Public equities portfolio update — August 2023

The Balanced eREIT II holds a roughly $4.3 million portfolio of publicly-traded REIT investments with a current dividend yield of approximately 12.8%.

Sep 27, 2023

The Balanced eREIT II has initiated a position (bought securities) in Annaly Capital Management, a publicly-traded mortgage REIT, bringing the total portfolio cost-basis to approximately $4.3 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 Balanced eREIT II began purchasing shares of publicly-traded mortgage REITs in August, 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 the fund’s other investment strategies, please refer to this page.

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 Balanced eREIT II, LLC (the “Balanced eREIT II”) may expect to receive as a result of this estimated annual payment dividend 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 Balanced eREIT II will be subject to a 0.85% asset management fee and 0.15% advisory fee. For more information, including the Prospectus, please see here.

Public equities portfolio update — August 2023

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