Several years old now, the eREIT offering circular indicates the company has sold approximately $73 million in shares in the security. Fundrise seeks to raise an additional $26+ million to take the investment fund to $100 million. At the end of 2017, approximately 83% of raised capital had been invested in real estate.
This updated filing indicates that shares are now being sold at $10.71 each – representing a NAV at the end of March 2018. A previous offering circular in October of 2017 had a price of $10.45 per share.
Fundrise allows investors to redeem shares if they qualify under their guidelines. Fundrise indicates that as of the end of last December 187,000 common shares have been submitted for redemption and 100% of these redemption requests have been honored.
Through May 1, 2018, Fundrise has declared 14 distributions since inception of the equity eREIT with an average annualized yield of 7.02%. The most recent distributions have trended towards 6% but Fundrise states that based on the current performance of its assets, the eREIT‘s conservative projected return going forward includes an approximately 8% annualized dividend and a 1.9x to 2.3x equity multiple over the anticipated term of the eREIT.
Fundrise’s investment approach remains consistent as they believe the near and intermediate-term market for investment in select commercial real estate properties is compelling from a risk-return perspective. Fundrise maintains a strategy targeting equity investments with a potential value creation but below the radar of institutional-sized investors.