IREX V Diversified Portfolio DST

Overview

IREX V Diversified Portfolio DST is a $97.6 million all-cash, zero-debt Delaware Statutory Trust sponsored by Invesco Real Estate (a unit of Invesco Ltd.) and tied to Invesco Real Estate Income Trust (INREIT). The trust owns two stabilized, income-producing properties: The Elizabeth on Seventh, a mixed-use office and retail building in Charlotte, North Carolina (95.3% leased across 19 tenants), and Gateway One, an industrial facility in West Columbia, South Carolina. With no debt encumbering the properties, the trust projects a 4.50% first-year distribution rising to 5.15% by year 6 (4.82% average), a $250,000 minimum, and a Section 721 exchange option into INREIT.

Highlights

All-cash, zero-debt diversified DST - no refinancing or loan-maturity risk.

Two stabilized assets: a 95%-leased Charlotte office/retail building and a West Columbia, SC industrial facility.

4.50% first-year distribution rising to 5.15% (4.82% average).

Sponsored by Invesco Real Estate; Section 721 exchange option into Invesco Real Estate Income Trust (INREIT).

$250,000 minimum; institutional INREIT management.

Analysis

Insights

A conservative, debt-free diversified DST emphasizing capital preservation and a clean INREIT 721 exit. Office/retail exposure is the main differentiator to weigh against the all-cash safety.

Advantages

Debt-free structure removes leverage and refinancing risk; institutional Invesco/INREIT sponsorship and 721 optionality; diversification across property types and two Carolinas markets; stabilized, leased assets.

Concerns

Office/retail exposure carries tenant-rollover and sector risk; modest early yield; $250,000 minimum; all-cash structure means no positive leverage; INREIT-affiliated master tenant.

Projected Distributions

Average Yield4.82%

Est. Tax-Adjusted Yield¹11.34%

Cap Rate Equivalent7.09%

Y14.50%

Y24.50%

Y34.50%

Y44.49%

Y54.49%

Y65.15%

Y75.15%

Y85.15%

Y95.15%

Y105.15%

Projected, not guaranteed. Distribution rates are the sponsor’s projections, are not a promise of performance, and can be reduced or suspended. ¹ Estimated Tax-Adjusted Yield reflects the projected impact of depreciation and amortization deductions at an assumed combined federal and state tax rate; individual tax outcomes vary — consult your CPA regarding your specific situation. Cap Rate Equivalent is a Baker 1031 Investments calculation intended to allow comparison with direct property ownership; it is not a sponsor-reported figure and does not represent a rate of return. See the private placement memorandum for the assumptions behind these figures.

Financing

LenderNone (all-cash)

Interest RateN/A

Loan TermN/A

I/O PeriodN/A

AmortizationN/A

Y1 DSCRN/A

Benchmarks

Avg. Income

This deal4.82%

Market4.76%

Meets Average

Growth

This deal14.44%

Market7.22%

Above Average

Peak

This deal5.15%

Market4.93%