# EDGAR Filing Document

**Accession Number:** 0001914496
**File Stem:** 0001914496-25-000134
**Filing Date:** 2025-11
**Character Count:** 397445
**Document Hash:** f9787f11db6d8cd4c2e6b040aca17f08
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001914496-25-000134.hdr.sgml**: 20251113

**ACCESSION NUMBER**: 0001914496-25-000134

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 95

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251113

**DATE AS OF CHANGE**: 20251113

**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:** 251477569

**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-20250930

**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 SEPTEMBER 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 November 13, 2025, the registrant had the following shares outstanding: 20,510,472 outstanding shares of Class F common stock, 6,350,041 outstanding shares of Class FF common stock, 6,924,385 outstanding shares of Class AA common stock, 1,737,242 outstanding shares of Class A common stock, 50,746 outstanding shares of Class I-S common stock and 7,958,754 outstanding shares of Class E common stock.

------

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

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **PART I.** | **FINANCIAL INFORMATION** | [1](#ibd5eb5feeb414246996ac67cb74b399b_16) |
| Item 1. | Financial Statements | [1](#ibd5eb5feeb414246996ac67cb74b399b_16) |
|  | *<u>Condensed Consolidated Financial Statements (Unaudited):</u>* |  |
|  | [Condensed Consolidated Balance Sheets as of](#ibd5eb5feeb414246996ac67cb74b399b_16)[September](#ibd5eb5feeb414246996ac67cb74b399b_16)[30, 2025 and December 31, 2024](#ibd5eb5feeb414246996ac67cb74b399b_16) | [1](#ibd5eb5feeb414246996ac67cb74b399b_16) |
|  | [Condensed Consolidated Statements of Operations for the Three and](#ibd5eb5feeb414246996ac67cb74b399b_19)[Nine](#ibd5eb5feeb414246996ac67cb74b399b_19)[Months Ended](#ibd5eb5feeb414246996ac67cb74b399b_19)[September](#ibd5eb5feeb414246996ac67cb74b399b_19)[30, 2025 and 2024](#ibd5eb5feeb414246996ac67cb74b399b_19) | [2](#ibd5eb5feeb414246996ac67cb74b399b_19) |
|  | [Condensed Consolidated Statements of Equity for the Three and](#ibd5eb5feeb414246996ac67cb74b399b_22)[Nine](#ibd5eb5feeb414246996ac67cb74b399b_22)[Months Ended](#ibd5eb5feeb414246996ac67cb74b399b_22)[September](#ibd5eb5feeb414246996ac67cb74b399b_22)[30, 2025 and 2024](#ibd5eb5feeb414246996ac67cb74b399b_22) | [3](#ibd5eb5feeb414246996ac67cb74b399b_22) |
|  | [Condensed Consolidated Statements of Cash Flows for the](#ibd5eb5feeb414246996ac67cb74b399b_28)[Nine](#ibd5eb5feeb414246996ac67cb74b399b_28)[Months Ended](#ibd5eb5feeb414246996ac67cb74b399b_28)[September](#ibd5eb5feeb414246996ac67cb74b399b_28)[30, 2025 and 2024](#ibd5eb5feeb414246996ac67cb74b399b_28) | [5](#ibd5eb5feeb414246996ac67cb74b399b_28) |
|  | [Notes to Condensed Consolidated Financial Statements](#ibd5eb5feeb414246996ac67cb74b399b_31) | [7](#ibd5eb5feeb414246996ac67cb74b399b_31) |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#ibd5eb5feeb414246996ac67cb74b399b_82) | [34](#ibd5eb5feeb414246996ac67cb74b399b_82) |
| Item 3. | [Quantitative and Qualitative Disclosures about Market Risk](#ibd5eb5feeb414246996ac67cb74b399b_136) | [55](#ibd5eb5feeb414246996ac67cb74b399b_136) |
| Item 4. | [Controls and Procedures](#ibd5eb5feeb414246996ac67cb74b399b_139) | [55](#ibd5eb5feeb414246996ac67cb74b399b_139) |
| **PART II.** | **OTHER INFORMATION** | [56](#ibd5eb5feeb414246996ac67cb74b399b_142) |
| Item 1. | [Legal Proceedings](#ibd5eb5feeb414246996ac67cb74b399b_145) | [56](#ibd5eb5feeb414246996ac67cb74b399b_142) |
| Item 1A. | [Risk Factors](#ibd5eb5feeb414246996ac67cb74b399b_184) | [56](#ibd5eb5feeb414246996ac67cb74b399b_148) |
| Item 2. | [Unregistered Sales of Equity Securities and Use of Proceeds](#ibd5eb5feeb414246996ac67cb74b399b_151) | [56](#ibd5eb5feeb414246996ac67cb74b399b_151) |
| Item 3. | [Defaults upon Senior Securities](#ibd5eb5feeb414246996ac67cb74b399b_154) | [57](#ibd5eb5feeb414246996ac67cb74b399b_154) |
| Item 4. | [Mine Safety Disclosures](#ibd5eb5feeb414246996ac67cb74b399b_157) | [57](#ibd5eb5feeb414246996ac67cb74b399b_157) |
| Item 5. | [Other Information](#ibd5eb5feeb414246996ac67cb74b399b_160) | [57](#ibd5eb5feeb414246996ac67cb74b399b_160) |
| Item 6. | [Exhibits](#ibd5eb5feeb414246996ac67cb74b399b_163) | [58](#ibd5eb5feeb414246996ac67cb74b399b_163) |
| [SIGNATURES](#ibd5eb5feeb414246996ac67cb74b399b_166) | [SIGNATURES](#ibd5eb5feeb414246996ac67cb74b399b_166) | [59](#ibd5eb5feeb414246996ac67cb74b399b_166) |

---

------

**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)**

---

| | | |
|:---|:---|:---|
| | **September 30, 2025**<br>**(Unaudited)** | **December 31, 2024**<br>**(Audited)** |
| **Assets** | | |
| Investments in real estate, net | $479279 | $467812 |
| Investment in an unconsolidated entity | 1742 | 1782 |
| Investments in real estate debt | 63595 | 7985 |
| Cash and cash equivalents | 63294 | 36174 |
| Restricted cash | 19400 | 18666 |
| Deferred rent and other receivables | 3246 | 2149 |
| Goodwill | 34458 | 34458 |
| Lease intangible assets, net | 31626 | 35466 |
| Other assets | 19346 | 4520 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $715986 | $609012 |
| **Liabilities and Equity** |  |  |
| **Liabilities** |  |  |
| Mortgages and other loans payable, net | $214618 | $225826 |
| Revolving credit facility, net | 35657 | 18201 |
| Accounts payable and other liabilities | 24076 | 20225 |
| Financing obligation, net | 22959 | 22959 |
| Due to related parties | 5066 | 3235 |
| Lease intangible liabilities, net | 43355 | 47807 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 345731 | 338253 |
| Commitment and contingencies |  |  |
| Redeemable noncontrolling interest in the Operating Partnership | 1821 | 1648 |
| **Equity** |  |  |
| Common stock, Class F shares, $0.01 par value per share, 300,000,000 shares authorized; 19,607,847 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; 6,304,347 and 6,311,042 shares issued and outstanding, respectively | 63 | 63 |
| Common stock, Class E shares, $0.01 par value per share, 100,000,000 shares authorized; 7,386,010 and 266,204 shares issued and outstanding, respectively | 74 | 3 |
| Common stock, Class AA shares, $0.01 par value per share, 300,000,000 shares authorized, 6,061,450 and 2,566,352 shares issued and outstanding, respectively | 61 | 26 |
| Common stock, Class A shares, $0.01 par value per share, 300,000,000 shares authorized; 1,735,324 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; 50,142 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 | 415535 | 295294 |
| Accumulated deficit and cumulative distributions | (64759) | (43792) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total stockholders' and members' equity** | 351188 | 251801 |
| Non-controlling interests in the consolidated subsidiaries | 17246 | 17310 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total equity** | 368434 | 269111 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and equity** | $715986 | $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 September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Revenues** |  |  |  |  |
| Rental revenue | $11518 | $11249 | $34736 | $32939 |
| Other revenue | 429 | 447 | 1252 | $1003 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 11947 | 11696 | 35988 | 33942 |
| **Expenses** |  |  |  |  |
| Property operating expenses | 1566 | 1290 | 3920 | 3313 |
| Management fees | 519 | 342 | 1417 | 962 |
| Performance participation allocation | 1665 | 1087 | 2288 | 1087 |
| General and administrative | 2372 | 2041 | 7200 | 6291 |
| Depreciation and amortization | 4927 | 5069 | 15019 | 17975 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 11049 | 9829 | 29844 | 29628 |
| Operating income | 898 | 1867 | 6144 | 4314 |
| **Other income (expense):** |  |  |  |  |
| Interest expense, net | (3197) | (3021) | (9447) | (9072) |
| Impairment of investments in real estate | (560) | (991) | (2473) | (2013) |
| Income from investments in real estate debt, net | 1866 |  | 4465 |  |
| Income (loss) from an unconsolidated entity | 29 | 22 | 88 | 32 |
| Unrealized gain (loss) on derivative instruments | (159) | (733) | (815) | (595) |
| Gain on sale of real estate | 157 |  | 393 | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (1864) | (4723) | (7789) | (11614) |
| **Net income (loss)** | (966) | (2856) | (1645) | (7300) |
| Net loss (income) attributable to non-controlling interest in the consolidated subsidiaries | 2 | 63 | 31 | 124 |
| Net loss (income) attributable to non-controlling interest in the Operating Partnership | (9) | 11 | (14) | 40 |
| **Net loss attributable to SDREIT stockholders** | $(973) | $(2782) | $(1628) | $(7136) |
| **Net loss per common share - basic and diluted** | $(0.03) | $(0.12) | $(0.05) | $(0.31) |
| **Weighted-average common shares outstanding - basic and diluted** | 38376881 | 23972985 | 35189568 | 23174275 |

---

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 September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 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 June 30, 2025** | $196 | $62 | $39 | $47 | $17 | $1 | $361178 | $(56629) | $304911 | $17826 | $322737 |
| Common stock issued |  |  | 35 | 14 |  |  | 53331 |  | 53380 |  | 53380 |
| Distribution reinvestment |  | 1 |  |  |  |  | 1447 |  | 1448 |  | 1448 |
| Repurchase of common stock |  |  |  |  |  |  | (55) |  | (55) |  | (55) |
| Offering costs |  |  |  |  |  |  | (324) |  | (324) |  | (324) |
| Amortization of compensation awards, net |  |  |  |  |  |  | 51 |  | 51 |  | 51 |
| Distributions declared on common stock |  |  |  |  |  |  |  | (7157) | (7157) |  | (7157) |
| Contributions from non-controlling interests |  |  |  |  |  |  |  |  |  | 17 | 17 |
| Distributions to non-controlling interests |  |  |  |  |  |  |  |  |  | (595) | (595) |
| Adjustment to carrying value of redeemable equity instruments |  |  |  |  |  |  | (93) |  | (93) |  | (93) |
| Net income (loss) |  |  |  |  |  |  |  | (973) | (973) | (2) | (975) |
| **Balance at September 30, 2025** | $**196** | $**63** | $**74** | $**61** | $**17** | $**1** | $**415535** | $**(64759)** | $**351188** | $**17246** | $**368434** |
|  | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 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 June 30, 2024** | $161 | $62 | $2 | $11 | $— | $— | $236062 | $(33247) | $203051 | $45548 | 248599 |
| Common stock issued |  | 1 |  | 6 | 1 |  | 7492 |  | 7500 |  | 7500 |
| Distribution reinvestment |  |  |  |  |  |  | 878 |  | 878 |  | 878 |
| Offering costs |  |  |  |  |  |  | (35) |  | (35) |  | (35) |
| Amortization of compensation awards, net |  |  |  |  |  |  | 63 |  | 63 |  | 63 |
| Distributions declared on common stock |  |  |  |  |  |  |  | (4474) | (4474) |  | (4474) |
| Contributions from non-controlling interests |  |  |  |  |  |  |  |  |  | 331 | 331 |
| Distributions to non-controlling interests |  |  |  |  |  |  |  |  |  | (858) | (858) |
| Adjustment to carrying value of redeemable equity instruments |  |  |  |  |  |  | (72) |  | (72) |  | (72) |
| Net income (loss) |  |  |  |  |  |  |  | (2782) | (2782) | (63) | (2845) |
| **Balance at September 30, 2024** | $**161** | $**63** | $**2** | $**17** | $**1** | $**—** | $**244388** | $**(40503)** | $**204129** | $**44958** | $**249087** |

---

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)**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 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 |  |  | 71 | 34 | 16 | 1 | 130629 |  | 130751 |  | 130751 |
| Distribution reinvestment |  | 2 |  | 1 |  |  | 3825 |  | 3828 |  | 3828 |
| Repurchase of common stock | (10) | (2) |  |  |  |  | (13170) |  | (13182) |  | (13182) |
| Offering costs |  |  |  |  |  |  | (809) |  | (809) |  | (809) |
| Amortization of compensation awards, net |  |  |  |  |  |  | (74) |  | (74) |  | (74) |
| Distributions declared on common stock |  |  |  |  |  |  |  | (19339) | (19339) |  | (19339) |
| Contributions from non-controlling interests |  |  |  |  |  |  |  |  |  | 1329 | 1329 |
| Distributions to non-controlling interests |  |  |  |  |  |  |  |  |  | (1362) | (1362) |
| Adjustment to carrying value of redeemable equity instruments |  |  |  |  |  |  | (160) |  | (160) |  | (160) |
| Net income (loss) |  |  |  |  |  |  |  | (1628) | (1628) | (31) | (1659) |
| **Balance at September 30, 2025** | $**196** | $**63** | $**74** | $**61** | $**17** | $**1** | $**415535** | $**(64759)** | $**351188** | $**17246** | $**368434** |
|  | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 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 | $58 | $1 | $— | $— | $— | $221253 | $(20458) | $201015 | $46886 | 247901 |
| Common stock issued |  | 3 |  | 17 | 1 |  | 20955 |  | 20976 |  | 20976 |
| Distribution reinvestment |  | 2 |  |  |  |  | 2394 |  | 2396 |  | 2396 |
| Exchange of common stock | (1) |  | 1 |  |  |  |  |  |  |  |  |
| Offering costs |  |  |  |  |  |  | (222) |  | (222) |  | (222) |
| Amortization of compensation awards, net | 1 |  |  |  |  |  | 153 |  | 154 |  | 154 |
| Distributions declared on common stock |  |  |  |  |  |  |  | (12909) | (12909) |  | (12909) |
| Contributions from non-controlling interests |  |  |  |  |  |  |  |  |  | 1017 | 1017 |
| Distributions to non-controlling interests |  |  |  |  |  |  |  |  |  | (2821) | (2821) |
| Adjustment to carrying value of redeemable equity instruments |  |  |  |  |  |  | (145) |  | (145) |  | (145) |
| Net income (loss) |  |  |  |  |  |  |  | (7136) | (7136) | (124) | (7260) |
| **Balance at September 30, 2024** | $**161** | $**63** | $**2** | $**17** | $**1** | $**—** | $**244388** | $**(40503)** | $**204129** | $**44958** | $**249087** |

---

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)**

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2024** |
| **Cash Flows from Operating Activities:** | | |
| Net income (loss) | $(1645) | $(7300) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Management fees | 1417 | 962 |
| &nbsp;&nbsp;&nbsp;&nbsp;Performance participation allocation | 2288 | 1087 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 15019 | 17975 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of discounts and deferred financing costs | 417 | 419 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment of investments in real estate | 2473 | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on sale of real estate | (393) | (34) |
| &nbsp;&nbsp;&nbsp;&nbsp;Straight-line rent adjustment | (319) | (408) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of above- and below-market leases | (3961) | (3817) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of share-based compensation | 174 | 153 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gain) loss on investments in real estate debt | (35) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gain) loss on interest rate cap | 815 | 595 |
| &nbsp;&nbsp;&nbsp;&nbsp;(Income) loss from an unconsolidated entity | (88) | (32) |
| &nbsp;&nbsp;&nbsp;&nbsp;Paid-in-kind interest | (1076) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other reconciling items | 93 | 79 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred rent and other receivables | (871) | (107) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other assets | (633) | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | 2493 | 1214 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due to related parties | (34) | (288) |
| **Net cash provided by operating activities** | 16134 | 12493 |
| **Cash Flows From Investing Activities:** |  |  |
| Acquisition of real estate | (38715) | (7912) |
| Additions to real estate | (952) | (2481) |
| Deposit on real estate acquisition, net of refunds | (10622) | 52 |
| Proceeds from sale of real estate | 10111 | 3531 |
| Investments in real estate debt | (54500) |  |
| Investment in an unconsolidated entity |  | (1935) |
| Distributions in excess of cumulative earnings from an unconsolidated entity | 128 | 165 |
| **Net cash used in investing activities** | (94550) | (8580) |
| **Cash Flows from Financing Activities:** |  |  |
| Repayments of mortgages and other loans payable | (12131) | (3252) |
| Repayments of financing obligation | (1) |  |
| Repayments from revolving credit facility | (631) |  |
| Proceeds from revolving credit facility | 18181 | 4297 |

---

------

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

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

**(in thousands)**

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2024** |
| Payment of deferred financing costs | (299) | (286) |
| Payment of offering costs | (794) | (186) |
| Due to related parties | (515) | (304) |
| Subscriptions received in advance | 1269 | 1150 |
| Issuance of common stock | 129179 | 20043 |
| Repurchase of common stock | (13182) |  |
| Distribution to shareholders | (14773) | (10404) |
| Contribution by noncontrolling interests in the consolidated subsidiaries | 1329 | 1017 |
| Distribution to noncontrolling interests in the consolidated subsidiary | (1362) | (2821) |
| **Net cash provided by (used in) financing activities** | 106270 | 9254 |
| **Net change in cash and cash equivalents and restricted cash** | 27854 | 13167 |
| **Cash and cash equivalents and restricted cash at beginning of period** | 54840 | 23102 |
| **Cash and cash equivalents and restricted cash at end of period** | $82694 | $36269 |
| **Reconciliation of Cash and Cash Equivalents and Restricted Cash:** |  |  |
| Cash and cash equivalents | $63294 | $28548 |
| Restricted cash | 19400 | 7721 |
| Total cash and cash equivalents and restricted cash | $82694 | $36269 |
| **Supplemental Information:** |  |  |
| Interest paid | $9071 | $8614 |
| **Supplemental Disclosure of Noncash Investing and Financing Activities:** |  |  |
| Dividends unpaid | $2585 | $1528 |
| Distribution reinvestment | $3828 | $2394 |
| Contributions by noncontrolling interests in the Operating Partnership | $88 | $1568 |
| Distributions to noncontrolling interests in the Operating Partnership | $89 | $10 |
| Transfer to assets held for sale | $4057 | $820 |
| Management fee paid in shares | $1324 | $933 |
| Performance allocation paid in Operating Partnership units | $— | $1568 |
| Accrued distribution fee | $15 | $(36) |
| Adjustment to carrying value of redeemable common stock | $160 | $145 |
| 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 and certain sales to an offshore fund formed for the purpose of investing in the Company), 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 September 30, 2025, the Company owned a portfolio of 1,114 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 93.26% 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 September 30, 2025, investments in real estate debt consists of (i) an investment in preferred equity in a real estate company that owns 68 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 September 30, 2025, the total assets and liabilities of the Company's consolidated VIEs were $702.7 million and $332.4 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 $4.0 million and $3.7 million for the three months ended September 30, 2025 and 2024, respectively. Depreciation amounted to $11.7 million and $10.8 million for the nine months ended September 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 September 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 September 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 September 30, 2025 and December 31, 2024, there were no significant deferred tax assets or liabilities.

During the three and nine months ended September 30, 2025 and 2024, the Company recorded a net income tax expense of $0.1 million or less, 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.

In July 2025, the FASB issued ASU No. 2025-05, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets" ("ASU 2025-05"), which amends the guidance in ASC 326 to provide a practical expedient for estimating expected credit losses on current accounts receivable and current contract assets arising from transactions accounted for under ASC 606. The amendments allow entities to assume that current conditions as of the balance sheet date will remain unchanged for the remaining life of the asset when developing reasonable and supportable forecasts. ASU 2025-05 is effective for fiscal years beginning after December 15, 2025, and interim periods within those fiscal years. 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):

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| Land and land improvements | $79641 | $77098 |
| Building and improvements | 434917 | 415498 |
| Furniture, fixtures and equipment | 1795 | 1612 |
| Total real estate properties, at cost | 516353 | 494208 |
| Less: accumulated depreciation | (37074) | (26396) |
| Investments in real estate, net | $479279 | $467812 |

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**Asset Acquisitions**

During the three months ended September 30, 2025 and 2024, the Company, through CapGrow, acquired eight and 10 vacant homes, at an aggregate purchase price of approximately $4.8 million and $4.3 million, respectively.

During the nine months ended September 30, 2025 and 2024, the Company, through CapGrow acquired 71 and 20 vacant homes, at an aggregate purchase price of approximately $30.0 million and $7.8 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 September 30, 2025, the Company owned an 85.10% indirect controlling interest in the Parking JV.

**Asset Dispositions**

During the three months ended September 30, 2025 and 2024, the Company sold 19 and two homes for aggregate net proceeds of $5.1 million and $0.4 million, respectively. During the three months ended September 30, 2025, the Company recognized impairment loss of $0.3 million and gain on sale of $0.2 million on these assets sold. During the three months ended September 30, 2024, the Company recognized impairment loss of $0.1 million and no gain on sale 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)**

During the nine months ended September 30, 2025 and 2024, the Company sold 35 and 12 homes for aggregate net proceeds of $10.1 million and $3.5 million, respectively. During the nine months ended September 30, 2025, the Company recognized impairment loss of $0.9 million and gain on sale of $0.4 million on these assets sold. During the nine months ended September 30, 2024, the Company recognized impairment loss of $0.5 million and gain on sale of $34.0 thousand on these assets sold.

**Properties Held-for-Sale**

As of September 30, 2025 and December 31, 2024, the Company classified 17 properties and two properties, respectively, as held for sale. As of September 30, 2025 and December 31, 2024, assets held for sale, which are included in other assets in the condensed consolidated balance sheets, amounted to $5.3 million and $0.9 million, respectively. As of December 31, 2024, liabilities of $0.7 million associated with a held for sale property, that was subsequently sold in 2025, was included in accounts payable and other liabilities in the condensed consolidated balance sheets.

**Asset Impairment**

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

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

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Impairment loss - assets sold | $343 | $122 | $938 | $520 |
| Impairment loss - held for sale | 61 | 248 | 872 | 428 |
| Impairment loss - held for use | 156 | 621 | 663 | 1065 |
|  | $560 | $991 | $2473 | $2013 |

---

**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 September 30, 2025. Our maximum loss is limited to the amount of our equity investment in this VIE. As of September 30, 2025 and December 31, 2024, the Company's investment in unconsolidated entity was $1.7 million and $1.8 million, respectively. During the three months ended September 30, 2025 and 2024, as well as the nine months ended September 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):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | **September 30, 2025** | **September 30, 2025** | **September 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> | $36076 | $36076 | $36076 |
| 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 | 8018 |
| CMBS - floating | 1M SOFR + 4.00% | August 2030 | 2500 | 2500 | 2501 |
|  |  |  | $63576 | $63556 | $63595 |
|  |  |  | **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 September 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 68 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 September 30, 2025** | **Nine Months Ended September 30, 2025** |
| Interest income | $1813 | $3825 |
| Unrealized (loss) gain | 53 | 35 |
| Other<sup>(1)</sup> |  | 605 |
| Total | $1866 | $4465 |

---

_______________________________________

<sup>(1)</sup> Represents origination fees received concurrent with the origination of the investments in the preferred equity and the junior mortgage loan. 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 nine months ended September 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 September 30, 2025 and December 31, 2024 are as follows.

---

| | | | |
|:---|:---|:---|:---|
| | **September 30, 2025** | **September 30, 2025** | **September 30, 2025** |
| | **Cost** | **Accumulated Amortization** | **Net** |
| <u>Intangible assets, net:</u> |  |  |  |
| Above-market lease intangibles | $3110 | $(1753) | $1357 |
| In-place lease intangibles | 8132 | (2338) | 5794 |
| Leasing commissions | 31532 | (7057) | 24475 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total intangible assets | $42774 | $(11148) | $31626 |
| <u>Intangible liabilities, net:</u> |  |  |  |
| Below-market lease intangibles | $(55046) | $11691 | $(43355) |

---

---

| | | | |
|:---|:---|:---|:---|
| | **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 September 30, 2025 and 2024, the Company recognized $0.9 million and $1.5 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 $0.1 million and $0.3 million, respectively, of accumulated amortization related to fully amortized assets, held for sale assets and sold assets sold. Additionally, during the three months ended September 30, 2025 and 2024, the Company recorded $0.9 million and $1.4 million, respectively, of amortization of in-place leases and leasing commissions and wrote off $0.1 million and $0.4 million, respectively, of accumulated amortization related to fully amortized assets, held for sale assets and assets sold.

For the nine months ended September 30, 2025 and 2024, the Company recognized $4.0 million and $3.8 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 $1.5 million and $0.8 million, respectively, of accumulated amortization related to fully depreciated assets, held for sale assets and sold assets. Additionally, during the nine months ended September 30, 2025 and 2024, the Company recorded $3.4 million and $7.1 million, respectively, of amortization of in-place leases and leasing commissions and wrote off $1.0 million and $0.7 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 September 30, 2025, the weighted-average amortization period for above-market leases, in-place lease intangibles, leasing commissions and below-market lease costs is 3.6 years, 10.7 years, 11.8 years and 12.4 years, respectively. As of

------

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

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

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

September 30, 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 (three months) | $159 | $209 | $643 | $(1060) |
| 2026 | 511 | 752 | 2471 | (4157) |
| 2027 | 343 | 654 | 2353 | (4000) |
| 2028 | 94 | 543 | 2192 | (3837) |
| 2029 | 86 | 533 | 2174 | (3799) |
| Thereafter | 164 | 3103 | 14642 | (26502) |
|  | $1357 | $5794 | $24475 | $(43355) |

---

**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.

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| Assets held for sale | $5259 | $859 |
| Derivative assets | 1454 | 2269 |
| Deferred costs | 679 | 410 |
| Deposit for real estate investment | 10639 |  |
| Right of use asset - operating lease | 249 | 234 |
| Prepaid insurance | 151 | 418 |
| Prepaid ground rent | 95 | 95 |
| Other | 820 | 235 |
| Total | $19346 | $4520 |

---

**8. ACCOUNTS PAYABLE AND OTHER LIABILITIES** 

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

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| Accounts payable and accrued expenses | $4145 | $1729 |
| Performance bonus payable | 395 |  |
| Tenant security deposits | 2559 | 2426 |
| Distribution payable | 2585 | 1846 |
| Subscriptions received in advance | 13330 | 12061 |
| Property taxes payable | 695 | 899 |
| Liabilities related to assets held for sale |  | 713 |
| Lease liability - operating lease | 255 | 239 |
| Deferred income | 112 | 312 |
| Total | $24076 | $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):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** | **Interest<br>Rate** | **Maturity<br>Date** |
| Mortgage note payable<sup>(1)(2)</sup> | $4531 | $5330 | 7.50% | October 2026 |
| Mortgage note payable<sup>(2)</sup> | 7897 | 8942 | 5.19% | June 2027 |
| Mortgage note payable<sup>(2)</sup> | 8526 | 8726 | 3.75% | April 2028 |
| Mortgage note payable<sup>(2)</sup> | 6225 | 7445 | 5.59% | April 2028 |
| Mortgage note payable<sup>(2)</sup> | 17511 | 18111 | 4.28% | November 2029 |
| Mortgage note payable<sup>(3)</sup> | 45977 | 48172 | 3.59% | September 2030 |
| Mortgage note payable<sup>(4)</sup> | 34741 | 37901 | 3.85% | January 2031 |
| Mortgage note payable<sup>(2)</sup> | 1926 | 1969 | 4.35% | February 2031 |
| Mortgage note payable<sup>(5)</sup> | 23169 | 24982 | 4.01% | January 2032 |
| Mortgage note payable<sup>(2)</sup> | 13631 | 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> | 638 | 729 | 5.75% to 6.38% | February 2037 through January 2039  |
| Notes payable<sup>(8)</sup> | 219 | 318 | 7.00% | October 2025 through January 2026  |
| **Total** | 217523 | 229653 |  |  |
| Discounts and deferred financing costs, net | (2905) | (3114) |  |  |
| Total mortgages and other loans payable, net | $214618 | $226539 |  |  |

---

_______________________________________

<sup>(1)</sup> Includes one mortgage loan related to assets held for sale amounting to $0.7 million at 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 6.80%. 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 initially extended to February 2025 as a result of the Company exercising its one-year extension option, and was further

------

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

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

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

extended to February 2027. The Credit Facility bears interest equal to Term SOFR plus 3.50% per annum. As of September 30, 2025 and December 31, 2024, the interest rate was 7.74% and 7.99%, respectively. As of September 30, 2025 and December 31, 2024, the Credit Facility had an outstanding principal balance of $35.8 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 September 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 September 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 September 30, 2025 were as follows (amounts in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Year Ending** | **Mortgages and Other Loans Payable** | **Credit Facility** | **Financing Obligation** | **Total** |
| December 31, 2025 (three months) | $1126 | $— | $1 | $1127 |
| December 31, 2026 | 8459 |  | 3 | 8462 |
| December 31, 2027 | 11041 | 35783 | 5 | 46829 |
| December 31, 2028 | 17253 |  | 7 | 17260 |
| December 31, 2029 | 19781 |  | 8 | 19789 |
| Thereafter | 159863 |  | 19119 | 178982 |
|  | $217523 | $35783 | $19143 | $272449 |

---

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

***Authorized Capital Stock***

As of September 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 September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** |
| | **Class F** | **Class FF** | **Class E** | **Class AA** | **Class A** | **Class I-S** | **Total** |
| June 30, 2025 | 19607441 | 6241936 | 3921217 | 4645736 | 1704696 | 49253 | 36170279 |
| Common stock issued |  |  | 3457992 | 1358297 | 27803 |  | 4844092 |
| Distribution reinvestment | 406 | 67674 | 6801 | 57417 | 2825 | 889 | 136012 |
| Shares repurchased |  | (5263) |  |  |  |  | (5263) |
| September 30, 2025 | 19607847 | 6304347 | 7386010 | 6061450 | 1735324 | 50142 | 41145120 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 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 |  |  | 7102599 | 3364224 | 1598892 | 48097 | 12113812 |
| Distribution reinvestment | 1196 | 201372 | 17207 | 130874 | 7897 | 2045 | 360591 |
| Shares repurchased | (1030382) | (208067) |  |  |  |  | (1238449) |
| September 30, 2025 | 19607847 | 6304347 | 7386010 | 6061450 | 1735324 | 50142 | 41145120 |

---

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 nine months ended September 30, 2025 , the Company repurchased 5,263 and 1,238,449 shares for $0.1 million and $13.2 million, respectively. There were no shares repurchased during the nine months ended September 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:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** |
| | **Class F** | **Class FF** | **Class E** | **Class AA** | **Class A** | **Class I-S** |
| Aggregate gross distributions declared per share of common stock | $0.1896 | $0.1896 | $0.1896 | $0.1896 | $0.1896 | $0.1896 |
| Distribution fee per share of common stock |  | (0.0135) |  | (0.0135) |  |  |
| Net distributions declared per share of common stock | $0.1896 | $0.1761 | $0.1896 | $0.1761 | $0.1896 | $0.1896 |

---

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
| | **Class F** | **Class FF** | **Class E** | **Class AA** | **Class A** | **Class I-S** |
| Aggregate gross distributions declared per share of common stock | $0.5607 | $0.5607 | $0.5607 | $0.5607 | $0.5607 | $0.4987 |
| Distribution fee per share of common stock |  | (0.0395) |  | (0.0396) |  |  |
| Net distributions declared per share of common stock | $0.5607 | $0.5212 | $0.5607 | $0.5211 | $0.5607 | $0.4987 |

---

***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 September 30, 2025, 395,870 shares of common stock remain available for issuance under the Compensation Plan. For both the three months ended September 30, 2025 and 2024, total share-based compensation recognized was less than $0.1 million. For the nine months ended September 30, 2025 and 2024, total share-based compensation recognized was $0.2 million and $0.2 million, respectively. The Company adopted the policy of accounting for forfeitures as they occur. As of September 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:

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| | **2025** | **2024** |
| **Balance at the beginning of the year** | $1648 | $2 |
| Issuance of Class E units | 88 | 1640 |
| Distributions | (89) | (84) |
| GAAP income allocation | 14 | (40) |
| Adjustment to carrying value of redeemable equity instrument | 160 | 145 |
| **Ending balance** | $1821 | $1663 |

---

------

**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 September 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):

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| Accrued management fee | $348 | $255 |
| Accrued performance participation allocation | 2288 |  |
| Due to adviser | 1 | 21 |
| Advanced organization and offering costs | 2405 | 2920 |
| Due to affiliates, net | 24 | 39 |
|  | $5066 | $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 September 30, 2025 and 2024, the Company incurred management fees amounting to $0.5 million and $0.3 million, respectively. During the nine months ended September 30, 2025 and 2024, the Company incurred management fees amounting to $1.4 million and $1.0 million, respectively.

During the nine months ended September 30, 2025, the Company issued 122,437 Class E shares as payment for the management fee from November 2024 through July 2025.

As of September 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 three and nine months ended September 30, 2025, the Company accrued performance allocation of $1.7 million and $2.3 million, respectively.

During the three and nine months ended September 30, 2024, the Company accrued performance allocation of $1.1 million and $1.1 million, respectively.

***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 September 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 September 30, 2025 and December 31, 2024, the Company owed offering and organization costs of $2.4 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 general and administrative expenses 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 as 2% of the hypothetical distributions to members of CapGrow JV after CapGrow Member would have received a certain IRR.

As of September 30, 2025, the Company had accrued $0.4 million based on estimated hypothetical distributions, which was partly based on the fair market value of the CapGrow investment at the end of the performance period. The accrued amount is included in accounts payable and other liabilities on the condensed consolidated balance sheets.

***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 September 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 nine months ended September 30, 2025 and 2024, the total property and asset management fees amounted to $0.3 million and $0.3 million, respectively.

As of September 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 September 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 September 30, 2025 and 2024, the Company recorded an unrealized loss on derivative instrument of $0.2 million and $0.7 million, respectively, which are included in unrealized gain (loss) on derivative instruments in our condensed consolidated statements of operations. During the nine months ended September 30, 2025 and 2024, the Company recorded an unrealized loss on derivative instrument of $0.8 million and an unrealized gain of $0.6 million, respectively.

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

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Notional Value** | **Index** | **Strike Rate** | **Effective Date** | **Expiration Date** | **September 30, 2025** | **December 31, 2024** |
| Interest rate cap | $20880 | SOFR | 1% | October 2023 | November 2028 | $1454 | $2269 |
|  |  |  |  |  |  | $1454 | $2269 |

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From time to time, the Company may invest in certain real estate-related debt investments, including preferred equity and debt securities, among others, which upon the election of FVO, 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 September 30, 2025, the valuation of our investments in preferred equity and the junior mortgage loan were classified as Level 3 within the fair value hierarchy. During the three and nine months ended September 30, 2025, the Company recorded no unrealized gain or loss related to these investments as the cost approximated the fair value.

The fair value of the Level 3 debt investments 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.

***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 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.

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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)**

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 September 30, 2025 and December 31, 2024, respectively:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **September 30, 2025** | **September 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 | $217523 | $212016 | 229653 | 220631 |
| Revolving credit facility | 35783 | 35783 | 18233 | 18233 |
| Financing obligation | 23199 | 23200 | 23200 | 23200 |
|  | $276505 | $270999 | $271086 | $262064 |
| <sup>(1)</sup> The carrying value of these loans do not include unamortized premium or discount and debt issuance costs. | <sup>(1)</sup> The carrying value of these loans do not include unamortized premium or discount and debt issuance costs. | <sup>(1)</sup> The carrying value of these loans do not include unamortized premium or discount and debt issuance costs. | <sup>(1)</sup> The carrying value of these loans do not include unamortized premium or discount and 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 July 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 September 30, 2025, 45 subsidiaries of National Mentor Holdings, Inc., a Delaware corporation doing business as "Sevita," leased approximately 499 of the CapGrow Portfolio properties, representing 30% of the Company's total assets. As of December 31, 2024, 44 subsidiaries of National Mentor Holdings, Inc. leased approximately 500 of CapGrow Portfolio properties, representing 36% of the Company's total assets. These leases

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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)**

accounted for 38% and 41% of the Company's total rental revenues for the nine months ended September 30, 2025 and 2024, respectively. These leases had various expiration dates extending through July 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 439 and 426 of CapGrow's properties as of September 30, 2025 and December 31, 2024, respectively (representing 26% and 31% of total assets, respectively).

During the three months ended September 30, 2025 and 2024, these properties represented 40% and 35% of the total rental revenues, respectively.

During the nine months ended September 30, 2025 and 2024, rental revenue from these guaranteed properties represented 35% and 35% of the total rental revenues, respectively.

For both the three months ended September 30, 2025 and 2024, there were two tenants that each represented more than 5% of total rental income, which collectively represented 48% and 47% of the Company's rental revenue, respectively.

For both the nine months ended September 30, 2025 and 2024, there were two tenants that each represented more than 5% of total rental income, which collectively represented 46% and 50% 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, Michigan, 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 September 30, 2025 expire on or before July 2026 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 September 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 (three months) | $8679 |
| December 31, 2026 | 33236 |
| December 31, 2027 | 26518 |
| December 31, 2028 | 16243 |
| December 31, 2029 | 13601 |
| Thereafter | 20188 |
|  | $118465 |

---

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

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2024** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2024** |
| Fixed lease payments | $11450 | $11186 | 34515 | 32789 |
| Variable lease payments | 68 | 63 | 221 | 150 |
| Total | $11518 | $11249 | $34736 | $32939 |

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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. Effective August 1, 2025, CapGrow leased additional space in the same building and the lease is accounted for as a new lease. Both leases expire in February 2028.

During the three months ended September 30, 2025 and 2024, and nine months ended September 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 September 30, 2025 (in thousands):

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| | |
|:---|:---|
| **Year Ending** | |
| December 31, 2025 (three months) | $27 |
| December 31, 2026 | 109 |
| December 31, 2027 | 112 |
| December 31, 2028 | 19 |
| December 31, 2029 |  |
| Total minimum lease payments | 267 |
| Imputed interest | (12) |
| Total operating lease liabilities | $255 |

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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.

***Term Loan Commitment***

In August 2025, the Company entered into an agreement to participate in a syndicated term loan for approximately $5.0 million. Upon obtaining the regulatory approval, the purchase will be settled. The Company is not subject to any interest prior to settlement and current fair value approximates the contractual purchase price.

**16. SEGMENT REPORTING**

The Company operates in four reportable segments as of September 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):

------

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

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

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

---

| | | |
|:---|:---|:---|
| | **September 30, 2025** | **December 31, 2024** |
| Residential (Business) | $502573 | $494852 |
| Student Housing | 56561 | 58783 |
| Commercial Properties | 8398 |  |
| Investments in Real Estate Debt | 63797 | 7985 |
| Other (Corporate) | 84657 | 47392 |
| Total assets | $715986 | $609012 |

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** | **Three Months Ended September 30, 2025** |
| | **Residential<br>(Business)** | **Student Housing** | **Commercial Properties** | **Investments in Real Estate Debt** | **Other (Corporate)** | **Total** |
| **Revenues** | | | | | | |
| Rental revenue | $9774 | $1445 | $299 | $— | $— | $11518 |
| Other revenue | 52 | 377 |  |  |  | 429 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 9826 | 1822 | 299 |  |  | 11947 |
| **Expenses** |  |  |  |  |  |  |
| Property operating expenses | 465 | 1010 | 91 |  |  | 1566 |
| General and administrative | 781 | 232 | 34 |  | 1325 | 2372 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 1246 | 1242 | 125 |  | 1325 | 3938 |
| Segment net operating income (loss) | $8580 | $580 | $174 | $— | $(1325) | $8009 |
| Income from an unconsolidated joint venture | 29 |  |  |  |  | 29 |
| Income from investments in real estate debt, net |  |  |  | 1866 |  | 1866 |
| Gain on sale of real estate | 157 |  |  |  |  | 157 |
| Interest expense, net | (3124) | (484) |  |  | 411 | (3197) |
| Impairment of investments in real estate | (560) |  |  |  |  | (560) |
| GAAP segment income (loss) | $5082 | $96 | $174 | $1866 | $(914) | $6304 |
| Other segment income (expense)<sup>(1)</sup> | (4187) | (729) | (169) |  | (2185) | (7270) |
| **Net income (loss)** | 895 | (633) | 5 | 1866 | (3099) | (966) |
| Net loss (income) attributable to non-controlling interest in the consolidated subsidiaries | (60) | 63 | (1) |  |  | 2 |
| Net loss (income) attributable to non-controlling interest in the Operating Partnership |  |  |  |  | (9) | (9) |
| **Net income (loss) attributable to SDREIT stockholders** | $835 | $(570) | $4 | $1866 | $(3108) | $(973) |
| _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain 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 September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** | **Three Months Ended September 30, 2024** |
| | **Residential<br>(Business)** | **Student Housing** | **Commercial Properties** | **Investments in Real Estate Debt** | **Other (Corporate)** | **Total** |
| **Revenues** | | | | | | |
| Rental revenue | $9633 | $1616 | $— | $— | $— | $11249 |
| Other revenue | 19 | 428 |  |  |  | 447 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 9652 | 2044 |  |  |  | 11696 |
| **Expenses** |  |  |  |  |  |  |
| Property operating expenses | 202 | 1088 |  |  |  | 1290 |
| General and administrative | 842 | 299 |  |  | 900 | 2041 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 1044 | 1387 |  |  | 900 | 3331 |
| Segment net operating income (loss) | 8608 | 657 |  |  | (900) | 8365 |
| Income from an unconsolidated joint venture | 22 |  |  |  |  | 22 |
| Income from investments in real estate debt, net |  |  |  |  |  |  |
| Gain (loss) on sale of real estate |  |  |  |  |  |  |
| Interest expense, net | (2869) | (472) |  |  | 320 | (3021) |
| Impairment of investments in real estate | (991) |  |  |  |  | (991) |
| GAAP segment income (loss) | $4770 | $185 | $— | $— | $(580) | $4375 |
| Other segment income (expense)<sup>(1)</sup> | (4536) | (1266) |  |  | (1429) | (7231) |
| **Net income (loss)** | 234 | (1081) |  |  | (2009) | (2856) |
| Net (income) loss attributable to non-controlling interest in the consolidated subsidiaries | (45) | 108 |  |  |  | 63 |
| Net (income) loss attributable to non-controlling interest in the Operating Partnership |  |  |  |  | 11 | 11 |
| **Net income (loss) attributable to SDREIT stockholders** | $189 | $(973) | $— | $— | $(1998) | $(2782) |
| _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain 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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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** |
| | **Residential<br>(Business)** | **Student Housing** | **Commercial Properties** | **Investments in Real Estate Debt** | **Other (Corporate)** | **Total** |
| **Revenues** | | | | | | |
| Rental revenue | $29348 | $4749 | $639 | $— | $— | $34736 |
| Other revenue | 433 | 819 |  |  |  | 1252 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 29781 | 5568 | 639 |  |  | 35988 |
| **Expenses** |  |  |  |  |  |  |
| Property operating expenses | 1206 | 2572 | 142 |  |  | 3920 |
| General and administrative | 2923 | 628 | 55 | 233 | 3361 | 7200 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 4129 | 3200 | 197 | 233 | 3361 | 11120 |
| Segment net operating income (loss) | 25652 | 2368 | 442 | (233) | (3361) | 24868 |
| Income from an unconsolidated joint venture | 88 |  |  |  |  | 88 |
| Income from investments in real estate debt, net |  |  |  | 4465 |  | 4465 |
| Gain (loss) on sale of real estate | 393 |  |  |  |  | 393 |
| Interest expense, net | (9062) | (1447) |  |  | 1062 | (9447) |
| Impairment of investments in real estate | (2473) |  |  |  |  | (2473) |
| GAAP segment income (loss) | $14598 | $921 | $442 | $4232 | $(2299) | $17894 |
| Other segment income (expense)<sup>(1)</sup> | (13010) | (2459) | (365) |  | (3705) | (19539) |
| **Net income (loss)** | 1588 | (1538) | 77 | 4232 | (6004) | (1645) |
| Net (income) loss attributable to non-controlling interest in the consolidated subsidiaries | (111) | 154 | (12) |  |  | 31 |
| Net (income) loss attributable to non-controlling interest in the Operating Partnership |  |  |  |  | (14) | (14) |
| **Net income (loss) attributable to SDREIT stockholders** | $1477 | $(1384) | $65 | $4232 | $(6018) | $(1628) |
| _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain 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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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** |
| | **Residential<br>(Business)** | **Student Housing** | **Commercial Properties** | **Investments in Real Estate Debt** | **Other (Corporate)** | **Total** |
| **Revenues** | | | | | | |
| Rental revenue | $28082 | $4857 | $— | $— | $— | $32939 |
| Other revenue | 119 | 884 |  |  |  | 1003 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 28201 | 5741 |  |  |  | 33942 |
| **Expenses** |  |  |  |  |  |  |
| Property operating expenses | 660 | 2653 |  |  |  | 3313 |
| General and administrative | 2550 | 693 |  |  | 3048 | 6291 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 3210 | 3346 |  |  | 3048 | 9604 |
| Segment net operating income (loss) | 24991 | 2395 |  |  | (3048) | 24338 |
| Income from an unconsolidated joint venture | 32 |  |  |  |  | 32 |
| Gain (loss) on sale of real estate | 34 |  |  |  |  | 34 |
| Interest expense, net | (8418) | (1425) |  |  | 771 | (9072) |
| Impairment of investments in real estate | (1951) | (62) |  |  |  | (2013) |
| GAAP segment income (loss) | $14688 | $908 | $— | $— | $(2277) | $13319 |
| Other segment income (expense)<sup>(1)</sup> | (12903) | (5667) |  |  | (2049) | (20619) |
| **Net income (loss)** | 1785 | (4759) |  |  | (4326) | (7300) |
| Net (income) loss attributable to non-controlling interest in the consolidated subsidiaries | (352) | 476 |  |  |  | 124 |
| Net (income) loss attributable to non-controlling interest in the Operating Partnership |  |  |  |  | 40 | 40 |
| **Net income (loss) attributable to SDREIT stockholders** | $1433 | $(4283) | $— | $— | $(4286) | $(7136) |
| _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees, and performance participation allocation. | _______________________________________<br><sup>(1)</sup> Includes property expenses that are not significant or regularly provided to the CODM, including depreciation and amortization and unrealized gain (loss) on derivative instruments as well as certain corporate expenses, including management fees, and performance participation allocation. |

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**17. SUBSEQUENT EVENTS**

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

Subsequent to September 30, 2025, the Company issued the following shares at aggregate gross proceeds of $25.2 million.

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| | | |
|:---|:---|:---|
| | **Number of Shares Issued** | **Gross Proceeds** |
| Class E Shares<sup>(1)</sup> | 567726 | $6348 |
| Class F Shares | 902351 | 9980 |
| Class AA Shares<sup>(2)</sup> | 817544 | 8903 |
| Total | 2287621 | $25231 |

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_______________________________________

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<sup>(1)</sup> Includes 31,011 shares at $0.3 million 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 $67.7 thousand for Class AA Shares.

***Distributions***

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

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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** |
| September 30, 2025 | September 30, 2025 | $0.0638 | $0.0594 | $0.0638 | $0.0594 | $0.0638 | $0.0638 | October 10, 2025 |
| October 31, 2025 | October 31, 2025 | $0.0643 | $0.0597 | $0.0643 | $0.0597 | $0.0643 | $0.0643 | November 12, 2025 |

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***Asset Acquisitions***

On October 9, 2025, the Company acquired a 1.3 million square foot distribution center in Marysville, Ohio. The property is 100% leased on a long-term basis to a wholly-owned subsidiary of a leading marketer of branded consumer lawn and garden care products that is listed on the NYSE. The property was acquired for a total purchase price of approximately $122.0 million, excluding transaction costs. The Company funded the acquisition with a combination of cash and proceeds from borrowings. The mortgage loan of $76.3 million bears interest at a fixed rate of 5.80% per annum and matures in November 2030. The loan requires monthly interest-only payments through maturity and is secured by the property.

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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 September 30, 2025, the Company, through its wholly-owned subsidiary, CapGrow Holdings Member, LLC (the "CapGrow Member"), owns a 93.26% 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 September 30, 2025, investments in real estate debt consists of an investment in preferred equity in a real estate company that owns 68 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 71% 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 $35.8 million as of September 30, 2025. A 100 basis point increase or decrease in SOFR would have resulted in an increase or decrease in interest expense of approximately $0.3 million during the nine months ended September 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 several 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.

A prolonged federal government shutdown could affect our business, operations, and financial performance. A lapse in government funding may delay or disrupt regulatory, administrative, or capital-markets processes, including SEC reviews, real estate permitting, and certain financing or transactional approvals. Prolonged shutdowns can also contribute to reduced economic activity, financial-market volatility, tighter credit conditions, and higher interest rates, any of which could adversely impact tenant demand, property valuations, and our access to capital. While the duration and scope of any shutdown are uncertain, extended disruptions could have a material adverse effect on our results of operations, liquidity, and overall financial condition.

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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. Rules and regulations concerning the issuance of visas for international 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 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.

**Q3 2025 Highlights**

***Operating Results***

• We declared monthly distributions totaling $7.2 million for the three months ended September 30, 2025. During the three months ended September 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% | 6.58% | 6.85% | 6.60% | 7.17% | 7.19% |
| Year-to-Date Total Return, without upfront selling commissions<sup>(2)</sup> | 9.19% | 8.78% | 10.45% | 8.29% | 8.98% | 7.94% |
| Year-to-Date Total Return, assuming maximum upfront selling commissions<sup>(2)(3)</sup> | 7.01% | 6.59% | 10.45% | 6.12% | 6.81% | 5.78% |
| Inception-to-Date Total Return, without upfront selling commissions<sup>(2)</sup> | 10.67% | 8.94% | 9.72% | 7.44% | 7.75% | 7.94% |
| Inception-to-Date Total Return, assuming maximum upfront selling commissions<sup>(2)(3)</sup> | 9.86% | 8.04% | 9.72% | 6.14% | 5.91% | 5.78% |

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____________________________________________________________________________

(1) The annualized distribution rate is calculated as the September 2025 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 8 vacant homes through CapGrow at an aggregate purchase price of $4.8 million during the three months ended September 30, 2025, which were leased to tenants following their acquisition.

• We sold 19 CapGrow homes for aggregate net proceeds of $5.1 million during the three months ended September 30, 2025.

• In August 2025, we invested $2.5 million in commercial mortgage-backed securities.

***Capital and Financing Activities***

• During the three months ended September 30, 2025, we raised an aggregate of $54.8 million of gross proceeds from the sale of our common shares, including proceeds from our distribution reinvestment plan, and repurchased common shares for less than $0.1 million.

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• CapGrow incurred net additional borrowings of $2.2 million from the revolving credit facility to partly fund CapGrow's asset acquisitions during the three months ended September 30, 2025.

• CapGrow repaid $1.7 million of its mortgage loans and $0.6 million revolving credit facility as part of its scheduled debt service payments and asset sales during the three months ended September 30, 2025.

***Subsequent Event Highlights***

• Subsequent to September 30, 2025, we raised aggregate gross proceeds of $25.2 million from the sale of our common shares.

***•*** On October 9, 2025, the Company acquired a 1.3 million square foot distribution center in Marysville, Ohio. The property is 100% leased on a long-term basis to a wholly-owned subsidiary of a leading marketer of branded consumer lawn and garden care products that is listed on the NYSE. The property was acquired for a total purchase price of approximately $122.0 million, excluding transaction costs. The Company funded the acquisition with a combination of cash and proceeds from borrowings. The mortgage loan of $76.3 million bears interest at a fixed rate of 5.80% per annum and matures in November 2030. The loan requires monthly interest-only payments through maturity and is secured by the property.

**Investment Portfolio**

*Summary of Portfolio*

*Investments in Real Estate*

The following table provides a summary of our investments in real estate as of September 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 | 1,114 units | 98% | $31933 | $541000 | $29781 | 83% |
| Student Housing | 1 | 792 beds | 74% | $7918 | 71100 | 5568 | 15% |
| Commercial Properties | 2 | 564,990 sq ft | 100% | $0.18 | 8700 | 639 | 2% |
| Total | 3 |  |  |  | $620800 | $35988 | 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 September 30, 2025. For student housing, occupancy is defined as the percentage of occupied beds as of September 30, 2025. There are leases in place with a national parking operator for both parking garages as of September 30, 2025.

(3)&nbsp;&nbsp;&nbsp;&nbsp;Average effective annualized base rent represents the annualized base rent for the three months ended September 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 September 30, 2025.

(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment revenue is presented for the nine months ended September 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 September 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 | 93.26% | $455000 | 1,114 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 September 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 September 30, 2025, the Company owned a 93.26% 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 September 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 (three months) | 8 | $155 | —% | 15 | 1% |
| 2026 | 150 | 4303 | 12% | 361 | 14% |
| 2027 | 488 | 13046 | 38% | 980 | 40% |
| 2028 | 87 | 3376 | 10% | 207 | 8% |
| 2029 | 112 | 3228 | 9% | 225 | 9% |
| 2030 | 170 | 4700 | 14% | 362 | 14% |
| 2031 | 32 | 1828 | 5% | 130 | 5% |
| 2032 | 16 | 2449 | 7% | 139 | 6% |
| 2033 | 3 | 94 | —% | 8 | —% |
| 2034 | 14 | 922 | 3% | 52 | 2% |
| Thereafter | 6 | 579 | 2% | 30 | 1% |
| Total | 1086 | $34680 | 100% | 2509 | 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 September 30, 2025 multiplied by 12. The Company had not entered into any tenant concessions or rent abatements as of September 30, 2025. Amount excludes tenant recoveries, straight-line rent, and above-market and below-market lease amortization

***Tenant Concentration in CapGrow***

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While CapGrow currently leases properties to 47 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 nine months ended September 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 September 30, 2025, there are 45 separate subsidiaries of Sevita that have leased 499 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 nine months ended September 30, 2025, and 30% of the Company's total assets as of September 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 439 of CapGrow's properties, which represents approximately 35% of the Company's rental income for the nine months ended September 30, 2025, and 26% of the Company's total assets as of September 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 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 September 30, 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 September 30, 2025 (in thousands):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | | **September 30, 2025** | **September 30, 2025** | **September 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> | $36076 | $36076 | $36076 |
| 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 | 8018 |
| CMBS - floating | 1M SOFR + 4.00% | August 2030 | 2500 | 2500 | 2501 |
|  |  |  | $63576 | $63556 | $63595 |

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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 September 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.

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<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 September 30, 2025 Compared to the Three Months Ended September 30, 2024***

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

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| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended<br>September 30,** | **Three Months Ended<br>September 30,** | |
| | **2025** | **2024** |<br>**Change** |
| **Revenues** |  |  |  |
| Rental revenue | $11518 | $11249 | $269 |
| Other revenue | 429 | 447 | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 11947 | 11696 | 251 |
| **Expenses** |  |  |  |
| Property operating expenses | 1566 | 1290 | 276 |
| Management fees | 519 | 342 | 177 |
| Performance participation allocation | 1665 | 1087 | 578 |
| General and administrative | 2372 | 2041 | 331 |
| Depreciation and amortization | 4927 | 5069 | (142) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 11049 | 9829 | 1220 |
| Operating income | 898 | 1867 | (969) |
| **Other income (expense):** |  |  |  |
| Interest expense, net | (3197) | (3021) | (176) |
| Impairment of investments in real estate | (560) | (991) | 431 |
| Income from investments in real estate debt, net | 1866 |  | 1866 |
| Income (loss) from an unconsolidated entity | 29 | 22 | 7 |
| Unrealized gain (loss) on derivative instruments | (159) | (733) | 574 |
| Gain on sale of real estate | 157 |  | 157 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (1864) | (4723) | 2859 |
| **Net income (loss)**  | $(966) | $(2856) | $1890 |
| Net (loss) income attributable to non-controlling interest in the consolidated subsidiaries | 2 | 63 |  |
| Net (loss) income attributable to non-controlling interest in the Operating Partnership | (9) | 11 |  |
| **Net loss attributable to SDREIT stockholders** | $(973) | $(2782) |  |
| **Net loss per common share - basic and diluted** | $(0.03) | $(0.12) |  |
| **Weighted-average common shares outstanding - basic and diluted** | 38376881 | 23972985 |  |

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***Rental Revenue***

Rental revenue from property operations increased by $0.3 million from $11.2 million during the three months ended September 30, 2024 to $11.5 million during the three months ended September 30, 2025, which was primarily due to rental income of $0.3 million generated from the parking garages acquired in March 2025.

***Other Revenue***

Other revenue remained at $0.4 million during the three months ended September 30, 2025 and 2024.

***Property Operating Expenses***

Property operating expenses increased by $0.3 million from $1.3 million during the three months ended September 30, 2024 to $1.6 million during the three months ended September 30, 2025 primarily due to the increase in repair and maintenance expenses at CapGrow and the acquisition of the parking garages in March 2025.

***Management Fees***

Management fees increased by $0.2 million from $0.3 million during the three months ended September 30, 2024 to $0.5 million for the three months ended September 30, 2025. The increase was due to the higher net asset value of the Company, resulting from the appreciation of CapGrow and additional equity raised.

***Performance Participation Allocation***

Performance participation allocation increased by $0.6 million from $1.1 million during the three months ended September 30, 2024 to $1.7 million for the three months ended September 30, 2025. The increase was primarily due to the appreciation of CapGrow which led to a higher net asset value.

***General and Administrative Expenses***

General and administrative expenses increased by $0.4 million from $2.0 million during the three months ended September 30, 2024 to $2.4 million for the three months ended September 30, 2025, which was primarily due to the accrual of a performance bonus for employees at a wholly-owned subsidiary of CapGrow JV.

***Depreciation and Amortization***

Depreciation and amortization decreased by $0.2 million from $5.1 million during the three months ended September 30, 2024 to $4.9 million for the three months ended September 30, 2025.

***Interest Expenses, net***

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

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

Impairment of investments in real estate decreased $0.4 million from $1.0 million during the three months ended September 30, 2024 to $0.6 million for the three months ended September 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 September 30, 2025, we recognized income from our investment in real estate debt of $1.9 million due to the investments in (i) CMBS in December 2024 and August 2025, (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.

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

Unrealized loss on derivative instruments of $0.2 million and $0.7 million for the three months ended September 30, 2025 and 2024, respectively, pertained to University Courtyard's fair value adjustments relating to its interest rate cap.

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

During the three months ended September 30, 2025, CapGrow sold several of its properties and recognized an aggregate gain of $0.2 million. No such gain was recognized during the three months ended September 30, 2024.

***Nine months ended September 30, 2025 Compared to the Nine months ended September 30, 2024***

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

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| | | | |
|:---|:---|:---|:---|
| | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | |
| | **2025** | **2024** |<br>**Change** |
| **Revenues** |  |  |  |
| Rental revenue | $34736 | $32939 | $1797 |
| Other revenue | 1252 | $1003 | 249 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 35988 | 33942 | 2046 |
| **Expenses** |  |  |  |
| Property operating expenses | 3920 | 3313 | 607 |
| Management fees | 1417 | 962 | 455 |
| Performance participation allocation | 2288 | 1087 | 1201 |
| General and administrative | 7200 | 6291 | 909 |
| Depreciation and amortization | 15019 | 17975 | (2956) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total expenses | 29844 | 29628 | 216 |
| Operating income | 6144 | 4314 | 1830 |
| **Other income (expense):** |  |  |  |
| Interest expense, net | (9447) | (9072) | (375) |
| Impairment of investments in real estate | (2473) | (2013) | (460) |
| Income from investments in real estate debt, net | 4465 |  | 4465 |
| Income (loss) from an unconsolidated entity | 88 | 32 | 56 |
| Unrealized gain (loss) on derivative instruments | (815) | (595) | (220) |
| Gain on sale of real estate | 393 | 34 | 359 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | $(7789) | (11614) | 3825 |
| **Net income (loss)**  | $(1645) | $(7300) | $5655 |
| Net (loss) income attributable to non-controlling interest in the consolidated subsidiaries | 31 | 124 |  |
| Net (loss) income attributable to non-controlling interest in the Operating Partnership | (14) | 40 |  |
| **Net loss attributable to SDREIT stockholders** | $(1628) | $(7136) |  |
| **Net loss per common share - basic and diluted** | $(0.05) | $(0.31) |  |
| **Weighted-average common shares outstanding - basic and diluted** | 35189568 | 23174275 |  |

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***Rental Revenue***

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Rental revenue from property operations increased by $1.8 million from $32.9 million million during the nine months ended September 30, 2024 to $34.7 million during the nine months ended September 30, 2025, which was primarily due to increased rental income generated from new properties acquired at CapGrow and accelerated amortization of below-market lease intangibles as a result of several leases being terminated in the current period. Additionally, included in the nine months ended September 30, 2025 was $0.6 million of rental income generated from the parking garages acquired in March 2025.

***Other Revenue***

Other revenue increased by $0.3 million from $1.0 million during the nine months ended September 30, 2024 to $1.3 million during the nine months ended September 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 $0.6 million from $3.3 million during the nine months ended September 30, 2024 to $3.9 million during the nine months ended September 30, 2025 primarily due to the increase in repair and maintenance expenses at CapGrow and the acquisition of the parking garages in March 2025.

***Management Fees***

Management fees increased by $0.4 million from $1.0 million during the nine months ended September 30, 2024 to $1.4 million for the nine months ended September 30, 2025. The increase was due to the higher net asset value of the Company resulting from the appreciation of CapGrow and additional equity raised.

***Performance Participation Allocation***

Performance participation allocation increased by $1.2 million from $1.1 million during the nine months ended September 30, 2024 to $2.3 million for the nine months ended September 30, 2025. The increase was primary due to the appreciation of CapGrow which led to a higher net asset value.

***General and Administrative Expenses***

General and administrative expenses increased by $0.9 million from $6.3 million during the nine months ended September 30, 2024 to $7.2 million for the nine months ended September 30, 2025, which was primarily due to the accrual of a performance bonus for employees at a wholly-owned subsidiary of CapGrow JV and CapGrow's increases in (i) payroll, primarily due to increased headcount and (ii) professional fees.

***Depreciation and Amortization***

Depreciation and amortization decreased by $3.0 million from $18.0 million during the nine months ended September 30, 2024 to $15.0 million for the nine months ended September 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 $0.3 million from $9.1 million during the nine months ended September 30, 2024 to $9.4 million for the nine months ended September 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 $0.5 million from $2.0 million during the nine months ended September 30, 2024 to $2.5 million for the nine months ended September 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 nine months ended September 30, 2025, we recognized income from our investment in real estate debt of $4.5 million due to the investments in (i) CMBS in December 2024 and August 2025, (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 loss of $0.8 million and $0.6 million on derivative instruments for the nine months ended September 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 $0.4 million from $34 thousand during the nine months ended September 30, 2024 to $0.4 million for the nine months ended September 30, 2025 as CapGrow sold several of its properties at a gain during the nine months ended September 30, 2025 as compared to one property sold at a gain during the nine months ended September 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.

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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 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 September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Net income (loss) attributable to SDREIT shareholders | $(973) | $(2782) | $(1628) | $(7136) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to arrive at FFO: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 4927 | 5069 | 15019 | 17975 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain on sale of real estate | (157) | 0 | (393) | (34) |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment on investments in real estate | 560 | 991 | 2473 | 2013 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount attributable to non-controlling interests in the consolidated subsidiary for above adjustments | (392) | (1165) | (1273) | (3491) |
| &nbsp;&nbsp;&nbsp;&nbsp;Unconsolidated entities depreciation and noncontrolling interests adjustments | 3 | 6 | 9 | 15 |
| FFO attributable to SDREIT shareholders | $3968 | $2119 | $14207 | $9342 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to arrive at AFFO: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Straight-line rental income and expense | (107) | (122) | (319) | (407) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of below-market lease intangibles | (954) | (1517) | (3961) | (3817) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of discount on mortgage and other loans payable | 64 | 69 | 201 | 208 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing fees - property level | 68 | 87 | 216 | 211 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of restricted stock awards | 52 | 62 | 174 | 153 |
| &nbsp;&nbsp;&nbsp;&nbsp;Organizational costs and transaction costs | 89 | 78 | 398 | 250 |
| &nbsp;&nbsp;&nbsp;&nbsp;Origination fees |  |  | (605) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash performance participation allocation | 1665 | 1087 | 2288 | 1087 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized (gains) losses from changes in the fair value of investments in real estate debt and other financial instruments | 106 | 733 | 780 | 595 |
| &nbsp;&nbsp;&nbsp;&nbsp;Paid-in-kind interest | (480) |  | (1076) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount attributable to unconsolidated entities for above adjustments | 2 | 2 | 2 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amount attributable to non-controlling interests for above adjustments | 50 | 226 | 197 | 720 |
| AFFO attributable to SDREIT shareholders | $4523 | $2824 | $12502 | $8347 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recurring tenant improvements and other capital expenditures | (80) | (182) | (110) | (182) |
| &nbsp;&nbsp;&nbsp;&nbsp;Management fee | 519 | 342 | 1417 | 962 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stockholder distribution fees paid | (156) | (102) | (413) | (273) |
| FAD Attributable to SDREIT Shareholders | $4806 | $2882 | $13396 | $8854 |

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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 September 30, 2025 (amounts in thousands, except per share/unit data):

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| | |
|:---|:---|
| **Components of NAV** | **September 30, 2025** |
| Investments in real estate (including goodwill) | $620800 |
| Investment in an unconsolidated joint venture | 2176 |
| Investments in real estate debt | 63763 |
| Cash and cash equivalents | 63294 |
| Restricted cash | 19400 |
| Receivables | 1354 |
| Other assets | 13644 |
| Mortgages, credit facility and financing obligations, net | (270999) |
| Accounts payable and other liabilities | (23645) |
| Management fee payable | (348) |
| Accrued participation allocation | (2288) |
| Due to related parties | (25) |
| Noncontrolling interests in the consolidated subsidiaries | (31682) |
| **Net Asset Value** | $455444 |
|  **Number of outstanding shares/units** | 41306939 |

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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 September 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 | $216863 | $68649 | $83133 | $65800 | $18641 | $537 | $1821 | $455444 |
| Number of outstanding shares/ units | 19607847 | 6304347 | 7386010 | 6061450 | 1735324 | 50142 | 161819 | 41306939 |
| NAV Per Share/Unit | $11.0600 | $10.8892 | $11.2555 | $10.8555 | $10.7422 | $10.7006 | $11.2555 | $11.0259 |

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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 September 30, 2025:

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| | | |
|:---|:---|:---|
| **Property Type** | **Discount Rate** | **Exit Capitalization Rate** |
| Residential (Business) | 8.4% | 6.8% |
| Student Housing | 8.8% | 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 September 30, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Input** | **Hypothetical Change** | **Residential (Business)** | **Student Housing** | **Commercial Properties** |
| Discount Rate | 0.25% decrease | 1.3% | 1.0% | 1.1% |
| Discount Rate | 0.25% increase | (1.3)% | (1.0)% | (1.1)% |
| Exit Capitalization Rate (weighted average) | 0.25% decrease | 3.7% | 4.4% | 1.1% |
| Exit Capitalization Rate (weighted average) | 0.25% increase | (3.5)% | (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 September 30, 2025:

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| | | |
|:---|:---|:---|
| **Debt Type** | **Contracted Interest Rates** | **Market Interest Rate** |
| Fixed rate debt (weighted average) | 4.50% | 6.04% |
| Variable rate debt (weighted average) <sup>(1)</sup> | SOFR + 3.15% | SOFR + 2.92% |

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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 September 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 | 0.4% | 0.3% |
| Mortgage Interest Rates (weighted average) | 0.25% Increase | (0.4)% | (0.3)% |

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

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| | |
|:---|:---|
|  | **September 30, 2025** |
| Shareholders' equity | $351188 |
| Redeemable non-controlling interest in SDREIT Operating Partnership | 1821 |
| Total SDREIT stockholders' equity and SDREIT Operating Partnership partners' capital under GAAP | $353009 |
| Adjustments: |  |
| Accrued organizational and offering costs | 2405 |
| Accumulated depreciation and amortization under GAAP | 41577 |
| Straight line rent receivable | (1733) |
| Unrealized net real estate appreciation | 60181 |
| Unvested dividends reinvestment | 5 |
| NAV | $455444 |

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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 $0.0638 per share for the month ended September 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 September 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 |
| July 31, 2025 | 0.0620 | 0.0575 | 0.0620 | 0.0575 | 0.0620 | 0.0620 |
| August 31, 2025 | 0.0638 | 0.0592 | 0.0638 | 0.0592 | 0.0638 | 0.0638 |
| September 30, 2025 | 0.0638 | 0.0594 | 0.0638 | 0.0594 | 0.0638 | 0.0638 |
| Total | $1.9312 | $1.7072 | $1.3802 | $1.1655 | $0.8776 | $0.4987 |

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

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2025** | **Nine Months Ended September 30, 2024** | **Nine Months Ended September 30, 2024** |
| | **Amount** | **Percentage** | **Amount** | **Percentage** |
| **Distributions** | | | | |
| Payable in cash | $15338 | 79% | $10450 | 80% |
| Reinvested in shares | 4090 | 21% | 2544 | 20% |
| Total distributions | $19428 | 100% | $12994 | 100% |
| **Sources of Distributions** |  |  |  |  |
| Cash flows from operating activities | $16531 | 85% | $12994 | 100% |
| DRIP<sup>(1)</sup> | 2897 | 15% |  | —% |
| **Total Sources of distribution** | $19428 | 100% | $12994 | 100% |
| Cash flows from operating activities | $16134 |  | $12493 |  |
| Funds from operations<sup>(2)</sup> | $14207 |  | $9342 |  |
| Adjusted funds from operations<sup>(2)</sup> | $12502 |  | $8347 |  |

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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 September 30, 2025, we declared $2.1 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 $63.3 million of immediate liquidity as of September 30, 2025, which is comprised of cash and cash equivalents, including certain amounts held in anticipation of the closing of the distribution center transaction in Marysville, Ohio. 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 September 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 September 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> | 4.41% | July 2031 | N/A | $217523 |
| Revolving credit facility<sup>(3)</sup> | 7.82% | February 2027 | $50000 | 35783 |
| Financing obligations<sup>(4)</sup> |  |  |  | 23199 |
| Discount and deferred financing costs, net |  |  |  | (3271) |
| Total indebtedness |  |  |  | $273234 |

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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, including effect of applicable interest rate cap, 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 September 30, 2025 was 7.85%.

(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 and certain sales to an offshore fund formed for the purpose of investing in the Company), 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 September 30, 2025, we have received net proceeds of $288.6 million, including proceeds from our distribution reinvestment plan, from issuing an aggregate of 5,614,670 Class F common shares, 6,521,874 Class FF common shares, 6,061,450 Class AA common shares, 1,735,324 Class A common shares, 50,142 Class I-S common shares and 6,955,744 Class E common shares in the private offering. This is in addition to the $150.2 million raised from the sale of 15,023,559 Class F common shares (including reinvestment of distributions) in private transactions that preceded this offering. Additionally, we issued an aggregate $4.7 million, or 430,266 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 September 30, 2025, we have repurchased Class F common shares and Class FF common shares of 1,030,382 and 217,527, respectively, totaling $13.2 million.

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**Cash Flows**

***Nine Months Ended September 30, 2025 and 2024 (amounts in thousands):***

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| | | | |
|:---|:---|:---|:---|
|  | **Nine Months Ended<br>September 30,** | **Nine Months Ended<br>September 30,** | **Difference** |
| | **2025** | **2024** | |
| Cash flows provided by operating activities | $16134 | 12493 | $3641 |
| Cash flows used in investing activities | (94550) | (8580) | (85970) |
| Cash flows provided by financing activities | 106270 | 9254 | 97016 |
| Net change in cash and cash equivalents and restricted cash | $27854 | $13167 | $14687 |

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Cash flows provided by operating activities increased by approximately $3.6 million during the nine months ended September 30, 2025 as compared to the nine months ended September 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 $86.0 million during the nine months ended September 30, 2025 as compared to the nine months ended September 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 $97.0 million during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024, primarily due to (i) more proceeds from stock issuances, partially offset by the repurchases of our common stock and increased distributions to stockholders and (ii) increased net borrowings at CapGrow to fund property acquisitions.

**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 September 30, 2025 (amounts in thousands):

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Total** | **Less than 1 year** | **1-3 years** | **3-5 years** | **More than 5 years** |
| Indebtedness <sup>(1)</sup> | $272449 | $1127 | $55291 | $37049 | $178982 |
| Organization and offering costs<sup>(2)</sup> | 2405 | 172 | 1374 | 859 |  |
| Total | $274854 | $1299 | $56665 | $37908 | $178982 |

---

______________________________________________

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

<sup>(2)</sup> Amount owed to our Adviser as of September 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 September 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.

------

**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 September 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 September 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 September 30, 2025, the Adviser elected to receive its management fees in Class E shares and we issued 44,413 unregistered Class E shares to the Adviser in satisfaction of the management fees totaling $0.5 million for the period from February 2025 through April 2025. Since our Adviser elected to receive Class E shares, during the three months ended September 30, 2025, we also issued 5,109 unregistered Class E shares to the Adviser as part of the distribution reinvestment program. During the three months ended September 30, 2025, we also issued 1,692 unregistered Class E shares to our independent directors and to an employee of Sculptor in connection with their participation in the distribution reinvestment plan. A portion of the shares issued to our independent directors are restricted and are subject to vesting and settlement provisions as detailed within the independent director compensation plan.

During the three months ended September 30, 2025, the Company issued 1,358,297 shares of Class AA common stock, 27,803 shares of Class A common stock, and 3,457,992 shares of Class E common stock for aggregate net proceeds of approximately $53.2 million. During the three months ended September 30, 2025, the Company issued 406 shares of Class F common stock, 67,674 shares of Class FF common stock, 57,417 shares of Class AA common stock, 2,825 shares of Class A common stock and 889 shares of Class I-S common stock for aggregate net proceeds of approximately $1.4 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 September 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> |
| July 2025 | 5263 | 10.52 | 5263 |  |
| August 2025 |  |  |  |  |
| September 2025 |  |  |  |  |
| Total | 5263 |  | 5263 |  |

---

_______________________________________________

<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) None

(b) Not applicable.

(c) During the quarterly period ended September 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](sierramarysvillepsa-sculpt.htm)</u>\*, \*\*\* | Real Estate Purchase and Sale Agreement dated as of August 14, 2025 by and between Sierra Marysville Storage, LLC and Marysville Owner LLC |
| <u>[10.2](sierramarysville-amendment.htm)</u>\* | First Amendment to the Real Estate Purchase and Sale Agreement dated as of August 14, 2025 by and between Sierra Marysville Storage, LLC and Marysville Owner LL |
| <u>[10.3](sierramarysville-secondame.htm)</u>\* | Second Amendment to the Real Estate Purchase and Sale Agreement dated as of August 14, 2025 by and between Sierra Marysville Storage, LLC and Marysville Owner LL |
| <u>[10.4](sierramarysville-thirdamen.htm)</u>\*,\*\*\* | Third Amendment to the Real Estate Purchase and Sale Agreement dated as of August 14, 2025 by and between Sierra Marysville Storage, LLC and Marysville Owner LL |
| <u>[10.5](sierramarysville-fourthame.htm)</u>\* | Fourth Amendment to the Real Estate Purchase and Sale Agreement dated as of August 14, 2025 by and between Sierra Marysville Storage, LLC and Marysville Owner LL |
| <u>[31.1](sdreit3q2025ex311certifica.htm)</u>\* | Certification of Principal Executive Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| <u>[31.2](sdreit3q2025ex312certifica.htm)</u>\* | Certification of Principal Financial Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| <u>[32.1](sdreit3q2025ex321certifica.htm)</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 |
| <u>[32.2](sdreit3q2025ex322certifica.htm)</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 |
| 101 | The following financial information from the Company's Annual Report on Form 10-Q for the three months ended September 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. |
| \*\*\* Portions of this document have been redacted pursuant to Item 601(b)(10)(iv) of Regulation S-K. | \*\*\* Portions of this document have been redacted pursuant to Item 601(b)(10)(iv) of Regulation S-K. |

---

------

**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: | November 13, 2025 | By: | /s/ Steven Orbuch |
|  |  |  | **Steven Orbuch** |
|  |  |  | Chief Executive Officer |
|  |  |  | (Principal Executive Officer) |
| Date: | November 13, 2025 | By: | /s/ Ellen Conti |
|  |  |  | **Ellen Conti** |
|  |  |  | Chief Financial Officer and Treasurer |
|  |  |  | (Principal Financial Officer) |
| Date: | November 13, 2025 | By: | /s/ Scott Ciccone |
|  |  |  | **Scott Ciccone** |
|  |  |  | Chief Accounting Officer |
|  |  |  | (Principal Accounting Officer) |

---

## Exhibit 10.1

**Exhibit 10.1**

**PURSUANT TO ITEM 601(b)(10) OF REGULATION S-K, CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED BY MEANS OF MARKING SUCH PORTIONS WITH ASTERISKS [\*\*\*] AS THE IDENTIFIED CONFIDENTIAL PORTIONS ARE BOTH NOT MATERIAL AND ARE THE TYPE OF INFORMATION THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

EXECUTION VERSION

REAL ESTATE PURCHASE AND SALE AGREEMENT

BETWEEN

**SIERRA MARYSVILLE STORAGE, LLC,**

An Ohio limited liability company, as **SELLER** 

AND

**MARYSVILLE OWNER LLC**,

a Delaware limited liability company, or its assignee, as **PURCHASER**

i

------

**<u>INDEX</u>**

**1.**&nbsp;&nbsp;&nbsp;&nbsp;**DEFINITIONS**&nbsp;&nbsp;&nbsp;&nbsp;1

**2.**&nbsp;&nbsp;&nbsp;&nbsp;**AGREEMENT TO BUY AND SELL**&nbsp;&nbsp;&nbsp;&nbsp;2

**3.**&nbsp;&nbsp;&nbsp;&nbsp;**PURCHASE PRICE AND DEPOSIT**&nbsp;&nbsp;&nbsp;&nbsp;3

**4.**&nbsp;&nbsp;&nbsp;&nbsp;**ESCROW AGENT**&nbsp;&nbsp;&nbsp;&nbsp;4

**5.**&nbsp;&nbsp;&nbsp;&nbsp;**TITLE AND SURVEY**&nbsp;&nbsp;&nbsp;&nbsp;4

**6.**&nbsp;&nbsp;&nbsp;&nbsp;**PURCHASER'S DUE DILIGENCE**&nbsp;&nbsp;&nbsp;&nbsp;6

**7.**&nbsp;&nbsp;&nbsp;&nbsp;**INTENTIONALLY OMITTED.**&nbsp;&nbsp;&nbsp;&nbsp;9

**8.**&nbsp;&nbsp;&nbsp;&nbsp;**OPERATION OF THE PROPERTY**&nbsp;&nbsp;&nbsp;&nbsp;9

**9.**&nbsp;&nbsp;&nbsp;&nbsp;**REPRESENTATIONS AND WARRANTIES**&nbsp;&nbsp;&nbsp;&nbsp;11

**10.**&nbsp;&nbsp;&nbsp;&nbsp;**CONDITIONS PRECEDENT TO CLOSING**&nbsp;&nbsp;&nbsp;&nbsp;17

**11.**&nbsp;&nbsp;&nbsp;&nbsp;**RISK OF LOSS**&nbsp;&nbsp;&nbsp;&nbsp;18

**12.**&nbsp;&nbsp;&nbsp;&nbsp;**CLOSING**&nbsp;&nbsp;&nbsp;&nbsp;19

**13.**&nbsp;&nbsp;&nbsp;&nbsp;**PRORATIONS AND CHARGES**&nbsp;&nbsp;&nbsp;&nbsp;19

**14.**&nbsp;&nbsp;&nbsp;&nbsp;**INSTRUMENTS OF CONVEYANCE AND OTHER DOCUMENTS**&nbsp;&nbsp;&nbsp;&nbsp;22

**15.**&nbsp;&nbsp;&nbsp;&nbsp;**DELIVERY AND PAYMENT**&nbsp;&nbsp;&nbsp;&nbsp;24

**16.**&nbsp;&nbsp;&nbsp;&nbsp;**BREACH AND REMEDIES**&nbsp;&nbsp;&nbsp;&nbsp;24

**17.**&nbsp;&nbsp;&nbsp;&nbsp;**NO OUTSIDE REPRESENTATIONS**&nbsp;&nbsp;&nbsp;&nbsp;25

**18.**&nbsp;&nbsp;&nbsp;&nbsp;**NOTICES**&nbsp;&nbsp;&nbsp;&nbsp;26

**19.**&nbsp;&nbsp;&nbsp;&nbsp;**BROKER'S COMMISSION; OTHER FEES**&nbsp;&nbsp;&nbsp;&nbsp;27

**20.**&nbsp;&nbsp;&nbsp;&nbsp;**BINDING EFFECT**&nbsp;&nbsp;&nbsp;&nbsp;27

**21.**&nbsp;&nbsp;&nbsp;&nbsp;**ASSIGNMENT**&nbsp;&nbsp;&nbsp;&nbsp;27

**22.**&nbsp;&nbsp;&nbsp;&nbsp;**SECTION HEADINGS**&nbsp;&nbsp;&nbsp;&nbsp;28

**23.**&nbsp;&nbsp;&nbsp;&nbsp;**PRONOUNS**&nbsp;&nbsp;&nbsp;&nbsp;28

**24.**&nbsp;&nbsp;&nbsp;&nbsp;**AGREEMENT IN COUNTERPARTS; ELECTRONIC SIGNATURES**&nbsp;&nbsp;&nbsp;&nbsp;28

**25.**&nbsp;&nbsp;&nbsp;&nbsp;**GOVERNING LAW**&nbsp;&nbsp;&nbsp;&nbsp;28

**26.**&nbsp;&nbsp;&nbsp;&nbsp;**FAILURE TO ENFORCE NOT A WAIVER**&nbsp;&nbsp;&nbsp;&nbsp;28

**27.**&nbsp;&nbsp;&nbsp;&nbsp;**SEVERABILITY**&nbsp;&nbsp;&nbsp;&nbsp;28

**28.**&nbsp;&nbsp;&nbsp;&nbsp;**CONFIDENTIALITY**&nbsp;&nbsp;&nbsp;&nbsp;28

**29.**&nbsp;&nbsp;&nbsp;&nbsp;**TIME OF ESSENCE**&nbsp;&nbsp;&nbsp;&nbsp;29

**30.**&nbsp;&nbsp;&nbsp;&nbsp;**ATTORNEYS' FEES**&nbsp;&nbsp;&nbsp;&nbsp;30

**31.**&nbsp;&nbsp;&nbsp;&nbsp;**WAIVER OF JURY TRIAL**&nbsp;&nbsp;&nbsp;&nbsp;30

ii

------

**REAL ESTATE PURCHASE AND SALE AGREEMENT**

THIS **REAL ESTATE PURCHASE AND SALE AGREEMENT** ("**Agreement**") is made and entered into by and between **Sierra Marysville Storage, LLC**, an Ohio limited liability company ("**Seller**"), and Marysville Owner LLC, a Delaware limited liability company, or its assignee ("**Purchaser**") (collectively, Seller and Purchaser are referred to herein as the "**Parties**"). The "**Effective Date**" of this Agreement shall be as provided in <u>Section 1(c)</u> of this Agreement.

**<u>RECITALS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.**WHEREAS**, Seller owns the property commonly known as 12575 Industrial Parkway, Marysville, Union County, Ohio, Union County Parcel Number 2700080170030 and 2700010220000 which is described in <u>Schedule 2(a)</u> attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.**WHEREAS**, Seller desires to sell to Purchaser, and Purchaser desires to buy from Seller, the Property (as hereinafter defined), subject to and in accordance with the terms and provisions herein after set forth.

**NOW, THEREFORE**, in consideration of the foregoing Recitals (which are incorporated herein by this reference), the mutual covenants and promises set forth in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Purchaser agree as follows:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.<u>DEFINITIONS</u>.** Various terms are defined within the text of this Agreement. Wherever such terms are used in this Agreement, they shall have the meanings given at their respective places of definition. In addition, as used in this Agreement, the following terms shall have the meanings indicated:

&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)**"Business Day"** shall mean day other than a Saturday, Sunday or legal holiday on which the banks of Marysville, Ohio or New York, New York are authorized by federal law to close. If the day by which any action is to be taken, any notice is to be given, or any document or information is to be furnished pursuant to this Agreement is not a Business Day, then the time for taking such action, giving of such notice or furnishing of such document or information shall be automatically extended to the next subsequent Business Day.

&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)**"Code"** shall mean the Internal Revenue Code of 1986, as amended, and the Regulations issued 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;(c)**"Effective Date"** of this Agreement shall mean (i) the date on which both Parties execute this Agreement, if the Parties execute this Agreement on the same date, or (ii) if the Parties do not execute this Agreement on the same date, the date on which the second party executes this Agreement thereby accepting the offer made by the first party executing this Agreement.

1

------

&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)**"Environmental Laws"** means all laws or regulations that regulate or relate to (a) pollution or the protection or clean-up of the environment, (b) the use, treatment, storage, transportation, handling, disposal, labeling, exposure of any person to, or release of hazardous substances, (c) the preservation or protection of waterways, groundwater, costal lands or waters, drinking water, air, wildlife, plants or other natural resources, (d) human health and safety or (e) which impose liability or responsibility with respect to any of the foregoing, as they may be in effect on or prior to the date 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;(e)"**Title Agent**" shall mean Developers Title, LLC.

&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)**"Scotts Lease"** shall mean that certain Lease between Seller, as landlord, and The Scotts Company LLC an Ohio limited liability company ("**Scotts**"), as tenant, executed as of June 12, 2025. The Scotts Lease has been signed, but the operations of Scotts shall continue to be governed by the Prior Lease (as hereinafter defined) until commencement date under the Scotts Lease, which is to be mutually agreed by Scotts and Seller and which Seller and Purchaser agree shall be the Closing Date. Where this Agreement makes any reference to Seller's obligations with respect to Scotts Lease (e.g. an obligation to comply with the insurance requirements of Scotts Lease), the intention of the parties is to refer to Seller's obligations under the Scotts Lease from and after the commencement date 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;(g)**"Escrow Agent"** or **"Title Insurer"** shall mean Stewart Title Guaranty Company

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.<u>AGREEMENT TO BUY AND SELL</u>.**

Seller shall sell and convey to Purchaser, and Purchaser shall purchase and accept from Seller, all of Seller's right, title, estate, and interest in and to, as applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the land described on <u>Schedule 2(a)</u>, which is attached to and made a part of this Agreement, together with all easements, privileges, and appurtenant rights belonging or in any way appertaining to the land (collectively, the "**Land**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)all buildings and improvements, including, without limitation, the buildings, all gas and electric systems, lighting, heating, ventilating, and air conditioning equipment and systems, elevators, radiators, incinerators, furnaces, hot water heaters, water, sewage, and plumbing systems, fire protection and security systems, and all other fixtures attached to the Land and buildings (collectively, the "**Improvements**," and together with the Land, the "**Real Property**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)all personal property of Seller located at the Property and used in the operation of the Property, including, but not limited to any generators, pumps and fuel tanks, whether considered a fixture or otherwise (the "**Personal Property**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)that certain Standard Form of Agreement between Owner and Design-Builder dated as of April 29, 2022 by and between Contegra Construction Company, L. L.C. ("**Contractor**") and Seller, that certain Standard Form of Agreement between Design-Builder

2

------

and Architect dated as of May 22, 2022 by and between Gray Design Group ("**Architect**") and Seller and any other agreements having a value in excess of $100,000 entered into between (i) the Seller or its affiliates on the one hand, and (ii) any providers of services or materials relating to the construction of the Improvements (the "**Project Documents**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)all other agreements, contracts, and contract rights (excluding the Project Documents) pertaining to the Property (collectively, the "**Service Contracts**") to the extent assignable at no cost to Seller, including without limitation, those described on <u>Schedule 9(a)(ix)</u>, which is attached to and made a part of this Agreement that Purchaser does not elect to terminate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)all leases, licenses to occupy or other agreements related to the occupancy of the Property, including the Scotts Lease ("**Leases**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)all intangible assets of any nature relating to the Property, including, but not limited to, (i) all guaranties and warranties issued with respect to the Personal Property or the Improvements ("**Warranties**"); (ii) all plans and specifications, drawings and prints describing the Improvements; (iii) trademarks or trade names associated with the Improvements; and (iv) all licenses, permits, approvals, certificates of occupancy, dedications, subdivision maps and entitlements now or hereafter issued, approved or granted by any governmental authority in connection with the Land or the Improvements (collectively, the "**Intangibles**").

All of the foregoing assets and properties to be acquired by Purchaser pursuant to this Agreement are collectively referred to in this Agreement as the "**Property**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.<u>PURCHASE PRICE AND DEPOSIT</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Subject to the charges and prorations set forth in <u>Section 13</u> of this Agreement, Purchaser shall pay to Seller, at Closing (as hereinafter defined), the sum of One Hundred Twenty-Two Million and 00/100 Dollars ($122,000,000.00) (the "**Purchase Price**") for the purchase of the Property. The Purchase Price shall be payable in cash or other immediately available United States funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Within three (3) Business Days after the Effective Date, Purchaser shall deposit the sum of Five Hundred Thousand and 00/100 Dollars ($500,000.00) (the "**Deposit**") with Escrow Agent, which shall be nonrefundable. If Purchaser closes the transactions contemplated by this Agreement, the Deposit shall be applied to the Purchase Price at Closing. Escrow Agent shall hold the Deposit in an interest-bearing account. Seller shall be entitled to any interest earned on the Deposit, except that Purchaser shall be entitled to such interest if (a) Purchaser closes the transactions contemplated by this Agreement, in which case such interest shall be applied to the Purchase Price at Closing, (b) Seller breaches and does not cure its obligations under this Agreement, (c) Seller is unable to convey marketable title to the Property or (d) Purchaser is otherwise entitled to a return of the Deposit hereunder (e.g. Purchaser elects to terminate this Agreement during the Due Diligence Period). Upon expiration of the Due Diligence Period and if Purchaser has not terminated this Agreement pursuant to Section 6(d), Purchaser shall make an additional deposit of One Million Five Hundred Thousand and 00/100 Dollars ($1,500,000) within one (1) Business Day following expiration or waiver of the Due

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Diligence Period, which additional deposit will, upon delivery, be considered a part of the "Deposit" for all purposes hereunder and shall be applied as otherwise set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Simultaneously with the delivery of the Deposit by Purchaser, Purchaser shall pay to Seller an amount equal to ten and 00/100 Dollars ($10.00) as independent consideration for Seller's performance under this Agreement (the "**Independent Consideration**"), which amount the Parties bargained for and agreed to as consideration for Seller's execution, delivery and performance of this Agreement and shall be retained by Seller in all instances, and shall not be applied against the Purchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Seller and Purchaser agree that the Purchase Price shall be allocated for federal income tax purposes in accordance with Section 1060 of the Code. Purchaser shall at least ten (10) days prior to Closing, prepare and deliver to the Seller for its review a schedule allocating the Purchase Price (and any other items that are required for federal income tax purposes to be treated as part of the Purchase Price) among the classes of assets being sold in accordance with Internal Revenue Service Form 8594 (such schedule, the "**Allocation**"). Seller shall review such Allocation and provide any objections to the Purchaser no later than five (5) days after receipt of the Allocation. If the Seller raises any objection to the Allocation, the parties will negotiate in good faith to resolve such objection(s). If Seller fails to timely object to the Allocation, then the Allocation will be deemed approved by Seller. Any items that Seller does not object to or that Purchaser and Seller resolve prior to Closing will comprise the agreed upon allocations with respect to such matters (the "**Final Allocation**"). Seller and Purchaser shall file all federal, state and local tax returns and related tax documents consistent with the Final Allocation, unless otherwise required by applicable law. For any items not included in the Final Allocation, each of Seller and Purchasers shall file all federal, state and local tax returns and related tax documents utilizing an allocation of the balance of the Purchase Price that it deems in its good faith discretion appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.<u>ESCROW AGENT</u>.**

Escrow Agent shall serve as Escrow Agent for the transaction contemplated in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.<u>TITLE AND SURVEY</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Within five (5) days after the Effective Date, Purchaser shall obtain a title insurance commitment (the "**Commitment**") issued by the Title Agent on behalf of the Title Insurer (the "**Title Company**") for the issuance of an owner's fee policy of title insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Seller shall provide Purchaser with the most recent survey of the Property in its possession. Purchaser may, but shall not be required to, order a new survey (the "**Survey**") to be prepared at Purchaser's cost, and which is prepared based upon actual field survey of the Property and certified to have been made in accordance with the "Minimum Standard Detail Requirements for Land Title Surveys" adopted by the American Land Title Association by a land surveyor registered in the state in which the Property is located and including the "Table A" requirements of Purchaser. Seller shall provide such surveyor with a copy of the Commitment to aid in preparing the Survey. Purchaser shall use commercially reasonable efforts to cause the

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Survey (if any) to be completed (if at all) on or before the end of the Due Diligence Period (as hereinafter defined) and, if completed, Purchaser shall promptly cause a copy of the Survey to be delivered to Seller and to the Title Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Purchaser shall endeavor to deliver to Seller within five (5) Business Days of Purchaser's receipt of the Commitment and Survey, but in all events prior to the expiration of the Due Diligence Period, written notice that Purchaser either:

&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)&nbsp;&nbsp;&nbsp;&nbsp;Approves and accepts Seller's title as it appears in the Commitment and on the Survey (if applicable); or

&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)&nbsp;&nbsp;&nbsp;&nbsp;Objects to any matters set forth in the Commitment or on the Survey, which matters shall be described in Purchaser's notice of objection with sufficient particularity to allow Seller to identify them.

If Purchaser fails to deliver notice as provided in this <u>Section 5</u> on or prior to the expiration of the Due Diligence Period, Purchaser shall be deemed to have approved title to the Property as shown in the Commitment and on the Survey, and all such matters shown in the Commitment and on the Survey shall be considered "**Permitted Exceptions**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;If Purchaser notifies Seller within the period described in <u>Section 5(c)</u> or <u>5(d)</u> above that the condition of title as shown in the Commitment or on the Survey is unacceptable (the "**Unpermitted Exceptions**"), then Seller shall deliver written notice to Purchaser indicating which Unpermitted Exceptions it intends to cure. Seller's failure to deliver written notice to Purchaser of which Unpermitted Exceptions Seller intends to cure within five (5) days of its receipt of Purchaser's written notice (or by the day prior to the scheduled Closing Date if earlier) shall be deemed a response notice whereby Seller elects not to cure any such Unpermitted Exceptions. To the extent that Seller does not agree to attempt to cure all of the Unpermitted Exceptions, Purchaser shall have the right, exercisable within five (5) days of Purchaser's receipt of Seller's response notice (or deemed response notice), to elect to terminate this Agreement, in which case the Deposit shall be returned to Purchaser and neither party shall have any further obligations hereunder other than those that expressly survive termination of this Agreement. In the event Seller elects to cure the Unpermitted Exceptions, Seller shall have until one (1) Business Day prior to Closing during which it shall attempt to cure such Unpermitted Exceptions, in its sole discretion and election. Notwithstanding the foregoing, Seller shall have no affirmative obligation under this Agreement to expend any funds or incur any liabilities to cause any title exceptions to be removed from the Commitment or insured over except to the

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extent an Unpermitted Exception is a Must-Cure Lien. Seller shall be required, in order to cure any Unpermitted Exception, to cause such Unpermitted Exception to either (i) be removed of record and no longer remain binding on Purchaser or the Property from and after Closing or (ii) otherwise be omitted from the Owner's Policy in a manner reasonably acceptable to Purchaser. If Seller fails to cure such Unpermitted Exceptions, then Purchaser may elect either to terminate this Agreement, or Purchaser may accept such title as Seller is able to convey, without reduction in the Purchase Price. If Purchaser elects to terminate this Agreement, then Purchaser shall deliver to Seller written notice of its decision to terminate this Agreement on or prior to the Closing Date (or such earlier date as may be required by this Section 6) and Escrow Agent shall return the Deposit, except the Independent Consideration if paid to Seller pursuant to <u>Section 6(b)</u>, to Purchaser and all documents and other funds previously deposited into escrow to the party so depositing same, and neither party shall have any further liability to the other hereunder, except as otherwise provided herein. Notwithstanding the foregoing, Seller shall be required to remedy, at Seller's sole expense, any defects in title that are (i) Leases other than the Scotts Lease, (ii) definitely ascertainable in amount or (iii) that are caused by Seller after the Effective Date by paying them or otherwise causing them to be discharged at Closing (the "**Must-Cure Liens**"). Notwithstanding anything in this Agreement to the contrary, no Must-Cure Liens shall ever be considered Permitted Exceptions irrespective of whether or not Purchaser shall object to them or Seller shall elect to cure them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;Intentionally omitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;At Closing, there shall be no other exceptions other than the Permitted Exceptions. At Closing, Purchaser shall satisfy all requirements of the Title Company to be satisfied by Purchaser to issue an ALTA Owner's Policy of Title Insurance, in an amount of the Purchase Price, dated as of the Closing Date, insuring title to the Property in Purchaser, subject to the Permitted Exceptions, on a form reasonably acceptable to Purchaser (the "**Owner's Policy**"). The costs of the Owner's Policy shall be allocated between the Parties as provided for in <u>Section 13</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.<u>PURCHASER'S DUE DILIGENCE</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Seller shall deliver to Purchaser copies (as the same appear in Seller's files) of the materials in Seller's possession and control pertaining to the Property, including without limitation those requested by Purchaser, within five (5) Business Days after the Effective Date (the "**Delivery Materials**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Purchaser and Purchaser's agents, employees, affiliates, consultants, inspectors, appraisers, engineers, and contractors (collectively, "**Purchaser's Consultants**") shall have thirty (30) days from the Effective Date, to make such inquiries and review such documents regarding the market conditions, the financial and physical condition of the Property, environmental matters, zoning, governmental compliance, financing and such other inquiries and documents as Purchaser deemed appropriate in its sole discretion (the "**Due Diligence Period**"). Purchaser shall have reasonable access to the Property for the purpose of making, at Purchaser's sole cost and expense, surveys, soil tests, inspections and other investigations upon at least twenty-four (24) hours prior notice to Seller. Purchaser's rights of access under this Section 6 shall be subject to the following terms and conditions:

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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;(i)there shall be no unreasonable disturbance or interference with Seller's business at the Property or the use and occupancy of the Property by Seller, any tenants or subtenants at the Property, or their respective guests. Seller may from time to time establish reasonable rules of conduct for Purchaser and Purchaser's Consultants in furtherance of the foregoing;

&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)unless otherwise authorized in advance by Seller, such entry shall only be permitted at a time pre-arranged between Purchaser and Seller. Purchaser shall not be permitted on the Property without prior written approval from Seller, which approval shall not be unreasonably withheld;

&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)neither Purchaser nor any of Purchaser's Consultants shall contact or have any discussions with: (A) any tenants at, or contractors providing services to, the Property (it being acknowledged by Seller that Purchaser will want to conduct a tenant interview and that Seller will arrange for same), provided that such restriction shall not apply to contact with any such person that is unrelated to the Property; or (B) any governmental authority having jurisdiction over the Property (other than ordinary contact associated with routine due diligence not involving any discussions with governmental officials), unless, in each case, Purchaser obtains the prior written consent of Seller, which consent may be withheld or conditioned in Seller's sole discretion;

&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)Seller or its agent reserves the right to be present at the Property during such entry; 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)Purchaser and Purchaser's Consultants shall not perform any invasive testing on the Property without the prior approval of Seller, which consent may be granted or withheld in Seller's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Purchaser and Purchaser's Consultants shall comply with any federal, state, or local law, regulation, or ordinance applicable to any activity in which they engage while on the Property. Purchaser's Consultants shall be reputable consultancy firms duly licensed under applicable state laws, if required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)On or before the expiration of the Due Diligence Period, Purchaser shall have the right to terminate this Agreement, for any reason or no reason, by delivering to Seller written notice of its decision to terminate this Agreement. This Agreement shall terminate automatically upon expiration of the Due Diligence Period unless Purchaser delivers to Seller written notice that Purchaser desires to proceed with the transactions contemplated herein (a "**Notice to Proceed**"). If Purchaser elects to terminate this Agreement or this Agreement terminates automatically pursuant to this <u>Section 6</u>, Escrow Agent shall return the Deposit, all Delivery Materials and other funds, except the Independent Consideration, previously deposited to the Party so depositing same, and neither Party shall have any further liability to the other hereunder, except as otherwise provided herein. Upon delivery of the Notice to Proceed, the Deposit shall become nonrefundable except as otherwise set forth in this Agreement, but shall at all times remain applicable to the Purchase Price at Closing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Prior to entering the property Purchaser shall maintain a policy of commercial general liability insurance, with a combined single limit of not less than One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) in the aggregate. All policies shall name Seller, Scotts and any other parties Seller identifies in writing to Purchaser as additional insureds, insuring against any injury or damage to persons or property that may result from or be related to such entry and testing, all in such forms as are acceptable to Seller and underwritten by an insurance company reasonably satisfactory to Seller. A certificate or other evidence of such insurance is to be provided to Seller before Purchaser's or any Purchaser's Consultant's first entry onto the Property. Further, Purchaser shall indemnify, defend, and hold harmless Seller and Seller's shareholders, officers, directors, trustees, partners, principals, members, managers, employees, agents, affiliates, representatives, consultants, accountants, contractors, and attorneys or other advisors ("**Seller Indemnitees**"), and any successors or assigns of the foregoing, from and against any and all actual, out-of-pocket losses, costs, damages, liens, claims, liabilities, or expenses (including, without limitation, costs and reasonable attorneys' fees but excluding consequential, punitive and special damages except to the extent actually paid by Seller to a third party), suffered by any Seller Indemnitee arising out of any damages to the Property caused by Purchaser or Purchaser's Consultants or by Purchaser or Purchaser's Consultant's violation of this Agreement, except to the extent such losses, costs, damages, liens, claims, liabilities, or expenses are caused by an existing condition at the Property or are caused by the gross negligence or willful misconduct of any indemnified party. This <u>Section 6(e)</u> shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Purchaser shall promptly repair any damage to the Property resulting from the performance of any inspections by Purchaser or Purchaser's Consultants to substantially the same condition prior to any such damage. Any restoration work remaining to be completed after the termination of this Agreement may, at the option and in the sole discretion of Seller, be completed by Seller after giving Purchaser written notice and a reasonable time to perform the relevant restoration. Purchaser will reimburse Seller for any actual, reasonable, out-of-pocket costs associated with any such restoration after written demand from Seller for such costs, together with supporting invoices. This <u>Section 6(f)</u> shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)All activities performed by Purchaser and Purchaser's Consultants on the Property shall be at Purchaser's sole cost and expense. Purchaser shall not allow such entry or testing to result in liens, judgments, or other encumbrances being recorded against the Property. Nothing contained in this Agreement shall be construed in any way as consenting to allow or authorizing Purchaser to subject the Property or the interest or estate of Seller to any lien or charge in respect of the work contemplated by this Agreement. Purchaser shall immediately discharge of record any such lien, judgment, or other encumbrance at Purchaser's sole cost and expense. This <u>Section 6(g)</u> shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)If the Closing does not take place for any reason whatsoever, Purchaser shall not, directly or indirectly, disclose to any person or party or use in any manner any information of Seller acquired by Purchaser with respect to Seller or the Property, except as may be required by law or to Purchaser's officers, directors, direct and indirect owners, affiliates and advisors. Upon termination of this Agreement for any reason other than Closing, Purchaser shall return to Seller or destroy any and all documents, information and property of Seller in Purchaser's possession

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except for such portions as Purchaser is required to retain by law, regulation or internal compliance policy. In addition, if Purchaser elects not to proceed with the purchase of the Property, then at the request of Seller, Purchaser shall deliver to Seller, without representation or warranty by Purchaser or any right to rely thereon by Seller, copies of any third-party physical or environmental tests and reports of the Property made and conducted by Purchaser or Purchaser's Consultants that are in Purchaser's possession or control that Seller desires to receive provided that Seller shall have reimbursed Purchaser for the cost of any such test or report. This <u>Section [6(h)](#i50a5d48dadb64352bad7988368a8619c_4)</u> shall survive the termination of this Agreement for one (1) year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Prior to the expiration of the Due Diligence Period, Purchaser shall have the right to deliver written notice to Seller indicting which Service Contracts Purchaser does not wish to assume, and Seller, at Seller's sole cost and expense, shall cause any such Service Contracts to be terminated substantially contemporaneously with Closing (and Purchaser shall not be required to assume any of such Service Contracts).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.<u>TENANT ITEMS</u>.** 

Seller and Purchaser shall use commercially reasonable efforts to obtain the Tenant Estoppel. If and to the extent Purchaser's lender requires or requests subordination, nondisturbance and attornment agreements ("SNDA") from Scotts, then Seller shall request that Scotts execute and deliver such SNDA and shall use commercially reasonable efforts (excluding any requirement for Seller to initiate any proceeding of any kind against Scotts) to cause Scotts to execute an SNDA prior to Closing, provided that, the failure to obtain such SNDAs shall not be a condition precedent to Purchaser's Closing obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.<u>OPERATION OF THE PROPERTY</u>.**

From the Effective Date to the Closing Date, Seller shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Continue to maintain and operate the Property in accordance with Seller's past practices and in compliance with the Scotts Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)not enter into any additional Leases or contracts affecting the Property without the prior, written consent of Purchaser, which consent shall be in Purchaser's sole and absolute discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)not take any actions to enforce the rights and remedies of the landlord under the Scotts Lease, by summary proceedings or otherwise without Purchaser's prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed; not amend or modify the Scotts Lease in any way, or waive any of Seller's rights under the Scotts Lease (including material approval rights) without Purchaser's prior written consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Maintain and keep in full force and effect insurance on or for the Property, as applicable, in amounts currently in effect and as required by the Scotts Lease;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Comply with the terms and provisions of the existing Service Contracts affecting the Property in all material respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)take the Property off the market, not market the Property for sale, and not enter into any written agreements for the sale of the Property, including without limitation any term sheets or letters of intent, whether or not legally binding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)From and after the Closing, Seller shall cooperate with Purchaser at no cost to Seller to have the roof warranty described on <u>Schedule 9(a)(xi)</u> assigned to Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)From and after the Closing, Seller shall cooperate with Purchaser at no cost to Seller and the City of Marysville to have the Enterprise Zone Agreement by and between the City of Marysville, a municipal corporation of the State of Ohio, and Seller (the "**Enterprise Zone Agreement**") transferred to Purchaser. Prior to Closing, Seller shall cooperate with the reasonable requests of Purchaser to (i) discuss the transfer of the Enterprise Zone Agreement with any interested parties (with Seller being offered the opportunity to be present for such discussions) and (ii) obtain formal or informal approval of such transfer from any interested parties. Seller shall comply with its obligations under the Enterprise Zone Agreement. The provisions of this <u>Section 8(h)</u> shall survive the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Not without Purchaser's prior written consent, directly or indirectly (i) sell, contribute, assign or create any right, title or interest whatsoever in or to the Property, (ii) cause or permit to be placed of record against the Property any lien or encumbrance (other than the Permitted Exceptions), (iii) file for, pursue, accept or obtain any zoning, land use permit or other development approval or entitlement, or consent to the inclusion of the Property into any special district, (iv) perform any alterations at the Property (except to address imminent life, safety or other emergency items in consultation with Purchaser to the extent practical) or remove any material Personal Property unless replaced with reasonably equivalent items, (v) enter into any new applications for the reduction of the assessed valuation of the Property or any part thereof real estate taxes or a refund for previously paid real estate taxes, or (vi) enter into any agreement to do any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)notify Purchaser promptly upon learning or receiving notice, whichever first occurs, of (i) any written notice of any violation of any Environmental Laws with respect to any Property; (ii) any monetary or material non-monetary default or claim of monetary or material non-monetary default under the Scotts Lease or Prior Lease; (iii) any actions, suits, proceedings or claims filed or threatened in writing with respect to the Seller or the Property; (iv) any inaccuracy of any of Seller's representations, warranties or covenants in this Agreement; and (v) any material damage or destruction (excluding normal wear and tear), or any taking by condemnation or eminent domain (or any threat thereof), of the Property or any part thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)Comply with all Anti-Corruption Laws and the Anti-Money Laundering Laws, and unless disclosure would constitute a breach of any applicable laws, notify Purchaser in writing of any investigation or proceedings relating to any actual or potential violation of or in relation to any Anti-Corruption Laws and provide Purchaser with any correspondence received by Seller with respect thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.<u>REPRESENTATIONS AND WARRANTIES</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Seller represents and warrants to Purchaser as follows as of the Effective Date and as of the Closing Date:

&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)Seller is an Ohio limited liability company duly organized and validly existing under applicable laws, and qualified to do business in the jurisdiction in which the Property is located, and Seller has all necessary power and authority to: (A) carry on the business for which it has been organized; (B) own and operate the Property; and (C) enter into and perform Seller's obligations under 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;(ii)Seller has taken all actions required to be taken under its organizational documents to approve or authorize the execution and delivery of this Agreement and consummation of the transactions contemplated in this Agreement, and this Agreement constitutes a legally binding obligation of Seller, enforceable in accordance with its terms.

&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)Neither the execution of this Agreement nor the consummation of the transactions contemplated in this Agreement will constitute a violation of, be in conflict with, or constitute a default under (or with the passage of time or delivery of notice, or both, would constitute a default under) any term or provision of Seller's organizational documents or any other agreement, lease, or other instrument binding on Seller or the 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;(iv)Except as set forth on <u>Schedule 9(a)(iv)</u>, no litigation, proceeding, or action is pending or threatened in writing against or relating to the Property or Seller, including without limitation, any proceedings for the reduction of real estate taxes.

&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)No condemnation proceeding is pending or to Seller's actual knowledge, threatened in writing against or relating to the 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;(vi)Except as set forth on <u>Schedule 9(a)(vi)</u>, no Service Contracts are in effect relating to the Property. The copies of all Service Contracts delivered by Seller to Purchaser pursuant to this Agreement are true, correct and complete. Neither Seller, nor, to Seller's knowledge, any vendor under any Service Contract is in default thereof.

&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)Except for the Scotts Lease, there are no Leases at the Property. Seller has provided to Purchaser as a part of the Delivery Materials a true, correct and complete copy of the Scotts Lease and that certain Lease Agreement dated as of March 11, 2022 by and between Seller and Scotts (the "**Prior Scotts Lease**"), in each case, together with all modifications thereto. Within five (5) Business Days after the Effective Date, Seller shall have provided to Purchaser a true, accurate and complete copy of the "Annual Reconciliation Statement" for 2024 delivered by Seller to Scotts pursuant to the Prior Lease, which was approved by Scotts, and back-up for all charges passed through to Scotts on or after January 1, 2024. The Scotts Lease is in full force and effect and has not been amended or modified and constitutes the entire agreement between Seller (or its affiliates) and Scotts (or its affiliates) with respect to the Property. Neither Scotts nor any

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affiliate of Scotts has received any consideration from Seller or any affiliate of Seller in respect of Scotts entering into the Scotts Lease, except to the extent all such consideration shall be fully paid by Seller pursuant to a separate agreement between Seller and Scotts. Seller is not in default under the Scotts Lease and, to Seller's knowledge, Scotts is not in default under the Scotts Lease. No rent under the Scotts Lease has been paid more than one month in advance and Scotts is not presently entitled to any offset of rent or other financial obligations under the Lease. There are no brokerage agreements or leasing agreements or commissions or similar payments of any kind to any party with respect to the Scotts Lease that will be binding on Purchaser or the Property after Closing. There are no uncompleted contractual obligations of Seller to Scotts under the Scotts Lease to build out, repair or remodel any portion of the Property. Seller is not holding a security deposit or other credit support relating to the Scotts Lease.

&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)Seller has received no written notice from a public authority that there are contemplated improvements to or adjoining the Real Property by public authority, the cost of which are to be assessed as special taxes against the Real 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;(ix)Seller has received no written notice from any governmental authority that the Property is in violation of any applicable law or regulation that remains uncured.

&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)<u>Schedule 9(a)(xi)</u> constitutes a full list of all guarantees and warranties issued to Seller with respect to the Improvements. Seller has delivered to Purchaser true, correct and complete copies of same.

&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)Seller (i) has provided to Purchaser as a part of the Delivery Materials a true, correct and complete copy of the Enterprise Zone Agreement and all modifications thereto, (ii) to Seller's actual knowledge, has completed, in all material respects, its obligations under the Enterprise Zone Agreement, (iii) has neither received nor given any notice of default under the Enterprise Zone Agreement, and (iv) confirms the Enterprise Zone Agreement is in full force and 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;(xiii)Seller has no employees. The Property is not subject to, any collective bargaining agreement, neutrality, works council, union representation or similar agreement. To Seller's knowledge, there are no labor organizing activities pending or threatened with respect to the 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;(xiv)Seller has not: (i) made a general assignment for the benefit of creditors, (ii) filed any voluntary petition in bankruptcy or suffered the filing of an involuntary petition by its creditors under any federal bankruptcy act or any similar petition, order or

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decree under any federal or state law or statute relative to bankruptcy, insolvency or other relief for debtors; (iii) suffered the appointment of a receiver, trustee, administrator, conservator, liquidator or similar official in any federal, state or foreign judicial or non-judicial proceeding, to hold, administer and/or liquidate all or substantially all of its property; (iv) suffered the attachment or other judicial seizure of substantially all of its assets; (v) admitted its inability to pay its debts as they come due; or (vi) made an offer of settlement, extension or composition to its creditors generally.

&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)The Seller is not an "employee benefit plan" within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, a "plan," within the meaning of Section 4975 of the Internal Revenue Code of 1986, as amended, or an entity deemed to hold "plan assets" within the meaning of 29 CFR Sec. 2510.3-101 of any such employee benefit plan or plans.

&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)There are no rights of first refusal, rights of first offer to purchase all or any part of the Property, options to purchase all or any part of the Property, other rights whereby any individual or entity has the right to purchase all or any part of the 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;(xvii) To Seller's actual knowledge, except for items being prorated at Closing, there are no outstanding accounts payable relating to the Property that are binding on Seller or would be binding on Purchaser or the Property after Closing.

&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)Seller has not: (A) made a general assignment for the benefit of creditors; (B) filed any voluntary petition in bankruptcy or suffered the filing of an involuntary petition by its creditors under any federal bankruptcy act or any similar petition, order or decree under any federal or state law or statute relative to bankruptcy, insolvency or other relief for debtors; (C) suffered the appointment of a receiver, trustee, administrator, conservator, liquidator or similar official in any federal, state or foreign judicial or non-judicial proceeding, to hold, administer and/or liquidate all or substantially all of its property; (D) suffered the attachment or other judicial seizure of substantially all of its assets; (E) admitted its inability to pay its debts as they come due; or (F) made an offer of settlement, extension or composition to its creditors generally.

&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)Seller has delivered or made available to Purchaser true and complete copies of the final construction plans for the Improvements (the "**Plans**") and the Architect's certificate of substantial completion for the Improvements. The Improvements have been constructed in accordance all applicable laws and regulations and (except for di minimis changes) with the Plans, except where any failure to be so constructed could not reasonably be expected to result in aggregate in losses to Purchaser in excess of $100,000. Seller has not given or received any notice of any material defect in respect of the Improvements and, to Seller's knowledge, no material defects presently exist with respect to the Improvements.

&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)Seller has delivered or made available to Purchaser true and complete copies of the Project Documents including all modifications and change orders thereto. Seller has no non-ministerial obligations under any of the Project Documents that remain outstanding.

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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;(xxi)Attached hereto as <u>Schedule 9(a)(xxi)</u> is a true, correct and complete list of all Personal Property. All Personal Property is owned by Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii)To Seller's knowledge, attached hereto as <u>Schedule 9(a)(xxii)</u> is a true, correct and complete list of all licenses and approvals held by Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii)Seller is in compliance with any applicable law, regulation, or rule ("**Anti-Money Laundering Laws**") related to combating money laundering, suspicious transactions, trade embargos, economic sanctions, or terrorist financing, including, but not limited to the requirements of Executive Order No. 13224, 66 Fed. Reg. 49079 (September 23, 2001) ("Order") and other similar requirements contained in the rules and regulations of the Office of Foreign Assets Control, Department of the Treasury ("**OFAC**") and in any enabling legislation or other Executive Orders or regulations in respect thereof (the Order and such other rules, regulations, legislation, or orders are collectively called the "**Orders**"). Neither Seller nor, to Seller's knowledge, any beneficial owner of Seller: (a) is listed on the Specially Designated Nationals and Blocked Persons List maintained by OFAC pursuant to the Order and/or on any other list of terrorists or terrorist organizations maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other applicable Orders (such lists are collectively referred to as the "**Lists**"); (b) is a person who has been determined by competent authority to be subject to the prohibitions contained in the Orders; (c) a person or entity with whom a citizen of the United States is prohibited from engaging in transactions by any trade embargo, economic sanction, or other prohibition of U.S. law, regulation, or executive order; or (d) a person or entity incorporated in any country subject to U.S. country-based economic sanctions whereby conducting transactions with that person or entity would be in violation of any applicable law, rule, or regulation or (e) is owned or controlled by, or acts for or on behalf of, any person on the Lists or any other person who has been determined by competent authority to be subject to the prohibitions contained in the Orders. Seller is compliance with any applicable law, regulation, or rule related to combating corruption or bribery, including, but not limited to, the United States Foreign Corrupt Practices Act of 1977 as amended ("**Anti-Corruption Laws**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv) Seller represents that neither Seller or any of its direct or indirect owners, officers, employees, agents or any other person acting on behalf of Seller has or shall, in connection with the transactions contemplated by this Agreement, make any payment, transfer anything of value, or offer anything of value, directly or indirectly to (i) to any governmental official or employee (including employees of a government corporation or public international organization) or to any political party or candidate for public office; or(ii) to any other person or entity if such payments or transfers would violate the laws of the country in which made, the laws of the United States including the trade sanction and economic embargo programs enforced by OFAC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Purchaser represents and warrants to Seller as follows as of the Effective Date and as of the Closing Date:

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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;(i)Purchaser is a limited liability company, duly organized, validly existing and in good standing under the laws of the State of Delaware, and is or will be qualified to do business in the jurisdiction in which the Property is located, and Purchaser has and will have on the Closing Date all necessary power and authority to: (A) carry on the business for which it has been organized; (B) own and operate the Property; and (C) enter into and perform Purchaser's obligations under 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;(ii)Purchaser has taken all actions required to be taken under the laws of the State of Delaware and under Purchaser's certificate of formation and operating agreement, to approve or authorize the execution and delivery of this Agreement and consummation of the transactions contemplated in 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;(iii)Neither the execution of this Agreement nor the consummation of the transactions contemplated in this Agreement will constitute a violation of, be in conflict with, or constitute a default under (or with the passage of time or delivery of notice, or both, would constitute a default under) any term or provision of Purchaser's articles of organization and operating agreement, or any other agreement or other instrument to which Purchaser is bound.

&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)Purchaser has not: (A) made a general assignment for the benefit of creditors; (B) filed any voluntary petition in bankruptcy or suffered the filing of an involuntary petition by its creditors under any federal bankruptcy act or any similar petition, order or decree under any federal or state law or statute relative to bankruptcy, insolvency or other relief for debtors; (C) suffered the appointment of a receiver, trustee, administrator, conservator, liquidator or similar official in any federal, state or foreign judicial or non-judicial proceeding, to hold, administer and/or liquidate all or substantially all of its property; (D) suffered the attachment or other judicial seizure of substantially all of its assets; (E) admitted its inability to pay its debts as they come due; or (F) made an offer of settlement, extension or composition to its creditors generally.

&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)Purchaser is in compliance with any applicable Anti-Money Laundering Laws related to combating money laundering, suspicious transactions, trade embargos, economic sanctions, or terrorist financing, including, but not limited to the requirements of the Order and other similar requirements contained in the rules and regulations of the Orders. Neither Purchaser nor, to Purchaser's knowledge, any beneficial owner of Purchaser: (a) is listed on the Lists; (b) is a person who has been determined by competent authority to be subject to the prohibitions contained in the Orders; (c) a person or entity with whom a citizen of the United States is prohibited from engaging in transactions by any trade embargo, economic sanction, or other prohibition of U.S. law, regulation, or executive order; or (d) a person or entity incorporated in any country subject to U.S. country-based economic sanctions whereby conducting transactions with that person or entity would be in violation of any applicable law, rule, or regulation or (e) is owned or controlled by, or acts for or on behalf of, any person on the Lists or any other person who has been determined by competent authority to be subject to the prohibitions contained in the Orders. Purchaser is compliance with any applicable Anti-Corruption Laws.

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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)"Seller's actual knowledge" as used in this Agreement shall mean the current actual knowledge of [\*\*\*] and/or [\*\*\*] (the "**Seller Knowledge Individuals**"), without any duty of inquiry or investigation and without personal liability. Seller represents and warrants that the Seller Knowledge Individuals are the persons with primary asset management responsibilities for the Property. The representations and warranties set forth in this <u>Article 9</u> shall survive for a period of nine (9) months after the consummation of the transactions contemplated by this Agreement and the recording of the Deed (as hereinafter defined) (the "**Survival Period**"). Purchaser may bring an action against Seller on the breach of any representation or warranty of Seller, but only if (i) Purchaser first learns of the breach after Closing and notifies Seller in writing of any claim within the Survival Period (and files any resulting action within thirty days after the expiration of the Survival Period) and (ii) the damage to Purchaser on account of the breach (individually or when combined with damages from other breaches) equals or exceeds One Hundred Thousand and 00/100 Dollars ($100,000.00), in which case Seller shall be required to pay all such damages from the first dollar. Furthermore, Purchaser agrees that Seller's liability, based on any breach of Seller's representations or warranties contained in this Agreement or in any other document delivered by Seller at Closing, at law or in equity shall not exceed, in the aggregate, Two Million Five Hundred Thousand and 00/100 Dollars ($2,500,000.00).

&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)If, prior to Closing, Purchaser obtains knowledge that any representation or warranty of Seller in this Agreement is false in any material respect, Purchaser shall promptly notify Seller of such falsity. Upon receiving such notification, Seller shall have the right take such action as shall be necessary to render correct the representation or warranty that was false (a "**Cure Attempt**"). If Seller fails to notify Purchaser within ten (10) days after receiving Purchaser's notice (or the scheduled Closing Date, if earlier) that Seller intends to make a Cure Attempt, then Purchaser's sole remedy, assuming that Purchaser was correct in stating that Seller's representation or warranty was materially false, shall be to terminate this Agreement by notice to Seller given within three (3) days after the expiration of the ten (10) day period (or the scheduled Closing Date, if earlier), in which case Purchaser shall be entitled to the return of the Deposit, and no Party shall have any further rights or obligations under this Agreement other than those that expressly survive Closing. If Seller does not notify Purchaser that Seller intends to make a Cure Attempt and Purchaser does not elect to termination this Agreement within the time frame provided, then Purchaser shall be deemed to have waived any right to terminate this Agreement or to recover from Seller on account of such falsity specified in Purchaser's notice. If Purchaser obtains knowledge prior to the Closing that any representation or warranty of Seller is false in any material respect but does not notify Seller prior to Closing, then Purchaser will be deemed to have forever waived any right to recover from Seller on account of such falsity. Purchaser's knowledge, as used in this Agreement, shall mean current actual knowledge of Samantha DiSciullo.

&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)To the extent the facts and circumstances underlying any representation or warranty of Seller in this Agreement change following the Effective Date and prior to the Closing Date through no fault of Seller, Seller shall have the right to update its representations and warranties as of the Closing Date by delivering written notice of such update to Purchaser. Upon receiving such notification, Purchaser's sole remedy shall be to terminate this Agreement by notice to Seller given within three (3) days after Purchaser's receipt of the foregoing notice, in which case Purchaser shall be entitled to the return of the Deposit, and no Party shall have any

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further rights or obligations under this Agreement other than those that expressly survive Closing; otherwise, Purchaser shall be deemed to have waived any right to terminate this Agreement or to recover from Seller on account of such changed facts and circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.<u>CONDITIONS PRECEDENT TO CLOSING</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Purchaser's obligations under this Agreement are expressly conditioned upon completion or satisfaction of the following matters on or prior to the Closing Date, as hereinafter defined:

&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)The Title Company shall, at Closing, be ready, willing and able to issue to Purchaser the Owner's Policy;

&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)Seller shall have deposited with the Escrow Agent all documents required of Seller to be delivered into Escrow in <u>Section 14</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;(iii)Subject to <u>Sections 9(d)</u> and <u>9(e)</u>, the representations and warranties of Seller contained in <u>Section 9(a)</u> of this Agreement shall be true and correct as of the Closing Date;

&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)Seller shall have delivered to Purchaser, not later than five (5) days prior to the Closing Date, an original estoppel certificate executed by Scotts, in the form attached hereto as <u>Exhibit A</u> (the "**Tenant Estoppel**") without material deletions that is (A) dated no more than thirty (30) days prior to the Closing Date, (B) does disclose any default or event or circumstance that with notice or passage of time would constitute a default, and (C) does not disclose any inconsistency with the representations of Seller hereunder or the financial terms of the Lease, or which is otherwise reasonably acceptable to Purchaser. Seller agrees to deliver to Purchaser copies of any comments to any proposed Tenant Estoppel and each executed Tenant Estoppel within two (2) Business Days of Sellers' receipt thereof. Seller and Purchaser shall cooperate to update the Tenant Estoppel to accommodate any reasonable modifications to the Tenant Estoppel requested by Purchaser's lender.

&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)Seller shall have received an executed copy of the Commencement Date Memorandum (as defined in the Scotts Lease) in the form previously agreed by Purchaser;

&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)Purchaser shall have received evidence reasonably satisfactory to Purchaser that the Assignment of Project Documents and Assignment of Contracts will effectively transfer the Warranties and the rights, but no material outstanding obligations, of Seller under the Project Documents to Purchaser, which may include consents of Seller's counterparties if reasonably required by Purchaser;

&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)Seller shall have complied with all of its material covenants and obligations contained herein; and

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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;(viii)There shall be no injunction or other legal process enjoining the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Seller's obligations to perform hereunder are expressly contingent and conditional upon the satisfaction of the following:

&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)Purchaser shall have deposited or have caused to be deposited with the Escrow Agent all documents and funds required of Purchaser to be deposited into Escrow under <u>Section 14</u>; 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;(ii)The representations and warranties of Purchaser contained in <u>Subsection 9(b)</u> of this Agreement shall be true and correct as of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Parties acknowledge that the conditions precedent set forth in subsection [(a)](#i50a5d48dadb64352bad7988368a8619c_4) above are for the benefit of Purchaser and that the conditions precedent set forth in subsection [(b)](#i50a5d48dadb64352bad7988368a8619c_4) above are for the benefit of Seller. Unless otherwise specifically set forth herein, the date by which the conditions precedent must be satisfied shall be the Closing Date. If any of the conditions precedent set forth in subsection (a) or subsection [(b)](#i50a5d48dadb64352bad7988368a8619c_4) above are not satisfied on the Closing Date, the party for whose benefit the condition precedent exists shall have the right to terminate this Agreement by written notice of termination given to the other party at or prior to Closing. If such notice of termination is given, Escrow Agent shall return all documents and funds previously deposited into escrow to the party so depositing same, except the Independent Consideration and the Deposit if paid to Seller pursuant to <u>Section 6(b)</u>, and neither party shall have any further liability to the other hereunder, except as otherwise provided herein. Notwithstanding the foregoing, a party for whose benefit the condition precedent exists shall have the right to waive satisfaction thereof, in which event this Agreement shall proceed to Closing as otherwise provided herein. If the Closing occurs, then all conditions precedent shall be deemed satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.<u>RISK OF LOSS</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)If any part of the Property is damaged or destroyed by fire or any other cause ("**Damage**") or subject to a pending, threatened, or completed taking by condemnation or eminent domain, or a proposed conveyance under threat of either ("**Taking**"), Seller shall promptly notify Purchaser of the same (and immediately upon Seller's knowledge of the same if within three Business Days of the scheduled Closing Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If the extent of the Damage is in excess of One Million and 00/100 Dollars ($1,000,000.00) as reasonably determined by the insurance adjuster (or Purchaser if a determination from the insurance adjuster is not available prior to the scheduled Closing Date), or if the Taking materially, adversely affects the operation of the Property as it existed prior to the Taking or materially, adversely impacts Purchaser's intended use of the Property or the value of the Property as determined by Purchaser in its reasonable discretion, which shall include (i) giving the tenant under the Scotts Lease the right to terminate the Scotts Lease or abate rent thereunder and (ii) causing the Property to cease to comply with zoning laws, then Purchaser may terminate this Agreement by giving written notice of such termination within ten (10) days after Seller's notice of such Damage or Taking (or the scheduled Closing Date, if earlier), as the

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case may be. If Purchaser elects to terminate this Agreement, Escrow Agent shall return all documents and funds, except the Independent Consideration, previously deposited into escrow to the party so depositing same, and neither party shall have any further liability to the other hereunder, except as otherwise provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)If this Agreement is not terminated pursuant to <u>Section 11[(b)](#i50a5d48dadb64352bad7988368a8619c_4)</u> above, (i) Seller shall assign to Purchaser Seller's rights to the proceeds of any compensation or insurance payable and Purchaser shall remain obligated to perform under this Agreement and take all commercially reasonable efforts to ensure that Purchaser receives the benefits of the same, (ii) in the case of Damage, the Purchase Price shall be reduced by the lesser of the cost of repair or the amount of the deductible for Seller's applicable insurance, (iii) Seller shall not settle or adjust any claim without Purchaser's prior written consent, such consent shall not be unreasonably withheld. Seller's obligations hereunder shall survive Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.<u>CLOSING</u>.**

The term "**Closing**" as used in this Agreement shall mean the consummation of the transactions contemplated under this Agreement, which shall occur on a date that is mutually agreed upon by Purchaser and Seller, which shall be no later than twenty (20) calendar days after expiration of the Due Diligence Period (the "**Closing Date**"). On the Closing Date, Escrow Agent shall file for record the Deed and such other instruments as Purchaser may require to be recorded or as may be necessary to allow the Title Company to issue the Owner's Policy. Seller shall deliver possession of the Property on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.<u>PRORATIONS AND CHARGES</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;At Closing, Purchaser and Seller shall prorate, as of the Closing Date, those items of income and expense that customarily prorated in connection with purchases of real property. The items to be prorated shall include, but not be limited to, the following: (i) real estate taxes and assessments (in accordance with <u>Section 13(b)</u> hereof); (ii) amounts payable under any Service Contracts being assumed by Purchaser (with Seller being responsible for all costs of any other Service Contracts), (iii) any other operating expenses (to the extent not paid by Scotts pursuant to the Scotts Lease) and (iv) any prepaid rents and other charges under any Leases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)All real estate taxes and assessments, both general and special, with respect to the Property that are a lien but not yet due and payable (collectively, "**Taxes**") shall be prorated as of 11:59 p.m. on the day prior to Closing Date, with Seller being responsible for (and Purchaser receiving a credit at Closing for) the expense of all Taxes attributable to periods prior to the Closing Date, and Purchaser being responsible for the expense of all Taxes attributable to the Closing Date and thereafter. For example, if Closing occurs in September 2025, Purchaser shall receive a credit on the settlement statement at Closing for the 2025 Taxes (due in 2026) up to and including the day prior to the Closing Date (i.e., Purchaser shall receive a Tax proration credit at Closing for the period commencing on January 1, 2025 up to and including the day prior to the Closing Date). The proration of Taxes shall be based on the most recent County Treasurer's tax duplicate. All delinquent real estate taxes, delinquent assessments, reassessed assessments and/or respread taxes, and all interest and penalties relating thereto shall be paid in full by Seller at or before Closing. If the Closing shall occur before the real estate taxes or assessments for the tax

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year in which the Closing occurs are fixed, then the proration of such taxes and assessments shall be upon the basis of the tax rate for the Property then in effect applied to the latest assessed valuation, subject to further and final adjustment when the tax rate and property value is fixed for the tax year in which the Closing takes place. By way of example, if Closing occurs in September 2025, then real estate taxes and assessments for tax year 2025 won't be known until December 2025. Therefore, if Closing occurs in September 2025, then the proration of Taxes at Closing shall be based on the tax rate and valuation for 2024, subject to final adjustment when the actual amounts are known and subject to adjustments for any recaptured or recouped taxes. If on the Closing Date, the Property or any part thereof shall be affected by an assessment or assessments which are or may become payable in installments or a lump sum, then Seller shall be responsible for any installments which are liens or which are otherwise certified as of the Closing and Purchaser shall be responsible for all subsequent installments of any such assessment. As soon as (i) the actual tax rates and valuations for the tax year in which the Closing occurs become known and the tax bills for the Property for such tax year are issued, and (ii) a final non-appealable decision has been issued in connection with any Union County, Ohio Board of Revision Case pertaining to the Property for the tax year in which Closing occurs (a "**BOR Decisions**"), Purchaser and Seller shall reprorate Taxes using the actual amount of Taxes shown on such tax bills (and taking into consideration the results of any BOR Decision) and make the necessary adjustments between themselves (the "**Reproration**"). Any amount due to either Purchaser or Seller, as the case may be, as a result of the Reproration shall be paid by the party owing such amount within thirty (30) days after the Reproration. Any errors, omissions or estimations in computing adjustments at the Closing or at the Reproration shall be corrected as soon as practicable thereafter. The provisions of this <u>Section 13(b)</u> shall survive the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Scotts Leases and Prior Scotts Leases contain tenant obligations to pay for taxes, common area expenses, operating expenses and/or additional charges of any other nature relating to the Property and/or certain portions thereof (collectively, "**Charges**"). Seller hereby acknowledges and agrees that all Charges which Seller has heretofore collected from Scotts at the Property for the calendar year 2024 have been fully and finally reconciled. Seller covenants that, at Closing, Seller and Scotts will have fully reconciled all Charges through the Closing Date ("**Pre-Closing Charges**") or will have agreed to separately reconcile the Pre-Closing Charges, such that neither Scotts nor Purchaser shall have any obligations to each other in respect of the Pre-Closing Charges. As between Seller and Purchaser, Seller shall remain responsible for any claim that Scotts makes in respect of Pre-Closing Charges. The provisions of this <u>Section 13(c)</u> shall survive Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Excluding the proration of Taxes, which is handled in accordance with <u>Section 13(b)</u> above, in the event any prorations made pursuant hereto shall prove incorrect for any reason whatsoever, or in the event any prorations are estimated on the most currently available (rather than based on the actual final) bills, either party shall be entitled to an adjustment to correct the same provided that it makes written demand on the other prior to twelve (12) months after the Closing Date. The provisions of this <u>Section 13(d)</u> shall survive Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Seller represents, warrants and covenants to Purchaser that all state and local transaction, sales, excise, use or similar taxes relating to the development, sale or rental of the Property prior to the Closing Date, if any, have been or timely will be paid. Seller will

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additionally pay any such taxes that may arise or be assessed against Seller as a result of the sale of the Property to the appropriate taxing authorities as and when due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)At Closing, Seller shall be charged the following:

&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)prorated general real estate taxes and assessments;

&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)charges for Service Contracts and any other obligations assumed by Purchaser for which payments are made in arrears;

&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)prorated prepaid rents and other charges prepaid under the Scotts Lease;

&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 premium for the Owner's Policy and the cost of any endorsement to the Owner's Policy to insure over any title defect;

&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)cost of any real estate transfer tax and conveyance fees;

&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)one-half (1/2) of the escrow 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;(vii)Seller's attorneys' fees;

&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)all broker commissions, if any;

&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)all unpaid leasing commissions related to the Scotts Lease, if any;

&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 costs of any uncompleted punch list items which are Seller's responsibility under the Scotts Lease, if any;

&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)all unpaid tenant improvement allowance as provided in the Scotts Lease, if any;

&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)the costs of any post-closing obligations of Seller that can be definitively determined at Closing; 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;(xiii)costs of discharging and releasing all Must-Cure Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)At Closing, Purchaser shall be charged the following:

&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)charges paid in advance by Seller for items assumed by Purchaser, if any;

&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)the cost of any endorsement to the Owner's Policy requested by either Purchaser or Purchaser's lender;

&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)one-half (1/2) of the escrow 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;(iv)cost of Title Company to close this contemplated transaction and recording the Deed and such other instruments as Purchaser or the Title

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Company may consider necessary or desirable to be recorded (other than transfer taxes); 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)Purchaser's attorneys' fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.<u>INSTRUMENTS OF CONVEYANCE AND OTHER DOCUMENTS</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)On or prior to the Closing Date, Seller shall fully and properly execute and deposit with Escrow Agent the following documents:

&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)a limited warranty deed in a form reasonably approved by Purchaser (the "**Deed**") conveying to Purchaser title to the Real Property, free and clear of all liens and encumbrances, except for the Permitted Exceptions;

&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)an assignment of leases and rents in a form reasonably approved by Purchaser assigning all of Seller's interest in the Scotts Lease to Purchaser (the "**Assignment of Leases**");

&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)a bill of sale and general assignment of Personal Property in a form reasonably approved by Purchaser (the "**Bill of Sale**");

&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)an assignment of Intangibles and Service Contracts in a form reasonably approved by Purchaser (the "**Assignment of Contracts**");

&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)an assignment of the rights of Seller under the Project Documents in a form reasonably approved by Purchaser (the "**Assignment of Project Documents**");

&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)a guaranty of Seller's post-closing obligations under this Agreement (subject to the limitations in this Agreement) executed by Brent Crawford and Bob Hoying in a form proposed by Purchaser and reasonably approved by Seller;

&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)a counterpart settlement statement (the "**Settlement Statement**") setting forth the Purchase Price and all amounts charged against Seller pursuant to <u>Section 13</u> 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;(viii)the Tenant Estoppel;

&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)a certificate whereby Seller will update and remake the representations (and related schedules) made in <u>Section 9.1(a)</u> above as of the Closing Date as the facts then exist, with all dates brought current. At least three (3) Business Days prior to the scheduled Closing Date, Seller shall deliver to the Purchaser a draft of the proposed update certificate.

&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)a notice to tenant of Scotts Lease ("**Sale Notice**") and any vendors under any assumed Service Contracts to the extent requested by Purchaser;

&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)an affidavit regarding the non-foreign status of Seller;

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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;(xii)a resolution of Seller authorizing the transactions contemplated hereby ("**Seller's Resolution**"); 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;(xiii)such other or further customary instruments of conveyance, sale, assignment, certification, and transfer, and shall take or cause to be taken such other or further necessary actions as Purchaser or Escrow Agent may reasonably request (including the delivery of a customary "gap" indemnity and owner's affidavit) to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)vest, confirm, or evidence in Purchaser title to all of the Property intended to be conveyed, sold, transferred, assigned, and delivered to Purchaser under this Agreement subject only to the Permitted Exceptions; 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;(B)effectuate, in any other manner, the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)On or prior to the Closing Date, Purchaser shall fully execute and deposit with Escrow Agent the following documents and funds:

&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)the remainder of the Purchase Price, subject to the closing adjustments contemplated hereby;

&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)counterparts to the Assignment of Leases, Bill of Sale, Assignment of Contracts, and Sale Notice;

&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)a certified resolution of Purchaser authorizing the transactions contemplated hereby (the "**Purchaser's Resolution**");

&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)a counterpart Settlement Statement setting forth the Purchase Price and all amounts applied on behalf of or charged against Purchaser pursuant to <u>Section 13</u> 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;(v)Real Property Conveyance Fee Statement of Value and Receipt (DTE-100); 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;(vi)such other or further customary instruments of conveyance, sale, assignment, certification, and transfer, and shall take or cause to be taken such other or further necessary actions Escrow Agent may reasonably request to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)vest, confirm, or evidence in Purchaser title to all of the Property intended to be conveyed, sold, transferred, assigned, and delivered to Purchaser under this Agreement; 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;(B)effectuate, in any other manner, the terms and conditions of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)On the Closing Date, to the extent of Seller's possession or control, Seller shall deliver or make available to Purchaser at the Property the Personal Property, including any and all keys, pass cards, remote controls, security codes, computer software and other devices relating to access to the Improvements and all lease files and all as-built Plans

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.<u>DELIVERY AND PAYMENT</u>.**

Upon consummation of the transactions contemplated in this Agreement, Escrow Agent shall disburse funds and documents as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)To Seller:

&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)a copy of the Settlement Statement;

&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)the Purchase Price, less amounts charged to Seller and less amounts to be remitted pursuant to clause (iv) below;

&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)executed copy of each of the Assignment of Leases, Bill of Sale, Assignment of Contracts and Assignment of Project Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)To Purchaser:

&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)a copy of the Settlement Statement;

&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)the recorded Deed;

&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)executed copy of each of the Assignment of Leases, Bill of Sale, Assignment of Contracts and Assignment of Project Documents;

&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)executed originals of all affidavits and other instruments deposited into escrow pending Closing;

&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)the Owner's Policy; 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;(vi)the balance, if any, in the escrow account to the credit of Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.<u>BREACH AND REMEDIES</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Seller Default</u>. If Seller defaults in the performance of any of its covenants under this Agreement and fails to cure such default within ten (10) days after notice thereof from Purchaser to Seller (a "**Seller Default**"), then Purchaser may elect to: (a) terminate this Agreement, in which case the Deposit shall be paid to Purchaser and, in which case, Seller shall reimburse Purchaser for Purchaser's actual, documented third-party expenses incurred in connection with the pursuit and diligence of the Property, provided however such reimbursement shall not exceed Two Hundred Fifty Thousand Dollars ($250,000), or (b) Purchaser may bring an

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action for specific performance against Seller. Purchaser waives any right it may have to bring an action against Seller, as well as any other actions for legal or equitable remedies with respect to any such default, its remedies being limited to this <u>Section 16(a)</u> except to the extent specific performance is not available due to a willful default by Seller, in which case Purchaser shall have available all remedies at law and/or at equity. Purchaser waives the right to file a lis pendens, or take any other action that would adversely affect Seller's ability to convey title to the Property free and clear of any claim of Purchaser, unless, and only if, Purchaser commences any action for specific performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Purchaser Default</u>. If Purchaser defaults by failing to close on the purchase of the Property under circumstances where Seller is not in default under this Agreement and would be ready, willing, and able to close as of the Closing Date, but for Purchaser's default, and Purchaser fails to cure such default within ten (10) days after written notice thereof from Seller to Purchaser, then Seller may terminate this Agreement, in which case the Deposit shall be paid to Seller as liquidated damages for such default, it being agreed that this shall be the sole and exclusive remedy of Seller for any such default (any right of Seller to any other legal or equitable remedy being expressly waived with respect to any such default).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)It is agreed that only Seller's interest in the Property or proceeds therefrom (including rents and insurance proceeds received by Seller in connection with the Property) shall be subject to execution, attachment or any other claim or proceeding on account of any obligation of Seller hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Except as otherwise expressly stated in this Agreement, it is specifically agreed and understood that neither party will be responsible to the other for any indirect, special, incidental or consequential loss or damage whatsoever (including lost profits and opportunity costs) arising out of this Agreement or anything done in connection herewith, in contract or in tort (including negligence), under any warranty, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.<u>NO OUTSIDE REPRESENTATIONS</u>.**

This Agreement, including the Schedules attached hereto and incorporated herein, contains all of the terms and conditions agreed upon, it being understood that there are no outside representations or oral agreements. Any modification of this Agreement shall be in writing and shall be signed by both Seller and Purchaser. Purchaser acknowledges that, except as expressly contained in this Agreement or in any document delivered on the Closing Date, (a) neither Seller nor anyone acting for or on behalf of Seller has made any representation, statement, warranty, or promise to Purchaser concerning the physical aspects and condition of the Property, any dimensions or specifications of any of the Property, the feasibility, desirability, or convertibility of the Property into any particular use, or the projected income or expenses for the Property; (b) in entering into this Agreement, Purchaser has not relied on any representation, statement, or warranty of Seller (except those contained in <u>Subsection 9(a)</u> of this Agreement) or, except as expressly set forth herein, on the documentation provided by Seller to Purchaser under this Agreement, all of which are to be independently verified by Purchaser; (c) Purchaser is purchasing the Property based solely upon Purchaser's own inspection and examination thereof; (d) that Purchaser is purchasing the Property in its then "AS IS" physical condition and its then "AS IS" state of repair without any representation, statement,

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or warranty of Seller (except those contained in <u>Subsection 9(a)</u> of this Agreement or in any document delivered at Closing); (e) that Seller has made no representation to Purchaser that the Property may be suitable for any activities and uses that Purchaser may elect to conduct thereon; and (f) Purchaser does hereby waive, and Seller does hereby disclaim, all warranties of any type or kind whatsoever with respect to the Property, including, by way of description, but not limitation, those of fitness for a particular purpose, merchantability, tenantability, habitability, and use. The provisions of this <u>Section 17</u> shall survive Closing and delivery of the Deed, and shall not be merged thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.<u>NOTICES</u>.**

All notices required to be given or delivered under this Agreement shall be in writing and shall be deemed validly given: (a) immediately upon hand delivery; (b) one (1) day following deposit with a courier or express service guaranteeing overnight delivery; (c) five (5) postal delivery days after deposit in the U.S. mails by certified mail, return receipt requested or (d) if given by electronic mail, upon transmission, provided that if such transmission is sent after 5:00 pm New York time on a Business Day, or on a day that is not a Business Day, then such notice shall be deemed given on the following Business Day, addressed as follows:

<u>If to Seller</u>:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sierra Marysville Storage**,** LLC

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c/o Crawford Hoying, Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attn: Brent Crawford,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6640 Riverside Drive, Suite 500

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dublin, Ohio 43017&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;bcrawford@crawfordhoying.com

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

<u>With a copy to</u>:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Crawford Hoying, Ltd.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attn: Jeff Roberts, Esq.,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6640 Riverside Drive, Suite 500

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dublin, Ohio 43017&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;jroberts@crawfordhoying.com

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

<u>If to Purchaser</u>:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marysville Owner LLC

9 West 57th Street, 40th Floor

New York, NY 10019

Attention: Steven Orbuch

Email: srenotices@sculptor.com

<u>With a copy to</u>:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marysville Owner LLC

9 West 57th Street, 40th Floor

New York, NY 10019

Attention: Real Estate Asset Management

Email: sreassetmgmt@sculptor.com

<u>And to</u>:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bryan Cave Leighton Paisner LLP

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1290 Avenue of the Americas

New York, New York 10104

Attention: Ron Emanuel, Esq.

Email: ronald.emanuel@bclplaw.com

or to such other person or address as Seller or Purchaser shall have given by notice as herein provided. Attorneys may send notices on behalf of their clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.<u>BROKER'S COMMISSION; OTHER FEES</u>.**

Except for CBRE, Seller and Purchaser each represent and warrant to the other that the warranting party has had no dealing with any other dealer, real estate agent, or broker so as to entitle such other dealer, agent, or broker to receive any commission or fee in connection with sale of the Property to Purchaser. Seller shall be responsible for they payment of any fees to CBRE in respect of the transfer of the Property. If for any reason any such commission or fee shall become due, the party dealing with such dealer, agent, or broker shall pay any such commission or fee and shall indemnify, defend, and save the other party harmless from and against any and all claims for any such commission or fee and from any attorneys' fees and litigation or other expenses relating to any such claim. This <u>Section 19</u> shall survive termination or Closing. Principals of Seller are licensed brokers in the State of Ohio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.<u>BINDING EFFECT</u>.**

This Agreement shall benefit and bind the Parties and the heirs, legal representatives, successors, and assigns of each of them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21.<u>ASSIGNMENT</u>.**

Purchaser may assign its interests and obligations under this Agreement to an entity affiliated with Purchaser, with Purchaser remaining liable for obligations set forth herein at any time up to and including the Closing Date without Seller's consent, provided that: (a) Seller shall incur no additional expense on account of such assignment; and (b) Purchaser shall disclose the identity of such assignee to Seller and supply to Seller all information of such assignee as may be reasonably requested by Seller not later than five (5) days prior the Closing Date. Notwithstanding anything in the Agreement to the contrary, Seller agrees that Seller may not permit any transfer that would result in any person not identified on the Structure Chart (x) owning more than ten (10%) of the direct or indirect ownership interests in Seller or (Y) controlling Seller, unless (i) Seller shall first notify Purchaser and provide any information regarding such person that the Purchaser may reasonably request in order to perform customary background checks, and (ii) such person passes a customary background check performed by Purchaser or its indirect owners. Seller represents that the structure chart (the "**Structure Chart**") delivered by Seller to Purchaser prior to the Effective Date is a true and complete structure chart of Seller as of the Effective Date and sets forth each individual or entity that owns ten percent (10%) or more of the direct or indirect ownership interests in Seller and/or controls Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.<u>SECTION HEADINGS</u>.**

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All section headings and other titles and captions used in this Agreement are for convenience only, do not form a substantive part of this Agreement, and shall not restrict or enlarge any substantive provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23.<u>PRONOUNS</u>.**

All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular, or plural, as the context and the identity of the person or persons may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.<u>AGREEMENT IN COUNTERPARTS; ELECTRONIC SIGNATURES</u>.**

This Agreement may be executed in counterparts and all such counterparts shall constitute one agreement binding on all the Parties, notwithstanding that all the Parties are not signatories to the same counterpart. Documents executed and/or delivered by the Parties but delivered by "pdf" or other electronic means will be accepted with the same effect as original ink-signed "hard copy" versions of such documents; provided, however, this provision shall not apply to the conveyance documents, original ink-signed hard copies of which shall be delivered by the Parties to Escrow Agent at Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.<u>GOVERNING LAW</u>.**

This Agreement shall be governed by and construed in accordance with the laws of the State of Ohio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26.<u>FAILURE TO ENFORCE NOT A WAIVER</u>.**

Except as may be expressly provided in this Agreement, failure by Seller or Purchaser to enforce any right hereunder shall not constitute a waiver thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27.<u>SEVERABILITY</u>.**

If any provision in this Agreement, or its application to any person or circumstance, is held to be invalid or unenforceable to any extent, that holding shall not affect the remainder of this Agreement or the application of that provision to persons or circumstances other than that to which it was held invalid or unenforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**28.<u>CONFIDENTIALITY</u>**

Except as specifically permitted by this Section, neither party shall disclose any Confidential Information unless prior consent to such disclosure is first obtained from the other party, which consent may be withheld, conditioned or delayed in either party's sole discretion. Either party may disclose Confidential Information (i) to its Representatives, (ii) as reasonably necessary to consummate this Agreement or any financing relating thereto or in connection with the exercise of any remedy hereunder or under any other related instrument and (iii) that is required to be disclosed by law, rule, regulation, court order, or any governmental, judicial or

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regulatory process or any obligations under any securities laws (including in satisfaction of any audits, accreditation requirements, orders, or other contractual arrangement with regulatory agencies or any governmental or quasi-governmental authorities) and Seller specifically agrees that Purchaser may attach a copy of this Agreement to a Form 8-K, Form 10-Q, Form 10-K or other filing with the U.S. Securities and Exchange Commission or otherwise disclose the contents of this Agreement to the extent determined necessary or advisable by Purchaser in order to comply with any obligations under any securities laws.

"**Confidential Information**" means (a) the terms and conditions contained in this Agreement and the identities of the parties to this Agreement or their affiliates and (b) the names "Sculptor," "Sculptor Management," "Sculptor Real Estate," or any derivation thereof. No party shall be restricted from disclosing Confidential Information (i) that is or becomes publicly available to such party other than as a result of a disclosure by such party or its Representatives in violation of the Agreement, (ii) is or becomes available to such party from another source which is not known by such party to be prohibited from disclosing such information to the disclosing party by a legal, contractual or fiduciary obligation, (iii) is independently developed by or for such party or its Representatives without reference to the Confidential Information or (iv) was in the possession of such party or its Representatives prior to disclosure hereunder.

"**Representatives**" means a party's affiliates and its and their members, partners, directors, officers, employees, professional advisors (including, without limitation, attorneys, accountants and consultants), existing investors, potential debt and equity sources, together with its and their respective agents and representative

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.<u>SEC S-X 3-14 AUDIT</u>.**

Seller acknowledges that under either Rule 3-14 or Rule 3-05 of Regulation S-X, Purchaser may be required to provide certain information in connection with reports to be filed with the U.S. Securities and Exchange Commission. If Purchaser in its sole but good faith discretion determines that any of the following is reasonably required in order to enable Purchaser to comply with any reporting requirements applicable to Purchaser, then, upon Purchaser's request and all at Purchaser's sole cost and expense, Seller agrees to (i) provide Purchaser and its representatives with any currently existing information or documentation requested by Purchaser and in Seller's possession or reasonable control, including Seller's most current financial statements (including income statements and balance sheets) relating to the financials of the Property and Seller for the last two fiscal years, together with any back-up or other support for particular items of income or expense (including, if applicable, trial balances, general ledger detail, accounts receivable analysis, budget to actual analysis and copies of bills and invoices), and (ii) to the extent any information or documentation required by Purchaser is not currently existing and in Seller's reasonable possession or control, cooperate with Purchaser (or Purchaser's agents) to permit Purchaser (or Purchaser's agents) to produce or recreate any such information or documentation. Within five (5) business days following a written request from Purchaser, Seller shall provide a letter to Purchaser's auditors in a form reasonably acceptable to Purchaser and Seller stating that the provided financial statements were prepared consistent with the Seller's customary practices used in owning and operating the Property and Seller has no actual knowledge of fraud affecting such statements, but is otherwise without representation, recourse or warranty. Seller's provision of any information or documentation

29

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pursuant to this paragraph will be without any warranty to Purchaser. This paragraph shall survive Closing for one (1) year. The term "Purchaser" as used in this paragraph includes any direct or indirect owners of Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**30.<u>TIME OF ESSENCE</u>.**

Time is of the essence in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**31.<u>ATTORNEYS' FEES</u>.**

In the event that any Party to this Agreement shall bring legal action for the breach of or to enforce this Agreement, in addition to any other award of the court or arbitrator, the substantially prevailing Party shall be entitled to recover its reasonable attorney's fees, expenses and court costs, including those relating to any appeal. This Section 30 shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**32.<u>WAIVER OF JURY TRIAL</u>.**

Each Party to this Agreement, knowingly and voluntarily, and for the Parties' mutual benefit, waives any right to trial by jury in the event of litigation regarding the performance or enforcement of, or in any way related to, this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**33.<u>ESCROW PROVISIONS</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Escrow Agent is hereby appointed and designated to act as Escrow Agent hereunder and is instructed to hold and deliver, pursuant to the terms of this Agreement, the documents and funds to be deposited into escrow as herein provided. Escrow Agent shall hold the Deposit in escrow in an FDIC insured interest bearing bank account until the earlier to occur of (i) the Closing Date, at which time the Deposit Amount for the Property that is Closing shall be applied against the Purchase Price payable at such Closing, or (ii) the date on which Escrow Agent is authorized to disburse the Deposit as set forth in this Section 33. The tax identification numbers of the parties shall be furnished to Escrow Agent upon request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If the Closing has not yet occurred, and either party makes a written demand upon Escrow Agent for payment of the Deposit, Escrow Agent shall give written notice to the other party of such demand. If Purchaser requests the return of the Deposit and has not yet delivered a Notice to Proceed, then Escrow Agent shall immediately return the Deposit to Purchaser and this Agreement will be deemed terminated by Purchaser pursuant to <u>Section 6(d)</u>. In all other cases, if Escrow Agent does not receive a written objection from the other party to the proposed payment on or before the fifth (5th) Business Day after the giving of such notice, Escrow Agent is hereby authorized to make such payment. If Escrow Agent does receive such written objection within such five (5) Business Day period, then Escrow Agent shall continue to hold such amount until otherwise directed by joint written instructions from the parties to this Agreement or a final judgment or arbitrators' decision. However, Escrow Agent shall have the right at any time to deposit the Deposit with the clerk of a state court in the State of Ohio. Escrow Agent shall give written notice of such deposit to Seller and Purchaser. Upon such deposit, Escrow Agent shall be relieved and discharged of all further obligations and responsibilities hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The parties acknowledge that Escrow Agent is acting solely as a stakeholder at their request and for their convenience, that Escrow Agent shall not be deemed to be the agent of either of the parties for any act or omission on its part unless taken or suffered in bad faith, in willful disregard of this Agreement or involving gross negligence. Seller and Purchaser jointly and severally shall indemnify, protect, defend and hold Escrow Agent harmless from and against all losses incurred in connection with the performance of Escrow Agent's duties hereunder, except with respect to actions or omissions taken or suffered by Escrow Agent in bad faith, in willful disregard of this Agreement or in gross negligence on the part of the Escrow Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The parties shall deliver to Escrow Agent an executed copy of this Agreement, which shall constitute their instructions to Escrow Agent. Escrow Agent shall execute the signature page for Escrow Agent attached hereto with respect to the provisions of this <u>Section 33</u>; provided, however, that (i) Escrow Agent's signature hereon shall not be a prerequisite to the binding nature of this Agreement on Seller and Purchaser, and the same shall become fully effective upon execution by Seller and Purchaser, and (ii) the signature of Escrow Agent will not be necessary to amend any provision of this Agreement other than this <u>Section 33</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Escrow Agent, as the person responsible for closing the transaction within the meaning of Section 6045(e)(2)(A) of the Code, shall file all necessary information reports, returns, and statements regarding the transaction required by the Code including the tax reports required pursuant to Section 6045 of the Code. Further, Escrow Agent agrees to indemnify, protect, defend and hold Seller, Purchaser and their respective attorneys and brokers harmless from and against any Losses resulting from Escrow Agent's failure to file the reports Escrow Agent is required to file pursuant to this section.

[Signatures on Following Page]

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates set forth below.

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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;&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>SELLER</u>:**<br>**SIERRA MARYSVILLE STORAGE, LLC**, <br>an Ohio limited liability company<br>By:&nbsp;&nbsp;&nbsp;&nbsp; ________________________________________<br>&nbsp;&nbsp;&nbsp;&nbsp;Name: Brent D. Crawford<br>&nbsp;&nbsp;&nbsp;&nbsp;Title: Manager<br>&nbsp;&nbsp;&nbsp;&nbsp;Date: ______________________, 2025 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>PURCHASER</u>:**<br>Marysville Owner LLC,<br>a Delaware limited liability company, or its assigns<br>By:&nbsp;&nbsp;&nbsp;&nbsp; ________________________________________<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: Steven Orbuch<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: President<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date: ______________________, 2025 |

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[*Signature Page to Real Estate Purchase and Sale Agreement*]

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**<u>ACCEPTANCE OF ESCROW</u>**

Receipt of an executed copy of the foregoing instrument is hereby acknowledged, and the undersigned hereby agrees to act as Escrow Agent in accordance with the foregoing agreement.

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| | |
|:---|:---|
| Dated: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> | _______________________________ |
|  | <br>By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>&nbsp;&nbsp;&nbsp;&nbsp;Name:<br>&nbsp;&nbsp;&nbsp;&nbsp;Title: |

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[*Signature Page to Real Estate Purchase and Sale Agreement*]

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[*Signature Page to Real Estate Purchase and Sale Agreement*]

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**SCHEDULE 2(a)**

<u>Description of the Land</u>

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**SCHEDULE 9(a)(iv)**

<u>Litigation, Proceedings, Actions</u>

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**SCHEDULE 9(a)(vi)**

<u>Service Contracts</u>

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**SCHEDULE 9(a)(xi)**

<u>Building Guarantees and Warranties</u>

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**SCHEDULE 9(a)(xxi)**

<u>Personal Property</u>

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**SCHEDULE 9(a)(xxii)**

<u>Permits</u>

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**EXHIBIT A**

<u>Form Tenant Estoppel</u>

## Exhibit 10.2

**Exhibit 10.2**

**<u>FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT</u>**

**&nbsp;&nbsp;&nbsp;&nbsp;THIS FIRST AMENDMENT TO PURCHASE AND SALE AGREEMENT** (this "<u>Amendment</u>") dated as of September 15, 2025, is made by and between **SIERRA MARYSVILLE STORAGE, LLC**, an Ohio limited liability company ("<u>Seller</u>"), and **MARYSVILLE OWNER LLC**, a Delaware limited liability company ("<u>Purchaser</u>").

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

&nbsp;&nbsp;&nbsp;&nbsp;**WHEREAS**, Seller and Purchaser are parties to that certain Purchase and Sale Agreement dated as of August 14, 2025 (the "<u>Agreement</u>"), pursuant to which Purchaser agreed to buy and Seller agreed to sell certain property located in Marysville, Ohio, as more particularly described in Schedule 2(a) to the Agreement (the "<u>Property</u>");

&nbsp;&nbsp;&nbsp;&nbsp; **WHEREAS**, Seller and Purchaser are mutually desirous of entering into this Amendment to provide for an extension of the Due Diligence period as hereinafter specifically set forth.

&nbsp;&nbsp;&nbsp;&nbsp;**NOW, THEREFORE**, for and in consideration of the premises, Ten Dollars ($10.00) in hand paid by Purchaser to Seller, and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged by the parties hereto prior to the execution and delivery of this Amendment, Seller and Purchaser intending to be legally bound, hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Incorporation of Recitals; Certain Definitions</u>. Each of the foregoing recitals are incorporated herein by this reference and made a part hereof. Capitalized terms not otherwise defined herein shall have the meanings set forth for such terms in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Due Diligence Period</u>. The Agreement is hereby amended to extend the Due Diligence Period such that the Due Diligence Period now expires on September 18, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Ratification of Agreement</u>. Except as otherwise amended by this Amendment, the Agreement is hereby ratified and reaffirmed, and all other terms and conditions of the Agreement shall remain in full force and effect, unchanged. In the event of a conflict between the terms of the Agreement and the terms of this Amendment, the terms of this Amendment shall control. This Amendment shall bind and inure to the benefit of Seller and Purchaser and their respective successors and permitted assigns under the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Counterparts</u>. This Amendment may be executed in multiple counterparts and shall be deemed to have become effective when and only when one or more of such counterparts has been signed by or on behalf of each of the parties to this Amendment and delivered to the other party (although it shall not be necessary that any single counterpart be signed by or on behalf of both parties hereto, and all such counterparts shall be deemed to constitute one and the same instrument). A telecopied facsimile or e-mailed facsimile of a duly executed counterpart of this Amendment shall be sufficient to evidence the binding Agreement of the parties to the terms herein.

5.[Signatures Follow]

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**Exhibit 10.2**

IN WITNESS WHEREOF, the parties have executed this Amendment effective as of the date first set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;**SELLER:**<br>**SIERRA MARYSVILLE STORAGE, LLC**, an Ohio limited liability company<br>By:_________________________________<br> Name: Brent D. Crawford<br> Title: Manager<br>

[signatures continued on next page]

[Signature Page to First Amendment to Purchase and Sale Agreement]

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**Exhibit 10.2**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**PURCHASER:<br>MARYSVILLE OWNER LLC**, <br>a Delaware limited liability company <br>By:______________________________ <br>Name: Steven Orbuch&nbsp;&nbsp;&nbsp;&nbsp;<br>Title: President <br>

[Signature Page to First Amendment to Purchase and Sale Agreement]

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**Exhibit 10.2**

ACCEPTED AND AGREED TO:

**ESCROW AGENT**

STEWART TITLE GUARANTY COMPANY

By: ____________________________

Name: Ericka Micciche

Title: Escrow Officer

[Signature Page to First Amendment to Purchase and Sale Agreement]

## Exhibit 10.3

**Exhibit 10.3**

**<u>SECOND AMENDMENT TO PURCHASE AND SALE AGREEMENT</u>**

**&nbsp;&nbsp;&nbsp;&nbsp;THIS SECOND AMENDMENT TO PURCHASE AND SALE AGREEMENT** (this "<u>Amendment</u>") dated as of September 18, 2025, is made by and between **SIERRA MARYSVILLE STORAGE, LLC**, an Ohio limited liability company ("<u>Seller</u>"), and **MARYSVILLE OWNER LLC**, a Delaware limited liability company ("<u>Purchaser</u>").

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

&nbsp;&nbsp;&nbsp;&nbsp;**WHEREAS**, Seller and Purchaser are parties to that certain Purchase and Sale Agreement dated as of August 14, 2025, as amended by that certain First Amendment to Purchase and Sale Agreement, dated as of September 15, 2025 (collectively, the "<u>Agreement</u>"), pursuant to which Purchaser agreed to buy and Seller agreed to sell certain property located in Marysville, Ohio, as more particularly described in Schedule 2(a) to the Agreement (the "<u>Property</u>");

&nbsp;&nbsp;&nbsp;&nbsp; **WHEREAS**, Seller and Purchaser are mutually desirous of entering into this Amendment to modify the Agreement as hereinafter specifically set forth.

&nbsp;&nbsp;&nbsp;&nbsp;**NOW, THEREFORE**, for and in consideration of the premises, Ten Dollars ($10.00) in hand paid by Purchaser to Seller, and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged by the parties hereto prior to the execution and delivery of this Amendment, Seller and Purchaser intending to be legally bound, hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Incorporation of Recitals; Certain Definitions</u>. Each of the foregoing recitals are incorporated herein by this reference and made a part hereof. Capitalized terms not otherwise defined herein shall have the meanings set forth for such terms in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Due Diligence Period</u>. The Agreement is hereby amended to extend the Due Diligence Period such that the Due Diligence Period now expires on September 19, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Ratification of Agreement</u>. Except as otherwise amended by this Amendment, the Agreement is hereby ratified and reaffirmed, and all other terms and conditions of the Agreement shall remain in full force and effect, unchanged. In the event of a conflict between the terms of the Agreement and the terms of this Amendment, the terms of this Amendment shall control. This Amendment shall bind and inure to the benefit of Seller and Purchaser and their respective successors and permitted assigns under the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Counterparts</u>. This Amendment may be executed in multiple counterparts and shall be deemed to have become effective when and only when one or more of such counterparts has been signed by or on behalf of each of the parties to this Amendment and delivered to the other party (although it shall not be necessary that any single counterpart be signed by or on behalf of both parties hereto, and all such counterparts shall be deemed to constitute one and the same instrument). A telecopied facsimile or e-mailed facsimile of a duly executed counterpart of this Amendment shall be sufficient to evidence the binding Agreement of the parties to the terms herein.

5.[Signatures Follow]

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**Exhibit 10.3**

IN WITNESS WHEREOF, the parties have executed this Amendment effective as of the date first set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;**SELLER:**<br>**SIERRA MARYSVILLE STORAGE, LLC**, an Ohio limited liability company<br>By:_________________________________<br> Name: Brent D. Crawford<br> Title: Manager<br>

[signatures continued on next page]

[Signature Page to Second Amendment to Purchase and Sale Agreement]

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**Exhibit 10.3**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**PURCHASER:<br>MARYSVILLE OWNER LLC**, <br>a Delaware limited liability company <br>By:______________________________ <br>Name: Steven Orbuch&nbsp;&nbsp;&nbsp;&nbsp;<br>Title: President <br>

[Signature Page to Second Amendment to Purchase and Sale Agreement]

## Exhibit 10.4

**EXHIBIT 10.4**

**PURSUANT TO ITEM 601(b)(10) OF REGULATION S-K, CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED BY MEANS OF MARKING SUCH PORTIONS WITH ASTERISKS [\*\*\*] AS THE IDENTIFIED CONFIDENTIAL PORTIONS ARE BOTH NOT MATERIAL AND ARE THE TYPE OF INFORMATION THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL.** 

**<u>THIRD AMENDMENT TO PURCHASE AND SALE AGREEMENT</u>**

**&nbsp;&nbsp;&nbsp;&nbsp;THIS THIRD AMENDMENT TO PURCHASE AND SALE AGREEMENT** (this "<u>Amendment</u>") dated as of September 19, 2025, is made by and between **SIERRA MARYSVILLE STORAGE, LLC**, an Ohio limited liability company ("<u>Seller</u>"), and **MARYSVILLE OWNER LLC**, a Delaware limited liability company ("<u>Purchaser</u>").

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

&nbsp;&nbsp;&nbsp;&nbsp;**WHEREAS**, Seller and Purchaser are parties to that certain Purchase and Sale Agreement dated as of August 14, 2025, as amended by that certain First Amendment to Purchase and Sale Agreement, dated as of September 15, 2025, and further amended by that certain Second Amendment to Purchase and Sale Agreement, dated as of September 18, 2025 (collectively, the "<u>Agreement</u>"), pursuant to which Purchaser agreed to buy and Seller agreed to sell certain property located in Marysville, Ohio, as more particularly described in Schedule 2(a) to the Agreement (the "<u>Property</u>");

&nbsp;&nbsp;&nbsp;&nbsp; **WHEREAS**, Seller and Purchaser are mutually desirous of entering into this Amendment to modify the Agreement as hereinafter specifically set forth.

&nbsp;&nbsp;&nbsp;&nbsp;**NOW, THEREFORE**, for and in consideration of the premises, Ten Dollars ($10.00) in hand paid by Purchaser to Seller, and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged by the parties hereto prior to the execution and delivery of this Amendment, Seller and Purchaser intending to be legally bound, hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Incorporation of Recitals; Certain Definitions</u>. Each of the foregoing recitals are incorporated herein by this reference and made a part hereof. Capitalized terms not otherwise defined herein shall have the meanings set forth for such terms in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>[\*\*\*]</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Scotts Lease Amendment</u>. On or prior to the Closing Date, Seller shall deliver to Purchaser a fully executed amendment to the Scotts Lease, in the form attached hereto as **Exhibit A,** which shall be effective at or prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Scotts Lease SNDA</u>. It shall be an additional condition precedent for Purchaser's benefit pursuant to Section 10(a) of the Agreement that Seller shall have delivered to Purchaser, not later than five (5) days prior to the Closing Date, an original Subordination, Nondisturbance and Attornment, in the form attached hereto as **Exhibit B**, with any modifications requested by Scotts and approved by Purchaser's lender and executed by Scotts.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Enterprise Zoning Agreement</u>. It shall be an additional condition precedent for Purchaser's benefit pursuant to Section 10(a) of the Agreement that all parties thereto have executed and delivered (and shall release simultaneously with Closing) signature pages to the Assignment, Assumption and Amendment Agreement, in the form attached hereto as **Exhibit C**, with any modifications approved by Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Title Policy</u>. Notwithstanding anything in Section 5 of the Agreement, the term "Owner's Policy" shall mean an ALTA Owner's Policy of Title Insurance in the form attached hereto as **Exhibit D**, with any modifications requested by Purchaser and approved by the Title Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Roof Warranty</u>. Seller, at Seller's sole cost and expense, shall take all steps required to effectively assign that certain NDL Roof Guarantee bearing guarantee number G2022-00005576 (the "<u>Roof Guarantee</u>") and provide Purchaser with evidence reasonably acceptable to Purchaser that the Roof Guarantee is in full force and effect for the benefit of Purchaser. Purchaser shall cooperate with Seller in connection with the foregoing. Seller shall indemnify Purchaser from and against any and all loss, cost, claims, liability, penalties, judgments, damages, and other injury, detriment, or expense that Purchaser suffers or incurs (to "<u>Indemnify</u>") to the extent arising out of either (i) the failure of the Roof Guarantee to be properly assigned to Purchaser or (ii) any actions or inactions of Seller during its period of ownership that result in Purchaser not receiving the full benefit of the Roof Guaranty with respect to a claim that would otherwise be covered by the Roof Guaranty. This paragraph shall survive the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Landscaping Noncompliance</u>. Seller acknowledges that the City of Marysville has made claims of noncompliance with respect to the current state of the Property's landscaping (the "<u>Landscaping Noncompliance</u>"). Seller agrees to cure any Landscaping Noncompliance to Purchaser's reasonable satisfaction at the sole cost of Seller and Indemnify Purchaser therefrom. If such Landscaping Noncompliance is not cured prior to Closing, it shall be at Purchaser's election whether Seller shall cure the Landscaping Noncompliance or Purchaser shall cure the Landscaping Noncompliance and Seller shall reimburse Purchaser for all reasonable and actual costs arising therefrom. If Purchaser elects to cure the Landscaping Noncompliance, then Seller shall reimburse Purchaser for its costs within ten (10) Business Days of written notice thereof, which may be by email. This paragraph shall survive the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>Service Contract Terminations</u>. Pursuant to Section 6(i) of the Agreement, Purchaser hereby notifies Seller that it does not wish to assume any of the Service Contracts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.<u>Closing Deliverables</u>. Prior to the date hereof, Seller has approved the forms of closing deliverables listed in Section 14(a)(i)-(vi) of the Agreement, in the form last circulated by Purchaser's attorneys.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.<u>Ratification of Agreement</u>. Except as otherwise amended by this Amendment, the Agreement is hereby ratified and reaffirmed, and all other terms and conditions of the Agreement shall remain in full force and effect, unchanged. In the event of a conflict between the terms of the Agreement and the terms of this Amendment, the terms of this Amendment shall control.

------

This Amendment shall bind and inure to the benefit of Seller and Purchaser and their respective successors and permitted assigns under the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.<u>Counterparts</u>. This Amendment may be executed in multiple counterparts and shall be deemed to have become effective when and only when one or more of such counterparts has been signed by or on behalf of each of the parties to this Amendment and delivered to the other party (although it shall not be necessary that any single counterpart be signed by or on behalf of both parties hereto, and all such counterparts shall be deemed to constitute one and the same instrument). A telecopied facsimile or e-mailed facsimile of a duly executed counterpart of this Amendment shall be sufficient to evidence the binding Agreement of the parties to the terms herein.

13.[Signatures Follow]

------

IN WITNESS WHEREOF, the parties have executed this Amendment effective as of the date first set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;**SELLER:**<br>**SIERRA MARYSVILLE STORAGE, LLC**, an Ohio limited liability company<br>By:_________________________________<br> Name: Brent D. Crawford<br> Title: Manager<br>

[signatures continued on next page]

[Signature Page to Third Amendment to Purchase and Sale 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**PURCHASER:<br>MARYSVILLE OWNER LLC**, <br>a Delaware limited liability company <br>By:______________________________ <br>Name: Steven Orbuch&nbsp;&nbsp;&nbsp;&nbsp;<br>Title: President <br>

[Signature Page to Third Amendment to Purchase and Sale Agreement]

------

**<u>EXHIBIT A</u>**

**LEASE AMENDMENT**

**<u>EXHIBIT B</u>**

**SNDA**

[Exhibit B]

------

**<u>EXHIBIT C</u>**

**ASSIGNMENT, ASSUMPTION AND AMENDMENT AGREEMENT**

[Exhibit C]

------

**<u>EXHIBIT D</u>**

**OWNER'S POLICY**

[Exhibit D

## Exhibit 10.5

**Exhibit 10.5**

**<u>FOURTH AMENDMENT TO PURCHASE AND SALE AGREEMENT</u>**

**&nbsp;&nbsp;&nbsp;&nbsp;THIS FOURTH AMENDMENT TO PURCHASE AND SALE AGREEMENT** (this "<u>Amendment</u>") dated as of October 2, 2025, is made by and between **SIERRA MARYSVILLE STORAGE, LLC**, an Ohio limited liability company ("<u>Seller</u>"), and **MARYSVILLE OWNER LLC**, a Delaware limited liability company ("<u>Purchaser</u>").

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

&nbsp;&nbsp;&nbsp;&nbsp;**WHEREAS**, Seller and Purchaser are parties to that certain Purchase and Sale Agreement dated as of August 14, 2025, as amended by that certain First Amendment to Purchase and Sale Agreement, dated as of September 15, 2025, further amended by that certain Second Amendment to Purchase and Sale Agreement, dated as of September 18, 2025, and further amended by that certain Third Amendment to Purchase and Sale Agreement, dated as of September 19, 2025 (collectively, the "<u>Agreement</u>"), pursuant to which Purchaser agreed to buy and Seller agreed to sell certain property located in Marysville, Ohio, as more particularly described in Schedule 2(a) to the Agreement (the "<u>Property</u>");

&nbsp;&nbsp;&nbsp;&nbsp; **WHEREAS**, Seller and Purchaser are mutually desirous of entering into this Amendment to modify the Agreement as hereinafter specifically set forth.

&nbsp;&nbsp;&nbsp;&nbsp;**NOW, THEREFORE**, for and in consideration of the premises, Ten Dollars ($10.00) in hand paid by Purchaser to Seller, and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged by the parties hereto prior to the execution and delivery of this Amendment, Seller and Purchaser intending to be legally bound, hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Incorporation of Recitals; Certain Definitions</u>. Each of the foregoing recitals are incorporated herein by this reference and made a part hereof. Capitalized terms not otherwise defined herein shall have the meanings set forth for such terms in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Scotts Lease Estoppel</u>. The Tenant Estoppel describes certain Excluded Matters (as defined in the Tenant Estoppel). Seller shall Indemnify Purchaser from the Excluded Matters. Without limiting Seller's obligation to Indemnify Purchaser, Purchaser agrees to use commercially reasonable efforts, as determined by Purchaser in its reasonable judgement, to pursue any warranty, insurance or similar claims relating to the Excluded Matters and to the extent Purchaser ultimately receives funds (or uncompensated repair work) the same shall be accounted for in the calculation of Seller's Indemnity obligation, it being the parties' intention that Seller shall be responsible only for "net" costs paid by Purchaser. This paragraph shall survive the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Ratification of Agreement</u>. Except as otherwise amended by this Amendment, the Agreement is hereby ratified and reaffirmed, and all other terms and conditions of the Agreement shall remain in full force and effect, unchanged. In the event of a conflict between the terms of the Agreement and the terms of this Amendment, the terms of this Amendment shall control. This Amendment shall bind and inure to the benefit of Seller and Purchaser and their respective successors and permitted assigns under the Agreement.

------

**Exhibit 10.5**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Counterparts</u>. This Amendment may be executed in multiple counterparts and shall be deemed to have become effective when and only when one or more of such counterparts has been signed by or on behalf of each of the parties to this Amendment and delivered to the other party (although it shall not be necessary that any single counterpart be signed by or on behalf of both parties hereto, and all such counterparts shall be deemed to constitute one and the same instrument). A telecopied facsimile or e-mailed facsimile of a duly executed counterpart of this Amendment shall be sufficient to evidence the binding Agreement of the parties to the terms herein.

5.[Signatures Follow]

------

**Exhibit 10.5**

IN WITNESS WHEREOF, the parties have executed this Amendment effective as of the date first set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;**SELLER:**<br>**SIERRA MARYSVILLE STORAGE, LLC**, an Ohio limited liability company<br>By:_________________________________<br> Name: Brent D. Crawford<br> Title: Manager<br>

[signatures continued on next page]

[Signature Page to Fourth Amendment to PSA]

------

**Exhibit 10.5**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**PURCHASER:<br>MARYSVILLE OWNER LLC**, <br>a Delaware limited liability company <br>By:______________________________ <br>Name: Steven Orbuch&nbsp;&nbsp;&nbsp;&nbsp;<br>Title: President <br>

[Signature Page to Fourth Amendment to PSA]

## Exhibit 31.1

**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: | November 13, 2025 | By: | /s/ Steven Orbuch |
|  |  |  | **Steven Orbuch** |
|  |  |  | Chief Executive Officer |
|  |  |  | (Principal Executive Officer) |

---

## Exhibit 31.2

**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: | November 13, 2025 | By: | /s/ Ellen Conti |
|  |  |  | **Ellen Conti** |
|  |  |  | Chief Financial Officer |
|  |  |  | (Principal Financial Officer) |

---

## Exhibit 32.1

**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 September 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: | November 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.

## Exhibit 32.2

**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 September 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: | November 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>