Invesco’s INCREF Lends $130M on Swedish Multifamily as Total NAV Rises 2.7%
Invesco Commercial Real Estate Finance Trust Inc., or INCREF, a nontraded real estate investment trust sponsored by Invesco Real Estate, closed a $129.9 million whole loan secured by a multifamily portfolio in Sweden in September, one of four originations totaling $244.9 million for the month.
The other three were U.S. multifamily loans: $47.5 million on an Indianapolis property and two loans of $45 million and $22.5 million, each on a Los Angeles portfolio. In August, INCREF closed a $364.3 million loan on a San Jose, Calif., industrial portfolio and an $8 million loan on a Boston self-storage property.
INCREF’s total net asset value rose about 2.7% to $1.47 billion as of Sept. 30, from $1.43 billion as of Aug. 31. Shares outstanding increased by more than 1.6 million, to about 58.4 million.
Class I NAV per share slipped to $24.9410 from $24.9871, a decline of about 0.2%. Other share classes moved by similar amounts.
The weighted-average discount rate INCREF uses to value its commercial real estate loans rose to 6.38% from 6.13% at the end of August, INCREF reported. The range widened at the top end, to 11.40% from 11.15%.
Loan investments grew to $6.60 billion as of Sept. 30 from $6.54 billion a month earlier, with fair value and outstanding principal balance both at about $6.6 billion. The portfolio is financed primarily through $3.23 billion of secured financing facilities, up from $3.19 billion, and $2.13 billion of collateralized loan obligations.
INCREF sold about $28.7 million of Class S-1 and Class I shares on Oct. 1 in its private offering, priced at Aug. 31 NAV.
For September, the REIT declared its regular $0.16 gross monthly distribution plus a $0.02 special distribution, the second consecutive month with a special payout. INCREF has not disclosed a reason for the specials. At the regular rate, the distribution equals an annualized rate of about 7.7% on Sept. 30 Class I NAV.
INCREF launched in summer 2023 and is advised by Invesco Advisers Inc. Charlie Rose, Invesco Real Estate’s global head of credit, is chief executive officer.
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