Key Highlights

  • Stewards shares are trading at $2.82 today, up 16.53%.
  • The company completed a $90 million Acquisition of Envy Pompano Beach, a 214-unit Class A mixed-use multifamily community in Florida.
  • The operating plan targets net Operating Income growth from $1.7 million to over $4.2 million at stabilization.
  • The acquisition was financed through $42.7 million of rollover Equity and a $47.7 million property-level loan.

Completed Acquisition Drives Shares Higher

Stewards (NASDAQ:SWRD) shares are surging today after the company completed its previously disclosed $90 million acquisition of Envy Pompano Beach, a 214-unit Class A mixed-use multifamily community in Pompano Beach, Florida. The transaction included approximately $42.7 million in contractual rollover equity, represented by 14.2 million restricted shares of Stewards common stock, alongside a $47.7 million property-level Loan from LoanCore Capital Credit REIT.

A Defined Path to Improved Property Performance

As of late August, the property was 89.3% physically occupied and 93.0% leased, generating approximately $5.3 million in trailing 12-month revenue. Stewards' operating plan targets approximately 95% occupancy and net operating income of over $4.2 million at stabilization, up from $1.7 million currently, through increased residential occupancy, improved collections, reduced concessions and additional Revenue from the property's retail space and 26-slip marina. The company's CEO said the deal represents another step in expanding its Real assets platform, with execution now the primary focus.

Share Count Increases, With a Path to Partial Reduction

The acquisition increased Stewards' common shares outstanding from approximately 211.4 million to approximately 225.6 million. All consideration shares are initially restricted, and seven million of them are subject to an Escrow arrangement that could result in up to seven monthly cash payments of $3 million beginning in October, with one million escrowed shares subject to cancellation upon each payment. If all seven payments are made, Stewards would have approximately 218.6 million shares outstanding. Stewards is a diversified financial platform spanning private credit, real assets and technology, providing revenue-based financing to small and midsized businesses through its Business Capital division alongside its expanding real estate holdings.