The Income Real Estate Fund's annualized distribution rate has been climbing steadily. It has held around 8% since the start of the year, and as of August 2026 it has moved up to roughly 8.15%.¹ That increase isn't the result of any one event. It reflects our ability to keep putting capital to work in preferred equity backed by real, income-producing residential assets, and to do so at a point in the cycle when many other capital sources have pulled back from financing new construction and refinancings.

The effect is a portfolio that earns high fixed rates of return while staying anchored to tangible assets in growing markets. Our preferred equity investments sit senior to the sponsor's common equity, which means our position is structured to be repaid before common equity participates in any distributions.

Where we've been putting capital to work

Three of our most recent investments give a good sense of what the fund is deploying into today, from ground-up development to stabilized, cash-flowing communities, each alongside a sponsor we've worked with before.

North Charlotte Development

North Charlotte Development

A 14.75%2 preferred equity investment in a 312-unit ground-up multifamily development.
Four recapitalizations across Dallas-Fort Worth and Phoenix

Four recapitalizations across Dallas-Fort Worth and Phoenix

Four 13.5%2 preferred equity investments in stabilized build-for-rent communities across the Dallas-Fort Worth and Phoenix metro areas as part of a single portfolio recapitalization:
Panama City Multifamily

Panama City Multifamily

A 13%2 preferred equity investment in a stabilized 232-unit multifamily community in Panama City, Florida.

A meaningful premium over money market yields

It's worth putting the roughly 8.15% rate alongside the other income options many investors hold. As of early September 2026, Fidelity's Government Money Market Fund (SPAXX) carried a 7-day yield of 3.34%.³ At 8.15%, the fund's distribution rate is roughly 2.5x that, a difference of nearly five percentage points.

The two serve different purposes, and we want to be clear about that. A money market fund gives you daily liquidity and aims to hold a stable $1 share price. The Income Real Estate Fund invests in preferred equity that carries real estate and credit risk, and it offers only limited quarterly liquidity. For capital you're prepared to commit for longer, though, we believe that additional yield is a fair reflection of what you're taking on by holding assets backed by physical, income-producing real estate rather than a short-term government security.

We continue to see a robust pipeline of residential real estate credit opportunities involving sponsors we know and assets we understand, in markets where new supply looks to be moderating. Our approach hasn't changed: source investments that aim to deliver strong, stable income through disciplined underwriting and a focus on real assets.

If you have any questions, our Investor Relations team is at investments@fundrise.com.

1. As of August 1, 2026. The Income Real Estate Fund's current month's distribution is annualized and divided by the prior month's net asset value per share. Distribution rates are variable and not guaranteed.

2. This solely represents a fixed rate of preferred return due to the Fundrise Income Real Estate Fund under the terms of its investment agreement(s), and does not reflect either a gross or net return that an investor may expect to receive as a result of this fixed rate return. Due to the uncertainty of other factors that will ultimately determine the return to any investor (such as leverage, cash drag, and other potential financings), the performance of this asset to the investor is currently unknowable and undeterminable, and may ultimately be lower or higher than the stated fixed rate of preferred return.

3. Source: Fidelity Government Money Market Fund (SPAXX) 7-day yield as reported by Yahoo Finance, as of September 5, 2026. Money market fund yields are variable and change daily.

Disclosure: An investor in the Fundrise Income Real Estate Fund should consider the investment objectives, risks, charges, and expenses carefully before investing. The Fund's prospectus contains this and other information and may be obtained here. Investors should read the prospectus carefully before investing.