Belpointe PREP, LLC (OZ) | Investment Case

1. Company Snapshot

1.a. Company Description

Belpointe PREP, LLC focuses on identifying, acquiring, developing or redeveloping, and managing commercial real estate properties in the United States.It also intends to invest in and manage a real estate-related assets, including commercial real estate loans and mortgages; and debt and equity securities issued by other real estate-related companies, as well as private equity acquisitions and investments and opportunistic acquisitions of other qualified opportunity funds and qualified opportunity zone businesses.Belpointe PREP, LLC was incorporated in 2020 and is based in Greenwich, Connecticut.

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1.b. Last Insights on OZ

Belpointe PREP, LLC faces challenges despite growth prospects. The company's recent leasing milestone at its VIV development in St. Petersburg, Florida, is overshadowed by ongoing operating losses and negative cash flow. Development risks persist, particularly with its Aster & Links and Viv projects. Furthermore, the company's agreement to acquire a luxury multifamily development site in Darien, Connecticut, may strain resources. With significant operating losses and elusive profits, concerns linger about the company's financial sustainability.

1.c. Company Highlights

Last Price	49.28
Change Percentage	-2.12%
Open	50.35
Previous Close	50.35
Market Cap ( Millions)	187
Volume	6971
Year High	82.89
Year Low	49.28
M A 50	56.15
M A 200	61.91

FCF Yield	-10.69%
Dividend Yield	0.00%
ROE	-12.55%
Debt / Equity	90.56%
Net Debt / EBIDTA	-2237.77%
Price To Book	0.65
Price Earnings Ratio	-4.98
Price To FCF	-9.35
Price To sales	25.89
EV / EBITDA	-40.92

2. Transcript Summary

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3. NewsRoom

Belpointe OZ Announces Aster & Links Reaches Leasing Milestone

Feb -10

Source: globenewswire.com

Belpointe OZ's VIV Development in Downtown St. Petersburg, Florida, Reaches Leasing Milestone

Jan -14

Source: globenewswire.com

Belpointe OZ Enters Into Agreement for Darien, Connecticut, Luxury Multifamily Development Site

Jan -13

Source: globenewswire.com

Belpointe PREP: Still An Interesting Speculative Growth Play In The REIT Sector Trading At 0.5x NAV

Nov -22

Source: seekingalpha.com

Belpointe OZ Secures $204 Million Loan to Refinance Aster & Links in Sarasota, FL

Oct -09

Source: globenewswire.com

Belpointe OZ Announces that Leasing has Begun at VIV in St. Petersburg, FL

Oct -06

Source: globenewswire.com

Valkea Resources Commences Fall Exploration Program at the Paana Project and Appoints Exploration Manager in Finland

Aug -26

Source: newsfilecorp.com

Belpointe OZ's Aster & Links Wins Two Awards

Aug -07

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Commercial Real Estate

Expected Growth: 4.5%

Growing demand for diversified income-generating properties and real estate debt investments, driven by increasing investor appetite for stable returns, urbanization, and infrastructure development.

7. Detailed Products

Real Estate Investment

Belpointe PREP, LLC offers investment opportunities in real estate, providing a diversified portfolio of properties and assets to investors.

Private Equity Investing

Belpointe PREP, LLC provides access to private equity investments, offering a range of opportunities in various industries and sectors.

Real Estate Development

Belpointe PREP, LLC develops and redevelops properties, creating value through strategic acquisitions and renovations.

Wealth Management

Belpointe PREP, LLC offers comprehensive wealth management services, providing customized investment strategies and portfolio management.

Family Office Services

Belpointe PREP, LLC provides family office services, including investment management, tax planning, and estate planning.

8. Belpointe PREP, LLC's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Belpointe PREP, LLC is moderate due to the availability of alternative financial planning and wealth management services.

Bargaining Power Of Customers

The bargaining power of customers is low for Belpointe PREP, LLC as customers have limited negotiating power due to the company's specialized services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Belpointe PREP, LLC as the company relies on a few key suppliers for its operations.

Threat Of New Entrants

The threat of new entrants is high for Belpointe PREP, LLC as the financial services industry is highly competitive and new entrants can easily enter the market.

Intensity Of Rivalry

The intensity of rivalry is high for Belpointe PREP, LLC as the company operates in a highly competitive industry with many established players.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	6.84%
Debt Cost	3.95%
Equity Weight	93.16%
Equity Cost	6.48%
WACC	6.30%
Leverage	7.34%

11. Quality Control: Belpointe PREP, LLC passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Five Point Holdings

A-Score: 6.2/10

Value: 9.0

Growth: 7.0

Quality: 7.2

Yield: 0.0

Momentum: 9.5

Volatility: 4.3

1-Year Total Return ->

Stratus Properties

A-Score: 4.2/10

Value: 8.0

Growth: 4.8

Quality: 3.9

Yield: 3.0

Momentum: 2.5

Volatility: 3.0

1-Year Total Return ->

Pebblebrook Hotel

A-Score: 4.2/10

Value: 8.2

Growth: 4.3

Quality: 3.6

Yield: 0.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

Belpointe PREP

A-Score: 4.0/10

Value: 7.8

Growth: 3.2

Quality: 3.0

Yield: 0.0

Momentum: 2.5

Volatility: 7.3

1-Year Total Return ->

Office Properties Income Trust

A-Score: 3.9/10

Value: 8.2

Growth: 0.8

Quality: 4.0

Yield: 10.0

Momentum: 0.5

Volatility: 0.0

1-Year Total Return ->

American Realty Investors

A-Score: 3.5/10

Value: 4.7

Growth: 3.8

Quality: 4.8

Yield: 0.0

Momentum: 4.5

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

23.18%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.30%

Belpointe PREP, LLC - US0806941029

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on OZ

1.c. Company Highlights

Lower Yield

Weak Momentum

Lower Quality

Cheaper

Average Quality

Strong Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Commercial Real Estate

Expected Growth: 4.5%

7. Detailed Products

Real Estate Investment

Private Equity Investing

Real Estate Development

Wealth Management

Family Office Services

8. Belpointe PREP, LLC's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Belpointe PREP, LLC passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

49.28$

Current Price

49.28$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA