While Fundrise continues to pound the table on its newish early-stage investment fund with non-stop commercials on CNBC, the company is quietly generating decent returns on the legacy side of the business of real estate investments.
According to a recent report, the Fundrise Flagship Fund generated 2.46% in Q1 2024. The Income Fund is generating an annualized rate of 7.91%, benefiting from the higher rate environment. These funds utilize Reg A and thus are open to all investors.
Since its inception, the Flagship Fund has generated an 11.85% return. However, in the past year, returns have not been as good, at a net negative 11.79%, but things appear to be turning. Since inception the Income Fund is said to have generated a net13% return.
Fundrise states that:
“As a result of the sustained strong operating performance of the portfolio, we’ve been able to put our capital reserves to work as an active buyer through this period where prices have been arguably more attractive than at any other point in the last decade.”
Fundrise expects that interest rates will decline “over the next several years,” as many others do. The investment platform anticipates that lower rates will potentially drive “outsized returns.”
