Invesco Real Estate Income Trust Successfully Completes $85.7 Million DST Subscription

Invesco Real Estate Income Trust's Successful $85.7 Million DST Offering

Invesco Real Estate Income Trust Inc. (INREIT) has announced the successful completion of its Delaware Statutory Trust (DST) offering, which raised an impressive $85.7 million. This initiative, which has fully subscribed, reflects a notable interest from investors keen on diversifying their portfolios with institutional-quality real estate assets.

The offering revolves around the IREX II Self-Storage Portfolio, comprising eight self-storage facilities located across four states: Tennessee, Texas, North Carolina, and Oregon. Collectively, these properties amount to 3,894 rental units, providing a significant 463,495 net rentable square feet of space. This strategic asset acquisition emphasizes INREIT's commitment to investing in a diverse range of properties, with a total asset value exceeding $945 million as of May 31, 2025.

Kyle Connor, director of private markets and a leading expert in 1031 exchanges at Invesco Real Estate, commented on the successful subscription, stating, "The full subscription of IREX II highlights the increasing demand from investors seeking tax deferral exchanges into high-quality real estate. We are proud to offer our clients a pathway to maintaining their real estate exposure through IREX II while enabling them to take advantage of potential tax benefits and estate planning options."

Self-storage properties have shown resilience even during fluctuating market conditions, with minimal ongoing capital expenditures directly linked to them. Chase Bolding, president of INREIT and lead portfolio manager, remarked, "The completion of the IREX II offering is a testament to investors' confidence, especially those looking for tax-advantaged opportunities in the self-storage sector."

The Benefits of the IREX II Offering

One of the crucial aspects of the IREX II Self-Storage Portfolio DST is its facilitation of like-kind exchanges as stipulated under Internal Revenue Code Section 1031. This allows qualified investors to defer capital gains taxes while providing an avenue for diversification in their real estate holdings. It represents a significant investment opportunity, particularly for those keen on minimizing tax liabilities while expanding their real estate portfolios.

Investors drawn to the IREX II offering are not just opting for income-generating assets; they are aligning themselves with a high-quality institutional investment that stands to benefit from long-term appreciation and stability. As the real estate market continues to exhibit volatility, investments in self-storage facilities offer a level of security often sought after by discerning investors.

About Invesco Real Estate Income Trust Inc.

Invesco Real Estate Income Trust Inc. is an institutionally managed, public non-listed monthly NAV REIT. It showcases a diversified portfolio of high-quality income-producing properties across the United States. Their investment strategy is thematic, focusing on sectors where individuals, communities, and businesses interact, making it vital for resilience and growth.

Managed by Invesco Advisers, Inc., a branch of Invesco Ltd., INREIT aims to gradually expand its portfolio, potentially on a global scale, thus providing its investors with diverse opportunities.

Invesco Real Estate boasts a leading position globally in the real estate investment management sphere, managing an impressive $85 billion in assets as of December 31, 2024. With a workforce of 605 employees spread across 21 regional offices in the U.S., Europe, and Asia Pacific, Invesco has sustained over 40 years of consistent investment performance.

Conclusion

The successful completion of Invesco Real Estate Income Trust Inc.’s $85.7 million DST offering showcases the growing appetite for diversified, tax-advantaged real estate investments. Investors are increasingly recognizing the value of institutional-grade assets like the IREX II Self-Storage Portfolio, as they navigate their way through complex financial landscapes. As the market continues to evolve, INREIT’s commitment to delivering robust investment solutions will likely keep it at the forefront of real estate investment management.