Investor Project Update – Development & Market Outlook

Over the past several months we have continued to make steady progress across several projects and are encouraged by both our current activity and the broader direction of the Utah real estate market. On the construction side, CB8 in Hyde Park is currently under contract, and we recently successfully closed on HV33 in Hyrum, marking another completed project for the portfolio. These transactions continue to validate the demand we are seeing for well-located new construction along the Wasatch Front and in the Cache Valley region.

Looking ahead, we are preparing to start several additional spec homes as part of our next phase of building. Our goal is to have these homes positioned for the 2026 Parade of Homes, which provides a strong marketing platform and historically generates high-quality buyer interest for new construction in our market. At the same time, we are continuing to strengthen the financial structure of our larger developments. We are currently locking down long-term financing for the Aria subdivision, while also working with Tayte Lackey and Steve Hewett to explore participation in the long-term real estate sales component of the project as the community continues to develop.

Beyond Aria, we are evaluating a significant land development opportunity above Hyde Park in collaboration with Tayte Lackey and Todd Horman. The preliminary concept for this project could ultimately yield 200+ residential lots, making it one of the more substantial future developments in the area. As part of the early stages of this project, several lots in the first phase have already been listed, allowing us to begin gauging market demand while continuing to refine the broader development plan.

From a macro perspective, the Utah housing market remains fundamentally strong. Statewide forecasts suggest modest home price appreciation of roughly 2–4% through 2026, with continued demand driven by population growth and ongoing housing shortages across the state. While the market has cooled from the rapid growth of the pandemic years, it has shifted into a more balanced and sustainable phase, with steady demand and improved buyer affordability as mortgage rates stabilize near the 6% range. Importantly, long-term projections show Utah will require hundreds of thousands of additional housing units over the coming decades, reinforcing the structural demand for new development and well-planned communities.

Overall, our strategy continues to focus on carefully phased development, strong partnerships, and disciplined project selection. With several homes completed, new builds on the horizon, and larger land opportunities advancing through early stages, we are optimistic about the trajectory of our current projects and the long-term value being created for the group. We appreciate your continued support and will provide further updates as these developments progress.

Thank you for your continued trust, support, and partnership as we build forward.

With appreciation,
The Crest Capital Leadership Team