Real Estate
INCREF
Invesco Commercial Real Estate Finance Trust, Inc.
About INCREF
Invesco Commercial Real Estate Finance Trust, Inc. (“INCREF”) is a perpetual life real estate investment trust that originates, acquires, and manages a diversified portfolio of loans and debt-like preferred equity interests secured by, or unsecured but related to, commercial real estate.
Transaction price¹
as of December 1, 2024
| Share Class | NAV (per share)² |
|---|---|
| Class S | $25.09 |
| Class S-1 | $25.19 |
| Class D | $25.07 |
| Class D-1 | $25.07 |
| Class I | $25.16 |
| Class E | $25.40 |
| Class F | $25.58 |
*Represents the transaction price per share of the applicable class of INCREF’s common stock for subscriptions accepted as of December 1, 2024 (and repurchases as of November 30, 2024). Transaction price per share is equal to NAV per share as of October 31, 2024. The transaction price presented is rounded to two decimal places.
Leadership team
As part of Invesco Real Estate, the INCREF management team seeks the best opportunities in the most attractive markets. The team integrates regional specialists with the global organizational strength of one of the world’s largest real estate managers.
Tax information
Form 1099-DIV
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:
| Stock | 1099-DIV | 1A Ordinary Dividends |
1B Qualified Dividends |
2A Capital Gains |
2B Unrecaptured Section 1250 Gain |
3 Non-dividend Distribution |
5 Section 199a Dividends |
|---|---|---|---|---|---|---|---|
Series A Preferred |
2023 |
100.00% |
0.00% |
0.00% |
0.00% |
0.00% |
100.00% |
Class S |
2023 |
76.2633% |
0.00% |
0.00% |
0.00% |
23.7367% |
76.2633% |
Class S-1 |
2023 |
76.2633% |
0.00% |
0.00% |
0.00% |
23.7367% |
76.2633% |
Class D |
2023 |
76.2633% |
0.00% |
0.00% |
0.00% |
23.7367% |
76.2633% |
Class I |
2023 |
76.2633% |
0.00% |
0.00% |
0.00% |
23.7367% |
76.2633% |
Class E |
2023 |
76.2633% |
0.00% |
0.00% |
0.00% |
23.7367% |
76.2633% |
Filings
Review our documents, reports, and other filings.
Important information
-
1
NAV is calculated in accordance with valuation guidelines that have been approved by our board of directors. NAV is not a measure used under generally accepted accounting principles in the United States (“GAAP”), and the valuations of and certain adjustments made to our assets and liabilities used in the determination of NAV will differ from GAAP. You should not consider NAV to be equivalent to stockholders’ equity of any other GAAP measure.
The December 1, 2024 transaction price (and the November 30, 2024 repurchase price) for each of our share classes is equal to such class’s net asset value (“NAV”) per share as of October 31, 2024. As of October 31, 2024, we had not sold any Class D-1 shares. The transaction price for our Class D-1 shares is based on the NAV per share of Class D shares as of October 31, 2024. A detailed calculation of the NAV per share is set forth below. The purchase price of our common stock for each share class equals the transaction price of such class, plus applicable upfront selling commissions. Repurchases will be made at a price per Share equal to the repurchase price in effect on the repurchase date, except that Shares that have not been outstanding for at least one year will generally be repurchased at 95% of the repurchase price. The one-year holding period is measured as of the subscription closing date immediately following the prospective repurchase date.
- 2
October 31, 2024 NAV per Share
We calculate NAV per share in accordance with valuation guidelines that have been approved by our board of directors (the “Board”). Our NAV per share, which is updated as of the last calendar day of each month, is made available to our current stockholders on our website at www.invesco.com/INCREF and is made available on our toll-free, automated telephone line at 833-834-4924.
Please refer to “Net Asset Value Calculation and Valuation Guidelines” in our Private Placement Memorandum for additional information on how our NAV is determined.
Transactions or events have occurred since October 31, 2024 that could have a material impact on our NAV per share, upon which our transaction and repurchase price is based. We have included a breakdown of the components of total NAV and NAV per share for October 31, 2024.
Our total NAV presented in the following tables includes the aggregate NAV of our outstanding shares of common stock. The following table provides a breakdown of the major components of our total NAV as of October 31, 2024:
$ in thousands |
October 31, 2024 |
Commercial real estate loan investments |
$2,191,965 |
Cash and cash equivalents |
9,304 |
Restricted cash |
19,775 |
| Derivative assets | 1,495 |
Other assets |
15,359 |
Secured financing facilities |
(1,726,111) |
| Revolving credit facility | - |
Due to affiliate for reimbursement of expenses |
(2,117) |
Management fee and performance fee payable |
(2,119) |
Common stock dividends payable |
(2,864) |
Preferred stock dividend payable |
(10) |
Subscriptions received in advance |
(19,745) |
Other liabilities |
(15,486) |
Preferred stock liquidation preference |
(228) |
Net asset value |
$469,218 |
The following table provides a breakdown of our total NAV and NAV per share by class as October 31, 2024. We did not issue any Class D-1 shares as of October 31, 2024.
| $ in thousands, except per share data | Class S |
Class S-1 |
Class D |
Class I |
Class E |
Class F | Total |
Net asset value |
$16,523 |
$134,499 |
$16,372 |
$74,663 |
$19,556 |
$207,605 | $469,218 |
Number of outstanding common shares |
658,550 |
5,338,428 |
652,947 |
2,967,627 |
770,012 |
8,116,284 | 18,503,848 |
NAV Per Share |
$25.0898 |
$25.1945 |
$25.0737 |
$25.1591 |
$25.3982 |
$25.5788 |
|
Valuation of Commercial Real Estate Loan Investments
The following table summarizes the significant unobservable inputs used in the fair value measurement of our commercial real estate loan investments:
Valuation Technique |
Unobservable Input |
Weighted Average Rate |
Range |
Weighted Average Life(1) |
Discounted cash flow |
Discount rate |
7.59% |
6.40% - 12.57% |
0.67 years |
(1) Based on expected cash flows and potential prepayments.
The discount rate is subject to change based on changes in economic and market conditions both current and anticipated, in addition to changes in use or timing of exit, if applicable. These rates are also based on the location, type and nature of each underlying property and related industry publications. Changes in discount rates result in increases or decreases in the fair values of the Company's investments. The discount rate encompasses, among other things, uncertainties in the valuation models with respect to the amount and timing of cash flows. It is not possible for the Company to predict the effect of future economic or market conditions based on our estimated fair values.
Valuation of Secured Financing Agreements
The following table summarizes the significant unobservable inputs used in the fair value measurement of our secured financing agreements:
Valuation Technique |
Unobservable Input |
Weighted Average Rate |
Range |
Weighted Average Life(1) |
Discounted cash flow |
Discount rate |
6.64% |
5.38% - 7.17% |
0.67 years |
(1) Based on expected cash flows and potential prepayments.
The discount rate above is subject to change based on changes in economic and market conditions, in addition to changes in the underlying economics of the pledged commercial real estate loan, such as changes in the loan-to-value ratio, credit profile and debt service. These rates are also based on the location, type and nature of each pledged property underlying the commercial real estate loan and related industry publications. Changes in discount rates result in increases or decreases in the fair values of these investments. The discount rate encompasses, among other things, uncertainties in the valuation models with respect to the amount and timing of cash flows. It is not possible for us to predict the effect of future economic or market conditions based on our estimated fair values.
Valuation of Revolving Credit Facility
Given the uncertainty of future cash flows, including our ability to prepay without penalty, we determined the fair value of our revolving credit facility to approximate par.