0001713407-23-000088.txt : 20230915 0001713407-23-000088.hdr.sgml : 20230915 20230915140751 ACCESSION NUMBER: 0001713407-23-000088 CONFORMED SUBMISSION TYPE: 424B3 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20230915 DATE AS OF CHANGE: 20230915 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BROOKFIELD REAL ESTATE INCOME TRUST INC. CENTRAL INDEX KEY: 0001713407 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 822365593 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 424B3 SEC ACT: 1933 Act SEC FILE NUMBER: 333-255557 FILM NUMBER: 231257814 BUSINESS ADDRESS: STREET 1: 250 VESEY STREET STREET 2: 15TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10281 BUSINESS PHONE: 212-417-7000 MAIL ADDRESS: STREET 1: 250 VESEY STREET STREET 2: 15TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10281 FORMER COMPANY: FORMER CONFORMED NAME: OAKTREE REAL ESTATE INCOME TRUST, INC. DATE OF NAME CHANGE: 20170728 424B3 1 prosupp09-15x23.htm 424B3 Document

Filed Pursuant to Rule 424(b)(3)
        Registration No. 333-255557

BROOKFIELD REAL ESTATE INCOME TRUST INC.
SUPPLEMENT NO. 6 DATED SEPTEMBER 15, 2023
TO THE PROSPECTUS DATED APRIL 11, 2023

This prospectus supplement (“Supplement”) is part of and should be read in conjunction with the prospectus of Brookfield Real Estate Income Trust Inc., dated April 11, 2023 (as supplemented to date, the “Prospectus”). Unless otherwise defined herein, capitalized terms used in this Supplement shall have the same meanings as in the Prospectus. References herein to the “Company,” “we,” “us,” or “our” refer to Brookfield Real Estate Income Trust Inc. and its subsidiaries unless the context specifically requires otherwise.

The purposes of this Supplement are as follows:
to provide updates on our investment portfolio;
to disclose the transaction price for each class of our common stock sold in this public offering (the “Offering”) as of October 1, 2023;
to disclose the calculation of our August 31, 2023 net asset value (“NAV”) per share for all share classes; and
to provide an update on the status of our Offering.
Investment Portfolio Updates
As of August 31, 2023, our portfolio, based on the total asset value of our investments measured at fair value, consisted of 86% real estate properties and 14% real estate-related loans and securities. As of August 31, 2023, our real estate-related loans and securities consisted of 82 investments with an aggregate fair value of approximately $301 million. As of August 31, 2023, our real estate properties, based on the fair value of our properties, consisted of rental housing (63%), net lease (26%), logistics (6%) and office (5%).
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October 1, 2023 Transaction Price
The transaction price for each share class of our common stock for subscriptions accepted as of October 1, 2023 (and repurchases as of September 30, 2023) is as follows:
Transaction Price 
(per share)
Class S$12.2713 
Class I$12.3597 
Class D$12.4305 
Class T$12.3597 
The October 1, 2023 transaction price for each of our share classes is equal to such class’s NAV per share as of August 31, 2023. A detailed calculation of the NAV per share is set forth below. The purchase price of our common stock for each share class equals the transaction price of such class, plus applicable upfront selling commissions and dealer manager fees. The repurchase price for each share class equals the transaction price of such class. The transaction price per Class T share is equal to our Class I transaction price since no Class T shares are outstanding.
August 31, 2023 NAV Per Share
NAV per share is calculated in accordance with the valuation guidelines that have been approved by our board of directors. Our NAV per share, which is updated as of the last calendar day of each month, is posted on our website at www.BrookfieldREIT.com and is made available on our toll-free, automated telephone line at (833) 625-7348. Please refer to “Net Asset Value Calculation and Valuation Guidelines” in the Prospectus for important information about how our NAV is determined. We have included a breakdown of the components of total NAV and NAV per share for August 31, 2023 along with the immediately preceding month.
Our total NAV presented in the following tables includes the NAV of our Class S, Class I, Class D, Class T, Class C and Class E shares of common stock, as well as partnership interests in the Operating Partnership held by parties other than the Company. The following table provides a breakdown of the major components of our total NAV as of August 31, 2023 ($ and shares/units in thousands):
Components of NAVAugust 31, 2023
Investments in real estate$1,743,228 
Investments in real estate-related loans and securities301,117 
Investments in unconsolidated entities79,286 
Cash and cash equivalents30,593 
Restricted cash17,548 
Other assets57,205 
Debt obligations(1,033,884)
Accrued stockholder servicing fees(1)
(328)
Management fee payable(1,132)
Dividend payable(5,272)
Subscriptions received in advance(3,868)
Other liabilities(44,269)
Non-controlling interests in joint ventures(17,599)
Net asset value$1,122,625 
Number of shares/units outstanding91,310 
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(1)
Stockholder servicing fees only apply to Class S, Class T and Class D shares. For purposes of NAV, we recognize the stockholder servicing fee as a reduction of NAV on a monthly basis as such fee is paid. Under accounting principles generally accepted in the United States (“GAAP”), we accrue the full cost of the stockholder servicing fee as an offering cost at the time we sell Class S, Class T and Class D shares of our common stock. As of August 31, 2023, we had accrued under GAAP approximately $26.9 million of stockholder servicing fees payable to the Dealer Manager related to the Class S and Class D shares sold (as of August 31, 2023, we had not sold any Class T shares).

The following table provides a breakdown of our total NAV and NAV per share/unit by class as of August 31, 2023 ($ and shares/units in thousands, except per share/unit data):
Class S
Shares
Class I
Shares
Class D
Shares
Class T
Shares
Class C
Shares(1)
Class E Shares(1)
Third-party Operating Partnership Units(2)
Total
Net asset value$439,271 $519,911 $1,831 $— $119,118 $41,537 $957 $1,122,625 
Number of shares/units outstanding 35,797 42,065 147 — 9,856 3,367 78 91,310 
NAV per share/unit as of August 31, 2023
$12.2713 $12.3597 $12.4305 $— $12.0856 $12.3356 $12.3356 
    

(1)Class C and Class E shares of our common stock are offered to investors pursuant to private offerings.
(2)Includes the units of the Operating Partnership held by parties other than the Company.

As of August 31, 2023, we had not sold any Class T shares.
Set forth below are the weighted averages of the key assumptions in the discounted cash flow methodology used in the August 31, 2023 valuations, based on property types.
Property Type
Discount Rate
Exit Capitalization Rate
Rental Housing6.8%5.3%
Net Lease6.4%4.6%
Office8.3%6.9%
Logistics6.7%5.6%

A change in these assumptions would impact the calculation of the value of our property investments. For example, assuming all other factors remained unchanged, the changes listed below would result in the following effects on our investment values:
InputHypothetical
Change
Rental Housing
Investment
Values
Net Lease
Investment
Values
Office
Investment
Values
Logistics
Investment
Values
Discount Rate.25% Decrease2.0%2.0%2.1%2.2%
(weighted average).25% Increase(1.8)%(2.0)%(2.1)%(2.0)%
Exit Capitalization Rate.25% Decrease3.0%3.8%2.5%3.2%
(weighted average).25% Increase(2.7)%(3.2)%(2.4)%(2.7)%

The preceding tables do not include recently acquired properties, which are held at cost in accordance with our valuation guidelines.


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The following table provides a breakdown of the major components of our total NAV as of July 31, 2023 ($ and shares/units in thousands):
Components of NAV
July 31, 2023
Investments in real estate$1,753,281 
Investments in real estate-related loans and securities311,711 
Investments in unconsolidated entities80,661 
Cash and cash equivalents24,603 
Restricted cash19,669 
Other assets65,761 
Debt obligations(1,034,840)
Accrued stockholder servicing fees(1)
(333)
Management fee payable(1,146)
Dividend payable(5,284)
Subscriptions received in advance(6,540)
Other liabilities(50,421)
Non-controlling interests in joint ventures(19,860)
Net asset value$1,137,262 
Number of shares/units outstanding91,418 
(1)
Stockholder servicing fees only apply to Class S, Class T and Class D shares. For purposes of NAV, we recognize the stockholder servicing fee as a reduction of NAV on a monthly basis as such fee is paid. Under GAAP, we accrue the full cost of the stockholder servicing fee as an offering cost at the time we sell Class S, Class T and Class D shares of our common stock. As of July 31, 2023, we had accrued under GAAP approximately $28.0 million of stockholder servicing fees payable to the Dealer Manager related to the Class S and Class D shares sold (as of July 31, 2023, we had not sold any Class T shares).

The following table provides a breakdown of our total NAV and NAV per share/unit by class as of July 31, 2023 ($ and shares/units in thousands, except per share/unit data):
Class S
Shares
Class I
Shares
Class D
Shares
Class T
Shares
Class C
Shares(1)
Class E Shares(1)
Third-party Operating Partnership Units(2)
Total
Net asset value$441,762 $529,833 $1,812 $— $120,526 $42,366 $963 $1,137,262 
Number of shares/units outstanding 35,580 42,366 144 — 9,856 3,395 77 91,418 
NAV Per Share/Unit as of July 31, 2023
$12.4159 $12.5063 $12.5746 $— $12.2284 $12.4806 $12.4806 

(1)Class C and Class E shares of our common stock are offered to investors pursuant to private offerings.
(2)Includes the units of the Operating Partnership held by parties other than the Company.

As of July 31, 2023, we had not sold any Class T shares.
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Status of Our Offering
We are currently offering on a continuous basis up to $7.5 billion in shares of common stock, consisting of up to $6.0 billion in shares in our primary offering and up to $1.5 billion in shares pursuant to our distribution reinvestment plan. As of the date hereof, we have issued and sold (i) 28,468,311 shares of our common stock (consisting of 21,148,220 Class S shares, 7,169,986 Class I shares and 150,105 Class D shares; no Class T shares have been issued or sold) in our primary offering for total proceeds of $378,975,728 and (ii) 1,710,984 shares of our common stock (consisting of 1,523,123 Class S shares, 187,674 Class I shares and 187 Class D shares; no Class T shares had been issued or sold) pursuant to our distribution reinvestment plan for a total value of $22,502,605. We intend to continue selling shares in the Offering on a monthly basis.
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