# EDGAR Filing Document

**Accession Number:** 0001878614
**File Stem:** 0001104659-25-094349
**Filing Date:** 2025-9
**Character Count:** 173316
**Document Hash:** d2d8920b1c74847294c5e8a126dc60e3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-094349.hdr.sgml**: 20250929

**ACCESSION NUMBER**: 0001104659-25-094349

**CONFORMED SUBMISSION TYPE**: 1-SA

**PUBLIC DOCUMENT COUNT**: 5

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250929

**DATE AS OF CHANGE**: 20250929

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** YS RE RAF I LLC
- **CENTRAL INDEX KEY:** 0001878614
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 863780020
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-SA
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 24R-00576
- **FILM NUMBER:** 251354608

**BUSINESS ADDRESS:**
- **STREET 1:** 300 PARK AVENUE, 15TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10022
- **BUSINESS PHONE:** 844-943-5378

**MAIL ADDRESS:**
- **STREET 1:** 300 PARK AVENUE, 15TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10022

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 1-SA**

**SEMIANNUAL REPORT PURSUANT TO REGULATION A OF THE SECURITIES ACT OF 1933**

**For the Fiscal Semiannual Period ended June 30, 2025**

**YS RE RAF I LLC**

(Exact name of issuer as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **86-3780020** |
| (State or other jurisdiction of | (I.R.S. Employer |
| incorporation or organization) | Identification No.) |
| **300 Park Avenue, 15th Floor** | **10022** |
| **New York, NY** | (Zip Code) |
| (Address of principal executive offices) |  |

---

**(844) 943-5378**

Registrant's telephone number, including area code

**Common Shares**

(Title of each class of securities issued pursuant to Regulation A)

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [Item 1. Business](#a_006) | [5](#a_006) |
| [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_007) | [9](#a_007) |
| [Item 3. Directors and Officers](#a_013) | [12](#a_013) |
| [Item 4. Security Ownership of Management and Certain Securityholders](#a_014) | [14](#a_014) |
| [Item 5. Interest of Management and Others in Certain Transactions](#a_015) | [14](#a_015) |
| [Item 6. Other Information](#a_016) | [15](#a_016) |
| [Item 7. Index to Unaudited Consolidated Financial Statements of YS RE RAF I LLC](#a_018) | [F-1](#a_018) |
| [Exhibits](#a_019) | [16](#a_019) |

---

![](tm2527051d1_1saimg01.jpg)

**YS RE RAF I LLC**

The Company makes statements in this Semiannual Report that are forward-looking statements within the meaning of the federal securities laws. The words "believe," "estimate," "expect," "anticipate," "intend," "plan," "seek," "may," and similar expressions or statements regarding future periods are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the Company's actual results, performance or achievements, or industry results, to differ materially from any predictions of future results, performance or achievements that it expresses or implies in this Semiannual Report or in the information incorporated by reference into this Semiannual Report.

The forward-looking statements included in this Semiannual Report are based upon current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company's control. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, its actual results and performance could differ materially from those set forth in the forward- looking statements. Factors which could have a material adverse effect on the Company's operations and future prospects include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· risks associated with breaches of data security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· changes in economic conditions generally and the real estate and securities markets specifically;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· limited ability to dispose of assets because of the relative illiquidity of real estate investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· intense competition in the real estate market;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· defaults on or non-renewal of leases by tenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· increased interest rates and operating costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· failure to obtain necessary outside financing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· decreased rental rates or increased vacancy rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the risk associated with potential breach or expiration of a ground lease, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· difficulties in identifying properties to complete, and consummating, real estate acquisitions, developments,
joint ventures and dispositions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· failure to successfully operate acquired properties and operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· exposure to liability relating to environmental and health and safety matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· changes in real estate and zoning laws and increases in real property tax rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· failure to maintain the Company's status as a REIT;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· failure of acquisitions to yield anticipated results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the need to invest additional equity in connection with debt refinancings as a result of reduced asset
values;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· ability of the Manager to hire and retain executive officers and other key personnel, and to hire competent
employees and appropriately staff its operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· expected rates of return provided to investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the ability of the Manager to source, originate and service loans and other assets, and the quality and
performance of these assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· legislative or regulatory changes impacting the Company's business or assets (including changes
to the laws governing the taxation of REITs and SEC guidance related to Regulation A or the JOBS Act);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· changes in business conditions and the market value of the Company's assets, including changes in
interest rates, prepayment risk, operator or borrower defaults or bankruptcy, and generally the increased risk of loss if the Company's
investments fail to perform as expected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the Manager's ability to implement effective conflicts of interest policies and procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the Company's ability to access sources of liquidity to fund redemptions of Shares in excess of
the net proceeds of this Offering and the consequential risk that the Company may not have the resources to satisfy redemption requests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· compliance with applicable local, state and federal laws, including the Investment Advisers Act of 1940,
the Investment Company Act of 1940 and other laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· changes to generally accepted accounting principles, or GAAP;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· difficulties winding down our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the ability of the Manager to execute our plan to cease operations and dissolve;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· our ability to pay distributions on our shares in connection with our dissolution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the orderly disposition of our asset portfolio, including the ability to sell any of our properties on
terms we consider favorable.

Any of the assumptions underlying forward-looking statements could be inaccurate. You are cautioned not to place undue reliance on any forward-looking statements included in this Semiannual Report. All forward-looking statements are made as of the date of this Semiannual Report and the risk that actual results will differ materially from the expectations expressed in this Semiannual Report will increase with the passage of time. Except as otherwise required by the federal securities laws, neither the Company, the Manager, the Sponsor, nor any of their affiliates undertakes any obligation to publicly update or revise any forward-looking statements after the date of this Semiannual Report, whether as a result of new information, future events, changed circumstances or any other reason. In light of the significant uncertainties inherent in the forward-looking statements included in this Semiannual Report, including, without limitation, the risks described and incorporated by reference hereby under "Risk Factors," the inclusion of such forward-looking statements should not be regarded as a representation by the Company or any other person that the objectives and plans set forth in this Semiannual Report will be achieved.

**Item 1. Business**

**The Company**

YS RE RAF I LLC is a Delaware limited liability company formed on May 10, 2021 to originate, invest in and manage a diversified portfolio of commercial real estate properties. We applied the net proceeds from our shares Offering to originate, acquire and structure a portfolio of commercial real estate properties. The use of the terms "YS RE RAF I LLC", the "Company", "we", "us" or "our" in this Semiannual Report refer YS RE RAF I LLC unless the context indicates otherwise.

We elected to be taxed as a real estate investment trust, or REIT under the Internal Revenue Code of 1986, as amended (the "Code"), commencing with our taxable year ended December 31, 2022. As of June 30, 2025, our portfolio was comprised of approximately $21,574,072 of commercial real estate properties and commercial mortgage loans that, in the opinion of our Manager, meet our investment objectives. We have attempted to diversify our portfolio by investment type, investment size and investment risk with the goal of attaining a portfolio of real estate assets that provide attractive and stable returns to our investors.

YieldStreet Management, LLC, a Delaware limited liability company, is our investment advisor (in such capacity, the "Manager"). As our Manager, it manages our day-to-day operations and our portfolio of commercial real estate assets, commercial real estate loans and other real estate-related assets. Our Manager also has the authority to make all of the decisions regarding our investments, subject to the limitations in the Operating Agreement of the Company (the "Operating Agreement") and the direction and oversight of our Manager's investment committee. Our Manager also provides asset management, marketing, investor relations and other administrative services on our behalf. Our Manager is a wholly-owned subsidiary of our sponsor, YieldStreet Inc., a Delaware corporation ("Sponsor") which owns an online investment platform at www.yieldstreet.com (the "Platform").

Through June 30, 2025, we raised approximately $44.18 million in capital from approximately 4,000 investors. Although we do not intend to list our common shares for trading on a stock exchange or other trading market, we have adopted a redemption plan designed to provide our shareholders with limited liquidity on a quarterly basis for their investment in our shares. Through June 30, 2025, we have redeemed approximately $5.6 million under the plan.

Effective August 8, 2024, however, YieldStreet Management, LLC determined to indefinitely suspend the share redemption plan of the Company, in accordance with the terms of the Operating Agreement. Additionally, the Company will no longer accept new investors. The suspension of redemptions and proscription of new investors were a result of the Company's determination, based on the existing market conditions in the commercial real estate market, to discontinue and wind down the Company. The Company plans to sell its assets in a manner intended to maximize returns to investors and estimates the wind down process is expected to take approximately two years. The Company will provide shareholders with written notice of updates from time to time related to the wind down process. All liquidation and sale proceeds, net of expenses and fees as described in the Offering Circular and the Operating Agreement, will be distributed pro rata to shareholders.

**Investment Strategy**

The Company's debt investments sought opportunities for the payment of current returns to investors and the preservation of invested capital and capital appreciation from its investments. In connection with our winding down, the Company may invest in commercial real estate-related debt securities (including CMBS, CDOs, CRE CLOs and REIT senior unsecured debt) and other real estate-related assets. The Company's portfolio of investments is secured primarily by U.S. based collateral.

**Investment Objectives**

The Company's primary investment objective was capital appreciation with a secondary objective of creating current income.

The Company may seek to realize growth in the value of its investments by timing their liquidation to maximize value.

There can be no assurance that the Company will attain these objectives or that the value of the Company's assets will not decrease. Furthermore, within the Company's investment objectives and policies, the Manager has substantial discretion with respect to the selection of specific investments and the purchase and sale of the Company's assets.

Our primary investment types are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Commercial
 Real Estate Properties – Our commercial real estate equity investments include direct and indirect ownership in real estate
 and select real estate assets that may be structurally senior to a third-party partner's equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Select
 Real Estate-Related Securities – Our real estate-related securities may include securities issued by other real estate companies,
 either for investment or in change of control transactions completed on a negotiated basis or otherwise, and in bridge and mezzanine
 loans that may lead to an opportunity to purchase a real estate interest.

We believe that these investment types are complementary to each other due to overlapping sources of investment opportunities and common reliance on real estate fundamentals and application of similar portfolio management skills to maximize value and to protect capital.

**Competition**

Our net income depends, in large part, on our ability to manage and liquidate our investments. We compete with many other entities engaged in real estate investment activities, including individuals, corporations, bank and insurance company investment accounts, other REITs, private real estate funds, and other entities engaged in real estate investment activities as well as online lending platforms that compete with the YieldStreet Platform, many of which have greater financial resources and lower costs of capital available to them than we have. In addition, there are numerous REITs with asset acquisition objectives similar to ours, and others may be organized in the future, which may increase competition for the investments suitable for us. Competitive variables include market presence and visibility, amount of capital to be invested per project and underwriting standards. To the extent that a competitor is willing to risk larger amounts of capital in a particular transaction or to employ more liberal underwriting standards when evaluating potential investments than we are, our investment volume and profit margins for our investment portfolio could be impacted. Our competitors may also be willing to accept lower returns on their investments and may drive down market prices. Although we believe that we are well positioned to compete effectively in each facet of our business, there is enormous competition in our market sector and there can be no assurance that we will compete effectively or that we will not encounter increased competition in the future that could limit our ability to conduct our business effectively or liquidate assets without realizing a loss.

**Risk Factors**

We face risks and uncertainties that could affect us and our business as well as the real estate industry generally. These risks are outlined under the heading "Risk Factors" contained in our Offering Circular dated and filed with the SEC on February 25, 2022, which may be accessed <u>[here](https://www.sec.gov/Archives/edgar/data/1878614/000110465922023777/tm2125166d2_partiiandiii.htm)</u>, as the same may be updated from time to time by our future filings under Regulation A. In addition, new risks may emerge at any time and we cannot predict such risks or estimate the extent to which they may affect our financial performance. These risks could result in a decrease in the value of our common shares.

In addition, we call your attention to the following additional risk factor:

**We may not be able to sell our properties on terms we consider favorable and we expect investors will have a negative return on their Shares.**

We are in the process of winding down the Fund and liquidating our assets. To the extent we are not able to sell our assets on terms or at prices we deem favorable, the return to investors may be substantially lower than the current NAV. Moreover, selling commercial real estate takes time, and in the industry's current environment, we may not be able to wait for the best offer or price we might be able to otherwise obtain had more favorable market conditions prevailed. This may negatively affect the return on investment for the Shares. As a result, the distributed value of the Shares is expected to be lower than the price paid by investors, resulting in a loss and negative return.

**NAV**

Our net asset value (NAV) at June 30, 2025 was $5.64 per share.

**Our Investments**

As of June 30, 2025, we held the following investments. See "Recent Developments" <u>below</u> for recent updates on our investments.

---

| | | |
|:---|:---|:---|
| **Investment Type** | **Date** | **Description** |
| Commercial Real Estate Equity<br> ***<u>Fort Worth, Texas</u>*** | 2/25/2022 | The Company made a $9M LP equity investment to partially acquire Sevona Avion Apartments in Fort Worth, TX. Yieldstreet partnered with InterCapital Group ("Fort Worth Sponsor") in the acquisition of the property through a joint venture. Sevona Avion is a 344-unit, Class-A apartment complex built in 2012. Amenities at the property include an outdoor pool, cabanas, grilling stations, fitness center, dog park, and business center. Yieldstreet and Fort Worth Sponsor acquired the property with the business plan to perform renovations to unit interiors and common areas to garner rental premiums, ultimately increasing net operating income at the property. |
| Commercial Real Estate Equity <br> ***<u>Tucson, Arizona</u>*** | 3/4/2022 | The Company made a $8M LP equity investment to partially acquire Alterra Apartments in Tucson, AZ. Yieldstreet partnered with InterCapital Group ("Tucson Sponsor") in the acquisition of the property through a joint venture. Alterra Apartments is a 416-unit, Class-B apartment complex built in 1987. Amenities at the property include an outdoor pool, playground, fitness center, dog park, soccer field, etc. Yieldstreet and Tucson Sponsor acquired the property with the business plan to perform renovations to unit interiors and common areas to garner rental premiums, ultimately increasing net operating income at the property. |
| Commercial Real Estate Equity<br> ***<u>Norfolk, Virginia</u>*** | 2/24/2023 | The Company made a $6.4M LP equity investment to partially acquire Norfolk Flex Industrial Portfolio in Norfolk, VA. YieldStreet partnered with Heritage Capital Group ("Norfolk Sponsor") in the acquisition of three flex buildings through a joint venture. The Properties, built between 1983-1990, total 203,000 square feet of office space and 59,000 square feet SF of warehouse space. YieldStreet and Norfolk Sponsor acquired the property with the business plan to re-lease or re-tenant a significant square footage of the tenancy. |
| Commercial Mortgage Loan <br> ***<u>Scottsdale, Arizona</u>*** | 10/23/2023 | The Company purchased a $3.5M participation in a $12.5M senior loan secured by, among other things, a first priority mortgage lien on a 31,000 SF retail property in the Scottsdale submarket of Phoenix, AZ, which is made up of two in-line retail buildings (~23,000 SF) and two to-be-developed pad sites, all of which are situated on four parcels of land that total 6.9 acres. |
| Commercial Mortgage Loan<br> ***<u>Tucson, Arizona</u>*** | 12/18/2023 | The Company purchased a $5M position in a new $18.4M senior loan to a commercial property owner secured by, among other things, a first priority mortgage lien on a 143,650 SF office property with 645 parking spaces and a 5.78-acre parcel of raw land zoned for industrial development in the Southwest Tucson Office submarket of Tucson, AZ. |

---

**Distributions**

While we are under no obligation to do so, we may declare periodic distributions as circumstances dictate. We expect to authorize and declare distributions based on daily record dates or at irregular times based on the liquidity progress of our wind down plan.

Any distributions we make are at the discretion of our Manager, and are based on, among other factors, our present and reasonably projected future cash flow. Distributions are paid to shareholders as of the record dates selected by our Manager. In addition, the payment of distributions is governed by the REIT distribution requirements, which generally require that we make aggregate annual distributions to our shareholders of at least 90% of our REIT taxable income computed without regard to the dividends paid deduction and excluding net capital gain.

Moreover, even if we make the required minimum distributions under the REIT rules, we are subject to federal income and excise taxes on our undistributed taxable income and gains. As a result, our Manager may make additional distributions, beyond the minimum REIT distribution, to avoid such taxes.

Any distributions that we make directly impacts our NAV, by reducing the amount of our assets. Over the course of your investment, your distributions plus the change in NAV per share (either positive or negative) will produce your total return.

Our distributions will generally constitute a return of capital to the extent that they exceed our current and accumulated earnings and profits as determined for U.S. federal income tax purposes. To the extent that a distribution is treated as a return of capital for U.S. federal income tax purposes, it will reduce a holder's adjusted tax basis in the holder's Shares, and to the extent that it exceeds the holder's adjusted tax basis will be treated as gain resulting from a sale or exchange of such Shares.

There were no distributions for the fiscal period ended June 30, 2025.

**Redemption Plan**

We have adopted a redemption plan whereby, on a quarterly basis, a shareholder may obtain liquidity as described in detail in our Offering Circular, which may be accessed <u>[here](https://www.sec.gov/Archives/edgar/data/1878614/000110465922023777/tm2125166d2_partiiandiii.htm)</u>. Our Manager may in its sole discretion, amend, suspend, or terminate the redemption plan at any time, including to protect our operations and our non-redeemed shareholders, to prevent an undue burden on our liquidity, to preserve our status as a REIT, following any material decrease in our NAV, or for any other reason. In accordance with such right, effective August 8, 2024, our Manager determined to indefinitely suspend the share redemption plan of the Company.

There were no redemptions for the fiscal period ended June 30, 2025.

**Sources of Operating Revenues and Cash Flows**

We generate revenues from net interest income on our commercial real estate investments, as well as cash flow distributions and equity in earnings from our investments in unconsolidated joint ventures. Our income is primarily derived through the difference between revenue and the cost at which we are able to finance our investments. We may also seek to acquire investments which generate attractive returns without any leverage.

**Outlook and Recent Trends**

For more information regarding market conditions, please see the Shareholder Letter.

**Our Strategy**

The Company plans to sell its assets in a manner intended to maximize returns to investors and estimates the wind down process is expected to take two to three years. The Company will provide shareholders with written notice of updates from time to time related to the wind down process. All liquidation and sale proceeds, net of expense and fees as described in the Offering Circular and the Operating Agreement, will be distributed pro rata to shareholders.

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

**Critical Accounting Policies**

Our accounting policies have been established to conform with U.S. Generally Accepted Accounting Principles ("GAAP"). The preparation of financial statements in conformity with GAAP requires us to use judgment in the application of accounting policies, including making estimates and assumptions. These judgments affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Management believes that these estimates and assumptions have been made in an appropriate manner and in a way that accurately reflects our financial condition. We continually test and evaluate these estimates and assumptions using our historical knowledge of the business, as well as other factors, to ensure that they are reasonable for reporting purposes. However, actual results may differ from these estimates and assumptions. If our judgment or interpretation of the facts and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied, thus resulting in a different presentation of the financial statements.

We believe the following critical accounting policies govern the significant judgments and estimates used in the preparation of our financial statements. Please refer to Note 2 *—Summary of Significant Accounting Policies,* included in the financial statements contained in this report below for a more thorough discussion of our accounting policies and procedures. We consider our critical accounting policies to be the following:

<u>Principles of Consolidation</u>

Certain of our investments are considered "majority-owned subsidiaries" within the meaning of the Investment Company Act of 1940. Our ownership interest in an investee referred to as such does not necessarily exceed 50% of the capital of the investee, and the definition under the Investment Company Act differs from the considerations provided by GAAP for whether an investee should be consolidated. We analyze our investments to determine whether they should be consolidated using the voting interest and variable interest models provided by generally accepted accounting principles. See Note 2 - Summary of Significant Accounting Policies, *Principles of Consolidation* in our financial statements for further detail.

Certain of our investments are considered to be "majority-owned subsidiaries" within the meaning of the Investment Company Act of 1940. This definition differs from the GAAP definition of the primary beneficiary of a variable interest entity.

As of June 30, 2025 the Company does not consolidate any separate legal entities in which we own equity interests. We generally consolidate variable interest entities ("VIE") where the Company is the primary beneficiary of a VIE in which we have a variable interest and voting interest entities where the Company is the majority owner or otherwise controls the voting interest entity.

As of June 30, 2025, the Company did not hold any investments in entities which are considered to be variable interest entities based on the determination that we have substantive participating rights in all of the limited partnerships or similar legal entities which may have otherwise been considered variable interest entities.

*Fair Value Disclosures*

We are required to disclose an estimate of fair value of our financial instruments for which it is practicable to estimate the value. The fair value of a financial instrument is the amount at which such financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. For certain of our financial instruments, fair values are not readily available since there are no active trading markets as characterized by current exchanges by willing parties.

We determine the fair value of certain investments in accordance with the fair value hierarchy that requires an entity to maximize the use of observable inputs.

As of June 30, 2025, the Company's financial instruments consist of cash and cash equivalents, three joint venture equity investments, one mortgage loan, one participation in a mortgage loan and accounts receivable. The carrying values of cash and cash equivalents, and accounts receivable are reasonable estimates of their fair value. The aggregate fair value of our investments is based on unobservable Level 3 inputs which management has determined to be its best estimate of current market values. The methods utilized generally included a discounted cash flow method (an income approach) and recent investment method (a market approach). Significant inputs and assumptions include the market based interest or preferred return rate, loan to value ratios, and expected repayment and prepayment dates.

As a result of this assessment, as of June 30, 2025, management estimated the fair value of our investments to be $21,574,072. See <u>Note 4</u>, Fair Value of Financial Instruments in our financial statements.

**Results of Operations**

***Revenue***

For the six-month period ended June 30, 2025, we incurred a net loss of approximately $3,087,059 versus a net loss of $10,391,054 for same period in 2024. This 70% decrease is primarily a result of unrealized losses on our real estate investments in 2024. See the Recent Developments section below for further details related to the investments.

*Dividend and Interest Income from Investments*

For the six-month period ended June 30, 2025, we earned dividend and interest income of approximately $417,398 from our investments versus $544,771 for the same period in 2024. This decrease of 23% is primarily a result of our reduced equity distributions from our joint venture equity investments.

***Expenses***

*General and Administrative*

For the six-month period ended June 30, 2025, we incurred general and administrative expenses, which included professional services fees (legal, audit and tax fees) and other costs associated with operating our business, of approximately 294,398 versus $415,465 for the same period in 2024. The decrease of 29%, primarily driven by reduced consulting fees associated with operating our business.

*Asset Management Fees*

For the six-month period ended June 30, 2025, we incurred asset management fees of approximately $171,455 versus $240,154 for the same period in 2024 a decrease of 29%, resulting from a lower value of assets managed by our Manager in 2025.

*Liquidity and Capital Resources ("Offering")*

We require capital to fund our investment activities and operating expenses. Our capital sources may include net proceeds from our Offering, cash flow from operations, net proceeds from asset repayments and sales, borrowings under credit facilities, other term borrowings and securitization financing transactions.

We currently have no outstanding debt and have not received any commitments from any lenders to provide us with financing. Our Manager may from time to time modify our leverage policy in its discretion in light of then-current economic conditions, relative costs of debt and equity capital, market values of our assets, general conditions in the market for debt and equity securities, growth and acquisition opportunities or other factors.

In addition to making investments in accordance with our investment objectives, we use our capital resources to make certain payments to our Manager. During our organization and offering stage, these payments included payments for reimbursement of certain organization and offering expenses. In addition, borrowers and real estate sponsors may make payments to our sponsor or its affiliates in connection with the selection or purchase of investments. The amount of the asset management fee may vary from time to time, and we will publicly report any changes in the asset management fee. During the period ended June 30, 2025, asset management fees of $171,455 have been incurred. As of June 30, 2025, $82,827 of asset management fees remain payable to the Manager. In accordance with the Company's operating agreement, we expect these fees to be paid prior to any distributions to shareholders.

**Cash Flows**

The following presents our statement of cash flows for the six months ended June 30, 2025:

---

| | |
|:---|:---|
| **Cash Flows** | **For the Six Months<br> Ended June 30, <br> 2025** |
| Operating activities: | $(214116) |
| Financing activities: | $- |
| Net increase (decrease) in cash and cash equivalents | $(214116) |
| Cash and cash equivalents, beginning of period | $536778 |
| Cash and cash equivalents, end of period | $322662 |
| **Off-Balance Sheet Arrangements** |  |

---

As of June 30, 2025, we had no off-balance sheet arrangements.

**Related Party Arrangements**

For further information regarding "Related Party Arrangements," please see "Item 5 - Interest of Management and Others in Certain Transactions" and Note 7, Related Party Arrangements in Item 7, Financial Statements.

**Recent Developments**

Effective August 8, 2024, our Manager determined to indefinitely suspend our share redemption plan, in accordance with the terms of the Operating Agreement. Additionally, the Company will no longer accept new investors. The suspension of redemptions and proscription of new investors were the result of the Company's determination, based on the existing market conditions in the commercial real estate market, to discontinue and wind down the Company. The Company plans to sell its assets in a manner intended to maximize returns to investors and estimates the wind down process is expected to take two to three years. The Company will provide shareholders with written notice of updates from time to time related to the wind down process. All liquidation and sale proceeds, net of expenses and fees as described in the Offering Circular and the Operating Agreement, will be distributed pro rata to shareholders.

---

| | | |
|:---|:---|:---|
| **Event** | **Date** | **Description** |
| Commercial Real Estate Equity<br> ***<u>Fort Worth, Texas</u>*** | 2/25/2022 | The investment is tracking broadly in line with key business milestones, though market softness continues to weigh on NOI. Occupancy in 2Q held at approximately 90%, and NOI was on budget. However, net cash flow—before capital expenditures and after debt service—was negative. Management remains focused on sustaining budgeted occupancy and driving GPR growth to support a favorable exit once market conditions improve. The loan has been extended through July 2026. |
| Commercial Real Estate Equity ***<u>Tucson, Arizona</u>*** | 03/04/2022 | This investment is not performing in line with expectations as a result of higher interest rates and lack of growth in the submarket due to increased competition. The sponsor has stabilized occupancy at the property, maintaining ~92% occupancy throughout the first half of 2025. While the property is performing better than its direct competitors, it is materially underperforming the sponsor's original projections due to lower rent growth. The property is not generating enough cash flow to cover the monthly debt service payments. The JV is covering the shortfalls by utilizing the re-allocated renovation reserve funds as discussed. The senior loan matured in April 2025 and the property did not meet the contractual extension requirements to obtain an extended term. As a result, the senior loan is in maturity default, though the JV continues to make monthly debt service payments. The JV is engaged in active discussions with the lender. The expectation is that any modification agreed to would require an infusion of additional capital in the form of a member loan. |

---

---

| | | |
|:---|:---|:---|
| Commercial Real Estate Equity ***<u>Norfolk, Virginia</u>*** | 2/24/2023 | The investment is performing in line with expectations, and the business plan is on track. As of the end of Q2, the properties were 91% leased. Post quarter end, the sponsor has signed a new lease with a state government tenant for ~11K square feet, which brings the occupancy up to ~92%. The property's year-to-date net operating income was ~4% below the budget. |
| Commercial Mortgage Loan ***<u>Scottsdale, Arizona</u>*** | 10/23/2023 | The borrower executed an additional lease in the second quarter, which brought the property's leased square footage total to ~88% from just 42% at closing. The newly signed tenant will take occupancy in February 2025. Only one ~4,000 square foot space remains vacant at the property, which the borrower is focused on leasing. The Fund has reserved funds for tenant improvements and leasing commissions for that space. Monthly interest payments have been received on time since closing and are expected to continue while the borrower finishes the lease-up of the property. |
| Commercial Mortgage Loan ***<u>Tucson, Arizona</u>*** | 12/18/2023 | The investment is performing in line with expectations with sponsor paying monthly. The property is 100% occupied as of the end of June 2025. |

---

**Item** **3. Directors and Officers**

***Our Manager***

We operate under the direction of our Manager, which is responsible for directing the management of our business and affairs, managing our day-to-day affairs, and implementing our investment strategy. Our Manager has established an investment committee that makes decisions with respect to all acquisitions and dispositions. Our Manager and its officers and directors are not required to devote all of their time to our business and are only required to devote such time to our affairs as their duties require.

We follow investment guidelines adopted by our Manager and the investment and borrowing policies set forth in our Offering Circular, which may be accessed <u>here</u>, unless they are modified by our Manager. Our Manager may establish further written policies on investments and borrowings and will monitor our administrative procedures, investment operations and performance to ensure that the policies are fulfilled. Our Manager may change our investment objectives at any time without approval of our shareholders.

Our Manager performs its duties and responsibilities pursuant to our Operating Agreement. Our Manager maintains a contractual, as opposed to a fiduciary relationship, with us and our shareholders. Furthermore, we have agreed to limit the liability of our Manager and to indemnify our Manager against certain liabilities.

***Board of Managers and Executive Officers of the Company***

The Board of Managers of the Company (the "Board of Managers") monitors and performs an oversight role with respect to the business and affairs of the Company. However, the Manager, rather than the Board of Managers or any executive officer of the Company, will manage the day-to-day operations of the Company and the Company's investment portfolio. The Company will not pay any compensation to any member of the Board of Managers nor to any executive officer of the Company.

The following persons are the members of the Board of Managers of the Company; Karen Vazirani, Ted Yarbrough, and Mitchell Rosen. The following persons are the executive officers of the Company; (i) Mitchell Rosen, Chief Executive Officer, and (ii) Stephen Ferrara, Chief Financial Officer. The address for each member of the Board of Managers and for each executive officer of the Company is c/o YieldStreet Management, LLC, 300 Park Avenue, 15th Floor, New York, NY 10022. Below is a description of the experiences and qualifications of the members of the Board of Managers and executive officers of the Company.

***Karan Vazirani***. Mr. Vazirani is the Chief Financial Officer of the Sponsor. Prior to joining the Sponsor in 2024, Mr. Vazirani served as the Senior Vice President & Managing Director at Cadre, a tech-enabled real estate investment platform and, earlier in his career, worked as an investment professional at Metalmark Capital and Greenhill & Co. Mr. Vazirani graduated with a bachelors degree from the Stern School of Business at New York University.

***Ted Yarbrough.*** Mr. Yarbrough serves as the Chief Investment Officer at Yieldstreet. He is responsible for all investment origination, underwriting, and risk management of the $1.5+ billion Yieldstreet portfolio, across a variety of alternative assets classes, including real estate, specialty finance, private credit, art, third party funds, and structured notes. Prior to joining Yieldstreet, Mr. Yarbrough held various leadership positions across various banking and markets platforms at Citi Group such as Global Head of Securitized Products, Global Head of Structured Finance, Chief Investment Officer of the Global Spread Products division, and Global Co-Head of Institutional Credit Management. In these roles, Ted was responsible for capital markets, financing and risk management across a broad array of alternative asset classes, including real estate, consumer and commercial receivables, equipment, transportation, project finance, infrastructure, and renewable energy, and oversaw asset portfolios in excess of $100 billion.

***Mitchell Rosen.*** Mr. Rosen is responsible for the real estate investment vertical at Sponsor. Prior to joining Sponsor, Mr. Rosen worked at Brigade Capital Management, a credit focused alternative asset management firm, where he spent more than 5 years focusing on CMBS/CRE debt investing. Prior to Brigade, Mr. Rosen spent almost 9 years at Marathon Asset Management working on both the direct lending program on transitional properties as well as the head credit analyst for their CMBS business. Mr. Rosen entered the real estate lending arena as an analyst at Capital Trust, Inc., a publicly traded commercial mortgage REIT focusing on the mezzanine debt lending space. Mr. Rosen has a Bachelor of Business Administration from Emory University.

***Stephen Ferrara.*** Mr. Ferrara has served as Chief Financial Officer and chief accounting officer of the Company since August 2024. Prior to joining Yieldstreet he was an Associate Director at Point72 Asset Management, managing teams in both Fund Administration and Treasury. Most recently, he was the Controller and Chief Compliance Officer at Ocean Park Investments. Mr. Ferrara started his career in public accounting at Deloitte, where he spent 6 years, leaving as a manager. He is registered as a CPA in the State of Connecticut and has a Bachelor of Science degree in accounting and finance from Bryant University.

***Compensation of Executive Officers***

We do not currently have any employees nor do we currently intend to hire any employees who will be compensated directly by us. Some of the executive officers of our Sponsor also serves as an executive officer of our Manager. Each of these individuals receives compensation for his services, including services performed for us on behalf of our Manager, from our Sponsor. As executive officers of our Manager, these individuals serve to manage our day-today affairs, oversee the review, selection and recommendation of investment opportunities, service acquired investments and monitor the performance of these investments to ensure that they are consistent with our investment objectives. Although we indirectly bear some of the costs of the compensation paid to these individuals, through fees and reimbursements we pay to our Manager, we do not pay any compensation directly to these individuals.

***Compensation of our Manager***

For information regarding the compensation of our Manager, please see "Management Compensation" in our Offering Circular <u>[here](https://www.sec.gov/Archives/edgar/data/1878614/000110465922023777/tm2125166d2_partiiandiii.htm)</u>.

**Item 4.** **Security Ownership of Management and Certain Securityholders**

***Principal Shareholders***

The following table sets forth the beneficial ownership of the outstanding shares as of June 30, 2025 for each person or group that holds more than 5% of the outstanding shares, or for each director and executive officer of our Manager and for the directors and executive officers of our Manager as a group To the Company's knowledge, each person that beneficially owns shares has sole voting and disposition power with regard to such shares.

---

| | | |
|:---|:---|:---|
| **Name of Beneficial Owner (1)(2)** | **Number of <br> Shares<br> Beneficially <br> Owned** | **Percent of <br> All Shares** |
| Mitchell Rosen | 1000 | \* |
| Directors and Executive Officers of our Manager as a group (9 persons) | 1000 | \* |
| Managers and Executive Officers of the Company as a group (4 persons) | 1000 | \* |

---

(1) Under SEC rules, a person is deemed to be a "beneficial owner" of a security if that person
has or shares "voting power," which includes the power to dispose of or to direct the disposition of such security. A person
also is deemed to be a beneficial owner of any securities which that person has a right to acquire within 60 days. Under these rules,
more than one person may be deemed to be a beneficial owner of the same securities and a person may be deemed to be a beneficial owner
of securities as to which he or she has no economic or pecuniary interest.

(2) Each listed beneficial owner, person or entity has an address in care of our principal executive offices at 300 Park Avenue, New York, NY 10022

\* Represents less than 1.0% of our outstanding common shares.

***Transfer Agent***

DST Systems, Inc. acts as our transfer agent. Shareholder inquiries may be made to them at YieldStreet@dstsystems.com.

**Item** **5. Interest of Management and Others in Certain Transactions**

For further details, please see *<u>Note 7</u>, Related Party Arrangements* in *<u>Item 7</u>*, *Financial Statements*.

**Item 6.** **Other Information**

**Shareholder Letter**

Dear Shareholders,

Thank you once again for your interest in the Growth & Income REIT. We appreciate and value the trust and confidence you have placed with us through your investment.

The fund launched in February 2022 with the goal of providing a diversified investment solution for investors seeking exposure to commercial real estate outside of traditional public markets. Our thesis was clear: focus on newer-vintage real estate assets in prime markets characterized by strong job and wage growth, favorable migration trends, business-friendly tax regimes, and consistent rental demand. While we remained focused on to this strategy, the broader macro backdrop and Federal Reserve policy materially impacted return profiles and investment opportunities.

As we reflect on the first half of 2025, the environment shows early signs of stabilization, even as uncertainty persists. According to CBRE, U.S. CRE investment volume is expected to rise 10% this year to $437 billion, though activity remains roughly 18% below pre-pandemic averages. Market confidence is being supported by strong fundamentals in prime assets and a recently enacted tax-and-spending bill preserving favorable treatment for real estate.

At the same time, capital markets remain cautious. Elevated interest rates, trade-related inflation, and slowing growth (with GDP forecasts revised down to 1.5%) continue to pressure valuations. The 10-year Treasury yield is projected to end the year at 4.3%, while inflation is forecast at 3.1%, reflecting tariff-driven cost pressures. Still, cap rates have largely held stable, with modest compression expected over time, albeit more gradually than previously anticipated. Transaction activity has improved modestly, according to CBRE's U.S. Real Estate Market Outlook, the office sector is forecast to see the largest YoY volume increase (+19%) as investors selectively pursue discounted or high-quality assets.

Against this backdrop, we remain focused on executing the wind-down of the REIT in an orderly fashion. Our priority is optimizing both time and return of capital. Given the floating-rate debt structures used to acquire assets, additional capital will likely be required in certain cases to extend runway, bridge to sale or refinance, and allow the market recovery to take hold. We expect to seek raising any such capital from existing partners or third-party financing parties. With fundamentals showing only tentative signs of stabilization, muted rent growth continues to be a headwind and limits the ability to drive NOI growth in the near term. At the same time, any meaningful recovery in value will also require further improvement in capital markets, where elevated borrowing costs and constrained liquidity continue to weigh on transaction activity. While supportive tax policy and selective deal flow are encouraging, the overall recovery path is slower and more uncertain than many expected. Each additional quarter of runway is therefore less about capturing upside and more about preserving optionality, as maximizing recovery ultimately depends on both stronger rent growth and a more functional capital markets environment.

We appreciate your continued trust and reiterate our focus on maximizing the investor return of capital.

Sincerely,

Mitch Rosen

**Item 7. Financial Statements**

**INDEX TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS OF**

**YS RE RAF I LLC**

---

| | |
|:---|:---|
| [Consolidated Balance Sheets](#a_001) | [F-2](#a_001) |
| [Consolidated Statements of Operations](#a_002) | [F-3](#a_002) |
| [Consolidated Statements of Changes in Members' Equity](#a_003) | [F-4](#a_003) |
| [Consolidated Statements of Cash Flows](#a_004) | [F-5](#a_004) |
| [Notes to Consolidated Financial Statements](#a_005) | [F-6 to F-16](#a_005) |

---

**YS RE RAF I, LLC**

**Consolidated Balance Sheets**

**As of June 30, 2025 and <br> December 31, 2024**

(Amounts in dollars, except share data)

---

| | | |
|:---|:---|:---|
|  | **As of June<br> 30, 2025<br> (Unaudited)** | **As of December<br> 31, 2024<br> (Audited)** |
| **ASSETS:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments at Fair Value (cost $31,926,381 and 31,801,887) | $21574072 | $24488183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and Cash Equivalents | 322662 | 536778 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts Receivable | 62777 | 63772 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL ASSETS** | $**21959511** | $**25088733** |

---

**LIABILITIES AND MEMBERS' EQUITY:**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;LIABILITIES: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable to Managing Member | $82827 | $95235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued Expenses | 161619 | 191374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | **244446** | **286609** |

---

---

| | | |
|:---|:---|:---|
| MEMBERS' EQUITY: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common shares, net of redemptions; unlimited shares authorized 7,500,000; 4,439,583 and 4,439,583 shares issued and 3,847,720 and 3,847,720 shares outstanding as of June 30, 2025 and December 31, 2024 | $21715065 | $24802124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Members' Equity** | **21715065** | **24802124** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES AND MEMBERS' EQUITY** | $**21959511** | $**25088733** |

---

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

**YS RE RAF I, LLC**

**Consolidated Statements of Operations**

**For the Six Months Ended June 30, 2025 and 2024**

**(Unaudited)**

(Amounts in dollars, except share data)

---

| | | |
|:---|:---|:---|
|  | **For the Six<br> Months <br> Ended June 30,<br> 2025** | **For the Six<br> Months<br> Ended June 30,<br> 2024** |
| **INVESTMENT INCOME:** |  |  |
| &nbsp;&nbsp;&nbsp;Dividend Income | $- | $91249 |
| &nbsp;&nbsp;&nbsp;Interest Income | 417398 | 453522 |
| &nbsp;&nbsp;&nbsp;Other Income | - | 35767 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL INVESTMENT INCOME** | 417398 | 580538 |
| **EXPENSES:** |  |  |
| &nbsp;&nbsp;&nbsp;Management Fees | 171455 | 240154 |
| &nbsp;&nbsp;&nbsp;Professional Fees | 294398 | 398570 |
| &nbsp;&nbsp;&nbsp;Interest Expense |  | 203 |
| &nbsp;&nbsp;&nbsp;Other Expenses | - | 16895 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL EXPENSES** | **465853** | **655822** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET INVESTMENT LOSS** | (48455) | (75284) |
| &nbsp;&nbsp;&nbsp;Net Change in Unrealized Gain on Investments in Real Estate | (3038604) | (10315770) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NET CHANGE IN UNREALIZED GAIN | (3038604) | (10315770) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NET GAIN/(LOSS)** | $**(3087059)** | $**(10391054)** |

---

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

**YS RE RAF I, LLC**

**Consolidated Statements of Changes in Members' Equity**

**For the Six Months Ended June 30, 2025 (Unaudited)<br> and Year Ended December 31, 2024**

(Amounts in dollars, except share data)

---

| | | | |
|:---|:---|:---|:---|
|  | **Managing<br> Member** | **Members'<br> Equity** | **Total<br> Equity** |
| **Members' Equity January 1, 2024** | $**—** | $**37145452** | $**37145452** |
| &nbsp;&nbsp;Contributions |  | 104600 | **104600** |
| &nbsp;&nbsp;Redemptions |  | (997231) | **(997231)** |
| &nbsp;&nbsp;Net Loss from Operations |  | (11450697) | **(11450697)** |
| **Members' Equity December 31, 2024** | $**—** | $**24802124** | $**24802124** |
| &nbsp;&nbsp;Contributions |  |  |  |
| &nbsp;&nbsp;Redemptions |  |  |  |
| &nbsp;&nbsp;Net Loss from Operations |  | (3087059) | (3087059) |
| **Members' Equity June 30, 2025** | $**—** | $**21715065** | $**21715065** |

---

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

**YS RE RAF I, LLC**

**Consolidated Statements of Cash Flows**

**For the Six Months Ended June 30, 2025 (Unaudited)<br> and Year Ended December 31, 2024**

(Amounts in dollars, except share data)

---

| | | |
|:---|:---|:---|
|  | **For the Six <br> Months<br> Ended June 30,<br> 2025** | **For the<br> Year Ended<br> December 31,<br> 2024** |
| **Cash Flows from Operating Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Net Loss from Operations | $(3087059) | $(11450697) |
| &nbsp;&nbsp;&nbsp;Adjustments to Reconcile Net Loss from Operations to Net Cash |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of Investments in Real Estate | (80814) | (326293) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paid in Kind Interest | (44854) | (93017) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paydowns on Investments in Real Estate | 1175 | 12867 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Change in Unrealized Gain on Investments in Real Estate | 3038604 | 6405966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Change in Realized Loss on Investments in Real Estate |  | 5000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in Assets and Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts Receivable | 995 | (53051) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts Payable |  | (28613) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued Expenses | (29756) | 84662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable to Managing Member | (12407) | (44914) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash Used in Operating Activities** | (214116) | (493090) |
| **Cash Flows from Financing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contributions |  | 104600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemptions | - | (997231) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash Used in Financing Activities** | - | (892631) |
| <br> **Net Decrease in Cash** | (214116) | (1385721) |
| **Cash and Cash Equivalents at the Beginning of Period** | 536778 | 1922499 |
| <br> **Cash and Cash Equivalents at the End of Period** | $**322662** | $**536778** |

---

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

**YS RE RAF I, LLC**

**For the Six Months Ended June 30, 2025 and 2024**

**Notes to Consolidated Financial Statements**

**(Unaudited)**

**1.** **Organization and Description of Business** 

YS RE RAF I, LLC (the "Fund"), a Delaware limited liability company, was formed on May 10, 2021 and commenced operations on February 24, 2022. The Fund's shares are not publicly traded.

We have elected to be taxed as a real estate investment trust, or REIT under the Internal Revenue Code of 1986, as amended ("the Code"), commencing with our taxable year ended December 31, 2022.

The Fund seeks to achieve its investment objective by primarily investing in real estate investment opportunities across the capital structure including first mortgage loans, subordinate mortgage loans, mezzanine loans, loan participations, preferred equity and equity and other real estate and real estate-related investments. The Fund intends to work with and invest alongside partners with established track records as investment opportunities present themselves. Thus, the Fund may directly or indirectly invest in a wide variety of commercial properties including office, industrial, retail, hospitality, recreation and leisure and single-tenant, multifamily and other real properties. These properties may be existing, income-producing properties, newly constructed properties or properties under development.

YieldStreet Management, LLC (the "Manager" or "Managing Member") serves as the investment adviser of the Fund pursuant to an Investment Advisory Agreement (the "Investment Advisory Agreement"). The Manager is a Delaware limited liability company that is registered as an investment adviser with the Securities and Exchange Commission (the "SEC") under the Investment Advisers Act of 1940 (the "Advisers Act"). The Manager also serves as the Fund's administrator, and in such capacity provides, or arranges for the provision of, the administration services necessary for the Fund to operate. The Manager, in its capacity as the Fund's administrator, expects to retain one or more sub-administrators from time to time to provide certain administrative services to the Fund on its behalf.

The Fund's initial and subsequent offering of its common shares (the "Offering") is being conducted as a continuous offering pursuant to Rule 251(d)(3) of Regulation A ("Regulation A") of the Securities Act of 1933, as amended (the "Securities Act"), meaning that while the offering of securities is continuous, active sales of securities may happen sporadically over the term of an Offering. A maximum of $75,000,000 of the Fund's common shares may be sold to the public in its Offering in any given twelve-month period. However, each Offering is subject to qualification by the SEC. The Manager has the authority to issue an unlimited number of common shares.

A taxable REIT subsidiary ("TRS") is an entity that is taxable as a corporation in which the REIT owns, directly or indirectly, an equity interest, including stock, and that elects, together with the REIT, to be treated as a TRS under the Internal Revenue Code. The Fund formed YS RE TRS I LLC (the "TRS"), a Delaware limited liability company, on February 23, 2022. For the six months ended June 30, 2025 and 2024, there have been no activities conducted through the TRS.

**2.** **Summary of Significant Accounting Policies** 

***Basis of Presentation***

The accompanying consolidated financial statements have been prepared on the accrual basis of accounting and conform to accounting principles generally accepted in the United States of America ("U.S. GAAP").

***Principles of Consolidation***

The Fund performs an analysis to determine if an entity is a variable interest entity ("VIE") or a voting interest entity ("VOE"). Assessing whether an entity is a VIE or a VOE involves judgment and analysis. Factors considered in this assessment include the entity's legal organization, the entity's capital structure and equity ownership, and any related party or de facto agent implications of the Fund's involvement with the entity. Investments that are determined to be VIEs are consolidated if the Fund is the primary beneficiary ("PB") of the entity. Upon the occurrence of certain events (such as contributions and redemptions, either by the Fund, or third parties, or amendments to the governing documents of the Fund's investment products), management reviews and reconsiders its previous conclusion regarding the status of an entity as a VIE or a VOE.

Additionally, management continually reconsiders whether the Fund is deemed to be a VIE's PB that consolidates such entity.

*Consolidation of Variable Interest Entities*: The Fund consolidates entities when it owns, directly or indirectly, a majority interest in the entity or are otherwise able to control the entity. The Fund consolidated variable interest entities ("VIEs") in accordance with the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, Consolidation, if the Fund is the primary beneficiary of the VIE as determined by its power to direct the VIE's activities and the obligation to absorb its losses or the right to receive its benefits, which are potentially significant to the VIE. A VIE is broadly defined as an entity with one or more of the following characteristics: (a) the total equity investment at risk is insufficient to finance the entity's activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about the entity's activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests, and substantially all of the entity's activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights.

*Consolidation of Voting Interest Entities*: The Fund is required to consolidate an investee to the extent that it can exert control over the financial and operating policies of the investee, which generally exists if there is a greater than 50% voting equity interest.

All intercompany balances and transactions have been eliminated in consolidation.

***Estimates***

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.

***Cash and Cash Equivalents***

The Fund defines cash equivalents as securities that are readily convertible into known amounts of cash and near maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only securities with a maturity of three months or less from the date of purchase would qualify, with limited exceptions. The Fund deems that certain money market funds, U.S. Treasury bills, repurchase agreements, and other high-quality, short- term debt securities would qualify as cash equivalents. Cash equivalents would be classified as Level 1 as carrying amount approximates its fair value. As of June 30, 2025 and December 31, 2024, cash and cash equivalents balances are presented on the Consolidated Balance Sheets and there were $68,764 and $55,740 in cash and $253,898 and $481,038 in cash equivalents held, respectively.

***Investments in Equity Method Investees***

If it is determined that the Fund does not have a controlling interest in a joint venture through its financial interest in a VIE or through voting interest in a voting interest entity and the Fund has the ability to provide significant influence, the equity method of accounting is used. Under this method, the investment, originally recorded at cost, is adjusted to recognize our share of net earnings or losses of the affiliate as they occur, with losses limited to the extent of our investment in, advances to, and commitments to the investee. The Fund has elected to adopt ASC 825-10-15-4, – Financial Instruments, Fair Value Option for its equity method investments. As a result, the Fund recorded its equity method investments using the fair value option and recorded the investments at fair value each reporting period, with changes in fair value recorded to the income statement. The Fund determined the fair values internally and followed the valuation specific guidance within ASC 820-10-35.

***Investment Transactions and Investment Income***

Investment transactions are accounted for on a trade-date basis for financial reporting purposes and amounts payable or receivable for trades not settled as of year-end are reflected as liabilities and assets, respectively, in the Consolidated Balance Sheet. Realized gains and losses on investment transactions reflected in the Consolidated Statement of Operations are recorded on a trade-date basis. Cost is determined by the specific identification method. Interest is recorded on an accrual basis and dividend income is recorded on the ex-dividend date.

Investments that are expected to pay regularly scheduled interest and/or dividends in cash are generally placed on non-accrual status when principal or interest/dividend cash payments are past due 30 days or more and/or when it is no longer probable that principal or interest/dividend cash payments will be collected. Such non-accrual investments are restored to accrual status if past due principal and interest or dividends are paid in cash, and in management's judgment, are likely to continue timely payment of their remaining interest or dividend obligations. Interest or dividend cash payments received on non-accrual designated investments may be recognized as income or applied to principal depending upon management's judgment.

***Expense Recognition***

Expenses include management fees and may include professional fees, including but not limited to insurance expenses, legal fees, audit and tax service expenses and other general and administrative expenses. Expenses are recorded on an accrual basis.

***Distributions***

Distributions to common shareholders, which are determined in accordance with the plan of distribution set forth in the Fund's offering circular and with federal income tax regulations, are recorded on the ex-dividend date.

***Income Taxes***

The Fund intends to be treated as a REIT, "real estate investment trust" for U.S. federal income tax purposes. As a result of such qualification, the Fund generally would not be subject to federal corporate income taxes on its taxable income that is distributed to owners of equity therein. Instead, such distributions generally would be taxable to the equity owners of the Fund as ordinary and/or capital gain dividends to the extent of the Fund's earning and profits ("E&P") and depending on the character of income at the Fund level. Among other requirements to qualify as a REIT, the Fund must make distributions to its equity owners of at least 90% of their annual ordinary taxable income. If the Fund fails to qualify as a REIT in any taxable year, it will be subject to federal income taxes as a corporation, unless the Internal Revenue Service grants relief under certain statutory provisions. The character of income and gains that the Fund will distribute is determined in accordance with income tax regulations that may differ from GAAP.

As a result of the formation of the TRS and subsequent acquisitions during the years ended December 31, 2023 and 2022, the Fund expects to record income tax expense or benefit with respect to our entity that is taxed as a TRS under provisions similar to those applicable to regular corporations and not under the REIT provisions. There was no TRS activity for the six months ended June 30, 2025 and 2024. Accordingly, no income tax expense was recorded for the six months ended June 30, 2025 and 2024. No material provisions have been made for federal income taxes in the accompanying consolidated financial statements during the six months ended June 30, 2025 and 2024. No gross deferred tax assets or liabilities have been recorded as of June 30, 2025 and 2024.

As of June 30, 2025, the tax periods for the taxable years ended December 31, 2024 and 2023 and all tax periods following remain open to examination by the major taxing authorities in all jurisdictions where we are subject to taxation.

**3.** **Significant Unconsolidated Investments** 

The following unconsolidated subsidiaries are considered significant subsidiaries under SEC Regulation S-X Rule 10-01(b)(1) and Regulation S-X Rule 4-08(g) as of June 30, 2025. As of June 30, 2025 and December 31, 2024 and for the period ended June 30, 2025 and the year ended December 31, 2024, the condensed financial position and results of operations of the Fund's material investments are summarized below:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Condensed balance sheet information:** | **Norfolk Commerce <br> SPE, LLC**<br>**As of<br> June 30, 2025** | **Alterra Owner, LLC**<br>**As of<br> June 30, 2025** | **Avion Owner, LLC**<br>**As of<br> June 30, 2025** |
| Real estate assets, net | $31775015 | $72449622 | $70288835 |
| Other assets | 1091188 | 1392021 | 5405782 |
| **Total assets** | $**32866203** | $**73841643** | $**75694617** |
| Mortgage notes payable, net | $22742229 | $64000000 | $62550000 |
| Other liabilities | 330352 | 1628210 | 2077211 |
| Equity | 9793622 | 8213433 | 11067406 |
| **Total liabilities and equity** | $**32866203** | $**73841643** | $**75694617** |

---

---

| | | | |
|:---|:---|:---|:---|
| <br>**Condensed balance sheet information:** | **Norfolk Commerce <br> SPE, LLC**<br>**As of<br> December 31, 2024** | **Alterra Owner,<br> LLC**<br>**As of<br> December 31, 2024** | **Avion Owner,<br> LLC**<br>**As of<br> December 31, 2024** |
| Real estate assets, net | $31848445 | $73921481 | $71637336 |
| Other assets | 1641367 | 1689270 | 3934108 |
| **Total assets** | $**33489812** | $**75610751** | $**75571444** |
| Mortgage notes payable, net | $22756380 | $64000000 | $62800000 |
| Other liabilities | 423428 | 931960 | 2271123 |
| Equity | 10310004 | 10678791 | 10500321 |
| **Total liabilities and equity** | $**33489812** | $**75610751** | $**75571444** |

---

---

| | | | |
|:---|:---|:---|:---|
| <br>**Condensed income statement information:** | **Norfolk Commerce <br> Owner, LLC**<br>**Six Months Ended <br> June 30, 2025** | **Alterra Owner, LLC**<br>**Six Months Ended <br> June 30, 2025** | **Avion Owner, LLC**<br>**Six Months Ended <br> June 30, 2025** |
| Total revenue | $1909513 | $3463303 | $4375146 |
| Total expenses | (1839511) | (2667920) | (3510332) |
| Interest and debt expenses | (586384) | (2891069) | (3074208) |
| Unrealized gain on interest rate swap |  |  | (223521) |
| Realized (loss) on interest rate swap | - | (369672) | - |
| **Net income (loss)** | $**(516382)** | $**(2465358)** | $**(2432915)** |

---

---

| | | | |
|:---|:---|:---|:---|
| <br>**Condensed income statement information:** | **Norfolk Commerce<br> Owner, LLC**<br>**Six Months Ended<br> June 30, 2024** | **Alterra Owner, LLC**<br>**Six Months Ended<br> June 30, 2024** | **Avion Owner, LLC**<br>**Six Months Ended <br> June 30, 2024** |
| Total revenue | $1616247 | $3787660 | $5836648 |
| Total expenses | (1533377) | (2817289) | (4523380) |
| Interest and debt expenses | (452249) | (2998436) | (2812757) |
| Unrealized loss on interest rate swap | - | (188300) | (447545) |
| **Net income (loss)** | $**(369379)** | $**(2216365)** | $**(1947034)** |

---

**4.** **Fair Value of Financial Instruments** 

The Fund follows guidance in ASC 820, Fair Value Measurement, where fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. Fair value should be determined based on assumptions that market participants would use in pricing the asset or liability, not assumptions specific to the entity.

Fair value measurements are determined quarterly within a framework that establishes a three-tier hierarchy which classifies fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity.

Unobservable inputs are inputs that reflect the Fund's own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available. In accordance with the authoritative guidance on fair value measurements and disclosure under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value, as follows:

Level 1 – Quoted prices are available in active markets for identical investments as of the reporting date. The type of investments included in Level I are publicly-traded securities in an active market. The Fund does not adjust the quoted price for these investments (to the extent it holds them) even in situations where the Fund holds a large position, and a sale could reasonably impact the quoted price;

Level 2 – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. The types of investments that would generally be included in this category include publicly traded securities with restrictions on disposition, and certain convertible securities; and

Level 3 – Pricing inputs are unobservable and include situations where there is little, if any, market activity for the investment. Fair value for these investments is determined using valuation methodologies that consider a range of factors, including but not limited to, the price at which the investment was acquired, the nature of the investment, local market conditions, valuations for comparable companies, current and projected operating performance and financing transactions subsequent to the acquisition of the investment. The inputs into the determination of fair value require significant judgment. Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had a ready market for these investments existed. Investments that are included in this category generally are privately held debt, equity, and certain convertible securities.

The availability of observable inputs can vary from investment to investment and is affected by a wide variety of factors, including, for example, the type of investment, whether the investment is new and not yet established in the marketplace, the liquidity of markets and other characteristics particular to the investment. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Because of the inherent uncertainty of estimating fair value, those estimated values may be materially higher or lower than if the fair value was determined using observable inputs. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

An investment level within the fair value hierarchy is based on the lowest level input, individually or in the aggregate, that is significant to fair value measurement. The valuation techniques used by the Fund to measure fair value during the period ended June 30, 2025 and the year ended December 31, 2024 maximized the use of observable inputs and minimized the use of unobservable inputs. The inputs or methodologies used for valuing securities are not necessarily an indication of the risk or liquidity associated with investing in those securities.

The following tables presents the fair value measurement of investments by major class of investments as of June 30, 2025 and December 31, 2024 according to the fair value hierarchy:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
| **Investments at Value** | **Level 1 - Quoted<br> Prices** | **Level 2 - Significant<br> Observable Inputs** | **Level 3 - Significant<br> Unobservable Inputs** | **Total** |
| Investments in Real Estate | $— | $— | $21574072 | $21574072 |
| **Total** | $**—** | $**—** | $**21574072** | $**21574072** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| **Investments at Value** | **Level 1 - Quoted<br> Prices** | **Level 2 - Significant<br> Observable Inputs** | **Level 3 - Significant<br> Unobservable Inputs** | **Total** |
| Investments in Real Estate | $— | $— | $24488183 | $24488183 |
| **Total** | $**—** | $**—** | $**24488183** | $**24488183** |

---

The changes of fair value of investments for which the Fund has used Level 3 inputs to determine the fair value are as follows:

---

| | | |
|:---|:---|:---|
|  | **Investments in<br> Real Estate** | **Total** |
| **Balance as of January 1, 2025** | $24488183 | $24488183 |
| Accrued discount/premium |  |  |
| Realized gain/(loss) |  |  |
| Return of capital |  |  |
| Net change in unrealized appreciation/(depreciation) | (3038604) | (3038604) |
| Purchases | 80814 | 80814 |
| Sales proceeds and paydowns | (1175) | (1175) |
| Paid in kind interest | 44854 | 44854 |
| Transfers into Level 3 |  |  |
| Transfers out of Level 3 |  |  |
| **Balance as of June 30, 2025** | $**21574072** | $**21574072** |
| Net change in unrealized appreciation/(depreciation) attributable to Level 3 investments held at June 30, 2025 | $(3038604) | $(3038604) |

---

---

| | | |
|:---|:---|:---|
|  | **Investments in<br> Real Estate** | **Total** |
| **Balance as of January 1, 2024** | $35487706 | $35487706 |
| Accrued discount/premium |  |  |
| Realized gain/(loss) | (5000000) | (5000000) |
| Return of capital |  |  |
| Net change in unrealized appreciation/(depreciation) | (6405966) | (6405966) |
| Purchases | 326293 | 326293 |
| Sales proceeds and paydowns | (12867) | (12867) |
| Paid in kind interest | 93017 | 93017 |
| Transfers into Level 3 |  |  |
| Transfers out of Level 3 |  |  |
| **Balance as of December 31, 2024** | $**24488183** | $**24488183** |
| Net change in unrealized appreciation/(depreciation) attributable to Level 3 investments held at December 31, 2024 | $(6405966) | $(6405966) |

---

The following tables summarizes the significant unobservable inputs the Fund used to value its investments categorized within Level 3 as of June 30, 2025 and December 31, 2024. In addition to the techniques and inputs noted in the table below, according to the Fund's valuation policy, other valuation techniques and methodologies when determining the Fund's fair value measurements may be used. The below table is not intended to be all-inclusive, but rather provide information on the significant unobservable inputs as they relate to the Fund's determination of fair values.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** | **As of June 30, 2025** |
| **Asset Category** | **Fair Value** | **Valuation / <br> Techniques <br> / Methodologies** | **Unobservable Input** | **Range** | **Weighted Average<sup>(1)</sup>** |
| Investments at Fair Value | 21574072 | Income Approach | Discount Rate | 6.75% - 9.56% | 8.47% |
|  | $**21574072** |  |  |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| **Asset Category** | **Fair Value** | **Valuation /<br> Techniques <br> / Methodologies** | **Unobservable Input** | **Range** | **Weighted Average<sup>(1)</sup>** |
| Investments at Fair Value | 24888183 | Income Approach | Discount Rate | 6.75% - 9.88% | 8.29% |
|  | $**24888183** |  |  |  |  |

---

<sup>(1)</sup> The weighted average is calculated by multiplying the unobservable input by the weight of each investment over the sum of the fair value of the underlying investments.

The Fund utilized the income approach to determine the fair value of the Level 3 assets. The income approach is an analysis whereby expected cash flows of the investment are discounted to determine a present value using various inputs including a discount rate and an exit cap rate. Significant increases or decreases in the inputs would result in an increase or decrease in the fair value measurement.

**5.** **Capital Share Transactions** 

The Fund's shares are not currently listed on any securities exchange. To purchase shares, an account must be established using the online investment portal, which is accessible through www.yieldstreet.com and complete and execute a subscription agreement for a specific dollar amount equal to or greater than the then applicable minimum permitted subscription amount.

The Fund's shares are offered directly by the Fund, and the Fund has not retained an underwriter, dealer manager or broker dealer in connection with the offer and sale of the shares offered. The minimum permitted subscription amount will initially be $1,000 of the shares, although the Fund may waive or increase or decrease this minimum permitted subscription amount from time to time in the Fund's discretion.

Transactions in shares of common stock were as follows during the periods ended June 30, 2025 and December 31, 2024:

---

| | |
|:---|:---|
|  | **For the Period<br> Ended<br> June 30, 2025** |
| Common Shares outstanding - beginning of period | 3847720 |
| Common Shares issued in connection with the at-the-market offering |  |
| Common Shares issued as reinvestment dividends |  |
| Less Shares Redeemed | - |
| **Common Shares outstanding - end of period** | **3847720** |

---

---

| | |
|:---|:---|
|  | **For the Year Ended<br> December 31, <br> 2024** |
| Common Shares outstanding - beginning of period | 3955578 |
| Common Shares issued in connection with the at-the-market offering | 11144 |
| Common Shares issued as reinvestment dividends |  |
| Less Shares Redeemed | (119002) |
| **Common Shares outstanding - end of period** | **3847720** |

---

**6.** **Distributions** 

The Fund has adopted an "opt out" distribution reinvestment plan (the "Distribution Reinvestment Plan") pursuant to which shareholders will automatically have the full amount of any distributions declared in respect of their shares reinvested in additional shares, which shall entitle the holders of such shares to all of the same rights as shares purchased in this Offering, unless a shareholder elects to opt out participation in the Distribution Reinvestment Plan. Purchases of shares pursuant to the Distribution Reinvestment Plan are subject to the same restrictions on eligibility set forth in this Offering Circular.

Shareholders who elect not to participate in the Distribution Reinvestment Plan will automatically receive payment in cash or in kind, as applicable, of any distributions declared by the Manager. Shareholders who participate in the Distribution Reinvestment Plan are free to revoke participation in the Distribution Reinvestment Plan through the platform at any time. Such revocations typically take effect within two business days following the date of election. Additionally, the Manager may, at any time in its sole discretion, terminate or suspend the Distribution Reinvestment Plan in respect of all or a portion of the shareholders.

Distributions to common shareholders are recorded on the ex-dividend date. As of June 30, 2025, the Fund has not declared or paid any distributions.

**7.** **Related Party Arrangements** 

***Investment Advisory***

Under the operating agreement of the Fund, the Manager is entitled to a management fee (the "Management Fee"). The Management Fee is calculated at an annual rate of 1.5% of the average NAV of the Fund at the end of each of the two immediately preceding quarters. The Management Fee is payable quarterly in arrears. The Management Fee may be suspended, or waived, in whole or in part, in the sole discretion of the Manager. All or any portion of the Management Fee which is so deferred, suspended or waived will be deferred without interest and may be payable in any succeeding quarter as the Manager may determine in its sole discretion. For the periods ended June 30, 2025 and 2024, the Fund incurred management fees in the amount of $171,455 and $240,154, respectively.

***Other Operating Expenses***

The Fund will reimburse the Manager for out-of-pocket expenses paid by the Manager to third parties who provide services to the Fund, including without limitation the Transfer Agent and the Fund's independent accountants. Such reimbursements will not include the Manager's overhead, payroll, utilities, technology costs or similar expenses payable by the Manager in connection with its business operations. The Manager may, in its sole discretion, suspend or waive, in whole or in part, the reimbursement by the Fund of all or any portion of any such operating expenses incurred by the Manager on behalf of the Fund.

***Transfer of Investments***

The Fund, through a wholly owned subsidiary, entered into an amended and restated limited liability agreements with Avion JV, LLC on February 25, 2022, to transfer part of the interest from YS ITC REQ I LLC, an affiliate of the Fund, at fair value to the extent of $9,000,000; a corresponding YS WH2 LLC (which is owned and operated by YieldStreet Inc.) balance was also transferred and repaid in connection with this investment. The Fund is entitled to receive principal and distributions with respect to the transfer of its interest as prescribed in the limited liability agreements.

***Notes Payable on Short Term Borrowings***

The Fund executed a Loan and Security Agreement with YS ST Notes LLC (which is owned and operated by YieldStreet Inc.) dated March 15, 2022, in the amount of $20,000,000, maturing on December 31, 2028. Advances from the note were used to fund the purchase of the Fund's investments in real estate joint ventures. The advances were collateralized and pledged as a security interest for a portion of the Fund's investment in Real Estate Joint Ventures. Repayments are made as funds are received until all advances are paid in full. Interest is accrued at the rate of 10% per annum. As of June 30, 2025 and June 30, 2024, there were no outstanding notes payable.

**8.** **Risk Factors** 

In the normal course of business, the Fund invests in financial instruments and enters into financial transactions where risk of potential loss may exist from things such as changes in the market (market risk) or failure or inability of the other party to a transaction to perform (credit and counterparty risk). See below for a detailed description of select principal risks.

***Credit Risk***: Credit risk is the risk that one or more fixed income securities in our portfolio will decline in price or fail to pay interest or principal when due as a result of a decline in the financial status of the issuer of the security. Credit risk is increased when a portfolio security is downgraded or the perceived creditworthiness of the issuer deteriorates. To the extent that the Fund invests in below investment grade securities, the Fund will be exposed to a greater amount of credit risk than a fund that only invests in investment grade securities. In addition, to the extent the Fund uses credit derivatives, such use will expose the Fund to additional risk in the event that the bonds underlying the derivatives default and/or the counterparty fails to perform. The degree of credit risk depends on the issuer's financial condition and on the terms of the securities.

Although the Fund expects to invest in investments that are directly or indirectly secured by collateral, the Fund may be exposed to losses resulting from default and foreclosure of any such investments in which the Fund has invested. Therefore, the value of underlying collateral, the creditworthiness of borrowers and the priority of liens are each of great importance in determining the value of the investments. No guarantee can be made regarding the adequacy of the protection of our security in the investments in which the Fund invests. Moreover, in the event of foreclosure or default, the Fund may assume direct ownership of any assets collateralizing such defaulted investments where we are the lender of record. The liquidation proceeds upon the sale of such assets may not satisfy the entire outstanding balance of principal and interest on such investments, resulting in a loss. Any costs or delays involved in the effectuation of processing foreclosures or liquidation of the assets collateralizing such investments will further reduce proceeds associated therewith and, consequently, increase possible losses. In addition, no assurances can be made that borrowers or third parties will not assert claims in connection with foreclosure proceedings or otherwise, or that such claims will not interfere with the enforcement of our rights.

Investing involves the possibility of the Fund's investments being subject to potential losses arising from material is representation or omission on the part of borrowers or issuers whose investments the Fund holds, either directly or indirectly through participation agreements. The investments may also be subject to fraudulent behavior by an originator, a joint venture partner, manager or other service provider. Such inaccuracy or incompleteness of representations or fraudulent behavior may adversely affect the valuation of our investments and, in the case of investments, may adversely affect the ability of the relevant investment to perfect or effectuate a lien on the collateral securing the loan. The quality of the Fund's investments is subject to the accuracy of representations made by the underlying issuers. The Fund will rely upon the accuracy and completeness of representations made by borrowers, issuers, originators, other counterparties, joint venture partners, managers and other service providers and cannot guarantee that the Fund will detect occurrences of fraud. Under certain circumstances, payments by borrowers or issuers to the Fund may be reclaimed if any such payment is later determined to have been a fraudulent conveyance or a preferential distribution.

***Concentration Risk***: To the extent that Fund's portfolio is concentrated in the securities of issuers in a particular market, industry, group of industries, sector or asset class, the fund may be adversely affected by the performance of those securities, may be subject to increased price volatility and may be more vulnerable to adverse economic, market, political or regulatory occurrences affecting that market, industry, group of industries, sector or asset class.

***Liquidity Risk***: The Fund may be unable to sell certain securities, such as illiquid securities, readily at a favorable time or price, or the Fund may have to sell them at a loss.

***Market Risk***: Financial markets rise and fall in response to a variety of factors, sometimes rapidly and unpredictably. Markets may be impacted by economic, political, regulatory, and other conditions, including economic sanctions and other government actions. In addition, the occurrence of global events, such as war, terrorism, environmental disasters, natural disasters and epidemics, may also negatively affect the financial markets. As with any investment whose performance is tied to these markets, the value of an investment in a fund will fluctuate, which means that an investor could lose money over short or long periods.

***Risks Related to the Fund's REIT Status:*** The Fund expects to operate so as to qualify as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"). However, qualification as a REIT involves the application of highly technical and complex Code provisions for which only a limited number of judicial or administrative interpretations exist. Notwithstanding the availability of cure provisions in the Code, various compliance requirements could be failed and could jeopardize the Fund's REIT status.

***Illiquid Investment Risk***: Many of the Fund's investments are illiquid, including the Fund's private commercial real estate investments. A variety of factors could make it difficult for the Fund to dispose of any of its illiquid assets on acceptable terms even if a disposition is in the best interests of the Fund's stockholders. The Fund cannot predict whether it will be able to sell any asset for the price or on the terms set by it or whether any price or other terms offered by a prospective purchaser would be acceptable to the Fund. The Fund also cannot predict the length of time needed to find a willing purchaser and to close the sale of an asset. The Fund may be required to expend cash to correct defects or to make improvements before an asset can be sold, and there can be no assurance that it will have cash available to correct those defects or to make those improvements. As a result, the Fund's ability to sell investments in response to changes in economic and other conditions could be limited. Limitations on the Fund's ability to respond to adverse changes in the performance of its investments may have a material adverse effect on the Fund's business, financial condition and results of operations and the Fund's ability to make distributions.

***Wind Down and Negative Distribution Risk***: Management is in the process of winding down the Fund and liquidating its assets. While we continue to actively manage the remaining assets of the fund, we may not be able to sell its assets on terms or at prices we deem favorable and the return to investors may be substantially lower than the current NAV. Moreover, selling commercial real estate takes time, and in the industry's current environment, we may not be able to wait for the best offer or price we might be able to otherwise obtain had more favorable market conditions prevailed. This may negatively affect the return on investment for our Shares. As a result, the distributed value of our Shares is expected to be lower than the price paid by our investors, resulting in a loss and negative return.

**9.** **Commitments and Contingencies** 

In the normal course of business, the Fund enters into contracts that contain a variety of indemnification provisions. The Fund's maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty. The Fund is unable to estimate any potential future payment amounts and expects the risk of any such loss to be remote, accordingly no accrual has been made for a liability as of June 30, 2025 and 2024.

**10.** **Subsequent Events** 

The Manager has evaluated subsequent events through September 29, 2025, the date these consolidated financial statements were available to be issued and has determined that there are no subsequent events, other than those disclosed below, that require adjustment to, or disclosure in, the financial statements.

**Item 4. Exhibits**

**INDEX OF EXHIBITS**

---

| | |
|:---|:---|
| **Exhibit<br> No.** | **Description** |
| [2.1\*](https://www.sec.gov/Archives/edgar/data/1878614/000110465921150558/tm2125166d2_ex2-1.htm) | [Certificate of Formation](https://www.sec.gov/Archives/edgar/data/1878614/000110465921150558/tm2125166d2_ex2-1.htm) |
| [2.2\*](https://www.sec.gov/Archives/edgar/data/1878614/000110465921150558/tm2125166d2_ex2-2.htm) | [Operating Agreement](https://www.sec.gov/Archives/edgar/data/1878614/000110465921150558/tm2125166d2_ex2-2.htm) |
| [4.1\*](https://www.sec.gov/Archives/edgar/data/1878614/000110465921150558/tm2125166d2_ex4-1.htm) | [Form of Subscription Agreement](https://www.sec.gov/Archives/edgar/data/1878614/000110465921150558/tm2125166d2_ex4-1.htm) |
| [99.1](tm2527051d1_ex99-1.htm) | [Financial Statements of Significant Subsidiaries](tm2527051d1_ex99-1.htm) |
| [99.2](tm2527051d1_ex99-2.htm) | [Financial Statements of Significant Subsidiaries](tm2527051d1_ex99-2.htm) |
| [99.3](tm2527051d1_ex99-3.htm) | [Financial Statements of Significant Subsidiaries](tm2527051d1_ex99-3.htm) |

---

\* Filed previously

**SIGNATURES**

Pursuant to the requirements of Regulation A, the issuer has duly caused this Semiannual Report to be signed on its behalf by the undersigned, thereunto duly authorized, in New York, NY on September 29, 2025.

---

| | |
|:---|:---|
| **YS RE RAF I LLC** | **YS RE RAF I LLC** |
| By: | /s/ Mitchell Rosen |
|  | Name: Mitchell Rosen |
|  | Title: Chief Executive Officer |

---

Pursuant to the requirements of Regulation A, this Semiannual Report has been signed below by the following persons on behalf of the issuer in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ Mitchell Rosen | Chief Executive Officer of | September 29, 2025 |
| Mitchell Rosen | YS RE RAF I LLC<br> (Principal Executive Officer) |  |
| /s/ Stephen Ferrara | Chief Financial Officer | September 29, 2025 |
| Stephen Ferrara | YS RE RAF I LLC<br> (Principal Financial Officer and<br> Principal Accounting Officer) |  |

---

## Add

**Exhibit 99.1**

**NORFOLK COMMERCE SPE, LLC**

**\* \* \* \* \***

**FINANCIAL STATEMENTS (UNAUDITED)**

**AS OF JUNE 30, 2025 AND DECEMBER 31, 2024**

**AND FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024**

**NORFOLK COMMERCE SPE, LLC**

**AS OF JUNE 30, 2025 AND DECEMBER 31, 2024**

**AND FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024**

**TABLE OF CONTENTS**

------

---

| | |
|:---|:---|
|  | Page(s) |
| **Financial Statements (Unaudited)** |  |
| Statements of Financial Condition | 3 |
| Statements of Operations | 4 |
| Statements of Changes in Members' Equity | 5 |
| Statements of Cash Flows | 6 |
| Notes to Financial Statements | 7-11 |

---

<u>**NORFOLK COMMERCE SPE, LLC**</u>

<u>**STATEMENTS OF FINANCIAL CONDITION**</u>

<u>**JUNE 30, 2025 AND DECEMBER 31, 2024**</u>

<u>ASSETS</u>

---

| | | |
|:---|:---|:---|
|  | June 30, 2025 | December 31, 2024 |
| **Real estate property:** |  |  |
| &nbsp;&nbsp;&nbsp;Land | $5235000 | $5235000 |
| &nbsp;&nbsp;&nbsp;Building and improvements | 26791906 | 26791906 |
| &nbsp;&nbsp;&nbsp;Tenant improvements | 1564269 | 858297 |
| &nbsp;&nbsp;&nbsp;Equipment | 2881644 | 2881644 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total real estate property** | 36472819 | 35766847 |
| &nbsp;&nbsp;&nbsp;Less: accumulated depreciation and amortization | (4697804) | (3918402) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net real estate property** | 31775015 | 31848445 |
| Cash and cash equivalents | 432518 | 1269477 |
| Restricted cash | 119110 | 58402 |
| Accounts receivable - tenants | 53976 | 48598 |
| Prepaid expenses and other assets | 11720 | 30781 |
| Deferred rent | 473864 | 234109 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $32866203 | $33489812 |

---

<u>LIABILITIES AND MEMBERS' EQUITY</u>

---

| | | |
|:---|:---|:---|
| **Liabilities:** | | |
| &nbsp;&nbsp;&nbsp;Mortgage payable, net of debt issuance costs of $121,667 and $155,620, respectively | $22742229 | $22756380 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 47156 | 140583 |
| &nbsp;&nbsp;&nbsp;Security deposits - tenants | 179110 | 179110 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 102586 | 102235 |
| &nbsp;&nbsp;&nbsp;Due to related party | 1500 | 1500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 23072581 | 23179808 |
| **Commitments and contingencies (Note 8)** |  |  |
| **Members' equity** | 9793622 | 10310004 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and members' equity** | $32866203 | $33489812 |

---

*See notes to financial statements.*

<u>**NORFOLK COMMERCE SPE, LLC**</u>

<u>**STATEMENTS OF OPERATIONS**</u>

<u>**FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024**</u>

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| **Revenue:** |  |  |
| &nbsp;&nbsp;&nbsp;Rental income | $1909513 | $1616247 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total revenue** | 1909513 | 1616247 |
| **Expenses:** |  |  |
| &nbsp;&nbsp;&nbsp;Operating expenses | 320210 | 297570 |
| &nbsp;&nbsp;&nbsp;General and administrative expenses | 535205 | 261888 |
| &nbsp;&nbsp;&nbsp;Property taxes | 204693 | 210578 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 779403 | 763341 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total operating expenses** | 1839511 | 1533377 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Operating income** | 70002 | 82870 |
| **Other income (expenses):** |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | 14629 | 16078 |
| &nbsp;&nbsp;&nbsp;Interest and debt expenses | (601013) | (468327) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Loss before income taxes** | (516382) | (369379) |
| Income taxes | - | - |
| &nbsp;&nbsp;&nbsp;**Net loss** | $(516382) | $(369379) |

---

*See notes to financial statements.*

**<u>NORFOLK COMMERCE SPE, LLC</u>**

<u>**STATEMENTS OF CHANGES IN MEMBERS' EQUITY**</u>

<u>**FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024**</u>

---

| | | | |
|:---|:---|:---|:---|
|  | Managing Member | Members | Total |
| **Members' equity, January 1, 2024** | $1152051 | $10368455 | $11520506 |
| &nbsp;&nbsp;&nbsp;Capital contributions |  |  |  |
| &nbsp;&nbsp;&nbsp;Capital distributions | (21206) | (190852) | (212058) |
| &nbsp;&nbsp;&nbsp;Net loss | (36938) | (332441) | (369379) |
| **Members' equity, June 30, 2024** | $1093907 | $9845162 | $10939069 |
| **Members' equity, January 1, 2025** | $1031001 | $9279003 | $10310004 |
| &nbsp;&nbsp;&nbsp;Capital contributions |  |  |  |
| &nbsp;&nbsp;&nbsp;Capital distributions |  |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | (51638) | (464744) | (516382) |
| **Members' equity, June 30, 2025** | $979363 | $8814259 | $9793622 |

---

*See notes to financial statements.*

**<u>NORFOLK COMMERCE SPE, LLC</u>**

**<u>STATEMENTS OF CASH FLOWS</u>**

**<u>FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024</u>**

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(516382) | $(369379) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 779403 | 763341 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt issuance costs | 33953 | 33954 |
| &nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable - tenants | (5378) | 12469 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 19060 | (25129) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred rent | (239755) | (64449) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (93427) | (3978) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Security deposits - tenants |  | (16815) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 351 | 10462 |
| Net cash provided by (used in) operating activities | (22175) | 340476 |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of fixed assets | (705972) | (649651) |
| Net cash used in investing activities | (705972) | (649651) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Repayments of mortgage | (48104) |  |
| &nbsp;&nbsp;&nbsp;Capital distributions | - | (212058) |
| Net cash used in financing activities | (48104) | (212058) |
| **Net decrease in cash, cash equivalents and restricted cash** | **(776251)** | **(521233)** |
| Cash, cash equivalents and restricted cash, beginning of year | 1327879 | 1869851 |
| **Cash, cash equivalents and restricted cash, end of period** | $**551628** | $**1348618** |
| **Cash, cash equivalents and restricted cash reported in the statements of financial condition:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $432518 | $1291124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 119110 | 57494 |
| **Total cash, cash equivalents and restricted cash reported in the statements of financial condition** | $**551628** | $**1348618** |
| **Supplemental information:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $567059 | $436760 |

---

*See notes to financial statements.*

<u>**NORFOLK COMMERCE SPE, LLC**</u>

<u>**NOTES TO FINANCIAL STATEMENTS**</u>

<u>**AS OF JUNE 30, 2025 AND DECEMBER 31, 2024**</u>

<u>**AND FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024**</u>

**1)** **ORGANIZATION AND NATURE OF BUSINESS:**

Norfolk Commerce SPE, LLC (the Company) was formed as a limited liability company in Delaware on March 9, 2022. Shortly after, on April 14, 2022, the Company acquired three commercial buildings (the Properties) in Norfolk, Virginia, through three wholly owned subsidiaries. The Properties were constructed between 1983 and 1990 and provide a total of 262,000 square feet: 203,000 square feet dedicated to office space and 59,000 square feet for warehouse use. The Company is aiming to lease out a significant portion of the currently unoccupied space within the Properties. The Properties are managed by Heritage Capital Management LLC, an affiliated management company (Note 5).

**2)** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>**Basis of Presentation**</u> - The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingencies, if any, at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>**Cash and Cash Equivalents**</u> - The Company considers all highly liquid, short- term investments with an original maturity of three months or less at the time of purchase to be cash equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>**Accounts Receivable - Tenants**</u> - In accordance with Accounting Standards Codification (ASC) 326, *Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments*, the Company provides an estimate of credit losses for the remaining life of a financial asset using historical data, current conditions, and reasonable supportable forecasts. It generally applies to financial assets measured at amortized cost, including trade receivables. Such assets are presented at the net amount expected to be collected by using an allowance for credit losses.

Management considers the following factors when determining the collectability of customer accounts: customer creditworthiness, transaction history, industry trends, and changes in payment terms. Balances due over 90 days and other high-risk amounts are reviewed for collectability. If the financial condition of the Company's customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be made. The Company provides for estimated uncollectible amounts through a charge to earnings and a credit to a valuation allowance. Balances remaining after the Company has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>**Revenue Recognition**</u> - Rental revenue includes base rents as well as certain tenant reimbursements (such as property taxes and maintenance costs). In accordance with ASC 842, *Leases*, base rental revenue is recognized on a straight-line basis over lease terms (Note 7). Reimbursement revenue is recognized in the same period as the expenses are incurred. Advanced rent is classified as deferred revenue on the statement of financial condition, until it is earned over the lease term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>**Depreciation and Amortization**</u> - Land, building and improvements, and equipment (Rental Properties) are carried at cost, net of accumulated depreciation. Expenditures for maintenance and repairs are charged to expense as incurred. Expenditures for major additions and improvements are capitalized. Depreciation is computed on the straight-line method at rates adequate to allocate the cost of the assets over their expected useful lives, which ranges from 5 to 39 years. Tenant improvements are amortized over the shorter of the lease term or their expected useful life.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) <u>**Impairment of Rental Properties**</u> - In accordance with ASC 360, *Impairment or Disposal of Long-Lived Assets,* rental properties are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the aggregate projected future cash flows over the anticipated holding period on an undiscounted basis. An impairment loss is measured based on the excess of the rental property's carrying amount over its undiscounted cash flows and the terminal value. Impairment analyses are based on current plans, intended holding periods and available market information at the time the analyses are prepared. If our estimates of the projected future cash flows, anticipated holding periods, or market conditions change, our evaluation of impairment losses may be different and such differences could be material to the financial statements. The evaluation of anticipated cash flows is subjective and is based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results. Plans to hold properties over longer periods decrease the likelihood of recording impairment losses. Based on such assessment, no impairments of the Properties were identified for the six months ended June 30, 2025 and 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) <u>**Debt Issuance Costs**</u> - Debt issuance costs related to the mortgage payable consist of fees and direct costs incurred in obtaining such financing. These costs are presented as a reduction of mortgage payable liability and are amortized over the term of the loan agreement (Note 4). The amortization is presented as a component of interest and debt expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) <u>**Income Taxes**</u> - The Company operates as a limited liability company and is taxed as a partnership. As such, the Company is not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its members on their respective income tax returns. Accordingly, these financial statements do not reflect a provision for federal and state income taxes. The Company files information returns as required with the Internal Revenue Service and other taxing authorities. The Company files federal and state partnership tax returns which generally remain open to examination by taxing authorities for a period of three years.

The Company follows the guidance in ASC 740, *Income Taxes* which prescribes a comprehensive model for recognizing, measuring, presenting, and disclosing in the financial statements uncertain tax positions that the Company has taken or expects to take in its income tax returns. Management believes that it has appropriate support for the positions taken on the Company's tax returns.

**3)** **RESTRICTED CASH:**

Restricted cash includes utility and escrow deposits. Per the mortgage agreement (Note 4), an escrow account held by the lender collects funds for property taxes, insurance, and various reserves (replacement, repairs, interest).

**4)** **MORTGAGE PAYABLE:**

On April 14, 2022, the Company obtained a $22,912,000 mortgage from Eagle Bank to purchase the Properties. The loan was secured by the Properties and was to mature on April 14, 2027. The mortgage was interest-only until April 14, 2025, and required monthly payments of principal and interest until the maturity date with the remaining principal balance due at maturity. The interest rate was fixed at 3.75% until April 14, 2025, at which point it became variable, based on the Month Term Secured Overnight Financing Rate (SOFR) plus a 3.5% margin. Interest expense for the six months ended June 30, 2025 and 2024 were $567,059 and $468,327, respectively. The Company was in compliance with all the covenants.

In July 2025, subsequent to the date of these financial statements, the Company entered into a $24,000,000 loan from the RGA Reinsurance Company (RGA) and repaid the loan from Eagle Bank. The new loan bears annual interest at a fixed rate of 6.17%. Monthly interest-only payments are required from September 2025 through August 2028. From September 2028 through July 2032, monthly payments of principal and interest are due in the amount of $146,526. The remaining balance is due in full on August 1, 2032, the loan's maturity date.

**5)** **RELATED PARTY TRANSACTIONS:**

The Company has entered the following transactions with related parties for the six months ended June 30, 2025 and 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Related party** | **Nature of<br> relationship** | &nbsp;&nbsp;**Description of service** | **Computation<br> mechanism** | **2025 <br> Amount** | **2024 <br> Amount** |
| 1 | Heritage<br> Norfolk, LLC | Managing <br> member | &nbsp;&nbsp;Asset Management fee is included in General and Administrative expenses | 1% of rental<br> receipts of the<br> property | $16647 | $14557 |
| 2 | Heritage Capital<br> Management <br> LLC | Affiliate/<br> Property<br> Manager | &nbsp;&nbsp;Property Management fee is included in General and Administrative expenses | 3% of rental <br> receipts of the<br> property | $49942 | $46638 |

---

**6)** **CONCENTRATIONS OF RISK:**

The Company maintains its cash balances at various financial institutions. At June 30, 2024, the balances were in excess of the Federal Deposit Insurance Corporation (FDIC) insurance limits.

**7)** **LEASE AGREEMENTS:**

As of June 30, 2025, the Company held 26 non-cancellable operating leases, which expire on various dates from August 2025 through May 2035, and provide for monthly payments plus reimbursements of certain operating costs.

In accordance with ASC 842, *Leases*, total expected rental income is recognized over the lease terms on a straight-line basis. At June 30, 2025 and December 31, 2024, the deferred rent asset of $473,864 and $234,109, respectively, represent the excess of recognized rental income over actual rent collected.

The following is a summary of minimum future base rentals under the non-cancellable operating leases as of June 30, 2025:

---

| | |
|:---|:---|
| 12-Month Period<br> Ending June 30, | Amount |
| 2026 | $3010963 |
| 2027 | 2388118 |
| 2028 | 2247980 |
| 2029 | 2138241 |
| 2030 | 1602162 |
| Thereafter | 2947481 |
| Total | $14334945 |

---

The following is a summary of minimum future base rentals under the non-cancellable operating leases as of June 30, 2024:

---

| | |
|:---|:---|
| 12-Month Period<br> Ending June 30, | Amount |
| 2025 | $2733041 |
| 2026 | 2007018 |
| 2027 | 1466340 |
| 2028 | 1233180 |
| 2029 | 1210610 |
| Thereafter | 2334910 |
| Total | $10985099 |

---

The preceding minimum future rentals do not include other charges for reimbursement of operating costs.

**8)** **COMMITMENTS AND CONTINGENCIES:**

The Company has commercial general liability coverage on the Properties, with limits of liability customary within the industry. The Company believes the coverage is adequate given the relative risk of loss and the cost of the coverage.

**9)** **MEMBERS' EQUITY:**

<u>**Capital Contribution and Withdrawals**</u> - Each member of the company has contributed capital to the Company and thereafter may make additional capital contributions to the Company in accordance with the terms of the limited liability agreement. Without limitation, no member shall, upon dissolution of the Company or otherwise, be required to restore any deficit in such member's capital account. No member shall be entitled to withdraw from the Company.

<u>**Profit and Loss Sharing**</u> - At least quarterly, or otherwise at such other times as the Manager determines with Yieldstreet's approval, all available cash shall be distributed to the members in accordance with the limited liability company agreement. Allocations of profits or losses are allocated among the members in a manner such that the capital account of each member, immediately after making such allocation, is, as nearly as possible, equal to the distributions that would be made to such member if the Company were dissolved, its affairs wound up and its assets sold for cash equal to their gross asset value, all company liabilities were satisfied (limited with respect to each nonrecourse liability to the adjusted gross asset value of the asset securing such liability), and the net assets of the company were distributed to the members immediately after making such allocation; provided, however, that in calculating such target capital account amounts there shall be added back to each member's capital account its share of partnership minimum gain, if any, and partner nonrecourse debt minimum gain, if any.

**10)** **SUBSEQUENT EVENTS:**

The Company has evaluated subsequent events through September 11, 2025, the date these financial statements were available to be issued and has determined that there are no subsequent events other than the refinancing of the mortgage (Note 4).

## Add

**Exhibit 99.2**

**ALTERRA OWNER, LLC**

**FINANCIAL STATEMENTS**

**FOR THE SIX MONTHS ENDED JUNE 30, 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(UNAUDITED)**

**ALTERRA OWNER, LLC**

**FOR THE SIX MONTHS ENDED JUNE 30, 2025**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page(s)** |
| **FINANCIAL STATEMENTS (UNAUDITED)** |  |
| Statements of Financial Condition | 1 |
| Statements of Operations | 2 |
| Statements of Changes in Members' Equity | 3 |
| Statements of Cash Flows | 4 |
| Notes to Financial Statements | 5-9 |

---

**Alterra Owner, LLC**

**STATEMENTS OF FINANCIAL CONDITION**

**AS OF JUNE 30, 2025, AND DECEMBER 31, 2024**

(Amounts in U.S. Dollars)

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025<br> (Unaudited)** | **December 31, 2024** |
| **ASSETS** | | |
| &nbsp;&nbsp;&nbsp;Real estate property, net of accumulated depreciation of $9,965,394 and $8,493,535, respectively | $72449622 | $73921481 |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | 718856 | 521995 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 567061 | 744224 |
| &nbsp;&nbsp;&nbsp;Interest rate swap asset |  | 369672 |
| &nbsp;&nbsp;&nbsp;Other assets | 106104 | 53379 |
| **TOTAL ASSETS** | $**73841643** | $**75610751** |
| **LIABILITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Notes and mortgage payable | $64000000 | $64000000 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 1142196 | 511940 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 276014 | 220511 |
| &nbsp;&nbsp;&nbsp;Property tax payable | 125000 | 114509 |
| &nbsp;&nbsp;&nbsp;Due to affiliates | 85000 | 85000 |
| **TOTAL LIABILITIES** | $**65628210** | $**64931960** |
| **MEMBERS' EQUITY** | **8213433** | **10678791** |
| **TOTAL LIABILITIES AND MEMBERS' EQUITY** | $**73841643** | $**75610751** |

---

***See notes to financial statements***

**Alterra Owner, LLC**

**STATEMENTS OF OPERATIONS**

**FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (Unaudited)**

(Amounts in U.S. Dollars)

---

| | | |
|:---|:---|:---|
|  | **For the <br> Six Months Ended<br> June 30, 2025** | **For the<br> Six Months Ended<br> June 30, 2024** |
| **INCOME** | | |
| Rental revenue | $2372851 | $2391065 |
| Other operating revenue | 151588 | 184950 |
| Tenants reimbursement | 177491 | 134335 |
| Interest income | 761373 | 1077310 |
| **TOTAL INCOME** | **3463303** | **3787660** |
| **EXPENSES** |  |  |
| General and administrative expenses | 217468 | 200584 |
| Operating expenses | 724619 | 710988 |
| Depreciation and amortization | 1471859 | 1471853 |
| Property taxes | 129431 | 122328 |
| Renovation expenses | 124543 | 311536 |
| **TOTAL EXPENSES** | **2667920** | **2817289** |
| **Operating Income** | **795383** | **970371** |
| Interest and debt expense | (2891069) | (2998436) |
| Unrealized gain/(loss) on interest rate swap |  | (188300) |
| Realized gain/(loss) on interest rate swap | (369672) | - |
| Total Other Income (Expenses) | **(3260741)** | **(3186736)** |
| **Net loss before income taxes** | **(2465358)** | **(2216365)** |
| Income taxes | **-** |  |
| **NET LOSS** | $**(2465358)** | $**(2216365)** |

---

***See notes to financial statements***

**Alterra Owner, LLC**

**FOR THE SIX MONTHS ENDED JUNE 30, 2025 (Unaudited) AND FOR THE YEAR ENDED DECEMBER 31, 2024**

**STATEMENTS OF CHANGES IN MEMBERS' EQUITY**

(Amounts in U.S. Dollars)

---

| | | | |
|:---|:---|:---|:---|
|  | **Managing Member** | **Member** | **Total** |
| **BALANCE, JANUARY 1, 2024** | $1649744 | $14400504 | $16050248 |
| Capital Contributions |  |  |  |
| Capital Distributions |  |  |  |
| Pro-rata allocation of net loss | (552112) | (4819345) | (5371457) |
| **BALANCE, DECEMBER 31, 2024** | $**1097632** | $**9.581159** | $**10678791** |
| Capital Contributions |  |  |  |
| Capital Distributions |  |  |  |
| Pro-rata allocation of net loss | (235405) | (2211953) | (2465358) |
| **BALANCE, JUNE 30, 2025** | $**844227** | $**7369206** | $**8213433** |

---

***See notes to financial statements***

**Alterra Owner, LLC.**

**STATEMENTS OF CASH FLOWS**

**FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND THE YEAR ENDED DECEMBER 31, 2024**

(Amounts in U.S. Dollars)

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended <br> June 30, 2025 (Unaudited)** | **For the Year Ended** <br> **December 31, 2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(2465358) | $(5371457) |
| **Adjustments to reconcile net loss to net cash provided by (used in) operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization expenses | 1471859 | 2943718 |
| &nbsp;&nbsp;&nbsp;Unrealized (gain)/loss on interest rate swap assets |  | 1404613 |
| &nbsp;&nbsp;&nbsp;Realized (gain)/loss on interest rate swap assets | 369672 |  |
| &nbsp;&nbsp;&nbsp;**Change in operating assets and liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Other assets | (52725) | 150635 |
| &nbsp;&nbsp;&nbsp;Amortization of deferred financing costs |  | 315315 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 630256 | (319530) |
| &nbsp;&nbsp;&nbsp;Property taxes | 10491 | 2267 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 55503 | (112874) |
| **Net cash provided by (used in) operating activities** | **19698** | **(987313)** |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Costs incurred for building improvements | - | (10453) |
| **Net cash used in investing activities** | **-** | **(10453)** |
| **Net increase (decrease) in Cash and cash equivalents and Restricted cash** | **19698** | **(997766)** |
| **Cash and cash equivalents and Restricted cash at the beginning of the period** | **1266219** | **2263985** |
| **Cash and cash equivalents and Restricted cash at the end of the period** | **1285917** | **1266219** |
| **Cash and restricted cash reported in the statement of financial condition:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash | 718856 | 521995 |
| &nbsp;&nbsp;&nbsp;Restricted Cash | 567061 | 744224 |
| **Total cash and restricted cash reported in the statement of cash flows:** | $**1285917** | $**1266219** |
| **SUPPLEMENTAL INFORMATION** |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $2346585 | $5619778 |

---

***See notes to the financial statements***

**ALTERRA OWNER, LLC**

**(A Delaware Limited Liability Company)**

**NOTES TO FINANCIAL STATEMENTS**

**For the Six Months Ended June 30, 2025**

**(Unaudited)**

**1.** **Organization** 

Alterra Owner, LLC (A Delaware Limited Liability Company), (the "Company"), was formed on March 4, 2022. The joint venture was formed by Yieldstreet and InterCapital Group (Sponsor or GP), a full-service, vertically integrated investment firm with property and construction management services provided by its affiliate, Dayrise Residential ("Dayrise"), to acquire Alterra Apartments in Tuscon, AZ. Alterra Apartments is a 416-unit, Class-B apartment complex built in 1987. Amenities at the property include outdoor pool, playground, fitness center, dog park, soccer field, etc. Yieldstreet and Sponsor acquired the property with the business plan to perform renovations to unit interiors and common areas to garner rental premiums, ultimately increasing net investment income at the property.

**2.** **Basis of Presentation and Significant Accounting Policies** 

*Basis of Presentation*

The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the reporting periods and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

*Rental Property*

Rental property is carried at cost, net of accumulated depreciation and amortization. Betterments, major renovations and certain costs directly related to the improvement of rental property are capitalized. Maintenance and repair expenses are charged to expense as incurred. Tenant improvements are amortized on a straight-line basis over the lives of the related properties, which approximate the useful lives of the assets.

Depreciation is recognized using straight-line method for financial reporting purposes at the end of the year or period.

---

| | | | |
|:---|:---|:---|:---|
| | | **June 30, 2025** | **December 31, 2024** |
| **Description** | **Description** | Alterra Apartments, a 416-unit, Class- B multifamily property located in Tucson, AZ | Alterra Apartments, a 416-unit, Class- B multifamily property located in Tucson, AZ |
| **Date of Construction** | **Date of Construction** | 1987 | 1987 |
| **Date Acquired** | **Date Acquired** | 02/2022 | 02/2022 |
| **Life on which depreciation in income statement is computed** | **Life on which depreciation in income statement is computed** | 5 to 30 years | 5 to 30 years |
| **Encumbrances** |  | 82415016 | 82415016 |
| **Gross amount at which carried in the statement of financial condition** | **Land** | 9131429 | 9131429 |
| **Gross amount at which carried in the statement of financial condition** | **Buildings and Improvements** | 73283587 | 73283587 |
| **Gross amount at which carried in the statement of financial condition** | **Total** | 82415016 | 82415016 |
| **Accumulated depreciation and amortization** | **Accumulated depreciation and amortization** | (9965394) | (8493535) |

---

Rental property is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the aggregate projected future cash flows over the anticipated holding period on an undiscounted basis. An impairment loss is measured based on the excess of the rental property's carrying amount over its Undiscounted Cash Flows and the Terminal Value. Impairment analyses are based on current plans, intended holding periods and available market information at the time the analyses are prepared. If our estimates of the projected future cash flows, anticipated holding periods, or market conditions change, our evaluation of impairment losses may be different and such differences could be material to the financial statements. The evaluation of anticipated cash flows is subjective and is based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results. Plans to hold properties over longer periods decrease the likelihood of recording impairment losses.

**ALTERRA OWNER, LLC**

**(A Delaware Limited Liability Company)**

**NOTES TO FINANCIAL STATEMENTS**

**For the Six Months Ended June 30, 2025**

**(Unaudited)**

*Cash and Cash Equivalents*

Cash and cash equivalents include cash and highly liquid investments purchased with an original maturity of three months or less. The carrying amount of these investments approximates fair value. The Company held cash in the amount of $718,856 and $521,995 as of June 30, 2025 and December 31, 2024 respectively.

*Restricted Cash*

The restricted cash includes balances in escrow accounts maintained with mortgage lender for the purpose of tax payments, insurance payments, replacement reserve, repairs reserve and interest reserve pursuant to the mortgage loan agreement. The Company held restricted cash in the amount of $567,061 and $744,224 as of June 30, 2025, and December 31, 2024 respectively.

*Allowance for Doubtful Accounts*

We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of tenants to make required payments under the lease agreements. Management exercises judgment in establishing these allowances and considers payment history and current credit status in developing these estimates.

*Derivative Instruments and Hedging Activities*

The Company managed market risk on its variable rate debt by entering an interest rate swap to fix the rate on debt for varying periods through maturity. These interest rate swaps are accounted for as derivative instruments and, pursuant to ASC Topic 815, Derivatives and Hedging are recorded on the balance sheets at fair value. The company's swap is not designated as hedge, therefore changes in the fair value are recognized in earnings.

*Deferred Financing Costs Related to Mortgage Note Payable*

Deferred financing costs related to mortgage note payable consists of fees and direct costs incurred in obtaining such financing. These costs are presented as a reduction of our mortgage note payable liability and are amortized over the terms of the loan agreement as a component of "interest and debt expense".

*Allowance for Credit Losses*

We maintain allowances for credit losses. These allowances reflect our estimate of the amount of our receivables that we will be unable to collect based on historical write-off experience and, as applicable, current conditions and reasonable and supportable forecasts that affect collectability. Our estimate could require change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase or decrease our allowances.

*Rental Income*

The Company leases multi-family apartment units to tenants through operating leases expiring over the next 12 months. The leases require fixed minimum monthly payments over the terms of the lease and charges for ancillary services provided by the property. Rental revenue includes base rents that each tenant pays in accordance with the terms of its respective lease and is reported on a straight-line basis over the non-cancellable term of the lease.

*Tenant Reimbursement Income*

Tenant reimbursement income includes revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses, such as electricity, water, pet, trash, and monthly statement fees of the property. This revenue is earned in the same period as the expenses are incurred.

**ALTERRA OWNER, LLC**

**(A Delaware Limited Liability Company)**

**NOTES TO FINANCIAL STATEMENTS**

**For the Six Months Ended June 30, 2025**

**(Unaudited)**

*Income Taxes*

The Company operates as a limited liability company and is taxed as a partnership. As such, the Company is not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns. The Company is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these financial statements do not reflect a provision for federal and state income taxes.

The Company follows the guidance in the Financial Accounting Standards Board Accounting Standards Codification topic related to Uncertainty in Income Taxes which prescribes a comprehensive model for recognizing, measuring, presenting, and disclosing in the financial statements uncertain tax positions that the Company has taken or expects to take in its income tax returns. Management believes that it has appropriate support for the positions taken on the Company's tax returns.

**3.** **Related Party Transactions** 

The Company has entered the following transactions with related parties for the period ended June 30, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Serial <br> No.** | **Related party name** | **Nature of<br> relationship** | **Description of service** | **Computation <br> Mechanism** | **Amount ($)** |
| 1 | Dayrise residential, LLC ("Dayrise")<br> (InterCapital Partners) | Affiliate/Property Manager | Property management fee; included in "operating expenses" | 2.5% of Gross income from operations, maximum limit of 3% | 82280 |
| 2 | InterCapital Partners | Member/Managing Member | Asset management fee; included in "operating expenses" | 1% of total revenue | 25944 |

---

The Company has entered the following transactions with related parties for the period ended June 30, 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Serial <br> No.** | **Related party name** | **Nature of<br> relationship** | **Description of service** | **Computation <br> Mechanism** | **Amount ($)** |
| 1 | Dayrise residential, LLC ("Dayrise")<br> (InterCapital Partners) | Affiliate/Property Manager | Property management fee; included in "operating expenses" | 2.5% of Gross income from operations, maximum limit of 3% | 67892 |
| 2 | InterCapital Partners | Member/Managing Member | Asset management fee; included in "operating expenses" | 1% of total revenue | 27240 |

---

Additionally, per the management agreement, Dayrise performs construction management services with respect to capital improvements and/or repairs or casualty/insurance repairs at the property. Dayrise will be paid a fee equal to five percent (5%) of the costs actually incurred and expressly set forth in a construction budget for these services approved by Yieldstreet in writing in advance.

**4.** **Mortgage Loan Payable** 

On March 4, 2022, the Company obtained a $64,000,000 mortgage secured by the property. The mortgage matured on April 1, 2025. The Company has signed a forbearance agreement with the lender and continues to make partial interest payments while negotiating with the lender. The mortgage bears an interest rate of term Secured Overnight Financing Rate (SOFR) forward currency rate plus 3.35% margin spread. Pursuant to the loan, certain covenants may restrict the sale of assets and limit future borrowings. The swap on this mortgage loan expired on April 1, 2025. See Note 7, Interest Rate Swap, for more details.

**ALTERRA OWNER, LLC**

**(A Delaware Limited Liability Company)**

**NOTES TO FINANCIAL STATEMENTS**

**For the Six Months Ended June 30, 2025**

**(Unaudited)**

**5.** **Members' Equity** 

Each member of the Company has contributed capital to the Company and thereafter may make additional capital contributions to the Company in accordance with the terms of the Limited Liability Agreement. Without limitation, no member shall, upon dissolution of the Company or otherwise, be required to restore any deficit in such member's capital account. No member shall be entitled to withdraw from the Company.

At least quarterly, or otherwise at such other times at the members' approval, all available cash shall be distributed to the members in accordance with the limited liability agreement. Allocations of profits or losses are allocated among the members in a manner such that the Capital Account of each Member, immediately after making such allocation, is, as nearly as possible, equal to the distributions that would be made to such member if the Company were dissolved, its affairs wound up and its assets sold for cash equal to their gross asset value, all Company liabilities were satisfied (limited with respect to each nonrecourse liability to the adjusted gross asset value of the asset securing such liability), and the net assets of the Company were distributed to the members immediately after making such allocation.

**6.** **Fair Value Measurement** 

ASC Topic 820, Fair Value Measurement and Disclosures, defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). ASC Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 – quoted prices(unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 – observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 – unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in our assessment of fair value.

Considerable judgment is necessary to interpret Level 2 and 3 inputs in determining the fair value of our financial and non-financial assets and liabilities. Accordingly, our fair value estimates, which are made at the end of each reporting period, may be different than the amounts that may ultimately be realized upon sale or disposition of these assets.

*Financial Assets Measured at Fair Value*

---

| | | |
|:---|:---|:---|
| Financial assets measured at fair value as of December 31, 2024, consist of interest rate swap asset, which are classified as Level 2 in the fair value hierarchy. | Carrying amount ($) | Fair value ($) |
| Interest rate swap asset | 369672 | 369672 |

---

*Financial Liabilities Not Measured at Fair Value*

Financial liabilities not measured at fair value in our financial statements include a mortgage note. Estimates of the fair value of these instruments are determined by the standard practice of modeling the contractual cash flows required under the instrument and discounting them back to their present value at the appropriate current.

**ALTERRA OWNER, LLC**

**(A Delaware Limited Liability Company)**

**NOTES TO FINANCIAL STATEMENTS**

**For the Six Months Ended June 30, 2025**

**(Unaudited)**

The following is a summary of the carrying amounts and fair value of these financial instruments as of June 30, 2025 and December 31, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
| <br>**Financial liabilities** | **Carrying Amount ($)** | **Estimated Fair Value ($)** | **Carrying Amount ($)** | **Estimated Fair Value ($)** |
| Notes and mortgages payable | 64000000 | 64000000 | 64000000 | 64000000 |

---

**7.** **Interest rate swap** 

The Company managed market risk on its variable rate debt by entering an interest rate swap to fix the rate of debt. The interest rate swap is accounted for as derivative instrument and, pursuant to ASC Topic 815, Derivatives and Hedging is recorded on the balance sheet at fair value.

As of December 31, 2024, the Company had interest rate swaps with an aggregate notional amount of $64,000,000 that were not designated as hedges. Changes in the fair value of interest rate swaps that are not designated as hedges are recognized in earnings. The interest rate swap expired on April 1, 2025. For the period ended June 30, 2025, and December 31, 2024, the Company recognized unrealized gain (loss) of $0 and ($1,404,613), respectively, from the recognition of interest rate swap at fair value and for the period ended June 30, 2025, the Company recognized a realized loss of $369,672 on the maturing of the interest rate swap. The table below provides additional details on the Company's interest rate swaps.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **As of:** | **Notional amount ($)** | **Carrying amount ($)** | **Unrealized (loss) ($)** | **Cost of the swap ($)** |
| December 31, 2024 | 64000000 | 369672 | (1404613) | 899000 |

---

**8.** **Commitments and Contingencies** 

*Insurance*

The Company has commercial general liability coverage on the property, with limits of liability customary within the industry. The Company believes the policy specifications and insured limits are adequate given the relative risk of loss, the cost of the coverage and, in consultation with our insurance advisors, the Company believes the Property is adequately insured.

*Other Commitments and Contingencies*

There are no other significant commitments and contingencies.

**9.** **Subsequent Events** 

The Company has evaluated subsequent events through September 26, 2025, the date these consolidated financial statements were available to be issued and has determined that there are no subsequent events.

\*\*\*\*\*\*

## Add

**Exhibit 99.3**

**AVION OWNER, LLC**

**FINANCIAL STATEMENTS**

**FOR THE SIX MONTHS ENDED JUNE 30, 2025**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(UNAUDITED)**

**AVION OWNER, LLC**

**FOR THE SIX MONTHS ENDED JUNE 30, 2025**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page(s)** |
| **FINANCIAL STATEMENTS (UNAUDITED)** |  |
| Statements of Financial Condition | 1 |
| Statements of Operations | 2 |
| Statements of Changes in Members' Equity | 3 |
| Statements of Cash Flows | 4 |
| Notes to Financial Statements | 5-9 |

---

**AVION OWNER, LLC**

**STATEMENTS OF FINANCIAL CONDITION**

**AS OF JUNE 30, 2025, AND DECEMBER 31, 2024**

(Amounts in U.S. Dollars)

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025<br> (Unaudited)** | **December 31, 2024** |
| **ASSETS** | | |
| &nbsp;&nbsp;&nbsp;Real estate property, net of accumulated depreciation of $9,692,207 and $8,343,706 respectively | $70288835 | $71637336 |
| &nbsp;&nbsp;&nbsp;Restricted cash | 4179077 | 3024512 |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | 167323 | 314116 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 463542 | 361620 |
| &nbsp;&nbsp;&nbsp;Interest rate swap asset | 26479 |  |
| &nbsp;&nbsp;&nbsp;Other assets | 569361 | 233860 |
| **TOTAL ASSETS** | $**75694617** | $**75571444** |
| **LIABILITIES AND MEMBERS' EQUITY** |  |  |
| &nbsp;&nbsp;&nbsp;Notes and mortgage payable | $62550000 | $62800000 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 934044 | 559733 |
| &nbsp;&nbsp;&nbsp;Taxes payable | 760302 | 1440626 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 382865 | 270764 |
| **TOTAL LIABILITIES** | $**64627211** | $**65071123** |
| **MEMBERS' EQUITY** | **11067406** | **10500321** |
| **TOTAL LIABILITIES AND MEMBERS' EQUITY** | $**75694617** | $**75571444** |

---

***See notes to financial statements***

**AVION OWNER, LLC**

**STATEMENTS OF OPERATIONS**

**FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (Unaudited)**

(Amounts in U.S. Dollars)

---

| | | |
|:---|:---|:---|
|  | **For the <br> Six Months Ended<br> June 30, 2025** | **For the <br> Six Months Ended<br> June 30, 2024** |
| **INCOME** | | |
| Rental revenue | $3273379 | $3354825 |
| Other operating revenue | 188952 | 200312 |
| Tenants reimbursement income | 159373 | 157889 |
| Insurance proceeds | 9319 | 1066512 |
| Interest income | 744123 | 1057110 |
| **TOTAL INCOME** | **4375146** | **5836648** |
| **EXPENSES** |  |  |
| General and administrative expenses | 235159 | 235733 |
| Operating expenses | 855969 | 883340 |
| Tax expenses | 763064 | 751139 |
| Renovation expenses | 307640 | 1304668 |
| Depreciation and amortization | 1348500 | 1348500 |
| **TOTAL EXPENSES** | **3510332** | **4523380** |
| **OPERATING INCOME** | **864814** | **1313268** |
| **OTHER INCOME (EXPENSE)** |  |  |
| Interest and debt expenses | (3074208) | (2812757) |
| Unrealized gain/(loss) on interest rate swap | (223521) | (447545) |
| **Net loss before income taxes** | **(2432915)** | **(1947034)** |
| Income taxes | **-** | **-** |
| **NET LOSS** | $**(2432915)** | $**(1947034)** |

---

***See notes to financial statements***

**AVION OWNER, LLC**

**STATEMENTS OF CHANGES IN MEMBERS' EQUITY**

**FOR THE SIX MONTHS ENDED, JUNE 30, 2025 (Unaudited) AND THE YEAR ENDED DECEMBER 31, 2024**

(Amounts in U.S. Dollars)

---

| | | | |
|:---|:---|:---|:---|
|  | **Managing Member** | **Member** | **Total** |
| **BALANCE, JANUARY 01, 2024** | $**1626537** | $**13998751** | $**15625288** |
| Capital contributions |  |  |  |
| Capital distributions |  |  |  |
| Pro-rata allocation of net loss | (531636) | (4593331) | (5124967) |
| **BALANCE, DECEMBER 31, 2024** | $**1094901** | $**9405420** | $**10500321** |
| Capital contributions | 300000 | 2700000 | 3000000 |
| Capital distributions |  |  |  |
| Pro-rata allocation of net loss | (252377) | (2180538) | (2432915) |
| **BALANCE, JUNE 30, 2025** | $**1142524** | $**9924882** | $**11067406** |

---

***See notes to financial statements***

**AVION OWNER, LLC**

**STATEMENTS OF CASH FLOWS**

**FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND THE YEAR ENDED DECEMBER 31, 2024**

(Amounts in U.S. Dollars)

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended<br> June 30, 2025 (Unaudited)** | **For the Year Ended<br> December 31, 2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(2432915) | $(5124967) |
| **Adjustments to reconcile net loss to net cash used in operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization expenses | 1348500 | 2697001 |
| &nbsp;&nbsp;&nbsp;Unrealized (gain)/loss on interest rate swap assets | 223521 | 1737646 |
| &nbsp;&nbsp;&nbsp;**Change in operating assets and liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Other assets | (335501) | (90334) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | (101922) | 56565 |
| &nbsp;&nbsp;&nbsp;Purchase of interest rate swap | (250000) |  |
| &nbsp;&nbsp;&nbsp;Amortization of deferred financing costs |  | 249819 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 374312 | (690920) |
| &nbsp;&nbsp;&nbsp;Taxes Payable | (680324) | 47798 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 112101 | 9777 |
| **Net cash used in operating activities** | **(1742228)** | **(1107615)** |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Costs incurred for building improvements | - | (13711) |
| **Net cash used in investing activities** | - | **(13711)** |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Principal repayment of mortgage | (250000) | **-** |
| &nbsp;&nbsp;&nbsp;Contributions from Members | 3000000 | **-** |
| **Net cash provided by financing activities** | **2750000** | - |
| **Net increase (decrease) in Cash and cash equivalents and Restricted cash** | **1007772** | **(1121326)** |
| **Cash and cash equivalents and Restricted cash at the beginning of the year** | **3338628** | **4459954** |
| **Cash and cash equivalents and Restricted cash at the end of the year** | **4346400** | **3338628** |
| **Cash and restricted cash reported in the statement of financial condition:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash | 167323 | 314116 |
| &nbsp;&nbsp;&nbsp;Restricted Cash | 4179077 | 3024512 |
| **Total cash and restricted cash reported in the statement of cash flows:** | **4346400** | **3338628** |
| **SUPPLEMENTAL INFORMATION** |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $2966386 | $5399168 |

---

***See notes to the financial statements***

**AVION OWNER, LLC**

**(A Delaware Limited Liability Company)**

**NOTES TO FINANCIAL STATEMENTS**

**For the six months ended June 30, 2025**

**(Unaudited)**

**1.** **Organization** 

Avion Owner, LLC (A Delaware Limited Liability Company), (the "Company"), was formed on November 18, 2021. The joint venture was formed by InterCapital Group (Sponsor or GP) and Yieldstreet, a full-service, vertically integrated investment firm with property and construction management services provided by its affiliate, Dayrise Residential ("Dayrise"). The joint venture was formed to acquire Sevona Avion, a 344-unit, Class-A apartment complex built in 2012. Amenities at the property include outdoor pool, cabanas, grilling stations, fitness center, dog park, and business center. Yieldstreet and Sponsor acquired the property with the business plan to perform renovations to unit interiors and common areas to garner rental premiums, ultimately increasing net investment income at the property.

**2.** **Basis of Presentation and Significant Accounting Policies** 

*Basis of Presentation*

The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the reporting periods and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

*Rental Property*

Rental property is carried at cost, net of accumulated depreciation and amortization. Betterments, major renovations and certain costs directly related to the improvement of rental property are capitalized. Maintenance and repair expenses are charged to expense as incurred. Tenant improvements are amortized on a straight-line basis over the lives of the related properties, which approximate the useful lives of the assets.

Depreciation is recognized using straight-line method for financial reporting purposes.

---

| | | | |
|:---|:---|:---|:---|
| | | **June 30, 2025** | **December 31, 2024** |
| **Description** | **Description** | Sevona Avion, 344- unit, Class - A multifamily property Fort Worth, TX | Sevona Avion, 344- unit, Class - A multifamily property Fort Worth, TX |
| **Date of Construction** | **Date of Construction** | 2012 | 2012 |
| **Date Acquired** | **Date Acquired** | 12/2021 | 12/2021 |
| **Life on which depreciation in income statement is computed** | **Life on which depreciation in income statement is computed** | 5 to 30 years | 5 to 30 years |
| **Encumbrances** |  | 79981042 | 79981042 |
| **Gross amount at which carried in the statement of financial condition** | **Land** | 7262570 | 7262570 |
| **Gross amount at which carried in the statement of financial condition** | **Buildings and Improvements** | 72718472 | 72718472 |
| **Gross amount at which carried in the statement of financial condition** | **Total** | 79981042 | 79981042 |
| **Accumulated depreciation and amortization** | **Accumulated depreciation and amortization** | (9692207) | (8343706) |

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Rental property is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment exists when the carrying amount of an asset exceeds the aggregate projected future cash flows over the anticipated holding period on an undiscounted basis. The impairment loss is measured based on the excess of the rental property's carrying amount over its undiscounted cash flows and the terminal value Impairment analyses are based on current plans, intended holding periods and available market information at the time the analyses are prepared. If our estimates of the projected future cash flows, anticipated holding periods, or market conditions change, our evaluation of impairment losses may be different and such differences could be material to the financial statements. The evaluation of anticipated cash flows is subjective and is based, in part, on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results. Plans to hold properties over longer periods decrease the likelihood of recording impairment losses.

**AVION OWNER, LLC**

**(A Delaware Limited Liability Company)**

**NOTES TO FINANCIAL STATEMENTS**

**For the six months ended June 30, 2025**

**(Unaudited)**

*Cash and Cash Equivalents*

Cash and cash equivalents include cash and highly liquid investments purchased with an original maturity of three months or less. The carrying amount of these investments approximates fair value. The Company held cash in the amount of $167,323 and $314,116 as of June 30, 2025 and December 31, 2024, respectively.

*Restricted Cash*

The restricted cash includes balances in escrow accounts maintained with mortgage lender for the purpose of tax payments, insurance payments, replacement reserve, repairs reserve and interest reserve pursuant to the mortgage loan agreement. The Company held restricted cash in the amount of $4,179,077 and $3,024,512 as of June 30, 2025 and December 31, 2024, respectively.

*Allowance for Doubtful Accounts*

We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of tenants to make required payments under the lease agreements. Management exercises judgment in establishing these allowances and considers payment history and current credit status in developing these estimates.

*Derivative Instruments and Hedging Activities*

The Company managed market risk on its variable rate debt by entering an interest rate swap to fix the rate on debt for varying periods through maturity. The interest rate swap has been accounted for as derivative instruments and, pursuant to ASC Topic 815, *Derivatives and Hedging* are recorded on the balance sheets at fair value. The Company swap was not designated as hedges, therefore changes in the fair value are recognized in earnings.

*Deferred Financing Costs Related to Mortgage Note Payable*

Deferred financing costs related to mortgage note payable consists of fees and direct costs incurred in obtaining such financing. These costs are presented as a reduction of our mortgage note payable liability and are amortized over the terms of the loan agreement as a component of "interest and debt expense".

*Rental revenue and other operating revenue*

The Company leases multi-family apartment units to tenants through operating leases expiring over the next 12 months. The leases require fixed minimum monthly payments over the terms of the lease and charges for ancillary services provided by the property. Rental revenue includes base rents that each tenant pays in accordance with the terms of its respective lease and is reported on a straight-line basis over the non-cancellable term of the lease.

*Tenant Reimbursement Income and other income*

Tenant reimbursement income includes revenue arising from tenant leases which provide for the recovery of all or a portion of the operating expenses, such as electricity, water, pet, trash, and monthly statement fees of the property. This revenue is earned in the same period as the expenses are incurred. Other income includes the cash inflows from interest rate swap.

*Income Taxes*

The Company operates as a limited liability company and is taxed as a partnership. As such, the Company is not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns. The Company is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these financial statements do not reflect a provision for federal and state income taxes.

**AVION OWNER, LLC**

**(A Delaware Limited Liability Company)**

**NOTES TO FINANCIAL STATEMENTS**

**For the six months ended June 30, 2025**

**(Unaudited)**

The Company follows the guidance in the Financial Accounting Standards Board Accounting Standards Codification topic related to Uncertainty in Income Taxes which prescribes a comprehensive model for recognizing, measuring, presenting, and disclosing in the financial statements uncertain tax positions that the Company has taken or expects to take in its income tax returns. Management believes that it has appropriate support for the positions taken on the Company's tax returns.

**3.** **Related Party Transactions** 

The Company has entered into the following transactions with related parties for the period ended June 30, 2025.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Serial<br> No.** | **Related party name** | **Nature of relationship** | **Description of service** | **Computation Mechanism** | **Amount ($)** |
| 1 | Dayrise residential, LLC ("Dayrise") (InterCapital Partners) | Affiliate/Property Manager | Property management fee; included in "operating expenses" | 2.5% of Gross income from operations, maximum limit of 3% | 108718 |
| 2 | InterCapital Partners | Member/Managing Member | Asset management fee; included in "operating expenses" | 1% of total revenue | 35028 |

---

The Company has entered into the following transactions with related parties for the period ended June 30, 2024.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Serial <br> No.** | **Related party name** | **Nature of relationship** | **Description of service** | **Computation Mechanism** | **Amount ($)** |
| 1 | Dayrise residential, LLC ("Dayrise") <br>(InterCapital Partners) | Affiliate/Property Manager | Property management fee; including in "operating expenses" | 2.5% of Gross income from operations, <br>maximum limit of 3% | 109148 |
| 2 | InterCapital Partners | Member/Managing Member | Asset management fee; included "operating expenses" | 1% of total revenue | 36869 |

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Additionally, per management agreement, Dayrise performs construction management services with respect to capital improvements and/or repairs or casualty/insurance repairs at the property. Dayrise will be paid a fee equal to five percent (5%) of the costs actually incurred and expressly set forth in a construction budget for these services approved by Owner in writing in advance.

**4.** **Mortgage Loan Payable** 

On December 10, 2021, the Company obtained a $62,800,000 mortgage secured by the property. On February 26, 2025, the maturity date was extended to July 1, 2026. Prior to July 1, 2023, the mortgage bears interest rate type of adjustable-rate mortgage (ARM) based on LIBOR on U.S. Dollar deposits for a 30 day period as published by Reuters plus 3.15% margin spread. Beginning July 1, 2023, the mortgage ARM is based on the overnight daily Secured Overnight Financing Rate (SOFR) averaged and compounded for the previous 30 days (in arrears) plus .11448% margin spread. Pursuant to the loan, certain covenants restrict the sale of assets and limit future borrowings. The Company is in compliance with all the covenants set out in the mortgage loan agreement. The swap on this mortgage loan expired on January 01, 2025 and a new swap was entered into on January 2, 2025. See Note 7, Interest Rate Swap for more details.

**5.** **Members' Equity** 

Each member of the Company has contributed capital to the Company and thereafter may make additional capital contributions to the Company in accordance with the terms of the Limited Liability Agreement. Without limitation, no member shall, upon dissolution of the Company or otherwise, be required to restore any deficit in such member's capital account. No member shall be entitled to withdraw from the Company.

**AVION OWNER, LLC**

**(A Delaware Limited Liability Company)**

**NOTES TO FINANCIAL STATEMENTS**

**For the six months ended June 30, 2025**

**(Unaudited)**

At least quarterly, or otherwise at such other times at the members' approval, all available cash shall be distributed to the members in accordance with the limited liability company agreement.

Allocations of profits or losses of are allocated among the members in a manner such that the Capital Account of each Member, immediately after making such allocation, is, as nearly as possible, equal to the distributions that would be made to such member if the Company were dissolved, its affairs would up and its assets sold for cash equal to their gross asset value, all Company liabilities were satisfied (limited with respect to each nonrecourse liability to the adjusted gross asset value of the asset securing such liability), and the net assets of the Company were distributed to the members immediately after making such allocation.

**6.** **Fair Value Measurement** 

*Fair Value Measurement*

ASC Topic 820, Fair Value Measurement and Disclosures, defines fair value and establishes a framework for measuring fair value. The objective of fair value is to determine the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (the exit price). ASC Topic 820 establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels: Level 1 – quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities; Level 2 – observable prices that are based on inputs not quoted in active markets, but corroborated by market data; and Level 3 – unobservable inputs that are used when little or no market data is available. The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, as well as consider counterparty credit risk in our assessment of fair value. Considerable judgment is necessary to interpret Level 2 and 3 inputs in determining the fair value of our financial and non- financial assets and liabilities. Accordingly, our fair value estimates, which are made at the end of each reporting period, may be different than the amounts that may ultimately be realized upon sale or disposition of these assets.

*Financial Assets Measured at Fair Value*

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| | | |
|:---|:---|:---|
| Financial assets measured at fair value as of June 30, 2025, consist of interest rate swap asset, which are classified as Level 2 in the fair value hierarchy. | Carrying amount ($) | Fair value ($) |
| Interest rate swap asset | $250000 | $26479 |
| Financial assets measured at fair value as of December 31, 2024, consist of interest rate swap asset, which are classified as Level 2 in the fair value hierarchy. | Carrying amount ($) | Fair value ($) |
| Interest rate swap asset<sup>(1)</sup> |  |  |

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<sup>(1)</sup> The interest rate swap asset expired on January 01, 2025, and was valued at $0 as of December 31, 2024*.*

*Financial Liabilities Not Measured at Fair Value*

Financial liabilities not measured at fair value in our financial statements include mortgage note. Estimates of the fair value of these instruments are determined by the standard practice of modeling the contractual cash flows required under the instrument and discounting them back to their present value at the appropriate current values.

**AVION OWNER, LLC**

**(A Delaware Limited Liability Company)**

**NOTES TO FINANCIAL STATEMENTS**

**For the six months ended June 30, 2025**

**(Unaudited)**

The following is a summary of the carrying amounts and fair value of these financial instruments as of June 30, 2025 and December 31, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **As of June 30, 2025** | **As of June 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
| <br>**Financial liabilities** | **Carrying Amount ($)** | **Estimated Fair Value ($)** | **Carrying Amount ($)** | **Estimated Fair Value ($)** |
| Notes and mortgages payable | 62550000 | 62550000 | 62800000 | 62800000 |

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**7.** **Interest rate swap** 

The Company managed market risk on its variable rate debt by entering an interest rate swap to fix the rate of debt. The interest rate swap is accounted for as a derivative instrument and, pursuant to ASC Topic 815, *Derivatives and Hedging* is recorded on the balance sheet at fair value.

As of June 30, 2025 and December 31, 2024, the Company had interest rate swaps with an aggregate notional amount of $62,550,000 and $62,800,000, respectively that were not designated as a hedge. Changes in the fair value of interest rate swaps that are not designated as hedges are recognized in earnings. For the periods ended June 30, 2025 and December 31, 2024, the Company recognized unrealized gain/(loss) of ($223,521) and ($1,737,646), respectively, from the recognition of interest rate swap at fair value. The table below provides additional details on the Company's interest rate swaps.

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| | | | | |
|:---|:---|:---|:---|:---|
| **As of:** | **Notional amount ($)** | **Carrying amount ($)** | **Unrealized gain/(loss) ($)** | **Cost of the swap ($)** |
| June 30, 2025 | 62550000 | 26479 | (223521) | 250000 |
| December 31, 2024 | 62800000 |  | (1737646) | 463000 |

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**8.** **Commitments and Contingencies** 

*Insurance*

The Company has commercial general liability coverage on the property, with limits of liability customary within the industry. The Company believes the policy specifications and insured limits are adequate given the relative risk of loss, the cost of the coverage and, in consultation with our insurance advisors, the Company believes the Property is adequately insured.

*Other Commitments and Contingencies*

There are no other significant commitments and contingencies.

**9.** **Subsequent Events** 

The Company has evaluated subsequent events through September 26, 2025, the date these financial statements were available to be issued and has determined that there are no subsequent events.

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