Lightstone Value Plus REIT III, Inc.
MD
Non-traded REITNon-traded REIT
Compared against Non-traded REIT non-traded reits.
1Y return
−2.6%
11th pctile · behind most peersas of 2026-03-30
Since inception
not stated in filings
Distribution rate
0.0%
Net assets
$129.6M
as of 2026-03-30
Net expenses
2.21%
1th pctile · cheaper than median
Repurchase
0.5% quarterly (death and qualifying hardship requests only)
1 of 42 peers matchLevel 3
not stated yet
Last offer
no offer yet
What owning this fund costs per year
Hold period3 yrs
Net expense ratio (includes the 0.75% management fee)2.21%
Ownership costs about 2.2% a year: $2.9 million of company level expenses, of which $1.5 million is the 0.75% advisor asset management fee, measured against roughly $132 million of average net asset value. Mortgage interest of $4.7 million and hotel operating costs are excluded. No one-off items occurred, so the ongoing and reported figures are the same.
This record does not state which class's load is inside the figure, so the holding period leaves it unchanged. Loads across the classes reach 0%.not stated
Total drag per year2.21%
This is the cost for common Shares (single class). It reports in dollars, so entity expenses include the servicing fees of every class and the figure is blended across them.
Based on Full year ended December 31, 2025 (annual figure, not annualized), from the FY2025 Form 10-K; entity-level dollars divided by the average of the board.
This fund's cost was determined by reading its filings in full, because the figures in its expense table do not decompose cleanly. Parts were derived from dollar amounts the filing states.
This fund's filing states its financing and performance costs against a different base than its expense ratio, so they are not subtracted line by line here. The figure above comes from reading the filing in full. Drag is the fixed cost of ownership: paid regardless of performance. The incentive terms (Annual subordinated performance fee of 15.0% of total return in excess of a 6.0% annual cumulative, pre-tax, non-compounded return on net investment, capped at 10.0% of the aggregate return for the year; none incurred from inception through December 31, 2025. The Special Limited Partner also holds S) apply only to returns earned. How this is calculated
Against Non-traded REIT non-traded reits
Total drag
38th pctile · cheaper than most
1Y return
11th pctile · behind most
Gray mark is the peer median. The drag comparison uses the same 3-year hold for every fund.
Every figure below was read from this fund's filing. Hover any number to see the sentence it came from. Figures cover Full year ended December 31, 2025 (annual figure, not annualized), from the FY2025 Form 10-K; entity-level dollars divided by the average of the board-approved estimated NAV at 12/31/2025 ($129.6M) and 12/31/2024 ($134.5M). The 6-month interim report to June 30, 2026 shows general and administrative costs of $1,618K (a slightly higher run rate of about 2.5%) with no change to the fee schedule..
Open the filing on sec.gov (0001185185-26-001145)Size and leverage
Net assets$129.6M?
Borrowings$56.8M?
Leveragedebt to equity0.58x?
Investments held10?
Started2012-10-05?
What the manager charges
Management feeof gross assets0.75%?
The same fee against your equitybecause it is charged on borrowed assets too1.19%
Performance feeAnnual subordinated performance fee: 15.0% of total return in excess of a 6.0% annual cumulative, pre-tax, non-compounded return on net investment ($10.00 per share less capital returned), capped at 10.0% of the aggregate return for the year, payable only from realized appreciation on sale, disposition or refinancing; none incurred since inception. Special Limited Partner also holds 242 Subordinated Participation Interests entitled to 15.0% of liquidating distributions after stockholders receive net investment plus a 6.0% annual return.?
Hurdle6.00%?
Expense cap2.00%?
Getting your money back
Repurchase offersquarterly (death and qualifying hardship requests only)?
Share of the fund offered0.50%?
Where distributions come from
Distribution rate0.00%?
What it holds
MostlyHospitality - limited-service hotels (one full-service hotel via joint venture)?
Who is involved
AdviserLightstone Value Plus REIT III LLC?
AuditorEisnerAmper LLP?
Valuedat least annually?
Independent valuation agentYes?
Deals with affiliatesYes?
Also worth knowing
- As of December 31, 2025 the company did not meet the minimum debt service coverage and debt yield ratios under its $30.8 million Credit Facility; the lender provided a waiver.
- No distributions have been declared or paid on the Common Shares for any quarterly period after the first quarter of 2024.
- The Advisor has allowed temporary deferral of asset management and finance fees since the first quarter of 2024; $3.5 million was owed at December 31, 2025 and $4.2 million at June 30, 2026.
- The interim report discloses default notices received under franchise agreements for certain hotels and a July 21, 2026 loan modification that removed the revolving feature and required a $2.5 million cash collateral deposit.
- Deferred advisor fees owed: 3.5 million at 12/31/2025; 4.2 million at 6/30/2026 USD (Reported costs are accrued but unpaid, so cash operating results look better than the true cost burden and a growing payable to the manager sits ahead of shareholders.)
- Credit Facility covenant failure and lender waiver: DSCR and DYR not met; waiver granted (A covenant breach on the $30.8 million facility secured by six hotels puts refinancing and cash flow at the lender's discretion.)
- July 2026 loan modification and cash collateral requirement: 2.5 million deposited; additional 5.2 million or hotel sales required by 9/30/2026 USD (Locks up scarce liquidity and forces asset sales or a letter of credit on a short deadline, ahead of any shareholder liquidity.)
- Franchise agreement default notices: Default notices received for certain hotels (Loss of brand affiliation would directly hit hotel revenue and property values.)
- Near-term debt maturities: 25,971 due 2026 and 30,844 due 2027 (thousands) USD thousands (All $56.8 million of debt matures within two years and bears floating rates, so refinancing risk dominates the outlook.)
- Subordinated Participation Interests with no NAV allocation: 12.1 million of interests; no value allocated USD (The sponsor's $12.1 million subordinated stake carries no NAV value today because the 6% preferred return threshold is unmet, but it would share 15% of upside above that level in a liquidation.)
- NAV built on appraised values far above carrying value: Consolidated properties appraised at 130.9 million vs 89.2 million carrying value USD (The $10.21 NAV rests on third-party appraisals and discount rates, not GAAP book value; a 25bp cap rate move shifts NAV per share by about $0.25.)
- Cumulative distributions versus cumulative FFO: 29,764 distributions declared vs 20,978 FFO (thousands) USD thousands (Historic payouts have exceeded funds from operations since inception, meaning part of past distributions returned capital.)
Fees
Liquidity terms
Repurchase frequency
Repurchase percentage of shares outstanding0.5%
Valuation
Independent valuation firmunchanged, 2 filingsEngaged, name in filing
Structure
Legal structureunchanged, 2 filingsREIT
Leverage limitchanged · Mar 2026
Use of derivativeschanged · Mar 2026yes; interest rate cap contract
Every value links to the SEC filing it came from. A chip marks a change against the prior filing of the same type; hover a green-dotted value for what changed and why, as stated in the filing.
What the fund reported over time, each point sourced to its filing. Series deepen as older shareholder reports are read.
2024-12-312026-03-30
Each point is a value from one SEC filing, dated as reported. Hover a point for its value.
No repurchase offer filings on record yet.
Request the six-factor report on Lightstone Value Plus REIT III, Inc.
A dated report covering performance, fees, liquidity, valuation, benchmarks, and complexity, with every value sourced to the filing it came from and the fund placed against its category. Built for the evaluation file an advisor keeps. Tell us what it is for and we will follow up with timing.
Data from public SEC filings. Argus is not a broker-dealer. Nothing here is an offer or investment advice. Every value shows the filing it came from and the date of that filing. Peer percentiles describe where a value sits in the comparison set, never fund quality. "Not stated in filings" is a fact about a document, never a verdict about this fund.