Dear Partners,

The Constitution Real Estate Credit Fund closed Q2 2025 with strong performance, 21.81% Net Return YTD, driven by multiple successful resolutions on non-performing loans and continued stable cash flow from our retail holdings. The Orange, CT shopping center remains a reliable performer, and several value-enhancing developments are underway.

We’re also excited to share that we’re planning our first official investor meetup this fall in Greenwich, CT, coinciding with the grand opening of our new office at 200 Pemberwick Road. We’ll send email invites soon and look forward to connecting in person.

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Learn more about the fund

Performance

• Net Return FY 2024: 57.60%
• Net Return YTD (as of June 30, 2025): 21.81%

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Net P/L Performance by Month Breakdown

Jan 2024
-1.21%

Feb 2024
2.85%

Mar 2024
6.59%

Apr 2024
3.38%

May 2024
5.84%

Jun 2024
5.78%

Jul 2024
4.68%

Aug 2024
3.83%

Sep 2024
0.06%

Oct 2024
2.69%

Nov 2024
4.11%

Dec 2024
8.02%

YTD 2024
57.60%



Jan 2025
10.27%

Feb 2025
2.18%

Mar 2025
2.25%

Apr 2025
2.52%

May 2025
0.61%

Jun 2025
1.63%

YTD 2025
21.81%

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Portfolio Insights and Highlights

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• As of June 30, the Fund holds 12 active investments, including three new acquisitions added this quarter:
  
  • Stamford, CT – NPL backed by 22-unit multifamily
  • New Haven, CT – NPL backed by a 90% complete 125+ unit multifamily development
  • Hartford, CT – Mixed-use performing loan

• We also saw two successful resolutions this quarter: one NPL and one PL were paid off
• The fund reached $11 million in NAV in under 18 months! Growth we’re proud of, and grateful to our investor base for making possible. Across the broader Constitution Lending platform, we now manage over $100 million in capital, including both fund assets and actively managed individual/prefunding notes and JVs.
• The fund alone now includes over 90 limited partners, and more than 400 accredited investors have participated across the platform. Whether you’re new to Constitution or a long-time supporter, thank you for being part of it. If we haven’t had a chance to connect directly, we’d love to hear from you.

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Asset Updates:

• Hartford, CT Multifamily NPL:
  We’ve reached a resolution allowing the full payoff to be calculated as the new principal balance, including accrued interest. With a 24% default rate, this means we’re earning interest on interest, compounding returns for the Fund. The borrower must pay off by February 2026 or the Fund receives title to the properties. While we expect a payoff, resolution paths for NPLs often surprise even us. Either outcome is quite favorable. This one is on track for a great outcome.

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• Orange, CT Shopping Center:
  Construction is underway for the new The 7 Brew Coffee drive thru.
  ‍See timelapse of current progress
  The asset continues to generate steady monthly income. We have letters of intent for the remaining 4,000 sqft and expect full occupancy by year-end, which will further increase value.

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Market Thoughts

• The environment for acquiring non-performing loans remains highly favorable. Lenders continue to offload paper as high interest rates strain capital markets, creating opportunities. Our deal pipeline remains robust, and we anticipate an active second half of the year.
• For more detailed commentary, refer to the "Market Thoughts" section in our previous fund update.

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Distributions & Administration

• Everyone should have gotten their 2024 K1s. If you didn’t and were an investor in 2024, please let us know and we will have it sent to you.
• We are looking to do distributions to cover any investor tax expenses. We will reach out to confirm 1. If you want a distribution, 2. Wiring info for the distribution and a simple form we need filled out. 
• 2024 Audit is being sent to all existing investors in 2 weeks and will also be sent out as an email.
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Closing Thoughts

• Constitution continues to do what it was built for: producing strong returns with strong collateral backing by leaning into complexity and executing legally and operationally. With several successful workouts, a healthy pipeline, and $11M in NAV, we’re entering the second half of the year with strong footing. We appreciate your continued trust and look forward to seeing many of you in Greenwich this October.

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Learn more about investing in the Constitution Real Estate Credit Fund

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Yours truly,
Ricardo, Kyle, and Joe

200 Pemberwick Road
Greenwich CT 06831

Invest@ConstLending.com
203-423-3534