News

A Message from Our CEO: Perspective Across Market Cycles

Woodland Hills, CA – December 31, 2025

Dear Valued Investor,

Perspective is on my mind as we move into 2026. I contrast snap judgments based on instinct in a moment, with the more demanding decision-making process built on analysis and a seasoned outlook. Solid perspective is gained after testing through changing conditions and adjusting when faced with challenging situations. Perspective is the result of a long view that provides a more complete understanding.

Real estate perspective is no different. True value is proven through disciplined execution and performance across cycles, especially during challenging periods.

This year reinforced the importance of sound perspective that informs a long-term approach. We anticipated recovery in 2025; instead, industry headwinds persisted. Themes including elevated operating costs, high deliveries of new supply, regulatory shifts, and lingering delinquency pressures carried forward from prior years. Multifamily operators looked for stable footing on shaky fundamentals, requiring patience and focus.

Despite these conditions, we prioritized fundamentals: maintaining strong occupancy in competitive markets, improving resident quality, strengthening fraud controls, and supporting efficient operations. As a result, many assets outperformed the competition.

Our decision-making was rooted in capital preservation and long-term value creation. We avoided unnecessary risks and stepped in when cash-strapped properties needed temporary loans. We extended hold periods where appropriate to position assets for recovery.

Portfolio valuations are generally trending above 2024 levels, supported by improving financing conditions and stronger operating performance. We expect steady improvements through 2026, with the work done this year laying the foundation for opportunities ahead.

As 2025 progressed, we experienced meaningful progress. IMG’s asset management team and Parktown Living’s property management teams worked collaboratively to enhance property operations and the bottom line. Experienced and deeply committed, the teams provided steady operations, consistent oversight, and a continued focus on the resident experience.

Looking to 2026, we anticipate a slow but steady improvement rather than a rapid shift. The work done in 2025 strengthens both our portfolio and our readiness for the opportunities ahead. Karlin, Marc, and I express our sincere gratitude for your trust and partnership. We remain disciplined in strategy, adaptable in execution, and unwavering in our mission to use long-term perspective to deliver optimum value.

Warm Regards,