The following table sets forth the redeemable noncontrolling interests in the OP for the three months ended March 31, 2026 (in thousands):


Redeemable noncontrolling interests in the OP, December 31, 2025	$	4,928
Net loss attributable to redeemable noncontrolling interests in the OP		(27	)
Other comprehensive loss attributable to redeemable noncontrolling interests in the OP		(15	)
Distributions to redeemable noncontrolling interests in the OP		(55	)
Adjustment to reflect redemption value of redeemable noncontrolling interests in the OP		(107	)
Redeemable noncontrolling interests in the OP, March 31, 2026	$	4,724

The Company has entered into management agreements with BH Management Services, LLC (“BH”), the Company’s property manager and an independently owned third party, who manages the Company’s properties and supervises the implementation of the Company’s value-add program. BH is an affiliate of BH Equities, LLC and its affiliates (collectively, “BH Equity"), who was a noncontrolling interest member of the Company’s joint ventures prior to the purchase by the Company of 100% of the joint venture interests in the portfolio owned by BH Equity, representing approximately 8.4% ownership in the portfolio (the “BH Buyout") on June 30, 2017. Through BH Equity’s noncontrolling interests in such joint ventures, BH Equity was deemed to be a related party. With the completion of the BH Buyout, the Company and the OP amended the partnership agreement of the OP (the “Amendment”). BH Equity became a noncontrolling limited partner of the OP upon execution of the Amendment and was no longer deemed to be a related party. BH and its affiliates do not have common ownership in any joint venture with the Adviser; there is also no common ownership between BH and its affiliates and the Adviser.

The property management fee paid to BH is approximately 3% of the monthly gross income from each property managed. Currently, BH manages all of the Company’s properties. Additionally, the Company may pay BH certain other fees, including: (1) a fee of $15-25 per unit for the one-time setup and inspection of properties, (2) a construction supervision fee of 5-6% of total project costs and design fees, which are capitalized, (3) acquisition fees and due diligence costs reimbursements, and (4) other owner approved fees at $55 per hour. BH also acts as a paymaster for the properties and is reimbursed at cost for various operating expenses it pays on behalf of the properties. The following is a summary of fees that the properties incurred to BH and its affiliates, as well as reimbursements paid to BH from the properties for various operating expenses, for the three months ended March 31, 2026 and 2025 (in thousands):


		For the Three Months Ended March 31,
		2026		2025
Fees incurred
Property management fees	(1)	$	1,807	$	1,812
Construction supervision fees	(2)		162		140
Design fees	(2)		17		—
Reimbursements
Payroll and benefits	(3)		4,813		4,665
Other reimbursements	(4)		491		629

(1)

Included in property management fees on the consolidated statements of operations and comprehensive loss.

(2)

Capitalized on the consolidated balance sheets and reflected in buildings and improvements.

(3)

Included in property operating expenses on the consolidated statements of operations and comprehensive loss.

(4)

Includes property operating expenses such as repairs and maintenance costs and certain property general and administrative expenses, which are included on the consolidated statements of operations and comprehensive loss.