Form 4: Brookfield Entities Boost REIT Stake via Fee Payment

Brookfield Asset Management and affiliated entities increased their indirect beneficial ownership in Brookfield Real Estate Income Trust Inc. by acquiring 105,895 Class I Common Stock shares as payment for management fees.

Summary

• Brookfield Asset Management Ltd., along with Brookfield Corporation, Brookfield Asset Management ULC, Brookfield US Holdings Inc., Brookfield US Inc., Brookfield Property Master Holdings LLC, Brookfield Property Group LLC, and Brookfield REIT Adviser LLC, reported an acquisition of shares in BROOKFIELD REAL ESTATE INCOME TRUST INC.
• The transaction involved the acquisition of 105,895 shares of Class I Common Stock on February 20, 2026.
• The shares were acquired at a price of $10.3778 per share.
• The acquisition represents the payment of the monthly management fee to Brookfield REIT Adviser LLC for services provided to the Issuer, as per the advisory agreement.
• Following this transaction, the reporting persons indirectly beneficially own 426,650.841 shares of Class I Common Stock.
• The shares are held directly by Brookfield REIT Adviser LLC and indirectly by the other listed Brookfield entities through a complex ownership structure.
• The reported beneficial ownership includes shares issued pursuant to the Issuer's distribution reinvestment plan.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive event, reflecting a routine, pre-scheduled transaction that increases insider ownership and aligns management incentives with shareholder interests, without indicating any new strategic developments or financial distress.

Positives

• Increased ownership by Brookfield entities, including Brookfield Asset Management Ltd. and Brookfield Corporation, may signal continued confidence in BROOKFIELD REAL ESTATE INCOME TRUST INC.'s long-term prospects.
• The payment of management fees in stock aligns the interests of the adviser (Brookfield REIT Adviser LLC) more closely with those of the shareholders of the REIT.

Future Outlook

This Form 4 filing does not contain specific forward-looking statements or guidance beyond the details of the reported transaction.

Management Comments

• Brookfield REIT Adviser LLC, by Michelle Campbell, Attorney-in-Fact, signed the filing on 02/24/2026.
• Brookfield Property Group LLC, by Michelle Campbell, Attorney-in-Fact, signed the filing on 02/24/2026.
• Brookfield Property Master Holdings LLC, by Michelle Campbell, Attorney-in-Fact, signed the filing on 02/24/2026.
• Brookfield US Inc., by Kathy Sarpash, Secretary, signed the filing on 02/24/2026.
• Brookfield US Holdings Inc., by Kathy Sarpash, Vice President & Secretary, signed the filing on 02/24/2026.
• Brookfield Asset Management ULC, by Kathy Sarpash, Vice President & Secretary, signed the filing on 02/24/2026.
• Brookfield Asset Management Ltd., by Kathy Sarpash, Managing Director, Legal & Regulatory and Corporate Secretary, signed the filing on 02/24/2026.
• Brookfield Corporation, by Swati Mandava, Managing Director, Legal & Regulatory, signed the filing on 02/24/2026.

Industry Context

StockSavvy.ai notes that the practice of paying management fees in equity, as seen in this Form 4, is common in the real estate investment trust (REIT) sector. This method helps conserve cash for the REIT and aligns the interests of the external manager with the long-term performance of the trust, a strategy often favored by institutional investors.

Related Party Transactions

• The transaction involves Brookfield REIT Adviser LLC, an affiliate of the reporting persons, receiving shares of BROOKFIELD REAL ESTATE INCOME TRUST INC. as payment for monthly management fees. This constitutes a related-party transaction under the advisory agreement.
• The indirect ownership structure details the relationships between Brookfield Corporation, Brookfield Asset Management Ltd., Brookfield Asset Management ULC, Brookfield US Holdings Inc., Brookfield US Inc., Brookfield Property Master Holdings LLC, Brookfield Property Group LLC, and Brookfield REIT Adviser LLC, all of which are related parties.

Stakeholder Impact

• Shareholders: The payment of management fees in stock increases the adviser's equity stake, potentially enhancing alignment of interests between management and shareholders.
• Management/Adviser: Brookfield REIT Adviser LLC receives compensation in the form of equity, which ties its financial success directly to the performance of the REIT's stock.

Key Dates

Keywords

Brookfield, Real Estate, REIT, Insider Transaction, Form 4, Beneficial Ownership, Management Fee, Equity Compensation, Class I Common Stock