Understanding Your Quarterly Statements
Capital Account Statement Details
The purpose of the capital account statement is to detail a record of your transaction history during each quarter and report the value of your position in the fund at the end of the quarter. Here is a breakdown of each line item that may appear on your statement:
- Beginning Balance: This is the value of your account balance at the beginning of the quarter for which the statement is being provided.
- Capital Contribution: If this line items appears, this indicates an increase to your beginning account balance as a result of new capital contributed during the quarter. It includes capital contributed to your investment in the form of cash and/or in-kind contributions of properties/interests in other investments.
- Distributions: Distributions are declared by the fund quarterly, resulting in reductions to your account balance as of the last day of each quarter.
- If you elected to participate in the distribution reinvestment plan (“DRIP”), the reinvestment of current quarter distributions will appear as an addition to your account balance next quarter.
- If you elected to receive cash distributions, the current quarter distributions will match the amount you received via wire transfer within 45 days after the end of each quarter. We also send quarterly distribution notices that agree to this amount and indicate the type of distribution you received (i.e., cash vs. DRIP).
- Reinvested Distributions*: If you are on DRIP, your previous quarter’s distribution amount is reinvested on the first day of the current quarter and will appear in this line item.
- Income: This is your share of the net income (or loss) of the fund. The fund earns income from the cash flows generated by its properties, realized gains when properties are sold for more than they were acquired, and changes in unrealized gains and losses when the fair value of the fund’s properties are reassessed (at least annually). Income is allocated to your capital account balance based on your percentage ownership in the fund.
*Only applicable for investors that have elected to participate in DRIP.
OTHER COMMON FAQs
You will receive your cash distribution via wire transfer within 45 days of the last day of each quarter. For instance, the last day of Q4 2022 is 12/31/22; therefore, you will receive your cash distributions no later than 2/14/23.
What if I currently receive a cash distribution each quarter but would like to opt into DRIP to maximize my earning potential?
Reach out to firstname.lastname@example.org and let us know that you would like to change your distribution election to DRIP. We will send you a one-page document via DocuSign and require your signature for your DRIP election opt-in.
How does DRIP work and how can I see what money has been earned?
Whenyou elect to re-invest distributions, you do not receive distributions in cash. Rather, the amounts distributed by the fund are added back to your capital account balance at the beginning of the next quarter. This will increase your relative share of ownership in the fund, which then increases the amount of income and distributions allocated to your account in the future.
Why is there a difference between OpCo and CREIT rates of return?
Due to some additional entity costs and timing associated with CREIT, there is a slight drag on CREITs returns versus OpCo’s.
What if I want to refer someone as an investor?
We appreciate your referrals. Please send an introductory email or provide their information to email@example.com and we will reach out and set up a potential investor call.
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