INREIT

Offering terms

Invesco Real Estate Income Trust seeks to provide stable, current income, protect invested capital and generate growth in net assets value (NAV) for stockholders across a diversified portfolio.* INREIT is designed to drive value through disciplined investment selection and hands-on management.

Key Terms

Key commercial terms¹ Description
Structure Non-exchange-listed, perpetual life real estate investment trust (REIT)
Portfolio allocation² Targeting at least 80% of assets in properties, private real estate-related debt and real estate operating companies; and up to 20% of assets in real estate-related securities following the ramp-up period
Sponsor/Advisor Invesco Ltd./Invesco Advisers, Inc.
Maximum offering ³ $3 billion
Offering Price ⁴ Generally equal to INREIT's prior month’s NAV per share for its respective class as of the last calendar day of such month, plus applicable selling commissions and dealer manager fees
Subscriptions/NAV frequency
  • Monthly purchases as of the first calendar day of each month; subscription requests must be received at least five business days prior to the first calendar day of the month
  • NAV per share, which will generally be equal to INREIT's transaction price, will generally be available within 15 calendar days of month-end
  • Transaction price will be available on www.inreit.com, via our toll-free telephone number at 833-834-4924 and in prospectus supplements. If the transaction price is not made available on or before the eighth business day before the first calendar day of the month, or a previously disclosed transaction price for that month is changed, then INREIT will notify subscribing investors
Distributions There is no assurance INREIT will pay distributions in any particular amount, if at all. Distributions may be modified and are at the discretion of the board of directors. Distributions are not indicative of profitability, have been in excess of net income and may be funded from sources other than cash flow from operations, including without limitation, the sale of assets, borrowings, return of capital or offering proceeds. There are no limits on the amounts that may be paid from such sources.
Suitability standards ⁵ Purchaser must have either (1) a net worth of at least $250,000 or (2) a gross annual income of at least $70,000 and a net worth of at least $70,000. Certain states have additional suitability standards. See the Prospectus for more information.
Share repurchase plan ⁶
  • Monthly repurchases will be made at the transaction price, which is generally equal to INREIT's prior month’s NAV per share
  • Shares not held for at least one year will be repurchased at 95% of the transaction price of the relevant share class
  • Total repurchases are limited to 2% of aggregate NAV per month (measured using the aggregate NAV as of the end of the immediately preceding month) and 5% of aggregate NAV per calendar quarter (measured using the average aggregate NAV as of the end of the immediately preceding three months)
  • Repurchase requests must be received in good order by the second to last business day of the applicable month
  • We are not obligated to repurchase any shares and may choose to repurchase only some, or even none, of the shares that have been requested to be repurchased in any particular month at INREIT's discretion
  • The share repurchase plan is subject to other limitations, and our board may make exceptions to modify, suspend, or terminate the plan
Tax reporting Form 1099-DIV

Advisors Fees

Fees Description
Management fee 1% per annum of NAV, payable monthly (not payable with respect to Class E shares)
Performance participation allocation ⁷ 12.5% of the annual total return, subject to a 6% annual hurdle amount, high-water mark and catch-up (not payable with respect to Class E shares)

Share class-specific terms

Share class-specific fees Class T Class S Class D Class I Class E
Availability Through transactional/brokerage accounts

 Through fee-based (wrap) programs, registered investment advisors, and other institutional and fiduciary accounts Employees and other Invesco accounts
Minimum Initial Investment⁸ $2,500 $2,500 $2,500 $1,000,000

 $2,500
Subsequent Investment⁸ $500 $500 $500 $500 $500
Selling commissions (Upfront)⁹ Up to 3.0% Up to 3.5% Up to 1.5% None None
Dealer manager fee (Upfront)⁹ 0.50% None None None None
Stockholder servicing fees (per annum, payable monthly) (Ongoing)⁹ 0.65% financial advisor
0.20% dealer		 0.85%
 0.25% None None

Learn more about INREIT

Footnotes

  • Property images shown are current investment properties of INREIT, but do not represent its entire portfolio or a given property type. There is no assurance that the investment properties identified were or will be profitable. Cityscape images are for illustrative purposes and do not represent INREIT-owned properties.
  • 1

    Terms summarized herein are for informational purposes and qualified in their entirety by the more detailed information in the Prospectus. You should read the Prospectus carefully prior to making an investment.
  • 2

    INREIT does not expect to be able to achieve these allocations during the period prior to the time that it has raised substantial offering proceeds and acquired a broad portfolio of real estate investments, which is referred to as the “ramp-up period”
  • 3

    INREIT is offering up to $3,000,000,000 in shares of its common stock, consisting of up to $2,400,000,000 in shares in its primary offering and up to $600,000,000 in share pursuant to INREIT's distribution reinvestment plan. INREIT reserves the right to reallocate the shares of common stock between the primary offering and the distribution reinvestment plan. INREIT may register additional shares in the future.
  • 4

    INREIT may offer shares based on an offering price that it believes reflects the NAV per share more appropriately than the prior month’s NAV per share, including by updating a previously disclosed transaction price, in cases where INREIT believes there has been a material change (positive or negative) to its NAV per share since the end of the prior month.
  • 5

    For purposes of determining whether you satisfy the standards above, your net worth is calculated excluding the value of your home, home furnishings and automobiles. Select broker-dealers may impose greater suitability standards. Investors residing in Alabama, Idaho, or Puerto Rico must comply with additional suitability standards described in the Prospectus.
  • 6

    The share repurchase plan is subject to other limitations and INREIT's board may modify, suspend or terminate the plan. For additional information, see “Share Repurchases” in the Prospectus.
  • 7

    Performance participation allocation:

    The Special Limited Partner will hold a performance participation interest in INREIT’s Operating Partnership that entitles it to receive an allocation from the Operating Partnership equal to 12.5% of the Total Return, subject to a 6% Hurdle Amount and a High-Water Mark, with a Catch-Up (each term as defined below). Such allocation will be made annually and accrue monthly.
     “Total Return” for any period since the end of the prior calendar year shall equal the sum of: (1) all distributions accrued or paid (without duplication) on the Operating Partnership units outstanding at the end of such period since the beginning of the then-current calendar year, plus (2) the change in aggregate NAV of such units since the beginning of the year, before giving effect to (x) changes resulting solely from the proceeds of issuances of Operating Partnership units, (y) any allocation/accrual to the Performance Participation and (z) applicable stockholder servicing fee expenses (including any payments made to us for payment of such expenses). For the avoidance of doubt, the calculation of Total Return will (i) include any appreciation or depreciation in the NAV of units issued during the then-current calendar year but (ii) exclude the proceeds from the initial issuance of such units. Specifically, the Special Limited Partner will be allocated a performance participation in an amount equal to:

    + First, if the Total Return for the applicable period exceeds the sum of (1) the Hurdle Amount for that period and (2) the Loss Carryforward Amount (any such excess, “Excess Profits”), 100% of such Excess Profits until the total amount allocated to the Special Limited Partner equals 12.5% of the sum of (x) the Hurdle Amount for that period and (y) any amount allocated to the Special Limited Partner pursuant to this clause (this is commonly referred to as a “Catch-Up”); and

    + Second, to the extent there are remaining Excess Profits, 12.5% of such remaining Excess Profits.

    “Hurdle Amount” for any period during a calendar year means that amount that results in a 6% annualized internal rate of return on the NAV of the Operating Partnership units (other than Class N units and Class E units) outstanding at the beginning of the then-current calendar year and all Operating Partnership units (other than Class N units and Class E units) issued since the beginning of the then-current calendar year, taking into account the timing and amount of all distributions accrued or paid (without duplication) on all such units and all issuances of Operating Partnership units over the period and calculated in accordance with recognized industry practices. The ending NAV of the Operating Partnership units used in calculating the internal rate of return will be calculated before giving effect to any allocation/accrual to the Performance Participation and applicable stockholder servicing fee expenses, provided that the calculation of the Hurdle Amount for any period will exclude any Operating Partnership units repurchased during such period, which units will be subject to the Performance Participation upon repurchase as described below. Except as described below in regards to Loss Carryforward Amounts, any amount by which Total Return falls below the Hurdle Amount will not be carried forward to subsequent periods.

     “Loss Carryforward Amount” shall initially equal zero and shall cumulatively increase by the absolute value of any negative annual Total Return and decrease by any positive annual Total Return, provided that the Loss Carryforward Amount shall at no time be less than zero and provided further that the calculation of the Loss Carry forward Amount will exclude the Total Return related to any Operating Partnership units (other than Class N units and Class E units) repurchased during such year, which units will be subject to the Performance Participation upon repurchase as described below. The effect of the Loss Carryforward Amount is that the recoupment of past annual Total Return losses will offset the positive annual Total Return for purposes of the calculation of the Performance Participation. This is referred to as a “High-Water Mark.”
  • 8

    Select broker-dealers may offer INREIT at higher minimums. The minimum subsequent investment and does not apply to purchases made under INREIT's distribution reinvestment plan.
  • 9

    Fees may vary by broker-dealers, so long as the sum of the upfront selling commission and dealer management fees do not exceed 3.5% of the transaction price for Class T shares.
  • *

    Diversification does not guarantee a profit or eliminate the risk of loss. There is no guarantee that INREIT will provide diversification.