The non-traded multifamily REIT also completed a $31 million oversubscribed tender offer and refinanced several major mortgages during a busy 2025.

March 27, 2026

Return to Profitability

Lightstone Value Plus REIT V, a non-traded real estate investment trust focused on multifamily residential properties, reported net income of $5.1 million for the fiscal year ended December 31, 2025 — a sharp reversal from a net loss of nearly $11 million the prior year. The turnaround was primarily driven by an $18.1 million gain on the February 2025 sale of its 280-unit Autumn Breeze Apartments in Noblesville, Indiana, which sold for $59.5 million.

After paying off the associated mortgage and covering transaction costs, the company netted approximately $30.5 million from the disposition. The sale proceeds were initially placed with a qualified intermediary to facilitate a potential like-kind exchange, though the funds were ultimately released back to the company during the second and third quarters of 2025.

Portfolio Performance Holds Steady

As of year-end, Lightstone REIT V owned eight multifamily residential properties totaling 2,480 apartment units across Tennessee, Texas, Illinois, Michigan, and Florida. The portfolio posted a weighted average occupancy rate of 93 percent, down slightly from 95 percent at the end of 2024, while the effective monthly rent per unit held steady at $1,722 across both years.

Rental revenues for 2025 came in at $51.2 million, a modest increase from $50.1 million in the prior year. On a same-store basis — excluding the effects of the Autumn Breeze disposition and the December 2024 acquisition of Discovery at Space Coast Apartments — rental revenue grew by about $559,000, or 1.2 percent, largely attributable to higher rents at the Axis at Westmont property in suburban Chicago.

Operating expenses also climbed. Property operating costs rose to $17 million from $16.1 million, with same-store increases driven by higher utilities, insurance, and maintenance expenses. General and administrative expenses increased to $8.4 million from $7.7 million, reflecting higher asset management fees and loan-related costs. Interest expense grew notably to $17.6 million from $15.3 million due to refinancing activity and the Space Coast acquisition financing.

Active Refinancing Year

The company completed several significant refinancings during 2025:

• The Aster Apartments (Sugar Land, Texas) — new five-year $21.8 million mortgage at 5.20 percent in May
• BayVue Apartments (Tampa, Florida) — $48.2 million refinancing at 4.98 percent in June
• Arbors Harbor Town (Memphis, Tennessee) — $46.3 million refinancing at 5.21 percent in December

As of year-end, the company carried total mortgage debt of approximately $315.7 million with a weighted average interest rate of 5.37 percent. Roughly $121.9 million was scheduled to mature in 2026, including loans on Valley Ranch Apartments in Ann Arbor, Axis at Westmont, and Citadel Apartments in Houston. The Valley Ranch mortgage was subsequently refinanced in late February 2026 with a new $60.5 million loan maturing in 2033, while the Axis at Westmont loan received a short-term extension to April 2026. Management expressed confidence in its ability to refinance all maturing debt.

Oversubscribed Tender Offer and Capital Returns

In a significant capital return move, the board approved a self-tender offer in late December 2025 for up to 2.2 million shares at $14.08 per share, totaling roughly $31 million. The offer was oversubscribed, with approximately 3.9 million shares tendered. The company accepted about 56.5 percent of tendered shares on a pro rata basis, completing the purchase in early March 2026.

The tender price represented a discount to the most recently estimated net asset value per share of $16.56 as of September 30, 2025 — itself a 4.3 percent increase from $15.87 a year earlier. The company also declared a modest special distribution of $0.08 per share in September 2025, totaling $1.5 million, compared to a $0.42 per share special distribution in 2024.

The share redemption program, which had been suspended during the tender offer period, was reinstated on March 26, 2026, with up to $2 million available for redemptions in each of the remaining quarters of 2026. During 2025, the company redeemed approximately 594,000 shares at an average price of $13.47.

Liquidity Timeline Extended

The board extended its targeted timeline for commencing a liquidity event — such as a listing or full liquidation — from June 2028 to June 2033, signaling the company intends to continue operating its portfolio for the foreseeable future. Shares remain unlisted with no established public trading market.

Lightstone REIT V continues to be externally managed by LSG Development Advisor LLC, an affiliate of the Lightstone Group controlled by David Lichtenstein, who serves on the board. The company has no employees and paid its advisor approximately $7.2 million in total fees during 2025. Modified funds from operations, a key performance metric for non-traded REITs, totaled approximately $5 million for the year, down from $7.9 million in 2024.

The company ended the year with $58 million in cash and cash equivalents, up substantially from $21.4 million at the close of 2024.