Investments in Unconsolidated Entities

12 Months Ended

Dec. 31, 2025

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Entities

Investments in Unconsolidated Entities

The Company holds four investments in unconsolidated joint ventures that it has elected to account for using the FVO, as the Company’s ownership interest in the joint ventures do not meet the requirements for consolidation. Each of the investments are considered to be VIEs.

The following tables detail the Company’s investments in unconsolidated entities ($ in thousands):

	December 31, 2025
Investment	Segment	Number of Properties	Ownership Interest	Fair Value
Principal Place	Net Lease	1	20%	$	91,986
U.S. Diversified Logistics Portfolio I(1)	Logistics	72	19%	60,055
U.S. Diversified Logistics Portfolio II(1)	Logistics	31	19%	15,747
The Avery(2)	Multifamily	1	2%	—
Total unconsolidated entities carried at fair value		105		$	167,788

	December 31, 2024
Investment	Segment	Number of Properties	Ownership Interest	Fair Value
Principal Place	Net Lease	1	20%	$	81,566
The Avery(2)	Multifamily	1	2%	—
Total unconsolidated entities carried at fair value		2		$	81,566

(1)

Refer to Note 10 — “Related Party Transactions - Assignments of Limited Partnership Interest from Brookfield Affiliate” for further information regarding the Company’s limited partnership interests in the U.S. Diversified Logistics Portfolio I and the U.S. Diversified Logistics Portfolio II. The Company’s ownership percentage of the investments decreased from 20% to 19.4% in September 2025 as result of the Brookfield-managed fund closing its final investor commitments during the quarter.

(2)

In December 2023, the Company acquired a 2% equity interest in The Avery, a condo and multifamily property located in San Francisco, California (“The Avery”), through an indirect interest in a joint venture that owns the property. The Company did not pay any consideration for its interest, which was granted to the Company by the borrower on the Company’s investments in The Avery Senior Loan (“The Avery Senior Loan”) and The Avery Mezzanine Loan (“The Avery Mezzanine Loan”). As of December 31, 2025 and December 31, 2024, the fair value of the Company’s equity interest in The Avery was zero.

The following table details the Company’s gain (loss) from unconsolidated entities ($ in thousands):

Investment	Segment	For the Year Ended December 31, 2025		For the Year Ended December 31, 2024		For the Year Ended December 31, 2023
Principal Place	Net Lease	$	6,592	$	6,413	$	(2,083)
U.S. Diversified Logistics Portfolio I	Logistics	13,318		—		—
U.S. Diversified Logistics Portfolio II	Logistics	1,088		—		—
The Avery	Multifamily	—		—		—
Total unconsolidated entities carried at fair value		$	20,998	$	6,413	$	(2,083)

The following tables provide the combined summarized financial information of the Company's unconsolidated entities as of the dates and for the periods set forth below ($ in thousands):

Balance Sheets:	For the Year Ended December 31, 2025		For the Year Ended December 31, 2024
Total assets	$	2,147,382	$	1,004,069
Total liabilities	1,420,923		615,447
Brookfield REIT’s share of net equity	143,520		77,724
Adjustments to arrive at fair value	24,268		3,842
Total investments in unconsolidated entities	$	167,788	$	81,566

Income Statements:	For the Year Ended December 31, 2025		For the Year Ended December 31, 2024		For the Year Ended December 31, 2023
Total revenues	$	125,286	$	50,192	$	47,071
Net loss	(23,307)		(1,407)		(8,367)
Brookfield REIT’s share of net loss	(4,540)		(281)		(1,673)
Adjustments to arrive at fair value	25,538		6,694		(410)
Total gain (loss) from unconsolidated entities	$	20,998	$	6,413	$	(2,083)