Belpointe PREP, LLC reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. Total real estate assets increased to $468.9 million, up from $357.0 million at the end of 2023. Total assets rose to $495.7 million, compared to $382.1 million previously. However, the company experienced a substantial increase in debt, netting $144.1 million as of September 30, 2024, compared to $19.7 million at the end of 2023. Total liabilities also surged to $184.7 million from $57.1 million.

The company reported total members’ capital of $310.9 million, a decrease from $325.1 million at the end of 2023. For the three months ended September 30, 2024, rental revenue reached $860,000, an increase of 84% from $468,000 in the same period of 2023. However, total expenses for the quarter rose significantly to $7.8 million, up from $3.8 million, leading to a net loss of $6.9 million, compared to a loss of $3.3 million in the prior year. For the nine months ended September 30, 2024, the net loss was $15.6 million, compared to $10.2 million for the same period in 2023.

The increase in expenses was primarily attributed to property expenses related to the Aster & Links development project, which also contributed to a rise in depreciation and amortization costs. Interest expenses surged to $3.3 million for the quarter, reflecting the company's increased borrowing activities. The company also reported a net cash increase of $3.9 million for the nine months ended September 30, 2024, contrasting with a cash decrease of $105.3 million in the same period of 2023.

Strategically, Belpointe PREP has been active in real estate development, with notable projects including the Aster & Links mixed-use luxury development in Sarasota, Florida, which features 424 residential units and retail space. The company has secured various loans to finance its projects, including a variable-rate construction loan for up to $130 million for Aster & Links, with $84.3 million drawn down as of September 30, 2024.

Overall, while Belpointe PREP has expanded its asset base and revenue streams, it faces challenges with rising expenses and net losses, necessitating careful management of its financial strategies moving forward.