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South Sky Capital | Q3 2026 Investor Update

Here is our third-quarter investor update, covering continued performance across the Mortgage Fund loan portfolio, breaking ground and foundation progress at Project Allison, and major development projects shaping Nashville's growth.

~0%
Approximate annualized net return for the Mortgage Fund through Q3 2026, net of all fees and expenses. The final 2026 result may change in Q4.
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Investor portal

Everything now lives in one place.

Your AppFolio investor portal is fully launched and up to date. It gives you one secure place to follow your investments and find the documents you need.

Example investor portal showing a $285,000 portfolio value, 2026 distributions, and available documents
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See a current view of your investments whenever it is convenient for you.

Find tax forms, statements, and fund documents in one secure place.

Review your contributions and distributions in a clear account history.

Look beyond the quarterly summary when you want more account detail.

Access your account from your phone or computer when it suits you.

Review new investment opportunities in the same familiar portal.

Rate environment

Elevated rates are still doing us a favor.

Rates held elevated through Q3, and that cuts two ways depending on which fund you're in. Drag the slider to where you think the 10-year settles over the next year, and watch how we'd be positioned.

6.8%
Roughly today's level
5.0%6.25%7.5%

Mortgage Fund

Elevated rates let us keep originating asset-backed loans at attractive yields, without loosening underwriting. This is the environment the fund is built for.

Lending yield strength: high

Equity Fund / build projects

Financing costs stay real, so we're only underwriting hand-picked projects, including Allison, that pencil under today's cost of capital and heavy scrutiny.

New-project selectivity: high bar, fewer deals
Modeled blended fund tilt at this rate
Mortgage-fund weighted

Illustrative model based on our current positioning, not a return projection or guarantee. Actual results depend on the loan book, deal flow, and underwriting at the time.

Equity Fund

Project Allison

Both side-by-side lots have been graded, and CMU foundation walls are now under construction.

Land closed
Foundation
Framing
Interior
Stabilized
Nashville, in Q3 | Oracle's East Bank campus

The neighborhood next door is taking shape.

A few minutes from our projects, Oracle's East Bank campus keeps moving from plans toward reality. It is an important signal for the broader Nashville market.

The greenway section of the build has been completed, opening up public riverfront space along the campus.

A 122-page campus master plan has been submitted to Metro zoning, moving the project a step closer to formal approval.

Nashville, in Q3

The city's foundation keeps expanding.

A few data points from the broader market worth knowing about, even outside our own portfolio.

$0B
In downtown Nashville development currently under construction or in progress, on top of $8.6B already delivered over the past decade.
0
Nashville's rank as the top U.S. city for corporate headquarters relocations, per Site Selection Magazine's 2026 rankings.
$0M
In tourism-tax bonds Nashville's convention authority plans to price this month to expand Music City Center, backed by record 2026 tourism revenue.
$0M
In tourism-tax dollars Metro Council routed to East Bank infrastructure in August, as Oracle's campus moves from planning into active site clearing.
Sources: Downtown Nashville Partnership Development Map · Nashville Area Chamber of Commerce, 2026 Economic Overview · The Bond Buyer, Sept. 2026 · Compass RE / Metro Council coverage, Aug. 2026
Kind regards,
Jeff, Johnny & Chip
South Sky Capital, LLC
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