Belpointe PREP receives early repayment on $5 million loan, terminates agreement

Belpointe PREP, LLC (NYSE American:OZ) reported Thursday the early termination of a material definitive agreement following the full prepayment of a $5 million loan it made through its subsidiary, BPOZ 100 Tokeneke Holding, LLC, to 100 Tokeneke Road, LLC. The announcement comes as OZ shares trade at $36.28, just 2% above their 52-week low of $35.42, with the stock down 44% year-to-date.

According to a press release statement based on a recent SEC filing, on October 22, Tokeneke Road prepaid the outstanding principal and accrued interest, totaling $5,114,904.11. The original loan, issued on March 3, 2026, carried a 3.6% annual interest rate and was due in March 2028. The convertible promissory note allowed BPOZ 100 Tokeneke Holding, LLC the option to convert the loan into Class A units of 100 Tokeneke Partners, LLC, at a price of $14.50 per unit, but no conversion occurred before the prepayment.

The prepayment required written consent from BPOZ Tokeneke and was funded by a capital contribution from a related party, Belpointe Tokeneke Investment, LLC. Despite recent stock weakness, InvestingPro analysis suggests the company may be undervalued at current levels, with liquid assets exceeding short-term obligations. Investors can access the complete financial health assessment and 8 additional ProTips on InvestingPro. This related party, indirectly owned by an entity in which certain immediate family members of Belpointe PREP’s Chief Executive Officer hold a passive beneficial interest, contributed $5,114,918.50 to Tokeneke Partners in exchange for 352,753 Class A units. After the transaction, the related party held approximately 71% of Tokeneke Partners’ outstanding units.

No early termination penalties were incurred by Belpointe PREP or its subsidiaries. The company remains party to a separate letter agreement with Tokeneke Partners and other entities that was not affected by the loan prepayment.

The transaction was reviewed and approved by Belpointe PREP’s Conflicts Committee and disinterested board members in accordance with company policy and applicable regulations.

All information is based on a press release statement and the company’s SEC filing.