IPC Alternative Real Estate Income Trust Inc.
09/15/2025 | Press release | Distributed by Public on 09/15/2025 09:52
Supplemental Prospectus (Form 424B3)
Filed Pursuant to Rule 424(b)(3)
Registration No. 333-272750
IPC ALTERNATIVE REAL ESTATE INCOME TRUST, INC.
SUPPLEMENT NO. 7 DATED SEPTEMBER 15, 2025
TO THE PROSPECTUS DATED APRIL 4, 2025
This prospectus supplement ("Supplement") is part of and should be read in conjunction with the prospectus of IPC Alternative Real Estate Income Trust, Inc., dated April 4, 2025 (as supplemented to date, the "Prospectus"). Unless otherwise defined herein, capitalized terms used in this Supplement shall have the same meanings as in the Prospectus. References herein to the "Company," "we," "us," or "our" refer to IPC Alternative Real Estate Income Trust, Inc. unless the context specifically requires otherwise.
The purposes of this Supplement are as follows:
•
to disclose the transaction price for each class of our common stock as of October 1, 2025;
•
to disclose the calculation of our August 31, 2025 NAV per share for all share classes; and
•
to provide an update on the status of our Public Offering.
October 1, 2025 Transaction Price
The transaction price for each share class of our common stock for subscriptions accepted as of October 1, 2025 (and repurchases as of September 30, 2025) is as follows:
|
Transaction |
||||
|
Class T |
$ |
23.3219 |
||
|
Class S |
$ |
23.2592 |
||
|
Class D |
$ |
23.2822 |
||
|
Class I |
$ |
23.2592 |
||
|
Class X-1 |
$ |
23.2592 |
||
|
Class X-2 |
$ |
23.2592 |
||
As of the date of this Supplement, we had not sold any Class S shares, Class X-1 shares or Class X-2 shares. Until we sell shares of Class S, Class X-1 and Class X-2 common stock, the transaction price for these classes is based on NAV per share of our Class I shares as of August 31, 2025. We will separately compute the NAV per share for each one of these classes once we have shares of such class outstanding. Class X-1 and Class X-2 shares are not being sold as part of our Public Offering. 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 and dealer manager fees. The repurchase price for each share class equals the transaction price of such class.
August 31, 2025 NAV per Share
We calculate NAV per share in accordance with the valuation guidelines that have been approved by our board of directors. Our NAV per share, which is updated as of the last calendar day of each month, is posted on our website at www.ipcaltreit.com and is made available on our toll-free, automated telephone line at 866-MY-Inland (866-694-6526). Please refer to "Net Asset Value Calculation and Valuation Guidelines" in the Prospectus for a discussion of how our NAV is determined. The Advisor is ultimately responsible for determining our NAV. Transactions or events have occurred since August 31, 2025 that could have a material impact on our NAV per share, upon which our transaction price is based. We have included a breakdown of the components of total NAV and NAV per share for August 31, 2025 along with the immediately preceding month.
Our total NAV presented in the following tables shows the Company and the Operating Partnership on a combined basis and includes the NAV of the Company's common stockholders, as well as partnership interests of the Operating Partnership held by parties other than us.
1
The following table provides a breakdown of the major components of our NAV as of August 31, 2025 (dollars and shares/units in thousands):
|
Components of NAV |
As of |
|||
|
Investments in real estate |
$ |
412,590 |
||
|
Cash and cash equivalents |
7,977 |
|||
|
Restricted cash |
380 |
|||
|
Other assets |
6,744 |
|||
|
Debt |
(273,176 |
) |
||
|
Other liabilities(1) |
(15,375 |
) |
||
|
Net asset value |
$ |
139,140 |
||
|
Total shares/units outstanding |
5,945 |
|||
(1)
Includes accrued distribution fees. Distribution fees only apply to Class T shares and units, Class S shares and units and Class D shares and units. For purposes of calculating NAV, we recognize the distribution fee as a reduction of NAV on a monthly basis as such fee is paid. Under GAAP, we accrue the full cost of the distribution fee as an offering cost at the time we sell Class T shares and units, Class S shares and units, and Class D shares and units. As of August 31, 2025, we had accrued under GAAP $268 of distribution fees payable to Inland Securities Corporation (the "Dealer Manager") related to the Class T shares and units and Class D shares and units. As of August 31, 2025, we had not sold or issued any Class S shares or units, therefore, we had not accrued any distribution fees payable to the Dealer Manager related to such shares or units. The Dealer Manager does not retain any of these fees, all of which are retained by, or reallowed (paid) to, participating broker-dealers and servicing broker-dealers for ongoing stockholder services performed by such broker-dealers.
The following table sets forth our NAV and NAV per share/unit by class as of August 31, 2025 (dollars and shares/units in thousands except per share/unit data):
|
NAV Per Share/Unit |
Class T |
Class D |
Class I |
Class A Units |
Total |
|||||||||||||||
|
Net asset value |
$ |
3,409 |
$ |
555 |
$ |
8,502 |
$ |
126,674 |
$ |
139,140 |
||||||||||
|
Number of outstanding shares/units |
146 |
24 |
365 |
5,410 |
5,945 |
|||||||||||||||
|
NAV per share/unit as of August 31, 2025 |
$ |
23.3219 |
$ |
23.2822 |
$ |
23.2592 |
$ |
23.4165 |
||||||||||||
Set forth below are the weighted averages of the key assumptions used by our independent valuation advisor in the discounted cash flow analysis used for the August 31, 2025 valuations, based on property type:
|
Property Type |
Discount Rate |
Exit Capitalization Rate |
||||||
|
Healthcare |
7.51 |
% |
6.31 |
% |
||||
|
Self-Storage |
8.17 |
% |
6.42 |
% |
||||
|
Education |
8.50 |
% |
6.75 |
% |
||||
A change in these key assumptions would impact the calculation of the value of our property investments. For example, assuming all other factors remain unchanged, the changes listed below would result in the following effects on our property investment values:
|
Property Type |
Hypothetical Change |
Healthcare |
Self-Storage |
Education |
||||||||||
|
Discount rate (weighted average) |
0.25% decrease |
1.81 |
% |
1.93 |
% |
1.79 |
% |
|||||||
|
0.25% increase |
(1.82 |
)% |
(1.90 |
)% |
(1.79 |
)% |
||||||||
|
Exit capitalization rate (weighted average) |
0.25% decrease |
2.28 |
% |
2.18 |
% |
2.24 |
% |
|||||||
|
0.25% increase |
(2.14 |
)% |
(2.05 |
)% |
(1.79 |
)% |
||||||||
Our total NAV presented in the following tables shows the Company and the Operating Partnership on a combined basis and includes the NAV of the Company's common stockholders, as well as partnership interests of the Operating Partnership held by parties other than us.
2
The following table provides a breakdown of the major components of our NAV as of July 31, 2025 (dollars and shares/units in thousands):
|
Components of NAV |
As of |
|||
|
Investments in real estate |
$ |
412,150 |
||
|
Cash and cash equivalents |
7,415 |
|||
|
Restricted cash |
401 |
|||
|
Other assets |
7,735 |
|||
|
Debt |
(273,164 |
) |
||
|
Other liabilities(1) |
(14,717 |
) |
||
|
Net asset value |
$ |
139,820 |
||
|
Total shares/units outstanding |
5,937 |
|||
(1)
Includes accrued distribution fees. Distribution fees only apply to Class T shares and units, Class S shares and units and Class D shares and units. For purposes of calculating NAV, we recognize the distribution fee as a reduction of NAV on a monthly basis as such fee is paid. Under GAAP, we accrue the full cost of the distribution fee as an offering cost at the time we sell Class T shares and units, Class S shares and units, and Class D shares and units. As of July 31, 2025, we had accrued under GAAP $256 of distribution fees payable to the Dealer Manager related to the Class T shares and units and Class D shares and units. As of July 31, 2025, we had not sold or issued any Class S shares or units, therefore, we had not accrued any distribution fees payable to the Dealer Manager related to such shares or units. The Dealer Manager does not retain any of these fees, all of which are retained by, or reallowed (paid) to, participating broker-dealers and servicing broker-dealers for ongoing stockholder services performed by such broker-dealers.
The following table sets forth our NAV and NAV per share/unit by class as of July 31, 2025 (dollars and shares/units in thousands except per share/unit data):
|
NAV Per Share/Unit |
Class T |
Class D |
Class I |
Class A Units |
Total |
|||||||||||||||
|
Net asset value |
$ |
3,292 |
$ |
507 |
$ |
8,296 |
$ |
127,725 |
$ |
139,820 |
||||||||||
|
Number of outstanding shares/units |
140 |
22 |
354 |
5,421 |
5,937 |
|||||||||||||||
|
NAV per share/unit as of July 31, 2025 |
$ |
23.4882 |
$ |
23.4410 |
$ |
23.4187 |
$ |
23.5612 |
||||||||||||
Status of our Public Offering
We are currently offering on a continuous basis up to $1.25 billion in shares of common stock, consisting of up to $1.0 billion in shares in our primary offering and up to $250 million in shares pursuant to our distribution reinvestment plan. As of the date of this Supplement, we had issued and sold in the Public Offering (i) 446,484 shares of our common stock (consisting of 278,240 Class I shares, 144,643 Class T shares and 23,601 Class D shares; no Class S shares were issued or sold as of such date) in the primary offering for total proceeds of $10.9 million and (ii) 3,761 shares of our common stock (consisting of 2,461 Class I shares, 989 Class T shares and 311 Class D shares) pursuant to our distribution reinvestment plan for a total value of $0.09 million. We intend to continue selling shares in the Public Offering on a monthly basis.
3
IPC Alternative Real Estate Income Trust Inc. published this content on September 15, 2025, and is solely responsible for the information contained herein. Distributed via SEC EDGAR on September 15, 2025 at 15:52 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]