J.P. Morgan Real Estate Income Trust Is the Newest Perpetual-Life NTR
August 11, 2022 | James Sprow | Blue Vault
J.P. Morgan’s perpetual life REIT was declared effective by the SEC on July 22, 2022. The $5 billion offering includes shares of Class T, Class S, Class D and Class I common stock. Via a separate private offering the adviser (J.P. Morgan Investment Management Inc.) has agreed to purchase $25 million in Class E common stock.
J.P. Morgan Real Estate Income Trust (JPMREIT) seeks to provide individuals with access to income-producing, institutional quality real estate with a minimum investment of $2,500. The REIT’s investment guidelines include targeting at least 80% of its assets in properties and real estate debt and up to 20% of its assets in real estate-related securities, cash and/or cash equivalents. The offering price is generally equal to the prior month’s NAV per share for each share class, plus applicable upfront selling commissions and dealer manager fees. Transaction prices will be available on www.jpmreit.com and in prospectus supplements filed with the SEC.
Distributions will be paid monthly, subject to board approval. Distribution payments are not guaranteed. JPMREIT may pay distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and advances or the deferral of fees and expense reimbursements, and that JPMREIT has no limits on such amounts it may pay from such sources.
Monthly repurchases will be made at the transaction price, which is generally equal to the prior month’s NAV. Shares not held for at least one year will be repurchased at 98% of that month’s transaction price. 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).
The REIT will have a 1.00% per annum management fee, based upon NAV, payable monthly. The fee will be waived through 12/31/2022. A performance participation allocation of 12.5% of the annual total return, subject to a 5% annual hurdle amount and a high-water mark.
Source: SEC
