Invesco REIT Commences DST Program
Invesco Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust, announced that the company has entered the securitized Delaware statutory trust space with the commencement of its DST Program, which had been authorized by its board of directors last summer. Invesco REIT may issue and sell up to $3 billion in private placement offerings via its Delaware statutory trust program.
The REIT operating partnership, Invesco REIT Operating Partnership L.P., will guarantee each master lease agreement and will retain the right to acquire the DST interests from their investors at fair market value any time after two years from the closing of the applicable DST offering in exchange for units of the operating partnership or cash. After a one-year holding period, investors who acquired operating partnership units via the DST program may generally have the right to cause the operating partnership to redeem all or a portion of their OP units for, at the discretion of Invesco REIT, shares of common stock in the REIT, cash, or a combination of both.
In connection with the DST Program, Invesco Real Estate Exchange LLC, an indirect wholly owned subsidiary of the operating partnership, entered into a dealer manager agreement with Invesco Real Estate Income Trust Inc.
Under the DST dealer manager agreement, the Invesco Real Estate Exchange LLC may pay to the Invesco Real Estate Income Trust Inc. upfront selling commissions of up to 5.0% of the price per interest sold, upfront dealer manager fees of up to 1.0% of the price per Interest sold and placement fees of up to 1.0% of the price per Interest sold. Some or all of the selling commissions and placement fees may be waived or reallowed to participating broker-dealers. In addition, the Invesco Real Estate Income Trust Inc. may receive an ongoing investor servicing fee of 0.25% per annum of the price per interest sold.
The operating partnership will pay the Invesco Real Estate Income Trust Inc. ongoing fees in amounts up to: 0.85% per annum of the NAV of any such Class T-1 Units, consisting of an advisor stockholder servicing fee of 0.65% per annum and a dealer stockholder servicing fee of 0.20% per annum; up to 0.85% per annum of the NAV of such Class S-1 Units; and up to 0.25% per annum of the NAV of such Class D-1 Units. The company says all or a portion of the investor servicing fee may be reallowed to participating broker-dealers.
For its services, Invesco Real Estate Income Trust Inc. generally will receive from each DST a management fee equal to 0.15% of the purchase price of the interests sold to third parties in the applicable DST Offering. Invesco Real Estate Income Trust Inc. will also receive reimbursements of certain expenses associated with the establishment, maintenance and operation of the DST, the management of the DST properties and the sale of any DST property to a third party.
The REIT launched its public offering, which seeks to raise up to $3.0 billion, in May 2021. As of Nov. 9, 2022, the REIT has received aggregate net proceeds of $111.7 million from its initial public offering and another $487.3 million in gross proceeds from private offerings. As of Sept. 30, 2022, the company had an aggregate NAV of $566.7 million.
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