Investor Update
The Westerly · Pewaukee, WI
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409 Swan Rd · Pewaukee, WI · Quarter II 2026
| Actual Quarterly Performance | Two Quarters Ago | Prior Quarter | Current Quarter |
|---|---|---|---|
| Total Revenue | $1,074,525 | $1,343,675 | $1,737,795 |
| Operating Expenses | $1,008,974 | $905,448 | $1,026,233 |
| Net Operating Income | $65,550 | $438,228 | $711,562 |
| NOI Growth (QoQ) | — | +568.5% | +62.4% |
Beyond Q2 ending occupancy, 13 signed leases are pending move-in dates in early Q3, bringing effective occupancy to 117 units. Management continues to prioritize AL lease-up, where 27 of 51 units remain available.
Revenue mix remains 100% private pay, with no reliance on Medicaid or other government reimbursement — supporting rate stability and a cleaner underwriting profile as the community stabilizes.
The community's highest-level assisted living license remains pending with the Department of Health Services, but we have received more direct communication from them recently and are now more optimistic about the issuance of the license within 30-days. As discussed previously, the delay affects only a small 10-unit wing.
All key department-head positions are filled, and Management continues to hire and train for AL and MC operations as occupancy grows. Overtime as a share of labor cost ticked up slightly to support new move-ins, while employee turnover remains very low.
No distributions have been made to date. The property has been building up cash and expects to be in a position to begin distributions once it satisfies the loan covenant required by the Company's lender.
Net operating income grew 62.4% quarter-over-quarter to $711,562, with operating margin expanding to 40.9% as revenue scaled faster than fixed and variable expenses.
