# EDGAR Filing Document

**Accession Number:** 0001750695
**File Stem:** 0001213900-26-050481
**Filing Date:** 2026-5
**Character Count:** 109850
**Document Hash:** 81a7d69f2b80bb240d6086146eeedb21
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-050481.hdr.sgml**: 20260501

**ACCESSION NUMBER**: 0001213900-26-050481

**CONFORMED SUBMISSION TYPE**: 1-K

**PUBLIC DOCUMENT COUNT**: 3

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260501

**DATE AS OF CHANGE**: 20260430

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DF Growth REIT, LLC
- **CENTRAL INDEX KEY:** 0001750695
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 831263155
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-K
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 24R-00214
- **FILM NUMBER:** 26927824

**BUSINESS ADDRESS:**
- **STREET 1:** 750 B STREET, SUITE 1930
- **CITY:** SAN DIEGO
- **STATE:** CA
- **ZIP:** 92101
- **BUSINESS PHONE:** 858-430-8528

**MAIL ADDRESS:**
- **STREET 1:** 750 B STREET, SUITE 1930
- **CITY:** SAN DIEGO
- **STATE:** CA
- **ZIP:** 92101

## Part

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 1-K**

**ANNUAL REPORT**

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

**For the fiscal year ended December 31, 2025**

**DF Growth REIT, LLC**

(Exact name of issuer as specified in its charter)

Commission File Number: **024-10912**

---

| | |
|:---|:---|
| **Delaware** | **83-1263155** |
| (State or other jurisdiction of<br> incorporation or organization) | (IRS Employer <br> Identification Number) |

---

---

| | |
|:---|:---|
| **750 B Street**<br>**Suite 1930**<br>**San Diego, CA** | **92101** |
| (Address of principal executive offices) | (Zip Code) |

---

**(858) 430-8528**

Issuer's telephone number, including area code

**Class A Investor Shares**

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

**Table of Contents**

---

| | | |
|:---|:---|:---|
| [Caution Regarding Forward-Looking Statements](#a_001) | [Caution Regarding Forward-Looking Statements](#a_001) | ii |
| Item 1. | [Business](#a_002) | 1 |
|  | [Overview](#a_003) | 1 |
|  | [Management](#a_004) | 1 |
|  | [Investment Strategy](#a_005) | 1 |
|  | [Competitive Landscape](#a_006) | 2 |
|  | [Term of the Company](#a_007) | 3 |
| Item 2. | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_008) | 4 |
|  | [Operating Results](#a_009) | 4 |
|  | [Liquidity and Capital Resources](#a_010) | 7 |
|  | [Trend Information](#a_011) | 7 |
| Item 3. | [Directors and Officers](#a_012) | 7 |
|  | [Ownership of Related Entities](#a_013) | 8 |
|  | [Legal Proceedings](#a_014) | 8 |
|  | [Compensation of Executive Officers](#a_015) | 8 |
|  | [Compensation of the Manager and Sponsor](#a_016) | 9 |
|  | [Fees](#a_017) | 9 |
|  | [Report to Investors](#a_018) | 11 |
|  | [Clawback](#a_019) | 12 |
|  | [Method of Accounting](#a_020) | 12 |
| Item 4. | [Security Ownership of Management and Certain Securityholders](#a_021) | 12 |
| Item 5. | [Interest of Management and Others in Certain Transactions](#a_022) | 12 |
| Item 7. | [Financial Statements](#a_023) | F-1 |

---

i

*In this Annual Report, the terms "we," "us," and "the Company" refers to DF Growth REIT, LLC, a Delaware limited liability company, "Manager" refers to DF Manager, LLC, a Delaware limited liability company, and "Sponsor" refers to DiversyFund, Inc., a Delaware corporation*.

**Caution Regarding Forward-Looking Statements**

This Annual Report and any documents incorporated by reference herein or therein contain forward-looking statements and are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this Annual Report are forward-looking statements. Forward-looking statements give the Company's current reasonable expectations and projections regarding its financial condition, results of operations, plans, objectives, future performance and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as "anticipate", "estimate", "expect", "project", "plan", "intend", "believe", "may", "should", "can have", "likely" and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events.

The forward-looking statements contained in this Annual Report and any documents incorporated by reference herein are based on reasonable assumptions the Company has made in light of its industry experience, perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. As you read and consider this Annual Report, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (many of which are beyond the Company's control) and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect our actual operating and financial performance and cause our performance to differ materially from the performance anticipated in the forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of these assumptions prove incorrect or change, our actual operating and financial performance may vary in material respects from the performance projected in these forward-looking statements.

Any forward-looking statements made in this Annual Report or any documents incorporated by reference herein or therein are accurate only as of the date of this Annual Report. Factors or events that could cause our actual operating and financial performance to differ may emerge from time to time, and it is not possible for the Company to predict all of them. Except as required by law, the Company undertakes no obligation to publicly update any forward-looking statements for any reason after the date of this Annual Report, whether as a result of new information, future developments or otherwise, or to conform these statements to actual results or to changes in our expectations.

**Given these risks and uncertainties, you should not place undue reliance<br> on any forward-looking statements.**

ii

**Item 1. Business** 

**Overview**

The Company was formed to invest in real estate projects and assets, chiefly in and around cities in the Sun Belt, that we believe have significant profit potential. Our primary focus has remained "value-add" multifamily real estate, although we reserved the right to invest in other real estate projects that we determine to have significant profit potential.

**Investments Through Other Entities**

Investments by the Company are made through other entities ("Project Entities"). For example, when the Company invested in a multifamily property, that property was typically owned by a different entity such as a limited partnership or a limited liability company. These Project Entities are controlled by the Sponsor or another entity controlled by the Sponsor or a third party sponsor.

**LLC Agreement**

The Company is governed by a Limited Liability Company Agreement dated August 1, 2018, which we refer to as the "LLC Agreemen<u>t</u> or the "operating agreement". A copy of the LLC Agreement was filed as an exhibit to the Company's Offering Statement and is incorporated by reference in this Annual Report.

**Management**

The Company is managed by DF Manager, LLC, a Delaware limited liability company, which we refer to as the "Manager". The Manager is an affiliate of DiversyFund, Inc., a Delaware corporation and a real estate sponsor, which we refer to as the "Sponsor." The Sponsor owns and operates the DiversyFund Platform at www.DiversyFund.com (the "Site"), where it seeks funding for its real estate projects and allows investors to hold interests in real estate opportunities that have been historically difficult to access for most investors. The Manager has the authority to make all decisions regarding our business, subject to the limitations in our operating agreement. The Sponsor also provides certain marketing, investor relations and other administrative services on our behalf. Accordingly, the Company does not have any employees nor does it intend to hire any employees who will be compensated directly by us.

**Investment Strategy**

Our strategy is to acquire, asset manage, operate, selectively leverage, syndicate and opportunistically sell commercial real estate properties, debt securities and other real estate-related assets where the underlying assets primarily consist of such properties. These properties are typically existing properties and may include properties purchased for renovation and conversion into multifamily use. We have focused on acquiring predominantly multifamily properties with significant possibilities for capital appreciation, such as those requiring renovation, redevelopment or repositioning, those located in markets with high population and job growth and those available from sellers who are distressed or face time-sensitive deadlines.

Our value-add investment strategy entails

● identifying multifamily apartment communities in quality locations in the Company's target markets, where the Company believes it can acquire properties for lower than their actual value or where the Company can add significant value through hands-on management and/or appreciation potential;

● buying those apartment communities at below-market prices, or at market prices where there is sufficient upside potential to obtain above-market returns over the long term;

● making physical alterations and other improvements to those communities, where the Company can achieve significant benefit with minimal capital outlay; and

● through third-party management, raising rents and managing expenses to increase the overall value of the property.

A majority of the Company's portfolio is in these value-add multifamily investments. We believe our investment strategy has produced significant opportunities to make investments with attractive risk-return profiles. Geographically, we have focused on locations that we believe can attract high-quality tenants, primarily suburban markets of primary and secondary metropolitan cities in high-growth regions of the country.

**The Multifamily Real Estate Market**

Historically, the multifamily market has been driven by favorable supply/demand fundamentals including (i) a limited number of new units coming onto the market; (ii) the demographic often referred to as "echo boomers;" (iii) an increase in the number of immigrants; and (iv) tighter lending guidelines leading to lower rates of home ownership.

Long-term macroeconomic effects of the COVID-19 pandemic on global supply chains, inflation, interest rates, labor shortages and wage increases continued to impact many industries including ours in 2025. Additionally, many local markets, including those in which our assets are located, have experienced elevated levels of new multifamily supply, which has outpaced near-term demand in certain submarkets. This imbalance has contributed to increased concessions, slower leasing activity, and softening rental rates as new inventory is absorbed. Concurrently, capitalization rates have expanded materially from the historically low levels observed in 2022, primarily due to higher interest rates and increased cost of capital, which has placed downward pressure on asset valuations.

Demand for older, value-add multifamily assets has also moderated, as many institutional investors have curtailed acquisition activity or remained on the sidelines in the current environment, resulting in reduced transaction volumes and wider bid-ask spreads.

Accordingly, we are closely monitoring conditions in our local markets, including trends in supply absorption, rental rates, and capital markets, as we evaluate the timing of potential asset sales. There can be no assurance that market conditions, including the pace of supply absorption or the direction and timing of changes in capitalization rates, will be favorable at the time of such sales.

**The Commercial Real Estate Market**

The commercial real estate market, of which multifamily real estate is one subsector, has experienced extraordinary market challenges in many locations throughout the United States, particularly in the largest cities which saw the steepest increase in demand leading up to the pandemic years. While retail, hospitality and office assets continue to experience significant vacancies and some markets have seen softening in multifamily rents due to new construction deliveries in 2025, we expect the multifamily market in most areas to remain relatively stable given the overall housing shortage.

**Real Estate Investment Life Cycle**

The life cycle of a multifamily real estate project varies on an individual property basis, but generally all projects experience periods of development or renovation, stabilization, and decline. A major component of successful real estate investing is timing the cycle – in effect buying low and selling high. The Company pays close attention to ongoing market cycles in an effort to maximize returns to investors.

**Competitive Landscape**

The Company faces significant competition for multifamily projects from developers, investment companies, private equity funds, other REITS and private investors. While the U.S. real estate market as a whole has historically experienced heavy demand and limited supply, market conditions have shifted in recent periods. Elevated interest rates, increased cost of capital, and record levels of new multifamily supply in certain markets have contributed to increased competition for tenants, including through concessions and pricing pressure, as well as a more competitive and, in some cases, less liquid transaction environment.

Although the broader economy demonstrated relative resilience through much of 2025, higher borrowing costs and sector-specific economic pressures affecting certain tenant populations have moderated tenant demand in certain markets. At the same time, tighter credit conditions have reduced the availability of debt financing, which has constrained transaction volumes and increased the importance of access to capital for prospective buyers.

As the Company has substantially deployed its available investment capital, its competitive position is primarily reflected in its ability to effectively operate its existing portfolio and to execute on future asset dispositions. In this regard, the Company may compete with other property owners for tenants and with a range of market participants, including institutional and private buyers, in connection with the sale of its assets. Market conditions, including elevated supply levels, higher interest rates, and reduced transaction liquidity, may adversely impact both operating performance and disposition outcomes.

The Company's focus on value-add property management and operational improvements means that it seeks to enhance property-level performance, but there can be no assurance that such efforts will offset broader market conditions or result in favorable operating or disposition outcomes.

**Term of the Company**

The LLC Agreement provides for a five-year term with up to two additional one-year extensions at the discretion of the Manager. The current term was extended for two 1 year periods to December 31, 2025 by the Manager. The Company is now in its winding up period.

To wind down the Company after the term and any extensions are completed, the Manager will seek to generate liquidity for investors and realize any gains in the value of our investments by selling or refinancing our properties and returning capital to investors on an orderly basis over the approximate 12 to 24+ month winding up period that follows the end of the Company term (as extended). The goal of such wind down period is to preserve capital and maximize Investors' potential profits by waiting for local market conditions to reach favorable pricing levels. Sales will be subject to prevailing market conditions and there is no guarantee that we will be successful in executing any such liquidity transactions on terms favorable to the Company and investors, or that we will be able to do so within the time frame we have anticipated.

**SEC Investigation and Shareholder Litigation**

An affiliate of the Company, DF Growth REIT II, LLC ("REIT II"), was a respondent in an administrative proceeding with the SEC. In November 2021 the SEC began an investigation of REIT II and in January 2022 the SEC suspended REIT II's offering and commenced an administrative proceeding to make the suspension permanent. The SEC alleged two violations (failure to begin the offering within two calendar days of qualification and use of an offering circular supplement instead of a post-qualification amendment to increase the maximum offering amount from $50 million to $75 million) and three types of misleading statements on the Sponsor's website (related to the affiliation of the Company with REIT II, to how much capital REIT II needed to raise from investors and to the fees charged to REIT II by the sponsor of REIT II). None of the SEC's allegations involved financial or accounting misconduct or wrongdoing. On June 9, 2023, the administrative proceeding was settled when REIT II and the SEC agreed to a settled order that permanently suspended REIT II's exemption under Regulation A. REIT II was not required to pay any fines or penalties. On August 10, 2023, the SEC informed REIT II that it was also concluding its investigation and did not intend to recommend any action against DiversyFund, the Company, REIT II, DF Manager, Mr. Cecilio or Mr. Lewis.

In December 2022 attorneys for three shareholders in the Company brought an investor suit against the Company; DF Growth REIT II, LLC, an affiliate of the Company; DiversyFund, Inc., the Sponsor; and Craig Cecilio and Alan Lewis as principals of DiversyFund, Inc. The suit largely piggybacked on claims raised by the SEC in its inquiry of the Company. The shareholder action alleged that the named shareholders were misled and sought compensation for their losses as well as reimbursement of all attorneys' fees, costs and interest on those fees. Attorneys also sought to have their claim certified as a class action on behalf of all investors in the Company. The Company engaged defense counsel well experienced in defending securities litigation and securities class actions in order to vigorously contest these claims, which we believe are without merit. In May 2023 the Company filed a motion to dismiss all claims and in April, the judge dismissed the investor suit, noting that (i) plaintiffs had failed to state a claim on which relief could be granted and that (ii) plaintiffs had suffered no loss since they still own their shares. Plaintiffs' counsel filed an amended claim in May 2024 and the Company again filed a motion to dismiss all claims. A majority of the claims were dismissed by the court which again granted plaintiffs leave to file an amended complaint, and plaintiffs filed a third amended complaint in January 2025. The Company filed a motion to dismiss and in an order dated June 8, 2025, the Court granted in part and denied in part the Company's motion to dismiss the Third Amended Complaint. The Court dismissed most claims as implausible or insufficiently supported by facts, but allowed certain claims to proceed.

On March 20, 2026, after three years of litigation, the parties entered into a stipulation of dismissal and filed a joint motion to dismiss the action with prejudice. The Court granted the motion, and the case was dismissed in its entirety, with each party bearing its own attorneys' fees and costs. No class was certified in connection with the action.

The Sponsor has paid most of the legal costs of these proceedings.

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

The following discussion of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes contained in this Annual Report. The following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. For more information, see "Statements Regarding Forward Looking Information" in this Annual Report. Unless otherwise indicated, the latest results discussed below are as of December 31, 2025.

**Critical Accounting Policies**

The Company's accounting policies have been established to conform with U.S. GAAP. The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to use judgment in the application of accounting policies, including making estimates and assumptions. These judgments may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Management believes that we have made these estimates and assumptions in an appropriate manner and in a way that accurately reflects our financial condition. 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 consolidated financial statements.

**Sources of Operating Revenues and Cash Flows**

We generate income primarily through rental operations from our rental real estate properties and from the sale of properties in which we invest.

**Operating Results**

 

The Company began operating on November 1, 2018. For the years ended December 31, 2025 and December 31, 2024, the Company had net losses of approximately $6,038,932 and $7,947,377, respectively.

**Revenue**

*Rental Revenue; Interest Income*

For the years ended December 31, 2025 and December 31, 2024, we earned approximately $10,501,657 and $8,210,024, respectively, from the operation of rental real estate properties and $86,222 and $854,726, respectively, in interest income. The increase in rental revenue is primarily due to increased rents and collections and the decrease in interest income is largely the result of rate cap contracts generating less due to interest rates dropping in 2025.

*Realized Investment Income; Revenue from the Sale of Property*

We booked $435,144 in realized investment income during the year ended December 31, 2025, compared to $0 during the previous year. The increase is primarily the result of the sale of our interest in the Durant property. We had no revenue from the sale of property in 2025 or 2024.

*Other Revenue*

For the years ended December 31, 2025 and December 31, 2024, we earned other revenue of approximately $478,843 and $822,375, respectively. The decrease in other revenue is primarily attributable to a decrease in the amount of tenant fees such as application fees, administrative fees, late payment fees and other similar fees charged by Project Entities to tenants.

**Expenses**

*Depreciation and Amortization; Property Operations and Maintenance*

For the years ended December 31, 2025 and December 31, 2024, we incurred depreciation and amortization expense of approximately $3,007,670 and $3,963,418, respectively. We incurred property operations and maintenance expenses of approximately $3,300,197 and $2,093,546, respectively, for the years ended December 31, 2025 and December 31, 2024. The increase in property operation and maintenance expense is primarily due to increased insurance, payroll and other operating costs.

*Real Estate Taxes; Bad Debt Rent*

The Company paid $1,343,359 in real estate taxes in 2025, compared to $1,237,506 in 2024. For the year ended December 31, 2025, the Company incurred $26,498 in bad debt rent, compared to $11,597 in bad debt rent expenses in 2024.

*Unrealized Loss on Equity Investments*

 

For the year ended December 31, 2025, the Company booked an unrealized loss on equity investments of $593,452, compared to an unrealized loss of $973,491 booked in 2024.

 

*Realized Investment Loss*

 

For the year ended December 31, 2025, the Company booked no realized investment loss, compared to $1,337,307 in 2024.

 

*General and Administrative Expenses*

For the years ended December 31, 2025 and December 31, 2024, we incurred general and administrative expenses of approximately $5,367,527 and $4,855,785, respectively, which includes auditing and professional fees, bank fees, legal fees, software and subscription costs, transfer agent fees, property level general and administrative expenses and other expenses associated with operating our business. The increase in 2025 was primarily due to increasing legal costs and cost increases due to inflation.

*Other Expense*s

*Interest Expense*

For the years ended December 31, 2025 and December 31, 2024, we incurred interest expense, including interest paid to related parties, of approximately $4,602,957 and $4,615,054, respectively.

*Fees*

Although the Manager has the right to charge a Company level asset management fee of 2% of capital raised, the Manager waived such asset management fees for the years ended December 31, 2025 and December 31, 2024.

**Our Investments**

As of December 31, 2025, the Company had $65,160,574 (net of accumulated depreciation) in fixed asset book value in real estate properties, compared to $68,054,629 (net of accumulated depreciation) as of December 31, 2024. The decrease is due to depreciation expense. The Company also had investments in joint ventures of $7,362,521 (fixed asset book value, net of accumulated depreciation) as of December 31, 2025, compared to $8,842,521 as of December 31, 2024, and $11,677,061 (fixed asset book value, net of accumulated depreciation) in real estate equity investments, compared to $10,255,309 as of December 31, 2024. The increase is due to follow on investments in existing portfolio properties using proceeds from the Durant equity sale. As of December 31, 2025 and December 31, 2024, the Company had $1,221,369 and $804,069, respectively, in debt investments. The increase is due to an additional debt investment made to Avalon II (NCP Dove).

*Cobble Hill Project*

As previously disclosed in 2022, the Company invested $6,519,548 in the Cobble Hill apartments in Fort Worth, Texas by buying out all existing equity holders. This asset was managed by a third party sponsor (who is also the manager of the Company's Village Creek investment in Fort Worth) who acted as the guarantor on the Fannie Mae loan assumption for the property.

The Company agreed to allow the third party sponsor to sell the Cobble Hill property in 2024 in order to generate cash and shore up the Company's balance sheet after the difficult period for commercial real estate investments that followed the COVID-19 pandemic and ensuing rise in inflation and interest rates. The Company's current portfolio has additional properties that have experienced operating deficits as a result of rising interest expenses stemming from the Federal Reserve Bank's multiple interest rate increases in 2022, 2023 and 2024.

In the fourth quarter of 2023, the Company's Manager determined that while a sale of Cobble Hill would result in a net loss after accounting for operating expenses and the costs of improvements to the property, proceeds from a sale would enable the Company to stabilize the remaining portfolio assets.

On August 30, 2024, the third party sponsor sold the Cobble Hill property for a purchase price of $12,819,000. After repayment of the Fannie Mae loan and payment of sale transaction costs, the remaining proceeds available to the Company were approximately $5,287,240, resulting in an estimated net loss of approximately $1,337,307 on the Company's investment in Cobble Hill.

*Durant Project*

In 2025, we sold all of our interest in the Durant property, which was managed by a third party sponsor.

*Equity and Debt Investments*

The following tables detail the equity and debt investments in real estate made by the Company from November 13, 2018 (inception) through December 31, 2025. As of December 31, 2025, the Company had invested a total of $59,679,847 in equity in nine projects, six of which are managed by our Sponsor. These invested amounts, as detailed below, do not include accumulated depreciation or unrealized gains or losses, unlike the amounts reported on the balance sheet under "Investments in rental real estate properties, net of accumulated depreciation" and "Real estate equity investments, net":

<u>Equity Investments in Real Estate as of December 31, 2025:</u>

---

| | | | |
|:---|:---|:---|:---|
| **Property** | **Ownership <br> Percentage** | **Investment <br> Type** | **Investment <br> Amount** |
| The France | 100 | Equity | $4889578 |
| Azul | 97.82 | Equity | $8530097 |
| Village Creek | 95.81 | Equity | $8386117 |
| Avalon I (Willow Ridge) | 93.32 | Equity | $10465049 |
| Park Blvd LLC | 84.56 | Equity | $6463387 |
| Mission Villas | 78.41 | Equity | $8674603 |
| Swaying Oaks | 46.20 | Equity | $1745935 |
| The Independent | 43.58 | Equity | $3669362 |
| Avalon II (NCP Dove) | 31.07 | Equity | $5051716 |
| Onyx on Park | 12.11 | Equity | $1803000 |
| **Total Equity Investments** |  |  | $**59679847** |

---

<u>Debt Investments in Real Estate as of December 31, 2025:</u>

---

| | | | |
|:---|:---|:---|:---|
| **Property** | **Ownership <br> Percentage** | **Investment <br> Type** | **Investment <br> Amount** |
| Avalon II (NCP Dove, LLC) | N/A | Debt | $1221369 |
| **Total Debt Investments** |  |  | $**1221369** |

---

During the year ended December 31, 2025, the Company made no distributions to Investors.

**Liquidity and Capital Resources**

We require capital to fund our investment activities and operating expenses. Our capital sources include net proceeds from our Offering, cash flow from operations, net proceeds from asset sales, borrowings under credit facilities and other term borrowings. As of December 31, 2025, we had $89,920 in cash and cash equivalents, compared to $1,953,984 as of December 31, 2024. The decrease is primarily due to additional capital contributions made to our portfolio properties in 2025. The Company had $1,929,133 and $1,730,786 in total receivables, including related party, interest and notes and accounts receivables, as of December 31, 2025 and December 31, 2024, respectively.

As of December 31, 2025, we anticipate that cash on hand, future cash flows from operations, and proceeds from asset sales will provide sufficient liquidity to meet future funding commitments and costs of operations.

**Outlook and Trend Information**

We expect the coming year to be extremely challenging for the broader economy with the growing likelihood of economic conditions worsening significantly following the widespread implementation of global tariffs, interest rates that that remain elevated beyond prior lows and the increase of conflict across the globe. As a result, individuals, businesses, and investors expect a period of generally depressed asset values and dramatically increased market volatility compared to recent history.

**Recent Developments**

After December 31, 2025, the Company refinanced the Avalon 1 loans for $18.3 million with a new lender, NEG Financing 4, LLC. The new loan has a maturity date of March 1, 2028, a floating interest rate of 9.755% as of March 1, 2026, and monthly debt service of $148,764.

On February 26, 2026, the Company entered into a $2.5 million portfolio loan with lender Calcon Mutual Mortgage, LLC. This loan has a maturity date of March 1, 2027, a fixed interest rate of 12%, and a monthly debt service of $25,000.

**Item 3. Directors and Officers**

DiversyFund, Inc., which we refer to as our "Sponsor", is the sole member and manager of DF Manager, LLC, which we refer to as our "Manager". Pursuant to the LLC Agreement, the Manager has full and complete authority, power and discretion to manage and control the business, affairs and properties of the Company, to make all decisions regarding those matters, to execute any contracts or other instruments on behalf of the Company, and to perform any and all other acts or activities customary or incidental to the management of the Company's business. The Company does not employ any employees except through the Sponsor.

**Executive Officers of the Manager**

 ****

---

| | | | | |
|:---|:---|:---|:---|:---|
| *Name* | *Position* | *Age* | *Term of Office* | *Approx. Hours Per Week* |
| Craig Cecilio | Chief Executive Officer | 52 | Indefinite | 10 Hours |
| Alan Lewis | Chief Investment Officer | 49 | Indefinite | 10 Hours |

---

*Craig Cecilio* serves as Chief Executive Officer of the Manager and has served as Chief Executive Officer and Co-Founder of the Sponsor since its inception. Mr. Cecilio has worked in the real estate industry for nearly 23 years. Over the course of his career, Mr. Cecilio has participated in the development of over 1,000 single family and commercial properties as either a joint venture equity partner, lender, or sponsor. Previously, Mr. Cecilio owned a real estate investment business, Coastal California Funding Group, Inc., which underwrote, financed and developed commercial and residential properties principally in California markets such as San Diego, Orange County, Los Angeles and San Francisco, and a loan servicing business. Additionally, Mr. Cecilio founded a real estate debt fund in 2013, which manages a portfolio of mainly real estate-backed bridge loans. In some cases, the fund was used to "pre-fund" some of the Company's real estate projects. Since 1997, Mr. Cecilio has financed nearly $500 million of real estate assets and has developed and managed over $50 million of commercial and residential property (renovations and ground-up). Mr. Cecilio has a Bachelor of Arts from the University of Colorado at Boulder.

*Alan R. Lewis* is the Chief Investment Officer of the Manager and has served as Chief Investment Officer and Cofounder of the Sponsor since its inception. Prior to the launch of the Manager, he was the head of the real estate private equity division of a real estate investment and development firm based in Salt Lake City, Utah, where he oversaw capital raising, deal structuring and development work for multifamily projects and master-planned residential communities. Previously, Mr. Lewis worked for nearly ten years on Wall Street as both an investment banker and a corporate lawyer, most recently as Managing Director of the Investment Banking Division of Brill Securities where Mr. Lewis provided financial advisory and capital raising services for high-growth companies along with real estate and oil and gas projects. Prior to joining Brill Securities in 2010, Mr. Lewis practiced as a corporate attorney at Davis Polk & Wardwell, a Tier 1 ranked Wall Street law firm. His practice included IPOs, mergers and acquisitions, and commercial real estate including the acquisition and refinancing of several Fifth Avenue commercial buildings and acquisitions and portfolio restructurings for a $6 billion real estate private equity fund. Over his career, Mr. Lewis has led or participated in transactions totaling over $41 billion. Mr. Lewis has a Bachelor of Arts from Brigham Young University and a Juris Doctor from Columbia Law School.

**Ownership of Related Entities**

The Sponsor owns 100% of DF Manager, LLC, the Manager of the Company, and Mr. Cecilio and Mr. Lewis own a significant portion of and control the Sponsor.

**Legal Proceedings**

Within the last five years, no Executive Officer or Significant Employee of the Company has been convicted of, or pleaded guilty or no contest to, any criminal matter, excluding traffic violations and other minor offenses.

Within the last five years, no Executive Officer or Significant Employee of the Company, no partnership of which an Executive Officer or Significant Employee was a general partner, and no corporation or other business association of which an Executive Officer or Significant Employee was an executive officer, has been a debtor in bankruptcy or any similar proceedings.

**Compensation of Executive Officers**

The Company itself does not have any employees, or payroll. For example, Mr. Lewis and Mr. Cecilio, who are two of the executives of the Sponsor, receive no salary, bonuses, or other compensation directly from the Company. Instead, all of their compensation is paid by the Sponsor from its own capital and revenue sources, including any fees paid to the Manager or Sponsor and any Promoted Interest payments.

Each of the executive officers of our Manager also serves as an executive officer of the Sponsor. Each of these individuals receives compensation for their services, including services performed for us on behalf of our Manager, from our Sponsor. As executive officers of our Manager, these individuals manage our day-to-day affairs; oversee the review and selection 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 the Manager and Sponsor**

Our Manager and our Sponsor receive fees and expense reimbursements for services related to the Offering and for the investment and management of the Company's assets. Items of compensation are summarized in the table below.

A portion of the fees paid by a Project Entity to the Sponsor may be allocated to each owner based on ownership percentages at the time of fee payment. Although fees are paid directly to the Sponsor by the Project Entity, the Company is deemed in such instances to have paid to the Sponsor the Company's allocated portion of fees.

**Fees**

---

| | |
|:---|:---|
| Type of Fee | Description and Amount |
| *Organization and Offering Expense Reimbursement* | The Company was required to reimburse the Manager for expenses the Manager incurred in connection with the Offering before it was "qualified" by the SEC, including legal, accounting, and marketing costs. The Sponsor's total expenses for the Offering, before the Offering was qualified, were approximately $25,000. For the periods ending December 31, 2025 and December 31, 2024, the Company paid $0 and $0 in organization and offering expense reimbursements to the Sponsor. |
| *Asset Management Fee* | Pursuant to the LLC Agreement, the Manager has the right to charge the Company a monthly asset management fee equal to 0.1667% of the Investors' aggregate capital accounts as of the last day of each calendar month, or approximately 2% per year. However, since the inception of the Company, the Manager has waived all asset management fees and expects to continue to do so. For the periods ending December 31, 2025 and December 31, 2024, the Company paid $0 and $0 in Company level asset management fees to the Sponsor. |
| *Acquisition/ Developer Fee* | The Sponsor may charge each Project Entity (or the Company itself, if the Company owns real estate directly) an acquisition/developer fee of between 6% and 8% of the total project costs, including both "hard" costs (e.g., the cost of property) and "soft" costs (e.g., professional fees). |
|  | Where property is owned by an entity in which there is another financial partner – a joint venture – the Sponsor may be entitled to a similar developer fee to the extent negotiated with the financial partners in such joint venture, which could be higher than the 6% - 8% fee for direct investment. However, the Company's cost of the fee will not exceed 6% - 8% of the Company's share of the total project cost. |
|  | For the periods ending December 31, 2025 and December 31, 2024, the Company was deemed to have paid $0 and $179,149, respectively, in acquisition/developer fees to the Sponsor. |
| *Property Disposition Fee* | Where the Company owns property directly or is the sole owner of an entity that owns property, the Sponsor will receive a disposition fee equal to 1% of the total sale price of each property.<br>Where property is owned by an entity in which there is another financial partner – a joint venture – the Sponsor may be entitled to a similar disposition fee to the extent negotiated with the financial partners in such joint venture (which could be higher than the 1% disposition fee for direct investment). However, the Company's share of the fee will not exceed 1% of the Company's share of the total sale price. |

---

---

| | |
|:---|:---|
| Type of Fee | Description and Amount |
|  | For the periods ending December 31, 2025 and December 31, 2024, the Company paid $5,000 and $0 in disposition fees to the Sponsor. |
| *Financing Fee* | Where the Company owns property directly or is the sole owner of an entity that owns property, the Sponsor will receive a financing fee equal to 1% of the amount of each loan placed on a property, whether at the time of acquisition or pursuant to a refinancing. This financing fee will be in addition to any fees paid to third parties, such as mortgage brokers. |
|  | Where property is owned by an entity in which there is another financial partner – a joint venture – the Sponsor may be entitled to a similar financing fee to the extent negotiated with the financial partners in such joint venture, which could be higher than the 1% financing fee for direct investment. However, the Company's cost of the fee will not exceed 1% of the Company's share of the loan. |
|  | For the periods December 31, 2025 and December 31, 2024, the Company was deemed to have paid $0 and $14,840, respectively, in financing fees. |
| *Construction Management Fee* | The Sponsor may provide construction management services on behalf of the Company. If so, the Sponsor will be entitled to a construction management fee equal to 7.5% of the actual construction costs. |
|  | For the periods ending December 31, 2025 and December 31, 2024, the Company paid $0 and $0, respectively, in construction management fees to the Sponsor. |
| *Other Fees* | The Company or Project Entities may engage the Sponsor or its affiliates to perform other services. The compensation paid to the Sponsor or its affiliates in each case must be (i) fair to the Company and the Project Entities, (ii) comparable to the compensation that would be paid to an unrelated party, and (iii) disclosed to Investors. This includes a property level asset management fee up to 2% of the effective gross income (monthly rents) received from each real estate project owned by a Project Entity, of which a portion is allocated to each owner of such Project Entity. |
|  | For the periods ending December 31, 2025 and December 31, 2024, the Sponsor received a total of $107,559 and $72,611, respectively, in property level asset management fees from Project Entities. |

---

**Timing of Payments of Fees and Expense Reimbursements**

The compensation paid by the Company to the Manager and the Sponsor during each stage of the Company's trajectory are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| *Stage* | *Compensation to<br> Manager* | *Amount of<br> Compensation to<br> Manager* | *Compensation to<br> Sponsor* | *Amount of<br> Compensation to<br> Sponsor* |
| Organization | ● Marketing Expense Reimbursement (Pre-Qualification)<br> ● Asset Management Fee | ● Up to $125,000 <br> ● 2% of total amount of investment capital raised (waived) | ● Acquisition/ Developer Fee<br> ● Financing Fee | ● 6-8% of total investment amount of capital raised<br> ● 1% of total loan value |
| Asset Acquisition Stage | ● Asset Management Fee | ● 2% of total amount of investment capital raised (waived) | ● Acquisition/ Developer Fee<br> ● Financing Fee<br> ● Property Level Asset Management Fee<br> ● Construction Management Fee | ● 6-8% of total asset acquisition cost<br> ● 1% of total loan value<br> ● 0-2% of effective gross income received each real estate project owned by a Project Entity<br> ● 0-7.5% of actual construction costs |
| Operation Stage | ● Asset Management Fee | ● 2% of total amount of investment capital raised (waived) | ● Acquisition/ Developer Fee<br> ● Financing Fee<br> ● Property Level Asset Management Fee<br> ● Construction Management Fee<br> ● Disposition Fee | ● 6-8% of total asset acquisition cost<br> ● 1% of total loan value<br> ● 0-2% of effective gross income received each real estate project owned by a Project Entity<br> ● 0-7.5% of actual construction costs<br> ● 1% of property sale price |
| Liquidation Stage | ● None | ● None | ● Disposition Fee | ● 1% of property sale price |

---

**Other Compensation**

The Sponsor is entitled to share in certain distributions by the Company, which we refer to as the "Promoted Interest." We divide distributions into two categories: distributions of ordinary operating cash flow, if any, and distributions of the net proceeds from "capital transactions". Distributions of net proceeds from capital transactions are paid in three stages: first, after owners of the Class A Investor Shares have received a 7% preferred return on their investment, the Sponsor is entitled to a catchup return equal to approximately 53.85% of the preferred return paid to owners of the Class A Investor Shares. Second, after owners of the Class A Investor Shares have received their preferred return and the Sponsor has received its catchup return, the Sponsor is entitled to 35% of the remaining profits. Third, after the holders of the Class A Investor Shares have received a 12% preferred return on their investment, the Sponsor is entitled to 50% of the remaining profits.

If the Manager (or other affiliates of our Sponsor) purchase Class A Investor Shares, they will be entitled to their pro rata share of the distributions paid to Investors.

**Reports to Investors**

The Company files this annual report which provides the owners of Class A Investor Shares details of the fees paid by the Company to the Sponsor, the Manager and their affiliates.

**Clawback**

If, upon the liquidation of the Company, the owners of the Class A Investor Shares other than the Manager, the Sponsor, and their affiliates have not received distributions sufficient to return their capital contributions plus a 7% cumulative, non-compounded annual return, the Manager, the Sponsor, and their affiliates will be required to return any distributions (but not fees), they have received from the Company over and above their actual contributed capital, in an amount such that the Company can distribute the shortfall to the owners of the Class A Investor Shares other than the Manager, the Sponsor, and their affiliates.

**Method of Accounting**

The compensation described in this section was calculated using the accrual method of accounting.

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

The following table sets forth the beneficial ownership of our common and Class A Investor shares as of December 31, 2025 for each person or group that holds more than 10% of our common shares, for each executive officer of our Manager and for the executive officers of our Manager as a group. To our knowledge, each person that beneficially owns our common shares has sole voting and disposition power with regard to such shares.

**Name of Beneficial Owner**

***Common Shares***

 ****

DiversyFund, Inc.'s ownership of the Common Shares does not constitute an economic ownership interest in the Company. In contrast, the Class A Shares entitle investors to a pro rata ownership interest in the Company and its underlying real estate assets. Instead, the Common Shares entitle the Sponsor solely to a contingent profit interest, referred to as the "Promoted Interest."

---

| | | |
|:---|:---|:---|
| *Common Shares* | *Number of<br> Shares* | *Percent of<br> Class* |
| DiversyFund, Inc.\* |  |  |
| &nbsp;&nbsp;&nbsp;750 B Street |  |  |
| &nbsp;&nbsp;&nbsp;Suite 1930 |  |  |
| &nbsp;&nbsp;&nbsp;San Diego, CA. 92101 | 1000000 | 100% |
| DF Manager, LLC |  |  |
| &nbsp;&nbsp;&nbsp;750 B Street |  |  |
| &nbsp;&nbsp;&nbsp;Suite 1930 |  |  |
| &nbsp;&nbsp;&nbsp;San Diego, CA. 92101 | 0 | 0% |
| Alan Lewis |  |  |
| &nbsp;&nbsp;&nbsp;750 B Street |  |  |
| &nbsp;&nbsp;&nbsp;Suite 1930 |  |  |
| &nbsp;&nbsp;&nbsp;San Diego, CA. 92101 | 0 | 0% |
| Craig Cecilio |  |  |
| &nbsp;&nbsp;&nbsp;750 B Street |  |  |
| &nbsp;&nbsp;&nbsp;Suite 1930 |  |  |
| &nbsp;&nbsp;&nbsp;San Diego, CA. 92101 | 0 | 0% |

---

---

| | | |
|:---|:---|:---|
| ***Class A Investor Shares*** | | |
| Unrelated Investors | 6512839 | 100% |

---

\* DiversyFund, Inc., the Sponsor, is controlled by Mr. Lewis and Mr. Cecilio.

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

The Company has entered into a Management Agreement with the Manager pursuant to which the Manager provides management and asset management services. Under the Management Agreement, the Company pays the Manager certain fees as described in "Compensation of Management". The Manager is an affiliate of our Sponsor, DiversyFund, Inc. and therefore the amount of fees and the other terms of the Management Agreement were determined among related parties and not at arm's-length.

The Sponsor, the Manager, Mr. Cecilio, Mr. Lewis, and parties related to them may also invest in the Company by purchasing Class A Investor Shares, along with other Investors.

The Sponsor and Manager do not own any real estate assets, directly or indirectly, in any affiliated entity including in the Company, other REITs and various single-asset offerings. DiversyFund, Inc. functions only as the sponsor of the real estate assets owned by Company affiliates such as the REITs. The Sponsor does, however, receive a contingent profit interest through the Common Shares in exchange for its role as sponsor, which contingent profit interest is often referred to as a "carried interest" or a "promote". The Promoted Interest is payable to the Sponsor only and not to stockholders of the Sponsor or to its founders, Mr. Cecilio or Mr. Lewis. Additionally, Mr. Cecilio and Mr. Lewis, do not own any real estate assets, directly or indirectly, in any affiliated entity including in the Company, the REITs and various single-asset offerings.

**Item 7. Financial Statements**

**DF Growth REIT, LLC**

Index

---

| | |
|:---|:---|
|  | **Page** |
| [Independent Auditor's Report](#fin_001) | F-2 |
| [Consolidated Balance Sheet](#fin_002) | F-4 |
| [Consolidated Statement of Operations](#fin_003) | F-5 |
| [Consolidated Statement of Members' Equity](#fin_004) | F-6 |
| [Consolidated Statement of Cash Flows](#fin_005) | F-7 |
| [Notes to the Consolidated Financial Statements](#fin_006) | F-8-F-20 |

---

![](ea028848001_img1.jpg)

Costa Mesa, Ca

Tel: 240.270.4721

**<u>Independent Auditors' Report</u>**

The Shareholders and Management

DF Growth REIT, LLC

**Report on the Audit of the Financial Statements**

**Opinion**

We have audited the accompanying financial statements of DF Growth REIT, LLC (a Delaware limited liability company, taxed as a corporation),which comprise the balance sheet as of December 31, 2025 and 2024 and the related statements of operations, Member's equity, and cash flows for the year then ended, and the related notes (collectively referred to as the "financial statements").

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of DF Growth REIT, LLC as of December 31, 2025, and 2024, and the results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of DF Growth REIT, LLC and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

**Responsibilities of Management for the Financial Statements**

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, which raise substantial doubt about DF Growth REIT, LLC's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.

**Auditor's Responsibilities for the Audit of the Financial Statements**

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements, including omissions, are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards, we:

● Exercise professional judgment and maintain professional skepticism throughout the audit.

● Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of DF Growth REIT, LLC's internal control. Accordingly, no such opinion is expressed.

● Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

● Conclude whether, in our judgment, there are conditions or events considered in the aggregate, that raise substantial doubt about DF Growth REIT, LLC's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

**Other Information Included in the Annual Report**

Management is responsible for the other information included in the annual report. The other information comprises the Management's Discussion and Analysis of Financial Condition and Results of Operations but does not include the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

/s/ Claude Etinoff & Associates LLC

Costa Mesa, CA

April 26, 2026

**DF Growth REIT, LLC**

**Consolidated Balance Steet**

**As of December 31**

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| ASSETS |  |  |
| Investments in rental real estate properties, net of accumulated depreciation | $65160574 | $68054629 |
| Investment in Joint Ventures | 7362521 | 8842521 |
| Real estate equity investments | 11677061 | 10255309 |
| Real estate debt investments | 1221369 | 804069 |
| Cash and cash equivalents | 87920 | 1953984 |
| Restricted cash and cash equivalents - Investment in Joint Ventures | 123995 | 296404 |
| Related party receivables | 1101139 | 1128256 |
| Interest receivable | 69354 | 276150 |
| Notes and accounts receivable, net | 758641 | 326379 |
| Other assets | 3848508 | 2401949 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL ASSETS | $91411081 | $94339650 |
| LIABILITIES AND EQUITY |  |  |
| LIABILITIES |  |  |
| Notes payable, net of unamortized loan fees | $47514872 | $44352056 |
| Accounts payable and accrued expenses | 1967191 | 3330213 |
| Rental security deposits and other liabilities | 73903 | 112073 |
| Prepaid rents | 107757 | 165234 |
| Interest payable | 1207504 | 11235 |
| Dividends payable | 1100471 | 1113382 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL LIABILITIES | $51971698 | $49084193 |
| MEMBER'S EQUITY |  |  |
| Class A shares $10.00 par value; 7,500,000 shares authorized; 6,511,395 shares issued and outstanding, net of offering costs as of December 31, | $65113948 | $65113948 |
| Subscription receivables |  | (222857) |
| Accumulated deficit | (31175926) | (24436133) |
| Non-controlling interest | 5501361 | 4800499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL MEMBER'S EQUITY | 39439383 | 45255457 |
| TOTAL LIABILITIES AND MEMBER'S EQUITY | $91411081 | $94339650 |

---

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

**DF Growth REIT, LLC**

**Consolidated Statement of Operations**

**For the year ended December 31**

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| REVENUES |  |  |
| Rental property revenues | $10501657 | $8210024 |
| Interest income | 86222 | 854726 |
| Realized investment income | 435144 |  |
| Property sale revenue |  |  |
| Other income | 478843 | 822375 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL REVENUE | $11501866 | $9887124 |
| EXPENSES |  |  |
| Operating expenses |  |  |
| Depreciation and amortization | $3007670 | $3963418 |
| Property operating and maintenance | 3300197 | 2093546 |
| Real estate taxes | 1343359 | 1237506 |
| Bad debt rent | 26498 | 11597 |
| Unrealized loss on equity investments | 593452 | 973491 |
| Realized investment loss |  | 1337307 |
| Interest expense | 4602957 | 4615054 |
| General and administrative expenses | 5367527 | 4855785 |
| &nbsp;&nbsp;&nbsp;Total Operating expenses | $18241660 | $19087704 |
| Investing Expenses | - | 15000 |
| &nbsp;&nbsp;&nbsp;Total Investing Expenses | $- | $15000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TOTAL EXPENSES | $18241660 | $19102704 |
| NET (LOSS) GAIN | $(6739794) | $(9215580) |
| (Loss) Gain attributed to non-controlling interest | 700862 | 1268203 |
| (Loss) Attributed gain DF Growth REIT, LLC | $(6038932) | $(7947377) |

---

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

**DF Growth REIT, LLC**

**Consolidated Statement of Members' Equity**

**For the year ended December 31**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Class A Investor Shares | Class A Investor Shares | Subscription | Accumulated | Noncontrolling | Total |
| 31-Dec-23 | Shares | Amount | Receivable | Deficit | Interest | Equity |
| Proceeds from issuance of class A shares | 6511395 | $65113948 | $(222857) | $(15220552) | $3585013 | $53255552 |
| Distributions declared on class A shares |  |  |  |  |  |  |
| Non Controlling Interest |  |  |  |  | (52717) | (52717) |
| Net gain (loss) | - | - |  | (9215580) | 1268202 | (7947378) |
| Balance as of December 31, 2024 | 6511395 | $65113948 | $(222857) | $(24436132) | $4800498 | $45255458 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Class A Investor Shares | Class A Investor Shares | Subscription | Accumulated | Noncontrolling | Total |
| 31-Dec-24 | Shares | Amount | Receivable | Deficit | Interest | Equity |
| Proceeds from issuance of class A shares | 6511395 | $65113948 | $(222857) | $(24436132) | $4800498 | $45255458 |
| Distributions declared on class A shares |  |  | 222857 |  |  | 222857 |
| Non Controlling Interest |  |  |  |  |  |  |
| Net gain (loss) | - | - | - | (6739794) | 700862 | (6038932) |
| Balance as of December 31, 2025 | 6511395 | $65113948 | $- | $(26941677) | $5501360 | $39439383 |

---

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

**DF Growth REIT, LLC**

**Consolidated Statement of Cash Flows**

**For the period from January 1, through December 31**

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| OPERATING ACTIVITIES: |  |  |
| Net income | $(6038932) | $(7947377) |
| Adjustments to reconcile net loss to net |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 2340597 | 3537337 |
| &nbsp;&nbsp;&nbsp;Amortization on debt issuance costs | 577838 | 426081 |
| &nbsp;&nbsp;&nbsp;Capitalized interest |  |  |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Notes and accounts receivable | 4666510 | (132885) |
| &nbsp;&nbsp;&nbsp;Interest receivable | (206797) | (494838) |
| &nbsp;&nbsp;&nbsp;Prepaids and other assets | 1446561 | 2079406 |
| &nbsp;&nbsp;&nbsp;Related party receivables | (27117) | 8353 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 131438 | (131438) |
| &nbsp;&nbsp;&nbsp;Rental security deposits | 76853 | (76853) |
| &nbsp;&nbsp;&nbsp;Other liabilities | 563397 | (465379) |
| Net cash provided by (used in) operating activities | $3530348 | $(3197593) |
| INVESTING ACTIVITIES: |  |  |
| Investment in real estate equity investments | $(2804820) | $(6931107) |
| Proceeds from sale of real estate properties | 5998736 | 12819000 |
| Repayment of real estate properties |  | 1325763 |
| Investment in Joint Venture - Development | (1480000) | 1500000 |
| Investment in equity method investees | 1421752 | 1266234 |
| Investment in real estate debt investments | 417300 | 690209 |
| Distributions to sponsor |  | (128147) |
| Proceeds from sale of equity method investees | 1856896 | - |
| Net cash used in investing activities | $5409864 | $10541952 |
| FINANCING ACTIVITIES: |  |  |
| Proceeds from the issuance of Class A shares | $(222857) | $- |
| Proceeds from notes payable |  |  |
| Payment on notes payable | (9463599) | (10275820) |
| Payment on loan fees associated with new debt | (1828811) | (207108) |
| Payments made to investors for dividends | 536582 | (525872) |
| Net cash provided by financing activities | $(10978685) | $(11008800) |
| Net increase in cash and cash equivalents | $(2038472) | $(3664441) |
| Cash and cash equivalents, beginning of period | $2250388 | $5914829 |
| Cash and cash equivalents, end of period | $211916 | $2250388 |
| SUPPLEMENTAL DISCLOSUREOF CASH FLOW INFORMATION: |  |  |
| Cash paid during the year for interest | $3972257 | $4615054 |
| Cash paid during the year for real estate taxes | $793359 | $1237506 |

---

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

**DF Growth REIT, LLC**

**Notes to Consolidated Financial Statements**

**December 31, 2025, and 2024**

**Note 1 – Formation and Organization**

DF Growth REIT, LLC (the "Company") is a Delaware corporation formed on July 16, 2018, that attempts to build wealth by investing in cash-flowing apartment buildings along with single and multifamily properties. Our focus is on long-term capital appreciation from the renovation and repositioning of these multifamily properties. The use of the terms "Company," "we," "us," or "our" in this Consolidated Financial Statements refer to DF Growth REIT, LLC, unless the context indicates otherwise. We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"), commencing with our taxable year ending December 31, 2019.

The Company is externally managed by DF Manager, LLC, ("Manager"), which is a subsidiary of the Company's sponsor, DiversyFund, Inc. ("Sponsor").

Pursuant to the Form 1-A filed with the SEC with respect to our offering (the "Offering") of up to $75,000,000 in shares of class A shares, the purchase price for all shares was $10.00 per share as of December 31, 2025, and 2024. The Offering was qualified by the SEC on November 13, 2018, and we commenced operations on November 13, 2018. As of December 31, 2025, we had issued 6,511,395 shares of our class A shares for an aggregate purchase price of $65,113,948. The Company has the authority to issue up to 7,500,000 shares of class A shares.

**Note 2 – Summary of Significant Accounting Policies**

*Cash and Cash Equivalents and restricted cash.*

 

Cash and cash equivalents with original maturities of three months or less consist of demand deposits. Cash and cash equivalents are carried at a cost which approximates fair value. Cash and highly liquid financial instruments restricted to our long-term purposes are excluded from this definition.

Restricted cash is subject to a legal or contractual restriction by third parties as well as a restriction as to withdrawal or use, including restrictions that require the funds to be used for a specified purpose and restrictions that limit the purpose for which the funds can be used. The Company considers cash pledged as collateral for investments in joint ventures to be restricted cash.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the statements of financial position to the sum of the corresponding amounts within the statements of cash flows:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Cash and cash equivalents | $87920 | $1953984 |
| Restricted Cash | $123995 | $296404 |
| Total | $211916 | $2250388 |

---

 

*Use of Estimates*

 

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual events and results could differ from those assumptions and estimates.

 

*Principles of Consolidation Note*

 

The consolidated financial statements include the accounts of DF Growth REIT LLC and the following subsidiaries in which REIT has a controlling financial interest as of December 31, 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Subsidiary | Property Name | Ownership entity | % Ownership | Year Acquired |
| Park Blvd, LLC | Onyx on Park Blvd | DF Growth REIT | 84.56% | 2017 |
| 524 SW St Lucie, LLC | The France | DF Growth REIT | 100.00% | 2020 |
| 201 SW Joan Jefferson Way, LLC | Azul | DF Growth REIT | 97.82% | 2021 |
| North Charleston Townhomes, LLC | Avalon 1 / Willow Ridge | DF Growth REIT | 93.32% | 2021 |
| Mission Villas SA, LLC | Mission Villas | DF Growth REIT | 78.41% | 2021 |
| P10 - HGH Village Creek, LLC | Village Creek | DF Growth REIT | 95.81% | 2022 |

---

The consolidated financial statements include 100% of each subsidiary's assets, liabilities, operations, and cash flows, with the interests not owned by REIT reflected as "noncontrolling interests in subsidiaries". All significant inter-company accounts and transactions have been eliminated in consolidation.

 

*Concentration of Credit Risk*

 

At times, our cash may exceed the Federal Deposit Insurance Corporation deposit insurance limit of $250,000 per institution. The Company mitigates credit risk by placing cash with major financial institutions. To date, the Company has not experienced any losses on cash.

 

*Geographic concentration*

 

As of December 31, 2025, and 2024, the Company's investments in real estate operate in California, Texas, South Carolina, and Florida. Future operations could be affected by changes in economic or other conditions in those geographical areas or the demand for such housing.

 

*Variable Interest Entities and Voting Interest Entities*

 

A variable interest entity ("VIE") is an entity that lacks one or more of the characteristics of a voting interest entity. A VIE is defined as an entity in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The determination of whether an entity is a VIE includes consideration of various factors. These factors include review of the formation and design of the entity, its organizational structure including decision-making ability and relevant financial agreements, and analysis of the forecasted cash flows of the entity. We make an initial determination upon acquisition of a VIE and reassess the initial evaluation of an entity as a VIE upon the occurrence of certain events.

A VIE must be consolidated only by its primary beneficiary, which is defined as the party who, along with its affiliates and agents has both the: (i) power to direct the activities that most significantly impact the VIE's performance; and (ii) obligation to absorb the losses of the VIE or the right to receive the benefits from the VIE, which could be significant to the VIE. We determine whether we are the primary beneficiary of a VIE by considering various factors, including, but not limited to: which activities most significantly impact the VIE's economic performance and which party controls such activities; the amount and characteristics of its investment; the obligation or likelihood for us or other interests to provide financial support; consideration of the VIE's purpose and design, including the risks the VIE was designed to create and pass through to its variable interest holders and the similarity with and significance to the business activities of our interest and the other interests. We reassess our determination of whether we are the primary beneficiary of a VIE each reporting period. Significant judgments related to these determinations include estimates about the future performance of investments held by VIEs and general market conditions. The maximum risk of loss related to our investments is limited to our recorded investment in such entities, if any.

A voting interest entity ("VOE") is an entity in which equity investors have the characteristics of a controlling financial interest and has sufficient equity at risk to finance its activities. A controlling financial interest exists if limited partners with equity at risk are able to exercise substantive kick-out rights or are able to exercise substantive participation rights. Under the VOE model, generally, only a single limited partner that is able to exercise substantial kick-out rights will consolidate the entity.

As of December 31, 2025 and 2024, the Company held investments in four entities which were evaluated under the VIE model and were not consolidated because the Company was not determined to be the primary beneficiary. These investments are carried on the equity method because of the Company's significant influence.

*Income Taxes*

 

The Company operates and is taxed as a REIT for federal income tax purposes for the year ended December 31, 2025 and 2024. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its taxable income to its stockholders. As a REIT, the Company generally is not subject to federal corporate income tax on that portion of its taxable income that is currently distributed to stockholders. The Company may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. No material provisions have been made for federal income taxes in the accompanying financial statements, and no gross deferred tax assets or liabilities have been recorded as of December 31, 2025, and 2024. As of December 31, 2025 and 2024, $0, and $0 respectively in cash distributions have been declared to stockholders.

All tax periods since inception remain open to examination by the major taxing authorities in all jurisdictions where we are subject to taxation.

*Revenue Recognition*

 

Rental income is recognized as rentals become due. Rental payments received in advance are deferred until earned. All leases between the Company and tenants of the property are operating leases and are one year or less.

For certain properties, in addition to contractual base rent, the tenants pay their share of utilities to the Company. The income and expenses associated with these properties are generally recorded on a gross basis when the Company is the primary obligor. For the year ended December 31, 2025 and 2024, the Company did not record any reimbursements of expenses.

Tenant fees, such as application fees, administrative fees, late fees, and other revenues from tenants are recorded when amounts become due.

*Purchase Accounting for Acquisitions of Real Estate*

 

Effective November 13, 2018, (Inception) the Company adopted the provisions of Accounting Standard Update 2017-01, which provides that if substantially all the fair value of the gross assets is concentrated in any individual asset, the acquisition is treated as an asset acquisition as opposed to a business combination. Under an asset acquisition, costs directly related to the acquisition are capitalized as part of the purchase consideration. The fair value of the purchase consideration is then allocated based on the relative fair value of the assets. The estimates of the fair value of the purchase consideration and the fair value of the assets acquired are consistent with the techniques used in a business combination.

*Accounting for Long-Lived Assets and Impairment of Real Estate Owned*

 

The Company reviews its real estate portfolio on a quarterly basis to ascertain whether there are any indicators of impairment to the value of any of its real estate assets, including deferred costs and intangibles, to determine if there is any need for an impairment charge. In reviewing the portfolio, the Company examines one or more of the following: the type of asset, the current financial statements or other available financial information of the asset, and the economic situation in the area in which the asset is located. For each real estate asset owned for which indicators of impairment exist, management performs a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to the asset to it carrying amount. If the aggregate undiscounted cash flows are less than the asset's carrying amount, an impairment loss is recorded to the extent that the estimated fair value is less than the asset's carrying amount. The estimated fair value is determined by using a discounted cash flow model of the expected future cash flow through the useful life of the property. The analysis includes an estimate of the future cash flows that are expected to result from the real estate investment's use and eventual disposition. These cash flows consider factors such as expected future operating income, trends and prospects, the effects of leasing demand, competition, and other factors.

*Allowance for Doubtful Accounts*

 

The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of a tenant to make the required rent payments. On December 31, 2025, and 2024, there was a $659,330, and $326,279 balance respectively in the allowance for doubtful accounts. The Company records bad debt expense as part of operating expenses.

*Advertising costs*

 

The Company's policy is to expend advertising costs when incurred. There were no such costs incurred for the year ending December 31, 2025, and 2024.

 

*Deferred Financing Costs*

 

Mortgage costs are capitalized and amortized using the straight-line method which management does not believe is materially different from the effective interest rate method, over the terms of the respective debt obligations. At December 31, 2025, and 2024, deferred financing costs amounted to $577,838, and $325,475, respectively, net of accumulated amortization. Amortization of such costs is included in interest expense and approximate $2,215,278, and $2,793,116 respectively, in 2025, and 2024. The Company presents unamortized deferred financing costs as a direct deduction from the carrying amount of the related debt liability.

 

*Fair Value*

 

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of input that may be used to measure fair values:

Level 1 — Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2 — Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 — Significant unobservable inputs that reflect a company's own assumptions about the assumptions that market participants would use in pricing an asset or liability.

*Fair Value Option*

 

ASC 825 "Fair Value Option for Financial Assets and Financial Liabilities" ("ASC 825") provides a fair value option election that allows companies to irrevocably elect fair value as the initial and subsequent measurement attribute for certain financial assets and liabilities. ASC 825 permits the fair value option election on an instrument- by-instrument basis at initial recognition. We have decided not to make this election.

*Construction in Progress*

 

As the company does possess investments in real estate development projects we must account for construction in progress. The Company's accounting policy on these investments is that any costs directly related to the development or construction of the asset be capitalized until the point where the asset has the ability to derive revenue through either property rents or the disposition of the asset. Examples of capitalized costs incurred have been interest on construction loans, construction costs, and property taxes. The Company currently has no real estate investments in the development phase that utilizes construction in progress.

*Recent Accounting Guidance*

 

In June 2016, FASB issued Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326).

ASU 326 is applicable to all financial instruments that are not accounted for at fair value through net income, thereby bringing consistency in accounting treatment across different types of financial instruments and requiring consideration of a broader range of variables when forming loss estimates. Although this change affects any entity holding financial instruments, the financial services industry by its nature bears the most exposure.

Measurement of Credit Losses on Financial Instruments requires entities that extend credit to forecast into the foreseeable future to predict losses over the life of a loan and then immediately book those losses.

The updated guidance is designed to provide more timely reporting of credit losses, but measuring losses is challenging in today's uncertain, inflationary marketplace. It primarily affects banks and other financial institutions. However, any company that has trade receivables, notes receivable, investments in held-to-maturity debt securities, or contract assets will be affected. The guidance is applicable to financial assets measured at amortized cost, net investments in leases recognized by a lessor in accordance with ASC 842.

This standard is effective for fiscal years beginning after December 15, 2022, with early application permitted. This ASC requires Organizations to adopt the new current expected credit losses (CECL) methodology for estimating allowances for credit losses. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations and cash flow.

**Note 3 – Cash and Cash equivalents.**

Cash and cash equivalents include cash on hand, cash on deposit, and money market accounts. The Company considers short-term highly liquid investments with an original maturity date of three months or less that are not part of an investment pool to be cash equivalents. The Company invests its excess cash in various types of short-term investments. The Company has established guidelines related to diversification and maturities that maximize safety and liquidity. These guidelines are periodically reviewed and modified to take advantage of trends in yields and interest rates. At December 31, 2025, and 2024, the Company's balances exceeded federally insured limits by approximately $0 and $1,138,509, respectively.

**Note 4 – Investment and depreciation in real estate properties.**

Real estate assets are stated at depreciated costless impairment, if any. Buildings are depreciated over their estimated useful lives of 30 years. The life of a particular building depends upon a number of factors including whether the building was developed or acquired and the condition of the building upon acquisition. The Company uses the straight-line method for all depreciation and amortization.

The following table details the allocation of the purchase price, capital improvements, and accumulated depreciation for the Company's acquisitions of real estate during the period from November 13, 2018 (inception) through December 31, 2025 and 2024.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | |  | | | | 2025 |
| Description of Property | Land | Asset life | Capital Improvements | Building | Accumulated Depreciation | Total |
| France Apartments | $775820 | 30 years | $1208000 | $3474500 | $(587360) | $4870960 |
| Azul Luxury residences | 1063740 | 30 years | 3175851 | 14436260 | (2374667) | 16301184 |
| Avalon 1 (Willow Ridge) | 2030000 | 30 years | 97185 | 20045000 | (2925647) | 19246538 |
| Mission Villas | 348250 | 30 years | 2379247 | 9994906 | (3253358) | 9469045 |
| Village Creek | 3051629 | 30 years | 4100022 | 11498371 | (3377175) | 15272847 |
| 2025 | $7269439 |  | $10960305 | $59449037 | $(12518207) | $65160574 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | |  | | | | 2024 |
| Description of Property | Land | Asset life | Capital Improvements | Building | Accumulated Depreciation | Total |
| France Apartments | $775820 | 30 years | $1208000 | $3474500 | $(463266) | $4995054 |
| Azul Luxury residences | 1063740 | 30 years | 5661459 | 14436260 | (1884734) | 19276725 |
| Avalon 1 (Willow Ridge) | 2030000 | 30 years | 97185 | 20045000 | (4342392) | 17829793 |
| Mission Villas | 348250 | 30 years | 2379247 | 9994906 | (1072690) | 11649713 |
| Village Creek | 3051629 | 30 years | 4100022 | 11498371 | (4346678) | 14303344 |
| 2024 | $7269439 |  | $13445913 | $59449037 | $(12109760) | $68054629 |

---

*Minimum Future Rents*

 

The rental properties, owned at December 31, 2025, and 2024, are principally leased under 12-month operating leases with certain tenant renewal rights.

*Credit Quality Monitoring*

 

The Company's preferred equity investments that earn interest based on debt-like terms are typically secured by interests in entities that have interests in real estate. The Company evaluates its debt investments at least quarterly and differentiates the relative credit quality principally based on: (i) whether the borrower is currently paying contractual guaranteed preferred equity payments in accordance with its contractual terms; and (ii) whether the Company believes the borrower will be able to perform under its contractual terms in the future, as well as the Company's expectations as to the ultimate recovery of principal at maturity. The Company considered an investment for which it expects to receive full payment of contractual principal and interest payments as "performing." As of December 31, 2025 and 2024, the investments are considered to be performing and no allowance for loan loss has been recorded. In the event that an investment is deemed other than performing, the Company will evaluate the instrument for any required impairment.

**Note 5 - Sale of Real Estate Properties**

There was no sale of real estate properties in 2025. The following table details the allocation of the sale price for the Company's disposition of real estate during the period January 1, 2024 through December 31, 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | Ownership | Contract | Capital | Investment |
| Description of Property | Date Sold | Percentage | Sales Price | Investment | Profit (loss) |
| Cobble Hill (Forth Worth, Texas) | 8/30/2024 | 100.00% | $12819000 | $3623459 | $(1337307) |
| Total Sale of Real Estate Properties in 2024 |  |  | $12819000 | $3623459 | $(1337307) |

---

**Note 6 – Equity Method Investments**

If it is determined that we do not have a controlling interest in a joint venture through our financial interest in a VIE, the equity method of accounting is used. Under the equity method, the investment is originally reported at cost and is adjusted for capital activity including subsequent subscriptions, redemptions, or distributions. As distributions are received from the underlying equity investment, the cost basis of the investment will be reduced. As distribution proceeds surpass the cost basis of the investment, we will then record realized investment gains for the associated equity investment. In 2025, the Company sold 100% of its equity interest in Durant at a gain of $435,144 of realized investment income. The proceeds from the sale were invested into certain portfolio properties for operational expenses and loan paydowns.

The following tables detail the current investments made under the equity method as of December 31, 2025, and 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Description of Property | Date<br> acquired | Ownership<br> Percentage | Real Estate<br> Purchase Price | Terms of<br> Payment | Investment<br> Amount |
| Swaying Oaks |  |  |  |  |  |
| San Antonio, TX | 3/11/2022 | 46.20% | $9032500 | Cash | $1627996 |
| The Independent |  |  |  |  |  |
| Sand City, CA | 3/22/2023 | 43.58% | $20000000 | Cash | $3579654 |
| Avalon 2 (aka NCP Dove) |  |  |  |  |  |
| North Charleston, SC | 12/10/2021 | 31.07% | $46370000 | Cash | $4666974 |
| 3922 Park Blvd \* |  |  |  |  |  |
| San Diego, CA | 1/4/2024 | 12.11% | $41010000 | Cash | $1802437 |
| Totals for 2025 |  |  | $116412500 |  | $11677061 |

---

\* Real estate purchase price for 3922 Park Blvd is based on third party appraisal on an as-stabilized basis from September 2025 now that construction was completed in 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Description of Property | Date<br> acquired | Ownership<br> Percentage | Real Estate<br> Purchase Price | Terms of<br> Payment | Investment<br> Amount |
| Swaying Oaks |  |  |  |  |  |
| San Antonio, TX | 3/11/2022 | 45.14% | $9032500 | Cash | $1261883 |
| The Independent |  |  |  |  |  |
| Sand City, CA | 3/22/2023 | 44.20% | $20000000 | Cash | $3749753 |
| Avalon 2 (aka NCP Dove) |  |  |  |  |  |
| North Charleston, SC | 12/10/2021 | 31.07% | $46370000 | Cash | $4390297 |
| Durant |  |  |  |  |  |
| Berkeley, CA | 6/16/2022 | 31.67% | $5900000 | Cash | $853377 |
| Totals for 2024 |  |  | $81302500 |  | $10255310 |

---

**Note 7– Commercial Real Estate Debt Investments**

As of December 31, 2025, and 2024, our debt related investment was not considered impaired, and no impairment charges were recorded in the financial statements. We believe the fair value of the debt investment reasonably approximates the carrying value of the debt investment as of December 31, 2025, and 2024.

The company made a $417,300, and $690,210 respectively in debt investment to NCP Dove for the years ending December 31, 2025 and 2024, respectively. The following table presents the Company's investments in debt securities, as of December 31, 2025, and 2024.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Asset Type | Number | Original Principal Amount<br> or Cost | Carrying Value | Average Investment Return | Allocation by Investment Type |
| Residential properties - Balance as of December 31, 2023 | 1 | $113859 | $113859 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8% | 100% |
| Avalon 2 (NCP Dove LLC) | 1 | $690210 | $690210 | 8% | 100% |
| Residential properties - Balance as of December 31, 2024 |  | $804069 | $804069 | 8% | 100% |
| Avalon 2 (NCP Dove LLC) | 1 | $417300 | $417300 | 8% | 100% |
| Residential properties - Balance as of December 31, 2025 |  | $1221369 | $1221369 |  |  |

---

*Credit Quality Monitoring*

 

The Company's preferred equity investments that earn interest based on debt-like terms are typically secured by interests in entities that have interests in real estate. The Company evaluates its debt investments at least quarterly and differentiates the relative credit quality principally based on: (I) whether the borrower is currently paying contractual guaranteed preferred equity payments in accordance with its contractual terms; and (ii) whether the Company believes the borrower will be able to perform under its contractual terms in the future, as well as the Company's expectations as to the ultimate recovery of principal at maturity. The Company considered an investment for which it expects to receive full payment of contractual principal and interest payments as "performing." As of December 31, 2025, and 2024, the investments are considered to be performing and no other allowance for loan losses has been recorded. In the event that an investment is deemed other than performing, the Company will evaluate the instrument for any required impairment.

**Note 8 – Related Party Arrangements**

***DF Manager, LLC, Manager***

 ****

Subject to certain restrictions and limitations, the Manager is responsible for managing the Company's affairs on a day-to-day basis and for identifying and making investments on behalf of the Company.

The Manager was not reimbursed for organizational and offering expenses incurred in conjunction with the Offering. The Company will not reimburse the Manager for actual expenses incurred on behalf of the Company in connection with the selection or acquisition of an investment, to the extent not reimbursed by the borrower, whether or not the Company ultimately acquires the investment. The Company will not reimburse the Manager for out-of- pocket expenses paid to third parties in connection with providing services to the Company.

***DiversyFund, Inc., Sponsor***

A portion of the fees paid by a Project Entity to the Sponsor may be allocated to each owner based on ownership percentages at the time of fee payment. Although fees are paid directly to the Sponsor by the Project Entity, the Company is deemed in such instances to have paid to the Sponsor the Company's allocated portion of fees.

The Sponsor charges each project entity (or the Company itself, if the Company owns real estate directly) an acquisition fee of up to 8% of total project costs, including both "hard" (*e.g.*, the cost of property) and "soft" costs (*e.g.,* professional fees). Where property is owned by an entity in which there is another financial partner–a joint venture–the Sponsor may be entitled to a similar acquisition fee to the extent negotiated with the financial partner in such joint venture (which could be higher than the 8% acquisition fee for direct investment). However, the Company's share of the fee will not exceed 8% of the Company's share of the total project costs. For the periods ending December 31, 2025 and December 31, 2024, the Company is deemed to have paid $0 and $179,149 in acquisition and development fees to the Sponsor relating to an Onyx on Park development fee in 2024.

The Sponsor charges each project entity (or the Company itself, if the Company owns real estate directly) a financing fee equal to 1% of the amount of each loan placed on a property, whether at the time of acquisition or pursuant to a refinancing. This financing fee is in addition to any fees paid to third parties, such as mortgage brokers. Where property is owned by an entity in which there is another financial partner–a joint venture–the Sponsor may be entitled to a similar financing fee to the extent negotiated with the financial partners in such joint venture (which could be higher than the 1% financing fee for direct investment). However, the Sponsor's share of the fee will not exceed 1% of the Company's share of the loan. For the periods ending December 31, 2025 and December 31, 2024, the Company is deemed to have paid $0 and $14,480 in financing fees to the Sponsor relating to an unpaid portion of the Azul refinancing fee in 2024.

The Sponsor charges each project entity (or the Company itself, if the Company owns real estate directly) a property disposition fee equal to 1% of the total sale price of each property. Where property is owned by an entity in which there is another financial partner–a joint venture–the Sponsor may be entitled to a similar disposition fee to the extent negotiated with the financial partners in such joint venture (which could be higher than the 1% disposition fee for direct investment). However, the Company's share of the fee will not exceed 1% of the Company's share of the total sale price. For the periods ending December 31, 2025 and December 31, 2024, the Company is deemed to have paid $5,000 and $0 in disposition fees to the Sponsor relating to the Durant disposition fee.

The Sponsor may provide construction management services. If so, the Sponsor will be entitled to a construction management fee equal to 7.5% of actual construction costs. For the periods ending December 31, 2025 and December 31, 2024, the Sponsor was not paid any construction management fees.

If the Sponsor or an affiliate guaranties indebtedness of the Company or a project entity, including guaranties of any so-called "bad boy" carveouts, the guarantor(s) will be entitled to a guaranty fee equal to 0.5% of the loan. For the periods ending December 31, 2025 and December 31, 2024, the Sponsor was not paid any guaranty fees.

The Company or project entities may engage the Sponsor or its affiliates to perform other services. The compensation paid to the Sponsor or its affiliates in each case must be (i) fair to the Company and the project entities, (ii) comparable to the compensation that would be paid to an unrelated party, and (iii) disclosed to Investors. This includes a property level asset management fee up to 2% of the effective gross income (monthly rents) received from each real estate project owned by a Project Entity, of which a portion is allocated to each owner of such Project Entity. For the periods ending December 31, 2025 and December 31, 2024, the Sponsor received an annual total of $107,559 and $72,611 respectively, from Project Entities in property level asset management fees.

**Executive Officers of our Manager and Sponsor**

As of the date of this Audit Report, our executive officers are as follows:

 ****

---

| | |
|:---|:---|
| Name | Position |
| **Craig Cecilio** | Chief Executive Officer |
| **Alan Lewis** | Chief Investment Officer |

---

 

***Craig Cecilio*** has served as our Chief Executive Officer of our Sponsor and Manager since its inception.

 ****

***Alan Lewis*** has served as the Chief Investment Officer of our Sponsor and Manager since its inception.

Some Project Entities into which the Company has made equity or debt investments are considered related parties to the extent that such Project Entity is managed directly by DiversyFund, Inc.

**Related Party Receivable**

 ****

In 2021 the Company made two loans in an aggregate amount of $2,500,000 with an interest rate of 4% to DiversyFund, Inc. DiversyFund, Inc. has repaid $1,775,000 in principal back to the Company leaving a combined principal balance of $725,000 as of December 31, 2024.

The Company made two additional loans to DiversyFund, Inc. in 2023: one for $225,000 in May 2023 and one for $250,000 in July 2023. Each note bears interest at a rate of 7% annually and full payment of principal and interest is due upon maturity.

The Company paid Lex Nova $29,305 related to legal services for DF Growth REIT II, LLC, and DiversyFund Inc. The related party notes receivable as of December 31, 2025, and 2024 are $1,110,139 and $1,119,903, respectively, including accrued interest.

**Note 9 – Economic Dependency**

Under various agreements, the Company has engaged or will engage DF Manager, LLC to provide certain services to the Company, including asset management services, asset acquisition and disposition decisions, the sale of the Company's common shares available for issue, as well as other administrative responsibilities for the Company including accounting services and investor relations. As a result of these relationships, the Company is dependent upon DF Manager, LLC. In the event that these companies were unable to provide the Company with their respective services, the Company would be required to find alternative providers of these services.

**Note 10 – Commitments and Contingencies**

***Legal Proceedings***

The SEC initiated an inquiry of the Company in November 2021 and a related enforcement action in February 2022. The SEC alleged that the Company had failed to comply with two technical requirements of Regulation A in its offering to investors and had included inaccurate statements about the fund on the Company's website. None of the SEC's complaints alleged any intentional wrongdoing or financial or accounting violations, and accurate information about the offering was available to investors at all times. The Company terminated the offering of its shares in 2022 and in its settlement agreement with the SEC dated June 9, 2023, the Company agreed to a permanent suspension of the offering of its shares. No fines or penalties were administered by the SEC. The SEC concluded its investigation of the Company on August 9, 2023, and announced that it recommended no further actions against the Company or any of its affiliates.

In December 2022, attorneys for three investors brought an investor suit against the Company, DF Growth REIT, LLC, DiversyFund, Inc., and Craig Cecilio and Alan Lewis as principals of DiversyFund, Inc. The suit piggybacked on the SEC's claims, alleging that the named investors were misled by DiversyFund, and sought compensation for their losses as well as reimbursement of all attorneys' fees, costs, and interest on those fees. Attorneys also sought to have their claim certified as a class action on behalf of all investors in the Company.

On March 20, 2026, after three years of litigation, the parties entered into a stipulation of dismissal and filed a joint motion to dismiss the action with prejudice. The Court granted the motion, and the case was dismissed in its entirety, with each party bearing its own attorneys' fees and costs. No class was certified in connection with the action.

**Note 11 – Distributions**

No investor dividends were declared in 2025 or 2024. Investor distributions are determined by each shareholder's investment of record each day during the distribution period. The Company declared a dividend to be distributed to each shareholder in 2022, of which $1,100,471, and $1,113,382, were outstanding as of December 31, 2025 and 2024, respectively.

**Note 12 – Notes Payable**

***Secured Senior Notes***

As of December 31, 2025 the Company had $49.3 million outstanding on seven non-recourse mortgage notes. Assets with depreciated carrying values of $77.7 million were pledged as security on these mortgage notes payable.

The following table summarizes the terms of notes payable outstanding at December 31, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Property Secured Notes | Lender | Monthly Debt<br> Service | Interest Rate | Fixed/ Floating | Maturity | 2025 |
| France Apartments | Edgewood Mac V LLC | $33948 | 9.75% | &nbsp;&nbsp;Floating | 3/1/2027 | 3640000 |
| Azul Luxury Residences | Delaware Life Insurance | 44625 | 5.95% | &nbsp;&nbsp;Fixed | 1/7/2027 | 9000000 |
| Azul Luxury Residences | SR Azul LLC | 18667 | 14.00% | &nbsp;&nbsp;Fixed | 1/7/2027 | 1600000 |
| Avalon 1 (aka Willow Ridge) | Benefit Street Partners | 79787 | 7.05% | &nbsp;&nbsp;Floating | 1/6/2026 | 13580835 |
| Avalon 1 (aka Willow Ridge) | Electra Capital | 47438 | 15.18% | &nbsp;&nbsp;Floating | 1/6/2026 | 3750000 |
| Mission Villas | Calmwater | 72535 | 9.15% | &nbsp;&nbsp;Floating | 9/1/2026 | 9426154 |
| Village Creek | Fannie Mae | 36150 | 5.16% | &nbsp;&nbsp;Fixed | 8/1/2030 | 8346693 |
| Subtotal Notes payable |  |  |  |  |  | $49343683 |
| Unamortized Loan Costs |  |  |  |  |  | (1828811) |
| Total Notes Payable |  |  |  |  |  | $47514872 |

---

As of December 31, 2024 the Company had $49.5 million outstanding on seven non-recourse mortgage notes. Assets with depreciated carrying values of $80.1 million were pledged as security on these mortgage notes payable.

The following table summarizes the terms of notes payable outstanding at December 31, 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Property Secured Notes | Lender | Monthly Debt<br> Service | Interest Rate | Fixed/ Floating | Maturity | 2024 |
| France Apartments | Edgewood Mac V LLC | $38397 | 13.00% | &nbsp;&nbsp;Floating | 6/1/2025 | $3640000 |
| Azul Luxury Residences | Delaware Life Insurance | 44625 | 5.95% | &nbsp;&nbsp;Fixed | 1/7/2027 | 9000000 |
| Azul Luxury Residences | SR Azul LLC | 18667 | 14.00% | &nbsp;&nbsp;Fixed | 1/7/2027 | 1600000 |
| Avalon 1 (aka Willow Ridge) | Benefit Street Partners | 91261 | 7.79% | &nbsp;&nbsp;Floating | 7/9/2025 | 13580835 |
| Avalon 1 (aka Willow Ridge) | Electra Capital | 51054 | 15.92% | &nbsp;&nbsp;Floating | 7/9/2025 | 3750000 |
| Mission Villas | Calmwater | 78687 | 10.67% | &nbsp;&nbsp;Floating | 12/1/2025 | 9426154 |
| Village Creek | Fannie Mae | 36784 | 5.16% | &nbsp;&nbsp;Fixed | 8/1/2030 | 8539579 |
| Subtotal Notes payable |  |  |  |  |  | $49536568 |
| Unamortized Loan Costs |  |  |  |  |  | (5184512) |
| Total Notes Payable |  |  |  |  |  | $44352056 |

---

***Restrictive Covenants and Commitments***

The Company is presently in compliance with all debt covenants. These notes and loans payable and security agreements also contain conditions for maintaining debt to tangible net worth in determining the compliance with the debt covenant.

***Debt Maturities***

Future principal payments due on the Company's notes payable at December 31, 2025 are as follows:

---

| | |
|:---|:---|
|  | Future principal<br> payments due |
| 2026 | $26756989 |
| 2027 | 14240000 |
| 2028 |  |
| 2029 |  |
| 2030 | 8346693 |
| &nbsp;&nbsp;&nbsp;Thereafter | - |
| Total | $49343683 |

---

Future principal payments due on the Company's notes payable at December 31, 2024 are as follows:

---

| | |
|:---|:---|
|  | Future principal<br> payments due |
| 2025 | $31597897 |
| 2026 | 1200908 |
| 2027 | 9531046 |
| 2028 | 450046 |
| 2029 | 450046 |
| &nbsp;&nbsp;&nbsp;Thereafter | 6306625 |
| Total | $49536568 |

---

**13 – Subsequent Events**

As of February 26, 2026, the Company entered into a $2.5 million portfolio loan with the lender, Calcon Mutual Mortgage, LLC, with a maturity date of March 1, 2027, a fixed interest rate of 12% and a monthly debt service of $25,000.

As of December 31, 2025, the Company refinanced the Avalon 1 loans for $18.3 million with the lender, NEG Financing 4, LLC, with a maturity date of March 1, 2028, a floating interest rate of 9.755% as of March 1, 2026 and monthly debt service of $148,764.

Events that occur after the balance sheet date, but before the financial statements were available to be issued, must be evaluated for recognition or disclosure. The effects of subsequent events that provide evidence about conditions that existed at the balance sheet date are recognized in the accompanying financial statements. Subsequent events which provide evidence about conditions that existed after the balance sheet date require disclosure in the accompanying notes. Management has evaluated the activity of the Company through April 26, 2026, the date the financial statements were available to be issued.

**Exhibits**

The following Exhibits are filed as part of this Annual Report:

---

| | |
|:---|:---|
| ***Exhibit 1A-2A\**** | [Certificate of Formation](http://www.sec.gov/Archives/edgar/data/1750695/000121390018014225/f1a2018ex1a-2a_dfgrowth.htm) |
| ***Exhibit 1A-2B\**** | [LLC Agreement – The agreement by and among the Company and all of its members captioned "Limited Liability Company Agreement" and dated August 1, 2018.](http://www.sec.gov/Archives/edgar/data/1750695/000121390018014225/f1a2018ex1a-2b_dfgrowth.htm) |
| ***Exhibit 1A-2C\**** | [Authorizing Resolution – The resolution adopted by the Manager creating the Class A Investor Shares.](http://www.sec.gov/Archives/edgar/data/1750695/000121390018014225/f1a2018ex1a-2c_dfgrowth.htm) |
| ***Exhibit 1A-6A\**** | [Investment Agreement – The agreement to be signed by each Investor to acquire a Class A Investor Shares.](http://www.sec.gov/Archives/edgar/data/1750695/000121390018014225/f1a2018ex1a-6a_dfgrowth.htm) |
| ***Exhibit 1A-6B\**** | [Management Agreement – The agreement captioned "Management Services Agreement" by and between the Company and the Manager dated August 1, 2018.](http://www.sec.gov/Archives/edgar/data/1750695/000121390018014225/f1a2018ex1a-6b_dfgrowth.htm) |
| ***Exhibit 1A-8\**** | [Escrow Agreement – The Agreement captioned "Escrow Services Agreement" with Prime Trust, LLC.](http://www.sec.gov/Archives/edgar/data/1750695/000121390018014225/f1a2018ex1a-8_dfgrowth.htm) |

---

**\*** **Previously filed and incorporated by reference.**

**Signatures**

Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| April 30, 2026 | **DF Growth REIT, LLC** | **DF Growth REIT, LLC** |
|  | By: | DF Manager, LLC, as Manager |
|  | By: | DiversyFund, Inc., as Manager |
|  | By | /s/ Craig Cecilio |
|  |  | Craig Cecilio, Chief Executive Officer |

---

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

---

| |
|:---|
| /s/ Alan Lewis |
| Director and Chief Investment Officer of DiversyFund, Inc. |
| April 30, 2026 |

---

---

| |
|:---|
| /s/ Craig Cecilio |
| Director and Chief Executive Officer of DiversyFund, Inc. |
| April 30, 2026 |

---

## Form 1-K Filing Summary

### Filer Information

**Issuer CIK:** 0001750695

**Issuer CCC:** XXXXXXXX

**Is filer a shell company?:** No

**Is this filing by a successor company?:** No

### Submission Contact Information

**Is this a LIVE or TEST Filing?:** LIVE

**Period:** 12-31-2025

### Item 1: Issuer Information (Tab 1 Notification)

**Type of Report:** Annual Report

**Fiscal Year End:** 12-31-2025

**Exact Name of Issuer:** DF Growth REIT, LLC

**CIK:** 0001750695

**Jurisdiction of Incorporation:** DE

**IRS Number:** 83-1263155

**Address:** 750 B STREET, SUITE 1930, SAN DIEGO, CA 92101

**Issuer Phone Number:** 858-430-8528

**Title of each class of securities issued pursuant to Regulation A:** Class A Investor Shares

### Item 2: Ongoing Reporting Requirements

**Is the issuer relying on the relief provided by Rule 257(d) for this filing?** Yes