UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________________________________________________________

FORM 10-Q

_______________________________________________________________

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2025

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM                  TO                 

Commission File Number: 000-56655

_______________________________________________________________

Invesco Real Estate Income Trust Inc.

(Exact name of Registrant as specified in its charter)

_______________________________________________________________

Maryland	83-2188696
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2300 N Field Street Suite 1200 Dallas, Texas (Address of principal executive office)	75201 (Zip Code)
Registrant’s telephone number, including area code: (972)715-7400

_______________________________________________________________

Securities registered pursuant to Section 12(b) of the Act: None

Title of each class Trading Symbol(s) Name of each exchange on which registered

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	x	Smaller reporting company	x
		Emerging growth company	x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    Yes  x    No  ¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act. Yes  ¨    No  x

As of May 12, 2025, the issuer had the following shares outstanding: 634,028 shares of Class T common stock, 791,065 shares of Class S common stock, 879,648 shares of Class D common stock, 4,555,531 shares of Class I common stock, 1,249,478 shares of Class E common stock and 14,773,615 shares of Class N common stock.

Table of Contents

		Page
PART I	FINANCIAL INFORMATION	1
ITEM 1.	FINANCIAL STATEMENTS	1
	Unaudited Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024	1
	Unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2025 and 2024	2
	Unaudited Condensed Consolidated Statements of Changes in Equity and Redeemable Equity Instruments for the three months ended March 31, 2025 and 2024	3
	Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2025 and 2024	5
	Notes to Unaudited Condensed Consolidated Financial Statements	7
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	36
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	58
ITEM 4.	CONTROLS AND PROCEDURES	59
PART II	OTHER INFORMATION	60
ITEM 1.	LEGAL PROCEEDINGS	60
ITEM 1A.	RISK FACTORS	60
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS AND ISSUER PURCHASES OF EQUITY SECURITIES	60
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	61
ITEM 4.	MINE SAFETY DISCLOSURES	61
ITEM 5.	OTHER INFORMATION	61
ITEM 6.	EXHIBITS	62
SIGNATURES		63

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Invesco Real Estate Income Trust Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

in thousands except share amounts	March 31, 2025		December 31, 2024
ASSETS
Investments in real estate, net	$	675,880	$	680,596
Investments in unconsolidated entities	120,929		124,473
Investment in commercial loan, at fair value	12,168		12,996
Investments in real estate-related securities, at fair value	57,253		56,472
Investment in affiliated fund, at fair value	20,481		21,342
Intangible assets, net	22,952		24,943
Cash and cash equivalents	140,800		48,176
Restricted cash	5,470		4,883
Other assets	15,726		9,198
Total assets(1)	$	1,071,659	$	983,079
LIABILITIES
Mortgages payable, net	$	303,375	$	285,266
Financing obligation, net	53,989		53,991
Due to affiliates	22,977		23,960
Accounts payable, accrued expenses and other liabilities	19,790		16,058
Total liabilities(2)	400,131		379,275
Commitments and contingencies (See Note 19)	—		—
Class N redeemable common stock, $0.01 par value per share	430,275		425,178
Redeemable non-controlling interest in INREIT OP	1,149		2,018
EQUITY
Common stock, Class T shares, $0.01 par value per share, 600,000,000 shares authorized	6		6
Common stock, Class S shares, $0.01 par value per share, 600,000,000 shares authorized	8		7
Common stock, Class D shares, $0.01 par value per share, 600,000,000 shares authorized	9		9
Common stock, Class I shares, $0.01 par value per share, 600,000,000 shares authorized	45		47
Common stock, Class E shares, $0.01 par value per share, 600,000,000 shares authorized	12		12
Additional paid-in capital	242,799		229,983
Accumulated deficit and cumulative distributions	(139,502)		(127,796)
Total stockholders' equity	103,377		102,268
Non-controlling interests in consolidated joint ventures	136,727		74,340
Total equity	240,104		176,608
Total liabilities, redeemable equity instruments and equity	$	1,071,659	$	983,079

(1) Includes restricted assets of consolidated variable interest entities (“VIEs”) at March 31, 2025 and December 31, 2024 of $314.6 million and $165.7 million, respectively. See Note 16 — “Variable Interest Entities.”

(2) Includes non-recourse liabilities of consolidated VIEs at March 31, 2025 and December 31, 2024 of $142.8 million and $4.1 million, respectively. See Note 16 — “Variable Interest Entities.”

See accompanying notes to condensed consolidated financial statements.

1

Invesco Real Estate Income Trust Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

	Three Months Ended March 31,
in thousands except share amounts	2025		2024
Revenues
Rental revenue	$	14,918	$	14,494
Income from commercial loans	395		1,130
Other revenue	1,270		740
Total revenues	16,583		16,364
Expenses
Rental property operating	5,706		6,639
General and administrative	2,104		998
Management fee - related party	605		465
Depreciation and amortization	7,056		6,024
Total expenses	15,471		14,126
Other income (expense), net
Income (loss) from unconsolidated entities, net	73		1,002
Gain (loss) on real estate-related securities, net	553		1,018
Income (loss) from investment in affiliated fund, net	473		651
Gain (loss) on derivative instruments, net	(545)		1,723
Unrealized gain (loss) on commercial loans	(66)		54
Debt extinguishment charges	(34)		—
Interest income	730		298
Interest expense	(4,560)		(5,959)
Other income (expense), net	(78)		(188)
Total other income (expense), net	(3,454)		(1,401)
Net income (loss) attributable to Invesco Real Estate Income Trust Inc.	$	(2,342)	$	837
Dividends to preferred stockholders	$	—	$	(2)
Net (income) loss attributable to non-controlling interests in consolidated joint ventures	13		22
Net (income) loss attributable to non-controlling interest in INREIT OP	(18)		39
Net income (loss) attributable to common stockholders	$	(2,347)	$	896
Earnings (loss) Per Share:
Net income (loss) per share of common stock, basic and diluted	$	(0.10)	$	0.04
Weighted average shares of common stock
Basic	22,732,182		21,631,918
Diluted	22,732,182		21,631,467

See accompanying notes to condensed consolidated financial statements.

2

Invesco Real Estate Income Trust Inc.

Condensed Consolidated Statements of Changes in Equity and Redeemable Equity Instruments

(Unaudited)

in thousands	Series A Preferred Stock		Class T Common Stock		Class S Common Stock		Class D Common Stock		Class I Common Stock		Class E Common Stock		Class N Common Stock		Additional Paid-in Capital		Accumulated Deficit and Cumulative Distributions		Total Stockholders' Equity		Non-controlling Interests in Consolidated Joint Ventures		Total Equity		Class N Redeemable Common Stock		Redeemable Non-controlling Interest in INREIT OP
Balance at December 31, 2024	$	—	$	6	$	7	$	9	$	47	$	12	$	—	$	229,983	$	(127,796)	$	102,268	$	74,340	$	176,608	$	425,178	$	2,018
Proceeds from issuance of common stock, net of offering costs	—		—		1		—		1		—		—		4,631		—		4,633		—		4,633		—		—
Distribution reinvestment	—		—		—		—		—		—		—		575		—		575		—		575		5,097		—
Common stock repurchased	—		—		—		—		(3)		—		—		(9,502)		—		(9,505)		—		(9,505)		—		(865)
Share-based compensation	—		—		—		—		—		—		—		62		—		62		—		62		—		—
Net income (loss)	—		—		—		—		—		—		—		—		(2,347)		(2,347)		(13)		(2,360)		—		18
Common stock and INREIT OP unit distributions ($0.4162 gross per share/unit)	—		—		—		—		—		—		—		—		(9,359)		(9,359)		—		(9,359)		—		(22)
Contributions from non-controlling interests	—		—		—		—		—		—		—		—		—		—		63,827		63,827		—		—
Distributions to non-controlling interests	—		—		—		—		—		—		—		—		—		—		(1,427)		(1,427)		—		—
Sale of interest in consolidated joint ventures	—		—		—		—		—		—		—		17,050		—		17,050				17,050		—		—
Balance at March 31, 2025	$	—	$	6	$	8	$	9	$	45	$	12	$	—	$	242,799	$	(139,502)	$	103,377	$	136,727	$	240,104	$	430,275	$	1,149

See accompanying notes to condensed consolidated financial statements.

3

Invesco Real Estate Income Trust Inc.

Condensed Consolidated Statements of Changes in Equity and Redeemable Equity Instruments

(Unaudited)

in thousands	Series A Preferred Stock		Class T Common Stock		Class S Common Stock		Class D Common Stock		Class I Common Stock		Class E Common Stock		Class N Common Stock		Additional Paid-in Capital		Accumulated Deficit and Cumulative Distributions		Total Stockholders' Equity		Non-controlling Interests in Consolidated Joint Ventures		Total Equity		Class N Redeemable Common Stock		Redeemable Non-controlling Interest in INREIT OP
Balance at December 31, 2023	$	41	$	6	$	5	$	8	$	43	$	12	$	—	$	214,297	$	(118,388)	$	96,024	$	35,124	$	131,148	$	405,479	$	5,658
Proceeds from issuance of common stock, net of offering costs	—		—		1		1		4		—		—		14,781		—		14,787		—		14,787		—		—
Distribution reinvestment	—		—		—		—		—		—		—		444		—		444		—		444		4,835		—
Common stock repurchased	—		—		—		—		(2)		—		—		(7,361)		—		(7,363)		—		(7,363)		—		(867)
Share-based compensation	—		—		—		—		—		—		—		19		—		19		—		19		—		—
Net income (loss)	—		—		—		—		—		—		—		—		898		898		(22)		876		—		(39)
Preferred stock dividends	—		—		—		—		—		—		—		—		(2)		(2)		—		(2)		—		—
Common stock and INREIT OP unit distributions ($0.4182 gross per share/unit)	—		—		—		—		—		—		—		—		(8,964)		(8,964)		—		(8,964)		—		(71)
Contributions from non-controlling interests	—		—		—		—		—		—		—		—		—		—		5,472		5,472		—		—
Distributions to non-controlling interests	—		—		—		—		—		—		—		—		—		—		(425)		(425)		—		—
Adjustment to carrying value of redeemable equity instruments	—		—		—		—		—		—		—		(54)		—		(54)		—		(54)		—		54
Balance at March 31, 2024	$	41	$	6	$	6	$	9	$	45	$	12	$	—	$	222,126	$	(126,456)	$	95,789	$	40,149	$	135,938	$	410,314	$	4,735

See accompanying notes to condensed consolidated financial statements.

4

Invesco Real Estate Income Trust Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Three Months Ended March 31,
in thousands	2025		2024
Cash flows from operating activities:
Net income (loss)	$	(2,342)	$	837
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Management fee - related party	605		465
(Income) loss from unconsolidated entities, net	(73)		(1,002)
Depreciation and amortization	7,056		6,024
Share-based compensation	62		19
Straight-line rents	(145)		(175)
Amortization of below-market lease intangibles	(490)		(99)
Amortization of above-market lease intangibles	44		43
Amortization of deferred financing costs	321		312
(Income) loss from investment in affiliated fund, net	(473)		(653)
Unrealized (gain) loss from real estate-related securities, net	332		(2,154)
Unrealized (gain) loss on commercial loans	66		(54)
(Gain) loss on derivative instruments, net	782		(332)
Distributions of earnings from investments in unconsolidated entities	1,373		672
Realized (gain) loss from real estate-related securities, net	34		1,618
Other items	76		97
Change in assets and liabilities, net of assets and liabilities acquired in acquisitions:
Decrease (increase) in other assets	(372)		341
(Decrease) increase in due to affiliates	(1,051)		(649)
(Decrease) increase in accounts payable, accrued expenses and other liabilities	(1,237)		(3,744)
Net cash (used in) provided by operating activities	4,568		1,566
Cash flows from investing activities:
Investments in unconsolidated entities	(306)		(142)
Proceeds from unconsolidated entities	—		646
Distributions of capital from investments in unconsolidated entities	2,550		1,148
Redemption of investment in affiliated fund	789		547
Distribution from affiliated fund	500		653
Proceeds from repayment of commercial loan	762		—
Pre-acquisition deposits	—		(1,000)
Capital improvements to real estate	(357)		(1,302)
Purchase of real estate-related securities	(1,745)		(15,465)
Proceeds from sale of real estate-related securities	660		8,281
Net cash provided by (used in) investing activities	2,853		(6,634)

5

Cash flows from financing activities:
Proceeds from issuance of common stock	4,163		15,030
Offering costs paid	(45)		(38)
Repurchase of common stock and OP units	(6,315)		(13,377)
Subscriptions received in advance	1,345		6,853
Borrowings from mortgages payable	84,000		—
Payments of mortgages payable	(65,500)		—
Debt extinguishment charges	34		—
Payment of financing obligation	(2)		(5)
Common stock and INREIT OP unit distributions	(3,711)		(3,697)
Cash received from sale of interest in consolidated joint ventures	9,421		—
Contributions from non-controlling interests	63,827		5,472
Distributions to non-controlling interests	(1,427)		(425)
Net cash provided by (used in) financing activities	85,790		9,813
Net change in cash and cash equivalents and restricted cash	93,211		4,745
Cash and cash equivalents and restricted cash, beginning of period	53,059		43,372
Cash and cash equivalents and restricted cash, end of period	$	146,270	$	48,117

Reconciliation of cash and cash equivalents and restricted cash to the condensed consolidated balance sheets:
Cash and cash equivalents	$	140,800	$	36,742
Restricted cash	5,470		11,375
Total cash and cash equivalents and restricted cash	$	146,270	$	48,117
Supplemental disclosures:
Interest paid	$	4,235	$	5,760
Income taxes paid	$	16	$	122
Non-cash investing and financing activities:
Note receivable from sale of consolidated joint ventures	$	7,629	$	—
Issuance of Class E shares for payment of management fees	$	551	$	465
Accrued capital expenditures	$	6	$	731
Accrued preferred dividends	$	—	$	2
Distributions payable	$	3,142	$	3,038
Distribution reinvestment	$	5,672	$	5,279
Accrued offering costs due to affiliates	$	35	$	670
Adjustment to carrying value of redeemable equity instruments	$	—	$	54
Accrued common stock repurchases	$	4,055	$	(5,148)

See accompanying notes to condensed consolidated financial statements.

6

Invesco Real Estate Income Trust Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1.Organization and Business Purpose

Invesco Real Estate Income Trust Inc. (the “Company” or “we”) is focused on investing in stabilized, income-oriented commercial real estate in the United States. To a lesser extent, we also originate and acquire private real estate debt and invest in real estate-related securities. We own, and expect to continue to own, all or substantially all of our assets through Invesco REIT Operating Partnership L.P. (the “Operating Partnership” or “INREIT OP”), of which we are the sole general partner.

We were incorporated in October 2018 as a Maryland corporation and commenced real estate operations in September 2020. We are externally managed by Invesco Advisers, Inc. (the “Adviser”), a registered investment adviser and an indirect, wholly-owned subsidiary of Invesco Ltd. (“Invesco”), an independent global investment management firm.

We qualified as a real estate investment trust (“REIT”) for U.S. federal income tax purposes beginning with the taxable year ended December 31, 2020. We operate our business in a manner that permits our exclusion from the definition of “Investment Company” under the Investment Company Act of 1940, as amended (the “Investment Company Act”).

In May 2021, we commenced our initial public offering of up to $3.0 billion in shares of common stock. In November 2024, our initial public offering terminated, and we commenced our follow-on public offering of up to $3.0 billion, consisting of up to $2.4 billion in shares in our primary offering (the “Primary Offering”) and up to $600.0 million in shares under our distribution reinvestment plan (collectively, the “Offering”). We are offering to sell any combination of five classes of shares of our common stock in the Offering: Class T shares, Class S shares, Class D shares, Class I shares and Class E shares, with a dollar value up to the maximum offering amount. The share classes have different upfront selling commissions and dealer manager fees and different ongoing stockholder servicing fees.

We are also conducting private offerings of up to $1.0 billion in shares of our Class N common stock (“Class N shares” or “Class N common stock”) (the “Class N Private Offering”) and up to $20.0 million in shares of our Class E common stock (the “Class E Private Offering”) (collectively, the “Private Offerings”).

In February 2023, we, through our Operating Partnership, initiated a private placement program (the “DST Program”) to issue and sell up to $3.0 billion of beneficial interests (“Interests”) in specific Delaware statutory trusts (the “DSTs”) holding real properties (the “DST Properties”), which may be sourced from our real properties or from third parties.

2.Summary of Significant Accounting Policies

Basis of Presentation

Certain disclosures included in our Annual Report on Form 10-K are not required to be included on an interim basis in our quarterly reports on Form 10-Q. We have condensed or omitted these disclosures. Therefore, this Quarterly Report on Form 10-Q should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2024.

The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and consolidate the financial statements of the Company and its controlled subsidiaries. All significant intercompany transactions, balances, revenues and expenses are eliminated upon consolidation. In the opinion of management, the condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are necessary for a fair statement of our financial condition and results of operations for the periods presented.

7

Consolidation

We consolidate entities in which we have a controlling financial interest. In determining whether we have a controlling financial interest in a partially owned entity, we consider whether the entity is a variable interest entity (“VIE”) and whether we are the primary beneficiary. We are the primary beneficiary of a VIE when we have both the power to direct the most significant activities impacting the economic performance of the VIE and the obligation to absorb losses or receive benefits significant to the VIE. See additional information on our VIEs in Note 16 — “Variable Interest Entities.”

The non-controlling partner’s interest is generally calculated as the joint venture partner’s ownership percentage. Certain of the joint ventures formed by the Company provide the joint venture partner a profits interest based on certain internal rate of return hurdles being achieved. Any profits interest due to the joint venture partner is reported as net (income) loss attributable to non-controlling interests in consolidated joint ventures on our condensed consolidated statements of operations.

For our DST Program, the non-controlling interest represents the proceeds from the syndicated percentages of the Offering. The non-controlling interest is presented as permanent equity in our condensed consolidated balance sheets because the fair market value purchase option to exchange interests for units of the Operating Partnership or cash is based on the occurrence of a conditional event. See additional information on our DST Program in Note 17 — “DST Program.” The beneficial owners’ allocation of the DST Program’s income or loss is reported as net income (loss) attributable to non-controlling interests in consolidated joint ventures on our condensed consolidated statements of operations.

We apply the equity method of accounting if we have significant influence over an entity, typically when we hold 20 percent or more of the voting common stock (or equivalent) of an investee but do not have a controlling financial interest. In certain circumstances, such as with investments in limited liability companies or limited partnerships, we apply the equity method of accounting when we own as little as three to five percent. See Note 4 — “Investments in Unconsolidated Entities” for further information about our investments in partially owned entities.

Income Taxes

We elect to treat certain of our corporate subsidiaries as taxable REIT subsidiaries (“TRSs”) which are subject to federal, state and local corporate income tax, as applicable. TRSs hold investments in assets, income streams, operating companies and associated expenses that produce non-qualifying items for purposes of REIT testing.

For each of the three months ended March 31, 2025 and 2024, we recorded a net tax expense of $0.1 million, located within other income (expense), net on our condensed consolidated statements of operations. As of March 31, 2025 and December 31, 2024, we had a deferred tax asset of $0.1 million and $0.3 million, respectively, which was offset by a full valuation allowance. Deferred tax assets and valuation allowances are recorded within other assets on our condensed consolidated balance sheets. As of March 31, 2025, our tax years 2021 through 2025 remain subject to examination by the United States tax authorities.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain amounts reported in the condensed consolidated financial statements and accompanying notes. An example of an estimate may include, but is not limited to, estimates of the fair values of financial instruments. Actual results may differ from those estimates.

Significant Accounting Policies

There have been no changes to our accounting policies included in Note 2 — “Summary of Significant Accounting Policies” to the consolidated financial statements of our Annual Report on Form 10-K for the year ended December 31, 2024.

8

3.Investments in Real Estate, net

Investments in real estate, net consist of:

in thousands	March 31, 2025		December 31, 2024
Building and improvements	$	555,426	$	555,325
Land and land improvements	165,870		165,853
Furniture, fixtures and equipment	9,300		9,056
Total	730,596		730,234
Accumulated depreciation	(54,716)		(49,638)
Investments in real estate, net	$	675,880	$	680,596

Sale of Interest in Consolidated Joint Ventures

On February 28, 2025, we sold a 40% indirect leasehold interest in a student housing property, The Carmin, in which we previously had a 98% ownership interest, to an unaffiliated third party for a sale price of $138.5 million. In connection with the sale, the existing joint venture of the property, of which we have a controlling financial interest, formed a new joint venture with the buyer. The transaction did not qualify as a sale of real estate for financial reporting purposes because we continue to control the joint venture and will continue to account for the entity on a consolidated basis in our condensed consolidated financial statements. We have accounted for the transaction as an equity transaction and have recognized non-controlling interest in our condensed consolidated balance sheets of $4.9 million. Total consideration of $22.0 million for the transaction includes $14.4 million paid in cash by the buyer at the date of the sale and a $7.6 million note receivable from the buyer due within six months from the date of sale. The difference of $17.1 million between the total consideration of $22.0 million and the non-controlling interest recognized of $4.9 million has been reflected as an increase to additional paid in capital on our condensed consolidated balance sheets. The $7.6 million note receivable is recorded in other assets on our condensed consolidated balance sheets.

Impairment

During the three months ended March 31, 2025 and 2024, we did not recognize any impairment losses on our real estate investments.

9

4.Investments in Unconsolidated Entities

As of March 31, 2025, we held five investments in unconsolidated entities that are accounted for using the equity method of accounting. The amounts reflected in the following tables (except for our share of equity and income) are based on the historical financial information of the individual unconsolidated entities. We do not record operating losses of an unconsolidated entity in excess of its investment balance unless we are liable for the obligations of the entity or are otherwise committed to provide financial support to the entity.

Our investments in unconsolidated entities as of March 31, 2025 and December 31, 2024 were as follows:

in thousands			Carrying Amount
Entity	Ownership Percentage(1)		March 31, 2025		December 31, 2024
Vida JV LLC(2)	42.5%		$	63,552	$	64,292
San Simeon Preferred Equity(3)	—	%	29,168		28,693
PTCR Holdco, LLC(4)	—	%	9,624		9,375
Retail GP Fund(5)	4.5% to 9.0%		18,497		22,019
Homestead Communities, LLC(6)	50.0%		88		94
Total			$	120,929	$	124,473

(1)Ownership percentage represents our entitlement to residual distributions after payments of priority returns, where applicable. Preferred equity investment ownership percentages are not presented.

(2)We formed a joint venture (the “Invesco JV”) with Invesco U.S. Income Fund L.P., an affiliate of Invesco, to acquire an interest in a portfolio of medical office buildings located throughout the United States (the “Sunbelt Medical Office Portfolio”). As of March 31, 2025, the Invesco JV owned an 85% interest in a joint venture (“Vida JV LLC”) with an unaffiliated third party. As of March 31, 2025, Vida JV LLC owned a portfolio of twenty medical office buildings.

(3)We own a preferred membership interest in San Simeon Holdings LLC (“San Simeon Preferred Equity”), a limited liability company that owns a multifamily property. The common member of San Simeon Preferred Equity had two one-year extension options that they have exercised as of March 31, 2025. Our mandatory redemption date of our preferred membership interest is December 15, 2025. As of March 31, 2025, the investment yields a preferred return rate of 7.50%, which includes both the current pay and the deferred pay rates, as well as a preferred accrued return of 4.00% due upon redemption.

(4)We hold an 85% ownership interest in a consolidated joint venture, ITP Investments LLC (“ITP LLC”). ITP LLC holds a preferred equity investment in PTCR Holdco, LLC, a fully integrated retail platform operating company.

(5)ITP LLC has a 90% interest in PT Co-GP Fund, LLC (“Retail GP Fund”), which was formed to invest in retail properties through non-controlling general partner interests. ITP LLC holds non-controlling general partner interests through its interest in the Retail GP Fund ranging from 4.5% to 9.0% in thirteen retail properties.

(6)We hold a 50% ownership interest in a real estate operating company focused on the aggregation and asset management of manufactured housing through a joint venture, Homestead Communities, LLC (“Homestead”). Invesco U.S. Income Fund L.P, an affiliate of Invesco, owns the remaining 50% ownership interest. An unaffiliated third party has a promote incentive that could dilute our ownership percentage if certain performance milestones are exceeded.

Our share of the unconsolidated entities’ income (loss) for the three months ended March 31, 2025 and 2024 were as follows:

		Company’s Share of Unconsolidated Entities' Income (Loss)
in thousands		Three Months Ended March 31,
Entity	Ownership Percentage	2025		2024
Vida JV LLC	42.5%	$	(570)	$	(202)
San Simeon Preferred Equity	—%	814		773
PTCR Holdco, LLC	—%	249		268
Retail GP Fund	4.5% to 9.0%	(234)		238
Homestead Communities, LLC	50%	(186)		(75)
Total		$	73	$	1,002

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The following tables provide summarized balance sheets of our investments in unconsolidated entities:

	March 31, 2025						December 31, 2024
in thousands	Total assets		Total liabilities		Total equity		Total assets		Total liabilities		Total equity
Vida JV LLC	$	378,222	$	(229,218)	$	149,004	$	376,408	$	(225,791)	$	150,617
San Simeon Preferred Equity	131,447		(75,917)		55,530		132,593		(77,450)		55,143
Retail GP Fund	925,356		(488,736)		436,620		938,113		(608,707)		329,406
Other	4,652		(5,193)		(541)		4,316		(3,832)		484

The following tables provide summarized operating data of our investments in unconsolidated entities:

	Three Months Ended March 31, 2025				Three Months Ended March 31, 2024
in thousands	Revenue		Net income (loss)		Revenue		Net income (loss)
Vida JV LLC	$	9,371	$	(1,338)	$	9,761	$	(472)
San Simeon Preferred Equity	2,683		788		2,703		575
Retail GP Fund	17,235		(3,772)		9,671		47
Other	1,964		(1,054)		1,688		(1,079)
Total	$	31,253	$	(5,376)	$	23,823	$	(929)

Impairment

We did not record any impairment losses on our investments in unconsolidated entities for the three months ended March 31, 2025 and 2024.

5.Investment in Commercial Loan

The following table summarizes our investment in a commercial loan as of March 31, 2025 and December 31, 2024:

Current Principal Balance

Fair Value

in thousands

Origination Date

Loan Type

Interest Rate(1)

Periodic Payment Terms

March 31, 2025

December 31, 2024

March 31, 2025

December 31, 2024

Maturity Date

5805 N Jackson Gap Loan

1/20/2023

Mezzanine

12.48%

Interest only

$

12,245

$

13,007

$

12,168

$

12,996

2/9/2026

(1)Represents the interest rate as of March 31, 2025. The loan earns interest at Secured Overnight Financing Rate (“SOFR”) plus a spread.

During the three months ended March 31, 2025, the borrower of 5805 N Jackson Gap exercised its first option to extend the maturity date of the loan to February 9, 2026. In connection with the extension, the borrower repaid $0.8 million of the principal balance of the loan as required by the terms of the loan agreement.

We elected the fair value option for our commercial loan and, accordingly, there are no capitalized origination costs or fees associated with our loan.

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6.Investments in Real Estate-Related Securities

The following tables summarize our investments in real estate-related securities by asset type:

	March 31, 2025
in thousands	Principal Balance		Unamortized Premium (Discount)		Amortized Cost / Cost(1)		Unrealized Gain (Loss), Net		Fair Value		Period-end Weighted Average Yield		Weighted-Average Maturity Date
Non-agency CMBS	$	53,502	$	(1,566)	$	51,936	$	32	$	51,968	6.73	%	2/1/2028
Common stock of REITs	N/A		N/A		5,543		(258)		5,285		5.05	%	N/A
Total	$	53,502	$	(1,566)	$	57,479	$	(226)	$	57,253

	December 31, 2024
in thousands	Principal Balance		Unamortized Premium (Discount)		Amortized Cost / Cost(1)		Unrealized Gain (Loss), Net		Fair Value		Period-end Weighted Average Yield		Weighted-Average Maturity Date
Non-agency CMBS	$	52,377	$	(1,553)	$	50,824	$	49	$	50,872	6.81	%	1/14/2027
Common stock of REITs	N/A		N/A		5,543		56		5,600		4.41	%	N/A
Total	$	52,377	$	(1,553)	$	56,367	$	105	$	56,472

(1)For non-agency CMBS, the amount presented represents amortized cost. For common stock of REITs, the amount presented represents cost.

7.Intangibles

The gross carrying amount and accumulated amortization of our intangible assets and liabilities are:

	March 31, 2025
in thousands	Total Cost		Accumulated Amortization		Intangible Assets, net
Intangible assets, net:
In-place lease intangibles	$	45,510	$	(27,792)	$	17,718
Leasing commissions	6,183		(2,314)		3,869
Above-market lease intangibles	1,951		(586)		1,365
Total intangible assets, net	$	53,644	$	(30,692)	$	22,952
	Total Cost		Accumulated Amortization		Intangible Liabilities, net
Intangible liabilities, net:
Below-market lease intangibles	$	7,230	$	(1,924)	$	5,306
Total intangible liabilities, net	$	7,230	$	(1,924)	$	5,306

	December 31, 2024
in thousands	Total Cost		Accumulated Amortization		Intangible Assets, net
Intangible assets, net:
In-place lease intangibles	$	45,510	$	(26,021)	$	19,489
Leasing commissions	6,166		(2,121)		4,045
Above-market lease intangibles	1,951		(542)		1,409
Total intangible assets, net	$	53,627	$	(28,684)	$	24,943
	Total Cost		Accumulated Amortization		Intangible Liabilities, net
Intangible liabilities, net:
Below-market lease intangibles	$	7,230	$	(1,433)	$	5,797
Total intangible liabilities, net	$	7,230	$	(1,433)	$	5,797

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The estimated future amortization of our intangibles for each of the next five years and thereafter as of March 31, 2025 is:

in thousands	In-place Lease Intangibles		Leasing Commissions		Above-market Lease Intangibles		Below-market Lease Intangibles
2025 (remainder)	$	3,792	$	548	$	131	$	(1,080)
2026	3,722		750		175		(1,564)
2027	3,240		644		175		(1,406)
2028	1,765		512		175		(499)
2029	1,337		371		164		(378)
2030	1,120		289		94		(336)
Thereafter	2,742		755		451		(43)
	$	17,718	$	3,869	$	1,365	$	(5,306)

8.Other Assets

The following table summarizes the components of other assets:

in thousands	March 31, 2025		December 31, 2024
Note receivable(2)	$	7,629	$	—
Deferred rent	3,814		3,669
Capitalized tax abatement, net(1)	1,155		1,196
Derivative instruments	999		1,733
Prepaid expenses	772		791
Receivables, net	520		1,052
Deposits	329		339
Other	508		418
Total	$	15,726	$	9,198

(1)We obtained a tax abatement in conjunction with our purchase of the 3101 Agler property with an expiration date of December 31, 2031. We are amortizing the tax abatement over its remaining useful life as a component of property operating expenses in the condensed consolidated statements of operations. As of March 31, 2025, accumulated amortization of the capitalized tax abatement was $0.5 million.

(2)The note receivable is part of the total consideration from the unaffiliated third party buyer in the sale of the 40% indirect leasehold interest in The Carmin. It is due from the buyer within six months from the sale date, February 28, 2025. The buyer is not required to pay interest on the note receivable unless it is not paid back within six months. If the buyer does not pay timely, the loan shall bear interest at the lesser of 18%, or the highest rate permitted by the law, compounding monthly until paid. The interest payments will also apply retroactively from the date of the sale in lieu of the no interest period.

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9.Derivative Instruments

We are exposed to certain risks arising from both our business operations and economic conditions. We principally manage our exposures to a wide variety of business and operational risks through management of our core business activities. We manage economic risks, including interest rate risk, primarily by managing the amount, sources, and duration of our investments, borrowings, and the use of derivative financial instruments. Specifically, we use derivative financial instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Our derivative financial instruments are used to manage differences in the amount, timing, and duration of our known or expected cash payments principally related to our borrowings.

The following table summarizes changes to the notional amount of our derivative instruments in for the quarter ended March 31, 2025:

in thousands	Notional Amount as of December 31, 2024		Additions		Termination or Expiration		Notional Amount as of March 31, 2025
Interest rate caps	$	153,500	$	—	$	(118,500)	$	35,000
Interest rate swap	52,500		84,000		—		136,500
Total	$	206,000	$	84,000	$	(118,500)	$	171,500

The following tables summarize the notional amount and other information related to our interest rate caps and interest rate swap as of March 31, 2025 and December 31, 2024:

	March 31, 2025
in thousands	Number of Instruments	Notional Amount(1)		Fixed Amount		Fair Value		Weighted Average Strike Rate/Fixed Rate	Weighted Average Remaining Term In Years
Assets(2)
Interest rate caps	1	$	35,000	$	300	$	15	4.20%	0.35
Interest rate swap	1	52,500		N/A		984		2.73%	2.08
Total Assets	2	$	87,500	$	300	$	999
Liabilities(3)
Interest rate swap	1	$	84,000	N/A		$	258	3.85%	1.93
Total Liabilities	1	$	84,000	$	—	$	258

	December 31, 2024
in thousands	Number of Instruments	Notional Amount(1)		Fixed Amount		Fair Value		Weighted Average Strike Rate/Fixed Rate	Weighted Average Remaining Term In Years
Assets(2)
Interest rate caps	3	$	153,500	$	2,108	$	237	3.08%	0.22
Interest rate swap	1	52,500		N/A		1,496		2.73%	2.32
Total	4	$	206,000	$	2,108	$	1,733

(1)The notional amount represents the amount of the mortgage note borrowings that we are hedging. It does not represent our exposure to credit, interest rate or market risks.

(2)Derivative Assets are included as a component of Other Assets on our condensed consolidated balance sheets.

(3)Derivative Liabilities are included as a component of Accounts Payable, Accrued Expenses and Other Liabilities on our condensed consolidated balance sheets.

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The following tables summarize the effect of interest rate caps and interest rate swaps reported in gain (loss) on derivative instruments, net on the condensed consolidated statements of operations for the three months ended March 31, 2025 and 2024:

	Three Months Ended March 31, 2025
in thousands	Realized gain (loss) on derivative instruments, net		Contractual net interest income (expense)		Unrealized gain (loss), net		Gain (loss) on derivative instruments, net
Interest rate caps	$	—	$	17	$	(272)	$	(255)
Interest rate swap	—		220		(510)		(290)
Total	$	—	$	237	$	(782)	$	(545)

	Three Months Ended March 31, 2024
in thousands	Realized gain (loss) on derivative instruments, net		Contractual net interest income (expense)		Unrealized gain (loss), net		Gain (loss) on derivative instruments, net
Interest rate caps	$	—	$	1,044	$	(359)	$	685
Interest rate swap	—		347		691		1,038
Total	$	—	$	1,391	$	332	$	1,723

10.Borrowings

Revolving Credit Facility

INREIT OP has a Revolving Credit Facility with Bank of America, N.A. (“Bank of America”). The interest rate and spread terms are outlined below. The aggregate commitment is $100.0 million with an ability to request an increase up to $150.0 million in aggregate commitments. The maturity date is September 5, 2025.

Borrowings under the Revolving Credit Facility carry interest at a rate equal to (i) SOFR, (ii) SOFR with an interest period of one, three or six-months, or (iii) a Base Rate, where the base rate is the highest of (a) federal funds rate plus 0.5%, (b) the rate of interest as publicly announced by Bank of America as its “prime rate”, (c) SOFR with an interest period of one month plus 1.0%, or (d) 1.0%, in each case, plus an applicable margin that is based on our leverage ratio.

As of March 31, 2025 and December 31, 2024, the Company did not have an outstanding principal balance on its revolving credit facility. An unused commitment fee of 0.25% accrues on the daily amount by which the aggregate commitments exceed the total outstanding balance of the Revolving Credit Facility. The weighted-average interest rates for the three months ended March 31, 2025 and 2024, were 6.12% and 7.11%, respectively. As of March 31, 2025, the borrowing capacity on the Revolving Credit Facility was $64.3 million. The borrowing capacity is less than the difference between the current facility capacity of $100.0 million and the current principal outstanding balance because the calculation of borrowing capacity is limited by the aggregate fair value and cash flows of our unencumbered properties.

As of March 31, 2025, we were in compliance with all loan covenants in our revolving credit facility agreement.

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Mortgage Notes Payable, Net

The following table summarizes certain characteristics of our mortgage notes that are secured by the Company’s properties:

in thousands						Principal Balance Outstanding
Indebtedness	Interest Rate(1)	Initial Maturity Date	Extended Maturity Date(5)	Maximum Principal Amount		March 31, 2025		December 31, 2024
The Carmin	S + 1.75%(2)	3/5/2026	3/5/2032	$	84,000	$	84,000	$	65,500
Cortlandt Crossing	3.13%	3/1/2027	N/A	$	39,660	39,660		39,660
Everly Roseland	S + 1.45%(3)	4/28/2027	4/28/2029	$	113,500	111,441		111,441
Midwest Industrial Portfolio	4.44% and S + applicable margin(4)	7/5/2027	N/A	$	70,000	70,000		70,000
Total mortgages payable						305,101		286,601
Deferred financing costs, net						(1,726)		(1,335)
Mortgage notes payable, net						$	303,375	$	285,266

(1)The term “S” refers to the relevant floating benchmark rate, SOFR.

(2)The weighted-average interest rate for the three months ended March 31, 2025 and 2024 was 6.15% and 7.09%, respectively.

(3)The weighted-average interest rate for the three months ended March 31, 2025 and 2024 was 6.14% and 6.79%, respectively,

(4)The mortgage note secured by Meridian Business 940, Capital Park 2919, 3101 Agler and Earth City 13330 (collectively the “Midwest Industrial Portfolio”) bears interest at two rates. Of the $70.0 million principal balance, $35.0 million bears interest at a fixed rate of 4.44%, and $35.0 million bears interest at a floating rate of the greater of (a) 2.20% or (b) the sum of 1.70% plus SOFR. The weighted-average interest rate of the combined $70.0 million principal balance for the three months ended March 31, 2025 and 2024 was 5.41% and 5.74%, respectively. Subsequent to March 31, 2025, we repaid the mortgage note secured by these properties in connection with our buyout of the joint venture partner for the Meridian Business 940, Capital Park 2919 and 3101 Agler properties. Refer to Note 22 — “Subsequent Events” for further details on the transaction.

(5)We may elect to extend the maturity date upon meeting certain conditions, which may include payment of a non-refundable extension fee.

On February 28, 2025, we sold a 40% indirect leasehold interest in The Carmin student housing property and refinanced the mortgage note secured by the property. Proceeds from the new secured mortgage note were partially used to repay the existing mortgage. We incurred debt extinguishment charges of approximately $34,000 in connection with the refinancing of the mortgage note.

As of March 31, 2025, we were in compliance with all loan covenants in our mortgage note agreements.

Financing Obligation, Net

In connection with the sale and leaseback of The Carmin property, as of March 31, 2025, we hold a financing obligation on our condensed consolidated balance sheets of $54.0 million, net of debt issuance costs.

The following table presents the future principal payments due under our outstanding borrowings as of March 31, 2025:

in thousands
Year	Revolving Credit Facility		Mortgages Payable(1)		Financing Obligation		Total
2025 (remaining)	$	—	$	—	$	7	$	7
2026	—		—		12		12
2027	—		109,660		15		109,675
2028	—		—		18		18
2029	—		111,441		21		111,462
2030	—		—		25		25
Thereafter	—		84,000		36,245		120,245
Total	$	—	$	305,101	$	36,343	$	341,444

(1) Assumes all extension options are exercised for mortgage note agreements that may be extended at our option, subject to compliance with certain financial and administrative covenants.

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11.Accounts Payable, Accrued Expenses and Other Liabilities

The following table summarizes the components of accounts payable, accrued expenses and other liabilities:

in thousands	March 31, 2025		December 31, 2024
Common stock repurchases	$	5,363	$	1,308
Intangible liabilities, net	5,306		5,797
Prepaid rental income	1,325		1,153
Real estate taxes payable	1,922		3,066
Tenant security deposits	1,671		1,651
Subscriptions received in advance(1)	1,345		835
Accrued interest expense	1,338		1,300
Distributions payable	652		633
Accounts payable and accrued expenses	610		315
Derivative instruments	258		—
Total	$	19,790	$	16,058

(1)Represents subscriptions received by our transfer agent prior to the date the subscriptions are effective.

12.Redeemable Equity Instruments

Class N Redeemable Common Stock

The following table details the movement in our Class N redeemable common stock activity with MassMutual for the three months ended March 31, 2025 and 2024:

	Total
Balance at December 31, 2024	14,466,761
Distribution reinvestment	182,884
Balance at March 31, 2025	14,649,645
Balance at December 31, 2023	13,783,204
Distribution reinvestment	164,658
Balance at March 31, 2024	13,947,862

For the three months ended March 31, 2025 and 2024, we did not record any adjustments to the value of the Class N shares held by MassMutual.

MassMutual committed to purchase $400.0 million of Class N common stock in our Class N Private Offering and fully met its commitment as of December 31, 2022.

Through June 30, 2025, we may choose to repurchase Class N shares from MassMutual on a monthly basis at the then current Class N transaction price in an amount with an aggregate repurchase price no greater than (1) the aggregate purchase price paid by MassMutual for Class N shares less (2) $200.0 million less (3) the aggregate repurchase price paid to MassMutual by us. In any month, however, MassMutual may require us to make or elect to forego the next monthly repurchase. Under the terms of MassMutual’s subscription agreements, through June 30, 2025, we may require MassMutual to purchase additional Class N shares in an amount equal to the aggregate purchase price paid by MassMutual for Class N shares that were subsequently repurchased by us.

Beginning January 1, 2026 and continuing until we have repurchased $200.0 million of MassMutual shares, we are required to repurchase MassMutual shares on a monthly basis, subject to thresholds based on monthly net offering proceeds. In any month, MassMutual may choose to waive our obligation to repurchase shares. We are required to limit repurchases to ensure that the aggregate NAV of MassMutual shares is at least $50.0 million.

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Beginning January 1, 2026, MassMutual holds the right to request that we repurchase MassMutual shares on a monthly basis, subject to thresholds based on monthly net offering proceeds and the Company’s NAV. This right to request that we repurchase MassMutual shares is in addition to the requirement to repurchase MassMutual shares described in the preceding paragraph. We will not be required to repurchase (1) in any calendar year, more than $150.0 million of MassMutual shares or (2) in any calendar month, MassMutual shares with an aggregate repurchase price equal to more than 100% of the net proceeds to us from the sale of shares of our common stock during such month.

Exchange Rights and Registration Agreement

We have entered into an exchange rights and registration agreement with MassMutual (the “Registration Rights Agreement”). After September 28, 2025, MassMutual may require us to exchange all or a portion of its Class N shares for any class of shares of our common stock being sold in the Primary Offering and file and maintain an effective registration statement with the SEC (for no longer than three years) registering the offer and sale of the new shares issued in the exchange. MassMutual's rights under the Registration Rights Agreement will terminate when its shares of our common stock have an aggregate NAV of less than $20.0 million.

Redeemable Non-controlling Interest in INREIT OP

In connection with its performance participation interest, Invesco REIT Special Limited Partner L.L.C. (the “Special Limited Partner”) holds Class E units in INREIT OP. See Note 18 — “Related Party Transactions” for further details of the Special Limited Partner’s performance participation interest. Because the Special Limited Partner has the ability to redeem its Class E units for cash at its sole discretion, we have classified these Class E units as redeemable non-controlling interest in INREIT OP on our condensed consolidated balance sheets. For the three months ended March 31, 2025, we did not record an adjustment to redeemable non-controlling interest in INREIT OP or additional paid-in capital to adjust the value of the Class E units in INREIT OP held by the Special Limited Partner to our March 31, 2025 NAV per Class E unit in INREIT OP. For the three months ended March 31, 2024, we recorded an increase to redeemable non-controlling interest in INREIT OP and a decrease to additional paid-in capital of approximately $54,000 to adjust the value of the Class E units in INREIT OP held by the Special Limited Partner to our March 31, 2024 NAV per Class E unit in INREIT OP.

The following table details the non-controlling interest activity related to the Special Limited Partner:

	Three Months Ended March 31,
in thousands	2025		2024
Net income (loss) allocated	$	18	$	(39)
Distributions	$	22	$	71
Adjustment to carrying value	$	—	$	54

As of March 31, 2025 and December 31, 2024, distributions payable to the Special Limited Partner were approximately $6,000 and $10,000, respectively.

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13.Equity

Preferred Stock

As of March 31, 2025 and December 31, 2024, we had zero shares of Series A Preferred Stock issued and outstanding, respectively. We have 100,000,000 shares of Series A Preferred Stock authorized with a par value of $0.01 per share.

Common Stock

The following tables detail the movement in our outstanding shares of common stock for the three months ended March 31, 2025 and 2024:

	Three Months Ended March 31, 2025
	Class T Shares	Class S Shares	Class D Shares	Class I Shares	Class E Shares	Class N Shares	Total
Balance at December 31, 2024	630,722	726,730	877,190	4,675,460	1,228,798	14,466,761	22,605,661
Issuance of common stock	1,910	55,399	7,134	90,685	20,327	—	175,455
Exchange of common stock	—	—	(8,680)	8,636	—	—	(44)
Common stock repurchased	(2,607)	(3,599)	(3,778)	(326,951)	(18,180)	—	(355,115)
Distribution reinvestment	2,206	3,967	4,203	8,300	2,672	182,884	204,232
Balance at March 31, 2025	632,231	782,497	876,069	4,456,130	1,233,617	14,649,645	22,630,189

	Three Months Ended March 31, 2024
	Class T Shares	Class S Shares	Class D Shares	Class I Shares	Class E Shares	Class N Shares	Total
Balance at December 31, 2023	613,405	528,268	832,598	4,332,740	1,190,589	13,783,204	21,280,804
Issuance of common stock	7,631	115,782	32,613	371,514	15,742	—	543,282
Common stock repurchased	(226)	—	(262)	(242,673)	(15,463)	—	(258,624)
Distribution reinvestment	1,985	1,615	3,677	5,690	2,506	164,658	180,131
Balance at March 31, 2024	622,795	645,665	868,626	4,467,271	1,193,374	13,947,862	21,745,593

Distributions

We generally intend to distribute substantially all of our taxable income to our stockholders each year to comply with the REIT provisions of the Internal Revenue Code. Taxable income does not necessarily equal net income as calculated in accordance with GAAP.

For the three months ended March 31, 2025 and 2024, we declared distributions of $9.4 million and $9.0 million, respectively. We accrued $2.5 million for distributions payable to related parties as a component of due to affiliates in our condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024, respectively. Additionally, as of March 31, 2025 and December 31, 2024, we accrued $0.7 million and $0.6 million, respectively, for distributions payable to third parties as a component of accounts payable, accrued expenses and other liabilities in our condensed consolidated balance sheets.

The following tables detail the aggregate distributions declared per share for each applicable class of stock for the three months ended March 31, 2025 and 2024:

	Three Months Ended March 31, 2025
	Series A Preferred Stock		Class T Common Stock		Class S Common Stock		Class D Common Stock		Class I Common Stock		Class E Common Stock		Class N Common Stock
Aggregate distributions declared per share	$	—	$	0.4162	$	0.4162	$	0.4162	$	0.4162	$	0.4162	$	0.4162
Stockholder servicing fee per share(1)	—		(0.0246)		(0.0296)		(0.0099)		—		—		—
Net distributions declared per share	$	—	$	0.3916	$	0.3866	$	0.4063	$	0.4162	$	0.4162	$	0.4162

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	Three Months Ended March 31, 2024
	Series A Preferred Stock		Class T Common Stock		Class S Common Stock		Class D Common Stock		Class I Common Stock		Class E Common Stock		Class N Common Stock
Aggregate distributions declared per share	$	—	$	0.4182	$	0.4182	$	0.4182	$	0.4182	$	0.4182	$	0.4182
Stockholder servicing fee per share(1)	—		(0.0259)		(0.0229)		(0.0104)		—		—		—
Net distributions declared per share	$	—	$	0.3923	$	0.3953	$	0.4078	$	0.4182	$	0.4182	$	0.4182

(1)See Note 18 — “Related Party Transactions” for a discussion of our stockholder servicing fee.

Distribution Reinvestment Plan

We have adopted a distribution reinvestment plan whereby stockholders will have their cash distributions automatically reinvested in additional shares of common stock unless they elect to receive their distributions in cash. The per share purchase price for shares purchased (including fractional shares) under the distribution reinvestment plan is equal to the transaction price at the time the distribution is payable.

Share Repurchase Plan

We have adopted a share repurchase plan. On a monthly basis, our stockholders may request that we repurchase all or any portion of their shares. We may choose, in our discretion, to repurchase all, some or none of the shares that have been requested to be repurchased at the end of any month, subject to limitations in the share repurchase plan. For the three months ended March 31, 2025 and 2024, we repurchased 355,116 shares of common stock for $9.5 million and 250,163 shares of common stock for $7.1 million, respectively, and fulfilled all repurchase requests that were made.

14.Earnings (Loss) Per Share

The following table summarizes our earnings (loss) per share for the three months ended March 31, 2025 and 2024:

	For the Three Months Ended March 31,
in thousands, except per share amount	2025		2024
Net income (loss) available to common stockholders	$	(2,347)	$	896
Weighted average common shares outstanding	22,732,182		21,631,918
Effect of dilutive restricted stock awards	—		451
Diluted weighted average common shares outstanding	22,732,182		21,631,467
Earnings (loss) per share:
Basic	$	(0.10)	$	0.04
Diluted	$	(0.10)	$	0.04

15.Fair Value Measurements

A three-level valuation hierarchy exists for disclosure of fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions. The three levels are defined as follows:

Level 1 — quoted prices are available in active markets for identical investments as of the measurement date. We do not adjust the quoted price for these investments.

Level 2 — quoted prices are available in markets that are not active or model inputs are based on inputs that are either directly or indirectly observable as of the measurement date.

Level 3 — pricing inputs are unobservable and include instances where there is minimal, if any, market activity for the investment. These inputs require significant judgment or estimation by management or third parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had a ready market for these investments existed.

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Certain investments that are measured at fair value using NAV per share as a practical expedient are not required to be categorized in the fair value hierarchy tables. The total fair value of these investments is included in the tables below to permit reconciliation of the fair value hierarchy to amounts presented on our condensed consolidated balance sheets. As of March 31, 2025 and December 31, 2024, none of these investments were expected to be sold at a value materially different than NAV.

Valuation of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table details our financial instruments measured at fair value on a recurring basis:

	March 31, 2025
	Fair Value Measurements Using:
in thousands	Level 1		Level 2		Level 3		NAV as a Practical Expedient		Total at Fair Value
Assets:
Investments in real estate-related securities	$	5,285	$	51,968	$	—	$	—	$	57,253
Investment in commercial loan	—		—		12,168		—		12,168
Investment in affiliated fund	—		—		—		20,481		20,481
Interest rate caps	—		15		—		—		15
Interest rate swap	—		984		—		—		984
Total Assets	$	5,285	$	52,967	$	12,168	$	20,481	$	90,901
Liabilities:
Interest rate swap	$	—	$	258	$	—	$	—	$	258
Total Liabilities	$	—	$	258	$	—	$	—	$	258

	December 31, 2024
	Fair Value Measurements Using:
in thousands	Level 1		Level 2		Level 3		NAV as a Practical Expedient		Total at Fair Value
Assets:
Investments in real estate-related securities	$	5,600	$	50,872	$	—	$	—	$	56,472
Investment in commercial loan	—		—		12,996		—		12,996
Investment in affiliated fund	—		—		—		21,342		21,342
Interest rate caps	—		237		—		—		237
Interest rate swap	—		1,496		—		—		1,496
Total Assets	$	5,600	$	52,605	$	12,996	$	21,342	$	92,543

The following table details our investment in commercial loan measured at fair value on a recurring basis using Level 3 inputs:

in thousands	Investment in Commercial Loan
Balance as of December 31, 2024	$	12,996
Unrealized gain (loss)	(66)
Loan repayment	(762)
Balance as of March 31, 2025	$	12,168

The following table shows the significant unobservable inputs related to the Level 3 fair value measurement of our investment in commercial loan as of March 31, 2025.

				Weighted Average Rate
Type	Asset Class	Valuation Technique	Unobservable Input	March 31, 2025	December 31, 2024
Commercial loan	Industrial	Discounted cash flow	Discount rate	8.75%	8.75%

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The discount rate above is subject to change based on changes in economic and market conditions both current and anticipated, in addition to changes in use or timing of exit if applicable. These rates are also based on the location, type and nature of each property and related industry publications. Changes in discount rates result in increases or decreases in the fair values of these investments. The discount rates encompass, among other things, uncertainties in the valuation models with respect to terminal capitalization rates and the amount and timing of cash flows. It is not possible for us to predict the effect of future economic or market conditions based on our estimated fair values.

Valuation of Liabilities Not Carried at Fair Value

The following table presents the principal balance and estimated fair value of our liabilities that are not carried at fair value on the condensed consolidated balance sheets:

	March 31, 2025				December 31, 2024
in thousands	Principal Balance		Estimated Fair Value		Principal Balance		Estimated Fair Value
Mortgage notes payable	$	305,101	$	302,684	$	286,601	$	283,937
Total	$	305,101	$	302,684	$	286,601	$	283,937

Valuation of Assets Measured at Fair Value on a Nonrecurring Basis

Our real estate investments are not measured at fair value on an ongoing basis but are subject to fair value adjustments when there is evidence of impairment. We review our real estate investments for impairment each quarter or when there is an event or change in circumstances that could indicate the carrying amount of these investments may not be recoverable.

During the three months ended March 31, 2025 and 2024, we did not recognize any impairment losses on our real estate investments.

16.Variable Interest Entities

Consolidated Variable Interest Entities

Included within our condensed consolidated financial statements as of March 31, 2025 and December 31, 2024 are two consolidated entities and one consolidated entity, respectively, that are VIEs for which we are the primary beneficiary. These entities were established to own and operate real estate property. Our involvement with these entities is through majority ownership and management of the property. The entities were deemed VIEs primarily because the unrelated investors do not have substantive kick-out rights to remove the managing partner by a vote of a simple majority or less and they do not have substantive participating rights. We determined that we are the primary beneficiary as (1) we have the power to direct activities of the VIEs that most significantly impact the VIEs economic performance and (2) we have the obligation to absorb losses or the right to receive benefits of the VIEs that could potentially be significant to the VIEs through our variable interests.

The majority of the operations of these VIEs are funded with cash flows generated from the properties. We have not provided financial support to these VIEs that we were not previously contractually required to provide, which consists primarily of funding expenses that are deemed necessary to continue to operate the entities and any operating cash shortfalls that the entities may experience.

Included within our condensed consolidated financial statements as of March 31, 2025 and December 31, 2024 are two consolidated entities that are VIEs that were established in connection with our DST Program. See additional information on the DST Program in Note 17 — “DST Program.” Our involvement with these entities is through our majority ownership and master lease agreements between the VIEs and the Company. These entities are deemed VIEs primarily because any equity ownership in the entities does not provide the equity owners voting rights. We determined that we are the primary beneficiary as (1) the VIEs have limited ongoing significant activities and the Company is responsible for the key decisions of the VIEs that were made at formation and has the power to direct the remaining activities of the VIEs such as the ability to exercise a fair market value purchase option and (2) the Company has the obligation to absorb losses or the right to receive benefits of the VIEs that could potentially be significant to the VIEs through the Company’s variable interests.

The majority of the operations of the VIE are funded with cash flows from the master lease between the VIE and a wholly-owned subsidiary of the Operating Partnership. We have not provided any financial support to the VIE other than the interests described in Note 17 — “DST Program.”

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The table below summarizes the consolidated VIEs and the classification of the restricted assets and non-recourse VIE liabilities on our condensed consolidated balance sheets:

in thousands	March 31, 2025		December 31, 2024
Total number of consolidated VIEs	4		3
Restricted Assets:
Investments in real estate, net	$	303,190	$	155,313
Cash and cash equivalents	3,688		2,254
Intangible assets, net	6,661		7,025
Other assets	1,065		1,108
Total Restricted Assets	$	314,604	$	165,700
VIE Non-Recourse Liabilities:
Mortgages payable, net	$	83,458	$	—
Financing obligation, net	53,989		—
Accounts payable, accrued expenses, and other liabilities	5,397		4,147
Total VIE Non-Recourse Liabilities:	$	142,844	$	4,147

Unconsolidated Variable Interest Entities

The table below summarizes the unconsolidated VIEs on our condensed consolidated balance sheets as of March 31, 2025:

in thousands	March 31, 2025
Investments in Unconsolidated Entities	Carrying Amount		Maximum Risk of Loss		Ownership Percentage(1)
San Simeon Preferred Equity	$	29,168	$	24,400	—	%
Retail GP Fund	18,497		21,559		4.5% to 9.0%
Homestead	88		2,700		50.0%
Total Unconsolidated Variable Interest Entities	$	47,753	$	48,659

(1)Ownership percentage represents our entitlement to residual distributions after payments of priority returns, where applicable. Preferred equity investment ownership percentages are not presented.

We have concluded that these investments are VIEs primarily because the equity investors at risk lack the ability to make decisions that significantly impact the economic performance of the entities. We have determined that we are not the primary beneficiary because we either do not have the power or share the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance. We have not provided financial support to the VIEs that we were not previously contractually required to provide.

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17.DST Program

In February 2023, we, through our Operating Partnership, initiated the DST Program to issue and sell up to a maximum aggregate offering amount of $3.0 billion of beneficial interests in specific DSTs holding the DST Properties. Under the DST Program, each DST Property may be sourced from our real properties or from third parties, will be held in a separate DST, and will be leased by a wholly-owned subsidiary of the Operating Partnership in accordance with a master lease agreement. Each master lease agreement is guaranteed by the Operating Partnership, which has a fair market value purchase option (the “FMV Option”) giving it the right, but not the obligation, to acquire the interests in the applicable DST from the investors any time after two years from the closing of the applicable DST offering in exchange for units of the Operating Partnership (“OP Units”) or cash, at our sole discretion. After a one-year holding period, investors who receive OP Units under the FMV Option generally have the right to cause the Operating Partnership to redeem all or a portion of their OP Units for, at our sole discretion, shares of common stock, cash, or a combination of both.

The sale of beneficial interests in the DST are accounted for as sales of equity interests. As of March 31, 2025 and December 31, 2024, we have raised $105.3 million and $46.5 million, respectively, related to the DST Program which is included in non-controlling interests on our condensed consolidated balance sheets.

As of March 31, 2025, the following investments are included in our DST Program:

13034 Excelsior	5201 Industry
Bend Self-Storage Portfolio	Clarksville Self-Storage Portfolio
River Road Storage	South Loop Storage
University Parkway Storage

Under the master lease, we are responsible for subleasing the DST Properties to tenants and for covering all costs associated with operating the underlying DST Properties. The rental revenues and property operating expenses associated with the underlying property are included in the respective line items on our condensed consolidated statements of operations. The net amount we receive from the underlying DST Properties may be more or less than the amount we pay to the investors in the relevant DST and could fluctuate over time.

18.Related Party Transactions

Due to Affiliates

The following table details the components of due to affiliates:

in thousands	March 31, 2025		December 31, 2024
Advanced organization and offering expenses	$	6,789	$	6,789
Advanced operating expenses	5,386		5,386
Distributions payable	2,490		2,511
Accrued reimbursable operating expenses(1)	3,028		4,898
Accrued reimbursable organization and offering expenses(1)	2,272		1,403
Accrued stockholder servicing fee	2,585		2,506
Accrued management fee	427		375
Accrued affiliate service provider expenses	—		92
Total	$	22,977	$	23,960

(1)We reimburse the Adviser on a quarterly basis for all accrued operating expenses incurred subsequent to December 31, 2021 and accrued organization and offering expenses incurred subsequent to December 31, 2022. Please refer to the ‘Accrued Reimbursable Operating, Organizational and Offering Expenses’ section below for further details.

Management Fee and Performance Participation Interest

We are externally managed by the Adviser, a registered investment adviser and an indirect, wholly-owned subsidiary of Invesco. The Adviser is at all times subject to the supervision and oversight of our board of directors and has only such functions and authority as we delegate to it.

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We pay the Adviser a management fee equal to 1.0% of NAV for Class T shares, Class S shares, Class D shares and Class I shares per annum calculated and payable monthly. In addition, we will pay the Adviser 1.0% per annum payable monthly of the total consideration received by us for selling interests in the DST Program to third-party investors, which will be allocated among all classes of common stock based on each class’s relative percentage of aggregate NAV. We will also pay the Adviser a management fee equal to 1.0% of NAV for INREIT OP Class T, Class S, Class D and Class I units not held by us or the Adviser per annum. We will not pay a management fee on the Class E shares or INREIT OP Class E units. Commencing on January 16, 2030, we will pay the Adviser a management fee equal to 1.0% of NAV for Class N shares and INREIT OP Class N units not held by us or the Adviser per annum. The value of our investment in Invesco Commercial Mortgage Income - U.S. Fund, L.P. (“CMI”), an affiliate of Invesco managed by our Adviser, is excluded for purposes of calculating the management fee. The Adviser may elect to receive its management fee in cash, shares of our Class I common stock, shares of our Class E common stock, INREIT OP Class I units or INREIT OP Class E units. During the three months ended March 31, 2025 and 2024, we incurred management fees of $0.6 million and $0.5 million, respectively. The unpaid portion of these fees are accrued as a component of due to affiliates on our condensed consolidated balance sheets. As of March 31, 2025 and December 31, 2024, we accrued $0.4 million of management fees. During the three months ended March 31, 2025 and 2024, we issued 19,446 and 15,574 Class E shares, respectively, as payment for the management fees earned. The shares issued to the Adviser for payment of the management fee were issued at the applicable NAV per share at the end of each month for which the fee was earned. During the three months ended March 31, 2025 and 2024, the Adviser submitted 13,853 and 8,461 Class E shares for repurchase by the Company, for a total repurchase amount of $0.4 million and $0.3 million, respectively.

The Special Limited Partner holds a performance participation interest in INREIT OP that entitles it to receive an allocation from INREIT OP equal to (1) with respect to all INREIT OP units other than Class N units and Class E units, 12.5% of the Total Return, subject to a 6.0% Hurdle Amount and a High Water Mark, with a Catch-Up (each such term as defined in the limited partnership agreement of INREIT OP), and (2) with respect to Class N units, 10.0% of the Class N Total Return, subject to a 7.0% Class N Hurdle Amount and a Class N High Water Mark, with a Catch-Up (each such term as defined in the limited partnership agreement of INREIT OP). The Special Limited Partner may elect to receive payment of the performance participation interest in cash, INREIT OP Class I units or INREIT OP Class E units. For the three months ended March 31, 2025 and 2024, the Special Limited Partner did not earn a performance participation interest. During the three months ended March 31, 2025 and 2024, the Special Limited Partner submitted 30,516 and 28,982 Class E units for repurchase by the Company, for a total repurchase amount of $0.9 million and $0.9 million, respectively.

Reimbursement of Expenses Incurred by Adviser

During the three months ended March 31, 2025 and 2024, we incurred $0.4 million and $0.3 million, respectively, for expenses incurred by the Adviser on our behalf.

Stockholder Servicing Fees and Other Selling Commissions

Invesco Distributors, Inc. (“the Dealer Manager”) is a registered broker-dealer affiliated with the Adviser and is entitled to receive selling commissions, dealer manager fees and stockholder servicing fees for Class T, Class S and Class D shares sold in the Offering. The Dealer Manager reallows (pays) all or a portion of the stockholder servicing fees to participating broker-dealers and servicing broker-dealers for ongoing stockholder services performed by such broker-dealers and will waive stockholder servicing fees to the extent a broker-dealer is not eligible to receive it for failure to provide such services.

We accrue the full amount of stockholder servicing fees payable as an offering cost at the time each Class T, Class S and Class D share is sold during the Primary Offering. As of March 31, 2025 and December 31, 2024, we have paid $0.1 million and $0.3 million, respectively, of commissions, dealer manager fees and stockholder servicing fees with respect to the outstanding Class T, Class S and Class D shares.

The following table presents the upfront selling commissions and dealer manager fees for each class of shares sold in the Offering, and the stockholder servicing fee per annum based on the aggregate outstanding NAV:

	Class T Shares	Class S Shares	Class D Shares	Class I Shares	Class E Shares
Maximum Upfront Selling Commissions (% of Transaction Price)	up to 3.0%(1)	up to 3.5%	up to 1.5%	—	—
Maximum Upfront Dealer Manager Fees (% of Transaction Price)	0.5%(1)	—	—	—	—
Stockholder Servicing Fee (% of NAV)	0.85%(2)	0.85%	0.25%	—	—

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(1)For Class T shares sold in the Offering (other than as part of our distribution reinvestment plan), investors will pay upfront selling commissions of up to 3.0% of the transaction price and upfront dealer manager fees of 0.5% of the transaction price, however such amounts may vary at certain participating broker-dealers, provided that the sum will not exceed 3.5% of the transaction price.

(2)Consists of a representative stockholder servicing fee (0.65% per annum) and a dealer stockholder servicing fee (0.20% per annum).

We will cease paying the stockholder servicing fee with respect to any Class T share, Class S share or Class D share held in a stockholder’s account at the end of the month in which the Dealer Manager, in conjunction with the transfer agent, determines that total upfront selling commissions, dealer manager fees and stockholder servicing fees paid with respect to the shares held by such stockholder within such account would exceed, in the aggregate, 8.75% (or, in the case of Class T shares sold through certain participating broker-dealers, a lower limit as set forth in the applicable agreement between the Dealer Manager and a participating broker-dealer at the time such Class T shares were issued) of the gross proceeds from the sale of such shares (including the gross proceeds of any shares issued under our distribution reinvestment plan upon the reinvestment of distributions paid with respect thereto or with respect to any shares issued under our distribution reinvestment plan directly or indirectly attributable to such shares). At the end of such month, each such Class T share, Class S share or Class D share will convert into a number of Class I shares (including any fractional shares), with an equivalent aggregate NAV as such share.

DST Program Fees and Expenses

Invesco Distributors, Inc. serves as the dealer manager for the DST Program. Invesco Real Estate Exchange LLC, an indirect wholly owned subsidiary of the Company (the “DST Sponsor”), pays the dealer manager upfront selling commissions of up to 5.0% of Interests sold, upfront dealer manager fees of up to 1.0% of Interests sold and placement fees of up to 1.0% of the Interests sold, some or all of which may be waived or reallowed to participating broker-dealers. For the three months ended March 31, 2025 and 2024, we incurred upfront selling commissions, upfront dealer manager and placement fees of $0.7 million and approximately $32,000, respectively. Invesco DST Manager LLC, which is indirectly owned by the Adviser and is an affiliate of the Sponsor, serves as the manager for the DST Program and receives a management fee equal to 0.15% per annum of Interests sold. The Dealer Manager receives an investor servicing fee equal to 0.25% per annum of Interests sold. For the three months ended March 31, 2025 and 2024, the expense incurred for management and investor servicing fees was $0.1 million and approximately $10,000, respectively.

For the first DST Offering, an affiliate of Invesco received an organizational and offering expense reimbursement of 0.5% of Interests sold. We did not incur any organizational and offering expense reimbursement fees for the three months ended March 31, 2025. For the three months ended March 31, 2024, we incurred organizational and offering expense reimbursement fees of approximately $28,000. For the second DST Offering, our Operating Partnership receives an organizational and offering expense reimbursement of 0.5% of Interests sold. For the three months ended March 31, 2025, we recorded income from organizational and offering expense reimbursement of $0.3 million, recorded as a component of other revenue on our condensed consolidated statement of operations. We did not record any income from organizational and offering expense reimbursement for the three months ended March 31, 2024.

Our Operating Partnership receives a closing cost reimbursement equal to 0.5% of Interests sold. For the three months ended March 31, 2025 and 2024, we recorded income from closing cost reimbursements of $0.3 million and approximately $28,000, respectively, recorded as a component of other revenue on our condensed consolidated statement of operations.

See additional information on the DST Program in Note 17 — “DST Program.”

Related Party Share Ownership

The table below shows the amount of shares and the total purchase price of those shares held by affiliates as of March 31, 2025 and 2024, excluding the Class E Shares issued for payment of the management fee held by the Adviser as described above.

	March 31, 2025
in thousands, except share amounts	Class T Shares	Class S Shares	Class D Shares	Class I Shares	Class E Shares	Class N Shares	Total Purchase Price
MassMutual	—	—	—	—	—	14,649,645	$	431,302
Invesco Global Property Plus Fund	—	—	—	490,928	834,416	—	38,500
Invesco Realty, Inc.	351,856	351,856	351,856	311,283	—	—	39,016
Members of our board of directors and employees of our Adviser(1)	—	—	—	—	126,091	—	3,493
	351,856	351,856	351,856	802,211	960,507	14,649,645	$	512,311

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	December 31, 2024
in thousands, except share amounts	Class T Shares	Class S Shares	Class D Shares	Class I Shares	Class E Shares	Class N Shares	Total Purchase Price
MassMutual	—	—	—	—	—	14,466,761	$	426,204
Invesco Global Property Plus Fund	—	—	—	790,720	834,415	—	46,500
Invesco Realty, Inc.	351,856	351,856	351,856	311,283	—	—	39,016
Members of our board of directors and employees of our Adviser(1)	—	—	—	—	125,600	—	3,479
	351,856	351,856	351,856	1,102,003	960,015	14,466,761	$	515,199

(1)Members of our board of directors and employees of our Adviser are made up of officers of the Company or employees who serve on the Company’s steering committee.

Advanced Operating Expenses

The Adviser advanced all of our operating expenses on our behalf through December 31, 2021. Beginning January 2022 and ceasing September 2022, we began ratably reimbursing the Adviser over 60 months for the operating expenses incurred prior to December 31, 2021 and will recommence reimbursements to the Adviser following the earlier of (1) the date that our NAV reaches $1.0 billion and (2) December 31, 2027. As of March 31, 2025 and December 31, 2024, we have $5.4 million, respectively, due to the Adviser for advanced operating expenses that are recorded as a component of due to affiliates on our condensed consolidated balance sheets.

Advanced Organization and Offering Expenses

The Adviser advanced all of our organization and offering expenses (other than upfront selling commissions, dealer manager fees, and ongoing stockholder servicing fees) incurred through December 31, 2022. We will begin reimbursing the Adviser for advanced organization and offering expenses upon the earlier of (1) the date that our NAV reaches $1.0 billion and (2) December 31, 2027. We will reimburse the Adviser for all of our advanced expenses ratably over 60 months following such date. As of March 31, 2025 and December 31, 2024, we have $6.8 million, respectively, due to the Adviser for advanced organization and offering expenses that are recorded as a component of due to affiliates on our condensed consolidated balance sheets.

Accrued Reimbursable Operating, Organizational and Offering Expenses

In January 2022, we began reimbursing the Adviser on a quarterly basis for operating expenses incurred subsequent to December 31, 2021. As of March 31, 2025 and December 31, 2024, we have $3.0 million and $4.9 million, respectively, due to the Adviser for operating expenses. The amount due to the Adviser is recorded as a component of due to affiliates on our condensed consolidated balance sheets.

In January 2023, we began reimbursing the Adviser on a quarterly basis for organizational and offering expenses incurred subsequent to December 31, 2022. As of March 31, 2025 and December 31, 2024, we have $2.3 million and $1.4 million, respectively, due to the Adviser for organization and offering expenses that are recorded as a component of due to affiliates on our condensed consolidated balance sheets.

Operating Expenses Reimbursement

Under our charter, we may reimburse the Adviser, at the end of each fiscal quarter, for total operating expenses paid by the Adviser. However, we may not reimburse the Adviser at the end of any fiscal quarter for total operating expenses (as defined in our charter) that, in the four consecutive fiscal quarters then ended, exceed the greater of 2% of average invested assets or 25% of net income determined without reduction for any additions to reserves for depreciation, bad debts or other similar non-cash reserves and excluding any gain from the sale of our assets for that period (the “2%/25% Guidelines”).

We may reimburse the Adviser for expenses in excess of the 2%/25% Guidelines if a majority of our independent directors determines that such excess expenses (an “Excess Amount”) are justified based on unusual and non-recurring factors. Operating expenses for the four consecutive fiscal quarters ended March 31, 2025 did not exceed the charter-imposed limitation.

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Accrued Affiliate Service Provider Expenses

The Company has engaged and expects to continue to engage Pine Tree Commercial Realty, LLC (“Pine Tree”), a wholly owned subsidiary of PTCR Holdco, LLC, in which we have a preferred equity investment, to provide property management services (including leasing, revenue management, accounting, legal and contract management, expense management and capital expenditure project services) for Cortlandt Crossing. The cost for such services is a percentage of the gross receipts and project costs, respectively.

During the three months ended March 31, 2025 and 2024, we incurred approximately $40,000 and $42,000 of expenses due to Pine Tree for services in connection with the property management of Cortlandt Crossing. All property management fees paid to Pine Tree are included in rental property operating expenses on our condensed consolidated statements of operations.

Co-Investments with Affiliated Products

We formed a joint venture with Invesco U.S. Income Fund L.P., an affiliate of Invesco, to acquire an 85% interest in the Sunbelt Medical Office Portfolio. We and Invesco U.S. Income Fund L.P. each hold a 50% interest in the joint venture.

We hold a 50% ownership interest in a real estate operating company focused on the aggregation and asset management of manufactured housing through Homestead Communities, LLC. Invesco U.S. Income Fund L.P. owns the remaining 50% ownership interest.

See additional discussion in Note 4 — “Investments in Unconsolidated Entities.”

We hold our interest in Everly Roseland through a 60% consolidated ownership interest in Everly Roseland Co-Invest, a co-investment between INREIT OP and Invesco Real Estate Atlas US Everly LLC, an affiliate of Invesco and a majority owned subsidiary of Invesco Global Property Plus Fund (“IGP+”). The Everly Roseland Co-Invest holds a 95% consolidated ownership interest in a joint venture with a third-party.

Investment in Affiliated Fund

As of March 31, 2025, we have an investment of $20.5 million in CMI, an affiliate of Invesco managed by our Adviser. CMI invests primarily in mortgage loans that are collateralized by commercial and residential real estate throughout the United States.

Captive Insurance Program

In March 2024, the Adviser established a captive insurance program to provide a portion of the “all risk property insurance” for real estate properties managed by the Adviser and its affiliates in the United States, including the properties owned by us. In connection with our participation in the captive insurance program, we or our property-owning subsidiaries will be a member of a Vermont mutual insurance company (the “Mutual Insurance Company”) formed by the Adviser. We are required to pay to the Mutual Insurance Company our pro rata share of the premium for this first loss retention insurance. The Adviser’s affiliated Vermont insurance company, IRE Core Insurance Services LLC, provides certain administrative services for the Mutual Insurance Company and is entitled to reimbursement from the Mutual Insurance Company (and thus, indirectly, from us and other participants) for such services at cost. In addition, the Mutual Insurance Company will reimburse IRE Core Insurance Services LLC for the fees and costs of certain third-party service providers retained in connection with such administrative services. For the three months ended March 31, 2025, we incurred $0.1 million for our wholly owned properties and approximately $29,000 for our properties held through joint ventures related to the captive insurance program which are recorded as a component of rental property operating expenses and income (loss) from unconsolidated entities, net, respectively, on our condensed consolidated statement of operations. We did not incur any costs related to the captive insurance program for the three months ended March 31, 2024.

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Other

As of March 31, 2025, we have an outstanding commitment of $65.0 million from Invesco Realty, Inc. that collateralizes our Revolving Credit Facility. We may be required to call capital under this commitment to repay outstanding obligations under our Revolving Credit Facility in the event of default, however this commitment is not available to fund our operating or investing activities. As of March 31, 2025, we have not called any of the commitment.

MassMutual, an affiliate of Invesco, is the sole holder of our Class N redeemable common stock. See additional information on MassMutual’s investment in the Company in “ Note 12 — “Redeemable Equity Instruments.”

19.Commitments and Contingencies

Commitments and contingencies may arise in the ordinary course of business. As of March 31, 2025, we have no material off-balance sheet commitments and contingencies.

From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of March 31, 2025, we were not subject to any material litigation or aware of any pending or threatened material litigation.

20.Tenant Leases

Our real estate properties are leased to tenants under operating lease agreements that expire on various dates. Our tenants have the option to extend or terminate certain leases at their discretion and also have termination options that may result in additional fees due to the Company.

We recognize rental revenue on a straight-line basis over the life of the lease, including any rent steps or abatement provisions. Our tenant leases do not have material residual value guarantees or material restrictive covenants.

The following table details the components of operating lease income:

	Three Months Ended March 31,
in thousands	2025		2024
Fixed lease payments	$	12,538	$	12,891
Variable lease payments	2,380		1,603
Rental revenue	$	14,918	$	14,494

Aggregate minimum annual rentals for our consolidated real estate investments through the non-cancelable lease term are as follows:

in thousands	Future Minimum
Year	Rents(1)
2025 (remainder)	$	11,903
2026	15,359
2027	13,406
2028	12,448
2029	9,607
2030	7,461
Thereafter	34,917
Total	$	105,101

(1)Includes leases for our industrial, office and retail properties which typically have long-term leases over multiple years. All other properties issue short term-leases which have no contractual obligations for future years.

Certain leases provide for additional rental amounts based upon the recovery of actual operating expenses in excess of specified base amounts or contractual increases as defined in the lease agreement. These contractual contingent rentals are not included in the table above.

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21.Segment Reporting

As of March 31, 2025, we operated in nine reportable segments: healthcare, office, industrial, self-storage, multifamily, student housing, grocery-anchored retail, real estate debt, and real estate-related securities. Real estate debt includes an originated commercial loan, the preferred equity investment in San Simeon Preferred Equity and our investment in an affiliated debt fund. We allocate resources and evaluate results based on the performance of each segment individually.

Our chief operating decision maker (“CODM”) for each segment is a group comprised of the Company’s Chief Executive Officer, President and Chief Financial Officer. The CODM is responsible for making investments in properties, real estate ventures and real-estate related securities and reviews the financial reports for each real estate sector and investment on a regular basis. The financial reports for each segment and investment are reviewed based on net operating income, a cash flow measure of operating performance that includes real estate revenue, income from commercial loans, rental property operating expenses, the net of revenues and rental property operating expenses of unconsolidated entities excluding depreciation and amortization, income from our investment in an affiliated fund and income from our real estate-related securities on a regular basis. Therefore, net operating income is the key performance metric that is used to make investment decisions and captures the unique operating characteristics of each segment.

The segment expenses regularly provided to the CODM that are used to manage our real estate segment operations are rental property operating expenses. Rental property operating expenses include real estate taxes, property insurance, repairs and maintenance, property management fees, utilities and other costs associated with owning real estate.

The following table summarizes our total assets by segment:

in thousands	March 31, 2025		December 31, 2024
Healthcare	$	63,552	$	64,292
Office	29,109		29,270
Industrial	213,576		216,473
Self-Storage	71,121		71,242
Multifamily	190,640		193,547
Student Housing	158,515		151,382
Grocery-Anchored Retail	62,606		62,843
Real Estate Debt	62,239		63,161
Real Estate-Related Securities	60,446		56,472
Corporate and Other	159,855		74,397
Total assets	$	1,071,659	$	983,079

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The following table summarizes our financial results by segment for the three months ended March 31, 2025:

in thousands	Healthcare		Office		Industrial		Self-Storage		Multifamily		Student Housing		Grocery-Anchored Retail		Real Estate Debt		Real Estate-Related Securities		Corporate and Other		Total
Revenues:
Rental revenue	$	—	$	731	$	4,088	$	1,574	$	3,926	$	3,191	$	1,408	$	—	$	—	$	—	$	14,918
Income from commercial loans	—		—		—		—		—		—		—		395		—		—		395
Other revenue	—		—		87		151		109		257		1		—		—		665		1,270
Total revenues	—		731		4,175		1,725		4,035		3,448		1,409		395		—		665		16,583
Expenses:
Rental property operating	—		158		1,025		709		1,833		1,475		470		—		—		36		5,706
Total expenses	—		158		1,025		709		1,833		1,475		470		—		—		36		5,706
Income (loss) from unconsolidated entities, net	954		—		—		—		—		—		—		814		—		720		2,488
Income (loss) from investment in affiliated fund, net	—		—		—		—		—		—		—		473		—		—		473
Gain (loss) from real estate-related securities, net	—		—		—		—		—		—		—		—		553		—		553
Segment net operating income (loss)	$	954	$	573	$	3,150	$	1,016	$	2,202	$	1,973	$	939	$	1,682	$	553	$	1,349	$	14,391
Depreciation and amortization	$	(1,527)	$	(342)	$	(2,518)	$	(456)	$	(2,763)	$	(911)	$	(522)	$	—	$	—	$	(432)	$	(9,471)
General and administrative																					(2,104)
Gain (loss) on derivative instruments, net																					(545)
Unrealized gain (loss) on commercial loans																					(66)
Debt extinguishment charges																					(34)
Interest income																					730
Interest expense																					(4,560)
Management fee - related party																					(605)
Other income (expense)																					(78)
Net income (loss) attributable to Invesco Real Estate Income Trust Inc.																					$	(2,342)
Net (income) loss attributable to non-controlling interests in consolidated joint ventures																					13
Net (income) loss attributable to non-controlling interest in INREIT OP																					(18)
Net income (loss) attributable to common stockholders																					$	(2,347)

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The following table reconciles our segment income (loss) from unconsolidated entities to income (loss) from unconsolidated entities, net on our condensed consolidated statement of operations for the three months ended March 31, 2025:

in thousands
Segment income (loss) from unconsolidated entities	$	2,488
Depreciation and amortization attributable to unconsolidated entities	(2,415)
Income (loss) from unconsolidated entities, net	$	73

The following table reconciles our segment depreciation and amortization to depreciation and amortization on our condensed consolidated statement of operations for the three months ended March 31, 2025:

in thousands
Segment depreciation and amortization	$	(9,471)
Depreciation and amortization attributable to unconsolidated entities	2,415
Depreciation and amortization	$	(7,056)

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The following table summarizes our financial results by segment for the three months ended March 31, 2024:

in thousands	Healthcare		Office		Industrial		Self-Storage		Multifamily		Student Housing		Grocery-Anchored Retail		Real Estate Debt		Real Estate-Related Securities		Corporate and Other		Total
Revenues:
Rental revenue	$	—	$	741	$	2,465	$	2,081	$	2,855	$	5,013	$	1,339	$	—	$	—	$	—	$	14,494
Income from commercial loans	—		—		—		—		—		—		—		1,130		—		—		1,130
Other revenue	—		—		117		221		56		317		1		—		—		28		740
Total revenues	—		741		2,582		2,302		2,911		5,330		1,340		1,130		—		28		16,364
Expenses:
Rental property operating	—		136		694		2,099		1,083		2,096		476		—		—		55		6,639
Total expenses	—		136		694		2,099		1,083		2,096		476		—		—		55		6,639
Income (loss) from unconsolidated entities, net	1,476		—		—		—		—		—		—		775		—		991		3,242
Income (loss) from investment in affiliated fund, net	—		—		—		—		—		—		—		651		—		—		651
Gain (loss) from real estate-related securities, net	—		—		—		—		—		—		—		—		1,018		—		1,018
Segment net operating income (loss)	$	1,476	$	605	$	1,888	$	203	$	1,828	$	3,234	$	864	$	2,556	$	1,018	$	964	$	14,636
Depreciation and amortization	$	(1,678)	$	(416)	$	(1,376)	$	(637)	$	(1,346)	$	(1,749)	$	(500)	$	—	$	—	$	(562)	$	(8,264)
General and administrative																					(998)
Gain (loss) on derivative instruments, net																					1,723
Unrealized gain (loss) on commercial loans																					54
Interest income																					298
Interest expense																					(5,959)
Management fee - related party																					(465)
Other income (expense)																					(188)
Net income (loss) attributable to Invesco Real Estate Income Trust Inc.																					$	837
Dividends to preferred stockholders																					(2)
Net (income) loss attributable to non-controlling interests in consolidated joint ventures																					22
Net (income) loss attributable to non-controlling interest in INREIT OP																					39
Net income (loss) attributable to common stockholders																					$	896

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The following table reconciles our segment income (loss) from unconsolidated entities to income (loss) from unconsolidated entities, net on our condensed consolidated statement of operations for the three months ended March 31, 2024:

in thousands
Segment income (loss) from unconsolidated entities	$	3,242
Depreciation and amortization attributable to unconsolidated entities	(2,240)
Income (loss) from unconsolidated entities, net	$	1,002

The following table reconciles our segment depreciation and amortization to depreciation and amortization on our condensed consolidated statement of operations for the three months ended March 31, 2024:

in thousands
Segment depreciation and amortization	$	(8,264)
Depreciation and amortization attributable to unconsolidated entities	2,240
Depreciation and amortization	$	(6,024)

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22.Subsequent Events

Buyout of Ownership Interest

On April 24, 2025, we completed a buyout of the joint venture partner for the Meridian Business 940, Capital Park 2919 and 3101 Agler properties that were previously included as part of the Midwest Industrial Portfolio. Our ownership interest in these properties after the buyout is 100%. In connection with the buyout, we repaid the mortgage notes secured by the properties within the Midwest Industrial Portfolio prior to the buyout that had a principal balance of $70.0 million.

DST Program

On May 7, 2025, we commenced our third DST Offering under our DST Program. The DST Properties for the third DST Offering are comprised of the three industrial properties aforementioned above. As of May 12, 2025, we have not raised any proceeds from the third DST Offering.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

In this quarterly report on Form 10-Q, or this “Quarterly Report,” we refer to Invesco Real Estate Income Trust Inc. and its consolidated subsidiaries as “we,” “us,” “our Company,” or “our,” unless we specifically state otherwise or the context indicates otherwise. We refer to our external manager, Invesco Advisers, Inc., as our “Adviser,” and we refer to the indirect parent company of our Adviser, Invesco Ltd. together with its consolidated subsidiaries (which does not include us), as “Invesco.”

The following discussion should be read in conjunction with our condensed consolidated financial statements and the accompanying notes to our condensed consolidated financial statements, which are included in Item 1 of this Quarterly Report, as well as the information contained in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”).

Forward Looking Statements

This Quarterly Report may include statements that constitute “forward-looking statements” within the meaning of the United States securities laws and the Private Securities Litigation Reform Act of 1995, and such statements are intended to be covered by the safe harbor provided by the same. These forward-looking statements may include statements about possible or assumed future results of our business, investment strategies, financial condition, liquidity, results of operations, distributions, repurchases, plans and objectives. When we use the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “intend,” “project,” “forecast” or similar expressions and future or conditional verbs such as “will,” “may,” “could,” “should,” and “would,” and any other statement that necessarily depends on future events, we intend to identify forward-looking statements.

Forward-looking statements are subject to risks, uncertainties and assumptions and may be affected by known and unknown risks, trends, uncertainties and factors that are difficult to predict and are generally beyond our control. The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. You should not place undue reliance on these forward-looking statements. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us. We caution you not to rely unduly on any forward-looking statements and urge you to carefully consider the factors described under the headings "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this Report and our Annual Report on Form 10-K. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Except as required by law, we are not obligated to, and do not intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Overview

We are a Maryland corporation formed in October 2018. We invest primarily in stabilized, income-oriented commercial real estate in the United States. To a lesser extent, we also originate and acquire private real estate debt and invest in real estate-related securities. We own, and expect to continue to own, all or substantially all of our assets through Invesco REIT Operating Partnership L.P. (“INREIT OP” or “Operating Partnership”), of which we are the sole general partner.

We are externally managed and advised by our Adviser, a registered investment adviser and an indirect, wholly-owned subsidiary of Invesco Ltd., an independent global investment management firm. Our Adviser utilizes the personnel and global resources of Invesco Real Estate, the real estate investment center of Invesco, to provide investment management services to us. We qualified to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes commencing with the taxable year ended December 31, 2020. To maintain our REIT qualification, we must meet a number of organizational and operational requirements, including that we are generally required to distribute at least 90% of our REIT taxable income to our stockholders annually. We generally will not be subject to U.S. federal income taxes on our taxable income to the extent we annually distribute all of our net taxable income (determined without regard to our net capital gain and dividends-paid deduction) to stockholders and maintain our qualification as a REIT. We operate our business in a manner that permits our exclusion from the definition of “Investment Company” under the Investment Company Act of 1940, as amended (the “Investment Company Act”).

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As of March 31, 2025, we own or have invested in 58 properties. See “Investment Portfolio—Real Estate” below for additional information on these investments. As of March 31, 2025, we also own real estate-related securities, have an investment in a commercial loan and have invested in an affiliated fund which invests primarily in mortgage loans that are collateralized by commercial and residential real estate throughout the United States.

Public Offering

In May 2021, we commenced our initial public offering of up to $3.0 billion in shares of common stock. In November 2024, our initial public offering terminated and we commenced our follow-on public offering of up to $3.0 billion, consisting of up to $2.4 billion in shares in our primary offering (the “Primary Offering”) and up to $600.0 million in shares under our distribution reinvestment plan (collectively, the “Offering”). We are offering to sell any combination of five classes of shares of our common stock, Class T shares, Class S shares, Class D shares, Class I shares and Class E shares in the Offering, with a dollar value up to the maximum offering amount. The share classes have different upfront selling commissions and dealer manager fees and different ongoing stockholder servicing fees. The purchase price per share for each class of our common stock sold in the Offering will vary and will generally equal our prior month’s net asset value (“NAV”) per share for such class, as determined monthly, plus any applicable upfront selling commissions and dealer manager fees. We intend to continue selling shares in our follow-on public offering on a monthly basis.

As of May 12, 2025, we have received aggregate gross proceeds of $225.5 million from the Offering. We intend to continue selling shares on a monthly basis.

Private Offerings

We are conducting private offerings of up to $1.0 billion in shares of our Class N common stock (“Class N shares” or “Class N common stock”) (the “Class N Private Offering”) and up to $20 million in shares of our Class E common stock (“Class E shares” and the “Class E Private Offering,” respectively) (collectively, the “Private Offerings”). As of May 12, 2025, we have received gross proceeds of $597.2 million in the Private Offerings, and we have repurchased $74.8 million of Class N shares and $0.4 million of Class E shares, funded by proceeds from both the Offering and Private Offerings. All of the Class N shares that were repurchased were classified as Class N redeemable common stock on our condensed consolidated balance sheets.

In August 2022, our board of directors authorized management to initiate, through the Operating Partnership, a program (the “DST Program”) to issue and sell up to a maximum aggregate offering amount of $3.0 billion of beneficial interests (“Interests”) in specific Delaware statutory trusts (the “DSTs”) holding real properties (the “DST Properties”). These Interests will be issued and sold to “accredited investors,” as that term is defined under Regulation D promulgated by the SEC under the Securities Act of 1933, as amended (the “Securities Act”) in private placements exempt from registration pursuant to Section 4(a)(2) of the Securities Act (the “DST Offerings”). Under the DST Program, each DST Property may be sourced from our real properties or from third parties, will be held in a separate DST, and will be leased back by a wholly-owned subsidiary of the Operating Partnership in accordance with a master lease agreement. Each master lease agreement is guaranteed by the Operating Partnership, which has a fair market value purchase option (the “FMV Option”) giving it the right, but not the obligation, to acquire the interests in the applicable DST from the investors any time after two years from the closing of the applicable DST offering in exchange for units of the Operating Partnership (“OP Units”) or cash. After a one-year holding period, investors who acquire OP Units under the FMV Option generally have the right to cause the Operating Partnership to redeem all or a portion of their OP Units for, at our sole discretion, shares of our common stock, cash, or a combination of both.

The DST Program gives us the opportunity to expand and diversify our capital-raising strategies by offering what we believe to be an attractive investment product for investors that may be seeking replacement properties to complete like-kind exchange transactions under Section 1031 of the Internal Revenue Code of 1986, as amended. Certain affiliates of the Adviser receive fees in connection with the sale of the Interests and the management of the DSTs. We intend to use the net offering proceeds from the DST Program to make investments in accordance with our investment strategy and policies, reduce our borrowings, repay indebtedness, fund the repurchase of shares of all classes of our common stock under our share repurchase plan and for other corporate purposes. We commenced our DST Program in February 2023. As of May 12, 2025, we have raised $109.4 million from our DST Program.

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Factors Affecting Operating Results

Our results of operations are affected by a number of factors and depend on the rental income generated by the properties that we acquire or lend on, the timing of lease expirations, operating expenses, income or loss from unconsolidated entities, general market conditions and the competitive environment for real estate assets. Of these factors, changing macroeconomic landscape, interest rates, capital flows and transaction activity had the most direct impacts on our performance and financial condition during the first quarter of 2025.

Market Conditions

Our business is affected by conditions in the financial markets and economic conditions in the United States and to a lesser extent, elsewhere in the world. Inflation and economic trend data, along with policy shifts with a new administration, will ultimately determine if and when interest rates decline. For the time being, secured borrowing costs for core and core plus real estate remain in the 5-6% range, which will inform how investors underwrite value and their conviction in required growth. Our investment decisions today are further colored by a divergence in sector fundamentals, impacts of recent changes to U.S. trade policies and the resulting impacts to both near-term and long-term consumer demand. Amid today’s economic uncertainty and volatility, real estate offers tangible, income-generating assets with low correlation to public market fluctuations, making it an effective portfolio diversifier. The trade policies are likely to cause construction costs to increase, which makes owning existing real estate below replacement cost attractive and a defensive place for capital preservation. This could create attractive entry points and investment opportunities, further emphasizing the importance to prioritize investment-level execution to generate outperformance.

Rental Property Operating Results

We generate rental property income primarily from rental revenue received by the properties that we acquire. The amount of rental revenue depends upon a number of factors, including our ability to enter into leases with above or at market value rents for the properties that we acquire, and rent collection, which primarily relates to each future tenant’s financial condition and ability to make rent payments to us on time. Rental property operating expenses include real estate taxes, property insurance, repairs and maintenance, property management fees, utilities and other costs associated with owning real estate.

Our investments are diversified across sectors, including student-housing, multifamily, self-storage, industrial and healthcare.

Between December 2024 and February 2025, we completed dispositions or recapitalizations of assets comprising over $191.0 million and created over $110.0 million of equity to reinvest in assets with reset pricing within markets where we have long-term conviction. As a result of these transactions, we have reduced a large sector and single asset concentration within student housing that resulted from relative outperformance in the sector. With our pipeline of new investments, ample liquidity and low leverage, we believe we provide investors with a compelling opportunity to access private real estate at what we believe is an inflection point. While market volatility and certain fundamental factors have affected and may continue to affect the commercial real estate market and our performance, we believe there are positive long-term fundamentals within our portfolio and benefits from our recent portfolio repositioning. In addition, we believe that demand will continue for Section 1031 investment products, supporting our DST Program.

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Q1 2025 Highlights

Operating Results

•We declared monthly net distributions totaling $9.4 million for the three months ended March 31, 2025. The details of the average annualized distributions rates and total returns are shown in in the following table:

	Class T	Class S	Class D	Class I	Class E	Class N
Average Annualized Distribution Rate(1)	5.9%	5.8%	6.2%	6.3%	5.9%	6.1%
Year-to-Date Total Return, without upfront selling commissions(2)	0.8%	0.8%	0.9%	0.9%	1.2%	1.2%
Year-to-Date Total Return, assuming maximum upfront selling commissions(2)	(2.7)%	(2.7)%	(0.6)%	0.9%	1.2%	1.2%
Inception-to-Date Total Return, without upfront selling commissions(2)(3)	4.4%	4.5%	4.6%	5.0%	6.3%	8.2%
Inception-to-Date Total Return, assuming maximum upfront selling commissions(2)(3)	3.4%	3.5%	4.2%	5.0%	6.3%	8.2%

(1)The annualized distribution rate is calculated as the current month’s distribution annualized and divided by the prior month’s NAV, which is inclusive of all fees and expenses. The percent shown is the average annualized distribution rate for the three months ended March 31, 2025.

(2)Total return is calculated as the change in NAV per share during the respective periods plus any distributions per share declared in the period and assumes any distributions are reinvested in accordance with our distribution reinvestment plan.

(3)The inception date was June 1, 2021 for Class T, S and D shares; May 21, 2021 for Class I shares; May 14, 2021 for Class E shares and September 28, 2020 for Class N shares.

Capital Activity

•We raised $9.8 million of net proceeds from the sale of our common stock during the three months ended March 31, 2025 and also have raised a total of $105.3 million in proceeds from the DST Program as of March 31, 2025.

Investments

•We purchased $1.7 million and sold $0.7 million in real estate-related securities bringing our total investment in real estate-related securities to $57.3 million during the three months ended March 31, 2025.

•We sold a 40% indirect leasehold interest in a student housing property, The Carmin, to an unaffiliated third party for a sale price of $138.5 million during the three months ended March 31, 2025.

•During the three months ended March 31, 2025, we received proceeds of $0.8 million from the partial repayment of the 5805 N Jackson Gap commercial loan in connection with the extension of the maturity date of the loan.

Financings

•We refinanced The Carmin mortgage note in connection with the sale of 40% of the membership interest in the property during the three months ended March 31, 2025. Proceeds from the new secured mortgage note were partially used to repay the existing mortgage. We incurred debt extinguishment charges of approximately $34,000 in connection with the refinancing.

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Investment Portfolio

Summary of Portfolio

The following chart summarizes the allocation of our investment portfolio based on fair value as of March 31, 2025:

Investment Allocation (1)

The following charts describe the diversification of our investments in real estate based on fair value as of March 31, 2025:

Property Type (2)

Geography (3)

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(1)Investment allocation is measured as the asset value of each investment category (real estate property investments, private real estate debt, real estate-related securities or cash) against the total asset value of all investment categories, excluding the value of any third-party interests in such assets. Real estate investments include our direct property investments, unconsolidated investments and our interest in retail properties through INREIT’s interest in ITP Investments LLC. See “—Real Estate” below for additional information on these investments. Totals may not sum to 100% due to rounding.

(2)Property Type weighting is measured as the asset value of real estate investments for each sector category (Healthcare, Industrial, Office, Multifamily, Grocery-Anchored Retail, Self-Storage, Student Housing, Private Real Estate Debt, Other) against the total asset value of all real estate investments, excluding the value of any third-party interests in such real estate investments. The Other segment includes non-controlling interests in retail properties through our interest in ITP Investments LLC. Totals may not sum to 100% due to rounding.

(3)Geography weighting excludes the asset value of any investments in private real estate debt, real estate-related securities or cash and is measured as the asset value of direct real estate properties and unconsolidated investments for each geographical category (East, Midwest, South, West) against the total asset value of all real estate property investments. Totals may not sum to 100% due to rounding.

As of March 31, 2025, we owned interests in 58 properties, which we acquired for a total purchase price of $880.0 million, inclusive of closing costs. Our diversified portfolio of income producing assets consists of healthcare, office, industrial, self-storage, multifamily, student housing and grocery-anchored retail properties, as well as real estate debt investments, concentrated in growth markets across the United States.

The following table provides a summary of our real estate portfolio as of March 31, 2025:

Segment	Number of Properties	Sq. Feet / Units /Beds	Occupancy Rate	Gross Asset Value ($ in thousands)(1)		Segment Revenue ($ in thousands)(2)		Percentage of Total Segment Revenue(3)
Industrial	12	1,877,967 sq. ft.	80%	$	216,910	$	4,175	21%
Multifamily	2	541 units	97%	182,539		4,035		20%
Student Housing	1	833 beds	88%	172,659		3,448		17%
Healthcare	20	1,030,397 sq. ft.	93%	167,027		954		5%
Self-Storage	8	462,520 sq. ft.	91%	78,836		1,725		9%
Grocery-Anchored Retail	1	122,225 sq. ft.	100%	60,200		1,409		7%
Office	1	80,980 sq. ft.	100%	28,400		731		4%
Other(4)	13	4,252,125 sq. ft.	92%	46,083		1,385		6%
Total	58			$	952,654	$	17,862	89%

(1)Based on fair value as of March 31, 2025. The Gross Asset Value includes investments in both consolidated and unconsolidated real estate. The unconsolidated investments, excluding preferred equity investments, are included at our pro-rata share of the investment. For our preferred equity investments, we include the fair value of our preferred equity investment. See “—Real Estate” below for additional information on these investments.

(2)Segment revenue is presented for the three months ended March 31, 2025. Healthcare and Other segment revenue includes income from unconsolidated entities.

(3)The Percentage of Total Segment Revenue does not equal 100% as it does not include real estate debt and real estate-related securities. See the tables below for the remainder of our segment revenue.

(4)The full amount of the Other segment is comprised of non-controlling interests we own in retail properties through our interest in ITP Investments LLC. See “—Real Estate” below for additional information on these investments.

The following table provides a summary of our real estate debt as of March 31, 2025:

Segment	Number of Instruments	Fair Value ($ in thousands)(1)		Segment Revenue ($ in thousands)(2)		Percentage of Total Segment Revenue(3)
Real Estate Debt	3	$	61,906	$	1,682	8%

(1)Based on fair value as of March 31, 2025. The Fair Value includes an investment in a commercial mortgage, the investment in an affiliated debt fund and unconsolidated preferred equity. See “—Real Estate Debt” below for additional information on these investments.

(2)Segment revenue is presented for the three months ended March 31, 2025. The Real Estate Debt segment revenue includes income from unconsolidated entities as a result of the San Simeon Holdings LLC (“San Simeon Preferred Equity”) investment, income from commercial loans and income from the investment in an affiliated fund.

(3)The Percentage of Total Segment Revenue does not equal 100% as it does not include the real estate portfolio and real estate-related securities.

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The following table provides a summary of our real estate-related securities as of March 31, 2025:

Segment	Number of Instruments	Fair Value (in thousands)(1)		Segment Revenue (in thousands)(2)		Percentage of Total Segment Revenue(3)
Real Estate-Related Securities	24	$	57,253	$	553	3%

(1)Based on fair value as of March 31, 2025. The Fair Value includes investments in liquid real estate-related securities consisting of investments in commercial mortgage backed securities (“CMBS”) and common stock of REITs. See “—Investments in Real Estate-Related Securities” below for additional information on these investments.

(2)Segment revenue is presented for the year ended March 31, 2025. The Real Estate-Related Securities segment revenue includes the gain (loss) from real estate-related securities, net.

(3)The Percentage of Total Segment Revenue does not equal 100% as it does not include the real estate portfolio and real estate debt.

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Real Estate

The following table provides information regarding our portfolio of real estate as of March 31, 2025:

Segment and Investment	Number of Properties	Location(s)	Acquisition Date(s)	Ownership Interest	Purchase Price ($ in thousands)		Sq. Feet / Units /Beds		Occupancy
Industrial:
13034 Excelsior(5)	1	Norwalk, CA	December 2020	100%	$	18,594	53,527	sq. ft.	100%
5201 Industry(5)	1	Pico Rivera, CA	December 2020	100%	12,483		40,480	sq. ft.	100%
Midwest Industrial Portfolio(2)	4	IL, OH, MO	September 2021 / January 2022 / March 2022	95%	115,566		1,338,425	sq. ft.	76%
International Business 4535	1	Charlotte, NC	July 2024	100%	8,731		61,200	sq. ft.	100%
NJ Exit 5 Industrial Portfolio	5	Lumberton, NJ	December 2024	95%	62,069		384,335	sq. ft.	85%
Total Industrial	12				217,443		1,877,967	sq. ft.
Multifamily:
Everly Roseland(3)	1	Roseland, NJ	April 2022	57%	162,023		360	units	97%
Elan at Bluffview	1	Dallas, TX	November 2024	100%	36,954		181	units	95%
Total Multifamily	2				198,977		541	units
Student Housing:
The Carmin(6)	1	Tempe, AZ	December 2021	59%	163,692		833	beds	88%
Total Student Housing	1				163,692		833	beds
Healthcare:
Sunbelt Medical Office Portfolio(1)	20	CA, CO, FL, TN, TX	September 2020 / December 2020 / February 2021	42.5%	86,416		1,030,397	sq. ft.	93%
Total Healthcare	20				86,416		1,030,397	sq. ft.
Self-Storage:
River Road Storage(5)	1	Salem, OR	September 2021	100%	15,540		76,034	sq. ft.	89%
South Loop Storage(5)	1	Houston, TX	September 2021	100%	11,141		66,981	sq. ft.	90%
University Parkway Storage(5)	1	Winston-Salem, NC	April 2022	100%	12,154		52,275	sq. ft.	94%
Bend Self-Storage Portfolio(5)	2	Bend, OR	June 2022	100%	18,078		62,805	sq. ft.	93%
Clarksville Self-Storage Portfolio(5)	3	Clarksville, TN	July 2022	100%	24,529		204,425	sq. ft.	90%
Total Self-Storage	8				81,442		462,520	sq. ft.
Grocery-Anchored Retail:
Cortlandt Crossing	1	Mohegan Lake, NY	February 2022	100%	65,553		122,225	sq. ft.	100%
Total Grocery-Anchored Retail	1				65,553		122,225	sq. ft.
Office:
Willows Commerce 9805	1	Redmond, WA	December 2020	100%	35,729		80,980	sq. ft.	100%
Total Office	1				35,729		80,980	sq. ft.
Other:
Retail GP Fund(4)	13	Various(3)	Various(3)	4.5% - 9.0%	30,700		4,252,125	sq. ft.	92%
Total Other	13				30,700		4,252,125	sq. ft.
Total Investment Properties	58				$	879,952

(1)We hold our interest in the Sunbelt Medical Office Portfolio through a 50% ownership interest in a joint venture with Invesco U.S. Income Fund L.P., an affiliate of Invesco, (the “Invesco JV”). The Invesco JV holds an 85% ownership interest in a joint venture with a third-party. We account for our investment using the equity method of accounting. The dates of acquisition and aggregate purchase price in the table above reflect the dates of our investments and the total amount of our investment in the Invesco JV.

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(2)Meridian Business 940, Capital Park 2919, 3101 Agler and Earth City 13330 are collectively presented as Midwest Industrial Portfolio.

(3)We hold our interest in Everly Roseland through a 60% consolidated ownership interest in Everly Roseland Co-Invest, a co-investment between INREIT OP and Invesco Real Estate Atlas US Everly LLC (“Atlas US”), an affiliate of Invesco. Invesco Global Property Plus Fund (“IGP+”), the majority owner in Atlas US, owns more than 10% of our outstanding common stock as of the date of this Report. The Everly Roseland Co-Invest holds a 95% consolidated ownership interest in a joint venture with a third-party.

(4)We hold an 85% ownership interest in a joint venture, ITP Investments LLC (“ITP LLC”). ITP LLC has a 90% interest in PT Co-GP Fund, LLC (“Retail GP Fund”), which was formed to invest in retail properties through non-controlling general partner interests. The ownership interest and aggregate purchase price in the table above reflects ITP LLC’s ownership interest and the total amount paid by ITP LLC to obtain non-controlling general partner interests in the retail properties. The properties were acquired over several transactions from October 2021 to June 2024 and are located throughout the United States.

(5)These properties are held through our DST Program as of March 31, 2025 and have been consolidated in our condensed consolidated balance sheets. Any profits interest due to the third-party investors in the DST Program are reported within non-controlling interests in consolidated joint ventures in our condensed consolidated balance sheets.

(6)On February 28, 2025, we sold a 40% indirect leasehold interest in The Carmin student housing property to an unaffiliated third party. Our new consolidated ownership interest is 59%.

Lease Expirations

The following schedule details the expiring leases at our consolidated office, industrial, and grocery-anchored retail properties, as well as our unconsolidated healthcare properties by annualized base rent and square footage as of March 31, 2025. The table below excludes our self-storage, multifamily and student housing properties as substantially all leases at such properties expire within 12 months.

Year	Number of Expiring Leases	Annualized Base Rent (in thousands) (1)(2)		% of Total Annualized Base Rent Expiring	Square Feet	% of Total Square Feet Expiring
2025 (remaining)	34	$	3,412	7%	136,900	5%
2026	45	5,431		12%	411,928	16%
2027	30	3,928		9%	368,655	14%
2028	37	5,064		11%	145,969	5%
2029	32	6,505		14%	517,366	20%
2030	20	3,024		7%	163,857	6%
2031	12	1,584		3%	142,775	5%
2032	12	1,077		2%	37,022	1%
2033	4	292		1%	9,595	1%
2034	11	1,183		3%	50,803	2%
Thereafter	27	14,062		31%	670,943	25%
Total	264	$	45,562	100%	2,655,813	100%

(1)Annualized base rent is determined from the annualized March 31, 2025 base rent per leased square foot of the applicable year and excludes tenant recoveries, straight-line rent and above-market and below-market lease amortization.

(2)Includes 100% of the Sunbelt Medical Office Portfolio.

Real Estate Debt

We hold an investment in San Simeon Preferred Equity. San Simeon Preferred Equity owns San Simeon Apartments, a 431 unit multifamily property in Houston, Texas which is 90% occupied. Our investment is structured as a preferred membership interest, and we account for our investment in the San Simeon Apartments using the equity method of accounting. At March 31, 2025, our total equity investment was $29.2 million.

We have an investment in Invesco Commercial Mortgage Income - U.S. Fund, L.P. (“CMI”), an affiliate of Invesco managed by our Adviser, which invests primarily in mortgage loans that are collateralized by commercial and residential real estate throughout the United States. As of March 31, 2025, our investment in CMI was $20.5 million.

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The following table summarizes our investment in a commercial loan as of March 31, 2025 and December 31, 2024:

					Current Principal Balance		Fair Value
in thousands	Origination Date	Loan Type	Interest Rate(1)	Periodic Payment Terms	March 31, 2025	December 31, 2024	March 31, 2025	December 31, 2024	Maturity Date
5805 N Jackson Gap Loan	1/20/2023	Mezzanine	12.48%	Interest only	12,245	13,007	12,168	12,996	2/9/2026

(1)Represents the interest rate as of March 31, 2025. The loan earns interest at Secured Overnight Financing Rate (“SOFR”) plus a spread.

During the three months ended March 31, 2025, the borrower of 5805 N Jackson Gap exercised its first option to extend the maturity date of the loan to February 9, 2026. In connection with the extension, the borrower repaid $0.8 million of the principal balance of the loan as required by the terms of the loan agreement.

We elected the fair value option and, accordingly, there are no capitalized origination costs or fees associated with the loans.

Investments in Liquid Real Estate-Related Securities

As of March 31, 2025, our liquid real estate-related securities portfolio consisted of investments in commercial mortgage backed securities (“CMBS”) and common stock of REITs. The following table details our investments in real estate-related securities as of March 31, 2025:

	March 31, 2025
in thousands	Principal Balance		Unamortized Premium (Discount)		Amortized Cost / Cost(1)		Unrealized Gain (Loss), Net		Fair Value		Period-end Weighted Average Yield		Weighted-Average Maturity Date
Non-agency CMBS	$	53,502	$	(1,566)	$	51,936	$	32	$	51,968	6.73	%	2/1/2028
Common stock of REITs	N/A		N/A		5,543		(258)		5,285		5.05	%	N/A
Total	$	53,502	$	(1,566)	$	57,479	$	(226)	$	57,253

(1)For non-agency CMBS, the amount presented represents amortized cost. For common stock of REITs, the amount presented represents cost.

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Results of Operations

The following table sets forth the results of our operations:

	Three Months Ended March 31,				$ Change
in thousands	2025		2024
Revenues
Rental revenue	$	14,918	$	14,494	$	424
Income from commercial loans	395		1,130		(735)
Other revenue	1,270		740		530
Total revenues	16,583		16,364		219
Expenses
Rental property operating	5,706		6,639		(933)
General and administrative	2,104		998		1,106
Management fee - related party	605		465		140
Depreciation and amortization	7,056		6,024		1,032
Total expenses	15,471		14,126		1,345
Other income (expense), net
Income (loss) from unconsolidated entities, net	73		1,002		(929)
Gain (loss) on real estate-related securities, net	553		1,018		(465)
Income (loss) from investment in affiliated fund, net	473		651		(178)
Gain (loss) on derivative instruments, net	(545)		1,723		(2,268)
Unrealized gain (loss) on commercial loans	(66)		54		(120)
Debt extinguishment charges	(34)		—		(34)
Interest income	730		298		432
Interest expense	(4,560)		(5,959)		1,399
Other income (expense), net	(78)		(188)		110
Total other income (expense), net	(3,454)		(1,401)		(2,053)
Net income (loss) attributable to Invesco Real Estate Income Trust Inc.	$	(2,342)	$	837	$	(3,179)
Dividends to preferred stockholders	$	—	$	(2)	$	2
Issuance and redemption costs of redeemed preferred stock	—		—		—
Net (income) loss attributable to non-controlling interests in consolidated joint ventures	13		22		(9)
Net (income) loss attributable to non-controlling interest in INREIT OP	(18)		39		(57)
Net income (loss) attributable to common stockholders	$	(2,347)	$	896	$	(3,243)

Rental Revenue, Other Revenue and Rental Property Operating Expenses

Our rental revenue primarily consists of fixed contractual base rent from our tenants and is recognized on a straight-line basis over the non-cancelable terms of the related leases. Our rental property operating expenses generally include the costs of ownership of real estate, including insurance, utilities, real estate taxes and repair and maintenance expense. Rental revenue increased by $0.4 million, other revenue increased by $0.5 million and rental property operating expenses decreased by $0.9 million for the three months ended March 31, 2025 as compared to the same period in 2024. The increase in rental revenue is primarily due to the acquisition of several properties in the second half of 2024. The increase in other revenue is due to an increase in interests sold in our DST Program in 2025 driving an increase in the organizational and offering expense reimbursements and closing cost reimbursements that we receive. Rental property operating expenses decreased primarily due to a change in the accrual of promote fees at our self-storage properties in 2025 as compared to 2024. The promote is currently out of the money and there is no accrual recorded as of March 31, 2025.

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Income from Commercial Loans and Unrealized Gain (Loss) on Commercial Loans

During the three months ended March 31, 2025, income from commercial loans decreased $0.7 million compared to the three months ended March 31, 2024. This is due to the maturity of the Blue Grass commercial loan in September 2024. Unrealized loss on commercial loans decreased by $0.1 million compared to an unrealized gain during the three months ended March 31, 2024 driven by changes to the interest rate environment as compared to 2024.

General and Administrative

During the three months ended March 31, 2025, general and administrative expenses increased $1.1 million compared to the three months ended March 31, 2024. The increase was primarily due to higher corporate level expenses incurred related to the growth of our DST Program.

Management Fee - Related Party

During the three months ended March 31, 2025, the management fee increased $0.1 million compared to the three months ended March 31, 2024 due to the additional 1.0% management fee payable from selling interests in the DST Program. Interests sold in the DST Program increased in the current period as compared to 2024.

Depreciation and Amortization

During the three months ended March 31, 2025, depreciation and amortization increased $1.0 million compared to the three months ended March 31, 2024 primarily due to the acquisition of several properties in the second half of 2024.

Income (Loss) from Unconsolidated Entities, Net

During the three months ended March 31, 2025, we had income from unconsolidated entities of $0.1 million as compared to $1.0 million during the three months ended March 31, 2024. The change for the three months ended March 31, 2025 was primarily due to a decrease in net income at Vida JV LLC due to unrealized losses from derivatives and a decrease in net income at Retail GP Fund due to higher depreciation and amortization driven by additional investments in six properties acquired in June 2024.

Gain (Loss) on Real Estate-Related Securities, Net

During the three months ended March 31, 2025, our gains on real estate-related securities decreased by $0.5 million compared to the three months ended March 31, 2024. The decrease was primarily due to an increase in unrealized losses from market volatility on common stock holdings.

Income (Loss) from Investment in Affiliated Fund, Net

During the three months ended March 31, 2025, income from investment in affiliated fund decreased by $0.2 million compared to the three months ended March 31, 2024. The decrease is primarily due to a decrease in net investment income of the fund for the quarter ended March 31, 2025 as compared to 2024.

Gain (Loss) on Derivative Instruments, Net

During the three months ended March 31, 2025, we had a loss from derivative instruments of $0.5 million as compared to a gain on derivative instruments of $1.7 million during the three months ended March 31, 2024. The change for the three months ended March 31, 2025 is a result of unrealized losses in 2025 compared to 2024 and a decrease in contractual interest received from the derivative instruments due to expired and terminated contracts.

Debt Extinguishment Charges

During the three months ended March 31, 2025, we incurred debt extinguishment charges of approximately $34,000 related to the refinancing of the mortgage secured by The Carmin student housing property in connection with the sale. We did not incur any debt extinguishment charges in the three months ended March 31, 2024.

Interest Income

During the three months ended March 31, 2025, interest income increased by $0.4 million compared to the three months ended March 31, 2024. The increase was primarily due to a higher cash balance as of March 31, 2025 as compared to March 31, 2024.

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Interest Expense

During the three months ended March 31, 2025, interest expense decreased $1.4 million compared to the three months ended March 31, 2024. The decrease is primarily due to the repayment of the mortgage associated with a property sold in 2024.

Funds from Operations, Adjusted Funds from Operations and Funds Available for Distribution

We believe funds from operations (“FFO”) is a meaningful non-GAAP measure. Our condensed consolidated financial statements are presented in accordance with GAAP under historical cost accounting which, among other things, requires depreciation of real estate investments to be calculated on a straight-line basis. As a result, our operating results imply that the value of our real estate investments will decrease evenly over a set time period. However, we believe that the value of our real estate investments will fluctuate over time based on market conditions and as such, depreciation under historical cost accounting may be less informative. FFO is a standard REIT industry metric defined by the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines FFO as net income or loss (computed in accordance with GAAP), excluding (i) gains or losses from sales of depreciable real property, (ii) impairment write-downs on depreciable real property, plus (iii) real estate-related depreciation and amortization and (iv) similar adjustments for non-controlling interests and unconsolidated entities.

We also believe that adjusted FFO (“AFFO”) is a meaningful non-GAAP measure of our operating results. AFFO further adjusts FFO to reflect the performance of our portfolio by adjusting for items we believe are not directly attributable to our operations. Our adjustments to FFO to arrive at AFFO include removing the impact of (i) straight-line rental income, (ii) amortization of capitalized tax abatements, (iii) amortization of above- and below-market lease intangibles, (iv) amortization of deferred financing costs, (v) organization expenses advanced by the Adviser, as well as repayment of those expenses, (vi) unrealized losses (gains) from changes in fair value of financial instruments, (vii) non-cash share based compensation awards and amortization of unvested restricted stock awards, (viii) non-cash performance participation interest or other non-cash incentive compensation even if repurchased by us, (ix) debt extinguishment charges and (x) similar adjustments for non-controlling interests and unconsolidated entities. We may add additional adjustments from FFO to arrive at AFFO as appropriate.

We also believe FAD is a meaningful non-GAAP measure that provides useful information for considering our operating results and certain other items relative to the amount of our distributions by removing the impact of certain non-cash items from our operating results. FAD is calculated as AFFO excluding (i) realized losses (gains) on investments in financial instruments and (ii) management fees paid in shares of our common stock or INREIT OP units even if repurchased by us, and including deductions for (a) recurring tenant improvements, leasing commissions, and other capital projects, (b) stockholder servicing fees paid during the period, (c) certain operating expenses advanced by the Adviser, as well as repayment of those expenses, (d) accrued preferred return from preferred membership interest, (e) accrued preferred return from preferred equity investment, (f) accrued property incentive fees and (g) similar adjustments for non-controlling interests and unconsolidated entities. FAD is not indicative of cash available to fund our cash needs and does not represent cash flows from operating activities in accordance with GAAP, as it excludes adjustments for working capital items and actual cash receipts from interest income recognized on investments in commercial loans. Cash flows from operating activities in accordance with GAAP would generally be adjusted for such items. Furthermore, FAD is adjusted for stockholder servicing fees and recurring tenant improvements, leasing commissions and other capital expenditures, which are not considered when determining cash flows from operating activities in accordance with GAAP.

FFO, AFFO, and FAD should not be considered to be more relevant or accurate than the GAAP methodology in calculating net income (loss) or in evaluating our operating performance. In addition, FFO, AFFO, and FAD should not be considered as alternatives to net income (loss) as indications of our performance or as alternatives to cash flows from operating activities as indications of our liquidity, but rather should be reviewed in conjunction with these and other GAAP measurements. Further, FFO, AFFO, and FAD are not intended to be used as liquidity measures indicative of cash flow available to fund our cash needs, including our ability to make distributions to our stockholders. In addition, our methodology for calculating AFFO and FAD may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and accordingly, our reported AFFO and FAD may not be comparable to the AFFO and FAD reported by other companies.

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The following table presents a reconciliation of FFO, AFFO and FAD to net income (loss) attributable to our stockholders:

	Three Months Ended March 31,
in thousands	2025		2024
Net income (loss) attributable to our stockholders	$	(2,347)	$	896
Adjustments to arrive at FFO:
Real estate depreciation and amortization	7,056		6,024
Amount attributed to unconsolidated entities for real estate depreciation and amortization	2,415		2,240
Amount attributed to non-controlling interests for real estate depreciation and amortization	(1,691)		(672)
Amount attributed to unconsolidated entities for net gain on disposition of real estate	—		(106)
FFO attributable to our stockholders	5,433		8,382
Adjustments to arrive at AFFO:
Straight-line rental income	(145)		(175)
Amortization of capitalized tax abatement(1)	41		41
Amortization of above-market and below-market lease intangibles	(446)		(56)
Amortization of deferred financing costs	321		312
Unrealized losses (gains) from changes in the fair value of financial instruments(2)	1,180		(2,541)
Non-cash share based compensation awards	62		19
Amount attributed to unconsolidated entities for unrealized losses (gains) on fair value of financial instruments	541		393
Amount attributed to unconsolidated entities for above adjustments	60		(47)
Amount attributed to non-controlling interests for above adjustments	(344)		258
AFFO attributable to our stockholders	6,703		6,586
Adjustments to arrive at FAD:
Non-cash management fee	605		465
Recurring tenant improvements, leasing commissions and other capital expenditures(3)	594		(30)
Accrued preferred return from preferred membership interest	(300)		(285)
Accrued preferred return from preferred equity investment	(85)		(86)
Stockholder servicing fees	(46)		(38)
Recurring capital expenditures attributed to unconsolidated entities(3)	(1,221)		(861)
Recurring capital expenditures attributed to non-controlling interests(3)	800		14
Realized (gains) losses on financial instruments(4)	34		1,618
Accrued property incentive fees	(92)		1,023
FAD attributable to our stockholders	$	6,992	$	8,406

(1)We obtained a tax abatement in conjunction with our purchase of the 3101 Agler property with an expiration date of December 31, 2031. We are amortizing the tax abatement over its remaining useful life as a component of property operating expenses in the condensed consolidated statements of operations. As of March 31, 2025, accumulated amortization of the capitalized tax abatement was $0.5 million.

(2)Unrealized losses (gains) from changes in fair value of financial instruments primarily relates to mark-to-market changes on our investments in real estate-related securities, investment in affiliated fund, investments in commercial loans and derivatives.

(3)Recurring capital expenditures are required to maintain our investments. Capital expenditures exclude underwritten tenant improvements, leasing commissions and capital expenditures with useful lives over 10 years.

(4)Realized (gains) losses on financial instruments relates to the sale of real estate related securities, realized (gains) losses from derivative instruments and realized (gains) losses from our investment in affiliated fund.

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Net Asset Value

We calculate NAV in accordance with the valuation guidelines approved by our board of directors. We calculate our NAV for each class of shares based on the net asset values of our investments (including loans and real estate-related securities), the addition of any other assets (such as cash on hand), and the deduction of any liabilities (including mortgages, other indebtedness, the allocation/accrual of any performance participation to Invesco REIT Special Limited Partner L.L.C. (the “Special Limited Partner”) and the deduction of any stockholder servicing fees specifically applicable to such class of shares). NAV is not a measure used under GAAP and the valuations of and certain adjustments made to our assets and liabilities used in the determination of NAV will differ from GAAP. You should not consider NAV to be equivalent to stockholders’ equity or any other GAAP measure.

The following table reconciles stockholders’ equity under GAAP per our condensed consolidated balance sheets to our NAV:

in thousands	March 31, 2025		December 31, 2024
Stockholders' equity	$	103,377	$	102,268
Adjustments:
Class N redeemable common stock(1)	430,275		425,178
Unrealized net real estate and borrowings appreciation (depreciation)(2)	(7,434)		(27,036)
Accumulated depreciation and amortization(3)	98,061		108,062
Impairment of investments in real estate(7)	6,182		6,182
Organization costs, offering costs and certain operating expenses(4)	12,000		12,000
Redeemable non-controlling interests attributable to INREIT OP(5)	1,149		2,018
Accrued stockholder servicing fee(6)	2,569		2,490
Straight-line rent receivable(8)	(7,560)		(7,399)
Sale of interest in consolidated joint ventures(9)	(17,050)		—
Other	347		744
NAV	$	621,916	$	624,507

(1)MassMutual’s Class N shares have been classified as redeemable common stock, which is not a component of stockholders’ equity on our condensed consolidated balance sheets in this Quarterly Report on Form 10-Q, because MassMutual has the contractual right to redeem the shares under certain circumstances. MassMutual's redemption rights are not transferable. We include the value of these shares as a component of our NAV.

(2)Our investments in real estate are presented under historical cost in our condensed consolidated financial statements in this Quarterly Report on Form 10-Q. Additionally, our mortgage notes, revolving credit facility and financing obligation (“Borrowings”) are presented at their carrying value in our condensed consolidated financial statements. As such, any increases or decreases in the fair market value of our investments in real estate or our Borrowings are not included in our condensed consolidated financial statements. For purposes of determining our NAV, our investments in real estate and our Borrowings are recorded at fair value.

(3)We depreciate our investments in real estate and amortize certain other assets and liabilities in accordance with GAAP. Such depreciation and amortization, including depreciation and amortization related to our investments in unconsolidated entities, is excluded for purposes of determining our NAV.

(4)The Adviser advanced all of our operating expenses on our behalf through December 31, 2021. Beginning January 2022 and ceasing September 2022, we began ratably reimbursing the Adviser over 60 months for the operating expenses incurred prior to December 31, 2021 and will recommence reimbursements to the Adviser following the earlier of (1) the date our NAV reaches $1.0 billion and (2) December 31, 2027.

The Adviser advanced all of our organization and offering expenses (other than upfront selling commissions, dealer manager fees and ongoing stockholder servicing fees) incurred through December 31, 2022. We will reimburse the Adviser for all of our advanced expenses ratably over 60 months following the earlier of (1) the date that our NAV reaches $1.0 billion and (2) December 31, 2027.

Under GAAP, organization and operating costs are expensed as incurred and offering costs are charged to equity as such amounts are incurred. For NAV, all such costs will be recognized as a reduction to NAV as they are reimbursed ratably over 60 months. The adjustment presented represents the difference between the organization costs, offering costs and certain operating expenses advanced by the Adviser and the amount that has been reimbursed to the Adviser.

(5)The Class E units in the Operating Partnership held by the Special Limited Partner have been classified as redeemable non-controlling interest, which is not a component of stockholders’ equity on our condensed consolidated balance sheets in this Quarterly Report on Form 10-Q. We include the value of these units as a component of our NAV. These Class E units are classified as redeemable non-controlling interest in the Operating Partnership on our condensed consolidated balance sheets because Invesco REIT Special Limited Partner L.L.C. has the contractual right to redeem the units under certain circumstances.

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(6)Accrued stockholder servicing fee represents the accrual for the cost of the stockholder servicing fee for Class T, Class S, and Class D shares. Under GAAP, we accrued the full cost of the stockholder servicing fee payable over the life of each share (assuming such share remains outstanding the length of time required to pay the maximum stockholder servicing fee) as an offering cost at the time we sold the Class T, Class S, and Class D shares. For purposes of calculating NAV, we recognize the stockholder servicing fee as a reduction of NAV on a monthly basis when such fee is paid.

(7)We record impairment of investments in real estate in accordance with GAAP. Any impairment recorded for GAAP is excluded for purposes of determining our NAV.

(8)We record straight-line rent in accordance with GAAP. Any resulting straight-line rent receivable or liability is excluded for purposes of determining our NAV.

(9)Under GAAP, contributions where there is a reduction in the parent’s ownership interest but control is maintained are based on the carrying value of the property at the time of the transaction. Therefore, contributions from non-controlling interests in the property may not equal total consideration received. For purposes of determining our NAV, contributions from non-controlling interests are equal to total consideration received.

The following table provides a breakdown of the major components of our total NAV as of March 31, 2025:

in thousands, except share/unit data
Components of NAV	March 31, 2025		December 31, 2024
Investments in real estate	$	773,906	$	774,238
Investments in unconsolidated entities	148,708		148,905
Investments in real estate-related securities	57,253		56,472
Investment in commercial loan	12,168		12,996
Investment in affiliated fund	20,481		21,675
Cash and cash equivalents	140,800		48,820
Restricted cash	5,470		4,883
Other assets	9,670		4,395
Mortgage notes, revolving credit facility and financing obligation, net	(354,947)		(336,291)
Subscriptions received in advance	(1,345)		(835)
Other liabilities	(20,023)		(18,921)
Management fee payable	(412)		(359)
Accrued stockholder servicing fees	(16)		(16)
Non-controlling interests in joint-ventures	(169,797)		(91,455)
Net asset value	$	621,916	$	624,507
Number of outstanding shares/units	22,670,877		22,676,865

The following table provides a breakdown of our total NAV and NAV per share/unit by class as of March 31, 2025:

in thousands, except share/unit data
NAV Per Share/Unit	Class T Shares		Class S Shares		Class D Shares		Class I Shares		Class E Shares		Class N Shares		Operating Partnership Units(1)		Total
Net asset value	$	16,723	$	20,746	$	23,189	$	118,561	$	34,849	$	406,699	$	1,149	$	621,916
Number of outstanding shares/units	632,231		782,497		876,069		4,456,130		1,233,617		14,649,645		40,688		22,670,877
NAV Per Share/Unit as of March 31, 2025	$	26.4513	$	26.5123	$	26.4697	$	26.6063	$	28.2495	$	27.7617	$	28.2495

(1)Includes the limited partnership interest of the Operating Partnership held by the Special Limited Partner.

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Our real estate properties are valued by an independent advisor using a discounted cash flow methodology. The following table summarizes the weighted averages of the key unobservable inputs used in the March 31, 2025 valuations:

Property Type	Discount Rate	Exit Capitalization Rate
Healthcare	7.3%	5.8%
Office	8.8%	7.3%
Industrial	8.2%	5.9%
Self-Storage	7.8%	5.8%
Multifamily	7.3%	5.5%
Student Housing	7.5%	5.8%
Retail	8.4%	7.3%

These assumptions are determined by Capright and reviewed by the Adviser. A change in these assumptions would impact the calculation of the value of our property investments. For example, assuming all other factors remain unchanged, the changes listed below would result in the following effects on our investment values:

Input	Hypothetical Change	Healthcare Investment Values	Office Investment Values	Industrial Investment Values	Self-Storage Investment Values	Multifamily Investment Values	Student Housing Investment Values	Retail Investment Values
Discount Rate (weighted average)	0.25% decrease	+1.9%	+1.8%	+2.0%	+1.9%	+1.9%	+1.9%	+1.8%
Discount Rate (weighted average)	0.25% increase	(1.9)%	(1.7)%	(2.0)%	(1.8)%	(1.9)%	(1.8)%	(1.8)%
Exit Capitalization Rate (weighted average)	0.25% decrease	+2.8%	+2.1%	+2.9%	+2.7%	+3.0%	+2.7%	+1.9%
Exit Capitalization Rate (weighted average)	0.25% increase	(2.6)%	(1.9)%	(2.7)%	(2.5)%	(2.7)%	(2.5)%	(1.8)%

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Distributions

We generally intend to distribute substantially all of our taxable income, which does not necessarily equal net income as calculated in accordance with GAAP, to our stockholders each year to comply with the REIT provisions of the Code.

The net distribution varies for each class based on the applicable stockholder servicing fee, which is deducted from the monthly distribution per share and paid directly to the applicable distributor.

The table below details the net distribution for each of our share classes for the three months ended March 31, 2025:

Declaration Date	Class T Shares		Class S Shares		Class D Shares		Class I Shares		Class E Shares		Class N Shares
January 31, 2025	$	0.1310	$	0.1295	$	0.1361	$	0.1395	$	0.1395	$	0.1395
February 28, 2025	0.1296		0.1281		0.1341		0.1372		0.1372		0.1372
March 31, 2025	0.1310		0.1290		0.1361		0.1395		0.1395		0.1395
Total	$	0.3916	$	0.3866	$	0.4063	$	0.4162	$	0.4162	$	0.4162

For the three months ended March 31, 2025 and 2024, we declared distributions of $9.4 million and $9.0 million, respectively.

The following tables summarizes our distributions declared during the three months ended March 31, 2025 and 2024:

	Three Months Ended
	March 31, 2025				March 31, 2024
in thousands	Amount		Percentage		Amount		Percentage
Distributions
Payable in cash	$	3,670	39	%	$	3,713	41	%
Reinvested in shares	5,710		61	%	5,323		59	%
Total distributions	$	9,380	100	%	$	9,036	100	%
Sources of Distributions
Cash flows from operating activities	$	4,568	49	%	$	1,566	17	%
Distributions of capital from investments in unconsolidated entities(1)	3,050		33	%	1,148		13	%
Offering proceeds(3)	1,762		19	%	5,323		59	%
Financing proceeds	—		—	%	999		11	%
Total sources of distributions	$	9,380	100	%	$	9,036	100	%
Cash flows from operating activities	$	4,568			$	1,566
Funds from Operations(2)	$	5,433			$	8,382

(1)Represents distributions received from equity method investments that are classified as cash flows from investing activities. These equity method investments currently include our interest in a joint venture through which we own our interest in the Sunbelt Medical Office Portfolio, our preferred membership interest in San Simeon Preferred Equity, which owns a multifamily property, and our interest in a joint venture through which we hold our interests in a fully integrated retail platform operating company and non-controlling interests we own in thirteen retail properties. Distributions received from equity method investments are classified as either cash flows from operating or investing activities based on the cumulative earnings approach. See Note 2 — “Summary of Significant Accounting Policies” to our consolidated financial statements in the Annual Report on Form 10-K for the year ended December 31, 2024 for additional details on the cumulative earnings approach. In addition, this amount represents distributions from our investment in an affiliated fund. The distributions received from this investment are classified as investing activities.

(2)See “—Funds from Operations, Adjusted Funds from Operations and Funds Available for Distribution” above for description of Funds from Operations (“FFO”), for reconciliation of FFO to GAAP net income (loss) attributable to INREIT stockholders and for considerations on how to review this metric.

(3)Offering proceeds represents distributions reinvested in shares of our common stock at the shareholders election through our distribution reinvestment plan.

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Liquidity and Capital Resources

Liquidity

Our primary needs for liquidity and capital resources are to fund our investments, to make distributions to our stockholders, to repurchase shares of our common stock under our share repurchase plan, to pay our offering costs and operating fees and expenses and to pay interest on our borrowings. We will obtain the funds required to purchase investments and conduct our operations from the net proceeds of our Private Offerings, our Offering, DST Program and any future offerings we may conduct (collectively, the “Capital Raising Programs”), from secured and unsecured borrowings from banks and other lenders and from net cash provided by operating activities. Generally, cash needs for items other than asset acquisitions are met from operations, and cash needs for asset acquisitions are funded by our Capital Raising Programs and debt financings. However, there may be a delay between the sale of our shares and our purchase of assets that could result in a delay in the benefits to our stockholders, if any, of returns generated from our investment operations.

Our target leverage ratio is approximately 50% to 60%. As used herein, “leverage ratio” is measured by dividing (x) the sum of the Company’s consolidated property-level debt, entity-level debt and debt-on-debt, net of cash and restricted cash, by (y) the asset value of the Company’s real estate investments, private real estate debt investments and equity in the Company’s real estate-related securities portfolio (in each case measured using the greater of fair market value and cost), including the Company’s net investment in unconsolidated investments. For purposes of determining the asset value of the Company’s real estate investments, the Company includes the asset value of the DST Properties due to the master lease structure, including the Company’s fair market value purchase option. The leverage ratio calculation does not include (i) indebtedness incurred in connection with funding a deposit in advance of the closing of an investment, (ii) indebtedness incurred as other working capital advances, (iii) indebtedness on the Company’s real estate securities investments or (iv) the pro rata share of debt within the Company’s unconsolidated investments. Further, the refinancing of any amount of existing indebtedness will not be deemed to constitute incurrence of new indebtedness for purposes of the leverage ratio calculation so long as no additional amount of net indebtedness is incurred in connection therewith (excluding the amount of transaction expenses associated with such refinancing). Our charter prohibits us from borrowing more than 300% of our net assets, which approximates borrowing 75% of the cost of our investments. We may exceed this limit if a majority of our independent directors approves each borrowing in excess of the limit and we disclose the justification for doing so to our stockholders.

If we are unable to raise substantial funds in the Offering or Private Offerings, we will make fewer investments resulting in less diversification in terms of the type, number and size of investments we make. Further, we have certain fixed operating expenses, including certain expenses as a publicly offered REIT, regardless of whether we are able to raise substantial funds in the Offering and Private Offerings. Our inability to raise substantial funds would increase our fixed operating expenses as a percentage of gross income, reducing our net income and limiting our ability to make distributions.

The Adviser and its affiliates provide us with our management team, including our officers and appropriate support personnel. The Adviser or the Adviser's affiliates may provide us services that would otherwise be performed by third parties. In such event, we will reimburse the Adviser or the Adviser's affiliate the cost of performing such services provided that such reimbursements will not exceed the amount that would be payable if such services were provided by a third party in an arms-length transaction.

The Adviser advanced all of our operating expenses on our behalf through December 31, 2021. Beginning January 2022 and ceasing September 2022, we began ratably reimbursing the Adviser over 60 months for the operating expenses incurred prior to December 31, 2021 and will recommence reimbursements to the Adviser following the earlier of (1) the date that our NAV reaches $1.0 billion and (2) December 31, 2027. As of March 31, 2025 and 2024, we have $5.4 million, respectively, due to the Adviser for advanced operating expenses that are recorded as a component of due to affiliates on our condensed consolidated balance sheets.

The Adviser advanced all of our organization and offering expenses (other than upfront selling commissions, dealer manager fees, and ongoing stockholder servicing fees) incurred through December 31, 2022. We will begin reimbursing the Adviser for advanced organization and offering expenses upon the earlier of (1) the date that our NAV reaches $1.0 billion and (2) December 31, 2027. We will reimburse the Adviser for all of our advanced expenses ratably over 60 months following such date. As of March 31, 2025 and 2024, we have $6.8 million, respectively, due to the Adviser for advanced organization and offering expenses that are recorded as a component of due to affiliates on our condensed consolidated balance sheets.

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In January 2022, we began reimbursing the Adviser on a quarterly basis for operating expenses incurred subsequent to December 31, 2021. As of March 31, 2025 and December 31, 2024, we have $3.0 million and $4.9 million, respectively, due to the Adviser for operating expenses. The amount due to the Adviser is recorded as a component of due to affiliates on our condensed consolidated balance sheets.

In January 2023, we began reimbursing the Adviser on a quarterly basis for organization and offering expenses incurred subsequent to December 31, 2022. As of March 31, 2025 and December 31, 2024, we have $2.3 million and $1.4 million, respectively, due to the Adviser for organization and offering expenses that are recorded as a component of due to affiliates on our condensed consolidated balance sheets.

Under our charter, we may reimburse the Adviser, at the end of each fiscal quarter, for total operating expenses paid by the Adviser. However, we may not reimburse the Adviser at the end of any fiscal quarter for total operating expenses (as defined in our charter) that, in the four consecutive fiscal quarters then ended, exceed the greater of 2% of average invested assets or 25% of net income determined without reduction for any additions to reserves for depreciation, bad debts or other similar non-cash reserves and excluding any gain from the sale of our assets for that period (the “2%/25% Guidelines”).

We may reimburse the Adviser for expenses in excess of the 2%/25% Guidelines if a majority of our independent directors determines that such excess expenses (an “Excess Amount”) are justified based on unusual and non-recurring factors. Operating expenses for the four consecutive fiscal quarters ended March 31, 2025 did not exceed the charter-imposed limitation.

MassMutual committed to purchase $400.0 million of Class N common stock in our Class N Private Offering and fully met its commitment as of December 31, 2022.

Through June 30, 2025, we may choose to repurchase Class N shares from MassMutual on a monthly basis at the then current Class N transaction price in an amount with an aggregate repurchase price no greater than (1) the aggregate purchase price paid by MassMutual for Class N shares less (2) $200.0 million less (3) the aggregate repurchase price paid to MassMutual by us. In any month, however, MassMutual may require us to make or elect to forego the next monthly repurchase. Under the terms of MassMutual’s subscription agreements, through June 30, 2025, we may require MassMutual to purchase additional Class N shares in an amount equal to the aggregate purchase price paid by MassMutual for Class N shares that were subsequently repurchased by us.

Beginning January 1, 2026 and continuing until we have repurchased $200.0 million of MassMutual shares, we are required to repurchase MassMutual shares on a monthly basis, subject to thresholds based on monthly net offering proceeds. In any month, MassMutual may choose to waive our obligation to repurchase shares. We are required to limit repurchases to ensure that the aggregate NAV of MassMutual shares is at least $50.0 million.

Beginning January 1, 2026, MassMutual holds the right to request that we repurchase MassMutual shares on a monthly basis, subject to thresholds based on monthly net offering proceeds and the Company’s NAV. This right to request that we repurchase MassMutual shares is in addition to the requirement to repurchase MassMutual shares described in the preceding paragraph. We will not be required to repurchase (1) in any calendar year, more than $150.0 million of MassMutual shares or (2) in any calendar month, MassMutual shares with an aggregate repurchase price equal to more than 100% of the net proceeds to us from the sale of shares of our common stock during such month.

Capital Resources

INREIT OP has a Revolving Credit Facility with Bank of America, N.A. (“Bank of America”). The interest rate and spread terms are outlined below. The aggregate commitment is $100.0 million with an ability to request an increase up to $150.0 million in aggregate commitments. The maturity date is September 5, 2025. We anticipate maintaining a line of credit upon maturity of the existing Revolving Credit Facility.

Borrowings under the Revolving Credit Facility carry interest at a rate equal to (i) SOFR, (ii) SOFR with an interest period of one, three or six-months, or (iii) a Base Rate, where the base rate is the highest of (a) federal funds rate plus 0.5%, (b) the rate of interest as publicly announced by Bank of America N.A. as its “prime rate”, (c) SOFR with an interest period of one month plus 1.0%, or (d) 1.0%, in each case, plus an applicable margin that is based on our leverage ratio.

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As of March 31, 2025 and December 31, 2024, the Company did not have an outstanding principal balance on its revolving credit facility. An unused commitment fee of 0.25% accrues on the daily amount by which the aggregate commitments exceed the total outstanding balance of the Revolving Credit Facility. The weighted-average interest rate for the three months ended March 31, 2025 and 2024, were 6.12% and 7.11%, respectively. As of March 31, 2025, the borrowing capacity on the Revolving Credit Facility was $64.3 million. The borrowing capacity is less than the difference between the current facility capacity of $100.0 million and the current principal outstanding balance because the calculation of borrowing capacity is limited by the aggregate fair value and cash flows of our unencumbered properties.

As of March 31, 2025, we were in compliance with all loan covenants in our revolving credit facility agreement.

The following table summarizes certain characteristics of our mortgage notes that are secured by our properties:

in thousands						Principal Balance Outstanding
Indebtedness	Interest Rate(1)	Initial Maturity Date	Extended Maturity Date(5)	Maximum Principal Amount		March 31, 2025		December 31, 2024
The Carmin	S + 1.75%(2)	3/5/2026	3/5/2032	$	84,000	84,000		65,500
Cortlandt Crossing	3.13%	3/1/2027	N/A	$	39,660	39,660		39,660
Everly Roseland	S + 1.45%(3)	4/28/2027	4/28/2029	$	113,500	111,441		111,441
Midwest Industrial Portfolio	4.44% and S + applicable margin(4)	7/5/2027	N/A	$	70,000	70,000		70,000
Total mortgages payable						305,101		286,601
Deferred financing costs, net						(1,726)		(1,335)
Mortgage notes payable, net						$	303,375	$	285,266

(1)The term “S” refers to the relevant floating benchmark rate, SOFR.

(2)The weighted-average interest rate for the three months ended March 31, 2025 and March 31, 2024 was 6.15% and 7.09%, respectively.

(3)The weighted-average interest rate for the three months ended March 31, 2025 was 6.14% and 6.79%, respectively.

(4)The mortgage note secured by Meridian Business 940, Capital Park 2919, 3101 Agler and Earth City 13330 (collectively the “Midwest Industrial Portfolio”) bears interest at two rates. Of the $70.0 million principal balance, $35.0 million bears interest at a fixed rate of 4.44%, and $35.0 million bears interest at a floating rate of the greater of (a) 2.20% or (b) the sum of 1.70% plus SOFR. The weighted-average interest rate of the combined $70.0 million principal balance for the three months ended March 31, 2025 and 2024 was 5.41% and 5.74%, respectively. Subsequent to March 31, 2025, we repaid the mortgage note secured by these properties in connection with our buyout of the joint venture partner for the Meridian Business 940, Capital Park 2919 and 3101 Agler properties.

(5)We may elect to extend the maturity date upon meeting certain conditions, which may include payment of a non-refundable extension fee.

On February 28, 2025, we sold a 40% indirect leasehold interest in The Carmin student housing property and refinanced the mortgage note secured by the property. Proceeds from the new secured mortgage note were partially used to repay the existing mortgage. We incurred debt extinguishment charges of approximately $34,000 in connection with the refinancing of the mortgage note.

As of March 31, 2025, we were in compliance with all loan covenants in our mortgage notes.

In connection with the sale and leaseback of The Carmin property, as of March 31, 2025 we hold a financing obligation on our condensed consolidated balance sheets of $54.0 million, net of debt issuance costs.

See Note 10 — “Borrowings” to our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for a discussion of our borrowing arrangements.

Other potential future sources of capital include incremental secured or unsecured financings from banks or other lenders and proceeds from the sale of assets. If necessary, we may use financings or other sources of capital in the event of unforeseen significant capital expenditures. We have not yet identified any sources for these types of financings.

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At March 31, 2025, we had cash and cash equivalents of $140.8 million and restricted cash of $5.5 million. Our restricted cash consists of subscriptions received in advance, an interest reserve that we are contractually required to maintain on deposit under the terms of our preferred membership interest in a limited liability company, amounts in escrow for taxes and insurance related to mortgages at certain properties and security deposits.

We currently have no deposits or lines of credit with community or regional banking organizations, as such terms are defined by the Federal Reserve. The commercial loan we hold is a mezzanine loan for which the senior loan is held by a community or regional banking organization and in this case the senior loan is fully funded with no future funding obligation. Our Adviser and its affiliates use a formal bank monitoring program to seek to ensure a comprehensive and disciplined approach for the selection and ongoing monitoring of the financial institutions with whom funds and companies managed by our Adviser and its affiliates, such as our Company, do business. All financial institutions with which we do business must be initially approved by Invesco’s treasurer and are subject to ongoing monitoring.

Capital Uses

During periods when we are selling more shares than we are repurchasing, we primarily use our capital to acquire our investments, which we also fund with other capital resources. During periods when we are repurchasing more shares than we are selling, we primarily use our capital to fund repurchases. During the months ended January 31, 2025, February 28, 2025 and March 31, 2025, we received repurchase requests below the applicable repurchase limits under our Share Repurchase Plan and fulfilled all repurchase requests.

Our operating expenses include, among other things, the management fee we pay to the Adviser and the performance participation allocation that INREIT OP pays to the Special Limited Partner, both of which will impact our liquidity to the extent the Adviser or the Special Limited Partner elects to receive such payments in cash, or subsequently redeem shares or OP units previously issued to them. To date, the Adviser and the Special Limited Partner have both always elected to be paid in OP units, resulting in a non-cash expense.

Forward-Looking Statements Regarding Liquidity

We believe that with respect to liquidity, we are well positioned with $205.1 million of immediate liquidity as of March 31, 2025, made up of $64.3 million of undrawn capacity on our Revolving Credit Facility and $140.8 million of cash and cash equivalents. In addition, we hold $57.3 million in investments in real estate-related securities that could be liquidated to satisfy any potential liquidity requirements.

Cash Flows

The following table provides a breakdown of the net change in our cash and cash equivalents and restricted cash:

	Three Months Ended March 31,
in thousands	2025		2024
Cash flows provided by (used in) operating activities	$	4,568	$	1,566
Cash flows provided by (used in) investing activities	2,853		(6,634)
Cash flows provided by (used in) financing activities	85,790		9,813
Net increase (decrease) in cash and cash equivalents and restricted cash	$	93,211	$	4,745

Operating Activities

Cash flows provided by operating activities of $4.6 million for the three months ended March 31, 2025 consists of our net loss of $2.3 million adjusted for non-cash items and changes in assets and liabilities. The change in our assets and liabilities is primarily due to the timing of cash receipts and cash payments, including amounts we owe our affiliates.

Investing Activities

Cash flows provided by investing activities increased $9.5 million during the three months ended March 31, 2025 compared to the corresponding period in 2024 primarily due to a decrease in purchases of and proceeds from the sale of real estate-related securities.

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Financing Activities

Cash flows provided by financing activities increased $76.0 million for the three months ended March 31, 2025 compared to the corresponding period in 2024 primarily due to an increase in contributions from non-controlling interests and proceeds from our DST Program of $58.4 million, an increase in net proceeds from borrowings of $18.5 million from the mortgages payable in connection with The Carmin refinancing, cash proceeds from the sale of an interest in one of our consolidated joint ventures of $9.4 million and a decrease in common stock repurchases of $7.1 million. This increase was partially offset by a decrease in proceeds from issuances of common stock of $10.9 million and a decrease in subscriptions received in advance of $5.5 million

Critical Accounting Policies and Estimates

There have been no significant changes to our critical accounting policies and estimates that are disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.

Pending Accounting Pronouncements

There have been no significant changes to the status of our adoption of the recently issued accounting pronouncement that is disclosed in our Annual Report on Form 10-K for the year ended December 31, 2024.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The primary components of our market risk are related to interest rates, credit and real estate values. While we do not seek to avoid risk completely, we believe that risk can be quantified from historical experience, and we seek to actively manage that risk, to earn sufficient compensation to justify taking those risks and to maintain capital levels consistent with the risks we undertake.

Interest Rate Risk

We are exposed to interest rate changes primarily as a result of long-term debt used to maintain liquidity, fund capital expenditures and expand our investment portfolio and operations. Market fluctuations in real estate financing affect the availability and cost of funds needed to expand our investment portfolio. In addition, restrictions upon the availability of real estate financing or high interest rates for real estate loans could adversely affect our ability to dispose of real estate in the future. We seek to limit the impact of interest rate changes on earnings and cash flows and to lower our overall borrowing costs. We use derivative financial instruments to hedge exposures to changes in interest rates on loans secured by our assets.

Interest rate risk is highly sensitive to many factors, including governmental, monetary and tax policies, domestic and international economic and political considerations and other factors beyond our control. We are subject to interest rate risk in connection with floating rate debt secured by our properties, our Revolving Credit Facility, our investments in real estate securities, our investment in a commercial loan and our investment in an affiliated debt fund. We are also subject to interest rate risk through our investments in unconsolidated entities that have been financed with floating rate debt. We seek to manage our exposure to interest rate risk by utilizing a combination of fixed- and floating-rate financing with staggered maturity dates and through interest rate protection agreements to cap a portion of our variable rate debt. Additionally, we may hedge our interest rate risk by using derivative contracts to fix the interest expense on a portion of our floating-rate debt.

Certain of our mortgage notes and Revolving Credit Facility financings are variable rate and indexed to SOFR. As of March 31, 2025, we had borrowed $305.1 million under our mortgage notes and fully repaid the Revolving Credit Facility. Of our total borrowings, $230.4 million bears variable rate interest. As of March 31, 2025, a 100 basis point increase or decrease in SOFR assuming no changes in the composition of our borrowings over a twelve-month period results in a projected increase of $0.6 million or projected decrease of $0.9 million in interest expense, respectively, net of the impact of our interest rate hedges.

We have invested a portion of our portfolio in fixed and floating rate real estate-related debt securities. On floating-rate securities, our net income will increase or decrease depending on interest rate movements. As of March 31, 2025, a 100 basis point increase or decrease in SOFR assuming no changes in the composition of our portfolio of real estate-related securities over a twelve-month period results in a projected increase or decrease in interest income of $0.4 million.

As of March 31, 2025, we have originated a $12.2 million variable rate mezzanine commercial loan that is indexed to SOFR. As of March 31, 2025, a 100 basis point increase or decrease in SOFR assuming no changes in the composition of our commercial loan results in a projected increase of $0.3 million or projected decrease of $0.2 million in interest income, respectively.

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Credit Risk

We are exposed to credit risk with respect to the tenants that occupy properties we own. To mitigate this risk, we undertake a credit evaluation of major tenants prior to making an investment. This analysis includes extensive due diligence of a potential tenant’s creditworthiness and business, as well as an assessment of the strategic importance of the property to the tenant’s core business operations.

Additionally, we are exposed to credit risk in the real estate-related debt investments that we make with respect to a borrower’s ability to make required interest and principal payments on scheduled due dates. We manage this risk by conducting a credit analysis prior to making an investment and by actively monitoring our portfolio and the underlying credit quality, including subordination and diversification of our real estate-related debt portfolio. In addition, we re-evaluate the credit risk inherent in our investments on a regular basis under fundamental considerations such as gross domestic product, unemployment, interest rates, retail sales, store closing/openings, corporate earnings, housing inventory, affordability and regional home price trends.

Finally, we may be exposed to counterparty credit risk under the terms of a derivative contract. If the fair value of a derivative contract is positive, the counterparty will owe us, which creates credit risk for us. If the fair value of a derivative contract is negative, we will owe the counterparty and, therefore, do not have credit risk. We will seek to minimize the credit risk in derivative instruments by entering into transactions with high-quality counterparties. As of March 31, 2025, we held derivative instruments with a fair value of $0.7 million.

Real Estate Market Value Risks

Commercial property values are subject to volatility and may be adversely affected by a number of factors, including but not limited to: national, regional and local economic conditions (which may be adversely affected by industry slowdowns and other factors); local real estate conditions; changes or continued weakness in specific industry segments; construction quality, age and design; demographic factors; and retroactive changes to building or similar codes. Changes in commercial property values are difficult to predict with accuracy. We model a range of valuation scenarios and the resulting impacts to our business.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

An evaluation of the effectiveness of the design and operation of our “disclosure controls and procedures” (as defined in Rule 13a-15(e) and 15(d)-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), as of the end of the period covered by this Quarterly Report was made under the supervision and with the participation of our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”). Based upon this evaluation, our CEO and CFO have concluded that as of the end of the period covered by this Quarterly Report our disclosure controls and procedures (a) are effective to reasonably ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by SEC rules and forms and (b) include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.

Changes in Internal Controls over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) that occurred during the quarter ended March 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of March 31, 2025, we were not involved in any material legal proceedings.

ITEM 1A. RISK FACTORS

There were no material changes during the period covered by this Quarterly Report to the risk factors previously disclosed in Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS AND ISSUER PURCHASES OF EQUITY SECURITIES

Unregistered Sales of Equity Securities

On January 2, 2025, we issued 6,050 unregistered Class E shares of common stock to the Adviser for payment of management fees for total consideration of $0.2 million.

On February 1, 2025, we issued 6,586 unregistered Class E shares of common stock to the Adviser for payment of management fees for total consideration of $0.2 million.

On March 3, 2025, we issued 6,810 unregistered Class E shares of common stock to the Adviser for payment of management fees for total consideration of $0.2 million.

On January 10, 2025, we issued 276 unregistered Class E shares of common stock as part of the distribution reinvestment program for total consideration of approximately $8,000.

On February 10, 2025, we issued 278 unregistered Class E shares of common stock as part of the distribution reinvestment program for total consideration of approximately $8,000.

On March 11, 2025, we issued 276 unregistered Class E shares of common stock as part of the distribution reinvestment program for total consideration of approximately $8,000.

On January 10, 2025, we issued 60,822 unregistered Class N shares of common stock as part of the distribution reinvestment program for total consideration of $1.7 million.

On February 10, 2025, we issued 61,337 unregistered Class N shares of common stock as part of the distribution reinvestment program for total consideration of $1.7 million.

On March 11, 2025, we issued 60,725 unregistered Class N shares of common stock as part of the distribution reinvestment program for total consideration of $1.7 million.

The transactions described above were exempt from the registration provisions of the Securities Act by virtue of Section 4(a)(2) thereof because they were not part of any public offering and did not involve any general solicitation or general advertising.

Issuer Purchases of Equity Securities

We have adopted a share repurchase plan, whereby on a monthly basis, stockholders may request that we repurchase all or any portion of their shares of any class, subject to the terms and conditions of the share repurchase plan. We may choose to repurchase all, some or none of the shares that have been requested to be repurchased in any month, in our discretion, subject to any limitations in the share repurchase plan.

The aggregate amount of share repurchases is limited to no more than 2% of our aggregate NAV per month (measured using the aggregate NAV as of the end of the immediately preceding month) and no more than 5% of our aggregate NAV per calendar quarter (measured using the aggregate NAV as of the end of the immediately preceding three months).

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Under our share repurchase plan, to the extent we choose to repurchase shares in any month, we will only repurchase shares as of the opening of the last calendar day of that month (each such date, a “Repurchase Date”). Repurchases will be made at the transaction price in effect on the Repurchase Date, except that shares that have not been outstanding for at least one year will be repurchased at 95% of the transaction price, subject to certain limited exceptions. Should repurchase requests, in our judgment, place an undue burden on our liquidity, adversely affect our operations or risk having an adverse impact on our company as a whole, or should we otherwise determine that investing our liquid assets in real properties or other investments rather than repurchasing our shares is in the best interests of our company as a whole, we may choose to repurchase fewer shares in any month than have been requested to be repurchased, or none at all. Further, our board of directors may make exceptions to modify or suspend our share repurchase plan if it deems such action to be in our best interest and the best interest of our stockholders.

If the transaction price for the applicable month is not made available by the tenth business day prior to the last business day of the month (or is changed after such date), then no repurchase requests will be accepted for such month and stockholders who wish to have their shares repurchased the following month must resubmit their repurchase requests.

During the three months ended March 31, 2025, we repurchased shares of our common stock in the following amounts:

Month of:	Total Number of Shares Repurchased(1)	Average Price Paid per Share		Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs(2)	Maximum Number of Shares Pending Repurchase Pursuant to Publicly Announced Plans or Programs (3)
January 2025	134,616	$	25.01	129,998	—
February 2025	19,378	20.33		14,761	—
March 2025	201,121	26.01		196,504	—
	355,115	$	25.32	341,263	—

(1)The Total Number of Shares Repurchased and Average Price Paid per Share includes 13,852 Class E common shares held by the Adviser repurchased outside of the share repurchase plan, with an average price paid per share of $28.29, related to shares that were previously issued to the Adviser as payment of management fees.

(2)Publicly announced plans or programs include share repurchases under our share repurchase plan, if any.

(3)All repurchase requests under our share repurchase plan were satisfied.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS

Exhibit Number	Exhibit Description
3.1	Second Articles of Amendment and Restatement of Invesco Real Estate Income Trust Inc. (filed as Exhibit 3.1 to the Company’s Registration Statement on Form S-11 filed on March 31, 2021 and incorporated herein by reference).
3.2	Bylaws of Invesco Real Estate Income Trust Inc. (filed as Exhibit 3.2 to the Company’s Registration Statement on Form S-11 filed on March 31, 2021 and incorporated herein by reference).
4.1	Distribution Reinvestment Plan (filed as Exhibit 4.1 on Form 10-Q filed on May 12, 2023 and incorporated herein by reference).
10.1	Amended and Restated Advisory Agreement, dated November 10, 2023, by and among Invesco Real Estate Income Trust Inc., Invesco REIT Operating Partnership LP, and Invesco Advisors, Inc. (filed as Exhibit 10.2 to the Quarterly Report on Form 10-Q as filed on November 13, 2023 and incorporated herein by reference).
10.2	Amended and Restated Limited Partnership Agreement of Invesco REIT Operating Partnership LP., dated March 20, 2025. (filed as Exhibit 10.3 to the Annual Report on Form 10-K as filed on March 24, 2025 and incorporated herein by reference).
10.3	Amended and Restated Dealer Manager Agreement, dated March 20, 2025, by and between Invesco Real Estate Income Trust Inc. and Invesco Distributors, Inc. (filed as Exhibit 10.4 to the Annual Report on Form 10-K, as filed on March 24, 2025 and incorporated herein by reference).
10.4	Amended and Restated DST Dealer Manager Agreement, dated March 20, 2025, by and among Invesco Real Estate Exchange LLC, Invesco REIT Operating Partnership LP and Invesco Distributors, Inc. (filed as Exhibit 10.17 to the Annual Report on Form 10-K as filed on March 24, 2025 and incorporated herein by reference).
31.1*	Certification of Chief Executive Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*	Certification of Chief Financial Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**	Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**	Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, formatted in iXBRL (inline eXtensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Operations; (iii) Condensed Consolidated Statements of Changes in Equity and Redeemable Equity Instruments; and (iv) Condensed Consolidated Statements of Cash Flows
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)
* Filed herewith
** Furnished herewith

The agreements and other documents filed as exhibits to this quarterly report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Invesco Real Estate Income Trust Inc.
	/s/ R. Scott Dennis
	R. Scott Dennis
	Chairperson of the Board and Chief Executive Officer
	(Principal Executive Officer)
	/s/ Courtney Popelka
	Courtney Popelka
	Chief Financial Officer
	(Principal Financial Officer and Principal Accounting Officer)
Date: May 12, 2025

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