Organization and Business Purpose

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Business Purpose

Organization and Business Purpose

Invesco Real Estate Income Trust Inc. (the “Company” or “we”) was incorporated in October 2018 as a Maryland corporation and qualified as a real estate investment trust (“REIT”) for U.S. federal income tax purposes for the taxable year ended December 31, 2020. We are focused on investing in stabilized, income-oriented commercial real estate in the United States. To a lesser extent, we also invest in real estate-related securities to provide a source of liquidity for our share repurchase plan, cash management and other purposes. We own, and expect to continue to own, all or substantially all of our assets through Invesco REIT Operating Partnership L.P. (“INREIT OP”), of which we are the sole general partner. We are externally managed by Invesco Advisers, Inc. (the “Adviser”), a registered investment adviser and an indirect, wholly-owned subsidiary of Invesco Ltd. (“Invesco”), a leading independent global investment management firm. Invesco REIT Special Limited Partner L.L.C. (the “Special Limited Partner”), a wholly-owned subsidiary of Invesco, holds a participation interest in INREIT OP. The Company was capitalized in October 2019 by an Invesco affiliate and commenced real estate operations in September 2020.

On May 14, 2021 our Registration Statement on Form S-11 (File No. 333-254931) with respect to our public offering was declared effective by the Securities and Exchange Commission (“SEC”). We have registered with the SEC a public offering of up to $3.0 billion in shares of common stock, consisting of up to $2.4 billion in shares in our primary offering (the “Primary Offering”) and up to $600 million in shares under our distribution reinvestment plan (collectively, the “Offering”). We are offering to sell any combination of five classes of shares of our common stock in the Offering: Class T shares, Class S shares, Class D shares, Class I shares and Class E shares, with a dollar value up to the maximum offering amount. The share classes have different upfront selling commissions and dealer manager fees and different ongoing stockholder servicing fees. As of June 30, 2021, we received aggregate proceeds of approximately $21,000 from selling shares of the Company’s common stock through the Offering.

We are conducting a private offering exempt from registration under the Securities Act of 1933, as amended (the “Private Offering”), of our Class N common stock (“Class N shares” or “Class N common stock”). In July 2021, the Private Offering was increased from $400 million to $500.0 million. As of June 30, 2021, we issued 6,090,595 shares of Class N common stock to affiliates of the Company in the Private Offering for total net proceeds of $159.4 million after deducting offering costs of $1.0 million. The initial purchase price per Class N share was $25.00. The price per Class N share for subsequent purchases is based on our Net Asset Value (“NAV”) per Class N share at the time of purchase. As of June 30, 2021, we have aggregate investor commitments from affiliates to purchase an additional $60.2 million of Class N common stock, excluding a $30 million commitment from Invesco Realty, Inc. that collateralizes our revolving credit facility. See Note 8 — “Mortgage Note and Revolving Credit Facility” for further information. In July 2021, we secured additional investor commitments in the Private Offering. See additional information in Note 17 — “Subsequent Events”.

As of June 30, 2021, we owned an office property, a multifamily property, two industrial properties and real estate-related securities. We also invested in a joint venture that owns a portfolio of twenty medical office buildings and a limited liability company that owns a multifamily property, as further discussed in Note 4 — “Investments in Unconsolidated Real Estate Entities”.