Sell Lightstone Value Plus REIT II Shares

Investment Overview

Lightstone Value Plus REIT II

Lightstone Value Plus REIT II, Inc. ("Lightstone REIT II") is a public, non-listed real estate investment trust whose common shares are not listed for trading on a national securities exchange.

The company was formed in 2008 and has invested primarily in hospitality properties, together with interests in certain retail and hotel joint ventures.

As of June 30, 2026, Lightstone REIT II majority owned 10 limited-service hotels containing a total of 1,352 rooms. It also held a 48.6% interest in a joint venture owning two retail properties and a 50% interest in a joint venture owning the Hilton Garden Inn in Long Island City, New York.

Because Lightstone REIT II shares do not trade on a national securities exchange, shareholders seeking liquidity may need to evaluate the company's share repurchase program, transferability, private secondary market demand, current valuation information, ownership structure, and applicable transfer requirements.

Investment Snapshot

Lightstone REIT II At A Glance

Portfolio

What Does
Lightstone REIT II Own?

Lightstone REIT II's portfolio is primarily concentrated in hospitality real estate.

As of June 30, 2026, the company majority owned and consolidated 10 limited-service hotels containing 1,352 rooms.

The company also held a 48.6% non-managing interest in the Brownmill Joint Venture, which owns the Browntown Shopping Center in Old Bridge, New Jersey and Millburn Mall in Vauxhall, New Jersey.

Lightstone REIT II also held a 50% co-managing interest in the Hilton Garden Inn Long Island City joint venture. Lightstone Value Plus REIT III owns the remaining 50% interest.

Hospitality performance improved during the first six months of 2026. Occupancy increased to 64% from 63%, average daily rate increased to $147.81 from $144.81, and revenue per available room increased to $94.79 from $91.65 compared with the same period in 2025.

Estimated Net Asset Value

What Is The Current
Lightstone REIT II NAV?

The most recent board-approved estimated net asset value disclosed by Lightstone REIT II is $10.67 per common share.

The company's board approved that estimated NAV on March 25, 2026, based on a valuation date of December 31, 2025. The corresponding estimated aggregate net asset value was approximately $170.1 million.

The $10.67 estimated NAV can provide shareholders with a useful reference point, but it should not be assumed to represent the price at which an investor can immediately sell Lightstone REIT II shares.

A private secondary market transaction may reflect buyer demand, expected holding period, current financial performance, portfolio risks, transferability, future liquidity expectations, and other market considerations.

Share Repurchase Program

Understanding The
Lightstone REIT II SRP

Lightstone REIT II maintains a share repurchase program intended to provide certain eligible shareholders with limited interim liquidity.

Under the terms disclosed in the company's August 2026 Form 10-Q, the program currently permits redemption requests related to a shareholder's death or certain hardship circumstances.

Approved repurchases under the program are priced at the company's estimated NAV per share in effect on the actual redemption date.

Death-related redemption requests generally must be received within one year of the shareholder's date of death.

The board has established an annual limitation of 0.5% of the number of common shares outstanding at the end of the preceding year for death redemptions and a separate 0.5% limitation for hardship redemptions.

Eligible requests are generally processed quarterly and may be prorated if requests exceed the applicable limits. The board also retains the ability to amend or suspend the share repurchase program.

During the six months ended June 30, 2026, Lightstone REIT II repurchased 92,191 common shares at a weighted average price of $10.80 per share.

Investors comparing the company's repurchase program with other potential exit paths can also review AIL's guide on how to get out of a non-traded REIT.

Distributions

Current Lightstone REIT II
Distributions

Lightstone REIT II declared a distribution of $0.075 per common share for the quarter ended June 30, 2026.

That quarterly amount is equivalent to an annualized distribution of $0.30 per share, or 3% based on a $10.00 share price.

The June 30, 2026 distribution was paid on July 15, 2026 to shareholders of record at the close of business on June 30.

Future distributions remain subject to board authorization and may be affected by operating results, liquidity needs, debt obligations, capital requirements, and the company's requirement to maintain REIT tax status.

2026 Financial Update

Recent Financial
Condition And Performance

As of June 30, 2026, Lightstone REIT II reported total assets of approximately $170.1 million and total liabilities of approximately $108.6 million. Total equity was approximately $61.5 million.

The company reported approximately $21.3 million of cash and cash equivalents, $1.3 million of restricted cash, and $10.2 million of marketable securities.

Revenue from the consolidated hotel portfolio increased to approximately $25.0 million during the first six months of 2026, compared with $24.1 million during the same period in 2025.

However, the company reported a net loss of approximately $7.1 million for the first six months of 2026.

A significant factor was a $5.2 million non-cash impairment charge recorded during the first quarter related to the company's Philadelphia Hotel Portfolio. The company reduced the portfolio's carrying value to an estimated fair value of $16.3 million after deciding to explore a potential sale of the two Philadelphia hotels and an adjacent land parcel.

Debt And Liquidity

Debt May Influence
Future Liquidity And Value

Lightstone REIT II's 10 consolidated hotel properties secure a credit facility that had approximately $97.8 million of principal outstanding as of June 30, 2026.

At June 30, all 10 hotels remained pledged as collateral and no additional borrowings were available under the facility's revolving feature.

The company entered into a loan modification with its lender on July 17, 2026 that removed the revolving feature and modified certain financial covenant requirements.

Lightstone REIT II also disclosed that it did not satisfy the prescribed minimum debt-yield requirement as of June 30, 2026, although the lender provided a waiver.

Debt levels, refinancing requirements, hotel performance, interest rates, and future asset sales can therefore be relevant considerations when investors and potential buyers evaluate the investment.

Lightstone REIT II Liquidity

Can Lightstone REIT II
Shares Be Sold?

Potentially. Lightstone REIT II shares are not currently listed on a national securities exchange, and the company states that there is no established public market for its common shares.

The company's share repurchase program provides limited liquidity for certain death and hardship situations, but it does not function as a general redemption program for every shareholder seeking to exit.

Depending on transferability and available buyer demand, certain Lightstone REIT II positions may also be evaluated for a private secondary market transaction.

Private transactions differ from selling a publicly traded stock. There is generally no continuously quoted market price, and a buyer may not be available for every position.

Investors who want to understand this process in greater detail can review AIL's guide to the non-traded REIT secondary market.

Valuation Considerations

What May Affect
Lightstone REIT II Value?

Estimated NAV

The latest board-approved estimated NAV is $10.67 per share as of December 31, 2025. NAV is an estimate of value and does not necessarily represent an immediately available sale price.

Hospitality Performance

Occupancy, average daily room rates, revenue per available room, operating costs, and broader hotel-market conditions can influence the value of Lightstone REIT II's portfolio.

Philadelphia Hotel Portfolio

The company recorded a $5.2 million impairment related to its Philadelphia Hotel Portfolio during the first quarter of 2026 and has been exploring a potential sale of those properties.

Debt And Refinancing

Approximately $97.8 million was outstanding under the company's principal hotel credit facility as of June 30, 2026. Financing costs, covenant requirements, refinancing availability, and future loan terms may affect value and liquidity.

Distributions

Current and future distributions can influence buyer demand. Lightstone REIT II paid a $0.075 per-share distribution for the quarter ended June 30, 2026.

Transferability And Buyer Demand

Secondary market pricing may vary based on the size and registration of the position, transfer requirements, available buyer interest, expected holding period, and prevailing market conditions.

Investors who want additional context on how private transaction pricing can differ from statement value or estimated NAV can review AIL's guide on how to sell a non-traded REIT.

Documentation

Information Commonly
Requested For Review

A recent account statement is generally the most useful starting point when reviewing a Lightstone Value Plus REIT II position.

The statement can help confirm the investment name, number of shares, account registration, custodian, and current ownership structure.

Additional documentation may be needed for positions held through an IRA, trust, estate, LLC, partnership, or other entity.

If a potential transaction moves forward, transfer forms, ownership verification, tax documentation, signature guarantees, or other records may also be required depending on current company and transfer-agent procedures.

Marketability Assessment

What Determines Whether
A Lightstone Position Can Be Reviewed?

Not every Lightstone Value Plus REIT II position will necessarily qualify for a private secondary market transaction.

Review eligibility may depend on the number of shares, account registration, transferability, ownership documentation, current company requirements, buyer demand, market conditions, and the pricing expectations of both the shareholder and potential purchaser.

A confidential review can help determine whether a Lightstone REIT II position may qualify for further evaluation and whether a potential liquidity pathway may currently exist.

Investors who would like AIL to evaluate a specific position can request a confidential investment review.