A $2.7 million distribution from the company’s Upper East Side condominium joint venture bolstered first-quarter cash flows.

May 14, 2026

Lightstone Value Plus REIT IV, a non-traded real estate investment trust focused on hospitality and development-related real estate investments, reported its first-quarter 2026 results, showing improved operating performance at its flagship Williamsburg Moxy Hotel in Brooklyn alongside continued progress in winding down its Upper East Side luxury condominium joint venture.

The company posted a net loss of $3.5 million for the three months ended March 31, 2026, a modest improvement from the $3.7 million loss recorded in the same period of 2025. After accounting for losses attributable to its joint venture partner’s noncontrolling interest, the loss attributable to common shareholders came to $2.8 million, or 34 cents per share, compared to $2.9 million, or 36 cents per share, a year earlier.

Moxy Hotel Occupancy and Rates Improve

The Williamsburg Moxy Hotel, the company’s primary operating asset, demonstrated meaningful operational improvements during the quarter. Key performance metrics for the 216-room Marriott-branded property included:

• Occupancy: Climbed to 87 percent from 83 percent in the prior-year period
• Revenue per available room: Rose to $168.59 from $158.66
• Average daily rate: Edged up to $193.15 from $191.13

The property, which opened in March 2023, is held through Bedford Avenue Holdings LLC — a joint venture in which Lightstone REIT IV holds a 75 percent stake and sister REIT Lightstone Value Plus REIT III owns the remaining 25 percent. Lightstone REIT V’s recent annual results reflected similar resilience across the broader Lightstone-sponsored REIT family.

Total hotel revenues came in at approximately $5 million for the quarter, slightly below the $5.1 million reported in the first quarter of 2025. Room revenue grew by about $200,000 to $3.3 million, reflecting the higher occupancy and rate performance. However, food, beverage, and other revenue declined by approximately $300,000 to $1.7 million.

This decline likely reflects ongoing recovery from a December 2024 fire that substantially damaged an outdoor garden food and beverage venue at the property. That venue was fully renovated and reopened during the third quarter of 2025, though the related insurance claim has not yet been finalized. Management indicated it expects additional recoveries from insurance carriers, particularly related to business interruption losses.

Expenses and Financing

Hotel operating expenses totaled $4.5 million, down slightly from $4.6 million a year earlier, with room expenses rising to $2.9 million while food and beverage costs dropped to $1.6 million. Depreciation and amortization edged up to $1 million from $0.9 million, while general and administrative expenses held steady at approximately $500,000.

Interest expense decreased to $2.4 million from $2.6 million in the prior-year period, primarily reflecting changes in market interest rates. The hotel is financed by the Moxy Mortgage Loans — a combined $95 million facility consisting of an $86 million senior loan and a $9 million junior loan entered into in April 2024. These loans bear interest at SOFR plus 5.10 percent, subject to an 8.75 percent floor, and stood at effective rates of 8.76 percent at quarter-end versus 8.89 percent at year-end 2025. The loans are scheduled to mature in April 2027, but management intends to exercise the first of two available six-month extension options, which would push the maturity to October 2027.

Manhattan Condo Sale Boosts Cash Flow

The company also benefited from a significant development at its 40 East End Avenue joint venture, in which it holds an approximate 33.3 percent non-managing interest. The venture developed a luxury 29-unit condominium project at the corner of 81st Street and East End Avenue in Manhattan’s Upper East Side, completed in March 2020. As of the end of 2025, 27 of the 29 units had been sold.

In February 2026, another unit closed, generating a pro rata distribution of $2.7 million to Lightstone REIT IV. Just one unit remained unsold as of the quarter’s end. The remaining approximately 66.7 percent of the joint venture is owned by entities controlled by David Lichtenstein, who also chairs and serves as chief executive of Lightstone REIT IV and majority owns the Lightstone Group sponsor.

The distribution transformed the company’s investing cash flows for the quarter. Net cash provided by investing activities totaled $2.4 million, compared to a $39,000 outflow in the prior-year period. This included the $2.7 million distribution offset by $300,000 of investment property purchases. Net cash used in operating activities improved to $1.3 million from $2.4 million a year earlier. The company ended the quarter with $9.6 million in cash and cash equivalents plus $5.2 million in restricted cash, a combined position of $14.8 million — up from $9.8 million a year earlier and $13.9 million at year-end 2025.

Share Repurchases and Balance Sheet Position

The company’s share repurchase program remains limited to redemptions related to stockholder death or hardship, capped at 0.5 percent of outstanding shares annually. During the first quarter, Lightstone REIT IV repurchased 20,504 common shares at a weighted average price of $9.50 per share, compared to 20,716 shares at $9.47 in the year-earlier period. The company had approximately 8.1 million shares outstanding as of early May 2026.

On the balance sheet, total assets stood at $138.1 million as of March 31, down from $141.6 million at year-end 2025. The decline was driven primarily by the reduction in the company’s investment in the unconsolidated 40 East End joint venture, which fell to $2.7 million from $5.4 million following the distribution received in February. Total equity declined to $21.9 million from $25.6 million, reflecting the quarterly loss and share redemptions.

Related-Party Obligations

Related-party obligations remain a notable feature of the company’s capital structure. Subordinated advances from the sponsor, originally made under a March 2016 agreement and bearing interest at 1.48 percent, totaled $14.4 million as of quarter-end, including accrued interest. These advances are subordinate to all other obligations and only become payable if shareholders receive distributions equal to their original investment plus a cumulative 8 percent annual return upon liquidation.

Additionally, the company has been deferring asset management fee payments to its advisor since the second quarter of 2024, with $2 million owed to the advisor and its affiliated entities at quarter-end, up from $1.7 million at year-end 2025. Asset management fees totaled $245,000 for the quarter, essentially flat with the $242,000 incurred in the prior-year period. The company continues to be externally managed by Lightstone Real Estate Income LLC, an entity majority owned by Lichtenstein, with no employees of its own.

Looking ahead, management expressed confidence that cash on hand combined with expected cash flows from the Williamsburg Moxy Hotel — including potential insurance recoveries — and pro rata distributions from any future sale of the final 40 East End condominium unit will be sufficient to fund operations for at least the next 12 months. The company’s common shares remain unlisted on any national securities exchange, with no immediate plans for a liquidity event for stockholders.