Forum Real Estate Income Fund ("the Fund")*

Access to Commerical Real Estate Debt

What is Forum Real Estate Income Fund

Forum Real Estate Income Fund is a ‘40 Act private placement continuously-offered closed-end tender fund focusing on investment opportunities within commercial real estate debt.

INVESTMENT OBJECTIVE

To achieve current income with a focus on capital preservation.

The Fund’s portfolio is comprised primarily of income-producing investments in commercial real estate-backed debt across a variety of structures. These investments could include: agency securitizations, non-agency securitizations, single asset single borrower (SASB), mezzanine loans, CMBS B-pieces, direct multifamily real estate, and more.1

KEY POTENTIAL BENEFITS

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An investment objective based on predecessor fund historical performance

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Opportunities to add to your investment with the flexibility of quarterly repurchase periods2

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Monthly closes with an aim of distributing attractive monthly income while seeking total return targets

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Simplifying portfolio and capital management

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Governance by an independent Board of Trustees

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A more simplified fee structure vs. typical private equity

There is no assurance the Fund will achieve these goals or have the ability to pay distributions.

WHY CRE DEBT?

Commercial real-estate backed debt may offer an attractive, relative value to real estate and fixed-income investors. CRE debt has the potential to offer:

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Demonstrated quarterly cash flow with historically low volatility relative to fixed-income investments

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An investment structure backed by hard assets with reasonable loan-to-value ratios3

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Low correlation to other asset classes over time, providing much-needed portfolio diversification

Talk to your financial advisor or contact us to learn how you can invest in the Fund.

*The fund name changed from Forum CRE Income Fund to Forum Real Estate Income Fund on June 13, 2022.

 

1 DEFINITIONS:  “Agency Securitization” or mortgage-backed security (“MBS”) is an investment security made up of a parcel of mortgage loans backed by multifamily properties purchased and securitized by a government-sponsored enterprise that pay investors coupons similar to bonds. “Non-Agency Securitization” is similar to agency securitizations however they consist of commercial mortgages backed by varying commercial property types and are securitized by non-agency investment banking firms–Source: Investopedia.com. “Single Asset Single Borrower (SASB)” is a conduit loan consisting of one, large loan for a single property that is securitized and sold on the secondary market –Source: CMBS.loans. “Mezzanine Loans” is a hybrid of debt and equity financing that typically gives the lender the right to convert to an equity interest in the underlying real estate in case of default, senior lenders are paid –Source: Investopedia.com. “CMBS B-Pieces” are the junior class of either agency securitizations or non-agency securitizations that typically offer higher returns given their junior payment priority in the securitization structure, where they must wait until all senior classes have been fully paid before they receive compensation.

 

2 Each quarterly repurchase offer will ordinarily be limited to the repurchase of 5% of the weighted average number of shares outstanding in the prior calendar year (or 20% in each calendar year). A 2.00% early redemption fee payable to the Fund will be charged with respect to the repurchase of a shareholder's shares at any time prior to the day immediately preceding the one-year anniversary of a shareholder's purchase of the shares. See the memorandum for additional details.

 

3 Industry standard for “reasonable loan-to-value” is 80% or lower.