The non-traded REIT swung to a first-quarter loss even as portfolio expansion picked up speed and liquidity climbed to $465 million.

May 13, 2026

Brookfield Real Estate Income Trust posted a first-quarter net loss attributable to stockholders of $2.5 million for the three months ended March 31, 2026, reversing a year-earlier gain of $2.0 million, even as the externally managed non-traded REIT moved aggressively to expand its logistics footprint and put fresh capital to work on a Silicon Valley data center.

The Maryland-incorporated REIT, externally managed by an affiliate of Brookfield Asset Management Ltd. with Oaktree Capital Management serving as sub-adviser on certain liquid assets, reported total revenues of $36.3 million, up modestly from $35.5 million a year earlier. The increase reflected incremental rental income from properties added to the portfolio during 2025 and the first months of 2026. Total expenses climbed to $34.0 million from $31.5 million, with depreciation and amortization rising to $14.1 million and rental property operating expenses increasing to $14.5 million on higher real estate taxes, insurance, and a larger asset base.

On a per-share basis, the company posted a loss of $0.03 against earnings of $0.03 in the comparable 2025 quarter. Weighted average shares outstanding grew sharply to 92.7 million from 69.5 million a year earlier, reflecting continued capital formation.

Logistics Push and a Post-Quarter Data Center Deal

The headline transaction during the quarter was the March acquisition of 34 Market Street, a 222,000-square-foot Class A warehouse and distribution facility in Everett, Massachusetts, less than five miles from downtown Boston, for approximately $156 million. The asset is fully leased on a triple-net basis to an investment-grade tenant with roughly 12 years of remaining lease term and contractual annual rent escalators. The transaction was financed in part with an $84 million variable-rate mortgage closed alongside the acquisition.

The deal lifted logistics segment assets to $341.7 million from $176.5 million at year-end, nearly doubling the segment’s footprint in a single transaction. Broader unconsolidated logistics exposure also continued to build through limited partnership stakes in the U.S. Diversified Logistics Portfolio I and II, Brookfield-managed funds in which Brookfield Real Estate Income Trust holds approximately 19 percent interests.

Activity did not stop at quarter-end. On May 12, 2026, the company disclosed it had acquired a fully leased 120,000-square-foot powered shell data center in Sunnyvale, California, for $90 million, signaling an expansion into a property type that has drawn intense investor interest amid the artificial intelligence-driven build-out of digital infrastructure. The two transactions together commit nearly $250 million of fresh capital and meaningfully tilt the portfolio toward industrial-adjacent assets.

Portfolio, Leverage, and Liquidity

As of March 31, the company held 20 real estate investments, 24 real estate-related securities, three real estate-related loans, and four investments in unconsolidated real estate ventures. By asset value, real estate properties accounted for 90 percent of the portfolio and real estate-related loans and securities the remaining 10 percent. Within the real estate sleeve, the mix was:

• Multifamily: 44 percent
• Net lease: 20 percent
• Logistics: 20 percent
• Single-family rental: 9 percent
• Student housing: 5 percent
• Office: 2 percent

That positioning contrasts sharply with the retail-heavy mix carried by some legacy non-traded REIT peers.

Total assets grew to $2.10 billion from $2.03 billion at year-end 2025. Total liquidity stood at $465.2 million, consisting of $30.5 million in unrestricted cash, $4.7 million in short-term U.S. Treasury bonds, $305.0 million in undrawn capacity on secured credit facilities, and $125.0 million in undrawn capacity on the affiliate line of credit. Property-level leverage was 51 percent, with a weighted average cost of leverage of 4.70 percent, down from 5.07 percent a year earlier as variable-rate exposure repriced lower and certain mortgages were refinanced.

The Secured Credit Facility’s maturity was extended to May 2027 under a final extension option, while the SFR Secured Credit Facility supporting the single-family rental portfolio carried $130 million outstanding against a $185 million capacity.

Capital Raising, Distributions, and Repurchases

Capital raising slowed materially compared with the first quarter of 2025. The company raised $5.9 million in gross proceeds from public and private offerings during the quarter, alongside $28.6 million through its Delaware statutory trust program aimed at Section 1031 exchange investors. Cumulative net proceeds from the public offering and private placements reached $1.2 billion as of May 12, while the DST program has generated approximately $146.2 million since launch in late 2024.

Monthly net distributions totaled $16.2 million for the quarter, with the gross distribution rate set at $0.2159 per share across all classes. Annualized net distribution rates as of quarter-end ranged from 5.99 percent on Class T shares to 6.92 percent on Class I shares. Distribution reinvestments totaled $8.4 million, up sharply from $3.4 million a year earlier.

Share repurchase activity remained substantial. The company bought back 3.13 million shares for $32.1 million under its share repurchase plan and satisfied 100 percent of repurchase requests received during the quarter — a track record management notes has held since inception. Separately, 314,545 Class I shares were repurchased from the Adviser outside the plan for $3.3 million, reflecting management fees previously paid in stock.

Returns and Net Asset Value

Year-to-date total returns through March 31, excluding upfront selling commissions, were 1.44 percent for Class S shares, 1.65 percent for Class I, 1.59 percent for Class D, and 1.52 percent for Class T. Annualized returns since inception came in at 5.27 percent for Class S and 6.29 percent for Class I, with newer share classes posting lower or negative inception-to-date results.

Aggregate net asset value totaled $954.6 million across all share and unit classes, with per-share NAV ranging from $10.05 for Class C shares to $10.47 for Class D shares. Adjusted funds from operations rose to $5.5 million from $3.7 million a year earlier, and funds available for distribution improved to $7.3 million, or $0.08 per share, from $5.9 million, or $0.06 per share.

Outlook

Management struck a constructive tone on the broader real estate cycle, citing stabilizing valuations, declining new construction starts, and steady tenant demand, while flagging geopolitical risks and U.S. trade policy uncertainty as sources of public-market volatility. The company indicated it sees an active acquisition pipeline of high-quality properties at attractive pricing and views its current liquidity as ample to pursue further deals.