The Income Real Estate Fund holds roughly a $59.7 million portfolio of single-family rental asset-backed securities (ABS) and homebuilder corporate bonds across eight issuers for a weighted average gross yield of 8.79%.
As of March 31, 2023, the Income Real Estate Fund’s asset-backed securities (ABS) and homebuilder bond portfolio’s cost-basis is $59.7M in invested principal and consists of eight issuers with a weighted average gross yield of 8.79%. (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 ABS and homebuilder bonds at the end of last year, and we plan to continue to manage this portfolio on an ongoing basis as long as the current dynamic of pricing dislocation in credit markets exists. We believe this period of exceptionally attractive pricing is temporary and most acute in primary auctions. As before, we intend to focus on ABS pools issued by the most creditworthy borrowers and where the collateral (i.e., the portfolio rental homes) consists of high-quality homes in strong locations that we might otherwise be buyers and owners of in our other funds over the long-term.
See the table below for a detailed breakdown of the fund’s bond and ABS holdings as of March 31, 2023.*
For more information about our private credit investment strategy, please click here.
*The original version of this table published in the investor update on April 28, 2023, included a clerical error. This table has been updated to include the corrected list of holdings as of the date indicated.
1. 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.
