UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

FORM 10-Q

 

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended December 31, 2024

 

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: 000-56432

 

 

 

Wellings Real Estate Income Fund

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   88-6163167
(State or Other Jurisdiction of
Incorporation or Organization)
 

(I.R.S. Employer

Identification No.)

  

14805 Forest Road, Suite 203

Forest, VA 24551

(Address of principal executive offices) (Zip Code)

  

800-844-2188

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

None

 

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  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  No 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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 Smaller reporting company
    Emerging growth company

 

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.

 

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

 

 

 

 

 

 

Wellings Real Estate Income Fund

 

INDEX

 

PART I FINANCIAL INFORMATION
     
Item 1. Consolidated Financial Statements 1
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 18
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 25
     
Item 4. Controls and Procedures 25
     
PART II OTHER INFORMATION 26
     
Item 1. Legal Proceedings 26
     
Item 1A. Risk Factors 26
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26
     
Item 3. Defaults Upon Senior Securities 26
     
Item 4. Mine Safety Disclosures 26
     
Item 5. Other Information 26
     
Item 6. Exhibits 27

 

i

 

 

FORWARD-LOOKING STATEMENTS

 

This report, including, without limitation, statements under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” contains forward-looking statements that involve substantial known and unknown risks, uncertainties and other factors. Undue reliance should not be placed on such statements. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about Wellings Real Estate Income Fund (“WREIF”), current and prospective portfolio investments, industry, beliefs and (“WREIF”) assumptions. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond (“WREIF”) control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including:

 

  business prospects and the prospects of (“WREIF”) portfolio companies;

 

  changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets;

 

  the ability of Wellings Capital Management, LLC (the “Investment Adviser”) to locate suitable investments for (“WREIF”) and to monitor and administer (“WREIF”) investments;

 

  the ability of the Investment Adviser and its affiliates to attract and retain highly talented professionals;

 

  risk associated with possible disruptions in (“WREIF”) operations or the economy generally;

 

  the timing of cash flows, if any, from the operations of the companies in which (“WREIF”) invests;

 

  the ability of the companies in which (“WREIF”) invests to achieve their objectives;

 

  the dependence of (“WREIF”) future success on the general economy and its effect on the industries in which (“WREIF”) invests;

 

  the use of borrowed money to finance a portion of (“WREIF”) investments;

 

  the adequacy, availability and pricing of (“WREIF”) financing sources and working capital;

 

  actual or potential conflicts of interest with the Investment Adviser and its affiliates;

 

  contractual arrangements and relationships with third parties;

 

  the economic downturn, interest rate volatility, loss of key personnel, and the illiquid nature of investments; and

 

  the risks, uncertainties and other factors identified under “Item 1A. Risk Factors” and elsewhere in this Report.

 

Although (“WREIF”) believes that the assumptions on which these forward-looking statements are based are reasonable, any of the assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. New risks and uncertainties emerge from time to time, and it is not possible for (“WREIF”) to predict all risks and uncertainties, nor can (“WREIF”) assess the impact of all factors on (“WREIF”) business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Report should not be regarded as a representation that (“WREIF”) plans and objectives will be achieved. These risks and uncertainties include those described or identified in the section entitled “Item 1A. Risk Factors” and elsewhere in this Report. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this Report. Moreover, (“WREIF”) assumes no duty and does not undertake to update the forward-looking statements.

 

ii

 

 

PART I
 

FINANCIAL INFORMATION

 

Item 1. Consolidated Financial Statements

 

WELLINGS REAL ESTATE INCOME FUND

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

 

   December 31,     
   2024   March 31, 
   (unaudited)   2024 
ASSETS        
Non-Control/Non-Affiliate Investments, at fair value (cost $8,849,346 and $11,500,000, respectively)  $9,078,836   $11,876,068 
Non-Control/Affiliate Investments, at fair value (cost $32,173,633 and $13,366,959, respectively)   35,628,207    14,004,486 
Control Investments, at fair value (cost $18,859,555 and $23,040,255, respectively)   19,435,125    25,030,445 
Short-Term Investments, at fair value (cost $16,666,507 and $9,315,090, respectively)   16,666,507    9,315,090 
Total Investments, at fair value (cost $76,549,041 and $57,222,304, respectively)   80,808,675    60,226,089 
Receivable from Adviser for reimbursement of organizational expense and offering costs   
-
    47,451 
Other assets   7,319    
-
 
TOTAL ASSETS   80,815,994    60,273,540 
           
LIABILITIES          
Payable to Adviser   
-
    47,451 
Incentive fee payable   851,927    600,757 
Professional fees payable   196,995    213,556 
Directors and officers expense payable   23,955    14,020 
Fee income received in advance   110,000    
-
 
Distributions received in advance   414,788    317,784 
Other payables   71,563    62,482 
TOTAL LIABILITIES   1,669,228    1,256,050 
           
TOTAL NET ASSETS OF WELLING REAL ESTATE INCOME FUND  $74,459,266   $59,017,490 
Non-controlling interest in Wellings Icarus PE Member I, LLC   4,687,500    
-
 
TOTAL NET ASSETS  $79,146,766   $59,017,490 
           
COMMITMENTS AND CONTINGENCIES (NOTE 4)   
 
    
 
 
           
NET ASSETS CONSIST OF:          
Paid-in capital  $67,540,557   $55,306,491 
Accumulated distributable gain   6,918,709    3,710,999 
TOTAL NET ASSETS OF WELLING REAL ESTATE INCOME FUND  $74,459,266   $59,017,490 
Non-controlling interest in Wellings Icarus PE Member I, LLC   4,687,500    
-
 
TOTAL NET ASSETS  $79,146,766   $59,017,490 
           
SHARES ISSUED AND OUTSTANDING (Unlimited number of Shares authorized)   72,273    57,585 
           
NET ASSET VALUE PER SHARE  $1,030.25   $1,024.87 

 

See accompanying notes to unaudited consolidated financial statements

 

1

 

WELLINGS REAL ESTATE INCOME FUND

CONSOLIDATED SCHEDULE OF INVESTMENTS

AS OF DECEMBER 31, 2024

(UNAUDITED)

 

         Initial          Percent 
      Geographic  Acquisition          of Total 
Portfolio Company/Type of Investment (1)(12)  Industry  Region  Date  Cost   Fair Value   Net Assets % 
Non-Control/Non-Affiliate Investments (2)                     
514 That Way LLC (3)(4)(5)                     
Preferred Equity, Membership Interests  Multifamily  United States  8/12/2024  $553,825   $553,825    0.70 
Parkview Financial Fund 2015, LP (3)(4)                        
Common Equity, Limited Partner Interests  Multifamily  United States  12/2/2022   3,000,000    2,760,621    3.49 
LBX Deptford Investors LLC (3)(4)(5)†                        
Common Equity, Membership Interests  Retail  United States  12/13/2022   750,000    770,000    0.97 
Post Bellaire Partners LLC (3)(4)(5)†                        
Common Equity, Membership Interests  Multifamily  United States  9/14/2022   537,593    553,000    0.70 
Post Las Colinas Heights Partners LLC (3)(4)(5)†                        
Common Equity, Membership Interests  Multifamily  United States  3/1/2023   585,000    729,600    0.92 
Post Oak Forest Partners LLC (3)(4)(5)†                        
Common Equity, Membership Interests  Multifamily  United States  3/1/2023   915,000    1,116,269    1.41 
Post Providence Partners LLC (3)(4)(5)†                        
Common Equity, Membership Interests  Multifamily  United States  9/14/2022   462,407    501,000    0.63 
Post TX I Partners LLC (3)(4)(5)†                        
Common Equity, Membership Interests  Multifamily  United States  8/29/2023   750,000    799,000    1.01 
SROA Capital Fund VIII GP Co-Investment LLC (3)(5)                        
Common Equity, Membership Interests  Self Storage  United States  9/19/2024   1,295,521    1,295,521    1.64 
Total Non-Control/Non-Affiliate Investments            8,849,346    9,078,836    11.47 
                         
Non-Control/Affiliate Investments (2)                        
Crystal View Capital Fund IV, LP (3)(4)(5)(8)*†                        
Common Equity, Limited Partner Interests  Self Storage & Manufactured Housing Community  United States  11/30/2022   12,500,000    14,034,000    17.73 
Great Escapes RV Fund IV, LP (3)(5)*†                        
Common Equity, Limited Partner Interests  Recreational Vehicle Parks  United States  7/1/2022   4,000,000    4,400,000    5.56 
LBX Fair Oaks Investors LLC (3)(4)(5)†                        
Common Equity, Membership Interests  Retail  United States  5/2/2023   1,000,000    1,301,900    1.64 
LBX Fashion Square Investors LLC (3)(4)(5)†                        
Common Equity, Membership Interests  Retail  United States  5/2/2023   750,000    881,000    1.11 
LBX Manchester Investors LLC (3)(4)(5)†                        
Common Equity, Membership Interests  Retail  United States  5/1/2023   633,859    676,900    0.86 
LBX Mount Prospect Investors LLC (3)(4)(5)                        
Common Equity, Membership Interests  Retail  United States  8/11/2022   760,000    740,000    0.93 
Newark-Forest MHPS LLC (3)(4)(5)†                        
Common Equity, Membership Interests  Manufactured Housing Community  United States  11/8/2022   640,000    680,000    0.86 
Post Sandstone Partners LLC (3)(4)(5)†                        
Common Equity, Membership Interests  Multifamily  United States  10/24/2022   700,000    813,000    1.03 
PR Estates JB LLC (3)(4)(5)†                        
Preferred Equity, Membership Interests  Multifamily  United States  5/6/2024   547,696    623,584    0.79 
Riparian Baltimore SFR Investors I LLC (3)(4)(5)*†                        
Preferred Equity, Membership Interests  Single Family  United States  3/21/2023   5,000,000    5,364,486    6.78 
Common Equity, Membership Interests  Single Family  United States  3/21/2023   250,000    375,514    0.47 
SCC Flint River Holdings, LP (3)(4)(5)(7)†                        
Preferred Equity, Limited Partner Interests  Multifamily  United States  12/15/2023   2,792,078    2,997,216    3.79 
TC-BKM US Industrial Fund I, LP (3)(4)†                        
Common Equity, Limited Partner Interests  Light Industrial  United States  7/20/2022   2,600,000    2,740,607    3.46 
Total Non-Control/Affiliate Investments            32,173,633    35,628,207    45.01 
                         
Control Investments (2)                        
Fairbridge Credit LLC (3)(4)(5)(9)*                        
Preferred Equity, Membership Interests  Multifamily  United States  8/21/2023   5,000,000    5,000,000    6.32 
Fairbridge Grand Hampton LLC (3)(4)(5)*†                        
Preferred Equity, Membership Interests  Multifamily  United States  5/19/2023   3,484,278    3,940,468    4.98 
Madison Terrace Group LLC (3)(4)(5)(10)†                        
Preferred Equity, Membership Interests  Multifamily  United States  3/7/2024   2,875,277    2,994,657    3.78 
Icarus Wellings JV LLC (3)(4)(5)(6)*                        
Preferred Equity, Membership Interests  Multifamily  United States  11/26/2024   7,500,000    7,500,000    9.48 
Total Control Investments            18,859,555    19,435,125    24.56 
                         
Short-Term Investments                        
Fidelity U.S. Government Money Market Portfolio Fund (11)                        
Institutional Class     United States  12/31/2024   16,666,507    16,666,507    21.06 
Total Short-Term Investments            16,666,507    16,666,507    21.06 
                         
Total Investments           $76,549,041    80,808,675    102.10 
Liabilities in Excess of Other Assets                 (1,661,909)   (2.10)
Total Net Assets                $79,146,766    100.00%

 

(1) Unless otherwise indicated, issuers of investments held by WREIF are denominated in U.S. dollars and do not issue units or shares. All equity investments are non-income producing unless otherwise noted. Certain portfolio company investments are subject to contractual restrictions on sales. All of WREIF investments are issued by eligible U.S. portfolio companies, as defined in the Investment Company Act of 1940, as amended, or the 1940 Act.
(2) Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments. Control Investments generally are defined by the 1940 Act, as investments in companies in which WREIF owns more than 25% of the company’s capital and/or has the power to exercise control over the management or policies of the company. Affiliate Investments generally are defined by the 1940 Act as investments in companies in which WREIF owns between 5% and 25% of the company’s capital.
(3) Investment is restricted as to resale. As of December 31, 2024, the total cost and fair value of investments subject to restrictions on sales was $59,882,534 and $64,142,168, representing 75.7% and 81.0% of total net assets, respectively.
(4) Income producing.
(5) Investment is classified as Level 3 investment under the fair value hierarchy established by ASC 820, Fair Value Measurement, as its valuation relies on significant unobservable inputs. Investment is valued using methodologies that include transaction price, income approach, and market comparables. For recently acquired investments, the transaction price is deemed representative of fair value. Certain investments are valued based on the income approach, where future expected cash flows are discounted at a rate reflective of the risk inherent to the investment, while other investments are valued using comparable sales data adjusted for differences in location, size, or asset class. Significant unobservable inputs used in these valuations include discount rates, projected rental income growth rates, and exit capitalization rates. The aggregate fair value of all Level 3 investments as of December 31, 2024 is $58,640,940. Changes in the fair value of these investments, which are primarily attributable to updates in discount rates, market conditions, or projected future cash flows, are recognized in the consolidated statement of operations.
(6) Investment is held through Wellings Icarus PE Member I, LLC, a consolidated subsidiary. The non-controlling interest in the underlying investment, Icarus Wellings JV LLC, is $4,687,500.
(7) Investment is held through WREIF ownership interest in SCC Flint River JV, LP, which in turn invests in SCC Flint River Holdings, LP.
(8) As of December 31, 2024, Crystal View Capital Fund IV, L.P. held sixteen real estate assets comprised of Mountain Vista Mini Storage NV, Speedway Storage, Federal Storage, Sales Road Storage, Osprey Storage Huntsville, Discount Mini Storage, Alice’s Attic Self Storage, Fairfield Manor, Clover Estates, Mountain Vista North Mini Storage NV, Warwick Villa Mobile Home Park, Royal Village Mobile Home Park, Pine Vista Mobile Home Park, Apple Creek Mobile Home Park, Parktown Mobile Home Park, and Countryside Mobile Home Park. WREIF proportionate share of the acquisition amount including allocations made to goodwill of the assets was approximately $455,335, $470,023, $146,882, $470,023, $300,815, $271,732, $659,502, $723,412, $1,358,662, $367,206, $95,474, $132,194, $697,691, $1,077,338, $396,700, $406,056, and $8,040,045, respectively.
(9) Investment is held through WREIF ownership interest in Fairbridge PE Member LLC, which in turn invests in Fairbridge Credit, LLC.
(10) Investment is held through WREIF ownership interest in Madison Terrace JV LLC, which in turn invests in Madison Terrace Group, LLC.
(11) 4.38% seven-day annualized yield as of December 31, 2024.

(12)The following tables represent the composition of the portfolio by investment type and industry category as of December 31, 2024:

* Investment represents more than 5% of the total net assets. Nothing held at these underlying investments represent more than 5% of the total net assets.
Investment is in an unrealized appreciation position and is subject to incentive fees. (Note 3)

 

The following tables represent the composition of the portfolio by investment type and industry category as of December 31, 2024:

 

Investment Type  Cost   Fair Value   Percent of
Total Net
Assets %
 
Common equity, limited partnership and membership interest  $32,129,380   $35,167,932    44.42%
Preferred equity, limited partnership and membership interest   27,753,154    28,974,236    36.62 
Total real estate investments   59,882,534    64,142,168    81.04 
Money market investment   16,666,507    16,666,507    21.06 
Total Investments  $76,549,041   $80,808,675    102.10%

 

Industry Category  Cost   Fair Value   Percent of
Net Assets
 
Multifamily  $29,703,154   $30,882,240    39.03%
Single family   5,250,000    5,740,000    7.25 
Self Storage & Manufactured Housing Community   14,435,521    16,009,521    20.23 
Recreational vehicle parks   4,000,000    4,400,000    5.56 
Retail   3,893,859    4,369,800    5.51 
Light industrial   2,600,000    2,740,607    3.46 
Total real estate investments   59,882,534    64,142,168    81.04 
Money market investment   16,666,507    16,666,507    21.06 
Total Investments  $76,549,041   $80,808,675    102.10%

 

See accompanying notes to unaudited consolidated financial statements

 

2

 

WELLINGS REAL ESTATE INCOME FUND

CONSOLIDATED SCHEDULE OF INVESTMENTS

AS OF MARCH 31, 2024

 

         Initial            
      Geographic  Acquisition          Percent of
Total
 
Portfolio Company/Type of Investment (1)(11)  Industry  Region  Date  Cost   Fair Value   Net Assets % 
Non-Control/Non-Affiliate Investments (2)                     
Parkview Financial Fund 2015, L.P. (3)(4)*                     
Common Equity, Limited Partner Interests  Multifamily  United States  12/2/2022  $3,000,000   $2,990,768    5.07 
Post Bellaire Partners LLC (3)(4)(5)†                        
Common Equity, Membership Interests  Multifamily  United States  9/14/2022   537,593    553,000    0.94 
Post Las Colinas Heights Partners LLC (3)(5)†                        
Common Equity, Membership Interests  Multifamily  United States  3/1/2023   585,000    617,700    1.05 
Post Providence Partners LLC (3)(4)(5)†                        
Common Equity, Membership Interests  Multifamily  United States  9/14/2022   462,407    501,000    0.85 
Post Oak Forest Partners LLC (3)(5)†                        
Common Equity, Membership Interests  Multifamily  United States  3/1/2023   915,000    954,600    1.62 
Post TX I Partners LLC (3)(4)(5)†                        
Common Equity, Membership Interests  Multifamily  United States  8/29/2023   750,000    799,000    1.34 
Riparian Baltimore SFR Investors I LLC (3)(5)*†                        
Preferred Equity, Membership Interests  Single Family  United States  3/21/2023   5,000,000    5,100,000    8.64 
Common Equity, Membership Interests  Single Family  United States  3/21/2023   250,000    360,000    0.61 
Total Non-Control/Non-Affiliate Investments            11,500,000    11,876,068    20.12 
                         
Non-Control/Affiliate Investments (2)                        
Great Escapes RV Fund IV, L.P. (3)(5)*                        
Common Equity, Limited Partner Interests  Recreational Vehicle Parks  United States  7/1/2022   4,000,000    3,953,800    6.70 
Newark-Forest MHPS LLC (3)(5)†                        
Common Equity, Membership Interests  Manufactured Housing Community  United States  11/8/2022   640,000    650,500    1.10 
LBX Deptford Investors LLC (3)(4)(5)†                        
Common Equity, Membership Interests  Retail  United States  12/13/2022   750,000    770,000    1.31 
LBX Fashion Square Investors LLC (3)(4)(5)†                        
Common Equity, Membership Interests  Retail  United States  5/2/2023   750,000    775,900    1.31 
LBX Fair Oaks Investors LLC (3)(4)(5)†                        
Common Equity, Membership Interests  Retail  United States  5/2/2023   1,000,000    1,108,800    1.88 
LBX Manchester Investors LLC (3)(4)(5)†                        
Common Equity, Membership Interests  Retail  United States  5/1/2023   633,859    661,700    1.12 
LBX Mount Prospect Investors LLC (3)(4)(5)                        
Common Equity, Membership Interests  Retail  United States  8/11/2022   760,000    740,000    1.25 
Post Sandstone Partners LLC (3)(4)(5)†                        
Common Equity, Membership Interests  Multifamily  United States  10/24/2022   700,000    813,000    1.38 
SCC Flint River Holdings, LP (3)(4)(5)(6)†                        
Preferred Equity, Membership Interests  Multifamily  United States  12/15/2023   1,533,100    1,738,238    2.95 
TC-BKM US Industrial Fund I, L.P. (3)(4)†                        
Common Equity, Limited Partner Interests  Light Industrial  United States  7/20/2022   2,600,000    2,792,548    4.73 
Total Non-Control/Affiliate Investments            13,366,959    14,004,486    23.73 
                         
Control Investments (2)                        
Crystal View Capital Fund IV, L.P. (3)(4)(5)(7)*†                        
Common Equity, Limited Partner Interests  Self Storage & Manufactured Housing Community  United States  11/30/2022   12,500,000    14,034,000    23.78 
Fairbridge Credit LLC (3)(4)(5)(8)*                        
Preferred Equity, Membership Interests  Multifamily  United States  8/21/2023   5,000,000    5,000,000    8.47 
Fairbridge Grand Hampton LLC (3)(4)(5)*†                        
Preferred Equity, Membership Interests  Multifamily  United States  5/19/2023   3,348,903    3,805,093    6.45 
Madison Terrace Group LLC (3)(4)(5)(9)                        
Preferred Equity, Membership Interests  Multifamily  United States  3/7/2024   2,191,352    2,191,352    3.71 
Total Control Investments            23,040,255    25,030,445    42.41 
                         
Short-Term Investments                        
Fidelity U.S. Government Money Market Portfolio Fund (10)                        
Institutional Class     United States  3/31/2024   9,315,090    9,315,090    15.79 
Total Short-Term Investments            9,315,090    9,315,090    15.79 
                         
Total Investments           $57,222,304    60,226,089    102.05 
Liabilities in Excess of Other Assets                 (1,208,599)   (2.05)
Total Net Assets                $59,017,490    100.00%

 

 

(1)Unless otherwise indicated, issuers of investments held by WREIF are denominated in U.S. dollars and do not issue units or shares. All equity investments are non-income producing unless otherwise noted. Certain portfolio company investments are subject to contractual restrictions on sales. All of WREIF investments are issued by eligible U.S. portfolio companies, as defined in the Investment Company Act of 1940, as amended, or the 1940 Act.

(2)Non-Control/Non-Affiliate Investments are investments that are neither Control Investments nor Affiliate Investments. Control Investments generally are defined by the 1940 Act, as investments in companies in which WREIF owns more than 25% of the company’s capital and/or has the power to exercise control over the management or policies of the company. Affiliate Investments generally are defined by the 1940 Act as investments in companies in which WREIF owns between 5% and 25% of the company’s capital.

(3)Investment is restricted as to resale. As of March 31, 2024, the total cost and fair value of investments subject to restrictions on sales was $47,907,214 and $50,910,999, representing 81.2% and 86.3% of total net assets, respectively.

(4)Income producing.

(5)Investment is classified as Level 3 investment under the fair value hierarchy established by ASC 820, Fair Value Measurement, as its valuation relies on significant unobservable inputs. Investment is valued using methodologies that include transaction price, income approach, and market comparables. For recently acquired investments, the transaction price is deemed representative of fair value. Certain investments are valued based on the income approach, where future expected cash flows are discounted at a rate reflective of the risk inherent to the investment, while other investments are valued using comparable sales data adjusted for differences in location, size, or asset class. Significant unobservable inputs used in these valuations include discount rates, projected rental income growth rates, and exit capitalization rates. The aggregate fair value of all Level 3 investments as of December 31, 2024 is $45,127,683. Changes in the fair value of these investments, which are primarily attributable to updates in discount rates, market conditions, or projected future cash flows, are recognized in the consolidated statement of operations.
(6)Investment is held through WREIF ownership interest in SCC Flint River JV, LP, which in turn invests in SCC Flint River Holdings, LP.
(7)Included in the above, as of March 31, 2024, Crystal View Capital Fund IV, L.P. held nine real estate assets comprised of Federal Storage, MountainVista Storage, Speedway Storage, Sales Road Storage, AAA Storage, Discount Mini Storage, Alice’s Attic, Fairfield Manor, and Clover Estates. WREIF proportionate share of the acquisition amount including allocations made to goodwill of the assets was approximately $1,448,717, $467,328, $1,495,449, $1,495,449, $957,088, $864,557, $2,098,302, $2,336,640, and $4,322,783, respectively.

(8)Investment is held through WREIF ownership interest in Fairbridge PE Member LLC, which in turn invests in Fairbridge Credit, LLC.

(9)Investment is held through WREIF ownership interest in Madison Terrace JV LLC, which in turn invests in Madison Terrace Group, LLC

(10)5.21% seven-day annualized yield as of March 31, 2024.

(11)The following tables represent the composition of the portfolio by investment type and industry category as of March 31, 2024:

* Investment represents more than 5% of the total net assets. Nothing held at these underlying investments represent more than 5% of the total net assets.
Investment is in an unrealized appreciation position and is subject to incentive fees. (Note 3)

 

The following tables represent the composition of the portfolio by investment type and industry category as of March 31, 2024:

 

Investment Type  Cost   Fair Value   Percent of
Total Net
Assets %
 
Common equity, limited partnership and membership interest  $30,833,859   $33,076,316    56.04%
Preferred equity, limited partnership and membership interest   17,073,355    17,834,683    30.22 
Total real estate investments   47,907,214    50,910,999    86.26 
Money market investment   9,315,090    9,315,090    15.79 
Total Investments  $57,222,304   $60,226,089    102.05%

 

Industry Category  Cost   Fair Value   Percent of
Net Assets
 
Multifamily  $19,023,355   $19,963,751    33.83%
Single family   5,250,000    5,460,000    9.25 
Self Storage & Manufactured Housing Community   13,140,000    14,684,500    24.88 
Recreational vehicle parks   4,000,000    3,953,800    6.70 
Retail   3,893,859    4,056,400    6.87 
Light industrial   2,600,000    2,792,548    4.73 
Total real estate investments   47,907,214    50,910,999    86.26 
Money market investment   9,315,090    9,315,090    15.79 
Total Investments  $57,222,304   $60,226,089    102.05%

 

See accompanying notes to unaudited consolidated financial statements

 

3

 

WELLINGS REAL ESTATE INCOME FUND

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

   Three Months Ended   Nine Months Ended 
   December 31,   December 31, 
   2024   2023   2024   2023 
INCOME                
Non-Control/Non-Affiliate Investments:                
Fee income  $9,277   $
-
   $85,483   $112,500 
Dividend income*   77,532    223,404    266,695    531,942 
Non-Control/Affiliate Investments:                    
Fee income   
-
    35,000    16,587    35,000 
Dividend income*   293,726    134,296    995,694    310,720 
Control Investments:                    
Fee income   29,929    67,500    29,929    228,698 
Dividend income*   908,865    357,579    1,879,904    623,811 
Interest income   221,073    86,410    593,295    244,480 
Other fee income   
-
    50,619    
-
    95,835 
                     
TOTAL INVESTMENT INCOME   1,540,402    954,808    3,867,587    2,182,986 
                     
EXPENSES                    
Incentive fee   190,974    42,204    251,170    88,412 
Management fee   174,450    127,058    493,435    322,217 
Professional fees   157,937    195,571    433,259    481,915 
Directors and officers expense   64,270    44,570    173,110    199,022 
Due diligence expense   35,014    
-
    127,352    
-
 
Custody and transfer agent expense   32,768    10,656    62,706    25,480 
Accounting and administration fees   24,450    20,127    71,042    62,163 
Marketing and distribution expense   20,250    38,400    79,500    115,150 
Insurance expense   7,319    7,827    24,457    23,480 
Offering costs   
-
    
-
    
-
    36,606 
Recoupment by Adviser of previously reimbursed expenses   
-
    38,394    47,451    38,394 
Other expenses   37,809    38,502    63,477    79,625 
                     
TOTAL EXPENSES   745,241    563,309    1,826,959    1,472,464 
                     
NET INVESTMENT INCOME  $795,161   $391,499   $2,040,628   $710,522 
                     
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:                    
Non-Control/Non-Affiliate Investments   43,422    238,418    43,422    238,418 
Non-Control/Affiliate Investments   792,066    (27,400)   1,093,047    145,641 
Control Investments   119,380    
-
    119,380    58,000 
                     
TOTAL NET CHANGE IN UNREALIZED APPRECIATION   954,868    211,018    1,255,849    442,059 
                     
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS  $1,750,029   $602,517   $3,296,477   $1,152,581 
Net increase in net assets resulting from operations attributable to non-controlling interest in Wellings Icarus PE Member I, LLC   (88,767)   
-
    (88,767)   
-
 
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ATTRIBUTABLE TO WELLINGS REAL ESTATE INCOME FUND  $1,661,262   $602,517   $3,207,710   $1,152,581 
                     
Weighted average common Shares outstanding   71,695    48,917    67,683    41,936 
                     
Net investment income per common Share (basic and diluted) (1)  $11.09   $8.00   $30.15   $16.94 
                     
Earnings per common Share (basic and diluted) (1)  $24.41   $12.32   $48.70   $27.48 
                     

 

(1)Calculated based on weighted average common Shares outstanding.
*Certain prior period dividend income amounts have been reclassified to conform to the current period presentation. The reclassifications had no impact on total investment income.

 

See accompanying notes to unaudited consolidated financial statements

4

 

WELLINGS REAL ESTATE INCOME FUND

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(UNAUDITED)

 

   Three Months Ended   Nine Months Ended 
   December 31,   December 31, 
   2024   2023   2024   2023 
INCREASE IN NET ASSETS FROM OPERATIONS:                
Net investment income  $795,161   $391,499   $2,040,628   $710,522 
Net change in unrealized appreciation   954,868    211,018    1,255,849    442,059 
Net increase from operations   1,750,029    602,517    3,296,477    1,152,581 
Net increase in net assets resulting from operations related to non-controlling interest in Wellings Icarus PE Member I, LLC   (88,767)   
-
    (88,767)   
-
 
                     
NET INCREASE IN NET ASSETS FROM OPERATIONS ATTRIBUTABLE TO WELLINGS REAL ESTATE INCOME FUND   1,661,262    602,517    3,207,710    1,152,581 
                     
DISTRIBUTIONS TO SHAREHOLDERS   (894,664)   (571,374)   (2,532,996)   (1,338,719)
                     
CAPITAL TRANSACTIONS:                    
Proceeds from shares sold   1,705,000    6,249,000    13,691,400    21,889,773 
Reinvestment of distributions   380,081    230,816    1,075,662    530,497 
                     
NET INCREASE IN NET ASSETS RESULTING FROM CAPITAL TRANSACTIONS   2,085,081    6,479,816    14,767,062    22,420,270 
                     
NET INCREASE IN NET ASSETS ATTRIBUTABLE TO WELLINGS REAL ESTATE INCOME FUND   2,851,679    6,510,959    15,441,776    22,234,132 
                     
WELLING REAL ESTATE INCOME FUND NET ASSETS:                    
Beginning of period   71,607,587    43,535,930    59,017,490    27,812,757 
End of period  $74,459,266   $50,046,889   $74,459,266   $50,046,889 
                     
INCREASE IN TOTAL NET ASSETS FROM NON-CONTROLLING INTEREST                    
Non-controlling interest beginning of period   
-
    
-
    
-
    
-
 
Contributions   4,687,500    
-
    4,687,500    
-
 
Net increase resulting from operations   88,767    
-
    88,767    
-
 
Distributions of income   (88,767)   
-
    (88,767)   
-
 
Total Non-controlling interest in Wellings Icarus PE Member I, LLC (Note 1)   4,687,500    
-
    4,687,500    
-
 
TOTAL NET ASSETS AT THE END OF THE PERIOD  $79,146,766   $50,046,889   $79,146,766   $50,046,889 
                     
CAPITAL SHARE TRANSACTIONS:                    
Shares sold   1,668    6,249    13,625    21,890 
Reinvestment of distributions   372    231    1,063    530 
                     
NET INCREASE IN SHARES RESULTING FROM CAPITAL SHARE TRANSACTIONS   2,040    6,480    14,688    22,420 
                     
SHARES:                    
Beginning of period   70,233    44,279    57,585    28,339 
End of period   72,273    50,759    72,273    50,759 

 

See accompanying notes to unaudited consolidated financial statements

 

5

 

WELLINGS REAL ESTATE INCOME FUND

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

   Nine Months Ended 
   December 31, 
   2024   2023 
CASH FLOWS FROM OPERATING ACTIVITIES        
Net Increase in Net Assets Resulting from Operations  $3,296,477   $1,152,581 
Adjustments to Reconcile Net Increase in Net Assets from Operations to Net Cash Used in Operating Activities:          
Purchase of investments   (20,475,319)   (18,121,207)
Return of capital distribution from investments   8,500,000    116,141 
Change in short-term investments, net   (7,351,417)   (4,794,578)
Net change in unrealized appreciation:          
Non-Control/Non-Affiliate Investments   (323,422)   (238,418)
Non-Control/Affiliate Investments   (813,047)   (145,641)
Control Investments   (119,380)   (58,000)
Amortization of deferred offering costs   
-
    36,606 
Changes in Operating Assets and Liabilities:          
Decrease in receivable from Adviser for reimbursement of organizational expense and offering costs   47,451    38,393 
Increase in other assets   (7,319)   (7,826)
Decrease in payable to Adviser   (47,451)   (131,025)
(Decrease)/increase in professional fees payable   (16,561)   63,642 
Increase in incentive fee payable   251,170    88,412 
Increase in directors and officers expense payable   9,935    30,570 
Increase in distributions received in advance   97,004    780,353 
Increase in fee income received in advance   110,000    
-
 
Increase in other payables   9,080    63,446 
Net Cash used in Operating Activities   (16,832,799)   (21,126,551)
           
CASH FLOWS FROM FINANCING ACTIVITIES          
Proceeds from Shares sold   13,691,400    21,889,773 
Cash distributions paid, net of reinvestments   (1,457,334)   (808,222)
Capital contributions attributable to non-controlling interest in Wellings Icarus PE Member I, LLC   4,687,500    
-
 
Distributions of income to non-controlling interest in Wellings Icarus PE Member I, LLC   (88,767)   
-
 
Net Cash Provided by Financing Activities   16,832,799    21,081,551 
           
NET INCREASE (DECREASE) IN CASH   
-
    (45,000)
           
CASH:          
Beginning of Period   
-
    45,000 
End of Period  $
-
   $
-
 
           
Supplemental Schedule of Non-cash Financing Activity:          
Reinvestments of distributions  $1,075,662   $530,497 

 

See accompanying notes to unaudited consolidated financial statements

 

6

 

WELLINGS REAL ESTATE INCOME FUND

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024

(UNAUDITED) 

 

1. Organization

 

Wellings Real Estate Income Fund (together with its consolidated subsidiary, the “Fund”) is a Delaware statutory trust incorporated on March 3, 2022, and is structured as an externally managed, non-diversified closed-end management investment company that has elected to be treated as a business development company (a “BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund was seeded with an initial contribution on March 30, 2022 and commenced operations on July 1, 2022.

 

The Fund is externally managed by its investment adviser, Wellings Capital Management, LLC (“Wellings” or the “Adviser”), an investment adviser that registered with the SEC on May 13, 2022 under the 1940 Act.

 

The Fund intends to achieve its investment objectives by investing at least 80% of the Fund’s net assets (plus any amount of borrowings for investment purposes) in a portfolio of real estate and real estate-related investments, which will consist of the following primary asset classes: acquiring limited partnership (“LP”) or limited liability company (“LLC”) equity securities issued by entities that invest in manufactured housing communities (“MHCs”), self-storage facilities, industrial real estate, recreational vehicle parks, and/or multifamily residences, as well as any other commercial real estate assets, throughout the United States indirectly through the Fund’s ownership in funds, pooled investment vehicles, and syndications controlled by such entities that own such real estate interests and that qualify as eligible portfolio companies under the 1940 Act, collectively the “Targeted Assets”.

 

On November 1, 2024, the Fund formed Wellings Icarus PE Member I, LLC (“Icarus PE”), a Delaware limited liability company and a special purpose vehicle and the Adviser formed Wellings Icarus Sidecar I, LLC (“Icarus Sidecar”). Icarus PE was designed to invest in Icarus Wellings JV LLC. On November 1, 2024, the Fund and Icarus Sidecar, entered into an agreement whereby the Fund and Sidecar acquired a 37.5% and 62.5% ownership interest, respectively and the Fund acquired 100% voting interest and is the Manager in Icarus PE pursuant to the Operating Agreement of Icarus PE (the “Operating Agreement”). The Fund holds all of the voting rights in Icarus PE and is the Manager of Icarus PE. Accordingly, the Fund consolidates the financial results of Icarus PE in its consolidated financial statements and records a non-controlling interest for the economic interests not held by the Fund.

 

On November 22, 2024, WREIF sent $16,000,000 to Icarus Wellings JV LLC. On November 26, 2024, Icarus Wellings JV LLC. wired $8,500,000 back to WREIF, moving the net contribution amount to $7,500,000. On December 12, 2024, the Icarus Sidecar sent $4,687,500 to the Wellings Real Estate Income Fund to reimburse WREIF for originally funding the Icarus Sidecar’s portion of the investment. This resulted in net capital contributions to Icarus PE of $4,687,500 from the Icarus Sidecar and $2,812,500 from Wellings Real Estate Income Fund.

 

The Adviser is actively evaluating opportunities to invest in other qualifying investments commensurate with the Fund’s available equity capital.

 

2. Significant Accounting Policies

 

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its consolidated financial statements.

 

Basis of Presentation

 

The Fund is an investment company and follows the accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, Financial Services—Investment Companies.

 

All shareholders bear the common expenses of the Fund and earn income including realized gains/losses from the portfolio pro rata based on the average daily net assets of the Fund.

 

7

 

Basis of Consolidation

 

The Fund consolidates entities in which it has a controlling financial interest based on either the variable interest entity (“VIE”) or voting interest model. The Fund is required to first apply the VIE model to determine whether it holds a variable interest in an entity, and if so, whether the entity is a VIE. If the Fund determines it does not hold a variable interest in a VIE, it then applies the voting interest model. Under the voting interest model, the Fund consolidates an entity when it holds a majority voting interest in an entity.

 

VIE Model

 

An entity is considered to be a VIE if any of the following conditions exist: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) the holders of the equity investment at risk, as a group, lack either the direct or indirect ability through voting rights or similar rights to make decisions that have a significant effect on the success of the entity or the obligation to absorb the entity’s expected losses or right to receive the entity’s expected residual returns, or (c) the voting rights of some equity investors are disproportionate to their obligation to absorb losses of the entity, their rights to receive returns from an entity, or both and substantially all of the entity’s activities either involve or are conducted on behalf of an investor with disproportionately few voting rights.

 

The Fund consolidates entities that are VIEs when the Fund determines it is the primary beneficiary. Generally, the primary beneficiary of a VIE is a reporting entity that has (a) the power to direct the activities that most significantly affect the VIE’s economic performance, and (b) the obligation to absorb losses of, or the right to receive benefits from, the VIE that could potentially be significant to the VIE.

 

Voting Model

 

If a legal entity fails to meet any of the three characteristics of a VIE (i.e., insufficiency of equity, existence of non-substantive voting rights, or lack of a controlling financial interest), the Fund then evaluates such entity under the voting model. Under the voting model, the Fund consolidates the entity if the Fund determines that it, directly or indirectly, have greater than 50% of the voting shares (or own a majority of the membership interest’s kick-out rights through voting interests), and that other equity holders do not have substantive participating rights.

 

All intercompany balances and transactions have been eliminated in consolidation.

 

Non-Controlling Interests

 

Non-controlling interests consists of ownership interests held by investors in certain entities that are consolidated but are not 100% owned. The portion of net assets that is attributable to non-controlling interest in Icarus PE is presented as “Non-Controlling Interest in Wellings Icarus PE Member I, LLC”, a component of total net assets, on the Fund’s consolidated statements of assets and liabilities.

 

Use of Estimates

 

The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated statement of assets and liabilities. Actual results could differ from those estimates.

 

8

 

Cash and Cash Equivalents

 

Cash and cash equivalents can include demand deposits with financial institutions and short-term, highly liquid investments (e.g., money market funds, U.S. Treasury notes, and similar type instruments). Cash and cash equivalents are carried at cost which approximates fair value. The Fund places its cash and cash equivalents with financial institutions and, at times, cash held in money market accounts may exceed the Federal Deposit Insurance Corporation insured limit. As of December 31, 2024, the Fund holds no cash and short-term investments in the amount of $16,666,507. As of March 31, 2024, the Fund held no cash and short-term investments in the amount of $9,315,090.

 

Investments at Fair Value

 

Investment transactions are recorded on the trade date. Realized gains or losses are measured by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment using the specific identification method without regard to unrealized gains or losses previously recognized, and can include investments charged off during the period, net of recoveries. Unrealized gains or losses primarily reflect the change in investment values, and can include the reversal of previously recorded unrealized gains or losses when gains or losses are realized.

 

The valuation of the Fund’s investments is determined as of the close of business at the end of each reporting period (the “Valuation Date”), which is generally quarterly.

 

The Board of Trustees (the “Board”) is responsible for overseeing the Fund’s valuation policies, making recommendations to the Adviser on valuation-related matters, and overseeing implementation by the Adviser of such valuation policies.

  

The Board has delegated day-to-day management of the valuation process to the Adviser as the appointed valuation designee (“Valuation Designee”) and has authorized the Adviser to utilize independent third-party valuation and pricing services that have been approved by the Board. The Adviser has established a valuation committee (the “Adviser Valuation Committee”) to carry out this function. The Valuation Designee is subject to the oversight of the Board. The Valuation Designee is responsible for assessing and managing key valuation risk, and is generally responsible for the review, approval and testing of valuation methodologies and the determination of the fair value of the Fund’s investments.

 

The Fund applies FASB ASC 820, Fair Value Measurement (“ASC 820”), as amended, which establishes a framework for measuring fair value in accordance with U.S. GAAP and requires disclosures of fair value measurements. ASC 820 determines fair value to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between market participants on the measurement date. Market participants are defined as buyers and sellers in the principal or most advantageous market (which may be a hypothetical market) that are independent, knowledgeable, and willing and able to transact. ASC 820 specifies a fair value hierarchy that prioritizes and ranks the level of observability of inputs used in determination of fair value.

 

The valuation policies approved by the Board provide that, where deemed appropriate by the Adviser and consistent with the 1940 Act, investments may be valued at cost. Cost would be used only when cost is determined to best approximate the fair value of the particular investment under consideration. For example, cost may not be appropriate when the Fund is aware of sales of similar securities to third parties at different prices or in other circumstances where cost may not approximate fair value (which could include situations where there are no sales to third parties). In such a situation, the Fund’s investment will be revalued in a manner that the Adviser Valuation Committee, in accordance with the valuation procedures, determines in good faith best reflects fair value. Valuation methodologies which may be utilized include the public market methodology, private market methodology, analytical methodology (e.g., discounted cash flow analysis), cost methodology, or the use of the net asset value (“NAV”) of the investment as a practical expedient to fair value (see below). 

 

9

 

The inputs used to determine the fair value of the Fund’s investments are summarized in the three broad levels listed in the fair value hierarchy below:

 

  Level 1—unadjusted quoted prices in active markets for identical investments and registered investment companies where the value per share (unit) is determined and published and is the basis for current transactions for identical assets or liabilities at the Valuation Date;

 

  Level 2—investments with other significant observable inputs (including quoted prices for similar investments, interest rates, benchmark yields, bids, offers, transactions, spreads, cash collateral, and other relationships observed in the markets among market securities, underlying equity of the issuer, proprietary pricing models, credit risk, etc.); or

 

  Level 3—investments with significant unobservable inputs (which may include the Fund’s own assumptions in determining the fair value of investments).

 

Changes in valuation techniques may result in transfers in or out of an assigned level within the fair value hierarchy. The Fund discloses transfers between levels based on valuations at the end of the reporting period. The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments.

 

The following is a summary categorization of the Fund’s investments based on the level of inputs utilized in determining the value of such investments as of December 31, 2024. Investments valued at NAV as a practical expedient (see below) are listed in a separate column to permit reconciliation to the total value of investments:

 

Investments Type  Level 1   Level 2   Level 3   NAV as a
Practical
Expedient
   Total 
Common Equity  $
-
   $
  -
   $29,666,704   $5,501,228   $35,167,932 
Preferred Equity   
-
    
-
    28,974,236    
-
    28,974,236 
Short-Term Investments   16,666,507    
-
    
-
    
-
    16,666,507 
Total Investments  $16,666,507   $
-
   $58,640,940   $5,501,228   $80,808,675 

 

The following is a summary categorization of the Fund’s investments based on the level of inputs utilized in determining the value of such investments as of March 31, 2024. Investments valued at NAV as a practical expedient (see below) are listed in a separate column to permit reconciliation to the total value of investments:

 

Investments Type  Level 1   Level 2   Level 3   NAV as a
Practical
Expedient
   Total 
Common Equity  $
-
   $
  -
   $27,293,000   $5,783,316   $33,076,316 
Preferred Equity   
-
    
-
    17,834,683    
-
    17,834,683 
Short-Term Investments   9,315,090    
-
    
-
    
-
    9,315,090 
Total Investments  $9,315,090   $
-
   $45,127,683   $5,783,316   $60,226,089 

 

The Fund’s portfolio investments will generally not be in publicly traded securities. Investments for which observable market prices in active markets do not exist are reported at fair value, as determined in good faith by the Investment Adviser under consistently applied policies and procedures approved by the Board in accordance with U.S. GAAP. The Board has designated the Investment Adviser to be the Valuation Designee to prepare portfolio company valuations. The Valuation Designee has adopted appropriate segregation protocols to minimize the Fund portfolio managers’ influence on the Adviser’s Fair Value process. The types of factors that the Investment Adviser will take into account in determining fair value, subject to review and ratification where required by the Board with respect to such non-traded investments, will include, as relevant and, to the extent available, the portfolio company’s earnings, the markets in which the portfolio company does business, comparison to valuations of publicly traded companies in the portfolio company’s industry, comparisons to recent sales of comparable companies, the discounted value of the cash flows of the portfolio company, the rights and preferences of the specific securities held, and other relevant factors. This information may not be available because it is difficult to obtain financial and other information with respect to private companies. In considering the extent and nature of information utilized in the valuation process, management will generally apply a greater weighting to that information which is recent and observable. Because such valuations are inherently uncertain and may be based on estimates, the determinations of fair value may differ materially from the values that would be assessed if a readily available market for these securities existed. Based on these factors, the investments in private companies will generally be presented as a Level 3 investment. Changes in accounting standards may not be adopted consistently by issuers or at the same time, and as a result varied implementation may make it more difficult for the Fund to properly evaluate or compare financial information provided by portfolio companies of the Fund or to determine the validity of data of publicly traded company comparables for purposes of valuing the Fund’s portfolio holdings. 

 

10

 

The Fund is permitted to invest in investments that may not have a readily determinable fair value. The Fund may use the NAV reported by the investment as a practical expedient, without further adjustment, unless it is probable that the investment will be sold at a value significantly different than the reported NAV. A listing of the categories of investments held by the Fund which are reported using NAV as a practical expedient (and their respective redemption-related attributes) as of December 31, 2024 are as follows:

 

Investment
Category
  Investment
Strategy
  Fair Value
December 31, 2024
   Unfunded
Commitments
   Remaining
Life*
  Redemption
Frequency*
  Notice
Period
(in Days)*
   Redemption
Restrictions
and Terms*
 
Light
Industrial
  Targeting value-add investments with established companies  $2,740,607    
     -
   5-7 years  Non-
redeemable
   N/A   N/A  
Multifamily  Equity in a fund that lends in first lien position on commercial real estate development   2,760,621    
-
  
N/A
  Quarterly   60   One-year hard lock-up, quarterly redemptions thereafter with 60 days notice. Redemptions will be paid as cash flow allows and/or as underlying debt is paid off.  
Total     $5,501,228                      

 

A listing of the categories of investments held by the Fund (and their respective redemption-related attributes) as of March 31, 2024, are as follows:

 

Investment
Category
  Investment
Strategy
  Fair Value
March 31, 2024
   Unfunded
Commitments
   Remaining
Life*
  Redemption
Frequency*
  Notice
Period
 (in Days)*
   Redemption
Restrictions
and Terms*
 
Light
Industrial
  Targeting value-add investments with established companies  $2,792,548    
       -
   5-7 years  Non-
redeemable
   N/A   N/A  
Multifamily  Equity in a fund that lends in first lien position on commercial real estate development   2,990,768    
-
  
N/A
  Quarterly   60   One-year hard lock-up, quarterly redemptions thereafter with 60 days notice. Redemptions will be paid as cash flow allows and/or as underlying debt is paid off.  
Total     $5,783,316                      

 

* The information summarized in the tables above represent the general terms for the specified asset category. Individual investments may have terms that are more or less restrictive than those terms indicated for the asset class as a whole. In addition, most investments have the flexibility, as provided for in their constituent documents, to modify and/or waive such terms.

 

11

 

The following is a summary of quantitative information about significant unobservable valuation inputs for Level 3 fair value measurements for investments held as of December 31, 2024:

 

Investment Type  Fair Value
December 31,
2024
   Valuation
Methodologies
  Unobservable Input  Input Range
(Weighted Average)
 
Common Equity  $28,371,183   Income Approach / Discounted Cash Flow  Cost of Equity   14.1% - 31.8% (22.2%) 
    1,295,521   Cost  Transaction Price   
N/A
 
Preferred Equity   20,920,411   Income Approach / Discounted Cash Flow  Cost of Equity   14.0% - 36.2%
(21.4%)
 
    8,053,825   Cost  Transaction Price   
N/A
 
Total  $58,640,940            

 

The following is a summary of quantitative information about significant unobservable valuation inputs for Level 3 fair value measurements for investments held as of March 31, 2024:

 

Investment Type  Fair Value
March 31,
2024
   Valuation
Methodologies
  Unobservable Input  Input Range
(Weighted Average)
 
Common Equity  $27,293,000   Income Approach / Discounted Cash Flow  Cost of Equity   12.5% - 26.6% (21.5%) 
           Capitalization Rate   7.5% 
Preferred Equity   2,191,352   Cost  Transaction Price   N/A 
    15,643,331   Income Approach / Discounted Cash Flow  Cost of Equity   14.1% - 36.2% (22.0%) 
Total  $45,127,683            

 

The following is a roll-forward of the activity in investments in which significant unobservable inputs (Level 3) were used in determining fair value for the nine months ended December 31, 2024:

 

Investment Type  Balance as of
April 1,
2024
   Transfers
Into/(Out of)
Level 3
   Purchases   Proceeds
From
Sales or
Other
Dispositions*
   Realized
Gain/(Loss)
   Change in
Unrealized
Appreciation
   Balance as of
December 31,
2024
 
Common Equity  $27,293,000   $
-
   $1,295,521   $
-
   $
-
   $1,078,183   $29,666,704 
Preferred Equity   17,834,683    
-
    19,179,798    (8,500,000)   
        -
    459,755    28,974,236 
Total  $45,127,683   $
       -
   $20,475,319   $(8,500,000)  $
-
   $1,537,938   $58,640,940 

 

* Includes return of capital.

 

12

 

The following is a roll-forward of the activity in investments in which significant unobservable inputs (Level 3) were used in determining fair value for the nine months ended December 31, 2023:

 

Investment Type  Balance as of
April 1,
2023
   Transfers
Into/(Out of)
Level 3
   Purchases   Proceeds
From
Sales or
Other
Dispositions*
   Realized
Gain/(Loss)
   Change in
Unrealized
Appreciation
   Balance as of
December 31,
2023
 
Common Equity  $17,631,850   $
      -
   $7,500,000   $(116,141)  $
      -
   $385,941   $25,401,650 
Preferred Equity   4,000,000    
-
    10,621,207    
-
    
-
    100,000    14,721,207 
Total  $21,631,850   $
-
   $18,121,207   $(116,141)  $
-
   $485,941   $40,122,857 

 

* Includes return of capital.

 

Affiliate and Control Investments

 

Certain investments of the Fund are deemed to be investments in affiliated or controlled issuers under the 1940 Act. Control investments generally are defined by the 1940 Act, as investments in companies in which a fund owns more than 25% of the company’s capital and/or has the power to exercise control over the management or policies of the company (“Control Investments”). Affiliate investments generally are defined by the 1940 Act as investments in companies in which a fund owns between 5% and 25% of the company’s capital (“Affiliate Investments”). The activity resulting from Affiliate Investments and Control Investments, including as applicable; interest income, dividend income, fee income, as well as realized and unrealized gains and losses, is identified in the consolidated Statements of Operations. A listing of these investments (including activity for the nine months ended December 31, 2024) is shown below:

 

   Principal/  Principal/       Transfers               Net Change             
   Shares/Units  Shares/Units   Fair Value   Into/(Out of)       Proceeds From       in Unrealized   Fair Value         
   April 1,  December 31,   April 1,   Investment       Sales or Other   Net Realized   Appreciation   December 31,   Dividend   Fee 
Portfolio Company  2024  2024   2024   Category   Purchases   Dispositions*   Gain (Loss)   (Depreciation)   2024   Income   Income 
Non-Control/Affiliate Investments:                                           
Crystal View Capital Fund IV, L.P. (1)(3)   N/A (2)    N/A (2)   $-   $14,034,000   $-   $-   $           -   $-   $14,034,000   $-   $- 
Great Escapes RV Fund IV, L.P. (1)   N/A (2)    N/A (2)    3,953,800    -    -    -    -    446,200    4,400,000    -    - 
LBX Deptford Investors LLC (1)(4)   N/A (2)    N/A (2)    770,000    (770,000)   -    -    -    -    -    -    - 
LBX Fair Oaks Investors LLC (1)   N/A (2)    N/A (2)    1,108,800    -    -    -    -    193,100    1,301,900    63,366    - 
LBX Fashion Square Investors LLC (1)   N/A (2)    N/A (2)    775,900    -    -    -    -    105,100    881,000    154,700    - 
LBX Manchester Investors LLC (1)   N/A (2)    N/A (2)    661,700    -    -    -    -    15,200    676,900    51,190    - 
LBX Mount Prospect Investors LLC (1)   N/A (2)    N/A (2)    740,000    -    -    -    -    -    740,000    3,298    - 
Newark-Forest MHPS LLC (1)   N/A (2)    N/A (2)    650,500    -    -    -    -    29,500    680,000    19,148    - 
Post Sandstone Partners LLC (1)   N/A (2)    N/A (2)    813,000    -    -    -    -    -    813,000    38,223    - 
PR Estates JB LLC (1)   N/A (2)    N/A (2)    -    -    547,696    -    -    75,888    623,584    69,576    16,587 
Riparian Baltimore SFR Investors I LLC (1)(5)   N/A (2)    N/A (2)    -    5,460,000    -    -    -    280,000    5,740,000    260,641    - 
SCC Flint River Holdings, LP (1)   N/A (2)    N/A (2)    1,738,238    -    1,258,978    -    -    -    2,997,216    258,998    - 
TC-BKM US Industrial Fund I, L.P. (1)   N/A (2)    N/A (2)    2,792,548    -    -    -    -    (51,941)   2,740,607    76,554    - 
Total Non-Control/Affiliate Investments           14,004,486    18,724,000    1,806,674    -    -    1,093,047    35,628,207    995,694    16,587 
                                                      
Control Investments:                                                     
Crystal View Capital Fund IV, L.P. (1)(3)   N/A (2)    N/A (2)    14,034,000    (14,034,000)   -    -    -    -    -    779,538    - 
Fairbridge Credit LLC (1)   N/A (2)    N/A (2)    5,000,000    -    -    -    -    -    5,000,000    628,796    - 
Fairbridge Grand Hampton LLC (1)   N/A (2)    N/A (2)    3,805,093    -    135,375    -    -    -    3,940,468    234,826    - 
Icarus Wellings JV LLC (1)   N/A (2)    N/A (2)    -    -    16,000,000    (8,500,000)   -    -    7,500,000    134,630    29,929 
Madison Terrace Group LLC (1)   N/A (2)    N/A (2)    2,191,352    -    683,925    -    -    119,380    2,994,657    102,114    - 
Total Control Investments           25,030,445    (14,034,000)   16,819,300    (8,500,000)   -    119,380    19,435,125    1,879,904    29,929 
                                                      
Total Non-Control/Affiliate and Control Investments          $39,034,931   $4,690,000   $18,625,974   $(8,500,000)  $-   $1,212,427   $55,063,332   $2,875,598   $46,516 

 

(1)Fund holds non-voting shares or voting rights have been waived for this investment.
(2)Investment does not issue units or shares.
(3)Investment reclassified from Control to Non-Control/Affiliate.
(4)Investment reclassified from Non-Control/Affiliate to Non-Control/Non-Affiliate.
(5)Investment reclassified from Non-Control/Non-Affiliate to Non-Control/Affiliate.
*Includes return of capital and other corporate actions.

 

The Fund has determined that Crystal View Capital Fund IV, L.P. meets the definition of a “significant subsidiary” under Rule 4-08(g) of Regulation S-X. The summarized financial information included in this quarterly report for the quarter ended December 31, 2024, do not include the complete financial information for Crystal View Capital Fund IV, L.P.

 

While the Fund is unable to provide financial information for Crystal View Capital Fund IV, L.P. as of December 31, 2024, the summarized financial information for the three and nine months ended September 30, 2024 and 2023, are included in the table below.

 

There have been no material changes in the operations or financial condition of Crystal View Capital Fund IV, L.P. since September 30, 2024.

 

13

 

The following tables present summarized financial information for Crystal View Capital Fund IV, L.P. in accordance with Rule 4-08(g) of Regulation S-X:

 

   Three Months Ended
September 30,
   Nine Months Ended
September 30,
 
   2024   2023   2024   2023 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
Results of Operations                
Revenue  $2,126,469   $348,664   $4,334,687   $574,217 
Operating Expenses  $ 2,430,925   $ 306,750   $2,430,925   $662,156 
Net operating income (loss)  $1,903,762   $ 41,914   $1,903,762   $(87,938)

  

Qualifying Assets

 

Under the 1940 Act, a BDC may not acquire any asset other than assets of the type listed in Section 55(a) of the 1940 Act, or “qualifying assets,” unless, at the time the acquisition is made, qualifying assets represent at least 70% of the company’s total assets. As of December 31, 2024, the Fund does not hold any non-qualifying assets.

 

Allocation of Profits and Losses

 

On each Valuation Date, the Fund will allocate income, gains, losses, and deductions for the period since the last Valuation Date pro rata in proportion to the balances in the opening capital accounts in the Fund on the first day of the period (after taking into account any subscriptions, distributions and redemptions since the previous Valuation Date). The profits and losses for any period will reflect unrealized profits and losses on the value of the Fund’s assets during the period, as well as realized capital gains and losses, and any income during the period.

 

Interest and Dividend Income

 

Interest income is recorded on the accrual basis and can include amortization of discounts or premiums. Dividend income on common equity securities is recorded as earned or on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. For the three months ended December 31, 2024, the Fund had interest income of $221,073 and dividend income of $1,280,123. For the nine months ended December 31, 2024, the Fund had interest income of $593,295 and dividend income of $3,142,293. For the three months ended December 31, 2023, the Fund had interest income of $86,410 and dividend income of $715,279. For the nine months ended December 31, 2023, the Fund had interest income of $244,480 and dividend income of $1,466,473

 

Distributions received in advance relate to special terms from the Fund’s preferred equity investments. Due to the general complexities and terms of these deals, the Fund may receive future cash flow at the time of investment. Prior to being recognized as dividend income, cash is held in the Distributions received in advance account.

 

Fee Income

 

The Fund may receive various fees in the ordinary course of business from portfolio companies such as underwriting, structuring, consent, waiver, amendment, and other non-recurring upfront fees or miscellaneous fees for services rendered by the Fund to the portfolio companies. Such fees are recognized as income when earned or the services are rendered. Other fee income as presented on the Consolidated Statements of Operations relates to similar fees received from prospective investments that are not consummated. For the three months and nine months ended December 31, 2024, the Fund had fee income of $39,206 and $131,999, respectively. For the three months and nine months ended December 31, 2023, the Fund had fee income of $153,119 and $472,033, respectively.

 

3. Investment Management and Related Parties

 

The Fund has entered into an investment management agreement (the “Investment Management Agreement”) with the Adviser in May 2022 which was renewed in May 2024. Subject to the oversight of the Board, the Adviser is responsible for managing the Fund’s business affairs and providing day-to-day administrative services to the Fund either directly or through others selected by it for the Fund.

 

Under the Investment Management Agreement, the Adviser is entitled to a Management Fee, calculated and payable monthly in arrears, at the annual rate of 1.25% of the Fund’s average daily Targeted Assets during such period (the “Management Fee”).

 

14

 

The Adviser is eligible to receive an incentive fee consisting of an income-based component and a capital gains component, each as described below (the “Incentive Fee”). The Incentive Fee amount, or the calculations pertaining thereto, as appropriate, is pro-rated for any period less than a full calendar quarter or year, as applicable. The portion of the Incentive Fee based on income is determined and paid quarterly in arrears commencing with the first calendar quarter following the Fund’s election to be regulated as a BDC and equals 20% of the pre-Incentive Fee net investment income in excess of a 2.5% quarterly (or 10% annually) “hurdle rate.” There are no catch-up provisions applicable to income-based Incentive Fees under this Agreement. The portion of the Incentive Fee based on capital-gains is payable at the end of each calendar year in arrears, equals 20% of cumulative realized capital gains from the date of the Fund’s election to be regulated as a BDC to the end of each calendar year, less cumulative net realized capital losses and unrealized capital depreciation.

 

For the three months ended December 31, 2024, $190,974 of Incentive Fee and $174,450 in Management Fee were incurred as presented on the Consolidated Statements of Operations. For the nine months ended December 31, 2024, $251,170 of Incentive Fee and $493,435 in Management Fee were incurred as presented on the Consolidated Statements of Operations. For the nine months ended December 31, 2023, $88,412 of Incentive Fee and $322,217 in Management Fee were incurred as presented on the Consolidated Statements of Operations. All investments that increased in fair value and have attributed to the unrealized gain and subsequently the incentive fees presented on the Fund’s consolidated schedule of investments are hereby marked with a dagger symbol. As stated in the Fund’s offering documents, the Fund is to accrue but not pay the Incentive Fee as it relates to unrealized appreciation of the underlying investments.

 

Certain private real estate investment vehicles managed by the Adviser have invested side by side with the Fund into a number of different offerings. Depending on the exact terms of each investment vehicle, the Adviser receives an average annual asset management fee of approximately 1% of invested capital. Additionally, from time to time, the Adviser has received an administration fee of approximately 1.25% of capital contributions in these same private investment vehicles.

 

4. Indemnifications and Commitments

 

In the normal course of business, the Fund enters into contracts that provide general indemnifications. The Fund’s maximum exposure under these agreements is dependent on future claims that may be made against the Fund, and therefore cannot be established, however, the risk of loss from such claims is considered remote.

 

As of December 31, 2024, the Fund and its subsidiary have the following unfunded commitments:

 

   Total
Commitment
   Total Funded to
Date
   Total Unfunded
Commitment
 
514 That Way LLC  $1,142,812   $553,824   $588,988 
Fairbridge Grand Hampton LLC   3,500,200    3,484,278    15,922 
Madison Terrace Group LLC   3,685,000    2,875,277    809,723 
Icarus Wellings JV LLC   16,000,000    7,500,000    8,500,000 
PR Estates JB LLC   1,227,813    547,696    680,117 
SCC Flint River Holdings, LP   4,088,000    2,792,078    1,295,922 
SROA Capital Fund VIII GP Co-Investment LLC   1,364,522    1,295,521    69,001 
Total Investments  $31,008,347   $19,048,674   $11,959,673 

 

5. Organization and Offering Costs

 

As of December 31, 2024, the Fund has expensed as incurred total organizational expense in the amount of $96,025 since inception. As of December 31, 2024, the Fund has incurred total offering costs in the amount of $146,426 since inception which were recorded and accounted for as a deferred asset and consisted primarily of legal fees in connection with the Fund’s registration and public offering. Since the Fund’s shares are offered through a continuous offering, deferred offering costs were amortized over the 12 months beginning with the first sale of shares in July of 2022. Offering costs, organizational expense and expenses of the Fund’s administrator and the Adviser that are eligible for reimbursement by the Fund will be reasonably allocated to the Fund on the basis of time spent, assets under management, usage rates, proportionate holdings, a combination thereof or other reasonable methods determined by the administrator. The Fund was only required to reimburse the Adviser for any organizational expenses and offering costs upon the Fund’s receipt of $20 million in investor subscriptions, which occurred in January 2023. For the three months and nine months ended December 31, 2024, the Adviser was reimbursed $0 and $47,451 of offering costs, respectively. Since inception, the Adviser has recouped organizational expense in the amount of $96,025 and offering costs in the amount of $146,426. As of December 31, 2024, there was no receivable from Adviser for reimbursement of organizational expense and offering costs.

 

6. Capital Stock

 

The Fund conducts private placements of its common shares of beneficial interest (the “Shares”), any of which may be a finite offering or a perpetual offering. The Fund offers the Shares in each such offering pursuant to a confidential private placement memoranda prepared by the Fund (each, a “Memorandum”). The offering of Shares pursuant to the Memorandum consists of private placements, in an aggregate amount of up to $50 million (the “Private Offering”) from suitable investors. The Adviser reserves the right in its sole discretion to accept additional purchases of Shares of up to $50 million (for a maximum initial Offering of $100 million).

 

15

 

The Fund expects to enter into separate subscription agreements with a number of investors in the Private Offerings. To purchase Shares in the Private Offerings, an investor must complete and sign a subscription agreement for a specific dollar amount equal to or greater than $50,000 and pay such amount at the time of subscription. Subscriptions will be effective only upon the Fund’s acceptance, and the Fund reserves the right to reject any subscription in whole or in part. All purchases will be made at a per-share price as determined by the Board (including any committee thereof). The per-share price shall be at least equal to the net asset value per share, as calculated within no more than 48 hours of share issuance, in accordance with the requirement contained under Section 23 of the 1940 Act. The Board (including any committee thereof) may set the per-share price above the net asset value per share based on a variety of factors, including, without limitation, to ensure that investors acquiring Shares in the Fund after other investors have already done so are apportioned their pro rata portion of the Fund’s organizational expense and offering costs. Prior to a Liquidity Event (defined below), no investor who participated in the Private Offerings will be permitted to sell, assign, transfer or otherwise dispose of its Shares unless the Fund provides its prior written consent, and the transfer is otherwise made in accordance with applicable law.

 

In addition, at the discretion of the Board, the Fund may provide liquidity to investors by one or more Liquidity Events. A “Liquidity Event” means, at the discretion of the Board a sale of all or substantially all of the Fund’s assets. However, since the Fund expects that many of the operators and managers of the entities that constitute the Targeted Assets may determine to liquidate the Targeted Assets prior to a contemplated Liquidity Event of the Fund, no sale of all or substantially all of the Targeted Assets may be necessary to return investors’ investments. The Fund will only consider a Liquidity Event if the terms of such Liquidity Event will be in the Fund’s investors’ best interests.

 

7. Fund Distributions

 

The Fund generally intends to make monthly distributions to its shareholders out of assets legally available for distribution. The Fund’s monthly distributions, if any, will be determined by the Board. The Fund expects targeted annual distributions of approximately 5-8% of its net assets. The Fund has adopted a distribution reinvestment plan (the “DRIP”) whereby shareholders may have their distributions automatically reinvested in additional Shares from which such distributions were derived. Shareholders who wish to participate in the DRIP must opt-in and will not automatically be enrolled. The Fund reserves the right to amend, suspend or terminate the distribution reinvestment plan at any time.

 

The following table summarizes the Fund’s distributions during the nine months ended December 31, 2024:

 

Record Date  Payment Date  Per Share
Amount
   Total
Amount
   Cash
Payment
   Reinvestment
Pursuant to DRIP
 
4/1/2024  4/22/2024  $4.166667   $253,210   $144,719   $108,491 
5/1/2024  5/17/2024  $4.166667    257,585    146,406    111,179 
6/3/2024  6/21/2024  $4.166667    260,965    150,320    110,645 
7/1/2024  7/29/2024  $4.166667    284,981    164,348    120,633 
8/1/2024  8/29/2024  $4.166667    289,466    168,465    121,001 
9/3/2024  9/27/2024  $4.166667    292,125    168,493    123,632 
10/1/2024  10/31/2024  $4.166667    295,186    169,516    125,670 
11/1/2024  11/22/2024  $4.166667    298,857    171,059    127,798 
12/2/2024  12/27/2024  $4.166667    300,621    174,008    126,613 
  
Total:
  $37.500003   $2,532,996   $1,457,334   $1,075,662 

 

The following table summarizes the Fund’s distributions during the nine months ended December 31, 2023:

 

Record Date  Payment Date  Per Share
Amount
   Total
Amount
   Cash
Payment
   Reinvestment
Pursuant to DRIP
 
4/3/2023  4/24/2023  $3.333333   $99,460   $61,863   $37,597 
5/1/2023  5/22/2023  $3.333333    120,327    76,303    44,024 
6/1/2023  6/21/2023  $3.333333    131,079    81,924    49,155 
7/3/2023  7/21/2023  $3.333333    132,973    80,972    52,001 
8/1/2023  8/21/2023  $3.333333    136,108    79,654    56,454 
9/1/2023  9/21/2023  $3.333333    147,397    86,947    60,450 
10/2/2023  10/23/2023  $3.333333    156,515    93,113    63,402 
11/1/2023  11/17/2023  $4.166667    203,720    122,190    81,530 
12/1/2023  12/18/2023  $4.166667    211,139    125,255    85,884 
  
Total:
  $31.666665   $1,338,718   $808,221   $530,497 

 

8. Federal Income Taxes

 

The Fund operates as a partnership for U.S. federal income tax purposes and is not subject to income taxes as a separate entity. Such taxes are the responsibility of the individual shareholders. Each shareholder is treated as the owner of its proportionate share of the net assets, income, expenses, and the realized and unrealized gains/(losses) of the Fund. Management of the Fund is required to determine whether a tax position taken by the Fund is more likely than not to be sustained upon examination by the applicable taxing authority, based on the technical merits of the position. Based on its analysis, there were no tax positions identified by management of the Fund which did not meet the “more likely than not” standard as of December 31, 2024.

 

9. Other Service Providers

 

UMB Fund Services, Inc. serves as the Fund’s administrator, accounting agent, and transfer agent. UMB Bank, N.A. serves as the custodian for the Fund.

 

16

 

10. Subsequent Events

 

In preparing these consolidated financial statements, management has evaluated subsequent events through the date of issuance of the consolidated financial statements and has identified the following for disclosure in the Fund’s subsequent events:

 

Fund investors contributed aggregate capital effective January 1, 2025 in the amount of $6,065,000.

 

The Fund made a monthly distribution on January 30, 2025 in the amount of $325,666, based on an annualized rate of approximately 5% of its net assets. The January 30, 2025 distribution resulted in $190,908 being paid to investors in cash and $134,758 being reinvested into the Fund.

 

11. Financial Highlights

 

   Nine Months Ended
December 31,
 
   2024   2023 
Per Share Operating Performance (for a Share outstanding throughout the period):        
Net Asset Value, Beginning of Period  $1,024.87   $981.43 
Net Investment Income (1)   28.98    16.26 
Net Change in Unrealized Appreciation (1)   17.55    9.57 
Net Increase in Net Assets Resulting from Operations (1)   46.53    25.83 
Distributions Declared (1)   (37.50)   (31.67)
(Dilution) Accretion of Share Issuances (at $1,000 per share) (1)   (3.65)   10.37 
Net Asset Value, End of Period  $1,030.25   $985.96 
Total Return Including Performance and Distributions Declared (non annualized)   4.31%   3.68%
           
Supplemental Data:          
Net Assets, End of Period  $74,459,266   $50,046,889 
Ratios to Average Net Assets (2):          
Gross Expenses Before Reimbursement/Recoupment Including Incentive Fees   3.47%   4.79%
Net Expenses After Reimbursement/Recoupment   3.56%   4.92%
Net Expenses After Reimbursement/Recoupment Excluding Incentive Fees   3.07%   4.62%
Net Investment Income   3.97%   2.37%
Portfolio Turnover Rate (not annualized)   
-
    
-
 

 

(1) The per share data was derived using actual shares outstanding at the time of the relevant transactions.
(2) Annualized for periods less than one year.

 

17

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

The following discussion and other parts of this report contain forward-looking information that involves risks and uncertainties. The discussion and analysis contained in this section refers to our financial condition, results of operations, and cash flows. The information contained in this section should be read in conjunction with the consolidated financial statements and footnotes appearing elsewhere in this Form 10-Q.

 

Overview

 

The Fund is a closed-end management investment company that has elected its fiscal year end to be March 31 and to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940. The Fund invests in a variety of commercial real estate asset classes, including, but not limited to, manufactured housing communities, self-storage facilities, RV parks, multifamily, and small-bay industrial properties through investments in limited liability companies (“LLCs”) or limited partnerships (“LPs”). The operators within these asset classes primarily focus on value-add opportunities to increase net operating income, which is then passed on to the investors through free cash flow from operations. The investment adviser for the Fund is Wellings Capital Management, LLC (“the Adviser”).

 

The Fund was seeded on March 30, 2022, with an initial capital contribution of $200,000. For the period from April 1, 2022, through June 30, 2022, the Fund’s Adviser managed the Fund’s registration and organizational readiness processes and incurred organizational and offering costs, respectively, on behalf of the Fund. The organizational and offering costs are subject to reimbursement by the Fund, and the Fund was required to begin reimbursing the Adviser upon reaching $20.0 million in investor subscriptions, which was achieved during the year ended March 31, 2023.

 

Business proceedings and operations officially commenced on July 1, 2022, and the first fiscal year end was March 31, 2023. The Fund is now in its third year of operations. For the three and nine months ended December 31, 2024, the Fund raised approximately $1.71 million and $13.69 million, respectively.

 

During the three months ended December 31, 2024, the Fund generated $1,319,329 from fee and dividend income from the Fund’s underlying investments in certain LLCs and LPs and $221,073 in interest income, totaling $1,540,402 for the period.

 

During the nine months ended December 31, 2024, the Fund generated $3,274,292 from fee and dividend income from the Fund’s underlying investments in certain LLCs and LPs and $593,295 in interest income, totaling $3,867,587 for the period.

 

Key Components of Operations

 

Investments

 

The Fund’s level of investment activity can and does vary substantially from period to period depending on many factors, including the general economic environment, the amount of capital we have available, and the competitive environment for the type of investments we make. As a BDC, we may not acquire any assets other than “qualifying assets” specified in the Investment Company Act of 1940 unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). Qualifying assets include investments in “eligible portfolio companies.” Pursuant to rules adopted by the Securities and Exchange Commission (the “SEC”), “eligible portfolio companies” include certain companies that do not have any securities listed on a national securities exchange and public companies whose securities are listed on a national securities exchange but whose market capitalization is less than $250 million.

 

For existing investments, the Adviser monitors the financial trends of each portfolio company on an ongoing basis to determine if it is meeting its respective business plan and to assess the appropriate course of action for each company. In addition, our Investment Adviser has several methods of evaluating and monitoring the performance and fair value of our investments, which may include (i) assessment of success in adhering to the portfolio company’s business plan and compliance with covenants; (ii) periodic or regular contact with portfolio company management and, if appropriate, the financial or strategic sponsor to discuss the financial position, requirements and accomplishments; (iii) comparisons to our other portfolio companies in the industry, if any; (iv) attendance at and participation in board meetings or presentations by portfolio companies; and (v) review of monthly and quarterly consolidated financial statements and financial projections of portfolio companies.

 

18

 

Investment Income

 

As of December 31, 2024 and 2023, the Fund’s portfolio consisted of 26 and 21, respectively common and preferred equity commercial real estate investments, which are expected to generate stable and consistent cash flow over the long term. The Fund generates revenues in the form of distributions that we receive from the LLC and LP interests that it owns. Distribution amounts are determined entirely by the Managing Members/General Partners of those entities and allocated to us based on our proportionate interest in those investments. Distributions we receive are analyzed to determine the amount of the distribution that represents income or return of capital based on the financial information reported to us by the Operator of the underlying investment.

 

During the three and nine months ended December 31, 2024, the Fund generated $1,540,402 and $3,867,587, respectively, in income, coming from fee income, dividend income, and interest income. During the three and nine months ended December 31, 2023, the Fund generated $954,808 and $2,182,986, respectively, in income, coming from fee income, dividend income, and interest income. This is primarily derived from cash flow distributions from the fund’s underlying investments. The interest income came as a result of the fund’s short-term investments in money-market accounts. The Adviser believes that the Fund will continue to generate income during each quarter of the Fund’s operations.

 

Expenses

 

The Fund’s primary operating expenses include the payment of the audit expense, management fee to the Adviser, legal and professional fees, valuation services, and other operating expenses. These expenses are incurred in accordance with the Investment Advisory Agreement and are necessary to ensure the proper functioning and management of the Fund. The Management Fee and Incentive Fee compensate the Adviser for its work in identifying, evaluating, negotiating, closing, and monitoring our investments. The Fund bears all other expenses of its operations and transactions, including operational expenses, fees and expenses related to investments and prospective investments, brokers’ commissions, legal, auditing or accounting expenses, taxes or governmental fees, officers and directors’ expenses, marketing expenses, valuation expenses, filing expenses, and the fees and expenses of our administrator, transfer agent or sub-transfer agent. We expect our general and administrative expenses to increase in the aggregate and decrease as a percentage of total assets during periods of asset growth and to decrease in the aggregate and increase as a percentage of total assets during periods of asset declines. Additionally, costs relating to future offerings of securities would be incremental.

 

Investment Activity

 

During the three months ended December 31, 2024, the Fund made one new investment and four follow-on investments across varying opportunities, bringing the total to 26 total investments since the Fund’s inception. This brought the total invested since inception to $59.88 million. In addition, for the three months and nine months ended December 31, 2024, the Fund raised approximately $1.71 million and $13.69 million, respectively, which was used to support the new investments and increase the Fund’s liquidity, bringing the total capital contributions to approximately $72.35 million.

 

During the three months ended December 31, 2023, the Fund made one new investment and three follow-on investments across varying opportunities, bringing the total to 21 total investments since the Fund’s inception. This brought the total invested since inception to $42.57 million. In addition, for the three and nine months ended December 31, 2023, the Fund raised approximately $7.88 million and $24.95 million, respectively, which was used to support the new investments and increase the Fund’s liquidity, bringing the total capital contributions to $48.26 million.

 

Details regarding the acquisition costs, investment type, and representative percentage of the Fund’s total net assets can be found in the Consolidated Schedule of Investments and notes to the consolidated financial statements included in this filing.

 

Result of Operations

 

It is important to note that this is the Fund’s tenth quarter of operations and eleventh since launch, and as such, the Fund’s performance should be considered in the context of its early stage of development.

 

Our operating results for the three and nine months ended December 31, 2024 and 2023 are as follows:

 

   Three Months Ended   Nine Months Ended 
   December 30,   December 30, 
   2024   2023   2024   2023 
Total investment income  $1,540,402   $954,808   $3,867,587   $2,182,986 
Total expenses, net of fees   745,241    563,309    1,826,959    1,472,464 
Net investment income   795,161    391,499    2,040,628    710,522 
Net change in unrealized appreciation   954,868    211,018    1,255,849    442,059 
Net increase in net assets resulting from operations  $1,750,029   $602,517   $3,296,477   $1,152,581 

 

The Fund’s investment income was primarily generated from common and preferred equity investments made by the Fund into targeted investments. The Fund also generated investment income from short-term investments and fee income. The Fund generated Net Investment Income of $795,161 and $2,040,628 for the three months ended December 31, 2024 and 2023, respectively. The Fund generated Net Investment Income of $2,040,628 and $710,522 for the nine months ended December 31, 2024 and 2023, respectively. The significant increase year-over-year stems from the increased size of the portfolio and additional cash flow being provided from the Fund’s investments.

 

19

 

Expenses

 

The composition of our operating expenses for the three months ended December 31, 2024 and 2023 are as follows:

 

   Three Months Ended
December 31,
 
   2024   2023 
Management fee  $174,450   $127,058 
Professional fees   157,937    195,571 
Due diligence expense   35,014    - 
Directors and officers expense   64,270    44,570 
Incentive fee   190,974    42,204 
Marketing and distribution expense   20,250    38,400 
Accounting and administration fee   24,450    20,127 
Custody and transfer agent expense   32,768    10,656 
Recoupment by Adviser of previously reimbursed expenses   -    38,394 
Insurance expense   7,319    7,827 
Other expense   37,809    38,502 
   $745,241   $563,309 

 

Management Fee

 

Under the Investment Advisory Agreement, the Adviser is entitled to a Management Fee, calculated and payable monthly in arrears, at the annual rate of 1.25% of the Fund’s average daily Targeted Assets during such period. For the three months ended December 31, 2024 and 2023, the Fund incurred management fees of $174,450 and $127,058, respectively. The significant increase in management fee came as a result of the increase in both capital raised and capital deployed by the Fund into qualifying investment opportunities.

 

Professional fees

 

The Fund’s professional fees primarily relate to audit, legal, and valuation services. For the three months ended December 31, 2024 and 2023, the Fund incurred professional fees of $157,937 and $195,571, respectively.

 

Due diligence expense

 

The Fund’s due diligence expenses primarily relate to sourcing prospective investments. The expenses are offset by fee income provided by current and prospective operators. For the three months ended December 31, 2024 and 2023, the Fund incurred due diligence expenses of $35,014 and $0, respectively. This increase stems from increased costs incurred for due-diligence related items, such as NOI audits, background checks, and site visits, all of which are related to the Fund’s targeted investments.

 

Directors and Officers Expense

 

The directors and officers expenses are fees for services related to attending periodic board and committee meetings. For the three months ended December 31, 2024 and 2023, the Fund incurred directors and officers costs of $64,270 and $44,570, respectively. 

 

Marketing and Distribution Fees

 

The marketing and distribution fees include expenses related to investments and prospective investments, brokers’ commissions, as well as expenses for the marketing and advertising of the Fund in compliance with SEC rules and regulations. For the three months ended December 31, 2024 and 2023, the Fund had marketing and distribution costs of $20,250 and $38,400, respectively.

 

20

 

Accounting and Administrative Fees

 

Accounting and administrative fees represent services provided by a third-party to perform accounting and administration of the Fund. For the three months ended December 31, 2024 and 2023, the Fund incurred accounting and administrative expenses of $24,450 and $20,127, respectively.

 

Insurance Expense

 

Insurance expense represents fees related to the E&O/D&O insurance policy that the Fund has in place. For the three months ended December 31, 2024 and 2023, the Fund had insurance expenses of $7,319 and $7,827, respectively.

 

Custody and Transfer Agent Expense

 

The custody and transfer agent expenses represent fees for services provided by a third-party organization. For the three months ended December 31, 2024 and 2023, the Fund had custody and transfer agent fees of $32,768 and $10,656, respectively.

 

Incentive Fee

 

Incentive fee expense represents fees related to the incentive fee owed to the Adviser, as noted in the Fund’s Investment Advisory Agreement. For the three months ended December 31, 2024 and 2023, the Fund had incentive fee expense of $190,974 and $42,204, respectively. As stated in the Fund’s offering documents, the Fund is to accrue but not pay the incentive fee as it relates to unrealized appreciation of the underlying investments.

 

Other Expenses

 

Other expenses primarily include subscriptions, due diligence expenses, and other miscellaneous general and administrative expenses incurred by the Fund. For the three months ended December 31, 2024 and 2023, the Fund had other expenses of $37,809 and $38,502, respectively.

 

The composition of our operating expenses for the nine months ended December 31, 2024 and 2023 are as follows:

 

   Nine Months Ended
December 31,
 
   2024   2023 
Management fee  $493,435   $322,217 
Professional fees   433,259    481,915 
Due diligence expense   127,352    - 
Directors and officers expense   173,110    199,022 
Incentive fee   251,170    88,412 
Marketing and distribution expense   79,500    115,150 
Accounting and administration expense   71,042    62,163 
Custody and transfer agent expense   62,706    25,480 
Insurance expense   24,457    23,480 
Offering costs   -    36,606 
Recoupment by Adviser of previously reimbursed expenses   47,451    38,394 
Other expenses   63,477    79,625 
   $1,826,959   $1,472,464 

 

Management Fee

 

Under the Investment Advisory Agreement, the Adviser is entitled to a Management Fee, calculated and payable monthly in arrears, at the annual rate of 1.25% of the Fund’s average daily Targeted Assets during such period. For the nine months ended December 31, 2024 and 2023, the Fund incurred management fees of $493,435 and $322,217, respectively. The increase in management fee came as a result of the increase in both capital raised and capital deployed by the Fund into qualifying investment opportunities.

 

21

 

Professional fees

 

The Fund’s professional fees primarily relate to audit, legal, and valuation services. For the nine months ended December 31, 2024 and 2023, the Fund incurred professional fees of $433,259 and $481,915, respectively.

 

Due diligence expense

 

The Fund’s due diligence expenses primarily relate to sourcing prospective investments. The expenses are offset by fee income provided by current and prospective operators. For the nine months ended December 31, 2024 and 2023, the Fund incurred due diligence expenses of $127,352 and $0, respectively. This increase stems from increased costs incurred for due-diligence related items, such as NOI audits, background checks, and site visits, all of which are related to the Fund’s targeted investments.

 

Directors and Officers Expense

 

The directors and officers expenses are fees for services related to attending periodic board and committee meetings. For the nine months ended December 31, 2024 and 2023, the Fund incurred directors and officers costs of $173,110 and $199,022, respectively. The decrease stems from out-of-scope services that were performed during 2023 that we do not anticipate occurring again.

 

Marketing and Distribution Fees

 

The marketing and distribution fees include expenses related to investments and prospective investments, brokers’ commissions, as well as expenses for the marketing and advertising of the Fund in compliance with SEC rules and regulations. For the nine months ended December 31, 2024 and 2023, the Fund had marketing and distribution costs of $79,500 and $115,150, respectively.

 

Accounting and Administrative Fees

 

Accounting and administrative fees represent services provided by a third-party to perform accounting and administration of the Fund. For the nine months ended December 31, 2024 and 2023, the Fund incurred accounting and administrative expenses of $71,042 and $62,163, respectively.

 

Insurance Expense

 

Insurance expense represents fees related to the E&O/D&O insurance policy that the Fund has in place. For the nine months ended December 31, 2024 and 2023, the Fund had insurance expenses of $24,457 and $23,480, respectively.

 

Custody and Transfer Agent Expense

 

The custody and transfer agent expenses represent fees for services provided by a third-party organization. For the nine months ended December 31, 2024 and 2023, the Fund had custody and transfer agent fees of $62,706 and $25,480, respectively. The increase stems from higher vender costs due to the increased number of investors and dollars managed by the Fund.

 

Incentive Fee

 

Incentive fee expense represents fees related to the incentive fee owed to the Adviser, as noted in the Fund’s Investment Advisory Agreement. For the nine months ended December 31, 2024 and 2023, the Fund had incentive fee expense of $251,170 and $88,412, respectively. As stated in the Fund’s offering documents, the Fund is to accrue but not pay the incentive fee as it relates to unrealized appreciation of the underlying investments.

 

Offering Costs

 

The offering costs consist primarily of legal fees for preparing the prospectus and statement of additional information in connection with the Fund’s registration and public offering. Since the Fund’s shares were offered through a continuous offering, the offering costs were deferred and amortized over the 12 months beginning with the first sale of shares in July 2022. For the nine months ended December 31, 2024 and 2023, the Fund amortized offering costs of $0 and $36,606, respectively.

 

22

 

Other Expenses

 

Other expenses primarily include subscriptions, due diligence expenses, and other miscellaneous general and administrative expenses incurred by the Fund. For the nine months ended December 31, 2024 and 2023, the Fund had other expenses of $63,477 and $79,625, respectively.

 

Recoupment by Adviser of previously reimbursed expenses

 

Recoupment by Adviser of previously reimbursed expenses consists of expenses that were originally paid by the Adviser and subject to reimbursement by the Fund upon achieving $20.0 million in subscriptions. For the nine months ended December 31, 2024 and 2023, the Fund had recoupment by Adviser of previously reimbursed expenses of $47,451 and $38,394, respectively. The increase stems from the fact that the Fund did not commence reimbursements back to the Adviser until late in 2023.

 

Financial Condition, Liquidity, and Capital Resources

 

As of December 31, 2024, the Fund had $16.67 million in short-term investments. The investments are liquidated into cash for investing and general corporate purposes at the discretion of management. We believe we have adequate capital resources to meet our liquidity needs.

 

The Fund’s cash used in operating activities was $16.92 million and $21.13 million for the nine months ended December 31, 2024 and 2023, respectively, and the Fund’s cash provided by financing activities was $16.92 million and $21.08 million for the same periods. The Fund’s operating activities used cash primarily for the Fund’s investment activities and the Fund’s financing activities provided cash primarily due to proceeds from shares issued.

 

During the nine months ended December 31, 2024, the Fund closed offerings at the beginning of each calendar month, raising $13.69 million in cash that was available for the Adviser to invest in qualified investments. The Fund intends to continue to invest available capital in accordance with its investment strategy. The Adviser believes that the Fund has adequate liquid assets to meet any and all obligations that arise while continuing to make opportunistic investments.

 

Equity

 

The Fund officially began accepting capital contributions on July 1, 2022. From inception to December 31, 2024, the Fund has received total capital contributions of $72.35 million in equity, and the Adviser anticipates this number to continue growing.

 

The Fund has made cash distributions of $2.53 million to investors during the nine months ended December 31, 2024. Cash available for distributions was generated from the Fund’s underlying investments. These distributions are at the sole discretion of the Adviser.

 

The Fund accepted additional subscriptions of $6.07 million on January 1, 2025. The Fund distributed additional cash of $325,666 as a return on capital to investors on January 30, 2025.

 

Critical Accounting Estimates

 

The preparation of these consolidated financial statements, in accordance with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, income, and expenses. Changes in the economic environment, financial markets, and other parameters used in determining such estimates could cause actual results to differ materially.

 

The Fund’s critical accounting estimates are as follows:

 

Investment Valuations

 

The valuation of the Fund’s investments is determined as of the close of business at the end of each reporting period, generally quarterly. The board of trustees (the “Board”) is responsible for overseeing the Fund’s valuation policies, making recommendations to the Adviser on valuation-related matters, and overseeing implementation by the Adviser of such valuation policies.

 

The Board has delegated day-to-day management of the valuation process to the Adviser as the appointed valuation designee (“Valuation Designee”). The Adviser has established a valuation committee (the “Adviser Valuation Committee”) to carry out this function. The Valuation Designee is subject to the oversight of the Board. The Valuation Designee is responsible for assessing and managing key valuation risk, and is generally responsible for the review, approval and testing of valuation methodologies and the determination of the fair value of the Fund’s investments.

 

23

 

The Fund applies FASB ASC 820, Fair Value Measurement (“ASC 820”), as amended, which establishes a framework for measuring fair value in accordance with U.S. GAAP and requires disclosures of fair value measurements. ASC 820 determines fair value to be the price that would be received for an investment in a current sale, which assumes an orderly transaction between market participants on the measurement date. Market participants are defined as buyers and sellers in the principal or most advantageous market (which may be a hypothetical market) that are independent, knowledgeable, and willing and able to transact. ASC 820 specifies a fair value hierarchy that prioritizes and ranks the level of observability of inputs used in determination of fair value.

 

The valuation policies approved by the Board provide that, where deemed appropriate by the Adviser and consistent with the 1940 Act, investments may be valued at cost. Cost would be used only when cost is determined to best approximate the fair value of the particular investment under consideration. For example, cost may not be appropriate when the Fund is aware of sales of similar securities to third parties at different prices or in other circumstances where cost may not approximate fair value (which could include situations where there are no sales to third parties). In such a situation, the Fund’s investment will be revalued in a manner that the Adviser Valuation Committee, in accordance with the valuation procedures, determines in good faith best reflects fair value. Valuation methodologies which may be utilized include the public market methodology, private market methodology, analytical methodology (e.g., discounted cash flow analysis), and/or cost methodology.

 

The inputs used to determine the fair value of the Fund’s investments are summarized in the three broad levels listed in the fair value hierarchy below:

 

Level 1—unadjusted quoted prices in active markets for identical investments and registered investment companies where the value per share (unit) is determined and published and is the basis for current transactions for identical assets or liabilities at the valuation date.

 

Level 2—investments with other significant observable inputs (including quoted prices for similar investments, interest rates, benchmark yields, bids, offers, transactions, spreads, cash collateral, and other relationships observed in the markets among market securities, underlying equity of the issuer, proprietary pricing models, credit risk, etc.); or

 

Level 3—investments with significant unobservable inputs (which may include the Fund’s own assumptions in determining the fair value of investments)

 

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Excluding the Fund’s Level 1 short-term investments in overnight accounts, all of the Fund’s investments are classified as Level 3 or are valued using net asset value as practical expedient.

 

24

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

  

The Fund is subject to financial market risks, including changes in interest rates. Interest rate sensitivity refers to the change in the Fund’s earnings that may result from changes in the level of interest rates.

 

Item 4. Controls and Procedures

 

Management’s Evaluation of our Disclosure Controls and Procedures

 

The Fund’s management, under the direction, supervision, and involvement of the Chief Executive Officer and Chief Financial Officer, has carried out an evaluation, as of the end of the period covered by this report, of the effectiveness of the design and operation of the disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) of the Fund. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that disclosure controls and procedures in place at the Fund are effective to ensure that information required to be disclosed in the Fund’s Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to the Fund’s management to allow timely decisions regarding required disclosure based closely on the definition of “disclosure controls and procedures” in Rule 13a-15(e)and 15d-15(e) under the Exchange Act.

 

Changes in Internal Control over Financial Reporting

 

No changes to our internal control over financial reporting occurred during the quarter ended December 31, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act).

 

25

 

PART II: OTHER INFORMATION

 

Item 1. Legal Proceedings

 

Neither the Fund nor the Investment Adviser or Administrator is currently subject to any material legal proceedings, nor, to the Fund’s knowledge, is any material legal proceeding threatened against the Fund, or against the Investment Adviser or Administrator.

 

From time to time, the Fund, the Investment Adviser, or the Administrator may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of the Fund’s rights under contracts with the Fund’s portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, the Fund does not expect that these proceedings will have a material effect upon the Fund’s financial condition or results of operations.

 

Item 1A. Risk Factors

 

In addition to the other information set forth in this Quarterly Report, you should carefully consider the risk factors previously disclosed under Item 1A of the Fund’s Form 10-K (File No. 000-56432), which could materially affect our business, financial condition and/or operating results. The risks described in the Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially and adversely affect our business, financial condition and/or operating results.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

On January 1, 2025, the Fund sold $6.07 million, aggregating approximately $78.42 million since inception of unregistered common shares of beneficial interest to accredited investors. For the period from April 1, 2024, through December 31, 2024, the Fund made investments in four different commercial real estate opportunities spread across various parts of the United States totaling approximately $11.29 million. See the Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations sections for more detailed information.

 

Item 3. Defaults Upon Senior Securities

 

None.

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information

 

None.

 

26

 

Item 6. Exhibits and Consolidated Financial Statement Schedules

 

Exhibit Index

 

3.1   Amended and Restated Agreement and Declaration of Trust (filed as Exhibit 3.01 to the Fund’s Form 10-K filed on June 29, 2023 and incorporated herein by reference).
     
3.2   Bylaws (filed as Exhibit 3.2 to the Fund’s Registration Statement on Form 10 filed on May 3, 2022 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.

 

* Filed herewith

 

+ This exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act or the Exchange Act.

 

27

 

SIGNATURE

 

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.

 

  Wellings Real Estate Income Fund
   
Date: February 14, 2025 /s/ Paul T. Moore
  Paul T. Moore
  Chief Executive Officer

 

Date: February 14, 2025 /s/ Benjamin P. Kahle
  Benjamin P. Kahle
  Chief Financial Officer

 

28

 

0001922947 false 2025 Q3 --03-31 0 0001922947 2024-04-01 2024-12-31 0001922947 2025-02-14 0001922947 wreif:NonControlNonAffiliateInvestmentsMember 2024-12-31 0001922947 wreif:NonControlNonAffiliateInvestmentsMember 2024-03-31 0001922947 wreif:NonControlAffiliateInvestmentsMember 2024-12-31 0001922947 wreif:NonControlAffiliateInvestmentsMember 2024-03-31 0001922947 us-gaap:InvestmentAffiliatedIssuerControlledMember 2024-12-31 0001922947 us-gaap:InvestmentAffiliatedIssuerControlledMember 2024-03-31 0001922947 us-gaap:ShortTermInvestmentsMember 2024-12-31 0001922947 us-gaap:ShortTermInvestmentsMember 2024-03-31 0001922947 2024-12-31 0001922947 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:FiveOneFourThatWayLLCMember wreif:PreferredEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:FiveOneFourThatWayLLCMember wreif:PreferredEquityMembershipInterestsMember 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:ParkviewFinancialFund2015LPMember wreif:CommonEquityLimitedPartnerInterestsMember 2024-04-01 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:ParkviewFinancialFund2015LPMember wreif:CommonEquityLimitedPartnerInterestsMember 2024-12-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXDeptfordInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXDeptfordInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostBellairePartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostBellairePartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostLasColinasHeightsPartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostLasColinasHeightsPartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostOakForestPartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostOakForestPartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostProvidencePartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostProvidencePartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostTXIPartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostTXIPartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2024-12-31 0001922947 country:US wreif:SelfStorageMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:SROACapitalFundVIIIGPCoInvestmentLLCMember wreif:CommonEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US wreif:SelfStorageMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:SROACapitalFundVIIIGPCoInvestmentLLCMember wreif:CommonEquityMembershipInterestsMember 2024-12-31 0001922947 us-gaap:InvestmentUnaffiliatedIssuerMember 2024-12-31 0001922947 country:US wreif:SelfStorageManufacturedHousingCommunityMember us-gaap:InvestmentAffiliatedIssuerControlledMember wreif:CrystalViewCapitalFundIVLPMember wreif:CommonEquityLimitedPartnerInterestsMember 2024-04-01 2024-12-31 0001922947 country:US wreif:SelfStorageManufacturedHousingCommunityMember us-gaap:InvestmentAffiliatedIssuerControlledMember wreif:CrystalViewCapitalFundIVLPMember wreif:CommonEquityLimitedPartnerInterestsMember 2024-12-31 0001922947 country:US naics:ZZ721211 us-gaap:InvestmentAffiliatedIssuerMember wreif:GreatEscapesRVFundIVLPMember wreif:CommonEquityLimitedPartnerInterestsMember 2024-04-01 2024-12-31 0001922947 country:US naics:ZZ721211 us-gaap:InvestmentAffiliatedIssuerMember wreif:GreatEscapesRVFundIVLPMember wreif:CommonEquityLimitedPartnerInterestsMember 2024-12-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXFairOaksInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXFairOaksInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2024-12-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXFashionSquareInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXFashionSquareInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2024-12-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXManchesterInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXManchesterInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2024-12-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXMountProspectInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXMountProspectInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2024-12-31 0001922947 country:US wreif:ManufacturedHousingCommunityMember us-gaap:InvestmentAffiliatedIssuerMember wreif:NewarkForestMHPSLLCMember wreif:CommonEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US wreif:ManufacturedHousingCommunityMember us-gaap:InvestmentAffiliatedIssuerMember wreif:NewarkForestMHPSLLCMember wreif:CommonEquityMembershipInterestsMember 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerMember wreif:PostSandstonePartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerMember wreif:PostSandstonePartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerMember wreif:PREstatesJBLLCMember wreif:PreferredEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerMember wreif:PREstatesJBLLCMember wreif:PreferredEquityMembershipInterestsMember 2024-12-31 0001922947 country:US srt:SingleFamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:RiparianBaltimoreSFRInvestorsILLCMember wreif:PreferredEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US srt:SingleFamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:RiparianBaltimoreSFRInvestorsILLCMember wreif:PreferredEquityMembershipInterestsMember 2024-12-31 0001922947 country:US srt:SingleFamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:RiparianBaltimoreSFRInvestorsILLCMember wreif:CommonEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US srt:SingleFamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:RiparianBaltimoreSFRInvestorsILLCMember wreif:CommonEquityMembershipInterestsMember 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerMember wreif:SCCFlintRiverHoldingsLPMember wreif:PreferredEquityLimitedPartnerInterestsMember 2024-04-01 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerMember wreif:SCCFlintRiverHoldingsLPMember wreif:PreferredEquityLimitedPartnerInterestsMember 2024-12-31 0001922947 country:US wreif:LightIndustrialMember us-gaap:InvestmentAffiliatedIssuerMember wreif:TCBKMUSIndustrialFundILPMember wreif:CommonEquityLimitedPartnerInterestsMember 2024-04-01 2024-12-31 0001922947 country:US wreif:LightIndustrialMember us-gaap:InvestmentAffiliatedIssuerMember wreif:TCBKMUSIndustrialFundILPMember wreif:CommonEquityLimitedPartnerInterestsMember 2024-12-31 0001922947 us-gaap:InvestmentAffiliatedIssuerMember 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerControlledMember wreif:FairbridgeCreditLLCMember wreif:PreferredEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerControlledMember wreif:FairbridgeCreditLLCMember wreif:PreferredEquityMembershipInterestsMember 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerControlledMember wreif:FairbridgeGrandHamptonLLCMember wreif:PreferredEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerControlledMember wreif:FairbridgeGrandHamptonLLCMember wreif:PreferredEquityMembershipInterestsMember 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerControlledMember wreif:MadisonTerraceGroupLLCMember wreif:PreferredEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerControlledMember wreif:MadisonTerraceGroupLLCMember wreif:PreferredEquityMembershipInterestsMember 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerMember wreif:IcarusWellingsJVLLCMember wreif:PreferredEquityMembershipInterestsMember 2024-04-01 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerMember wreif:IcarusWellingsJVLLCMember wreif:PreferredEquityMembershipInterestsMember 2024-12-31 0001922947 country:US us-gaap:ShortTermInvestmentsMember wreif:FidelityUSGovernmentMoneyMarketPortfolioFundMember wreif:InstitutionalClassMember 2024-04-01 2024-12-31 0001922947 country:US us-gaap:ShortTermInvestmentsMember wreif:FidelityUSGovernmentMoneyMarketPortfolioFundMember wreif:InstitutionalClassMember 2024-12-31 0001922947 wreif:CommonEquityLimitedPartnershipAndMembershipInterestMember 2024-12-31 0001922947 wreif:PreferredEquityLimitedPartnershipAndMembershipInterestMember 2024-12-31 0001922947 wreif:TotalRealEstateInvestmentsMember 2024-12-31 0001922947 wreif:MoneyMarketInvestmentMember 2024-12-31 0001922947 srt:MultifamilyMember 2024-12-31 0001922947 srt:SingleFamilyMember 2024-12-31 0001922947 wreif:SelfStorageManufacturedHousingCommunityMember 2024-12-31 0001922947 wreif:RecreationalVehicleParksMember 2024-12-31 0001922947 us-gaap:RetailMember 2024-12-31 0001922947 wreif:LightIndustrialMember 2024-12-31 0001922947 wreif:TotalRealEstateInvestmentsMember 2024-12-31 0001922947 wreif:MoneyMarketInvestmentMember 2024-12-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:ParkviewFinancialFund2015LPMember wreif:CommonEquityLimitedPartnerInterestsMember 2023-04-01 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:ParkviewFinancialFund2015LPMember wreif:CommonEquityLimitedPartnerInterestsMember 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostBellairePartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2023-04-01 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostBellairePartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostLasColinasHeightsPartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2023-04-01 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostLasColinasHeightsPartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostProvidencePartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2023-04-01 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostProvidencePartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostOakForestPartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2023-04-01 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostOakForestPartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostTXIPartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2023-04-01 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:PostTXIPartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2024-03-31 0001922947 country:US srt:SingleFamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:RiparianBaltimoreSFRInvestorsILLCMember wreif:PreferredEquityMembershipInterestsMember 2023-04-01 2024-03-31 0001922947 country:US srt:SingleFamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:RiparianBaltimoreSFRInvestorsILLCMember wreif:PreferredEquityMembershipInterestsMember 2024-03-31 0001922947 country:US srt:SingleFamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:RiparianBaltimoreSFRInvestorsILLCMember wreif:CommonEquityMembershipInterestsMember 2023-04-01 2024-03-31 0001922947 country:US srt:SingleFamilyMember us-gaap:InvestmentUnaffiliatedIssuerMember wreif:RiparianBaltimoreSFRInvestorsILLCMember wreif:CommonEquityMembershipInterestsMember 2024-03-31 0001922947 us-gaap:InvestmentUnaffiliatedIssuerMember 2024-03-31 0001922947 country:US naics:ZZ721211 us-gaap:InvestmentAffiliatedIssuerMember wreif:GreatEscapesRVFundIVLPMember wreif:CommonEquityLimitedPartnerInterestsMember 2023-04-01 2024-03-31 0001922947 country:US naics:ZZ721211 us-gaap:InvestmentAffiliatedIssuerMember wreif:GreatEscapesRVFundIVLPMember wreif:CommonEquityLimitedPartnerInterestsMember 2024-03-31 0001922947 country:US wreif:ManufacturedHousingCommunityMember us-gaap:InvestmentAffiliatedIssuerMember wreif:NewarkForestMHPSLLCMember wreif:CommonEquityMembershipInterestsMember 2023-04-01 2024-03-31 0001922947 country:US wreif:ManufacturedHousingCommunityMember us-gaap:InvestmentAffiliatedIssuerMember wreif:NewarkForestMHPSLLCMember wreif:CommonEquityMembershipInterestsMember 2024-03-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXDeptfordInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2023-04-01 2024-03-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXDeptfordInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2024-03-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXFashionSquareInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2023-04-01 2024-03-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXFashionSquareInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2024-03-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXFairOaksInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2023-04-01 2024-03-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXFairOaksInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2024-03-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXManchesterInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2023-04-01 2024-03-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXManchesterInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2024-03-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXMountProspectInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2023-04-01 2024-03-31 0001922947 country:US us-gaap:RetailMember us-gaap:InvestmentAffiliatedIssuerMember wreif:LBXMountProspectInvestorsLLCMember wreif:CommonEquityMembershipInterestsMember 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerMember wreif:PostSandstonePartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2023-04-01 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerMember wreif:PostSandstonePartnersLLCMember wreif:CommonEquityMembershipInterestsMember 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerMember wreif:SCCFlintRiverHoldingsLPMember wreif:PreferredEquityMembershipInterestsMember 2023-04-01 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerMember wreif:SCCFlintRiverHoldingsLPMember wreif:PreferredEquityMembershipInterestsMember 2024-03-31 0001922947 country:US wreif:LightIndustrialMember us-gaap:InvestmentAffiliatedIssuerMember wreif:TCBKMUSIndustrialFundILPMember wreif:CommonEquityLimitedPartnerInterestsMember 2023-04-01 2024-03-31 0001922947 country:US wreif:LightIndustrialMember us-gaap:InvestmentAffiliatedIssuerMember wreif:TCBKMUSIndustrialFundILPMember wreif:CommonEquityLimitedPartnerInterestsMember 2024-03-31 0001922947 us-gaap:InvestmentAffiliatedIssuerMember 2024-03-31 0001922947 country:US wreif:SelfStorageManufacturedHousingCommunityMember us-gaap:InvestmentAffiliatedIssuerControlledMember wreif:CrystalViewCapitalFundIVLPMember wreif:CommonEquityLimitedPartnerInterestsMember 2023-04-01 2024-03-31 0001922947 country:US wreif:SelfStorageManufacturedHousingCommunityMember us-gaap:InvestmentAffiliatedIssuerControlledMember wreif:CrystalViewCapitalFundIVLPMember wreif:CommonEquityLimitedPartnerInterestsMember 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerControlledMember wreif:FairbridgeCreditLLCMember wreif:PreferredEquityMembershipInterestsMember 2023-04-01 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerControlledMember wreif:FairbridgeCreditLLCMember wreif:PreferredEquityMembershipInterestsMember 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerControlledMember wreif:FairbridgeGrandHamptonLLCMember wreif:PreferredEquityMembershipInterestsMember 2023-04-01 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerControlledMember wreif:FairbridgeGrandHamptonLLCMember wreif:PreferredEquityMembershipInterestsMember 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerControlledMember wreif:MadisonTerraceGroupLLCMember wreif:PreferredEquityMembershipInterestsMember 2023-04-01 2024-03-31 0001922947 country:US srt:MultifamilyMember us-gaap:InvestmentAffiliatedIssuerControlledMember wreif:MadisonTerraceGroupLLCMember wreif:PreferredEquityMembershipInterestsMember 2024-03-31 0001922947 country:US us-gaap:ShortTermInvestmentsMember wreif:FidelityUSGovernmentMoneyMarketPortfolioFundMember wreif:InstitutionalClassMember 2023-04-01 2024-03-31 0001922947 country:US us-gaap:ShortTermInvestmentsMember wreif:FidelityUSGovernmentMoneyMarketPortfolioFundMember wreif:InstitutionalClassMember 2024-03-31 0001922947 wreif:CommonEquityLimitedPartnershipAndMembershipInterestMember 2024-03-31 0001922947 wreif:PreferredEquityLimitedPartnershipAndMembershipInterestMember 2024-03-31 0001922947 wreif:TotalRealEstateInvestmentsMember 2024-03-31 0001922947 wreif:MoneyMarketInvestmentMember 2024-03-31 0001922947 srt:MultifamilyMember 2024-03-31 0001922947 srt:SingleFamilyMember 2024-03-31 0001922947 wreif:SelfStorageManufacturedHousingCommunityMember 2024-03-31 0001922947 wreif:RecreationalVehicleParksMember 2024-03-31 0001922947 us-gaap:RetailMember 2024-03-31 0001922947 wreif:LightIndustrialMember 2024-03-31 0001922947 wreif:TotalRealEstateInvestmentsMember 2024-03-31 0001922947 wreif:MoneyMarketInvestmentMember 2024-03-31 0001922947 wreif:NonControlNonAffiliateInvestmentsMember 2024-10-01 2024-12-31 0001922947 wreif:NonControlNonAffiliateInvestmentsMember 2023-10-01 2023-12-31 0001922947 wreif:NonControlNonAffiliateInvestmentsMember 2024-04-01 2024-12-31 0001922947 wreif:NonControlNonAffiliateInvestmentsMember 2023-04-01 2023-12-31 0001922947 wreif:NonControlAffiliateInvestmentsMember 2024-10-01 2024-12-31 0001922947 wreif:NonControlAffiliateInvestmentsMember 2023-10-01 2023-12-31 0001922947 wreif:NonControlAffiliateInvestmentsMember 2024-04-01 2024-12-31 0001922947 wreif:NonControlAffiliateInvestmentsMember 2023-04-01 2023-12-31 0001922947 us-gaap:InvestmentAffiliatedIssuerControlledMember 2024-10-01 2024-12-31 0001922947 us-gaap:InvestmentAffiliatedIssuerControlledMember 2023-10-01 2023-12-31 0001922947 us-gaap:InvestmentAffiliatedIssuerControlledMember 2024-04-01 2024-12-31 0001922947 us-gaap:InvestmentAffiliatedIssuerControlledMember 2023-04-01 2023-12-31 0001922947 2024-10-01 2024-12-31 0001922947 2023-10-01 2023-12-31 0001922947 2023-04-01 2023-12-31 0001922947 us-gaap:InvestmentUnaffiliatedIssuerMember 2024-10-01 2024-12-31 0001922947 us-gaap:InvestmentUnaffiliatedIssuerMember 2023-10-01 2023-12-31 0001922947 us-gaap:InvestmentUnaffiliatedIssuerMember 2024-04-01 2024-12-31 0001922947 us-gaap:InvestmentUnaffiliatedIssuerMember 2023-04-01 2023-12-31 0001922947 us-gaap:InvestmentAffiliatedIssuerMember 2024-10-01 2024-12-31 0001922947 us-gaap:InvestmentAffiliatedIssuerMember 2023-10-01 2023-12-31 0001922947 us-gaap:InvestmentAffiliatedIssuerMember 2024-04-01 2024-12-31 0001922947 us-gaap:InvestmentAffiliatedIssuerMember 2023-04-01 2023-12-31 0001922947 2024-09-30 0001922947 2023-09-30 0001922947 2023-03-31 0001922947 2023-12-31 0001922947 wreif:FundMember 2024-11-01 2024-11-01 0001922947 wreif:IcarusSidecarMember 2024-11-01 2024-11-01 0001922947 2024-11-01 2024-11-01 0001922947 wreif:WellingsRealEstateIncomeFundMember 2024-11-02 0001922947 wreif:IcarusWellingsJVLLCMember 2024-11-26 0001922947 wreif:WellingsRealEstateIncomeFundMember 2024-11-26 0001922947 wreif:IcarusSidecarMember 2024-12-12 0001922947 wreif:IcarusSidecarMember 2024-12-31 0001922947 wreif:WellingsRealEstateIncomeFundMember 2024-12-31 0001922947 wreif:ControlInvestmentsMember 2024-12-31 0001922947 srt:MinimumMember wreif:AffiliateInvestmentsMember 2024-12-31 0001922947 srt:MaximumMember wreif:AffiliateInvestmentsMember 2024-12-31 0001922947 wreif:ControlInvestmentsMember 2024-10-01 2024-12-31 0001922947 wreif:ControlInvestmentsMember 2024-04-01 2024-12-31 0001922947 wreif:ControlInvestmentsMember 2023-10-01 2023-12-31 0001922947 wreif:ControlInvestmentsMember 2023-04-01 2023-12-31 0001922947 us-gaap:FairValueInputsLevel1Member wreif:CommonEquityMember 2024-12-31 0001922947 us-gaap:FairValueInputsLevel2Member wreif:CommonEquityMember 2024-12-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:CommonEquityMember 2024-12-31 0001922947 wreif:NAVAsPracticalExpedientMember wreif:CommonEquityMember 2024-12-31 0001922947 wreif:CommonEquityMember 2024-12-31 0001922947 us-gaap:FairValueInputsLevel1Member wreif:PreferredEquityMember 2024-12-31 0001922947 us-gaap:FairValueInputsLevel2Member wreif:PreferredEquityMember 2024-12-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:PreferredEquityMember 2024-12-31 0001922947 wreif:NAVAsPracticalExpedientMember wreif:PreferredEquityMember 2024-12-31 0001922947 wreif:PreferredEquityMember 2024-12-31 0001922947 us-gaap:FairValueInputsLevel1Member us-gaap:ShortTermInvestmentsMember 2024-12-31 0001922947 us-gaap:FairValueInputsLevel2Member us-gaap:ShortTermInvestmentsMember 2024-12-31 0001922947 us-gaap:FairValueInputsLevel3Member us-gaap:ShortTermInvestmentsMember 2024-12-31 0001922947 wreif:NAVAsPracticalExpedientMember us-gaap:ShortTermInvestmentsMember 2024-12-31 0001922947 us-gaap:FairValueInputsLevel1Member 2024-12-31 0001922947 us-gaap:FairValueInputsLevel2Member 2024-12-31 0001922947 us-gaap:FairValueInputsLevel3Member 2024-12-31 0001922947 wreif:NAVAsPracticalExpedientMember 2024-12-31 0001922947 us-gaap:FairValueInputsLevel1Member wreif:CommonEquityMember 2024-03-31 0001922947 us-gaap:FairValueInputsLevel2Member wreif:CommonEquityMember 2024-03-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:CommonEquityMember 2024-03-31 0001922947 wreif:NAVAsPracticalExpedientMember wreif:CommonEquityMember 2024-03-31 0001922947 wreif:CommonEquityMember 2024-03-31 0001922947 us-gaap:FairValueInputsLevel1Member wreif:PreferredEquityMember 2024-03-31 0001922947 us-gaap:FairValueInputsLevel2Member wreif:PreferredEquityMember 2024-03-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:PreferredEquityMember 2024-03-31 0001922947 wreif:NAVAsPracticalExpedientMember wreif:PreferredEquityMember 2024-03-31 0001922947 wreif:PreferredEquityMember 2024-03-31 0001922947 us-gaap:FairValueInputsLevel1Member us-gaap:ShortTermInvestmentsMember 2024-03-31 0001922947 us-gaap:FairValueInputsLevel2Member us-gaap:ShortTermInvestmentsMember 2024-03-31 0001922947 us-gaap:FairValueInputsLevel3Member us-gaap:ShortTermInvestmentsMember 2024-03-31 0001922947 wreif:NAVAsPracticalExpedientMember us-gaap:ShortTermInvestmentsMember 2024-03-31 0001922947 us-gaap:FairValueInputsLevel1Member 2024-03-31 0001922947 us-gaap:FairValueInputsLevel2Member 2024-03-31 0001922947 us-gaap:FairValueInputsLevel3Member 2024-03-31 0001922947 wreif:NAVAsPracticalExpedientMember 2024-03-31 0001922947 wreif:LightIndustrialMember 2024-04-01 2024-12-31 0001922947 wreif:LightIndustrialMember 2024-12-31 0001922947 srt:MinimumMember wreif:LightIndustrialMember 2024-04-01 2024-12-31 0001922947 srt:MaximumMember wreif:LightIndustrialMember 2024-04-01 2024-12-31 0001922947 srt:MultifamilyMember 2024-04-01 2024-12-31 0001922947 srt:MultifamilyMember 2024-12-31 0001922947 wreif:LightIndustrialMember 2023-04-01 2024-03-31 0001922947 srt:MinimumMember wreif:LightIndustrialMember 2023-04-01 2024-03-31 0001922947 srt:MaximumMember wreif:LightIndustrialMember 2023-04-01 2024-03-31 0001922947 srt:MultifamilyMember 2023-04-01 2024-03-31 0001922947 srt:MultifamilyMember 2024-03-31 0001922947 2023-04-01 2024-03-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:CommonEquityMember 2024-12-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:CommonEquityMember 2024-04-01 2024-12-31 0001922947 srt:MinimumMember us-gaap:FairValueInputsLevel3Member wreif:CommonEquityMember 2024-12-31 0001922947 srt:MaximumMember us-gaap:FairValueInputsLevel3Member wreif:CommonEquityMember 2024-12-31 0001922947 srt:MedianMember us-gaap:FairValueInputsLevel3Member wreif:CommonEquityMember 2024-12-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:CommonEquityTwoMember 2024-12-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:CommonEquityTwoMember 2024-04-01 2024-12-31 0001922947 srt:MaximumMember us-gaap:FairValueInputsLevel3Member wreif:CommonEquityTwoMember 2024-12-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:PreferredEquityMember 2024-12-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:PreferredEquityMember 2024-04-01 2024-12-31 0001922947 srt:MinimumMember us-gaap:FairValueInputsLevel3Member wreif:PreferredEquityMember 2024-12-31 0001922947 srt:MaximumMember us-gaap:FairValueInputsLevel3Member wreif:PreferredEquityMember 2024-12-31 0001922947 srt:MedianMember us-gaap:FairValueInputsLevel3Member wreif:PreferredEquityMember 2024-12-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:CommonEquityThreeMember 2024-12-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:CommonEquityThreeMember 2024-04-01 2024-12-31 0001922947 srt:MaximumMember us-gaap:FairValueInputsLevel3Member wreif:CommonEquityThreeMember 2024-12-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:CommonEquityThreeMember 2024-03-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:CommonEquityThreeMember 2023-04-01 2024-03-31 0001922947 srt:MinimumMember us-gaap:FairValueInputsLevel3Member wreif:CommonEquityThreeMember 2024-03-31 0001922947 srt:MaximumMember us-gaap:FairValueInputsLevel3Member wreif:CommonEquityThreeMember 2024-03-31 0001922947 srt:MedianMember us-gaap:FairValueInputsLevel3Member wreif:CommonEquityThreeMember 2024-03-31 0001922947 us-gaap:FairValueInputsLevel3Member 2023-04-01 2024-03-31 0001922947 srt:MaximumMember us-gaap:FairValueInputsLevel3Member 2024-03-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:PreferredEquityMember 2024-03-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:PreferredEquityMember 2023-04-01 2024-03-31 0001922947 srt:MaximumMember us-gaap:FairValueInputsLevel3Member wreif:PreferredEquityMember 2024-03-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:CommonEquityFourMember 2024-03-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:CommonEquityFourMember 2023-04-01 2024-03-31 0001922947 srt:MinimumMember us-gaap:FairValueInputsLevel3Member wreif:CommonEquityFourMember 2024-03-31 0001922947 srt:MaximumMember us-gaap:FairValueInputsLevel3Member wreif:CommonEquityFourMember 2024-03-31 0001922947 srt:MedianMember us-gaap:FairValueInputsLevel3Member wreif:CommonEquityFourMember 2024-03-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:CommonEquityMember 2024-03-31 0001922947 us-gaap:FairValueInputsLevel3Member 2024-04-01 2024-12-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:CommonEquityMember 2023-03-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:CommonEquityMember 2023-04-01 2023-12-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:CommonEquityMember 2023-12-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:PreferredEquityMember 2023-03-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:PreferredEquityMember 2023-04-01 2023-12-31 0001922947 us-gaap:FairValueInputsLevel3Member wreif:PreferredEquityMember 2023-12-31 0001922947 us-gaap:FairValueInputsLevel3Member 2023-03-31 0001922947 us-gaap:FairValueInputsLevel3Member 2023-04-01 2023-12-31 0001922947 us-gaap:FairValueInputsLevel3Member 2023-12-31 0001922947 wreif:CrystalViewCapitalFundIVLPMember 2024-04-01 0001922947 wreif:CrystalViewCapitalFundIVLPMember 2024-12-31 0001922947 wreif:CrystalViewCapitalFundIVLPMember 2024-04-01 2024-12-31 0001922947 wreif:GreatEscapesRVFundIVLPMember 2024-04-01 0001922947 wreif:GreatEscapesRVFundIVLPMember 2024-12-31 0001922947 wreif:GreatEscapesRVFundIVLPMember 2024-04-01 2024-12-31 0001922947 wreif:LBXDeptfordInvestorsLLCMember 2024-04-01 0001922947 wreif:LBXDeptfordInvestorsLLCMember 2024-12-31 0001922947 wreif:LBXDeptfordInvestorsLLCMember 2024-04-01 2024-12-31 0001922947 wreif:LBXFairOaksInvestorsLLCMember 2024-04-01 0001922947 wreif:LBXFairOaksInvestorsLLCMember 2024-12-31 0001922947 wreif:LBXFairOaksInvestorsLLCMember 2024-04-01 2024-12-31 0001922947 wreif:LBXFashionSquareInvestorsLLCMember 2024-04-01 0001922947 wreif:LBXFashionSquareInvestorsLLCMember 2024-12-31 0001922947 wreif:LBXFashionSquareInvestorsLLCMember 2024-04-01 2024-12-31 0001922947 wreif:LBXManchesterInvestorsLLCMember 2024-04-01 0001922947 wreif:LBXManchesterInvestorsLLCMember 2024-12-31 0001922947 wreif:LBXManchesterInvestorsLLCMember 2024-04-01 2024-12-31 0001922947 wreif:LBXMountProspectInvestorsLLCMember 2024-04-01 0001922947 wreif:LBXMountProspectInvestorsLLCMember 2024-12-31 0001922947 wreif:LBXMountProspectInvestorsLLCMember 2024-04-01 2024-12-31 0001922947 wreif:NewarkForestMHPSLLCMember 2024-04-01 0001922947 wreif:NewarkForestMHPSLLCMember 2024-12-31 0001922947 wreif:NewarkForestMHPSLLCMember 2024-04-01 2024-12-31 0001922947 wreif:PostSandstonePartnersLLCMember 2024-04-01 0001922947 wreif:PostSandstonePartnersLLCMember 2024-12-31 0001922947 wreif:PostSandstonePartnersLLCMember 2024-04-01 2024-12-31 0001922947 wreif:PREstatesJBLLCMember 2024-04-01 0001922947 wreif:PREstatesJBLLCMember 2024-12-31 0001922947 wreif:PREstatesJBLLCMember 2024-04-01 2024-12-31 0001922947 wreif:RiparianBaltimoreSFRInvestorsILLCMember 2024-04-01 0001922947 wreif:RiparianBaltimoreSFRInvestorsILLCMember 2024-12-31 0001922947 wreif:RiparianBaltimoreSFRInvestorsILLCMember 2024-04-01 2024-12-31 0001922947 wreif:SCCFlintRiverHoldingsLPMember 2024-04-01 0001922947 wreif:SCCFlintRiverHoldingsLPMember 2024-12-31 0001922947 wreif:SCCFlintRiverHoldingsLPMember 2024-04-01 2024-12-31 0001922947 wreif:TCBKMUSIndustrialFundILPMember 2024-04-01 0001922947 wreif:TCBKMUSIndustrialFundILPMember 2024-12-31 0001922947 wreif:TCBKMUSIndustrialFundILPMember 2024-04-01 2024-12-31 0001922947 wreif:NonControlAffiliateInvestmentsMember 2024-04-01 0001922947 wreif:NonControlAffiliateInvestmentsMember 2024-04-01 2024-12-31 0001922947 wreif:NonControlAffiliateInvestmentsMember 2024-12-31 0001922947 wreif:CrystalViewCapitalFundIVLPOneMember 2024-04-01 0001922947 wreif:CrystalViewCapitalFundIVLPOneMember 2024-12-31 0001922947 wreif:CrystalViewCapitalFundIVLPOneMember 2024-04-01 2024-12-31 0001922947 wreif:FairbridgeCreditLLCMember 2024-04-01 0001922947 wreif:FairbridgeCreditLLCMember 2024-12-31 0001922947 wreif:FairbridgeCreditLLCMember 2024-04-01 2024-12-31 0001922947 wreif:FairbridgeGrandHamptonLLCMember 2024-04-01 0001922947 wreif:FairbridgeGrandHamptonLLCMember 2024-12-31 0001922947 wreif:FairbridgeGrandHamptonLLCMember 2024-04-01 2024-12-31 0001922947 wreif:IcarusWellingsJVLLCMember 2024-04-01 0001922947 wreif:IcarusWellingsJVLLCMember 2024-12-31 0001922947 wreif:IcarusWellingsJVLLCMember 2024-04-01 2024-12-31 0001922947 wreif:MadisonTerraceGroupLLCMember 2024-04-01 0001922947 wreif:MadisonTerraceGroupLLCMember 2024-12-31 0001922947 wreif:MadisonTerraceGroupLLCMember 2024-04-01 2024-12-31 0001922947 wreif:TotalControlInvestmentsMember 2024-04-01 0001922947 wreif:TotalControlInvestmentsMember 2024-04-01 2024-12-31 0001922947 wreif:TotalControlInvestmentsMember 2024-12-31 0001922947 wreif:TotalInvestmentsMember 2024-04-01 0001922947 wreif:TotalInvestmentsMember 2024-04-01 2024-12-31 0001922947 wreif:TotalInvestmentsMember 2024-12-31 0001922947 wreif:CapitalFundIVLPMember 2024-07-01 2024-09-30 0001922947 wreif:CapitalFundIVLPMember 2023-07-01 2023-09-30 0001922947 wreif:CapitalFundIVLPMember 2024-01-01 2024-09-30 0001922947 wreif:CapitalFundIVLPMember 2023-01-01 2023-09-30 0001922947 wreif:FiveOneFourThatWayLLCMember 2024-12-31 0001922947 wreif:TotalFundedToDateMember wreif:FiveOneFourThatWayLLCMember 2024-12-31 0001922947 us-gaap:UnfundedLoanCommitmentMember wreif:FiveOneFourThatWayLLCMember 2024-12-31 0001922947 wreif:FairbridgeGrandHamptonLLCMember 2024-12-31 0001922947 wreif:TotalFundedToDateMember wreif:FairbridgeGrandHamptonLLCMember 2024-12-31 0001922947 us-gaap:UnfundedLoanCommitmentMember wreif:FairbridgeGrandHamptonLLCMember 2024-12-31 0001922947 wreif:MadisonTerraceGroupLLCMember 2024-12-31 0001922947 wreif:TotalFundedToDateMember wreif:MadisonTerraceGroupLLCMember 2024-12-31 0001922947 us-gaap:UnfundedLoanCommitmentMember wreif:MadisonTerraceGroupLLCMember 2024-12-31 0001922947 wreif:IcarusWellingsJVLLCMember 2024-12-31 0001922947 wreif:TotalFundedToDateMember wreif:IcarusWellingsJVLLCMember 2024-12-31 0001922947 us-gaap:UnfundedLoanCommitmentMember wreif:IcarusWellingsJVLLCMember 2024-12-31 0001922947 wreif:PREstatesJBLLCMember 2024-12-31 0001922947 wreif:TotalFundedToDateMember wreif:PREstatesJBLLCMember 2024-12-31 0001922947 us-gaap:UnfundedLoanCommitmentMember wreif:PREstatesJBLLCMember 2024-12-31 0001922947 wreif:SCCFlintRiverHoldingsLPMember 2024-12-31 0001922947 wreif:TotalFundedToDateMember wreif:SCCFlintRiverHoldingsLPMember 2024-12-31 0001922947 us-gaap:UnfundedLoanCommitmentMember wreif:SCCFlintRiverHoldingsLPMember 2024-12-31 0001922947 wreif:SROACapitalFundVIIIGPCoInvestmentLLCMember 2024-12-31 0001922947 wreif:TotalFundedToDateMember wreif:SROACapitalFundVIIIGPCoInvestmentLLCMember 2024-12-31 0001922947 us-gaap:UnfundedLoanCommitmentMember wreif:SROACapitalFundVIIIGPCoInvestmentLLCMember 2024-12-31 0001922947 wreif:TotalFundedToDateMember 2024-12-31 0001922947 us-gaap:UnfundedLoanCommitmentMember 2024-12-31 0001922947 2023-01-01 2023-01-31 0001922947 wreif:PrivateOfferingMember 2024-04-01 2024-12-31 0001922947 srt:MinimumMember 2024-04-01 2024-12-31 0001922947 srt:MaximumMember 2024-04-01 2024-12-31 0001922947 wreif:FourOneTwoThousandTwentyFourMember 2024-04-01 2024-12-31 0001922947 wreif:FiveOneTwoThousandTwentyFourMember 2024-04-01 2024-12-31 0001922947 wreif:SixThreeTwoThousandTwentyFourMember 2024-04-01 2024-12-31 0001922947 wreif:SevenOneTwoThousandTwentyFourMember 2024-04-01 2024-12-31 0001922947 wreif:EightOneTwoThousandTwentyFourMember 2024-04-01 2024-12-31 0001922947 wreif:NineThreeTwoThousandTwentyFourMember 2024-04-01 2024-12-31 0001922947 wreif:TenOneTwoThousandTwentyFourMember 2024-04-01 2024-12-31 0001922947 wreif:ElevenOneTwoThousandTwentyFourMember 2024-04-01 2024-12-31 0001922947 wreif:TwelveTwoTwoThousandTwentyFourMember 2024-04-01 2024-12-31 0001922947 wreif:FourThreeTwoThousandTwentyThreeMember 2023-04-01 2023-12-31 0001922947 wreif:FiveOneTwoThousandTwentyThreeMember 2023-04-01 2023-12-31 0001922947 wreif:SixOneTwoThousandTwentyThreeMember 2023-04-01 2023-12-31 0001922947 wreif:SevenThreeTwoThousandTwentyThreeMember 2023-04-01 2023-12-31 0001922947 wreif:EightOneTwoThousandTwentyThreeMember 2023-04-01 2023-12-31 0001922947 wreif:NineOneTwoThousandTwentyThreeMember 2023-04-01 2023-12-31 0001922947 wreif:TenTwoTwoThousandTwentyThreeMember 2023-04-01 2023-12-31 0001922947 wreif:ElevenOneTwoThousandTwentyThreeMember 2023-04-01 2023-12-31 0001922947 wreif:TwelveOneTwoThousandTwentyThreeMember 2023-04-01 2023-12-31 0001922947 us-gaap:SubsequentEventMember 2025-01-01 2025-01-01 0001922947 us-gaap:SubsequentEventMember 2025-01-30 0001922947 us-gaap:SubsequentEventMember 2025-01-30 2025-01-30 0001922947 wreif:FinancialHighlightsMember 2024-03-31 0001922947 wreif:FinancialHighlightsMember 2023-03-31 0001922947 wreif:FinancialHighlightsMember 2024-04-01 2024-12-31 0001922947 wreif:FinancialHighlightsMember 2023-04-01 2023-12-31 0001922947 wreif:FinancialHighlightsMember 2024-12-31 0001922947 wreif:FinancialHighlightsMember 2023-12-31 xbrli:shares iso4217:USD iso4217:USD xbrli:shares xbrli:pure