Six Peak Monthly Finance call

• The meeting reviewed updated financial reporting, job profitability, funding reconciliations, and near-term cash management.
• Year-to-date performance was ahead of budget, primarily because bonding profit on Francis and Miverton was excluded from the budget and billing was more aggressive than the budget curve.
• Nelrose was operating at a loss because of personnel costs disproportionate to the job, including Joe’s approximately $250,000 compensation, Dorian’s allocation, and Henry’s assignment.
• Joe’s compensation will continue through year-end under the restructuring arrangement and is expected to change when he leaves.
• Allocations are expected to improve as Francis, Riverton, and Lexington begin, while construction-specific accounting software is being evaluated to automate payroll and job-cost allocation.
• The annual budget remains the basis for year-to-date comparisons, while monthly reforecasting is primarily internal.
• A discrepancy remained between the portal’s approximately $400,000 consolidated 2026 income projection and the updated file’s approximately $1.2 million year-to-date figure.
• Potential factors included bonding revenue timing and the $299,000 non-cash Aimwell loan write-off, which was excluded from the budget.
• Francis funding and closing costs remained unresolved.
• A $576,000 rate-lock deposit shared with MRK was apparently not credited to the borrower or reflected in closing costs, and a separate $98,000 amount removed from the closing statement also required recovery or inclusion in the first draw.
• The reconciliation compared the counterparty’s cost schedule with approximately $13 million recorded in Yardi, with material differences and ledger treatment still under review.
• Wilton and Reading had funded their outstanding amounts, leaving GPSP with excess cash.
• The proposed approach was to retain approximately four months of Reading debt-service payments as a reserve and return remaining funds to Grandview and Stain, subject to reviewing Reading’s NOI, debt service, and reserve requirements.
• Discussions with Goldberg regarding a Reading buyout and the residual at Francis were continuing, although Stain was not expected to have significant appetite for the transaction.

• ◻
  Chris Aiello Chris Aiello will discuss more accurate project staffing allocations with Grady as new jobs begin
  → To-Dos
• ◻
  Chris Andresen Chris Andresen will continue evaluating construction-specific accounting software for automated payroll and job-cost allocations
  → To-Dos
• ◻
  Chris Aiello Chris Aiello will investigate the discrepancy between the updated model and the board portal projection
  → To-Dos
• ◻
  Chris Andresen Chris Andresen will send the remaining funding requests after the four agreements being handled by Jane are signed
  → To-Dos
• ◻
  Chris Andresen Chris Andresen will determine how the $576,000 Francis rate-lock deposit was treated and ensure it is reflected in the appropriate draw or financing records
  → To-Dos
• ◻
  Chris Andresen Chris Andresen will resolve how the $98,000 Francis closing-statement amount will be recovered or included in the first draw
  → To-Dos
• ◻
  Chris Andresen Chris Andresen will prepare and send Chris Aiello the draft analysis covering the reconciliation and the question regarding the $98,000 item.
  → To-Dos
• ◻
  Chris Aiello Chris Aiello will review the draft and provide commentary before distribution.
  → To-Dos
• ◻
  Chris Andresen Chris Andresen will complete the cost reconciliation against the Yardi figures.
  → To-Dos
• ◻
  Chris Aiello Chris Aiello will verify whether May partner draws or personal-card reimbursements remain outstanding.
  → To-Dos
• ◻
  Chris Andresen Chris Andresen will send Chris Aiello the supporting detail for the outstanding payment review.
  → To-Dos
• ◻
  Chris Aiello Chris Aiello will investigate the discrepancy between the portal, the model, and the submitted math.
  → To-Dos
• ◻
  Chris Aiello Chris Aiello will review Reading’s NOI, debt service, and reserve needs to determine how much GPSP cash should be retained.
  → To-Dos
• ◻
  Chris Aiello Chris Aiello will send the remaining GPSP cash to Grandview and Stain after determining the appropriate Reading reserve.
  → To-Dos
• ◻
  Chris Andresen Chris Andresen will send the Francis draft to Chris Aiello for review and distribution.
  → To-Dos

None.