Cottonwood Communities REIT to Launch DST Program in Q3 2025
Cottonwood Communities Inc., a publicly registered non-traded real estate investment trust focused on multifamily real estate investments, announced that its board of directors has approved a Delaware statutory trust program to begin in the third quarter of 2025.
As previously reported by AltsWire, the board of directors of Cottonwood Communities is implementing a phased adjustment to Cottonwood Communities’ annualized distribution rate on all classes of its common stock from $0.73 per share to $0.68 per share over the course of several months.
This adjustment is to align with the anticipated performance of the combined company after the closing of the merger between the REIT and RealSource Properties Inc.
Thus, the annualized distribution rate decreased from $0.73 per share as of the July 31, 2025, record date, paid in August, to $0.71 per share for each class of common stock to shareholders of record on Aug. 31, to be paid in September.
The company’s monthly net asset value per share for each share class of our common stock – Class T, D, I, A, and OP – as of July 31 and transaction price as of Sept. 1 was $11.4777. This was compared to $11.5153 as of June 30, a decline of nearly 0.33%.
Shares were originally priced at $10 each plus applicable selling commissions and fees.
Total NAV decreased from approximately $714.8 million as of June 30, 2025, to $709.1 million as of July 31, a 0.8% dip.
In August, the company also reported an increase in the number of operating partnership units from 2 million to 8 million. The units will be used as equity compensation to officers, directors, and other employees.
For the three and six months ended June 30, 2025, Cottonwood had consolidated net income of $36.5 million and $23.5 million, respectively. For the year ended Dec. 31, 2024, it had consolidated net losses of $20.6 million. As of June 30 of this year, it had an accumulated deficit of $93.8 million. According to the company, these amounts largely reflect the expense of real estate depreciation and amortization in accordance with generally accepted accounting principles. Cash flows used in operating activities were $8.1 million for the six months ended June 30, and cash flows provided by operating activities were $15.4 million as of the end of 2024.
As of July 31, 2025, the company had a portfolio of $2.1 billion in total assets, with 79.8% of its equity value in operating properties, 2.8% in development, 12.8% in real estate-related structured investments, and 4.6% in land held for development.
Also to note, Cottonwood has been staffing up this summer. Just this week, AltsWire announced that CW Markets Group – a branch office of Orchard Securities and the capital markets division and wholesale distribution arm of Cottonwood Communities – had hired Jeffrey Namendorf as senior vice president of capital markets for its South Central territory covering Texas, Oklahoma, Arkansas, Louisiana and Mississippi. Earlier this summer, CW Markets Group hired both Chris Lockwood and Cameron Lyner to cover wholesaling efforts in the Southeast and Northwest territories, respectively.
As of Aug. 8, 2025, the REIT had raised gross proceeds of approximately $256.3 million from the sale of 14.5 million shares in the offering, including proceeds from its distribution reinvestment plan, or DRIP, of approximately $10.2 million. Approximately $743.7 million in shares remain available for sale pursuant to the offering, including approximately $89.8 million in shares available for sale through its DRIP.
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