Risk warnings

1. Risk of total loss

The investor may lose part or all of the capital invested. No particular return or repayment of the nominal amount is guaranteed.

2. Issuer risk

The party obliged to pay is STATELY AG. If STATELY AG cannot meet its obligations, payments and repayment may fail.

2a. Limitation of the variable surplus participation (no compensation from free assets)

In accordance with the product and investment terms, the claim to a variable distribution is strictly limited to the positive net cash flow actually generated by the respective property. If the property’s net cash flow is not sufficient for this, the variable claim lapses without replacement for the settlement period; there is no claim to compensation of a shortfall from the other assets of STATELY AG or from the income of other projects.

2b. No security in rem

The investor’s claims are not secured by a direct lien, a mortgage or any other security right in rem over the property. The investor does not acquire a direct ownership share in the property.

3. Property value and market price risk

The value of a US residential property can fall. Sale proceeds may be below the purchase price or below the amount required for repayment.

3a. Transaction and closing risk

The investment is subject to the condition precedent of the successful acquisition of ownership and the financing of the property within 90 days of acceptance. If the closing fails, the capital is refunded; the investor has no claims to interest or damages as a result.

4. Rent default and vacancy

Tenants may default or the property may be vacant at times. This can reduce the funds available.

5. Property and maintenance risk

Repairs, maintenance, insurance claims, damage and unexpected property costs can reduce the available cash flow.

5a. Dependence on US service providers and authorities

Ongoing operations depend to a large extent on the reliability of the local US property management. With government-subsidised tenancies (e.g. Section 8 / HUD), delays in official payments, stricter inspection requirements or regulatory cuts to rent subsidies can reduce the cash flow.

6. Financing and interest rate risk

The property is financed with senior debt. Changes in interest rates, loan terms or debt service can affect the available funds and the realisation.

6a. Senior US mortgage and foreclosure

The property is financed by a senior US mortgage loan (senior mortgage). If the obligations under it are not duly met, the financing creditor can enforce its security rights under applicable US law and pursue a realisation (foreclosure). The realisation proceeds serve first to satisfy the claims secured by the senior mortgage. Any remaining proceeds may be insufficient, in whole or in part, for the STATELY product.

6b. Term and refinancing risk

The product term is 24 months, while the underlying US financing can have a considerably longer term. Repayment at the end of the term may therefore require a refinancing, a sale or another permissible realisation. Follow-on financing is not guaranteed.

7. Liquidity and capital lock-up risk

Early ordinary termination or withdrawal of capital by the investor is contractually excluded during the fixed term of 24 months. The capital invested is locked in until maturity. In the PoC there is no active secondary market; an early sale to third parties is not assured.

8. US legal and location risk

The property is subject to the law of the respective US state and to local regulations. Tenancy proceedings, evictions, official orders, taxes and local requirements can affect costs, delays and income.

9. Tax and withholding tax risk

US and Liechtenstein tax consequences and investor taxation depend on the structure, investor status and residence. Statutory withholding taxes or other levies can reduce the payout.

10. Currency risk

The investment is economically based on USD. Investors with EUR, CHF or another base currency carry the exchange rate risk.

11. Structural and counterparty risk

The economic allocation of cash flows depends on the specific US structure, account management, contracts and the rights of senior financing partners.

12. Legal and regulatory changes

Changes in Liechtenstein, EEA, US or local law can affect the structure, costs, taxation, marketing or execution of the investment.

13. Forecast and model risk

Calculated returns, scenarios, valuations and cash flow assumptions are modelled values and not a guarantee. Actual results can differ considerably.