Invesco Real Estate Income Trust Inc.

09/16/2025 | Press release | Distributed by Public on 09/16/2025 15:27

Material Event (Form 8-K)

Item 8.01 Other Events.
Invesco Real Estate Income Trust Inc. (referred to herein as the "Company," "we," "our," or "us") is filing this Current Report on Form 8-K in order to provide an update regarding our net asset value ("NAV") and our assets and activities.
October 1, 2025 Transaction Price
The transaction price for each share class is equal to such share class's NAV per share as of August 31, 2025. A detailed calculation of the NAV per share is set forth below.
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.inreit.com and is made available on our toll-free, automated telephone line at 833-834-4924. The Adviser is ultimately responsible for determining our NAV. Our properties have been appraised and our commercial mortgage loans and debt have been valued in accordance with our valuation guidelines and such appraisals and valuations were prepared or reviewed by our independent valuation advisors. We have included a breakdown of the components of total NAV and NAV per share for August 31, 2025.
Our total NAV presented in the following tables includes the aggregate NAV of our Class T, Class S, Class D, Class I, Class E, Class N, Class S-PR and Class K-PR shares, as well as partnership interests of Invesco REIT Operating Partnership L.P. held by Invesco REIT Special Limited Partner L.L.C. The following table provides a breakdown of the major components of our total NAV as of August 31, 2025:
$ in thousands, except share/unit data
Components of NAV August 31, 2025
Investments in real estate $ 872,632
Investments in unconsolidated entities 148,046
Investments in real estate-related securities 43,925
Investment in commercial loan 12,205
Investment in affiliated fund 13,117
Cash and cash equivalents 35,448
Restricted cash 2,933
Other assets 12,916
Mortgage notes, revolving credit facility and financing obligation, net (287,439)
Subscriptions received in advance (1,470)
Other liabilities (25,554)
Accrued performance participation allocation (54)
Management fee payable (508)
Accrued stockholder servicing fees (18)
Non-controlling interests in joint-ventures (205,685)
Net asset value $ 620,494
Number of outstanding shares/units 22,821,567
The following table provides a breakdown of our total NAV and NAV per share/unit by class as of August 31, 2025:
in thousands, except share/unit data
NAV Per Share/Unit Class T Shares Class S Shares Class D Shares Class I Shares Class E Shares Class N Shares Class S-PR Shares Class K-PR Shares Total
Net asset value $ 7,908 $ 12,569 $ 13,532 $ 104,111 $ 35,353 $ 411,378 $ 23,762 $ 11,881 $ 620,494
Number of outstanding shares/units 303,517 481,320 519,068 3,971,743 1,263,352 14,964,225 878,895 439,447 22,821,567
NAV Per Share/Unit as of August 31, 2025
$ 26.0532 $ 26.1133 $ 26.0702 $ 26.2129 $ 27.9836 $ 27.4908 $ 27.0364 $ 27.0364
We include no discounts to our NAV for the illiquid nature of our shares, including the limitations on our stockholders' ability to sell shares under our share repurchase plan and our ability to suspend our share repurchase plan at any time. Our NAV generally does not consider exit costs (e.g., selling costs and commissions and debt prepayment penalties related to the sale of a property) that would likely be incurred if our assets and liabilities were liquidated or sold. While we may use market pricing concepts to value individual components of our NAV, our NAV per share is not derived from the market pricing information of open-end real estate funds listed on stock exchanges.
Our NAV is not a representation, warranty or guarantee that (1) a stockholder would be able to realize the NAV per shares for the shares a stockholder owns if the stockholder attempts to sell its shares; (2) a stockholder would ultimately realize distributions per share equal to the NAV per share upon liquidation of our assets and settlement of our liabilities or a sale of our company; (3) shares of our common stock would trade at their NAV per share on a national securities exchange; (4) a third party would offer the NAV per share for each class of shares in an arm's-length transaction to purchase all or substantially all of the shares; or (5) the NAV per share would equate to a market price of an open-ended real estate fund.
Set forth below are the weighted averages of the key assumptions in the discounted cash flow methodology used in the August 31, 2025 valuations, based on property types.
Property Type Discount Rate Exit Capitalization Rate
Healthcare 7.3% 5.8%
Office 9.0% 7.3%
Industrial 8.1% 5.9%
Self-Storage 7.6% 5.8%
Multifamily 7.5% 5.5%
Student Housing 7.8% 5.8%
Retail 8.4% 7.3%
These assumptions are determined by our independent valuation advisor and reviewed by the Adviser. A change in these 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 investment values:
Investment Values
Input Hypothetical Change Healthcare Office Industrial Self-Storage Multifamily Student Housing Retail
Discount Rate (weighted average) 0.25% decrease 1.9% 1.8% 2.0% 1.9% 1.9% 1.9% 1.8%
Discount Rate (weighted average) 0.25% increase (1.9)% (1.7)% (2.0)% (1.8)% (1.9)% (1.8)% (1.8)%
Exit Capitalization Rate (weighted average) 0.25% decrease 2.8% 2.1% 2.9% 2.7% 2.9% 2.7% 1.9%
Exit Capitalization Rate (weighted average) 0.25% increase (2.6)% (1.9)% (2.7)% (2.5)% (2.7)% (2.5)% (1.8)%
Update on Our Assets and Activities
As of August 31, 2025, our direct real estate investments include 61 real estate properties totaling approximately 9.3 million square feet located in 30 markets throughout the U.S., which were 93.1% leased. As of August 31, 2025, our leverage ratio was 23%.
On August 27, 2025, we acquired Fleetwood Apartments, a 96% occupied, 198 unit, multifamily asset in Las Vegas, Nevada, for $41 million. On September 16, 2025, we acquired the Arizona MHC Portfolio, a 195 site manufactured housing community portfolio with three assets located in the Tucson and Phoenix Metropolitan Statistical Areas, for $16 million. These investments are representative of our focus on acquiring residential assets in markets with growing populations and falling levels of new supply.
Quarter-to-date through August 31, 2025, we raised gross proceeds of $37.1 million, in our registered and private offerings, including sales through our DST Program and reinvestments under our distribution reinvestment plan. The aggregate dollar amount of common stock and OP Unit repurchases requested for July and August was $6.4 million. We fulfilled all repurchase requests that were made.
Forward-Looking Statements
This Current Report on Form 8-K includes certain statements that constitute "forward-looking statements" within the meaning of, and intended to be covered by the safe harbor provisions contained in, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may include statements about possible or assumed future results of our business, investment strategies, financial condition, liquidity, results of operations, distributions, repurchases, plans and objectives. When we use the words "believe," "expect," "anticipate," "estimate," "plan," "intend," "project," "forecast" or similar expressions and future or conditional verbs such as "will," "may," "could," "should," and "would," and any other statement that necessarily depends on future events, we intend to identify forward-looking statements.
Invesco Real Estate Income Trust Inc. published this content on September 16, 2025, and is solely responsible for the information contained herein. Distributed via SEC EDGAR on September 16, 2025 at 21:27 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]