Fundrise Income eREIT

[scotty0318]

Anyone else notice that the current dividend rate has dropped from 10% to 6%?

[dr.everett]

Hadn't seen it yet- but at the same time also not surprised either. The other funds are/were in the 7-9% range so it makes sense that it would have changed. 6% is still fine for me as it is a set it/forget it scenario for the most part. Good to know though as I have some investments to make there- I'll look at the other funds again and see if I want to invest there vs. the Income one.

[jdaun]

Thanks for pointing this out scotty.
I noticed that my earnings-since-last-login took a nosedive recently, but hadn't taken the time to investigate.
I just sent an email to Fundrise requesting an explanation.

[TravelingPennies]

Below is the response I received from Fundrise:

Thanks for your question. In short, no. The property values and cash flow have increased on the whole, and we expect this trend to continue in the near future. As all REITs must distribute a minimum of 90% of their taxable income in a given year in order to qualify as REITs, we anticipate continuing to match earnings with distributions for the remainder of the year. The temporary slight reduction in dividends this month is due predominantly to the fact that it is a new calendar year following a year of distributing over 90%+ of our taxable income.

While our aim is to produce consistent higher than average dividends over the long-term, we anticipate (and investors should expect) that there will be periods when the dividends may either increase or decrease for a given month or several months as a result of factors not related to a change in the actual income produced from the assets we own but as a result of 1) the nature of how we continuously raise capital and acquire new assets, as well as 2) certain factors related to meeting REIT tax requirements, particularly around the beginning and end of the year. In addition, in certain circumstances where the dividend may be lower for a few months, it is possible that the reduction in dividend may be reflected at a later point as an increase in the NAV.

As always we stress the long-term nature of investing with Fundrise and expect that over the projected lifetime of the investment, these periods of dividend fluctuation will have a relatively small impact on the actual realized returns.

[Reginald]

Here are the numbers from my FundRise account -
You can find them at: https://fundrise.com/account/performance" class="bbc_link" target="_blank">https://fundrise.com/account/performance


Because this is cut and paste you have to read it like this:

Columns:
-------------
Name
Q1
Q2
Q3
Partial
Q4
YTD


Data by REIT
-----------------
Reporting NAV
1.7%
1.7%
1.2%
1.0%
5.8%
Income eREIT
Operating
2.4%
1.9%
1.7%
1.4%
7.6%
Growth eREIT
Operating
2.5%
2.1%
1.1%
2.3%
8.3%
East Coast eREIT
Stabilizing
3.2%
2.1%
1.6%
1.4%
8.5%
Heartland eREIT
Stabilizing
1.3%
2.0%
1.5%
0.9%
5.8%
West Coast eREIT
Stabilizing
1.8%
1.7%
1.8%
0.8%
6.3%
Los Angeles eFund
Ramping up
0.0%
0.9%
0.0%
0.0%
0.9%
National eFund
Ramping up
0.0%
1.2%
0.0%
0.0%
1.2%
Income eREIT II
Ramping up
1.7%
2.6%
1.7%
1.2%
7.3%
Growth eREIT II
Ramping up
0.0%
2.5%
0.2%
0.5%
3.4%
Weighted average
1.7%
1.7%
1.2%
1.0%
5.8%