Cottonwood Communities, Inc. is a non-listed REIT focused on investing in and managing multifamily residential properties nationwide, with a portfolio valued at approximately $2.3 billion.

# Company Overview: Cottonwood Communities, Inc.

## Business Description
Cottonwood Communities, Inc. (CCI) is a non-listed real estate investment trust (REIT) that operates with a perpetual life and a net asset value (NAV) basis. Since qualifying as a REIT in 2019, the company primarily invests in residential real estate assets across the United States.

## Investment Focus
- **Core Strategy:** Invests at least 65% of assets in stabilized multifamily apartment communities.
- **Additional Investments:** Up to 35% in mortgage loans, preferred equity, mezzanine loans, or development land for future multifamily projects.
- **Portfolio (as of December 31, 2024):**
  - **Operating Properties:** 28 multifamily apartment communities with 8,051 units.
  - **Development Projects:** 2 projects with 452 units under construction.
  - **Structured Investments:** 4 real estate-related investments totaling 1,080 units.
  - **Land Sites:** 4 land parcels held for future development.

## Assets and Portfolio
- **Total Assets (Dec 31, 2024):** Approximately $2.3 billion.
- **Asset Composition:**
  - 78% in operating properties.
  - 12.6% in development land and projects.
  - 9.4% in real estate-related investments.

## Management and Employees
- **Management:** Managed by external advisor CC Advisors III, LLC.
- **Employees (as of March 25, 2025):** 263 individuals.
  - 188 employees are site staff responsible for maintenance and leasing.
  - Remaining support functions include legal, finance, operations, and development.

## Stockholders and Securities
- **Outstanding Shares (as of March 25, 2025):**
  - **Class T:** 4,362,666 shares
  - **Class D:** 426,842 shares
  - **Class I:** 6,753,893 shares
  - **Class A:** 19,973,163 shares
- **Offerings:** Conducts public and private offerings, including ongoing public offerings of common stock and preferred stock placements.
  
## Revenue and Income (2024)
- **Distributions Paid:** $48.3 million (including cash and reinvested distributions).
- **Net Loss for 2024:** $20.6 million.
- **Cash Flow from Operating Activities:** $15.4 million.
- **Assets Under Management:** Portfolio valued at $2.3 billion, with properties managed to generate rental income.

## Strategic and Operational Details
- Focuses on stabilizing and long-term appreciation of real estate assets.
- Operates properties with a diversified geographical footprint across various markets.
- Manages the valuation and NAV calculations monthly, relying on third-party appraisals and in-house assessments.

## Summary
Cottonwood Communities, Inc. is a real estate investment company specializing in multifamily residential properties nationwide, with a large portfolio of over 8,000 units valued at approximately $2.3 billion. It manages and develops properties through its external advisor, with a focus on stable cash distributions, capital appreciation, and lower volatility compared to publicly traded real estate companies. The company is financed through offerings of common and preferred stock, with ongoing operations and growth driven by acquisitions, development, and structured investments in multifamily residential real estate.

Cottonwood Communities, Inc. is a non-listed, perpetual-life, NAV real estate investment trust that invests in multifamily apartment communities across the United States.

### Company Overview: Cottonwood Communities, Inc.

**Business Model:**
Cottonwood Communities, Inc. is a non-listed, perpetual-life, net asset value (NAV) real estate investment trust (REIT) established to invest in a diversified portfolio of multifamily apartment communities and real estate-related assets across the United States. The company and its subsidiaries operate primarily through Cottonwood Residential O.P., LP (CROP), its operating partnership.

**Qualification:**
Cottonwood Communities qualified as a REIT for U.S. federal income tax purposes beginning with the taxable year ended December 31, 2019. REIT status allows the company to avoid federal income taxes on income distributed to stockholders, provided it meets certain requirements stipulating that at least 90% of its taxable income must be distributed.

### Operations

**Portfolio:**
As of December 31, 2023, Cottonwood Communities' portfolio includes:
- **27 operating multifamily apartment communities** with a total of **7,761 units.**
- **4 development projects** totaling **987 units to be built.**
- **6 structured investments** amounting to **1,868 units.**
- **4 land sites** held for future development with an expected total of **852 units to be built.**
- Total portfolio value: **$2.3 billion.**

**Customer Base:**
The company primarily caters to residents of its multifamily apartment communities, although exact customer numbers are not specified in the reports.

### Financial Performance

**Employee Count:**
As of March 25, 2024, CCI employs **263 individuals**, including site employees responsible for maintenance and leasing as well as corporate-level employees who support operations.

**Revenue and Income:**
- **Total Revenues for Year Ended December 31, 2023:** $154.4 million.
- **Net Loss for Year Ended December 31, 2023:** $44.9 million, translating to a net loss attributable to common stockholders of **$23.2 million**, or **$0.68 per diluted share.**
- **Funds from Operations (FFO):** $(0.14) per diluted share, with Core FFO of **$0.20** per diluted share.

**Distributions:**
- During the year ended December 31, 2023, the company paid total distributions of **$47.5 million**, funded primarily through cash flows and additional borrowings.

### Corporate Governance

Cottonwood Communities is governed by a board of directors and managed externally by CC Advisors III, LLC. It has a defined compensation structure for its management team and directors, with a focus on performance-based incentives to align management interests with those of stockholders.

### Conclusion

Cottonwood Communities, Inc. is a growing REIT with a significant presence in the multifamily real estate market, poised to leverage its diversified portfolio and strategic management practices to drive long-term value for shareholders while adhering to REIT regulations and guidelines.

Cottonwood Communities, Inc.

10-K / March 31, 2025

10-K / March 28, 2024

10-K / March 31, 2025

Company Overview: Cottonwood Communities, Inc.

Business Description

Investment Focus

Assets and Portfolio

Management and Employees

Stockholders and Securities

Revenue and Income (2024)

Strategic and Operational Details

Summary