Belpointe PREP, LLC (NYSE American: OZ) reported that its flagship Aster & Links mixed‑use luxury apartment community in downtown Sarasota, Florida, has leased 66% of its 424 residential units, a milestone that brings the project closer to full occupancy and the expected stabilization of rental income.
The leasing pace has accelerated sharply: one‑third of the units were leased in May 2025, over 50% were leased by October 2025, and the current 66% reflects a rapid uptick in demand. The property, completed in 2024, features 60,000 square feet of retail space anchored by Sprouts Farmers Market and OfKors Café, and the lease‑up momentum is supported by the October 2025 refinancing of a $204.14 million loan that is expected to reduce annual debt service costs.
With 66% occupancy, the project is projected to generate an unlevered yield above 6% once fully occupied, improving cash‑flow prospects for the next 12–18 months and reducing the company’s reliance on debt service. The milestone also signals a shift from a development‑stage fund that has historically operated at negative operating income toward an income‑generation phase, potentially enhancing the fund’s overall valuation.
Belpointe PREP’s broader financial picture remains challenging: the company reported a net loss of $23.9 million for the year ended December 31 2024, up from $14.4 million in 2023, and continues to trade at a discount to its net asset value. The company’s pipeline includes more than 2,500 units across four cities, representing an estimated total project cost of over $1.3 billion, but the current leasing progress is a critical step in turning that pipeline into sustainable revenue.
CEO Brandon Lacoff said the leasing momentum “encourages us as we move toward stabilization and reflects the strength of the Sarasota residential market.” He added that the company remains focused on accelerating the remaining 34% of units while managing costs to improve profitability.
Market reaction to the announcement has been muted, with investors continuing to focus on the company’s ongoing profitability challenges and the pace of lease‑up for the remaining units, rather than the positive operational milestone itself.
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