Here's a clear, structured breakdown of the Lightstone Value Plus REIT IV (LTSV) 10-K filing for the year ended December 31, 2025:

🧾 What This Document Is

This is the company's Annual Report (Form 10-K) filed with the SEC. It provides a comprehensive overview of LTSV's business operations, financial condition, performance, and risks for the entire year. Think of it as the company's official "report card" and strategic update for investors.

🏢 What The Company Does

• 👉 In simple terms: LTSV is a Real Estate Investment Trust (REIT) that owns and operates commercial real estate properties in the US, primarily focusing on generating cash flow for potential distributions to shareholders.
• Structure: It's a non-traded, externally managed REIT. This means its shares are not listed on a public stock exchange, and it relies entirely on an external "Advisor" (affiliated with its Sponsor, Lightstone Group) for all management functions – acquiring properties, managing operations, handling finances, etc. LTSV itself has no employees.
• Current Portfolio: As of year-end 2025, LTSV holds just two significant investments, both in New York City and involving related parties:
  1. 75% ownership in the Williamsburg Moxy Hotel Joint Venture (216-room Marriott hotel in Brooklyn, opened March 2023). The other 25% is owned by another Lightstone-sponsored REIT (Lightstone REIT III).
  2. ~33.3% ownership in the 40 East End Ave. Joint Venture, holding the last two unsold luxury condominium units (of an original 29) in Manhattan's Upper East Side. The majority (~66.7%) is owned by affiliates of David Lichtenstein (who controls the Sponsor).

💰 Financial Highlights

• Net Asset Value (NAV) Per Share: The board approved an estimated NAV of $9.38 per share as of December 31, 2025 (down from $9.50 at the end of 2024). Why it matters: Since shares aren't traded, this estimate is crucial for shareholders to understand the perceived value of their investment. The total estimated NAV was $76.4 million.
• Key Property Performance (Williamsburg Moxy Hotel):
  • Occupancy: 92% (very strong)
  • Average Daily Rate (ADR): $291.79
  • Revenue Per Available Room (RevPAR): $267.05
• 40 East End Avenue Project: 27 of 29 units sold by year-end 2025. One of the two remaining units was sold in February 2026.
• Subordinated Advances: LTSV owes $14.4 million to its Sponsor (as of Dec 31, 2025). Crucially, this debt only gets repaid after shareholders receive their original investment back plus an 8% annual return in a liquidation scenario. Because the NAV ($9.38) is below the liquidation preference threshold ($10.00 + 8%), no value was allocated to this debt in the NAV calculation.
• Dividends: LTSV pays minimal distributions ($0.01 per share annually) solely to maintain its REIT tax status.

📦 Financial Position & Leverage

• Assets: Primarily consist of the $134.6 million investment property (Williamsburg Moxy Hotel, 75% share) and the $5.7 million investment in the 40 East End Ave. Joint Venture. Plus $12.7 million in cash and other assets.
• Liabilities: Mainly a $70.1 million mortgage payable and the $14.4 million subordinated advances owed to the Sponsor. Total liabilities were $76.6 million.
• Leverage Policy: Charter allows borrowing up to 300% of net assets (typically ~75% of property cost). They do not currently intend to exceed this limit.

🔮 What's Next (Strategy & Outlook)

• Investment Strategy: Focus on holding current properties long-term for cash flow and potential appreciation, primarily in the US. May consider selling assets to reinvest or return capital.
• Distributions: Will pay the minimal required dividend ($0.01/share/year) to stay a REIT. Significant shareholder distributions are not expected unless triggered by a liquidation event where the NAV exceeds the Sponsor's priority threshold.
• Listing: No current plans to list shares on a stock exchange. This means the lack of liquidity (easy buying/selling) for shareholders continues.
• NAV Calculation: Will be updated at least annually using third-party appraisals and Advisor analysis.

⚖️ Big Picture: Strengths & Risks

• Strengths (👍):
  • Strong Hotel Performance: High occupancy (92%) and ADR ($291.79) at the Williamsburg Moxy indicate a well-performing asset.
  • Clear Structure: Simple, concentrated portfolio of two NYC assets.
  • Subordinated Debt: Sponsor debt is deeply subordinate, protecting common shareholders in a liquidation scenario up to their preferred return.
  • REIT Status: Maintains qualification, avoiding corporate-level income tax on distributed income.
• Risks (⚠️):
  • Extreme Lack of Diversification: Heavy reliance on just two properties in one city (NYC). Problems with either asset significantly impact the entire company.
  • External Management & Related Parties: Entirely dependent on the Advisor (affiliated with the Sponsor) for all operations. Fees paid to related parties reduce net income. Potential conflicts of interest exist.
  • No Liquidity: Shares cannot be easily sold. No active market exists.
  • Economic & Market Sensitivity: Highly vulnerable to NYC hotel market downturns, commercial real estate declines, rising interest rates (impacts mortgage and valuations), and broader economic recessions.
  • Concentrated Credit Risk: Cash balances exceed FDIC insurance limits.
  • Minimal Shareholder Returns: Current distributions are symbolic ($0.01/year). True returns depend entirely on future asset sales or liquidation.

🧠 The Analogy

Think of LTSV like a small, family-owned restaurant partnership with silent investors (shareholders). The restaurant (the Williamsburg Moxy Hotel) is doing well right now (high occupancy/ADR), and they own a small share in a nearly-sold-out condo development next door. The actual kitchen and management (the Advisor) are run by the family's parent company (the Sponsor), who also lent the partnership money but only gets paid back after the silent investors get their initial investment back plus a good return if the whole thing is ever sold. Everyone's waiting to see if the restaurant and condo sell for enough to finally pay back the family loan and give the silent investors their promised return. Until then, they just get a tiny yearly token payment.

📇 Key Contacts & People

• Company Address: 1985 Cedar Bridge Avenue, Suite 1, Lakewood, NJ 08701
• Company Phone: 732-367-0129
• Majority Owner/Sponsor Control: David Lichtenstein (majority owns and controls the Sponsor, Lightstone Group, LLC)
• External Advisor: Lightstone Value Plus REIT IV Advisor, LLC (Affiliate of Lightstone Group, LLC - manages all operations)
• Independent Valuation Firm (NAV): Marshall & Steven’s Incorporated (M&S)
• Transfer Agent (Shareholder Records): DST Systems Inc.
• Website (SEC Filings): www.lightstonecapitalmarkets.com

🧩 Final Takeaway

LTSV is a small, externally-managed REIT with a highly concentrated portfolio (a performing NYC hotel and a nearly-sold condo project) and no shareholder liquidity. While the hotel's strong performance is a positive, the company's future value and any potential significant returns to shareholders hinge entirely on the eventual sale or refinancing of these two assets and whether their value exceeds the threshold required to trigger repayment of the Sponsor's subordinated loan. The current dividend is minimal, serving only to maintain REIT status.