PERFORMANCE
Performance Summary
AS OF March 31, 2024
| 1-Month | 3-Month | YTD | 3-Yr | ITD* | |
|---|---|---|---|---|---|
| Class I | (1.20%) | (2.02%) | (2.02%) | 4.58% | 7.70% |
Class I Shares, Class D Shares and Class U Shares are each not subject to a sales load; however, investors may be required to pay brokerage commissions on purchases and sales of Class I Shares, Class D Shares and Class U Shares to their selling agents. “Class U (With Sales Load)” data assumes 3.0% brokerage commission at initial subscription.
Note: Past performance is historical and not a guarantee of future results.
* Performance since inception through date indicated. Class I inception date is July 2, 2020; Class U inception date is June 30, 2021; Class S inception date is September 9, 2022. ITD performance number is annualized if time period is longer than one year. On May 11, 2023, KREST’s outstanding Class D shares were converted to Class I and there were no outstanding Class D shares between May 12, 2023 and September 18, 2023. Class D re-issue inception date is September 19, 2023. Performance is not reported for partial months of activity.
| Class I | 5.97% |
|---|
| NAV Per Share | |
| Class I | $26.07 |
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | (0.18%) | (0.66%) | (1.20%) | – | – | – | – | – | – | – | – | – | (2.02%) |
| 2023 | 0.54% | (0.96%) | 2.27% | (1.05%) | (2.38%) | (0.96%) | (0.03%) | (0.10%) | 0.34% | (0.62%) | (1.53%) | (1.87%) | (6.25%) |
| 2022 | 1.58% | 3.02% | 3.87% | 3.08% | 0.38% | (0.77%) | (1.98%) | 0.93% | (0.01%) | 0.30% | (1.16%) | (1.03%) | 8.32% |
| 2021 | 0.95% | 0.75% | 7.81% | 0.55% | 1.97% | (1.22%) | 1.88% | 0.71% | 4.86% | 1.24% | 1.43% | 2.74% | 26.06% |
| 2020 | – | – | – | – | – | – | – | – | 2.48% | 1.01% | 0.77% | 0.92% | 5.28% |
Past performance is historical and not a guarantee of future results. The Fund employs leverage, which increases the volatility of investment returns and subjects the Fund to magnified losses if investments decline in value. There can be no guarantee that current trends will continue. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when repurchased, may be worth more or less than their original cost and current performance may be lower or higher than the performance data quoted.
| 1-Month | 3-Month | YTD | 3-Yr | ITD* | |
|---|---|---|---|---|---|
| Class S (No Sales Load) | (1.27%) | (2.23%) | (2.23%) | – | (7.35%) |
Class I Shares, Class D Shares and Class U Shares are each not subject to a sales load; however, investors may be required to pay brokerage commissions on purchases and sales of Class I Shares, Class D Shares and Class U Shares to their selling agents. “Class U (With Sales Load)” data assumes 3.0% brokerage commission at initial subscription.
Note: Past performance is historical and not a guarantee of future results.
* Performance since inception through date indicated. Class I inception date is July 2, 2020; Class U inception date is June 30, 2021; Class S inception date is September 9, 2022. ITD performance number is annualized if time period is longer than one year. On May 11, 2023, KREST’s outstanding Class D shares were converted to Class I and there were no outstanding Class D shares between May 12, 2023 and September 18, 2023. Class D re-issue inception date is September 19, 2023. Performance is not reported for partial months of activity.
| Class S | 5.11% |
|---|
| NAV Per Share | |
| Class S | $26.07 |
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | (0.25%) | (0.72%) | (1.27%) | – | – | – | – | – | – | – | – | – | (2.23%) |
| 2023 | 0.47% | (1.02%) | 2.20% | (1.12%) | (2.45%) | (1.03%) | (0.10%) | (0.17%) | 0.27% | (0.70%) | (1.60%) | (1.94%) | (7.04%) |
| 2022 | – | – | – | – | – | – | – | – | (0.20%) | 0.26% | (1.26%) | (1.10%) | (2.29%) |
Past performance is historical and not a guarantee of future results. The Fund employs leverage, which increases the volatility of investment returns and subjects the Fund to magnified losses if investments decline in value. There can be no guarantee that current trends will continue. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when repurchased, may be worth more or less than their original cost and current performance may be lower or higher than the performance data quoted.
| 1-Month | 3-Month | YTD | 3-Yr | ITD* | |
|---|---|---|---|---|---|
| Class U (No Sales Load) | (1.31%) | (2.27%) | (2.27%) | – | 3.62% |
| Class U (With Sales Load) | (4.27%) | (5.22%) | (5.22%) | – | 2.48% |
Class I Shares, Class D Shares and Class U Shares are each not subject to a sales load; however, investors may be required to pay brokerage commissions on purchases and sales of Class I Shares, Class D Shares and Class U Shares to their selling agents. “Class U (With Sales Load)” data assumes 3.0% brokerage commission at initial subscription.
Note: Past performance is historical and not a guarantee of future results.
* Performance since inception through date indicated. Class I inception date is July 2, 2020; Class U inception date is June 30, 2021; Class S inception date is September 9, 2022. ITD performance number is annualized if time period is longer than one year. On May 11, 2023, KREST’s outstanding Class D shares were converted to Class I and there were no outstanding Class D shares between May 12, 2023 and September 18, 2023. Class D re-issue inception date is September 19, 2023. Performance is not reported for partial months of activity.
| Class U | 5.11% |
|---|
| NAV Per Share | |
| Class U | $26.06 |
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | (0.25%) | (0.72%) | (1.31%) | – | – | – | – | – | – | – | – | – | (2.27%) |
| 2023 | 0.43% | (1.02%) | 2.20% | (1.09%) | (2.45%) | (1.03%) | (0.10%) | (0.17%) | 0.27% | (0.70%) | (1.60%) | (1.94%) | (7.04%) |
| 2022 | 1.50% | 2.95% | 3.79% | 3.02% | 0.31% | (0.84%) | (2.06%) | 0.86% | (0.08%) | 0.23% | (1.23%) | (1.10%) | 7.40% |
| 2021 | – | – | – | – | – | – | 1.80% | 0.64% | 4.79% | 1.17% | 1.36% | 2.67% | 13.03% |
Past performance is historical and not a guarantee of future results. The Fund employs leverage, which increases the volatility of investment returns and subjects the Fund to magnified losses if investments decline in value. There can be no guarantee that current trends will continue. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when repurchased, may be worth more or less than their original cost and current performance may be lower or higher than the performance data quoted.
| 1-Month | 3-Month | YTD | 3-Yr | ITD* | |
|---|---|---|---|---|---|
| Class D (No Sales Load) | (1.26%) | (2.12%) | (2.12%) | – | (2.99%) |
Class I Shares, Class D Shares and Class U Shares are each not subject to a sales load; however, investors may be required to pay brokerage commissions on purchases and sales of Class I Shares, Class D Shares and Class U Shares to their selling agents. “Class U (With Sales Load)” data assumes 3.0% brokerage commission at initial subscription.
Note: Past performance is historical and not a guarantee of future results.
* Performance since inception through date indicated. Class I inception date is July 2, 2020; Class U inception date is June 30, 2021; Class S inception date is September 9, 2022. ITD performance number is annualized if time period is longer than one year. On May 11, 2023, KREST’s outstanding Class D shares were converted to Class I and there were no outstanding Class D shares between May 12, 2023 and September 18, 2023. Class D re-issue inception date is September 19, 2023. Performance is not reported for partial months of activity.
| Class D | 5.72% |
|---|
| NAV Per Share | |
| Class D | $26.06 |
| Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | YTD | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2024 | (0.20%) | (0.68%) | (1.26%) | – | – | – | – | – | – | – | – | – | (2.12%) |
| 2023 | 0.48% | (0.97%) | 2.25% | (1.04%) | (2.40%) | (0.98%) | (0.05%) | (0.12%) | 0.32% | (0.64%) | (1.59%) | (0.01%) | (3.89%) |
| 2022 | – | – | 3.06% | 3.10% | 0.33% | (0.78%) | (1.98%) | 0.91% | (0.03%) | 0.28% | (1.18%) | (1.05%) | 2.56% |
Past performance is historical and not a guarantee of future results. The Fund employs leverage, which increases the volatility of investment returns and subjects the Fund to magnified losses if investments decline in value. There can be no guarantee that current trends will continue. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when repurchased, may be worth more or less than their original cost and current performance may be lower or higher than the performance data quoted.
Term Sheet
| FUND NAME | KKR Real Estate Select Trust Inc. (“KREST”) |
| FUND STRUCTURE | Non-listed, U.S. registered closed end fund with REIT taxation (’40 Act REIT) |
| INVESTMENT STRATEGY | Thematically invests at least 80% of its net assets (plus the amount of its borrowings for investment purposes) in a portfolio of real estate focused on three primary strategies: (i) thematically-driven stabilized, income-generating commercial real estate, (ii) prime single tenant real estate and (iii) private real estate debt and preferred equity interests In order to provide liquidity for share repurchases, also invests up to 20% of its net assets in securities and cash |
| INVESTOR ELIGIBILITY(1) | None |
| SUBSCRIPTIONS/NAVS | Daily2 |
| MANAGEMENT FEE | 1.25% of the average daily value of the Fund’s net assets, payable monthly in arrears |
| INCENTIVE FEE | 12.50% of the Fund’s Portfolio Operating Income, payable quarterly (Fees applied only to the income component of the Fund)3 |
| LIQUIDITY | Quarterly, via tender offer, generally with a 5% cap on re-purchases for any given period, at the Board’s discretion |
| EARLY REPURCHASE FEE | None |
| DIVIDEND REINVESTMENT PLAN | Automatic participation, unless otherwise elected |
| DISTRIBUTIONS2 | Monthly income distributions Realized capital gains paid annually |
| LEVERAGE | Fund level leverage subject to 1940 Act limit of 33 1/3% of the Fund’s assets |
| EXPENSE CAP | The Adviser has agreed, through at least 4/30/2024, to waive its fees and/or reimburse expenses of the Fund so that certain of the Fund’s expenses (“Specified Expenses”)3 will not exceed 0.50% of net assets (annualized) |
| TAX REPORTING | Form 1099-DIV (U.S. Investors) |
| SHARE CLASS SPECIFIC FEES | CLASS S | CLASS U | CLASS I | CLASS D |
|---|---|---|---|---|
| SYMBOL | KRSSX | KRSOX | KRSTX | KRSDX |
| MINIMUM INVESTMENT | $10,000 | $10,000 | $1,000,000 | $10,000 |
| UPFRONT COMMISSION4 | Up to 3.0% | None | None | None |
| DEALER MANAGER FEE | 0.50% | None | None | None |
| DISTRIBUTION FEE | 0.60% | 0.60% | None | None |
| SERVICING FEE | 0.25% | 0.25% | None | 0.25% |
Note: For illustrative purposes only, may be subject to change. Certain terms of the Fund are highlighted above. This summary is qualified in its entirety by the more detailed information contained in the applicable Fund’s registration statement and organizational documents, as applicable, and related documentation, all of which should be reviewed carefully and contain additional terms to those included in this summary. These terms are subject to change.
The Fund intends, but is not obligated, to conduct quarterly tender offers for up to 5.0% of the aggregate NAV of its outstanding Common Stock at the applicable NAV per share as of the applicable valuation date. Repurchases will be made at such times and on such terms as may be determined by the board of directors of the Fund, in its sole discretion. However, no assurance can be given that repurchases will occur or that any Common Stock properly tendered will be repurchased by the Fund. Due to these restrictions, an investor should consider an investment in the Fund to be of limited liquidity. Investing in the Fund is speculative and involves a high degree of risk, including the risks associated with leverage and the risk of a substantial loss of investment.
(1) Financial intermediaries may apply more stringent investor qualifications.
(2) KREST intends to make distributions necessary to maintain its qualification as a real estate investment trust. However, there is no assurance that we will pay distributions in any particular amount, if at all. Any distributions we make will be at the discretion of our Board of Directors. KREST may pay distributions from sources other than cash flow from operations, including without limitations, the sale of assets, borrowings, return of capital or offering proceeds. For the 12 months ended December 31, 2022, 96% of KREST’s distributions were funded through adjusted funds from operations (“AFFO”). The Fund defines AFFO as the increase in net assets applicable to common stockholders from operations (calculated in accordance with GAAP), excluding (i) the change in net unrealized (appreciation) depreciation of investments, (ii) amortization premium (accretion of discount) on real estate securities, (iii) amortization of deferred origination fees on real estate loans, (iv) amortization of deferred financing costs, (v) management and incentive fees paid in shares of the Fund and (vi) realized and including undistributed income attributable to the Fund’s unconsolidated subsidiaries. This statement is not an indication of the tax treatment of any KREST distributions. Stockholders will be informed of the tax characteristics of any distributions after the close of KREST’s fiscal year.
(3) Please refer to the “Management of the Fund—Expense Limitation and Reimbursement Agreement” section of the prospectus for a definition of Specified Expenses.
(4) Class I Shares, Class D Shares and Class U Shares are each not subject to a sales load; however, investors may be required to pay brokerage commissions on purchases and sales of Class I Shares, Class D Shares and Class U Shares to their selling agents. Investors should consult with their selling agents about the sales load and any additional fees or charges their selling agents might impose.