company's tenants, which could adversely affect our results of operation and financial condition. The senior loan ahead of our junior mortgage loan collateralized by the casino and hotel property is a variable rate loan. An increase in interest rates may limit the cash flow available to pay our junior mortgage loan.

High interest rates will also increase the federal government's interest payments and contribute to growing federal deficits, which deficits may lead to efforts to cut federal spending. Such efforts could result in lower Medicaid expenditures, on which CapGrow's lessees and tenants rely. In addition, inflation, which has been pronounced over the last 2.5 years, may result in higher general and administrative expenses for our Company and for our tenants. Insurance costs in certain markets have increased more than inflation due to property locations in high risk markets, increased claims due to natural disasters, higher property replacement costs, and fewer insurers serving high risk markets. Further, state and local governments may also look to increase real estate taxes and other related fees in order to offset lower revenues from other sources. While CapGrow's and the Veterinary Real Estate Company's leases are triple net or modified net, high insurance costs and real estate taxes may result in higher overall occupancy expenses for tenants, as well as for the Company's assets for which the Company is responsible to pay these costs.

Changes in the presidential administration in the U.S. may result in changes, reductions, or cancellation of government programs and fundings which may directly or indirectly impact CapGrow's tenants and lessees. Changes in the financing programs previously available through Freddie Mac for CapGrow may impact the availability and cost of future financings and refinancings. Government programs and fundings for universities and their students may also be changed, reduced, or cancelled which may directly or indirectly affect University Courtyard's tenants.

Investing in commercial real estate assets also involves certain risks, including but not limited to tenants' inability to pay rent (whether due to property-specific factors, company-specific factors, sector-level issues, or broader macroeconomic

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conditions), increases in interest rates and lack of availability of financing, tenant turnover and vacancies and changes in supply of or demand for similar properties in a given market. Any negative changes in these factors could affect the Company's performance and our ability to meet our obligations and make distributions to shareholders.

**Q2 2025 Highlights**

***Operating Results***

• We declared monthly distributions totaling $6.4 million for the three months ended June 30, 2025. During the three months ended June 30, 2025, our investments produced operating earnings and distributions that contributed to our total return. The details of the annualized distribution rate and total returns are shown in the following table:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Class F** | **Class FF** | **Class E** | **Class AA** | **Class A** | **Class I-S** |
| First issuance date | 12/27/2022 | 5/1/2023 | 12/1/2023 | 2/1/2024 | 8/1/2024 | 2/1/2025 |
| Annualized Distribution Rate<sup>(1)</sup> | 6.97% | 6.59% | 6.88% | 6.57% | 7.14% | 7.17% |
| Year-to-Date Total Return, without upfront selling commissions<sup>(2)</sup> | 3.61% | 3.36% | 4.36% | 3.50% | 3.91% | 2.89% |
| Year-to-Date Total Return, assuming maximum upfront selling commissions<sup>(2)(3)</sup> | 1.54% | 1.28% | 4.36% | 1.42% | 1.84% | 0.84% |
| Inception-to-Date Total Return, without upfront selling commissions<sup>(2)</sup> | 9.48% | 7.46% | 7.42% | 5.38% | 4.02% | 2.89% |
| Inception-to-Date Total Return, assuming maximum upfront selling commissions<sup>(2)(3)</sup> | 8.60% | 6.47% | 7.42% | 3.89% | 1.95% | 0.84% |

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____________________________________________________________________________

(1) The annualized distribution rate is calculated as the June distribution annualized and divided by the prior month's net asset value, which is inclusive of all fees and expenses.

(2) Total return is calculated as the change in NAV per share during the respective periods plus any distributions per share declared in the period and assumes any distributions are reinvested in accordance with our distribution reinvestment plan. Total return for periods greater than one year are annualized. Class E shares are not subject to any upfront selling commissions.

(3) There were no selling commissions charged in respect of the Class F, Class A, Class I-S, and E shares.

***Investments***

• We acquired 44 vacant homes through CapGrow at an aggregate purchase price of $19.1 million during the three months ended June 30, 2025, which were leased to tenants following their acquisition.

• We sold 11 CapGrow homes for aggregate net proceeds of $3.8 million during the three months ended June 30, 2025.

• We closed on a $17.0 million junior mortgage loan collateralized by a casino and hotel property located in Las Vegas, Nevada that accrues interest at a rate of SOFR + 7.50% with a SOFR floor of 3.00%..

***Capital and Financing Activities***

• During the three months ended June 30, 2025, we raised an aggregate of $34.2 million of gross proceeds from the sale of our common shares, including proceeds from our distribution reinvestment plan, and repurchased common shares for $0.2 million.

• CapGrow incurred net additional borrowings of $11.9 million from the revolving credit facility to partly fund CapGrow's asset acquisitions during the three months ended June 30, 2025.

• CapGrow repaid $3.6 million of its mortgage loans as part of its scheduled debt service payments and asset sales during the three months ended June 30, 2025.

**Subsequent Event Highlights**

• Subsequent to June 30, 2025, we raised aggregate gross proceeds of $14.6 million from the sale of our common shares.

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**Investment Portfolio**

*Summary of Portfolio*

*Investments in Real Estate*

The following table provides a summary of our investments in real estate as of June 30, 2025:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Property Type** | **Number of Properties** <sup>(1)</sup> | **Sq. Feet / Units/ Beds / Homes** | **Occupancy Rate**<sup>(2)</sup> | **Average Effective Annualized Base Rent**<br>**Per Leased Square**<br>**Foot/Unit/Key**<sup>(3)</sup> | **Gross Asset Value ($ in thousands)** <sup>(4)</sup> | **Segment Revenue ($ in thousands)** <sup>(5)</sup> | **Percentage of Total Segment Revenue** |
| Residential (Business)<sup>(6)</sup> | N/A | 1,122 units | 97% | $31528 | $516871 | $19955 | 83% |
| Student Housing | 1 | 792 beds | 94% | $8261 | 70800 | 3746 | 16% |
| Commercial Properties | 2 | 564,990 sq ft | 100% | $0.18 | 8700 | 340 | 1% |
| Total | 3 |  |  |  | $596371 | $24041 | 100% |

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_______________________________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;Single family homes are accounted for in the number of units and are not reflected in the number of properties.

(2)&nbsp;&nbsp;&nbsp;&nbsp;For single family rental properties, occupancy is defined as the percentage of occupied homes as of June 30, 2025. For student housing, occupancy is defined as the percentage of occupied beds as of June 30, 2025. There are leases in place with a national parking operator for both parking garages as of June 30, 2025.

(3)&nbsp;&nbsp;&nbsp;&nbsp;Average effective annualized base rent represents the annualized base rent for the three months ended June 30, 2025 per leased unit, bed, or square foot, and excludes tenant recoveries, straight line rent, variable rent, and above-market and below-market lease amortization.

(4)&nbsp;&nbsp;&nbsp;&nbsp;Based on fair value as of June 30, 2025.

(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment revenue is presented for the six months ended June 30, 2025.

(6) &nbsp;&nbsp;&nbsp;&nbsp;Under the business combination, CapGrow was acquired as a business. CapGrow owns primarily single family homes across the United States with a total square footage of 2.6 million.

The following table provides additional information regarding our portfolio of real estate as of June 30, 2025:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Segment and Investment** | **Number of Properties** | **Location** | **Acquisition Date(s)** | **Ownership Interest**<sup>(1)</sup> | **Purchase Price ($ in thousands)** | **Sq. Feet / Units/ Beds / Homes / Square Feet** |
| <u>Business:</u> |  |  |  |  |  |  |
| CapGrow<sup>(2)(3)</sup> | N/A | Various | January, July and October 2023 and December 2024 | 93.20% | $455000 | 1,122 units |
| <u>Student Housing:</u> |  |  |  |  |  |  |
| University Courtyard | 1 | Texas | October 2023 | 90.00% | 58000 | 792 beds |
| <u>Commercial properties:</u> |  |  |  |  |  |  |
| Rochester garages | 2 | New York | March 2025 | 85.10% | 8500 | 564,990 sq ft |
| Total | 3 |  |  |  | $521500 |  |

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______________________________________________

(1)&nbsp;&nbsp;&nbsp;&nbsp;Ownership interest as June 30, 2025. Certain of the joint venture agreements entered into by us provide the other partner a profits interest based on certain internal rate of return hurdles being achieved. Such investments are consolidated by us and any interests due to the other partner will be reported within non-controlling interests in consolidated joint ventures on our condensed consolidated balance sheets.

(2)&nbsp;&nbsp;&nbsp;&nbsp;As of June 30, 2025, the Company owned a 93.20% effective equity interest in CapGrow JV.

(3)&nbsp;&nbsp;&nbsp;&nbsp;Purchase price represents the total enterprise value at the initial acquisition date of January 4, 2023.

*Lease Expirations*

The following table details the expiring leases at our real estate properties by annualized base rent and square footage as of June 30, 2025 (amounts and square feet data in thousands). The table below excludes our student housing and parking garage properties as substantially all of their leases expire in or within 12 months:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year** | **Number of Expiring Leases** | **Annualized Base Rent**<sup>(1)</sup> | **% of Total Annualized Base Rent Expiring** | **Square Feet** | **% of Total Square Feet Expiring** |
| 2025 (six months) | 41 | $875 | 3% | 80 | 3% |
| 2026 | 155 | 4457 | 13% | 387 | 15% |
| 2027 | 486 | 12901 | 38% | 976 | 39% |
| 2028 | 73 | 3065 | 9% | 177 | 7% |
| 2029 | 110 | 3160 | 9% | 220 | 9% |
| 2030 | 156 | 4360 | 13% | 338 | 14% |
| 2031 | 25 | 1594 | 5% | 99 | 4% |
| 2032 | 16 | 2449 | 7% | 139 | 6% |
| 2033 | 3 | 93 | —% | 8 | —% |
| 2034 | 14 | 850 | 2% | 52 | 2% |
| Thereafter | 4 | 341 | 1% | 25 | 1% |
| Total | 1083 | $34145 | 100% | 2501 | 100% |

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______________________________________________________

<sup>(1)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Annualized base rent represents the amount of lease revenue that our portfolio would have generated in monthly contractual rent under existing leases as of June 30, 2025 multiplied by 12. The Company had not entered into any tenant concessions or rent abatements as of June 30, 2025. Amount excludes tenant recoveries, straight-line rent, and above-market and below-market lease amortization

***Tenant Concentration in CapGrow***

While CapGrow currently leases properties to 46 different care providers, there are two that each represent more than 5% of the Company's total rental income, and collectively, the leases on the properties with these tenants contributed approximately 46% of the Company's rental income for the six months ended June 30, 2025. National Mentor Holdings, Inc., a Delaware corporation doing business as "Sevita," is the largest home-based care provider serving individuals with intellectual and developmental disabilities in the country. As of June 30, 2025, there are 45 separate subsidiaries of Sevita that have leased 500 of CapGrow's properties, none of which contain cross-default provisions within the leases. Such leases in the aggregate represent approximately 38% of the Company's rental income for the six months ended June 30, 2025, and 33% of the Company's total assets as of June 30, 2025. Although Sevita is not a party to these leases, Sevita has entered into separate guarantees with respect to leases by its subsidiaries for 430 of CapGrow's properties, which represents approximately 32% of the Company's rental income for the six months ended June 30, 2025, and 29% of the Company's total assets as of June 30, 2025. Accordingly, Sevita has guaranteed a significant concentration of our revenue. Sufficiently adverse developments with respect to the business of such subsidiaries and/or Sevita that result in them not being able to honor their lease obligations, or such that Sevita could not honor its many separate guarantees, would likely have a greater adverse impact on our results of operation and financial condition than would otherwise be the case without this concentration of risk.

Sevita's audited financial statements for its fiscal years ended September 30, 2024 and 2023 are available at Exhibit 99.1 to our Annual Report on Form 10-K for the year ended December 31, 2024. We rely on certain third parties (including Sevita) to provide us with accurate financial statements and other financial information necessary for our financial reporting and compliance obligations. We did not independently verify the financial information provided to us by Sevita. There is a risk that we may not receive such financial information from these third parties in a timely manner, or at all, in the next fiscal

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year. Any failure by these third parties to provide required accurate financial information could delay our ability to meet our financial reporting obligations, hinder our decision-making processes, and impair our ability to provide accurate and timely disclosures to our investors. In such circumstances, we may also be unable to accurately assess our financial position or results of operations, which could result in negative consequences for our business, including potential regulatory actions or harm to our reputation.

Generally, there are individual leases on each owned property, so the risk of an individual lease expiring or otherwise being terminated would not have a significant impact on CapGrow's business or the overall revenues earned by the Company. Additionally, CapGrow has experienced a very strong lease renewal rate with its tenants renewing 82% of expiring leases cumulatively from 2012 through June 2025. When assessing the financial position of a tenant, the Company is focused on the ability of the tenant to make rental payments underlying the lease. For existing tenants, this includes their track record of making timely payments, their source of funding (e.g., Medicaid), and to a lesser extent, information that can be gleaned from a review of their financial statements. Much of the tenant credit risk is mitigated since the payor stream is principally derived through Medicaid waivers. We believe that Medicaid's involvement in the payor stream has contributed to a long-term and consistent collection record of rent payments, with CapGrow experiencing no defaults by any of our four largest tenants. Moreover, even if a default occurred, CapGrow's experience suggests that states would generally find a new provider for those in our homes rather than displace the residents.

*Investments in Real Estate Debt*

The following table details our investments in real estate debt as of June 30, 2025 (in thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| |<br>**Coupon** |<br>**Maturity Date** | **Face Amount**<sup>(1)</sup> | **Cost Basis**<sup>(1)</sup> | **Fair Value** |
| Preferred equity | 12.25%<sup>(2)</sup> | N/A<sup>(3)</sup> | $35596 | $35596 | $35596 |
| Junior mortgage loan | SOFR + 7.50% <sup>(4)</sup> | May 5, 2030 | 17000 | 17000 | 17000 |
| CMBS - floating | 1M SOFR + 2.941% | January 2030 | 8000 | 7980 | 7966 |
|  |  |  | $60596 | $60576 | $60562 |

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_______________________________________

<sup>(1)</sup> Investment in preferred equity includes original stated balance of $35.0 million plus paid-in-kind interest as of June 30, 2025.

<sup>(2)</sup> Interest accrues monthly with a current pay rate of 7.00% and a deferred interest rate of 5.25% through March 2030, after which the current pay rate increases to 12.00% and the deferred interest rate remains at 5.25% until the preferred units are fully redeemed, including accrued interest.

<sup>(3)</sup> The Company's preferred equity investment does not contain a stated maturity date. The Company has the right to cause the issuer to market and sell assets sufficient to redeem all remaining preferred units, including accrued interest, beginning in March 2031.

<sup>(4)</sup> Interest accrues monthly at a rate of SOFR+ 7.50% with a SOFR floor of 3.00%.

**Results of Operations**

***Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024***

The following table sets forth information regarding the condensed consolidated results of operations for the three months ended June 30, 2025 and 2024(amounts in thousands):

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | |
| | **2025** | **2024** |<br>**Change** |
| **Revenues** |  |  |  |
| Rental revenue | $11401 | $10739 | $662 |
| Other revenue | 424 | 272 | 152 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 11825 | 11011 | 814 |
| **Expenses** |  |  |  |

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | |
| | **2025** | **2024** |<br>**Change** |
| Property operating expenses | 1247 | 1041 | 206 |
| Management fees | 465 | 318 | 147 |
| Performance participation allocation | 623 | (285) | 908 |
| General and administrative | 2343 | 2127 | 216 |
| Depreciation and amortization | 4931 | 6344 | (1413) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 9609 | 9545 | 64 |
| Operating income | 2216 | 1466 | 750 |
| **Other income (expense):** |  |  |  |
| Interest expense, net | (3229) | (3013) | (216) |
| Impairment of investments in real estate | (1160) | (580) | (580) |
| Income from investments in real estate debt, net | 1783 |  | 1783 |
| Income (loss) from an unconsolidated entity | 29 | 18 | 11 |
| Unrealized gain (loss) on derivative instruments | (275) | (61) | (214) |
| Gain on sale of real estate | 218 | 34 | 184 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (2634) | (3602) | 968 |
| **Net income (loss)**  | $(418) | $(2136) | $1718 |
| Net (loss) income attributable to non-controlling interest in the consolidated subsidiaries | 26 | 67 |  |
| Net (loss) income attributable to non-controlling interest in the Operating Partnership | (4) | 16 |  |
| **Net loss attributable to SDREIT stockholders** | $(396) | $(2053) |  |
| **Net loss per common share - basic and diluted** | $(0.01) | $(0.09) |  |
| **Weighted-average common shares outstanding - basic and diluted** | 35373992 | 23225630 |  |

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***Rental Revenue***

Rental revenue from property operations increased by $0.7 million from $10.7 million during the three months ended June 30, 2024 to $11.4 million during the three months ended June 30, 2025, which was primarily due to rental income of $0.3 million generated from the parking garages acquired in March 2025 and higher rental income generated from both CapGrow and Denton.

***Other Revenue***

Other revenue increased by $0.2 million from $0.3 million during the three months ended June 30, 2024 to $0.4 million during the three months ended June 30, 2025, which was primarily due to an increase in lease termination income income and late fee income at CapGrow.

***Property Operating Expenses***

Property operating expenses increased by $0.2 million from $1.0 million during the three months ended June 30, 2024 to $1.2 million during the three months ended June 30, 2025 primarily due to the acquisition of the parking garages in March 2025 and increases in real estate taxes and repairs and maintenance expenses at CapGrow.

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***Management Fees***

Management fees increased by $0.1 million from $0.3 million during the three months ended June 30, 2024 to $0.5 million for the three months ended June 30, 2025. The increase was due to the higher net asset value of the Company, which was primarily driven by additional equity raised.

***Performance Participation Allocation***

During the three months ended June 30, 2025, we accrued $0.6 million of performance participation allocation as a result of meeting the performance metrics that would result in such participation allocation as of June 30, 2025. During the three months ended June 30, 2024, we reversed the accrued performance participation allocation of $0.3 million accrued during the three months ended March 31, 2024.

***General and Administrative Expenses***

General and administrative expenses increased by $0.2 million from $2.1 million during the three months ended June 30, 2024 to $2.3 million for the three months ended June 30, 2025, which was primarily due to higher professional fees at CapGrow.

***Depreciation and Amortization***

Depreciation and amortization decreased by $1.4 million from $6.3 million during the three months ended June 30, 2024 to $4.9 million for the three months ended June 30, 2025 due primarily to the in-place lease intangibles we acquired as part of the acquisition of University Courtyard being fully amortized in June 2024. This was partially offset by a slight increase in depreciation expense.

***Interest Expenses, net***

Interest expenses, net increased by $0.2 million from $3.0 million during the three months ended June 30, 2024 to $3.2 million for the three months ended June 30, 2025 primarily due to a prepayment penalty and higher interest expense at CapGrow due to the increased borrowing on its revolving line of credit for property acquisitions.

***Impairment of Investments in Real Estate***

Impairment of investments in real estate increased $0.6 million from $0.6 million during the three months ended June 30, 2024 to $1.2 million for the three months ended June 30, 2025. These impairments relate to the write down of impaired vacant assets, held for sale assets, and assets sold. It is part of CapGrow's normal business operations to sell a property when a tenant vacates and no immediate replacement tenant is expected, at which time impairment is evaluated.

***Income from Investments in Real Estate Debt, net***

During the three months ended June 30, 2025, we recognized income from our investment in real estate debt of $1.8 million due to the investments in (i) CMBS in December 2024, (ii) the preferred equity of a private real estate company in March 2025 and (iii) a junior mortgage loan collateralized by a casino and hotel property in May 2025.

***Unrealized Gain (Loss) on Derivative Instruments***

Unrealized gain (loss) on derivative instruments for the three months ended June 30, 2025 and 2024 pertained to University Courtyard's fair value adjustments relating to its interest rate cap.

***Gain on Sale of Real Estate***

Gain on sale of real estate increased $0.2 million from $34 thousand during the three months ended June 30, 2024 to $0.2 million for the three months ended June 30, 2025 as CapGrow sold several of its properties at a gain during the three months ended June 30, 2025 as compared to one property sold at a gain during the three months ended June 30, 2024.

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***Six months ended June 30, 2025 Compared to the Six months ended June 30, 2024***

The following table sets forth information regarding the condensed consolidated results of operations for the six months ended June 30, 2025 and 2024 (amounts in thousands):

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| | | | |
|:---|:---|:---|:---|
| | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | |
| | **2025** | **2024** |<br>**Change** |
| **Revenues** |  |  |  |
| Rental revenue | $23218 | $21690 | $1528 |
| Other revenue | 823 | $556 | 267 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 24041 | 22246 | 1795 |
| **Expenses** |  |  |  |
| Property operating expenses | 2354 | 2023 | 331 |
| Management fees | 898 | 620 | 278 |
| Performance participation allocation | 623 |  | 623 |
| General and administrative | 4828 | 4250 | 578 |
| Depreciation and amortization | 10092 | 12906 | (2814) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 18795 | 19799 | (1004) |
| Operating income | 5246 | 2447 | 2799 |
| **Other income (expense):** |  |  |  |
| Interest expense, net | (6250) | (6051) | (199) |
| Impairment of investments in real estate | (1913) | (1022) | (891) |
| Income from investments in real estate debt, net | 2599 |  | 2599 |
| Income (loss) from an unconsolidated entity | 59 | 10 | 49 |
| Unrealized gain (loss) on derivative instruments | (656) | 138 | (794) |
| Gain on sale of real estate | 236 | 34 | 202 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | $(5925) | (6891) | 966 |
| **Net income (loss)**  | $(679) | $(4444) | $3765 |
| Net (loss) income attributable to non-controlling interest in the consolidated subsidiaries | 29 | 61 |  |
| Net (loss) income attributable to non-controlling interest in the Operating Partnership | (5) | 29 |  |
| **Net loss attributable to SDREIT stockholders** | $(655) | $(4354) |  |
| **Net loss per common share - basic and diluted** | $(0.02) | $(0.19) |  |
| **Weighted-average common shares outstanding - basic and diluted** | 33569498 | 22770531 |  |

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***Rental Revenue***

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Rental revenue from property operations increased by $1.5 million from $21.7 million million during the six months ended June 30, 2024 to $23.2 million during the six months ended June 30, 2025, which was primarily due to accelerated amortization of below-market lease intangibles as a result of several leases being terminated in the current period and increased rental income generated from new properties acquired at CapGrow. Additionally, included in the six months ended June 30, 2025 was $0.3 million of rental income generated from the parking garages acquired in March 2025.

***Other Revenue***

Other revenue increased by $0.3 million from $0.6 million during the six months ended June 30, 2024 to $0.8 million during the six months ended June 30, 2025, which was primarily due to an increase in lease termination income and late fee income at CapGrow.

***Property Operating Expenses***

Property operating expenses increased by $0.3 million from $2.0 million during the six months ended June 30, 2024 to $2.4 million during the six months ended June 30, 2025 primarily due to the acquisition of the parking garages in March 2025 and the increases in real estate taxes and repairs and maintenance expenses at CapGrow.

***Management Fees***

Management fees increased by $0.3 million from $0.6 million during the six months ended June 30, 2024 to $0.9 million for the six months ended June 30, 2025. The increase was due to the higher net asset value of the Company, which was primarily driven by additional equity raised.

***Performance Participation Allocation***

During the six months ended June 30, 2025, we accrued performance participation allocation of $0.6 million. There was no such performance participation allocation during the six months ended June 30, 2024 as a result of the performance metrics that would result in such participation allocation not being met as of June 30, 2024.

***General and Administrative Expenses***

General and administrative expenses increased by $0.6 million from $4.3 million during the six months ended June 30, 2024 to $4.8 million for the six months ended June 30, 2025, which was primarily due to CapGrow's increases in (i) payroll, primarily due to increased headcount, and (ii) professional fees.

***Depreciation and Amortization***

Depreciation and amortization decreased by $2.8 million from $12.9 million during the six months ended June 30, 2024 to $10.1 million for the six months ended June 30, 2025 due primarily to the in-place lease intangibles we acquired as part of the acquisition of University Courtyard being fully amortized in June 2024. This was partially offset by the depreciation associated with the parking garages we acquired in March 2025 and an increase in depreciation and amortization expense at CapGrow due to new property acquisitions and increased leasing activities.

***Interest Expense, net***

Interest expense, net increased by $0.2 million from $6.1 million during the three months ended June 30, 2024 to $6.3 million for the three months ended June 30, 2025 primarily due to a prepayment penalty and higher interest expense at CapGrow due to the increased borrowing on its revolving line of credit for property acquisitions.

***Impairment of Investments in Real Estate***

Impairment of investments in real estate increased $0.9 million from $1.0 million during the six months ended June 30, 2024 to $1.9 million for the six months ended June 30, 2025. These impairments relate to the write down of impaired vacant assets, held for sale assets, and assets sold. It is part of CapGrow's normal business operations to sell a property when a tenant vacates and no immediate replacement tenant is expected, at which time impairment is evaluated.

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***Income from Investments in Real Estate Debt, net***

During the six months ended June 30, 2025, we recognized income from our investment in real estate debt of $2.6 million due to the investments in (i) CMBS in December 2024, (ii) the preferred equity of a private real estate company in March 2025 and (iii) a junior mortgage loan collateralized by a casino and hotel property in May 2025.

***Unrealized Gain (Loss) on Derivative Instruments***

Unrealized gain (loss) on derivative instruments for the six months ended June 30, 2025 and 2024 pertained to University Courtyard's fair value adjustments relating to its interest rate cap.

***Gain on Sale of Real Estate***

Gain on sale of real estate increased $0.2 million from $34 thousand during the six months ended June 30, 2024 to $0.2 million for the six months ended June 30, 2025 as CapGrow sold several of its properties at a gain during the six months ended June 30, 2025 as compared to one property sold at a gain during the six months ended June 30, 2024.

**Funds from Operations, Adjusted Funds from Operations and Funds Available for Distribution**

Funds from operations ("FFO") is an operating measure defined by the National Association of Real Estate Investment Trusts ("NAREIT") that is broadly used in the REIT industry. FFO, as defined by NAREIT and presented below, is calculated as net income or loss (computed in accordance with GAAP), excluding (i) depreciation and amortization, (ii) impairment of investments in real estate, (iii) net gains or losses from sales of real estate, and (iv) similar adjustments for non-controlling interests and unconsolidated entities. We believe FFO is a meaningful non-GAAP supplemental measure of our operating results. Our condensed consolidated financial statements are presented using historical cost accounting which, among other things, requires depreciation of real estate investments to be calculated on a straight-line basis. As a result, our operating results imply that the value of our real estate investments have decreased over time. However, we believe that the value of our real estate investments will fluctuate over time based on market conditions and, as such, depreciation under historical cost accounting may be less informative as a measure of our performance.

We also believe that adjusted FFO ("AFFO") is an additional meaningful non-GAAP supplemental measure of our operating results. AFFO further adjusts FFO to reflect the performance of our portfolio by adjusting for items we believe are not directly attributable to our operations. Our adjustments to FFO to arrive at AFFO include removing the impact of (i) straight-line rental income and expense, (ii) deferred income amortization, (iii) amortization of above- and below-market lease intangibles, (iv) amortization of mortgage premium/discount, (v) unrealized gains or losses from changes in the fair value of real estate debt and other financial instruments, (vi) gains and losses resulting from foreign currency translations, (vii) non-cash performance participation allocation paid in shares or Operating Partnership units, even if repurchased by us, (viii) amortization of restricted stock awards, (ix) non-cash interest expense on affiliate line of credit paid in shares or Operating Partnership units, even if subsequently repurchased by us, (x) organizational costs, (xi) amortization of deferred financing costs, (xii) transaction fees, and (xiii) similar adjustments for non-controlling interests and unconsolidated entities.

We also believe that funds available for distribution ("FAD") is an additional meaningful non-GAAP supplemental measure of our operating results. FAD provides useful information for considering our operating results and certain other items relative to the amount of our distributions. Further, FAD is a metric, among others, that is considered by our board of directors and executive officers when determining the amount of our dividend to stockholders, and we believe is therefore meaningful to stockholders. FAD is calculated as AFFO adjusted for (i) management fees paid in shares or Operating Partnership units, even if subsequently repurchased by us, (ii) realized losses (gains) on financial instruments, (iii) recurring tenant improvements, leasing commissions, and other capital expenditures, (iv) distribution fees paid during the period, and (v) similar adjustments for non-controlling interests and unconsolidated entities. FAD is not indicative of cash available to fund our cash needs and does not represent cash flows from operating activities in accordance with GAAP, as FAD is adjusted for distribution fees and recurring tenant improvements, leasing commission, and other capital expenditures, which are not considered when determining cash flows from operations. Furthermore, FAD excludes (i) adjustments for working capital items and (ii) amortization of discounts and premiums on investments in real estate debt. Cash flows from operating activities in accordance with GAAP would generally be adjusted for such items.

FFO, AFFO, and FAD should not be considered more relevant or accurate than GAAP net income (loss) in evaluating our operating performance. In addition, FFO, AFFO, and FAD should not be considered as alternatives to net income (loss) as

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indications of our performance or as alternatives to cash flows from operating activities as indications of our liquidity, but rather should be reviewed in conjunction with these and other GAAP measurements. Further, FFO, AFFO, and FAD are not intended to be used as liquidity measures indicative of cash flow available to fund our cash needs, including our ability to make distributions to our stockholders. In addition, our methodology for calculating AFFO and FAD may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and accordingly, our reported AFFO and FAD may not be comparable to the AFFO and FAD reported by other companies.

The following table presents a reconciliation of net income (loss) attributable to SDREIT shareholders to FFO, AFFO and FAD attributable to SDREIT shareholders for the respective periods below (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 SDREIT shareholders | $(396) | $(2053) | $(655) | $(4354) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to arrive at FFO: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 4931 | 6344 | 10092 | 12906 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of real estate | (218) | (34) | (236) | (34) |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment on investments in real estate | 1160 | 580 | 1913 | 1022 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount attributable to non-controlling interests in the consolidated subsidiary for above adjustments | (440) | (1614) | (881) | (2326) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unconsolidated entities depreciation and noncontrolling interests adjustments | 3 | 6 | 6 | 9 |
| FFO attributable to SDREIT shareholders | $5040 | $3229 | $10239 | $7223 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to arrive at AFFO: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Straight-line rental income and expense | (100) | (126) | (211) | (285) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of below-market lease intangibles | (1151) | (1034) | (3007) | (2300) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of discount on mortgage and other loans payable | 69 | 69 | 137 | 139 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing fees - property level | 67 | 77 | 148 | 124 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of restricted stock awards | 61 | 4 | 122 | 91 |
| &nbsp;&nbsp;&nbsp;&nbsp;Organizational costs and transaction costs | 39 | 60 | 308 | 172 |
| &nbsp;&nbsp;&nbsp;&nbsp;Origination fees | (255) |  | (605) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash performance participation allocation | 623 | (285) | 623 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gains) losses from changes in the fair value of investments in real estate debt and other financial instruments | 308 | 61 | 674 | (138) |
| &nbsp;&nbsp;&nbsp;&nbsp;Paid-in-kind interest | (468) |  | (596) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount attributable to unconsolidated entities for above adjustments | 1 | 3 | 1 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount attributable to non-controlling interests for above adjustments | 15 | 59 | 147 | 494 |
| AFFO attributable to SDREIT shareholders | $4249 | $2117 | $7980 | $5523 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recurring tenant improvements and other capital expenditures | (27) |  | (30) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Management fee | 465 | 318 | 898 | 620 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stockholder distribution fees paid | (135) | (90) | (257) | (171) |
| FAD Attributable to SDREIT Shareholders | $4552 | $2345 | $8591 | $5972 |

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**Net Asset Value** 

We calculate NAV per share in accordance with the valuation guidelines that have been approved by our board of directors. Our total NAV presented in the following tables includes the NAV of our Class F, Class FF, Class E, Class AA, Class A and Class I-S common shares, as well as the partnership interests of the Operating Partnership held by parties other than us, which, in aggregate, was reduced by the noncontrolling interests in our consolidated subsidiaries.

We calculate NAV per share for each share class monthly. Our NAV for each class of shares is based on the net asset values of our investments (including investments in real estate debt and other securities and real estate businesses, such as CapGrow), the addition of any other assets (such as cash on hand), and the deduction of any liabilities, including the allocation/accrual of any performance participation to the Special Limited Partner, and will also include the deduction of management fees and certain organization and offering expenses (which are class-specific expenses) and any distribution fees applicable to such class of shares. Please refer to Item 9. "Market Price of and Dividends on the Registrant's Common Equity and Related Stockholder Matters—Net Asset Value Calculation and Valuation Guidelines" in our Form 10 for further details on how our NAV is determined.

The following table provides a breakdown of the major components of our NAV as of June 30, 2025 (amounts in thousands, except per share/unit data):

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| | |
|:---|:---|
| **Components of NAV** | **June 30, 2025** |
| Investments in real estate (including goodwill) | $596371 |
| Investment in an unconsolidated joint venture | 2114 |
| Investments in real estate debt | 60732 |
| Cash and cash equivalents | 23803 |
| Restricted cash | 13883 |
| Receivables | 923 |
| Other assets | 3173 |
| Mortgages and other loans payable, net | (268927) |
| Accounts payable and other liabilities | (16778) |
| Management fee payable | (315) |
| Accrued participation allocation | (623) |
| Due to related parties | (38) |
| Noncontrolling interests in the consolidated subsidiaries | (27932) |
| **Net Asset Value** | $386386 |
|  **Number of outstanding shares/units** | 36329350 |

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**NAV and NAV Per Share Calculation**

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

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **NAV per share** | **Class F Shares** | **Class FF Shares** | **Class E Shares** | **Class AA Shares** | **Class A Shares** | **Class I-S Shares** | **Operating Partnership Units** | **Total** |
| NAV | $209348 | $65638 | $42411 | $48987 | $17771 | $511 | $1720 | $386386 |
| Number of outstanding shares/ units | 19607441 | 6241937 | 3921217 | 4645736 | 1704696 | 49253 | 159070 | 36329350 |
| NAV Per Share/Unit | $10.6769 | $10.5157 | $10.8159 | $10.5446 | $10.4246 | $10.3824 | $10.8159 | $10.6357 |

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The following table details the discount rate and the weighted-average capitalization rate by property type, which are the key assumptions from the valuations as of June 30, 2025:

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| | | |
|:---|:---|:---|
| **Property Type** | **Discount Rate** | **Exit Capitalization Rate** |
| Residential (Business) | 8.0% | 7.0% |
| Student Housing | 8.5% | 6.3% |
| Commercial Properties | 12.5% | 10.0% |

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These weighted averages of key assumptions are calculated by the Adviser using information from the appraisals that are provided by the independent valuation advisor and reviewed by our Adviser. A change in these assumptions would impact the calculation of the value of our property investments. For example, assuming all other factors remain unchanged, the changes listed below would result in the following effects on our investment values at June 30, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Input** | **Hypothetical Change** | **Residential (Business)** | **Student Housing** | **Commercial Properties** |
| Discount Rate | 0.25% decrease | 1.2% | 1.1% | 1.1% |
| Discount Rate | 0.25% increase | (1.4)% | (1.1)% | (2.3)% |
| Exit Capitalization Rate (weighted average) | 0.25% decrease | 3.6% | 4.4% | 1.1% |
| Exit Capitalization Rate (weighted average) | 0.25% increase | (3.4)% | (4.0)% | (1.1)% |

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The following table details the weighted average contractual rates for the Company's borrowings compared to the weighted average market rates, which are key assumptions from the debt valuations as of June 30, 2025:

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| | | |
|:---|:---|:---|
| **Debt Type** | **Contracted Interest Rates** | **Market Interest Rate** |
| Fixed rate debt (weighted average) | 4.51% | 6.37% |
| Variable rate debt (weighted average) <sup>(1)</sup> | SOFR + 3.14% | SOFR + 2.89% |

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___________________________________________________

(1) - Includes University Courtyard's debt obligation without consideration of the effect of the interest rate cap.

These weighted averages of key assumptions are calculated by the Adviser using information from debt valuations that are provided by the independent valuation advisor who values our debt and are reviewed by the Adviser. A change in these assumptions would impact the calculation of the value of the debt owed by CapGrow and University Courtyard. Examples of changes in market mortgage interest rates, assuming no other changes to our June 30, 2025 debt balances, would have the following effects on the value of our debt balances.

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| | | | |
|:---|:---|:---|:---|
| **Input** | **Hypothetical Change** | **Residential (Business)** | **Student Housing** |
| Mortgage Interest Rates (weighted average) | 0.25% Decrease | 0.5% | 0.3% |
| Mortgage Interest Rates (weighted average) | 0.25% Increase | (0.5)% | (0.3)% |

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The following table reconciles shareholders' equity per our condensed consolidated balance sheet to our NAV as of June 30, 2025 (amounts in thousands):

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| | |
|:---|:---|
|  | **June 30, 2025** |
| Shareholders' equity | $304911 |
| Redeemable non-controlling interest in SDREIT Operating Partnership | 1720 |
| Total SDREIT stockholders' equity and SDREIT Operating Partnership partners' capital under GAAP | $306631 |
| Adjustments: |  |
| Accrued organizational and offering costs | 2576 |
| Accumulated depreciation and amortization under GAAP | 39012 |
| Straight line rent receivable | (1634) |
| Unrealized net real estate appreciation | 39800 |
| Unvested dividends reinvestment | 1 |
| NAV | $386386 |

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The following details the adjustments to reconcile GAAP shareholders' equity to our NAV:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Adviser agreed to advance certain organization and offering costs on our behalf through March 31, 2024. Such costs will be reimbursed to the Adviser on a pro-rata basis over a 60-month period beginning March 31, 2024. Under GAAP, organization costs are expensed as incurred. For purposes of calculating NAV, such costs will be recognized as paid over the 60-month reimbursement period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We depreciate our investments in real estate and amortize certain other assets and liabilities (i.e., above- and below-market leases, in-place lease costs and deferred commissions) in accordance with GAAP. Such depreciation and amortization is not recorded for purposes of calculating our NAV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our investments in real estate are presented at their depreciated cost basis in our GAAP condensed consolidated financial statements. Additionally, our mortgage loans and revolving credit facility (collectively, our "Debt") are presented at their amortized cost basis 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 are not included in our GAAP results. For purposes of calculating our NAV, our investments in real estate and our Debt are recorded at fair value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We recognize rental revenue on a straight-line basis under GAAP. Such straight-line rent adjustments are excluded for purposes of calculating NAV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We accrue dividends on unvested restricted stock in accordance with GAAP. For purposes of calculating our NAV, we exclude these accrued unvested dividends until the vesting period associated to the underlying restricted stock expires.

**Distributions**

Distributions are authorized at the discretion of our board of directors, in accordance with our earnings, cash flows and general financial condition. Our board of directors' discretion is directed, in substantial part, by its obligation to cause us to comply with the REIT requirements. To qualify as a REIT, we are required to pay distributions sufficient to satisfy the requirements for qualification as a REIT for tax purposes. We intend to distribute sufficient income so that we satisfy the requirements for qualification as a REIT. In order to qualify as a REIT, we are required to distribute 90% of our annual REIT taxable income, determined without regard to the dividends-paid deduction and excluding net capital gains, to our stockholders. We intend to declare monthly distributions as authorized by our board of directors (or a committee of the board of directors) and to pay such distributions on a monthly basis. Our distribution policy is set by our board of directors and is subject to change based on available cash flows. Distributions are made on all classes of our common stock at the same time. We normally expect that the accrual of ongoing fees on a class-specific basis will result in different amounts of distributions being paid with respect to certain classes of shares.

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Beginning March 31, 2023, we declared monthly distributions for each class of our common shares, which are generally paid 12 days after month-end. We have paid distributions consecutively each month since such time. Each class of our common shares received the same aggregate gross distribution per share, which was $0.0621 per share for the month ended June 30, 2025. The net distribution varies for each class based on the applicable distribution fee, which is deducted from the monthly distribution per share and paid directly to the applicable distributor. On October 1, 2023, Class FF shares became subject to an annual distribution fee of 0.50% per annum. Class AA shares are subject to an annual distribution fee of 0.50% per annum since issuance.

The following table details the total net distributions for each of our share class from inception through record date June 30, 2025:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Declaration Date** | **Class F Shares** | **Class FF Shares** | **Class E Shares** | **Class AA Shares** | **Class A Shares** | **Class I-S Shares** |
| Inception through December 31, 2023 | $0.6143 | $0.4832 | $0.0633 | $— | $— | $— |
| January 31, 2024 | 0.0627 | 0.0582 | 0.0627 |  |  |  |
| February 29, 2024 | 0.0631 | 0.0589 | 0.0631 | 0.0588 |  |  |
| March 31, 2024 | 0.0629 | 0.0584 | 0.0629 | 0.0584 |  |  |
| April 30, 2024 | 0.0627 | 0.0583 | 0.0627 | 0.0583 |  |  |
| May 31, 2024 | 0.0628 | 0.0583 | 0.0628 | 0.0583 |  |  |
| June 30, 2024 | 0.0627 | 0.0583 | 0.0627 | 0.0583 |  |  |
| July 31, 2024 | 0.0624 | 0.0579 | 0.0624 | 0.0579 |  |  |
| August 30, 2024 | 0.0640 | 0.0594 | 0.0640 | 0.0594 | 0.0640 |  |
| September 30, 2024 | 0.0637 | 0.0593 | 0.0637 | 0.0593 | 0.0637 |  |
| October 31, 2024 | 0.0633 | 0.0587 | 0.0633 | 0.0587 | 0.0633 |  |
| November 30, 2024 | 0.0635 | 0.0591 | 0.0635 | 0.0591 | 0.0635 |  |
| December 31, 2024 | 0.0624 | 0.0579 | 0.0624 | 0.0579 | 0.0624 |  |
| January 31, 2025 | 0.0620 | 0.0575 | 0.0620 | 0.0575 | 0.0620 |  |
| February 28, 2025 | 0.0620 | 0.0580 | 0.0620 | 0.0580 | 0.0620 | 0.0620 |
| March 31, 2025 | 0.0617 | 0.0573 | 0.0617 | 0.0572 | 0.0617 | 0.0617 |
| April 30, 2025 | 0.0615 | 0.0572 | 0.0615 | 0.0572 | 0.0615 | 0.0615 |
| May 31, 2025 | 0.0618 | 0.0574 | 0.0618 | 0.0573 | 0.0618 | 0.0618 |
| June 30, 2025 | 0.0621 | 0.0578 | 0.0621 | 0.0578 | 0.0621 | 0.0621 |
| Total | $1.7416 | $1.5311 | $1.1906 | $0.9894 | $0.6880 | $0.3091 |

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The following tables detail our distributions declared for the six months ended June 30, 2025 (amounts in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2025** | **Six Months Ended June 30, 2024** | **Six Months Ended June 30, 2024** |
| | **Amount** | **Percentage** | **Amount** | **Percentage** |
| **Distributions** | | | | |
| Payable in cash | $9715 | 79% | $6891 | 81% |
| Reinvested in shares | 2525 | 21% | 1599 | 19% |
| Total distributions | $12240 | 100% | $8490 | 100% |
| **Sources of Distributions** |  |  |  |  |
| Cash flows from operating activities | $10642 | 87% | $8490 | 100% |
| DRIP<sup>(1)</sup> | 1598 | 13% |  | —% |
| **Total Sources of distribution** | $12240 | 100% | $8490 | 100% |
| Cash flows from operating activities | $10245 |  | $9125 |  |
| Funds from operations<sup>(2)</sup> | $10239 |  | $7223 |  |
| Adjusted funds from operations<sup>(2)</sup> | $7980 |  | $5523 |  |

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___________________________________________________

<sup>(1)</sup> Stockholders may elect to have their distributions reinvested in shares of our common stock through our distribution repurchase plan ("DRIP").

<sup>(2)</sup> See "Funds from Operations, Adjusted Funds from Operations and Funds Available for Distribution" above for a description of Funds from Operations and Adjusted Funds from Operations, for reconciliations of these amounts to GAAP net loss attributable to SDREIT shareholders and for considerations on how to review these metrics.

Subsequent to June 30, 2025, we declared $1.8 million of distributions in cash and $0.5 million of distributions in shares under our distribution reinvestment plan.

There is no assurance we will pay distributions in any particular amount, if at all. We may fund any distributions from sources other than cash flow from operations, including, without limitation, the sale of or repayment of our assets, borrowings or offering proceeds, and we have no limits on the amounts we may pay from such sources.

**Liquidity and Capital Resources**

***Liquidity***

We believe we have sufficient liquidity to operate our business, with $23.8 million of immediate liquidity as of June 30, 2025, which is comprised of cash and cash equivalents. Aside from cash flows from operations, we obtain incremental liquidity through the sale of our common shares. We may incur indebtedness secured by our real estate and real estate debt investments, borrow money through unsecured financings, or incur other forms of indebtedness. We may also generate incremental liquidity through the sale of our real estate and real estate debt investments.

Our primary liquidity needs are to fund our investments, make distributions to our shareholders, repurchase common shares pursuant to our share repurchase plan, pay operating expenses, fund capital expenditures, and repay indebtedness. Our operating expenses include, among other things, the management fee we pay to the Adviser and the performance participation allocation that the Operating Partnership pays to the Special Limited Partner, both of which will impact our liquidity to the extent the Adviser or the Special Limited Partner elect to receive such payments in cash, or subsequently redeem shares or OP units previously issued to them.

Our cash needs for acquisitions and other capital investments are expected to be funded primarily from the sale of common shares and through the incurrence or assumption of debt. Other potential future sources of capital include proceeds from the sale of assets. If necessary, we may use financings or other sources of capital in the event of unforeseen significant capital expenditures.

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***Capital Resources***

As of June 30, 2025, our indebtedness included loans secured by our properties, our credit facility and a financing obligation. The following table is a summary of our indebtedness as of June 30, 2025 (amount in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
| **Indebtedness** | **Weighted Average Interest Rate**  | **Weighted Average Maturity Date**<sup>(1)</sup> | **Maximum Facility Size** | **Principal Balance Outstanding** |
| Mortgages and other loans payable<sup>(2)</sup> | 4.42% | April 2031 | N/A | $219229 |
| Revolving credit facility<sup>(3)</sup> | 7.84% | February 2027 | $50000 | 33545 |
| Financing obligations<sup>(4)</sup> |  |  |  | 23199 |
| Discount and deferred financing costs, net |  |  |  | (3369) |
| Total indebtedness |  |  |  | $272604 |

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______________________________________

(1) &nbsp;&nbsp;&nbsp;&nbsp;For loans where the Company, at its sole discretion, has extension options, the maximum maturity date has been assumed.

(2) &nbsp;&nbsp;&nbsp;&nbsp;Mortgages and other loans payable bear varying fixed rates and maturities ranging from October 2025 through January 2039. There were no extension options for any of our loans.

(3) &nbsp;&nbsp;&nbsp;&nbsp;The revolving credit facility bears interest equal to Term SOFR plus 3.50% per annum and matures in February 2027. The weighted average interest rate for the revolving credit facility for the three months ended June 30, 2025 was 7.81%.

(4) &nbsp;&nbsp;&nbsp;&nbsp;This financing obligation is related to the sale and leaseback transaction of University Courtyard, which is accounted for as a failed and leaseback transaction because the lease is classified as a finance lease. Accordingly, the underlying land is still included in the investments in real estate in the condensed consolidated balance sheets and the proceeds from the sale are accounted for as a financing obligation. The rental payment under the lease will be allocated between interest expense and principal repayment of the financing obligation using the effective interest method and amortize over the 99-yeaar lease term. The total principal payments will not exceed the difference between the gross proceeds from the sale of $23.2 million and the initial carrying value of the land of $4.1 million, resulting in maximum principal payments of $19.1 million.

In March 2023, we commenced the offering of our shares through a continuous private placement offering pursuant to the exemption from registration provided by Section 4(a)(2) of the Securities Act, and Regulation D promulgated thereunder, and other exemptions of similar import in the laws of the states and other jurisdictions where the offering is being made. Our Class A, Class AA, Class D, Class F (issuer direct sales to institutional investors), Class I, Class S, and Class I-S shares are generally available for issuance in our private offering. Class F and Class FF shares were available for issuance through a third-party distribution partner through January 1, 2024, and existing investors in such classes had the ability to invest in such classes in an amount up to such investor's initial investment in such class until January 1, 2025. Class E shares are only expected to be held by Sculptor, its personnel, and affiliates.

As of June 30, 2025, we have received net proceeds of $235.3 million, including proceeds from our distribution reinvestment plan, from issuing an aggregate of 5,614,670 Class F common shares, 6,454,200 Class FF common shares, 4,645,736 Class AA common shares, 1,704,696 Class A common shares, 49,253 Class I-S common shares and 3,542,165 Class E common shares in the private offering. This is in addition to the $150.2 million raised from the sale of 15,023,153 Class F common shares (including reinvestment of distributions) in private transactions that preceded this offering. Additionally, we issued an aggregate $3.4 million, or 379,052 of Class E common shares, inclusive of shares issued to our independent directors under the terms of the independent director compensation plan, to our Advisor as payment of management fees, and to an employee of Sculptor who purchased such shares.

As of June 30, 2025, we have repurchased Class F common shares and Class FF common shares of 1,030,382 and 212,264, respectively, totaling $13.2 million.

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**Cash Flows**

***Six Months Ended June 30, 2025 and 2024 (amounts in thousands):***

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| | | | |
|:---|:---|:---|:---|
|  | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** | **Difference** |
| | **2025** | **2024** | |
| Cash flows provided by operating activities | $10245 | 9125 | $1120 |
| Cash flows used in investing activities | (81239) | (3674) | (77565) |
| Cash flows provided by financing activities | 53840 | 6600 | 47240 |
| Net change in cash and cash equivalents and restricted cash | $(17154) | $12051 | $(29205) |

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Cash flows provided by operating activities increased by approximately $1.1 million during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to improved operating results, partially offset by the timing of settlement of certain payables and receivables.

Cash flows used in investing activities increased by approximately $77.6 million during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to the investments in real estate debt and acquisition of the parking garages and single-family properties through CapGrow during the current period.

Cash flows provided by financing activities increased by approximately $47.2 million during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024, primarily due to more proceeds from stock issuances, partially offset by the repurchases of our common stock and increased distributions to stockholders.

**Critical Accounting Estimates** 

A complete discussion of our critical accounting estimates is included in our Annual Report. There have been no changes in such estimates.

**Recent Accounting Pronouncements**

See Note 2, "Summary of Significant Accounting Policies" to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q for a discussion concerning recent accounting pronouncements.

**Off-Balance Sheet Arrangements**

We currently have no off-balance sheet arrangements that are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

**Commitments and Contingencies** 

The following table aggregates our contractual obligations and commitments with payments due subsequent to June 30, 2025 (amounts in thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Total** | **Less than 1 year** | **1-3 years** | **3-5 years** | **More than 5 years** |
| Indebtedness <sup>(1)</sup> | $271913 | $2064 | $53766 | $37061 | $179022 |
| Organization and offering costs<sup>(2)</sup> | 2576 | 344 | 1374 | 858 |  |
| Total | $274489 | $2408 | $55140 | $37919 | $179022 |

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______________________________________________

<sup>(1)</sup> Loan maturities are based on the contractual maturity dates.

<sup>(2)</sup> Amount owed to our Adviser as of June 30, 2025.

**ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

For quantitative and qualitative disclosure about market risk, see Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operation - Current Market Conditions and Related Risks and Opportunities" in this Quarterly Report on Form 10-Q for the period ended June 30, 2025 for the Company. Our exposures to market risk have not changed materially since December 31, 2024.

**ITEM 4. CONTROLS AND PROCEDURES**

**Evaluation of Disclosure Controls and Procedures**

An evaluation of the effectiveness of the design and operation of our "disclosure controls and procedures" (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")), as of the end of the period covered by this quarterly report on Form 10-Q was made under the supervision and with the participation of our management, including our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"). Based upon this evaluation, our CEO and CFO have concluded that our disclosure controls and procedures (a) are effective to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by SEC rules and forms and (b) include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

**Changes in Internal Controls over Financial Reporting**

There have been no changes in our "internal control over financial reporting" (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during our most recent quarter 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**

There were no material changes during the period covered by this Quarterly Report to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.

**ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

**Unregistered Sales of Equity Securities**

During the three months ended June 30, 2025, we sold equity securities that were not registered under the Securities Act as described below. As described in Note 11, "Related Party Transactions," to our condensed consolidated financial statements, the Advisor may elect to receive its management fee in cash, shares of our Class E common stock, or Class E units of the Operating Partnership. During the three months ended June 30, 2025, the Adviser elected to receive its management fees in Class E shares and we issued 40,815 unregistered Class E shares to the Adviser in satisfaction of the management fees totaling $0.4 million for the period from February 2025 through April 2025. Since our Adviser elected to receive Class E shares, during the three months ended June 30, 2025, we also issued 4,325 unregistered Class E shares to the Adviser as part of the distribution reinvestment program. Additionally, during the three months ended June 30, 2025, we issued 24,418 unregistered Class E shares to our independent directors pursuant to the terms of our independent director compensation plan in connection with their re-election to our board of directors. Such shares are subject to vesting and settlement provisions as detailed within the independent director compensation plan. During the three months ended June 30, 2025, we also issued 1,254 unregistered Class E shares to our independent directors and to an employee of Sculptor in connection with their participation in the distribution reinvestment plan.

During the three months ended June 30, 2025, the Company issued 1,010,425 shares of Class AA common stock, 143,189 shares of Class A common stock, and 1,867,813 shares of Class E common stock for aggregate net proceeds of approximately $32.1 million. During the three months ended June 30, 2025, the Company issued 399 shares of Class F common stock, 66,957 shares of Class FF common stock, 41,918 shares of Class AA common stock, 2,772 shares of Class A common stock and 872 shares of Class I-S common stock for aggregate net proceeds of approximately $1.2 million as part of the distribution reinvestment program. The offer and sale of these shares were exempt from the registration provisions of the Securities Act of 1933, as amended, pursuant to Section 4(a)(2), Regulation D and/or Regulation S thereunder.

**Share Repurchases**

Under our share repurchase plan, to the extent we choose to repurchase shares in any particular month, we will only repurchase shares as of the opening of the last calendar day of that month (each such date, a "Repurchase Date"). Repurchases will be made at the transaction price in effect on the Repurchase Date, except that shares that have not been outstanding for at least one year will be repurchased at 95% of the transaction price (an "Early Repurchase Deduction"). The Early Repurchase Deduction may only be waived in the case of repurchase requests arising from the death or qualified disability of the holder and in other limited circumstances. The Early Repurchase Deduction will not apply to shares acquired through our distribution reinvestment plan.

The total amount of aggregate repurchases of shares of our common stock will be limited during each calendar month to 2% of the aggregate NAV of all classes as of the last calendar day of the previous quarter and in each calendar quarter will be limited to 5% of the aggregate NAV of all classes of shares as of the last calendar day of the previous calendar quarter; provided, however, that every month and quarter each class of our common stock will be allocated capacity within such aggregate limit to allow stockholders in such class to either (a) redeem shares equal to at least 2% of the aggregate NAV of such share class as of the last calendar day of the previous quarter, or, if more limiting, (b) redeem shares over the course of a given quarter equal to at least 5% of the aggregate NAV of such share class as of the last calendar day of the previous quarter (collectively referred to herein as the "2% and 5% limits"). In the event that we repurchase some but not all of the shares submitted for repurchase during any month, shares repurchased at the end of the month will be repurchased on a pro rata

------

basis. Repurchases and pro rata treatment, if necessary, will first be applied within the class-specific allocated capacity and then applied on an aggregate basis to the extent there is remaining capacity. For purposes of calculating the 2% and 5% limits, the repurchase price will be deemed to be the price before any Early Repurchase Deduction.

Should repurchase requests, in our judgment, place an undue burden on our liquidity, adversely affect our operations or risk having an adverse impact on the Company, or should we otherwise determine that investing our liquid assets in real properties or other investments rather than repurchasing our shares is in the best interests of the Company, we may choose to repurchase fewer shares in any particular month than have been requested to be repurchased, or none at all. Further, our board of directors may make exceptions to, modify, suspend or terminate our share repurchase plan if in its reasonable judgment it deems such action to be in our best interest and the best interest of our stockholders.

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. Material modifications, including any amendment to the 2% monthly or 5% quarterly limitations on repurchases, to and suspensions of the share repurchase plan will be promptly disclosed to stockholders via their financial representatives. In addition, we may determine to suspend the share repurchase plan due to regulatory changes, changes in law or if we become aware of undisclosed material information that we believe should be publicly disclosed before shares are repurchased. Our board of directors must affirmatively authorize the recommencement of the plan if it is suspended before stockholder requests will be considered again.

During the three months ended June 30, 2025, we repurchased shares of our common stock under the share repurchase plan in the following amounts, which represented all of the share repurchase requests received for the same period.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Month** | **Total Number of Shares Repurchased** <sup>(1)(2)</sup> | **Average Price per Share** | **Total Number of Share Repurchased as Part of Publicly Announced Plans or Programs** | **Maximum Number of Shares Pending Repurchase Pursuant to Publicly Announced Plans or Programs** <sup>(1)</sup> |
| April 2025 |  |  |  |  |
| May 2025 | 16319 | 10.48 | 16319 |  |
| June 2025 |  |  |  |  |
| Total | 16319 |  | 16319 |  |

---

_______________________________________________

<sup>(1)</sup> Repurchases are limited under the share repurchase plan as described above.

<sup>(2)</sup> Share repurchases are funded through a combination of sales of shares of our common stock and proceeds from asset dispositions.

**ITEM 3. DEFAULTS UPON SENIOR SECURITIES**

None.

**ITEM 4. MINE SAFETY DISCLOSURES**

Not applicable.

**ITEM 5. OTHER INFORMATION**

*(a) Amended and Restated Advisory Agreement*

We, the Operating Partnership and the Adviser previously entered into that certain Fifth Amended and Restated Advisory Agreement, dated as of June 21, 2025 (the "Prior Agreement"). We, the Operating Partnership and the Adviser amended and restated the Prior Agreement by entering into the Sixth Amended and Restated Advisory Agreement ("Sixth Advisory Agreement"), effective as of August 11, 2025. The Sixth Advisory Agreement revises certain defined terms to have the meaning as provided in our Corporate Governance Guidelines, which means that (i) that Acquisition Expenses, as used throughout the agreement, include costs associated with evaluating, structuring, originating, financing and developing any

------

assets, whether or not acquired and (ii) that Total Operating Expenses as used throughout the agreement excludes property level expenses incurred at each property and other fees and expenses associated with the management of real estate interests. Other than updated definitions, there were no changes to the terms of the Sixth Advisory Agreement.

(b) Not applicable.

(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.

------

**ITEM 6. EXHIBITS**

---

| | |
|:---|:---|
| **Ex. No.** | **Description** |
| <u>[3.1](https://www.sec.gov/Archives/edgar/data/1914496/000114036123033130/ny20009481x1_ex3-1.htm)</u> | Second Articles of Amendment and Restatement of Sculptor Diversified Real Estate Income Trust, Inc. (the "Registrant"), effective as of March 3, 2023 (filed as Exhibit 3.1 to the Company's Registration Statement on Form 10-12G (File No. 000-56566) filed on July 5, 2023 and incorporated herein by reference) |
| <u>[3.2](https://www.sec.gov/Archives/edgar/data/1914496/000191449624000128/sdreitye2024ex31-articleso.htm)</u> | Articles of Amendment, effective as of November 18, 2024 (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed on November 20, 2024 and incorporated herein by reference) |
| <u>[3.3](https://www.sec.gov/Archives/edgar/data/1914496/000191449624000128/sdreitye2024ex32-articless.htm)</u> | Articles Supplementary, effective as of November 18, 2024 (filed as Exhibit 3.2 to the Company's Current Report on Form 8-K filed on November 20, 2024 and incorporated herein by reference) |
| <u>[3.4](https://www.sec.gov/Archives/edgar/data/1914496/000191449624000137/sdreitye2024ex31-articleso.htm)</u> | Articles of Amendment, effective as of December 6, 2024 (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K filed on December 10, 2024 and incorporated herein by reference) |
| <u>[3.5](https://www.sec.gov/Archives/edgar/data/1914496/000114036123033130/ny20009481x1_ex3-2.htm)</u> | Second Amended and Restated Bylaws of the Registrant, dated of as March 7, 2023 (filed as Exhibit 3.2 to the Company's Registration Statement on Form 10-12G (File No. 000-56566) filed on July 5, 2023 and incorporated herein by reference) |
| <u>[4.1](https://www.sec.gov/Archives/edgar/data/1914496/000114036123033130/ny20009481x1_ex4-1.htm)</u> | Amended and Restated Distribution Reinvestment Plan (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K filed on November 5, 2024 and incorporated herein by reference) |
| <u>[4.2](https://www.sec.gov/Archives/edgar/data/1914496/000114036123033130/ny20009481x1_ex4-2.htm)</u> | Share Repurchase Plan (filed as Exhibit 4.2 to the Company's Registration Statement on Form 10-12G filed on July 5, 2023 and incorporated herein by reference) |
| <u>[10.1](https://www.sec.gov/Archives/edgar/data/1914496/000191449625000061/sculptordiversifiedreit-fi.htm)</u> | Fifth Amended and Restated Advisory Agreement, dated as of June 21, 2025, by and among Sculptor Diversified Real Estate Income Trust, Inc., Sculptor Diversified REIT Operating Partnership LP and Sculptor Advisors LLC (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K filed on June 25, 2025 and incorporated herein by reference) |
| 10.2\* | <u>[Sixth Amended and Restated Advisory Agreement, dated as of August 11, 2025, by and among Sculptor Diversified Real Estate Income Trust, Inc., Sculptor Diversified REIT Operating Partnership LP and Sculptor Advisors LLC](sculptordiversifiedreit-si.htm)</u> |
| 31.1\* | <u>[Certification of Principal Executive Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](sdreit2q2025ex311certifica.htm)</u> |
| 31.2\* | <u>[Certification of Principal Financial Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002](sdreit2q2025ex312certifica.htm)</u> |
| 32.1\*\* | <u>[Certification of Principal Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](sdreit2q2025ex321certifica.htm)</u> |
| 32.2\*\* | <u>[Certification of Principal Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](sdreit2q2025ex322certifica.htm)</u> |
| 101 | The following financial information from the Company's Annual Report on Form 10-Q for the three months ended June 30, 2025 formatted in iXBRL (inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Operations; (iii) Condensed Consolidated Statements of Changes in Equity; (iv) Condensed Consolidated Statements of Cash Flows and (v) Notes to Condensed Consolidated Financial Statements. |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
| \* Filed herewith. | \* Filed herewith. |
| \*\* This exhibit shall not be deemed "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act or the Exchange Act. | \*\* This exhibit shall not be deemed "filed" for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act or the Exchange Act. |

---

------

**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.

---

| | | | |
|:---|:---|:---|:---|
| | | **Sculptor Diversified Real Estate Income Trust, Inc.** | **Sculptor Diversified Real Estate Income Trust, Inc.** |
| Date: | August 13, 2025 | By: | /s/ Steven Orbuch |
|  |  |  | **Steven Orbuch** |
|  |  |  | Chief Executive Officer |
|  |  |  | (Principal Executive Officer) |
| Date: | August 13, 2025 | By: | /s/ Ellen Conti |
|  |  |  | **Ellen Conti** |
|  |  |  | Chief Financial Officer and Treasurer |
|  |  |  | (Principal Financial Officer) |
| Date: | August 13, 2025 | By: | /s/ Scott Ciccone |
|  |  |  | **Scott Ciccone** |
|  |  |  | Chief Accounting Officer |
|  |  |  | (Principal Accounting Officer) |

---

## Ex-10

**SIXTH AMENDED AND RESTATED** 

**ADVISORY AGREEMENT** 

**AMONG** 

**SCULPTOR DIVERSIFIED REAL ESTATE INCOME TRUST, INC.,** 

**SCULPTOR DIVERSIFIED REIT OPERATING PARTNERSHIP LP,** 

**AND**

**SCULPTOR ADVISORS LLC**

------

**TABLE OF CONTENTS**

Page

---

| | |
|:---|:---|
| [1.&nbsp;&nbsp;&nbsp;&nbsp;DEFINITIONS.](#ib688307799694698b5ffbe9bc9dcf7a8) | [1](#ib688307799694698b5ffbe9bc9dcf7a8) |
| [2.&nbsp;&nbsp;&nbsp;&nbsp;APPOINTMENT.](#i22753a8ff42b4dfb8437c4906d3b8493) | [5](#i22753a8ff42b4dfb8437c4906d3b8493) |
| [3.&nbsp;&nbsp;&nbsp;&nbsp;DUTIES OF THE ADVISER.](#i5949cf6034994500b74c630f3d241acf) | [5](#i5949cf6034994500b74c630f3d241acf) |
| [4.&nbsp;&nbsp;&nbsp;&nbsp;AUTHORITY OF ADVISER.](#icb21549a9f8e423987305b0026b95f9b) | [7](#icb21549a9f8e423987305b0026b95f9b) |
| [5.&nbsp;&nbsp;&nbsp;&nbsp;BANK AND BROKERAGE ACCOUNTS.](#i9e4db9d80b5a4a748ce676a778db77fe) | [8](#i9e4db9d80b5a4a748ce676a778db77fe) |
| [6.&nbsp;&nbsp;&nbsp;&nbsp;RECORDS; ACCESS.](#ied3daec067804cea9c2d91e2431f024d) | [8](#ied3daec067804cea9c2d91e2431f024d) |
| [7.&nbsp;&nbsp;&nbsp;&nbsp;LIMITATIONS ON ACTIVITIES.](#i71ca5d16562846d281affd1021a77617) | [8](#i71ca5d16562846d281affd1021a77617) |
| [8.&nbsp;&nbsp;&nbsp;&nbsp;OTHER ACTIVITIES OF THE ADVISER.](#i7685a60991784a8982d313e8147c94ae) | [9](#i7685a60991784a8982d313e8147c94ae) |
| [9.&nbsp;&nbsp;&nbsp;&nbsp;DIRECTORS AND OFFICERS.](#i0bcf10e8ab62475da33c7c230d937f20) | [10](#i0bcf10e8ab62475da33c7c230d937f20) |
| [10.&nbsp;&nbsp;&nbsp;&nbsp;MANAGEMENT FEE.](#i0715b7f1fe294c89b9dac6deca254fa6) | [10](#i0715b7f1fe294c89b9dac6deca254fa6) |
| [11.&nbsp;&nbsp;&nbsp;&nbsp;EXPENSES.](#i4ce084a67fb547259b53d4768089ae33) | [11](#i4ce084a67fb547259b53d4768089ae33) |
| [12.&nbsp;&nbsp;&nbsp;&nbsp;OTHER SERVICES.](#icb660f472b204c29bafe60ec87515c18) | [13](#icb660f472b204c29bafe60ec87515c18) |
| [13.&nbsp;&nbsp;&nbsp;&nbsp;REIMBURSEMENT TO THE ADVISER.](#i4886fa45e8dd4062b5f2ccbcd82028bb) | [13](#i4886fa45e8dd4062b5f2ccbcd82028bb) |
| [14.&nbsp;&nbsp;&nbsp;&nbsp;NO JOINT VENTURE.](#ie1ebc2a2a0084a64aa3a6ec2c32e3a9b) | [14](#ie1ebc2a2a0084a64aa3a6ec2c32e3a9b) |
| [15.&nbsp;&nbsp;&nbsp;&nbsp;TERM OF AGREEMENT.](#i935604cc1bc044bfa817767e7db6bf82) | [14](#i935604cc1bc044bfa817767e7db6bf82) |
| [16.&nbsp;&nbsp;&nbsp;&nbsp;TERMINATION BY THE PARTIES.](#i16c3f5f08bb041cba8d0235f3b85bae9) | [14](#i16c3f5f08bb041cba8d0235f3b85bae9) |
| [17.&nbsp;&nbsp;&nbsp;&nbsp;ASSIGNMENT.](#ib456afdae8704768ad10f79caaa1ba44) | [14](#ib456afdae8704768ad10f79caaa1ba44) |
| [18.&nbsp;&nbsp;&nbsp;&nbsp;PAYMENTS TO AND DUTIES OF ADVISER UPON TERMINATION.](#ie564b470173c4abcbdece5e89b062572) | [14](#ie564b470173c4abcbdece5e89b062572) |
| [19.&nbsp;&nbsp;&nbsp;&nbsp;INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP.](#id501d43a2efc45e9a99fa2c11e822224) | [15](#id501d43a2efc45e9a99fa2c11e822224) |
| [20.&nbsp;&nbsp;&nbsp;&nbsp;INDEMNIFICATION BY ADVISER.](#i3a8b6e8aa016425ebf7fb14391463ca4) | [15](#i3a8b6e8aa016425ebf7fb14391463ca4) |
| [21.&nbsp;&nbsp;&nbsp;&nbsp;NON-SOLICITATION.](#ib20f6d4be2714f16acdb894e9579c34e) | [15](#ib20f6d4be2714f16acdb894e9579c34e) |
| [22.&nbsp;&nbsp;&nbsp;&nbsp;REGISTRATION RIGHTS.](#idc973f3499df4ff3a3ca7a82d5327dea) | [15](#idc973f3499df4ff3a3ca7a82d5327dea) |
| [23.&nbsp;&nbsp;&nbsp;&nbsp;INITIAL INVESTMENT.](#i2a1b19b405754e6dbeac7ce3061cecb5) | [16](#i2a1b19b405754e6dbeac7ce3061cecb5) |
| [24.&nbsp;&nbsp;&nbsp;&nbsp;MISCELLANEOUS.](#iff11b35e42bc4063ad9bbf3fedf4541a) | [16](#iff11b35e42bc4063ad9bbf3fedf4541a) |

---

------

**<u>AGREEMENT</u>**

THIS SIXTH AMENDED AND RESTATED ADVISORY AGREEMENT (this "<u>Agreement</u>"), dated as of the 11th day of August, 2025 (the "<u>Effective Date</u>"), is by and among Sculptor Diversified Real Estate Income Trust, Inc., a Maryland corporation (the "<u>Company</u>"), Sculptor Diversified REIT Operating Partnership LP, a Delaware limited partnership (the "<u>Operating Partnership</u>"), and Sculptor Advisors LLC, a Delaware limited liability company (the "<u>Adviser</u>"). This Agreement amends and restates the Fifth Amended and Restated Advisory Agreement (the "<u>Fifth Amended and Restated Agreement</u>") dated as of June 21, 2025. Capitalized terms used herein shall have the meanings ascribed to them in Section 1 below.

**W I T N E S S E T H** 

WHEREAS, the Company intends to qualify as a REIT, and to invest its funds in investments permitted by the terms of Sections 856 through 860 of the Code;

WHEREAS, the Company is the general partner of the Operating Partnership and intends to conduct all of its business and make all or substantially all Investments through the Operating Partnership;

WHEREAS, the Company and the Operating Partnership desire to avail themselves of the knowledge, experience, sources of information, advice, assistance and certain facilities available to the Adviser and to have the Adviser undertake the duties and responsibilities hereinafter set forth, on behalf of, and subject to the supervision of, the Board, all as provided herein;

WHEREAS, the Adviser is willing to undertake to render such services, subject to the supervision of the Board, on the terms and conditions hereinafter set forth; and

WHEREAS, the parties wish to amend and restate the Fifth Amended and Restated Agreement in its entirety in the manner and as hereinafter set forth.

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, the parties agree that the Fifth Amended and Restated Agreement shall be amended and restated as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.**DEFINITIONS.** As used in this Agreement, the following terms have the definitions hereinafter indicated:

"**<u>Acquisition Expenses</u>**" shall have the meaning set forth in the Corporate Governance Guidelines.

"**<u>Adviser</u>**" shall mean Sculptor Advisors LLC, a Delaware limited liability company.

"**<u>Adviser Expenses</u>**" shall have the meaning set forth in Section 11(a).

"**<u>Affiliate</u>**" shall have the meaning set forth in the Charter.

"**<u>Average Invested Assets</u>**" shall have the meaning set forth in the Corporate Governance Guidelines.

"**<u>Board</u>**" shall mean the board of directors of the Company, as of any particular time.

------

"**<u>Business Day</u>**" shall have the meaning set forth in the Charter.

"**<u>Bylaws</u>**" shall mean the bylaws of the Company, as amended from time to time.

"**<u>Cause</u>**" shall mean, with respect to the termination of this Agreement, fraud, criminal conduct, willful misconduct or willful or grossly negligent breach of fiduciary duty by the Adviser in connection with performing its duties hereunder.

"**<u>Change of Control</u>**" shall mean any event (including, without limitation, issue, transfer or other disposition of shares of capital stock of the Company or equity interests in the Operating Partnership, merger, share exchange or consolidation) after which any "person" (as that term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) is or becomes the "beneficial owner" (as defined in Rule 13d-3 of the Securities Exchange Act of 1934, as amended), directly or indirectly, of securities of the Company or the Operating Partnership representing greater than 50% or more of the combined voting power of Company's or the Operating Partnership's then outstanding securities, respectively; provided, that, a Change of Control shall not be deemed to occur as a result of any widely distributed public offering of the Shares.

"**<u>Charter</u>**" shall mean the Articles of Incorporation of the Company filed with the Maryland State Department of Assessments and Taxation in accordance with the Maryland General Corporation Law, as amended from time to time.

"**<u>Class A Common Shares</u>**" shall have the meaning set forth in the Charter.

"**<u>Class AA Common Shares</u>**" shall have the meaning set forth in the Charter.

"**<u>Class D Common Shares</u>**" shall have the meaning set forth in the Charter.

"**<u>Class E Common Shares</u>**" shall have the meaning set forth in the Charter.

"**<u>Class F Common Shares</u>**" shall have the meaning set forth in the Charter.

"**<u>Class FF Common Shares</u>**" shall have the meaning set forth in the Charter.

"**<u>Class I Common Shares</u>**" shall have the meaning set forth in the Charter.

"**<u>Class I-S Common Shares</u>**" shall have the meaning set forth in the Charter.

"**<u>Class S Common Shares</u>**" shall have the meaning set forth in the Charter.

"**<u>Class A NAV per Share</u>**" shall have the meaning set forth in the Charter.

"**<u>Class AA NAV per Share</u>**" shall have the meaning set forth in the Charter.

"**<u>Class D NAV per Share</u>**" shall have the meaning set forth in the Charter.

"**<u>Class E NAV per Share</u>**" shall have the meaning set forth in the Charter.

"**<u>Class F NAV per Share</u>**" shall have the meaning set forth in the Charter.

------

"**<u>Class FF NAV per Share</u>**" shall have the meaning set forth in the Charter.

"**<u>Class I NAV per Share</u>**" shall have the meaning set forth in the Charter.

"**<u>Class I-S NAV Per Share</u>**" shall have the meaning set forth in the Charter.

"**<u>Class S NAV per Share</u>**" shall have the meaning set forth in the Charter.

"**<u>Code</u>**" shall mean the Internal Revenue Code of 1986, as amended.

"**<u>Common Shares</u>**" shall have the meaning set forth in the Charter.

"**<u>Company</u>**" shall have the meaning set forth in the preamble of this Agreement.

"**<u>Company Management Fee</u>**" shall have the meaning set forth in Section 10(a).

"**<u>Corporate Governance Guidelines</u>**" shall mean the corporate governance guidelines adopted by the Board, as amended from time to time.

"**<u>Dealer Manager</u>**" shall have the meaning set forth in the Charter.

"**<u>Director</u>**" shall mean a member of the Board.

"**<u>Distribution Fee</u>**" shall have the meaning set forth in the Charter.

"**<u>Distributions</u>**" shall have the meaning set forth in the Charter.

"**<u>Effective Date</u>**" shall have the meaning set forth in the preamble of this Agreement.

"**<u>Excess Amount</u>**" shall have the meaning set forth in Section 13.

"**<u>Exchange Act</u>**" shall have the meaning set forth in the Charter.

"**<u>Expense Year</u>**" shall have the meaning set forth in Section 13.

"**<u>GAAP</u>**" shall mean generally accepted accounting principles as in effect in the United States of America from time to time.

"**<u>Gross Proceeds</u>**" shall mean the aggregate purchase price of all Shares sold for the account of the Company through an Offering, without deduction for Selling Commissions.

"**<u>Independent Appraiser</u>"** shall have the meaning set forth in the Charter.

"**<u>Independent Director</u>**" shall have the meaning set forth in the Corporate Governance Guidelines.

"**<u>Initial Investment</u>**" shall have the meaning set forth in Section 23.

"**<u>Investment Company Act</u>**" shall mean the Investment Company Act of 1940, as amended.

------

"**<u>Investment Guidelines</u>**" shall mean the investment guidelines adopted by the Board, as amended from time to time, pursuant to which the Adviser has discretion to acquire and dispose of Investments for the Company without the prior approval of the Board.

"**<u>Investments</u>**" shall mean any investments by the Company or the Operating Partnership, directly or indirectly, in Property, Real Estate Related Assets or other assets.

"**<u>Joint Ventures</u>**" shall have the meaning set forth in the Charter.

"**<u>Management Fee</u>**" shall have the meaning set forth in Section 10(a).

"**<u>Management Fee Shares</u>**" shall have the meaning set forth in Section 22.

"**<u>Mortgage</u>**" shall have the meaning set forth in the Charter.

"**<u>NAV</u>**" shall mean the net asset value of the Company or its Shares, or the Operating Partnership or its units, as applicable, calculated pursuant to the Valuation Guidelines.

"**<u>Net Income</u>**" shall have the meaning set forth in the Corporate Governance Guidelines.

"**<u>Offering</u>**" shall have the meaning set forth in the Charter.

"**<u>OP Management Fee</u>**" shall have the meaning set forth in Section 10(a).

"**<u>Operating Partnership</u>**" shall have the meaning set forth in the preamble of this Agreement.

"**<u>Operating Partnership Agreement</u>**" shall mean the Limited Partnership Agreement of the Operating Partnership, as amended from time to time.

"**<u>Organization and Offering Expenses</u>**" shall have the meaning set forth in the Charter.

"**<u>Other Sculptor Accounts</u>**" shall mean investment funds, REITs, vehicles, products and/or other similar arrangements advised or managed, directly or indirectly, by Sculptor, whether currently in existence or subsequently established.

**"<u>Performance Allocation</u>"** shall refer to each of the Performance Allocation, the Class A Performance Allocation, the Class F Performance Allocation and the Class I-S Performance Allocation, in each case as defined in the Operating Partnership Agreement, and shall represent a special distribution amount equal to a formula based on the performance of the Operating Partnership that the special limited partner of the Operating Partnership will be entitled to receive.

"**<u>Person</u>**" shall mean an individual, corporation, business trust, estate, trust, partnership, joint venture, limited liability company or other legal entity.

"**<u>Property</u>**" shall have the meaning set forth in the Charter.

"**<u>Real Estate Related Securities</u>**" shall have the meaning set forth in the Charter.

"**<u>Real Estate Related Assets</u>**" shall mean any investments by the Company or the Operating Partnership in Mortgages and Real Estate Related Securities.

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"**<u>REIT</u>**" shall have the meaning set forth in the Charter.

"**<u>Sculptor</u>**" shall mean Sculptor Capital Management, Inc.

"**<u>Securities Act</u>**" shall have the meaning set forth in the Charter.

"**<u>Selling Commissions</u>**" shall have the meaning set forth in the Charter.

"**<u>Shares</u>**" shall have the meaning set forth in the Charter.

"**<u>Stockholders</u>**" shall have the meaning set forth in the Charter.

"**<u>Termination Date</u>**" shall mean the date of termination of this Agreement or expiration of this Agreement in the event this Agreement is not renewed for an additional term.

"**<u>Total Operating Expenses</u>**" shall have the meaning set forth in the Corporate Governance Guidelines.

"**<u>2%/25% Guidelines</u>**" shall have the meaning set forth in the Corporate Governance Guidelines.

"**<u>Valuation Guidelines</u>**" shall mean the valuation guidelines adopted by the Board, as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.**APPOINTMENT.** The Company and the Operating Partnership hereby appoint the Adviser to serve as their investment adviser on the terms and conditions set forth in this Agreement, and the Adviser hereby accepts such appointment. By accepting such appointment, the Adviser acknowledges that it has a contractual and fiduciary responsibility to the Company and the Stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.**DUTIES OF THE ADVISER.** Subject to the oversight of the Board and the terms and conditions of this Agreement (including the Investment Guidelines) and consistent with the provisions of the Company's most recent private placement memorandum or prospectus for the Shares, the Charter and Bylaws and the Operating Partnership Agreement, the Adviser will have plenary authority with respect to the management of the business and affairs of the Company and the Operating Partnership and will be responsible for implementing the investment strategy of the Company and the Operating Partnership. The Adviser will use commercially reasonable efforts to perform (or cause to be performed through one or more of its Affiliates or third parties) such services and activities relating to the selection of investments and rendering investment advice to the Company and the Operating Partnership as may be appropriate or otherwise mutually agreed from time to time, which may include, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)serving as an advisor to the Company and the Operating Partnership with respect to the establishment and periodic review of the Investment Guidelines for the Company's and the Operating Partnership's investments, financing activities and operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)sourcing, evaluating and monitoring the Company's and Operating Partnership's investment opportunities and executing the acquisition, management, financing and disposition of the Company's and Operating Partnership's assets, in accordance with the Company's Investment Guidelines, policies and objectives and limitations, subject to oversight by the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)with respect to prospective acquisitions, purchases, sales, exchanges or other dispositions of Investments, conducting negotiations on the Company's and Operating Partnership's behalf with sellers, purchasers, and other counterparties and, if applicable, their respective agents, advisors and representatives, and determining the structure and terms of such transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)providing the Company with portfolio management and other related services;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)serving as the Company's advisor with respect to decisions regarding any of the Company's financings, hedging activities or borrowings, including (1) assisting the Company in developing criteria for debt and equity financing that is specifically tailored to the Company's investment objectives, and (2) advising the Company with respect to obtaining appropriate financing for the Investments (which, in accordance with applicable law and the terms and conditions of this Agreement and the Charter and Bylaws, may include financing by the Adviser or its Affiliates) and (3) negotiating and entering into, on the Company's and Operating Partnership's behalf, financing arrangements (including one or more credit facilities), repurchase agreements, interest rate or currency swap agreements, hedging arrangements, foreign exchange transactions, derivative transactions, and other agreements and instruments required or appropriate in connection with the Company's and Operating Partnership's activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)engaging and supervising, on the Company's and Operating Partnership's behalf and at the Company's and Operating Partnership's expense, independent contractors, advisors, consultants, attorneys, accountants, administrators, auditors, appraisers, independent valuation agents, escrow agents and other service providers (which may include Affiliates of the Adviser) that provide various services with respect to the Company and Operating Partnership, including, without limitation, management companies, on-site managers, building and maintenance personnel, investment banking, securities brokerage, mortgage brokerage, credit analysis, risk management services, asset management services, loan servicing, other financial, legal or accounting services, due diligence services, underwriting review services, and all other services (including custody and transfer agent and registrar services) as may be required relating to the Company's and Operating Partnership's activities or Investments (or potential Investments);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)coordinating and managing operations of any Joint Venture or co-investment interests held by the Company or Operating Partnership and conducting matters with the Joint Venture or co-investment partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)communicating on the Company's and Operating Partnership's behalf with the holders of any of the Company's equity or debt securities as required to satisfy the reporting and other requirements of any governmental bodies or agencies or trading markets and to maintain effective relations with such holders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)advising the Company in connection with policy decisions to be made by the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)engaging one or more subadvisors with respect to the management of the Company and Operating Partnership, including, where appropriate, Affiliates of the Adviser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)evaluating and recommending to the Board hedging strategies and engaging in hedging activities on the Company's and Operating Partnership's behalf, consistent with the Company's qualification as a REIT and with the Investment Guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)investing and reinvesting any moneys and securities of the Company and the Operating Partnership (including investing in short-term investments pending investment in other investments, payment of fees, costs and expenses, or payments of dividends or distributions to the Company's stockholders and partners) and advising the Company as to the Company's and Operating Partnership's capital structure and capital raising;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)assisting the Company in determining valuations for the Company's Property and Real Estate Related Assets, calculating the Class A NAV per Share, Class AA NAV per Share, Class S NAV per Share, Class D NAV per Share, Class I NAV per Share, Class F NAV per Share, Class FF NAV per Share, Class E NAV per Share and Class I-S NAV per Share in accordance with the Valuation Guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)providing input in connection with the third-party appraisals and valuations obtained pursuant to the Valuation Guidelines;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)monitoring the Company's Property and Real Estate Related Assets for events that may be expected to have a material impact on the most recent estimated values;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)monitoring each third-party expert's valuation process to ensure that it complies with the Valuation Guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)delivering to, or maintain on behalf of, the Company copies of appraisals obtained in connection with the investments in any Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)placing, or arranging for the placement of, orders of Real Estate Related Assets pursuant to the Adviser's investment determinations for the Company and the Operating Partnership either directly with the issuer or with a broker or dealer (including any Affiliated broker or dealer);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)advising the Company regarding the Company's ability to elect REIT status, and thereafter maintenance of the Company's status as a REIT, and monitoring compliance with the various REIT qualification tests and other rules set out in the Code and the regulations promulgated thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) taking all necessary actions to enable the Company and the Operating Partnership to make required tax filings and reports, including soliciting Stockholders for required information to the extent provided by the REIT provisions of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)assisting the Company in maintaining the registration of the Shares under federal and state securities laws with respect to any Offering and complying with all federal, state and local regulatory requirements applicable to the Company with respect to any Offering and the Company's business activities (including the Sarbanes-Oxley Act of 2002, as amended), including, with respect to any Offering, preparing or causing to be prepared (as applicable) the private placement memorandum, prospectus, supplements to the private placement memorandum or prospectus, post-effective amendments to the registration statement for any Offering and financial statements required under applicable regulations and contractual undertakings and all reports and documents, if any, required under the Securities Act and the Exchange Act; 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;(v)performing such other services from time to time in connection with the management of the Company's investment activities as the Board shall reasonably request and/or the Adviser shall deem appropriate under the particular circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.**AUTHORITY OF ADVISER.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Pursuant to the terms of this Agreement (including the restrictions included in this Section 4 and in Section 7), and subject to the continuing and exclusive authority of the Board over the management of the Company, the Board (by virtue of its approval of this Agreement and authorization of the execution hereof by the officers of the Company) hereby delegates to the Adviser the authority to take, or cause to be taken, any and all actions and to execute and deliver any and all agreements, certificates, assignments, instruments or other documents and to do any and all things that, in the judgment of the Adviser, may be necessary or advisable in connection with the Adviser's duties described in Section 3, including the making of any Investment that fits within the Company's Investment Guidelines, objectives, policies and limitations and within the discretionary limits and authority as granted to the Adviser from time to time by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Notwithstanding the foregoing, any Investment that does not fit within the Investment Guidelines will require the prior approval of the Board or any duly authorized committee of the Board, as the case may be. Except as otherwise set forth herein, in the Investment Guidelines or in the Charter, any Investment that fits within the Investment Guidelines may be made by the Adviser on the Company's or the Operating Partnership's behalf without the prior approval of the Board or any duly authorized committee of the Board.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The prior approval of a majority of the Directors (including, following the commencement of the first Offering, a majority of the Independent Directors) not otherwise interested in the transaction will be required for each transaction to which the Adviser or its Affiliates is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Board will review the Investment Guidelines with sufficient frequency and at least annually and may, at any time upon the giving of notice to the Adviser, amend the Investment Guidelines; *provided*, *however*, that such modification or revocation shall be effective upon receipt by the Adviser or such later date as is specified by the Board and included in the notice provided to the Adviser and such modification or revocation shall not be applicable to investment transactions to which the Adviser has committed the Company or the Operating Partnership prior to the date of receipt by the Adviser of such notification, or if later, the effective date of such modification or revocation specified by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Adviser may retain, for and on behalf, and at the sole cost and expense, of the Company, such services as the Adviser deems necessary or advisable in connection with the management and operations of the Company, which may include Affiliates of the Adviser; provided, that any such services may only be provided by Affiliates to the extent such services are approved by a majority of the Directors (including, following the commencement of the first Offering, a majority of the Independent Directors) not otherwise interested in such transactions as being fair and reasonable to the Company and on terms and conditions not less favorable to the Company than those available from non-Affiliated third parties. In performing its duties under Section 3, the Adviser shall be entitled to rely reasonably on qualified experts and professionals (including, without limitation, accountants, legal counsel and other professional service providers) hired by the Adviser at the Company's sole cost and expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.**BANK AND BROKERAGE ACCOUNTS.** The Adviser may establish and maintain one or more bank or brokerage accounts in the name of the Company and the Operating Partnership and any subsidiary thereof and may collect and deposit into any such account or accounts, and disburse from any such account or accounts, any money on behalf of the Company or the Operating Partnership, consistent with the Adviser's authority under this Agreement, provided that no funds shall be commingled with the funds of the Adviser; and the Adviser shall from time to time render, upon request by the Board, its audit committee or the auditors of the Company, appropriate accountings of such collections and payments to the Board, its audit committee and the auditors of the Company, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.**RECORDS; ACCESS.** The Adviser shall maintain appropriate records of its activities hereunder and make such records available for inspection by the Board and by counsel, auditors and authorized agents of the Company, at any time or from time to time during normal business hours. The Adviser shall at all reasonable times have access to the books and records of the Company and the Operating Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.**LIMITATIONS ON ACTIVITIES.** The Adviser shall refrain from any action that, in its sole judgment made in good faith, (i) is not in compliance with the Investment Guidelines, (ii) would adversely and materially affect the qualification of the Company as a REIT under the Code or the Company's and the Operating Partnership's status as entities excepted from registration under the Investment Company Act, or (iii) would materially violate any law, rule or regulation of any governmental body or agency having jurisdiction over the Company and the Operating Partnership or of any exchange on which the securities of the Company may be listed or that would otherwise not be permitted by the Charter, Bylaws or Operating Partnership Agreement. If the Adviser is ordered to take any action by the Board, the Adviser shall seek to notify the Board if it is the Adviser's reasonable judgment that such action would adversely and materially affect such status or violate any such law, rule or regulation or the Charter, Bylaws or Operating Agreement. Notwithstanding the foregoing, neither the Adviser nor any of its Affiliates shall be liable to the Company, the Operating Partnership, the Board, or the Stockholders for any act or omission by the Adviser or any of its Affiliates, except as provided in Section 20 of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.**OTHER ACTIVITIES OF THE ADVISER.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Nothing in this Agreement shall (i) prevent the Adviser or any of its Affiliates, officers, directors or employees from engaging in other businesses or from rendering services of any kind to any other Person, whether or not the investment objectives or policies of any such other Person are similar to those of the Company, including, without limitation, the managing of any Other Sculptor Accounts or the sponsorship of other programs, (ii) in any way bind or restrict the Adviser or any of its Affiliates, officers, directors or employees from buying, selling or trading any securities or commodities for their own accounts or for the account of others for whom the Adviser or any of its Affiliates or employees may be acting, or (iii) prevent the Adviser or any of its Affiliates, officers, directors or employees from receiving fees or other compensation or profits from such activities described in this Section 8(a) which shall be for the sole benefit of the Adviser (and/or its Affiliates or employees). While information and recommendations supplied to the Company shall, in the Adviser's reasonable and good faith judgment, be appropriate under the circumstances and in light of the investment objectives and policies of the Company, such information and recommendations may be different in certain material respects from the information and recommendations supplied by the Adviser or any Affiliate of the Adviser to others (including, for greater certainty, the Other Sculptor Accounts and their investors, as described more fully in Section 8(b)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Adviser and the Company acknowledge and agree that, notwithstanding anything to the contrary contained herein, (i) Affiliates of the Adviser advise and manage Other Sculptor Accounts and sponsor other programs and may in the future sponsor, advise and/or manage additional Other Sculptor Accounts and other programs, (ii) this overlap will from time to time create conflicts of interest and (iii) in certain circumstances investment opportunities suitable for the Company will not be presented to the Company. The Adviser shall share information reasonably requested so that the Board can confirm that the allocation of investment opportunities among the Company and Other Sculptor Accounts is consistent with the method described in the private placement memorandum or prospectus and applied fairly to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)In connection with the services of the Adviser hereunder, the Company and the Board acknowledge and agree that (i) as part of Sculptor's regular businesses, personnel of the Adviser and its Affiliates may from time-to-time work on other projects and matters (including with respect to one or more Other Sculptor Accounts or other programs), and that conflicts may arise with respect to the allocation of personnel between the Company on the one hand and one or more Other Sculptor Accounts or other programs and the Adviser and such other Affiliates on the other hand, (ii) unless prohibited by the Corporate Governance Guidelines or the Charter, Other Sculptor Accounts may invest, from time to time, in investments in which the Company also invests (including at a different level of an issuer's capital structure (*e.g*., an investment by an Other Sculptor Account in a debt or mezzanine interest with respect to the same entity in which the Company owns an equity interest or vice versa) or in a different tranche of equity or debt with respect to an issuer in which the Company has an interest) and while Sculptor and its Affiliates will seek to resolve any such conflicts in a fair and reasonable manner (subject to any priorities of Other Sculptor Account) in accordance with its prevailing policies and procedures with respect to conflicts resolution among Other Sculptor Accounts generally, such transactions are not required to be presented to the Board or any committee thereof for approval (unless otherwise required by the Charter, Corporate Governance Guidelines or Investment Guidelines), and there can be no assurance that any conflicts will be resolved in the Company's favor, and (iii) the terms and conditions of the governing agreements of such Other Sculptor Accounts (including with respect to the economic, reporting, and other rights afforded to investors in such Other Sculptor Accounts) are materially different from the terms and conditions applicable to the Company and the Stockholders, and neither the Company nor the Stockholders (in such capacity) shall have the right to receive the benefit of any such different terms applicable to investors in such Other Sculptor Accounts as a result of an investment in the Company or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Adviser is not permitted to consummate on the Company's behalf any transaction that involves (i) the sale of any investment to or (ii) the acquisition of any investment from Sculptor, any Other Sculptor Account or any of their Affiliates unless such transaction is approved by a majority of the Directors, including, following the commencement of the first Offering, a majority of the

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Independent Directors, not otherwise interested in such transaction as being fair and reasonable to the Company. In addition, for any acquisition of Property by the Company from Sculptor, any Other Sculptor Accounts or any of their Affiliates, the Company's purchase price will be limited to the cost of the Property to the Affiliate, including acquisition-related expenses, or if substantial justification exists, the current appraised value of the Property as determined by an Independent Appraiser. In addition, the Company may enter into Joint Ventures with Other Sculptor Accounts, or with Sculptor, the Adviser, one or more Directors, or any of their respective Affiliates, only if a majority of the Directors (including, following the commencement of the first Offering, a majority of the Independent Directors) not otherwise interested in the transaction approve the transaction as being fair and reasonable to the Company and on substantially the same, or more favorable, terms and conditions as those received by other joint venture partners. The Adviser will seek to resolve such conflicts of interest in a fair and reasonable manner in accordance with its policies and procedures with respect to conflicts resolution among Other Sculptor Accounts generally, but only those transactions set forth in this Section 8(d) will be expressly required to be presented for approval to the Independent Directors or any committee thereof (unless otherwise required by the Charter or the Investment Guidelines) and occurring after the commencement of the first Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)For the avoidance of doubt, it is understood that neither the Company nor the Board has the authority to determine the salary, bonus or any other compensation paid by the Adviser to any director, officer, member, partner, employee or stockholder of the Adviser or its Affiliates, including any person who is also a director or officer employee of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.**DIRECTORS AND OFFICERS.** Subject to Section 7 and to restrictions advisable with respect to the qualification of the Company as a REIT, directors, managers, officers and employees of the Adviser or an Affiliate of the Adviser or any corporate parent of an Affiliate, may serve as a Director or officer of the Company, except that no director, officer or employee of the Adviser or its Affiliates who also is a Director or officer of the Company shall receive any compensation from the Company for serving as a Director or officer other than (a) reasonable reimbursement for travel and related expenses incurred in attending meetings of the Board or (b) as otherwise approved by the Board, including, following the commencement of the first Offering, a majority of the Independent Directors, and no such Director shall be deemed an Independent Director for purposes of satisfying the Director independence requirement set forth in the Charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.**MANAGEMENT FEE.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Following the acquisition of the Company's first material asset, the Company will pay the Adviser a management fee (the "<u>Company Management Fee</u>") equal to 0.50% of the aggregate NAV of the Company's Class F Common Shares and Class FF Common Shares, 0.75% of the aggregate NAV of the Company's Class A Common Shares, Class AA Common Shares and Class I-S Common Shares and 1.25% of the aggregate NAV of the Company's Class S Common Shares, Class D Common Shares and Class I Common Shares per annum payable monthly, before giving effect to any accruals for the Management Fee, the Distribution Fees, the Performance Allocation or any Distributions payable on the Shares. No Company Management Fee will be paid at any time with respect to Class E Common Shares. The Operating Partnership will pay the Adviser a management fee (the "<u>OP</u> <u>Management Fee</u>" and, together with the Company Management Fee, the "<u>Management Fee</u>") equal to 1.25% of the aggregate NAV of the Operating Partnership attributable to Operating Partnership units held by unitholders other than the Company. No OP Management Fee will be paid at any time with respect to Class E units of the Operating Partnership. (The above amounts will be prorated for any portion of a month if the Company's first material acquisition occurs after the beginning of a calendar month.) The Adviser shall receive the Management Fees as compensation for services rendered hereunder, monthly in arrears; provided that with the Adviser's consent the Company and the Operating Partnership may defer such payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Company Management Fee may be paid, at the Adviser's election, in cash or cash equivalent aggregate NAV amounts of Class E Common Shares or Class E units of the Operating Partnership. The OP Management Fee may be paid, at the Adviser's election, in cash or cash equivalent aggregate NAV amounts of Class E units of the Operating Partnership. If the Adviser elects to receive any

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portion of its Management Fee in Class E Common Shares or Class E units of the Operating Partnership, the Adviser may elect to have the Company or the Operating Partnership repurchase such Class E Common Shares or Class E units of the Operating Partnership from the Adviser at a later date at a repurchase price per Class E Common Share or Class E unit, as applicable, equal to the NAV per Class E Common Share. Class E Common Shares and Class E units of the Operating Partnership obtained by the Adviser will not be subject to the repurchase limits of the Company's share repurchase plan or any reduction or penalty for an early repurchase. The Operating Partnership will repurchase any such Operating Partnership units for cash unless the Board determines that any such repurchase for cash would be prohibited by applicable law or the Charter, in which case such Operating Partnership units will be repurchased for Class E Common Shares with an equivalent aggregate NAV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)In the event this Agreement is terminated or its term expires without renewal, the Adviser will be entitled to receive its prorated Management Fee through the date of termination. Such pro ration shall take into account the number of days of any partial calendar month or calendar year for which this Agreement was in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)In the event the Company or the Operating Partnership commences a liquidation of its Investments during any calendar year, the Company and the Operating Partnership will pay the Adviser the Management Fee from the proceeds of the liquidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.**EXPENSES.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Subject to Sections 4(e) and 11(b), the Adviser shall be responsible for the expenses related to any and all personnel of the Adviser who provide investment advisory services to the Company pursuant to this Agreement (including, without limitation, each of the officers of the Company and any Directors who are also directors, officers or employees of the Adviser or any of its Affiliates) as well as any expenses related to personnel of the Dealer Manager that the Adviser elects to pay, including, without limitation, salaries, bonus and other wages, payroll taxes and the cost of employee benefit plans of such personnel, costs of insurance with respect to such personnel and travel, meal, lodging and entertainment expenses related to such personnel ("<u>Adviser Expenses</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)In addition to the compensation paid to the Adviser pursuant to Section 10 hereof, the Company or the Operating Partnership shall pay all of its costs and expenses directly or reimburse the Adviser or its Affiliates for costs and expenses of the Adviser and its Affiliates incurred on behalf of the Company (including, when such costs and expenses are for the benefit of the Company or the Operating Partnership on the one hand and the Adviser or its Affiliates or Other Sculptor Accounts on the other hand, the Company's and the Operating Partnership's allocable share of such costs and expenses), other than Adviser Expenses. Without limiting the generality of the foregoing, it is specifically agreed that the following costs and expenses of the Company or the Operating Partnership are not Adviser Expenses and shall be paid by the Company or the Operating Partnership and shall not be paid by the Adviser or Affiliates of the Adviser:

&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;&nbsp;&nbsp;&nbsp;&nbsp;(i)Organization and Offering Expenses;

&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;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Acquisition Expenses, subject to the limitations set forth in the Charter;

&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;&nbsp;&nbsp;&nbsp;&nbsp;(iii)fees, costs and expenses in connection with the issuance and transaction costs incident to the trading, settling, disposition and financing of Investments (whether or not consummated), including brokerage commissions, hedging costs, prime brokerage fees, custodial expenses, clearing and settlement charges, forfeited deposits, and other investment costs fees and expenses actually incurred in connection with the pursuit, making, holding, settling, monitoring or disposing of actual or potential investments;

&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;&nbsp;&nbsp;&nbsp;&nbsp;(iv)the actual cost of goods and services used by the Company and obtained from Persons not Affiliated with the Adviser, including fees paid to administrators, consultants, attorneys, technology providers and other services providers, and brokerage fees paid in connection with the purchase and sale of Investments;

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&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;&nbsp;&nbsp;&nbsp;&nbsp;(v)all fees, costs and expenses of legal, tax, accounting, consulting, auditing (including internal audit), finance, administrative, investment banking, capital market, transfer agency, escrow agency, custody, prime brokerage, asset management, property management, data or technology services and other non-investment advisory services rendered to the Company by the Adviser or its Affiliates in compliance with Section 4(e);

&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;&nbsp;&nbsp;&nbsp;&nbsp;(vi)expenses of managing and operating the Company's and the Operating Partnership's Properties, whether payable to an Affiliate of the Adviser or a non-Affiliated Person;

&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;&nbsp;&nbsp;&nbsp;&nbsp;(vii)the compensation and expenses of the Directors (excluding those directors who are directors, officers or employees of the Adviser) and the cost of liability insurance to indemnify Directors and the Company's officers;

&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;&nbsp;&nbsp;&nbsp;&nbsp;(viii)interest and fees and expenses arising out of borrowings made by the Company, including, but not limited to, costs associated with the establishment and maintenance of any of the Company's credit facilities, other financing arrangements, or other indebtedness of the Company (including commitment fees, accounting fees, legal fees, closing and other similar costs) or any of the Company's securities offerings;

&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;&nbsp;&nbsp;&nbsp;&nbsp;(ix)expenses connected with communications to holders of the Company's securities or securities of the Subsidiaries and other bookkeeping and clerical work necessary in maintaining relations with holders of such securities and in complying with the continuous reporting and other requirements of governmental bodies or agencies, including, without limitation, all costs of preparing and filing required reports with the SEC, the costs payable by the Company to any transfer agent and registrar, expenses in connection with the listing and/or trading of the Company's securities on any exchange, the fees payable by the Company to any such exchange in connection with its listing, costs of preparing, printing and mailing the Company's annual report to the Stockholders and proxy materials with respect to any meeting of the Stockholders and any other reports or related statements;

&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;&nbsp;&nbsp;&nbsp;&nbsp;(x)the Company's allocable share of costs associated with technology-related expenses, including without limitation, any computer software or hardware, electronic equipment or purchased information technology services from third-party vendors or Affiliates of the Adviser, technology service providers and related software/hardware utilized in connection with the Company's investment and operational activities;

&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;&nbsp;&nbsp;&nbsp;&nbsp;(xi)the Company's allocable share of expenses incurred by managers, officers, personnel and agents of the Adviser for travel on the Company's behalf and other out-of-pocket expenses incurred by them in connection with the purchase, financing, refinancing, sale or other disposition of an Investment;

&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;&nbsp;&nbsp;&nbsp;&nbsp;(xii)expenses relating to compliance-related matters and regulatory filings relating to the Company's activities (including, without limitation, expenses relating to the preparation and filing of Form PF, Form ADV, reports to be filed with the U.S. Commodity Futures Trading Commission, reports, disclosures, and/or other regulatory filings of the Adviser and its Affiliates relating to the Company's activities (including the Company's pro rata share of the costs of the Adviser and its Affiliates of regulatory expenses that relate to the Company and Other Sculptor Accounts));

&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;&nbsp;&nbsp;&nbsp;&nbsp;(xiii)the costs of any litigation involving the Company or the Operating Partnership or their assets and the amount of any judgments or settlements paid in connection therewith, directors and officers, liability or other insurance and indemnification or extraordinary expense or liability relating to the affairs of the Company;

&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;&nbsp;&nbsp;&nbsp;&nbsp;(xiv)all taxes and license fees;

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&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;&nbsp;&nbsp;&nbsp;&nbsp;(xv)all insurance costs incurred in connection with the operation of the Company's business except for the costs attributable to the insurance that the Adviser elects to carry for itself and its personnel;

&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;&nbsp;&nbsp;&nbsp;&nbsp;(xvi)expenses of managing, improving, developing, operating and selling Investments, whether payable to an Affiliate of the Adviser or a non-Affiliated Person;

&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;&nbsp;&nbsp;&nbsp;&nbsp;(xvii)expenses connected with the payments of interest, dividends or distributions in cash or any other form authorized or caused to be made by the Board to or on account of holders of the Company's securities, including, without limitation, in connection with any distribution reinvestment plan;

&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;&nbsp;&nbsp;&nbsp;&nbsp;(xviii)any judgment or settlement of pending or threatened proceedings (whether civil, criminal or otherwise) against the Company or the Operating Partnership, or against any Director or officer of the Company or in his or her capacity as such for which the Company is required to indemnify such Director or officer by any court or governmental agency;

&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;&nbsp;&nbsp;&nbsp;&nbsp;(xix)expenses incurred in connection with the formation, organization and continuation of any corporation, partnership, Joint Venture or other entity through which the Company's investments are made or in which any such entity invests; 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;&nbsp;&nbsp;&nbsp;&nbsp;(xx)expenses incurred related to industry association memberships or attending industry conferences on behalf of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Adviser may, at its option, elect not to seek reimbursement for certain expenses during a given period, which determination shall not be deemed to construe a waiver of reimbursement for similar expenses in future periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Any reimbursement payments owed by the Company to the Adviser may be offset by the Adviser against amounts due to the Company from the Adviser. Cost and expense reimbursement to the Adviser shall be subject to adjustment at the end of each calendar year in connection with the annual audit of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Notwithstanding the foregoing, the Adviser shall pay for all Organization and Offering Expenses (other than Selling Commissions and Distribution Fees) incurred prior to the first anniversary of the commencement of its first Offering. All Organization and Offering Expenses paid by the Adviser pursuant to this Section 11(e) shall be reimbursed by the Company to the Adviser in 60 equal monthly installments commencing with the first month following the first anniversary of the commencement of the Company's first Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.**OTHER SERVICES.** Should the Board request that the Adviser or any director, officer or employee thereof render services for the Company and the Operating Partnership other than set forth in Section 3, such services shall be separately compensated at such rates and in such amounts as are agreed by the Adviser and the Board, and shall not be deemed to be services pursuant to the terms of this Agreement; provided that following the commencement of the first Offering such rates and amounts shall be agreed by the Adviser and the Independent Directors, subject to the limitations contained in the Charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.**REIMBURSEMENT TO THE ADVISER.** Commencing four fiscal quarters after the Corporation's acquisition of its first asset, the Company shall not reimburse the Adviser at the end of any fiscal quarter for Total Operating Expenses that in the four consecutive fiscal quarters then ended (the "<u>Expense Year</u>") exceed (the "<u>Excess Amount</u>") the greater of 2.0% of Average Invested Assets or 25.0% of Net Income (the "<u>2%/25% Guidelines</u>") for such four fiscal quarters unless, (a) if prior to the commencement of the first Offering, the Board determines, or (b) if following the commencement of the first Offering, the Independent Directors determine that such Excess Amount was justified. If the Board does not or the Independent Directors do not, as applicable, approve such Excess Amount as being so justified, the Adviser shall reimburse the Company the amount by which the Total Operating Expenses

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exceeded the 2%/25% Guidelines. If the Company has a class of securities registered under the Exchange Act and if the Board determines or Independent Directors determine, as applicable, such Excess Amount was justified, then, within 60 days after the end of any fiscal quarter of the Company for which Total Operating Expenses for the Expense Year exceed the 2%/25% Guidelines, the Adviser, at the direction of the Board or Independent Directors, as applicable, shall cause such fact to be disclosed to the Stockholders in writing (or the Company shall disclose such fact to the Stockholders in the next quarterly report of the Company or by filing a Current Report on Form 8-K with the Securities and Exchange Commission within 60 days of such quarter end), together with an explanation of the factors the Board or Independent Directors, as applicable, considered in determining that such excess were justified. All figures used in the foregoing computation shall be determined in accordance with GAAP applied on a consistent basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.**NO JOINT VENTURE.** The Company and the Operating Partnership, on the one hand, and the Adviser on the other, are not partners or joint venturers with each other, and nothing in this Agreement shall be construed to make them such partners or joint venturers or impose any liability as such on either of them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.**TERM OF AGREEMENT.** This Agreement shall continue in force for a period of one year from June 21, 2025, subject to an unlimited number of successive one-year renewals upon mutual consent of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.**TERMINATION BY THE PARTIES.** This Agreement may be terminated (i) at the option of the Adviser immediately upon a Change of Control of the Company or Operating Partnership; (ii) at the option of the Adviser immediately upon a material breach of this Agreement by the Company or the Operating Partnership; (iii) immediately by the Company or the Operating Partnership for Cause or upon the bankruptcy of the Adviser; (iv) upon 60 days' written notice without Cause or penalty by a majority vote of the Board if prior to the commencement of the first Offering, or the Independent Directors if following the commencement of the first Offering; or (v) upon 60 days' written notice by the Adviser. The provisions of Sections 18 through 24 survive termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.**ASSIGNMENT.** This Agreement may be assigned by the Adviser to an Affiliate of the Adviser with the approval of a majority of the Directors (including, following the commencement of the first Offering, a majority of the Independent Directors). The Adviser may assign any rights to receive fees or other payments under this Agreement to any Person without obtaining the consent of the Board. This Agreement shall not be assigned by the Company or the Operating Partnership without the approval of the Adviser, except in the case of an assignment by the Company or the Operating Partnership to a corporation or other organization which is a successor to all of the assets, rights and obligations of the Company or the Operating Partnership, in which case such successor organization shall be bound hereunder and by the terms of said assignment in the same manner as the Company and the Operating Partnership are bound by this Agreement. This Agreement shall be binding on successors to the Company resulting from a Change in Control or sale of all or substantially all the assets of the Company or the Operating Partnership, and shall likewise be binding on any successor to the Adviser. Notwithstanding any provision of this Agreement to the contrary, no "assignment" (as that term is defined in the U.S. Investment Advisers Act of 1940, as amended from time to time) of this Agreement shall be made by the Adviser without the written consent of a majority of the Independent Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.**PAYMENTS TO AND DUTIES OF ADVISER UPON TERMINATION.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)After the Termination Date, the Adviser shall not be entitled to compensation for further services hereunder except it shall be entitled to receive from the Company or the Operating Partnership within 30 days after the effective date of such termination all unpaid reimbursements of expenses and all earned but unpaid fees payable to the Adviser prior to termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the Adviser shall promptly upon termination:

&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;&nbsp;&nbsp;&nbsp;&nbsp;(i)pay over to the Company and the Operating Partnership all money collected and held for the account of the Company and the Operating Partnership pursuant to this

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Agreement, after deducting any accrued compensation and reimbursement for its expenses to which it is then entitled;

&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;&nbsp;&nbsp;&nbsp;&nbsp;(ii)deliver to the Board a full accounting, including a statement showing all payments collected by it and a statement of all money held by it, covering the period following the date of the last accounting furnished to the Board;

&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;&nbsp;&nbsp;&nbsp;&nbsp;(iii)deliver to the Board all assets, including all Investments, and documents of the Company and the Operating Partnership then in the custody of the Adviser; 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;&nbsp;&nbsp;&nbsp;&nbsp;(iv)cooperate with, and take all reasonable actions requested by, the Company and Board in making an orderly transition of the advisory function.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.**INDEMNIFICATION BY THE COMPANY AND THE OPERATING PARTNERSHIP.** The Company and the Operating Partnership shall indemnify and hold harmless the Adviser and its Affiliates, including their respective officers, directors, partners and employees, from all liability, claims, damages or losses arising in the performance of their duties hereunder, and related expenses, including reasonable attorneys' fees, to the extent such liability, claims, damages or losses and related expenses are not fully reimbursed by insurance, and to the fullest extent possible without such indemnification being inconsistent with the laws of the State of Maryland or the Charter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.**INDEMNIFICATION BY ADVISER.** The Adviser shall indemnify and hold harmless the Company and the Operating Partnership from contract or other liability, claims, damages, taxes or losses and related expenses including attorneys' fees, to the extent that (i) such liability, claims, damages, taxes or losses and related expenses are not fully reimbursed by insurance and (ii) are incurred by reason of the Adviser's bad faith, fraud, willful misconduct, gross negligence or reckless disregard of its duties under this Agreement; provided, however, that the Adviser shall not be held responsible for any action or inaction of the Board in following or declining to follow any advice or recommendation given by the Adviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.**NON-SOLICITATION.** During the term of this Agreement and in the event of a termination without Cause of this Agreement by the Company pursuant to Section 16(iv) hereof, for two (2) years after the Termination Date, the Company shall not, without the consent of the Adviser, employ or otherwise retain any employee of the Adviser or any of its Affiliates or any person who has been employed by the Adviser or any of its Affiliates at any time within the two (2) year period immediately preceding the date on which such person commences employment with or is otherwise retained by the Company. The Company acknowledges and agrees that, in addition to any damages, the Adviser may be entitled to equitable relief for any violation of this Section 21 by the Company, including, without limitation, injunctive relief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.**REGISTRATION RIGHTS.** With respect to any Class E Common Shares paid as a Company Management Fee (or received upon conversion of Class E units of the Operating Partnership paid as a Company Management Fee or OP Management Fee) (collectively, the "Management Fee Shares"), within six months after a listing on a national securities exchange of any class of Common Shares, the Advisor and the Company covenant and agree to negotiate in good faith and enter into a registration rights agreement for the Management Fee Shares with terms mutually agreeable to the Advisor and the Company. Such registration rights agreement shall be in customary form for agreements of this type entered into by REITs with institutional investors prior to an initial public offering and will provide for: (a) a long-form "demand" registration right exercisable once by the Advisor; (b) "shelf" registration rights so long as Form S-3 is available to the Company; (c) "piggy-back" registration rights; and (d) in the event of "underwriters' cut-backs" in relation to a demand registration, a shelf registration or any piggyback registration, the ability of the Company to reduce the number of Management Fee Shares to be registered on a pro rata basis with other registering stockholders. If a Class of REIT Shares other than Management Fee Shares are listed, such registration rights agreement shall provide for conversion of Management Fee Shares to the Class of Common Shares which are listed based on the relative net asset value per share, determined on a consistent basis, and the registration rights above shall apply to the Common Shares received upon such conversion of Management Fee Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.**INITIAL INVESTMENT.** The Adviser or one of its Affiliates has contributed $200,000 (the "<u>Initial Investment</u>") in exchange for the issuance of Shares of the Company. The Adviser or its Affiliates may not sell any of the Shares purchased with the Initial Investment while the Adviser acts in an advisory capacity to the Company. The restrictions included above shall not apply to any Shares acquired by the Adviser or its Affiliates other than the Shares acquired through the Initial Investment. Neither the Adviser nor its Affiliates shall vote any Shares they now own, or hereafter acquire, or consent that such Shares be voted, on matters submitted to the Stockholders regarding (i) the removal of Sculptor Advisors LLC as the Adviser; (ii) the removal of any member of the Board who is an Affiliate of Sculptor; or (iii) any transaction by and between the Company and the Adviser, a member of the Board or any of their Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.**MISCELLANEOUS.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)**<u>Notices</u>**. Any notice, report or other communication required or permitted to be given hereunder shall be in writing unless some other method of giving such notice, report or other communication is required by the Charter, the Bylaws, or accepted by the party to whom it is given, and shall be given by being delivered by hand, by courier or overnight carrier, by registered or certified mail, by electronic mail or posted on a password protected website maintained by the Adviser and for which the Company has received access instructions by electronic mail, when posted, using the contact information set forth herein:

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| | |
|:---|:---|
| The Company: | Sculptor Diversified Real Estate Income Trust, Inc.<br>9 West 57<sup>th</sup> Street, 40<sup>th</sup> Floor<br>New York, New York 10019<br>Attention: Steven Orbuch<br>Email: <u>steven.orbuch@sculptor.com</u> |
| with required copies to: | DLA Piper LLP (US)<br>4141 Parklake Avenue, Suite 300<br>Raleigh, North Carolina 27612-2350<br>Attention: Robert H. Bergdolt<br>Email: <u>robert.bergdolt@us.dlapiper.com</u> |
| The Adviser: | Sculptor Advisors LLC<br>9 West 57<sup>th</sup> Street, 40<sup>th</sup> Floor<br>New York, NY 10019<br>Attention: General Counsel<br>Email: <u>Julie.Siegel@sculptor.com</u> |
| with required copies to: | Ropes & Gray LLP<br>191 North Wacker Drive, 32 Floor<br>Chicago, IL 60606<br>Attention: Jason Kolman<br>Email: <u>Jason.Kolman@ropesgray.com</u> |

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Any party may at any time give notice in writing to the other parties of a change in its address for the purposes of this Section 24(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)**<u>Modification</u>**. This Agreement shall not be changed, modified, terminated, or discharged, in whole or in part, except by an instrument in writing signed by the parties hereto, or their respective successors or assignees.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)**<u>Severability</u>**. The provisions of this Agreement are independent of and severable from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)**<u>Governing Law; Exclusive Jurisdiction; Jury Trial</u>**. The provisions of this Agreement shall be construed and interpreted in accordance with the laws of the State of New York. The parties hereby irrevocably submit to the exclusive jurisdiction of the courts of the State of New York and the Federal courts of the United States of America located in Borough of Manhattan, New York for purposes of any suit, action or other proceeding arising from this Agreement, and hereby waive, and agree not to assert, as a defense in any action, suit or proceeding for the interpretation or enforcement hereof or thereof, that it is not subject thereto or that such action, suit or proceeding may not be brought or is not maintainable in such courts or that the venue thereof may not be appropriate or that this Agreement or any such document may not be enforced in or by such courts. Each of the parties hereby consent to and grant any such court jurisdiction over the person of such parties and over the subject matter of any such dispute. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)**<u>Entire Agreement</u>**. This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance or usage of the trade inconsistent with any of the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)**<u>Indulgences, Not Waivers</u>**. Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)**<u>Gender; Number</u>**. Words used herein regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)**<u>Headings</u>**. The titles and headings of Sections and Subsections contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)**<u>Execution in Counterparts</u>**. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.

\* \* \* \*

------

IN WITNESS WHEREOF, the parties hereto have executed this Sixth Amended and Restated Advisory Agreement as of the date and year first above written.

---

| | |
|:---|:---|
| **Sculptor Diversified Real Estate Income Trust, Inc.** | **Sculptor Diversified Real Estate Income Trust, Inc.** |
| By: | /s/ Steven Orbuch |
|  | Name: Steven Orbuch |
|  | Title: Chief l Executive Officer |
| **Sculptor Diversified REIT Operating Partnership LP** | **Sculptor Diversified REIT Operating Partnership LP** |
| By: | Sculptor Diversified Real Estate Income Trust, Inc., <br>as general partner |
| By: | /s/ Steven Orbuch |
|  | Name: Steven Orbuch |
|  | Title: Chief Executive Officer |
| **Sculptor Advisors LLC** | **Sculptor Advisors LLC** |
| By: | Sculptor Real Estate Advisors LP, its manager<br>By: Sculptor Real Estate GP LLC, its general partner<br>By: <u>/s/ Wayne Cohen &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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>  |
|  | Name: Wayne Cohen |
|  | Title: Chief Operating Officer |

---

*(Signature page to Sixth Amended and Restated Advisory Agreement)*

## Ex-31

**Exhibit 31.1**

**CERTIFICATION**

**PURSUANT TO 17 CFR 240.13a-14**

**PROMULGATED UNDER**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Steven Orbuch, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of Sculptor Diversified Real Estate Income Trust, Inc.;

&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.

---

| | | | |
|:---|:---|:---|:---|
| | | **Sculptor Diversified Real Estate Income Trust, Inc.** | **Sculptor Diversified Real Estate Income Trust, Inc.** |
| Date: | August 13, 2025 | By: | /s/ Steven Orbuch |
|  |  |  | **Steven Orbuch** |
|  |  |  | Chief Executive Officer |
|  |  |  | (Principal Executive Officer) |

---

## Ex-31

**Exhibit 31.2**

**CERTIFICATION**

**PURSUANT TO 17 CFR 240.13a-14**

**PROMULGATED UNDER**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Ellen Conti, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q of Sculptor Diversified Real Estate Income Trust, Inc.;

&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.

---

| | | | |
|:---|:---|:---|:---|
| | | **Sculptor Diversified Real Estate Income Trust, Inc.** | **Sculptor Diversified Real Estate Income Trust, Inc.** |
| Date: | August 13, 2025 | By: | /s/ Ellen Conti |
|  |  |  | **Ellen Conti** |
|  |  |  | Chief Financial Officer |
|  |  |  | (Principal Financial Officer) |

---

## Ex-32

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

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

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

In connection with the Quarterly Report of Sculptor Diversified Real Estate Income Trust, Inc. (the "<u>Company</u>") on Form 10-Q for the period ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "<u>Report</u>"), I, Steven Orbuch, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 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; 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 13, 2025 | By: | /s/ Steven Orbuch |
|  |  |  | **Steven Orbuch** |
|  |  |  | Chief Executive Officer |
|  |  |  | (Principal Executive Officer) |

---

This certification accompanies each Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided by the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

## Ex-32

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

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

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

In connection with the Quarterly Report of Sculptor Diversified Real Estate Income Trust, Inc. (the "<u>Company</u>") on Form 10-Q for the period ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "<u>Report</u>"), I, Ellen Conti, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 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; 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 13, 2025 | By: | /s/ Ellen Conti |
|  |  |  | **Ellen Conti** |
|  |  |  | Chief Financial Officer |
|  |  |  | (Principal Financial Officer) |

---

This certification accompanies each Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided by the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

<br>