Invesco REIT Buys $87.2M Raleigh Retail Center as Capital Raise Accelerates

Invesco Real Estate Income Trust Inc. acquired a fully leased Raleigh, N.C., retail property for $87.2 million on Sept. 10, adding to a portfolio whose net asset value held nearly steady through August even as capital raising accelerated.

The nontraded real estate investment trust’s purchase price, inclusive of closing and leasing costs, covered Knightdale Marketplace, a 323,113-square-foot shopping center that is 100% leased with a weighted average lease term of about seven years.

The deal closed a week and a half after the REIT’s Aug. 31 valuation date, so it isn’t reflected in the Aug. 31 NAV figures. Total NAV stood at $663.1 million as of Aug. 31, up from $661.2 million a month earlier, with per-share NAV essentially unchanged across all eight share classes. Class N shares, which account for roughly two-thirds of the REIT’s total NAV, were valued at $27.8619 per share, up from $27.8324 in July. Class I shares, commonly used by institutional investors, rose slightly to $26.3155 from $26.3087.

The modest NAV growth came alongside a pickup in fundraising. The REIT raised $79.2 million in gross proceeds quarter-to-date through Aug. 31, nearly double the $46.2 million it had raised through July 31, implying roughly $33 million came in during August alone. The company is offering up to $3 billion in shares in its first follow-on continuous offering, which commenced in November 2024.

Share repurchases also picked up but remained fully satisfied. Stockholders requested $7.9 million in repurchases across July and August combined, up from $3.5 million in July alone, and the company said it fulfilled all requests in both months, with no proration.

Portfolio metrics moved modestly in the other direction. Weighted average occupancy across the REIT’s 71 direct real estate properties dipped to 93% as of Aug. 31 from 95% a month earlier, even as property count and total square footage – about 11.5 million square feet across 32 markets – held flat. Direct real estate holdings represented 77% of gross assets, down a point from July, with the private real estate credit allocation steady at about 16% across four investments. Leverage ticked down to 25% from 26%.

In July, the REIT issued 506,837 operating partnership units in exchange for interests in additional real estate investments, a net investment of $13.3 million, expanding the portfolio through an equity-for-property umbrella partnership REIT, or UPREIT, transaction rather than a cash purchase. The company did not disclose a comparable OP unit issuance for August.

The Knightdale acquisition and the fundraising uptick follow an incentive program Invesco’s adviser introduced last month. As AltsWire reported earlier this month, the adviser – not the REIT or its existing stockholders – is funding a bonus shares program that will award new investors in Class T, S, D, and I shares an extra 5% of their subscription amount for commitments accepted through Dec. 1, stepping down to 3% through March 1, 2027. Invesco reiterated on Sept. 16 that the bonus shares are funded by the adviser at no cost to the company or its stockholders, without adding new terms.

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