
About INREIT
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Thank you all for joining us. And thank you for trusting Invesco and Invesco Real Estate Income Trust Inc., or N REIT. I'm Joe Spalding, lead portfolio manager of energy and I'm Dasani co portfolio manager for energy. Our mantra going into 2024 was to control the Controllables. It was a particularly useful reminder during a turbulent macro and political environment with suppressed capital flows for private real estate.
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We've always employed an active management strategy, but 2024 was our most illustrative year yet. From a portfolio management standpoint. In 2024, we grew same store property level operating cash flow by 4%, maintained a healthy distribution rate, and fully satisfied all redemption requests without proration.
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in December 2020 for our first offering under our 1031 DSC program was fully subscribed and now close to new investors. In addition, our second DST offering commenced in October of 2024. We maintain an average leverage ratio of 32% through 2024 and sold three assets comprising 13% of gross asset value, for amounts exceeding their carry value.
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Furthermore, we closed three new investments in residential and industrial sectors and further enhanced our liquidity position with over 100 million in cash and securities available to deploy.
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A confluence of factors along with our accomplishments sets the stage for a compelling entry point for private real estate. In our view, with moderating but still healthy occupier demand high occupancy with declining supply.
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We believe values have the potential to rise from what we see a cycle lows in REIT sector allocation is thoughtful, and it's by design through 2024. In REIT was more heavily weighted in sectors such as health care, self-storage and student housing. We were also an early adopter of private credit, which provided cash flow growth in a period of higher borrowing rates.
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We remain committed to these sectors within our broader portfolio construction, but we now see an opportunity to add residential and industrial at what we believe is reset pricing. We acted on what we believe was an attractive opportunity set in 2024 and have a robust pipeline to build on in 2025. Our recent investment activity includes industrial assets in Charlotte and southern new Jersey, apartments in Dallas, Texas, and six additional structured investments within the retail sector.
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In addition, portfolio leverage of 28% is below our stated target range of 50 to 60%, providing flexibility to strategically use incremental leverage. And we're sitting on more investable dry powder than we've had in four years.
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We're proud of Henry's performance in a volatile year, and despite the potential for an uneven recovery ahead, we're focused on long term convictions in strong sectors and markets. As always, we're grateful for your trust and your patience. We're very excited for what's ahead and look forward to our continued partnership.
Watch Chase Bolding and Akbar Dosani discuss INREIT's 2024 highlights and 2025 outlook.
Taxable distributions are reported to you on IRS Form 1099-DIV. The tax character of these distributions as a percent of each total distribution is listed in the table below:
1099-DIV | 1A Ordinary Dividends |
1B Qualified Dividends |
2A Capital Gains |
2B Unrecaptured Section 1250 Gain |
3 Non-dividend Distribution |
5 Section 199a Dividends |
---|---|---|---|---|---|---|
2024 | 6.57% | 0.00% | 85.23% | 31.45% | 8.20% | 6.57% |
2023 | 0.00% | 0.00% | 0.00% | 0.00% | 100.00% | 0.00% |
2022 | 0.84% | 0.00% | 0.00% | 0.00% | 99.16% | 0.84% |
2021 | 0.00% | 0.00% | 0.00% | 0.00% | 100.00% | 0.00% |
2020 | 0.00% | 0.00% | 0.00% | 0.00% | 100.00% | 0.00% |
2019 | 0.00% | 0.00% | 0.00% | 0.00% | 100.00% | 0.00% |
2018 | 0.00% | 0.00% | 0.00% | 0.00% | 100.00% | 0.00% |
Summary of Risk Factors
Invesco Real Estate Income Trust Inc. (INREIT) is a non-listed REIT that invests primarily in stabilized, income-oriented commercial real estate in the United States. To a lesser extent, INREIT also originates and acquires private real estate debt, including loans secured or backed by real estate, preferred equity interests and interests in private debt funds. INREIT invests in liquid real estate-related equity and debt securities intended to provide current income and a source of liquidity for its share repurchase plan, cash management and other purposes. This investment strategy involves a high degree of risk and is intended only for investors with a long-term investment horizon and who do not require immediate liquidity or guaranteed income. If INREIT is unable to effectively manage the impact of the risks inherent in its business, it may not meet its investment objectives. You should only invest in INREIT if you can afford a complete loss of your investment. You should read the Prospectus carefully for a description of the risks associated with an investment in INREIT. The principal risks relating to an investment in INREIT include, but are not limited to the following:
Forward-Looking Statement Disclosure
The website contains forward-looking statements about INREIT’s business, including, in particular, statements about its plans, strategies and objectives. You can generally identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue” or other similar words. These statements include INREIT’s plans and objectives for future operations, including plans and objectives relating to future growth and availability of funds, and are based on current expectations that involve numerous risks and uncertainties. Assumptions relating to these statements involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to accurately predict and many of which are beyond INREIT’s control. Although INREIT believes the assumptions underlying the forward-looking statements, and the forward-looking statements themselves, are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that these forward-looking statements will prove to be accurate, and INREIT’s actual results, performance and achievements may be materially different from that expressed or implied by these forward-looking statements. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of this information should not be regarded as a representation by INREIT or any other person that INREIT’s objectives and plans, which are considered to be reasonable, will be achieved.
Additional Important Information about INREIT
An investment in INREIT is not a direct investment in real estate, and has material differences from a direct investment in real estate, including those related to fees and expenses, liquidity and tax treatment INREIT’s share price is subject to less volatility because its per share NAV is based on the value of real estate, private real estate debt and real estate related securities that it owns and is not subject to market pricing forces as are the prices of public REITs. Although INREIT’s share price is subject to less volatility, INREIT shares are significantly less liquid than these asset classes and are not immune to fluctuation. Private real estate is not traded on an exchange and will have less liquidity and price transparency. The value of private real estate may fluctuate and may be worth less than was initially paid for it.
The volatility and risk profile of the indices presented is likely to be different from that of INREIT including those related to vehicle structure, investment objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return and tax features. In addition, the indices employ different investment guidelines and criteria than INREIT; as a result, the holdings in INREIT may differ significantly from the holdings of the securities that comprise the indices. The indices are not subject to costs or expenses and it may not be possible to invest in the indices. The performance of the indices has been selected to represent an appropriate benchmark to compare to INREIT’s performance, but rather is disclosed to allow for comparison of INREIT’s performance to that of well-know and widely recognized indices. In the case of equity indices, performance of indices reflects the reinvestment of dividends.
INREIT does not trade on a national exchange, and therefore, is generally illiquid. Your ability to redeem shares in INREIT through INREIT’s repurchase plan is subject to significant limitations, and fees associated with the sale of these products can be higher than other asset classes. In some cases, periodic distributions may be subsidized by borrowed funds and include a return of investor principal. This is in contrast to distributions investors receive from large corporate stocks that trade on national exchanges, which are typically derived solely from earnings. Investors typically seek income from distributions over a period of 10 years. Upon liquidation, return of capital may be more or less than the original investment depending upon the value of assets.
An investment in INREIT is not an investment in fixed income. Fixed income has material differences from an investment in a non-listed traded REIT, including those related to vehicle structure, investment objectives and restrictions, risks, fluctuation of principal, safety, guarantees or insurance, fees and expenses, liquidity and tax treatment.
Important Information About Other Invesco Real Estate Funds
This website includes information related to prior investments Invesco Real Estate has made, in which INREIT will not have any interest. While the investment programs of other Invesco real estate accounts and INREIT’s investment strategy each involve real estate-related investments and overlapping personnel, each of the accounts and strategies has distinct investment activities, including but not limited to, objectives, costs and expenses, tax features and leverage policies. Invesco Real Estate’s experience in managing other Invesco real estate accounts and other Invesco accounts is not necessarily applicable to INREIT. There can be no assurance that INREIT will be able to successfully identify, make and realize any particular investment or generate returns for its investors.
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