GYRO · Gyrodyne, LLC

Operational discipline is a key focus, with ongoing reviews of activities for cost reductions and evaluation of additional capital or credit needs throughout the liquidation. This proactive stance addresses certain operating expenses under leases where the Company bears responsibility, helping sustain liquidity amid external pressures. The persistent residual effects of the pandemic continue to dampen demand for speculative office, medical office, and hotel developments, influencing the timing and mix of entitlements pursued.

A notable contingency involves a tenant default, which management has thoroughly assessed in its liquidation and operating cost estimates, concluding that current provisions remain adequate. This evaluation provides reassurance on financial planning resilience. Looking forward, future purchase agreements for properties like Flowerfield or Cortlandt are expected to condition closings on subdivision and site plan approvals, which the Company anticipates pursuing simultaneously rather than sequentially to optimize timelines.

The costs and time frames for achieving entitlements remain subject to variability from factors such as changing entitlement values or market conditions, underscoring the need for adaptive strategies. By maintaining this holistic management framework and addressing risks head-on, Gyrodyne positions itself to maximize shareholder value realization within the extended liquidation horizon.