• News
  • Blog
  • Contact
  • Disclosures
Broadstone Real Estate

Menu

Skip to content
  • Our Story
    • Our People
    • Contact
  • Investment opportunity
    • Investment Strategy
    • Fund Holdings
    • Performance
    • Portfolio Management & Advisers
    • Materials & Documents
  • News & Views
    • Blog
    • News
  • Contact
  • Disclosures
News

Broadstone Real Estate Access Fund Announces Initial Shareholder Distribution

Posted on January 4, 2019 by Jenna Nichols

ROCHESTER, N.Y. – Broadstone Real Estate Access Fund (“BDREX”), a continuously offered, closed-end interval fund, registered under the Investment Company Act of 1940, announced today it paid shareholders an initial quarterly dividend. Continue reading →

Post navigation

Newer posts →

Filter

All | News | Blog
  • News
  • Blog
  • Contact
  • Disclosures
© 2020 BDREX. All Rights Reserved.

Some of the Risks of Investing in BDREX:

AN INVESTOR SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE FUND CAREFULLY BEFORE INVESTING. TO OBTAIN A PROSPECTUS CONTAINING THIS AND OTHER INFORMATION, PLEASE CONTACT YOUR FINANCIAL ADVISOR ORDOWNLOAD THE FILE FROM WWW.BDREX.COM. THE PROSPECTUS SHOULD BE READ CAREFULLY BEFORE INVESTING.

BDREX investments in direct real estate will be comprised of commercial real estate investments, including direct and indirect investments in commercial real estate properties.  Private real estate investments will include investments in private real estate investment funds, including private equity and unregistered investment funds that principally invest, directly or indirectly, in real estate and real estate-related investments. Public real estate securities include commercial real estate-related securities, including those of publicly traded real estate investment trusts, commercial mortgage-backed securities, real estate operating companies, and exchange-traded funds. By utilizing an endowment management style, the Fund seeks to incorporate more types of assets in its portfolio than traditional asset classes such as stocks and bonds, including real estate and private investment funds. Private real estate investment funds, direct real estate investments, and REITs may pursue investment strategies that compete with each other or do not align with those of the Fund.

BDREX is ‘non-diversified” under the Investment Company Act of 1940. Changes in the market value of a single holding may cause greater fluctuation in the Fund’s net asset value than in a “diversified” fund. The Fund is not intended as a complete investment program but instead as a way to help investors diversify into real estate. Diversification does not ensure a profit or guarantee against a loss.

Investing in BDREX involves risks, including loss of principal and the other risks set forth in the “Risk Factors” section of the prospectus. Real estate risk factors include, but are not limited to, the fact that direct ownership of real estate is subject to fluctuations in the value of the underlying properties, the impact of economic conditions on real estate values, the strength of specific industries renting properties and defaults by borrowers or tenants. Real estate is a cyclical business, highly sensitive to general and local economic conditions and developments, and characterized by intense competition and periodic overbuilding. Changing interest rates and credit quality requirements may affect the cash flow of real estate companies and their ability to borrow or lend money or to meet capital needs.

Because BDREX’s direct real estate investments will be relatively illiquid, the Fund may not be able to vary its portfolio in response to changes in economic and other conditions, which may result in losses to the Fund. The bankruptcy, insolvency or financial deterioration of any of the tenants of the Fund’s direct real estate investments could significantly delay the ability to collect unpaid rents or require the Fund to find new tenants.

With respect to BDREX’s investments in private real estate investment funds, the Fund may not have the sole decision-making authority over such funds and may be unable to take actions to protect its interests in these investments. The Fund may be subject to additional risks if it fails to meet a capital call from a private real estate investment fund and the underlying fund may pursue investment strategies that compete with each other or do not align with those of the Fund. Valuations provided by the institutional asset managers of private real estate investment funds may not be accurate or reliable.

BDREX’s investments in the securities of publicly traded REITs will be subject to the risks affecting these REITs directly. There can be no assurance that an entity in which the Fund invests with the expectation that it will be taxed as a REIT will, in fact, qualify as a REIT. An entity that fails to qualify as a REIT would be subject to a corporate level tax, would not be entitled to a deduction for dividends paid to its shareholders, and would not pass through to its shareholders the character of income earned by the entity. Complying with REIT requirements may force the Fund to liquidate or forego otherwise attractive investments and REIT distribution requirements could adversely affect the Fund’s ability to execute its investment strategy. The Fund may purchase call and put options on specific securities or commodities. The Fund may also write covered or uncovered call and put options for both hedging purposes and to pursue the Fund’s investment objective. In a covered call or put option, the Fund owns a long or short (e.g., a purchased put) position, respectively, in the underlying asset. The sale of such an option exposes the Fund to a potential loss of opportunity to realize appreciation in the market price of the underlying asset during the term of the option. Uncovered call and put options also have speculative characteristics and the potential loss is substantial and, with respect to uncovered call options, could be unlimited.

The Fund’s shares will not be listed on an exchange and it is not anticipated that a secondary market will develop. An investment is not suitable for investors that require liquidity.

An interval fund, such as BDREX, is a continuously offered, closed-end investment company that periodically offers to repurchase its shares from shareholders. The number of shares that BDREX will offer to repurchase will be determined by its Board of Trustees on a quarterly basis. Unless the Fund experiences substantial net capital appreciation and realized gains, the repurchase price for shares associated with the Fund’s periodic repurchase offers will be at a lower price than the price investors paid for shares, and the timing of the Fund’s repurchase offers may be disadvantageous to shareholders. Redemptions within 90 days of purchase may be subject to a fee. There is no guarantee that an investor will be able to sell all the shares that the investor desires to sell in any repurchase offer. See the prospectus for more details.

Net Asset Value (NAV) represents the underlying value of BDREX’s shares. The NAV of the Fund’s shares is the market value of the Fund’s assets and is the price at which shares can be purchased. The distribution rate is the amount, expressed as a percentage, a Fund investor would have received in distributions on an annualized basis divided by the Fund’s public offering price on December 30, 2020. The annualized distribution represents a single distribution from the Fund and does not represent the total returns of the Fund. Portions of the distributions that the Fund made included a return of the money that shareholders originally invested and represent a return of capital to shareholders for tax purposes, which will have the effect of increasing his or her gain (or reducing his or her loss) on a subsequent sale of shares. Distributions are not guaranteed.

The total return of the Fund is the actual rate of return and includes distribution income and appreciation of capital over a period of time. Correlation is a measure of the degree to which the value of different investment types move in the same direction; if they perform independently of one another, they are non-correlated. Volatility is the amount of price change a security experiences over a given period of time. Commonly, the higher the volatility, the riskier the security.

Broadstone Real Estate Access Fund is distributed by ALPS Distributors, Inc. (ALPS). ALPS is not affiliated with BDREX.