The Income Real Estate Fund holds a roughly $50 million portfolio of publicly-traded REIT investments with a current dividend yield of approximately 13.3%.
The Income Real Estate Fund has initiated a position (bought securities) in AGNC Investment Corp, a publicly-traded mortgage REIT, and has increased its position in Annaly Capital Management, bringing the total portfolio cost-basis to approximately $50 million in invested principal as of August 31, 2023. (Note: Invested principal does not include any mark-ups or write-downs as a result of market changes.)
The Income Real Estate Fund began purchasing shares of publicly-traded mortgage REITs in July, and we plan to continue to manage this portfolio on an ongoing basis as long as the current dynamic of pricing dislocation in public markets exists. We believe this period of exceptionally attractive pricing to be temporary, which presents us with a distinct window for these investment opportunities. We intend to focus on selective publicly-traded REITs issued by the most creditworthy mortgage financing groups, where the collateral (i.e., a portfolio of agency mortgage-backed securities, residential credit, and mortgage servicing rights) consists of high-quality residential mortgages in strong locations, where we might otherwise be direct buyers and owners of real estate in our funds over the long-term.
See the table below for a detailed breakdown of the fund’s public equity holdings as of August 31, 2023.
For more information about our public equity investment strategy, please refer to this page.
Additional Information: An investor in the Fundrise Income Real Estate Fund (the “Fund”) should consider the investment objectives, risks, and charges and expenses of the Fund carefully before investing. The Fund’s prospectus contains this and other information about the Fund and may be obtained here. Investors should read the prospectus carefully before investing.
1. The current dividend yield solely represents the issuer’s estimated annual dividend payments to common stockholders expressed as a percentage of the current stock price and does not reflect either a gross or net return that an investor in the Fundrise Income Real Estate Fund, LLC (the “Income Real Estate Fund”) may expect to receive as a result of this estimated annual dividend payment 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 the asset to the investor is currently unknowable and undeterminable, and may ultimately be lower or higher than the stated fixed rate of return. However, please note that all investors in the Income Real Estate Fund will be subject to a 0.15% advisory fee and the Income Real Estate Fund is subject to a 0.85% asset management fee. All securities involve risk; please consider the risks and objectives before investing in the Income Real Estate Fund. For more information, including the Prospectus, please see1. This solely represents a fixed rate of return due to the Fundrise Income Real Estate Fund, LLC (the “Income Real Estate Fund”) under the terms of the investment agreement(s), and does not reflect either a gross or net return that an investor in the Income Real Estate Fund 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 the asset to the investor is currently unknowable and undeterminable, and may ultimately be lower or higher than the stated fixed rate of return. However, please note that all investors in the Income Real Estate Fund will be subject to a 0.15% advisory fee and the Income Real Estate Fund is subject to a 0.85% asset management fee. All securities involve risk; please consider the risks and objectives before investing in the Income Real Estate Fund. For more information, including the Prospectus, please see here.
