NET INFLOWS AND CAPITAL MOVEMENTS Beyond debt and dividend metrics, investors should also review the REIT’s net capital flows. For example, if a REIT raises $50 million in fresh capital but experiences redemptions and outflows totaling $200 million over the same period—resulting in a net outflow of $150 million—this discrepancy could indicate deeper financial challenges. Such a pattern might signal that the REIT is facing liquidity issues that could jeopardize future distributions.
THE NEED FOR RIGOROUS DUE DILIGENCE Due diligence is paramount in the 721 UPREIT DST space. Too often, financial advisors and so-called experts recommend plopping a client’s entire 1031 exchange into a single 721 UPREIT DST without thoroughly examining these critical economic indicators. Investors must understand the nuances of the DST’s underlying REIT, including markups, debt structure, dividend coverage, and net capital flows. Click Here to Download Your Free Listings of DST Properties.
DWIGHT KAY Founder and CEO Kay Properties and Investments (855) 899-4597
Dwight Kay is the Founder and CEO of Kay Properties and Investments, one of the most experienced and knowledgeable investment firms in the country specializing in Delaware Statutory Trust (DST) and private equity real estate investments. Mr. Kay established Kay Properties with the emphasis on providing real estate investment options to high-net-worth clients looking for passive real estate ownership. Since its founding, Kay Properties has participated in more than $30 billion of DST 1031 investments.
Disclaimer : This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. Nothing contained on this website constitutes tax, legal, insurance or investment advice, nor does it constitute a solicitation or an offer to buy or sell any security or other financial instrument. Securities offered through FNEX Capital, member FINRA.
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