UPDATES.md

# Property Updates

## 2026-07-14

- Property Update (07/14/2026):
    - Hi everyone,

    - This month's update includes the current reviewed financial summary from the guarded monthly workflow.

    - Financial summary from FINANCIALS.md:

    - Financial data is shown as of 2026-06.

    - Cash Flow Snapshot (2026-06):

    - Revenue: $8,703.82
    - Operating Expenses: -$7,241.77
    - NOI: $1,462.05
    - Retained Capital: -$1,000.00
    - Net Operating Cashflow: $462.05

    - Monthly Cash Position (2026-06):

    - Revenue and operating expenses are scoped to the reporting month. ECO Operating Cash is the current complete DAO-attributed total of Column E across every row in the property-split ECO Systems GL, including accruals.

    - Lofty Operating Cash: $1,946.77 (Lofty curr_maintenance_reserve)
    - ECO Operating Cash: -$3,898.34 (ECO Systems General Ledger Column E (935 rows))

## 2025-11-15

- Property Update (11/15/2025):
    - Owners will be receiving the net cash flow for October on a daily basis from November 15th through December 14th.
    - October's net cash flow totaled $1,365.38, compared to September's net cash flow of $507.40 (169% increase). Per the recent governance vote to refinance, this includes $1,400 in retained earnings set aside (diverted from previous principal curtailment).
    - [P&L Statement](https://www.dropbox.com/scl/fi/8d9qxje0m8qha7kqqpr8l/P-L-90-Madison-Ave-Albany-NY-12202.xlsx?rlkey=bkd8lcejkz851dcchpc792b26&st=ep09uupo&dl=0)
    - [View Maintenance Log](https://docs.google.com/spreadsheets/d/1pxDWSGpQJs4SeOVxK5NRGlKnXI0qWlV_ulo1ewKGzkM/edit?usp=sharing)
    - Note that cleaning, repairs, and maintenance for the prior month are accounted for the following month, i.e. October R&M will come out of November NOI (or reserves).
    - All financial data are in [Dropbox](https://asset.lofty.ai/LFTY402) and Metrics are in [Hospitable](https://share.hospitable.com/metrics/7fbf01ed-dd53-4d29-9f6e-60be718281e1). Email earl@earlbnb.com if something is missing.

## 2025-07-29

- Property Update (07/29/2025):
    - Governance Results for 90 Madison Ave:
    - The voting results are back for the owner-proposed governance vote.
    - The winning vote is:
    - Give Nathaniel Gipson Full-Authorization to seek out and execute an aforementioned refinance terms and deal on behalf of Strawberry LFTY402 DAO LLC
    - This vote was voted on by 23 out of 27 participants, receiving 99% of the voting power. This is a co-ownership property, which means the governance mechanism used the [scaled governance calculation](https://loftyai.notion.site/Governance-Mechanism-For-Partial-Property-Sales-e74b184f52124e219c320bb61b2b89b8) as opposed to the default of 1 token equals 1 vote.
    - [View on-chain results](https://allo.info/application/3144462130)

## 2025-07-22

- Property Update (07/22/2025):
    - Owner-Proposed Governance Vote for 90 Madison Ave:
    - An owner is proposing a governance vote.
    - This owner holds 515 tokens in this property and their wallet address can be viewed [here](https://allo.info/account/PIJSMONVV6UOTMOBLHY24OIZR2C7HIHAV3XZ7V7BTAFHWBGCFL3X65M2XA).
    - The owner's proposal is below, word-for-word:
    - Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.
    - [View Governance Proposal](https://www.dropbox.com/scl/fi/mrgxihxft7bbef1d75kgc/90-Madison-Ave-Refinance-Proposal.pdf?rlkey=yhyaui4eudw2f9qnpx5qczjsc&e=3&dl=0)
    - The results will be determined by a 60% Supermajority and will be sent to all owners on Tuesday, July 29th once the voting period ends.

## 2025-07-15

- Property Update (07/15/2025):
    - Owners are currently receiving the net cash flow for May on a daily basis through August 14th.
    - June's net cash flow totaled $776.45, compared to May's net cash flow of $257.49.
    - Earl, the co-owner and Property Manager, has shared additional details for investors, outlined below:
    - NOI: $1,526.45 (71% increase over May)
    - $750 Principal Curtailment
    - Net Cash Flow: $776.45
    - Mortgage Balance: $183,547.31
    - [Profit & Loss Statement](https://www.dropbox.com/scl/fi/8d9qxje0m8qha7kqqpr8l/P-L-90-Madison-Ave-Albany-NY-12202.xlsx?rlkey=bkd8lcejkz851dcchpc792b26&e=1&st=yokk00dh&dl=0)

## 2025-06-15

- Property Update (06/15/2025):
    - Governance Results for 90 Madison Ave:
    - There was an error in the previous governance vote calculations. The correct results are below.
    - The winning vote is:
    - No, I do not want to implement the “Profit Last” system. Keep everything as-is.
    - This vote was voted on by 38 out of 38 participants, receiving 100% of the voting power. This is a co-ownership property, which means the governance mechanism used the [scaled governance calculation](https://www.notion.so/loftyai/Governance-Mechanism-For-Partial-Property-Sales-e74b184f52124e219c320bb61b2b89b8) as opposed to the default of 1 token equals 1 vote.
    - [View on-chain results](https://allo.info/application/3074255845)

## 2025-06-13

- Property Update (06/13/2025):
    - Owners are currently receiving the net cash flow for May on a daily basis through July 12th.
    - May's net cash flow totaled $507.49, compared to April's net cash flow of $893.82.
    - Earl, the co-owner and Property Manager, has shared additional details for investors, outlined below:
    - NOI: $507.49 (43% decrease over April)
    - $250 Principal Curtailment
    - $257.49 + $62.50 DAO LLC Fees = $319.99 sent to Lofty
    - [YTD Profit & Loss Statement](https://www.dropbox.com/scl/fi/8d9qxje0m8qha7kqqpr8l/P-L-90-Madison-Ave-Albany-NY-12202.xlsx?rlkey=bkd8lcejkz851dcchpc792b26&e=1&st=yokk00dh&dl=0)
    - [Reservations](https://www.dropbox.com/scl/fi/k9bhlr10gzds8n7f5wnmx/Reservations-2025-05-90-Madison-Ave-Albany-NY-12202.csv?rlkey=vj9bax0fkuv55so1r9a7cj442&dl=0)
    - [Metrics](https://www.dropbox.com/scl/fi/wyw6ptd3n8rzfft94nll8/KPIs-2025-05-90-Madison-Ave-Albany-NY-12202.csv?rlkey=2j9h53mze5zu1gho9ogn3mnaq&dl=0)
    - [Bank Statements](https://www.dropbox.com/scl/fo/xxyoigid87j94cotpygbg/ABFkzrZmZgSh7odXLb52iLg?rlkey=rcdwryqtlq5woeecatqjxm6sr&dl=0)

## 2025-06-12

- Property Update (06/12/2025):
    - Governance Results for 90 Madison Ave:
    - The Governance Voting results are back for the owner-proposed vote.
    - The leading vote is:
    - Yes, I want to implement the “Profit Last” system, prioritizing long-term profits.
    - This vote was voted on by 4 out of 38 participants, receiving 57.27% of the voting power. This is a co-ownership property, which means the governance mechanism used the [scaled governance calculation](https://www.notion.so/loftyai/Governance-Mechanism-For-Partial-Property-Sales-e74b184f52124e219c320bb61b2b89b8) as opposed to the default of 1 token equals 1 vote.
    - [View on-chain results](https://allo.info/application/3072330284)
    - This vote will not pass because it did not receive a Supermajority of 60%+.

## 2025-06-05

- Property Update (06/05/2025):
    - Owner-Proposed Governance Vote for 90 Madison Ave:
    - Three owners are submitting a governance proposal for this property, including Earl Co, the current property manager.
    - These owners hold 1,335 tokens in this property and their wallet addresses can be viewed [here](https://allo.info/account/PIJSMONVV6UOTMOBLHY24OIZR2C7HIHAV3XZ7V7BTAFHWBGCFL3X65M2XA), [here](https://allo.info/account/ZZCRQLKXGUMROJ2TL5XHEC5GVJQJVMNWWEHXN2J7BRFUKNU26LD6JCSYRQ), and [here](https://allo.info/account/YILY2YPFH2HODAZSMVJ6C2URUTBJSEPB3377SIKHFCFMGQEEFAJ3E5TYDM).
    - The owners' proposal is below, word-for-word:
    - Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.
    - 90 Madison Property Management Restructuring Proposal: New “Profit Last” system Bottom Line Up Front: We propose restructuring 90 Madison’s property management and operations management to accelerate mortgage payoff while ensuring operational stability through a new PM fee structure and income deferral system, “Profit Last.” Current Situation
    - Property: 90 Madison,
    - Current structure: Standard 25% Gross Revenue PM arrangement, 50% of NOI directed to Mortgage Principal Payments,
    - Current P&I payment: ~$1800/month,
    - Current property management by Earl/Ecosystems LLC,
    - Proposed Changes
    - Property Management Fee Restructure,
    - New Fee Structure:
    - Flat fee component: $1800/month,
    - Performance component: 5% of gross revenue,
    - Total estimated monthly PM fee between $1800 and $2200, varying,
    - Implementation:
    - Fee change effective immediately upon approval,
    - Tokens released from escrow related to this change will be immediately burned to reduce supply. Earl maintains the right to purchase tokens from escrow with additional Principal contributions.,
    - Once the mortgage balance reaches $0, Ecosystems LLC property management fee drops to 15%.,
    - Income Deferral & Reserve System,
    - Reserve Fund Refresh:
    - Target reserve: $20,000,
    - Purpose: Cover PM fee and operational costs during low-performance months.,
    - Cash Flow Management:
    - When reserves < $20k: 100% of Net Operating Income (NOI) shall be directed to reserves,
    - When reserves ≥ $20k: 100% of NOI shall be directed to mortgage principal payments, associated tokens will be burnt. Rounding down or up to the nearest token is appropriate,
    - Zero cash distributions until mortgage is fully paid off
    - Risk Mitigation,
    - Management Continuity:
    - If Earl discontinues property management mid-mortgage a new Property Manager must be re-voted upon
    - $1800 monthly PM fee would either be directed towards the outstanding mortgage or a new PM
    - Well funded reserves enable the DAO to make prudent decisions
    - Options:
    - Yes, I want to implement the “Profit Last” system, prioritizing long-term profits.
    - No, I do not want to implement the “Profit Last” system. Keep everything as-is.
    - The results will be determined by a 60% Supermajority using the Ranked Choice Voting method and will be sent to all owners on Tuesday, June 10th once the voting period ends.

## 2025-06-05

- Property Update (06/05/2025):
    - An owner of this property has put together a counter-proposal.
    - This is in response to the previous governance vote sent out on 6/5, which can be viewed on the property page.
    - If you have already voted, and would like to change your vote, click the button below, or at the end of this email.
    - The owner who proposed the counter-proposal owns 161 tokens in this property, and their wallet can be viewed [here](https://allo.info/account/FZQHXDW4DJ55BA3OJMTPEPQQHQOJDYZQFOTEWHHNGKYQJVUZHFOJZNKNQU).
    - The owner's counter-proposal is below, word-for-word:
    - Because this is an owner proposed vote, Lofty cannot change the content. It’s up to owners to verify the accuracy of the claims below.
    - This proposal is very concerning. Essentially earl is proposing we have zero cash flow for the next five years, and in exchange , he gets to purchase as many tokens from escrow as he wants at 50$ per token during the last six months or year.
    - This proposal massively benefits earl and punishes anyone who holds the token in comparison. We could spend 5 years with no cash flow and instead of being left with a fully burnt token and 20% cash flow, we will be left with maybe 10% cash flow and earl being able to buy up the rest of the tokens at the end of the wait period.
    - This is essentially a proposal for us to pay the interest and get nothing in return.
    - I therefore suggest we vote no on the proposal and go back to the drawing board on this one.

## 2025-05-17

- Property Update (05/17/2025):
    - Owners are currently receiving the net cash flow for April on a daily basis through June 12th.
    - April's net operating income totaled