Form 4: Brookfield Entities Report Acquisition of Brookfield Real Estate Income Trust Shares as Management Fee Payment

Brookfield entities report the acquisition of 84,683 shares of Brookfield Real Estate Income Trust Inc. as payment of the monthly management fee.

Summary

• Brookfield REIT Adviser LLC received 84,683 shares of Brookfield Real Estate Income Trust Inc. (ticker: NA) common stock on April 19, 2024.
• The shares were issued as payment for the monthly management fee, compensating the Adviser for services provided to the Issuer.
• The price per share was $11.4431.
• Following the transaction, Brookfield REIT Adviser LLC directly holds 264,738 shares.
• These shares are also held indirectly by several Brookfield entities, including Brookfield Property Group LLC, Brookfield Property Master Holdings LLC, Brookfield US Inc., Brookfield US Holdings Inc., Brookfield Asset Management ULC, and Brookfield Corporation.
• The reporting persons are jointly filing this Form 4 and disclaim beneficial ownership of the securities reported herein, except to the extent of their respective pecuniary interests.

Sentiment

Score: 6

Explanation: The document is a standard regulatory filing related to insider transactions. It doesn't contain information that would significantly impact sentiment positively or negatively.

Positives

• The acquisition of shares as a management fee payment aligns the interests of the Adviser with the Issuer's performance.

Management Comments

• The filing shall not be deemed an admission that for purposes of Section 16 of the Securities Exchange Act of 1934, as amended, or otherwise, that the Reporting Persons are the beneficial owners of any equity securities in excess of their respective pecuniary interests, and each Reporting Person disclaims beneficial ownership of the securities reported herein, except to the extent of such Reporting Person's pecuniary interest therein, if any.

Industry Context

This filing is a routine disclosure related to insider transactions and is common for REITs that utilize external management structures. The payment of management fees in shares is a mechanism to align the interests of the manager with the REIT's performance.

Comparison to Industry Standards

• Payment of management fees in equity is a common practice in the REIT industry to align manager and shareholder interests.
• Companies like Blackstone and Starwood also use similar structures for their REITs.

Related Party Transactions

• The issuance of shares to Brookfield REIT Adviser LLC as payment for the monthly management fee constitutes a related party transaction.

Stakeholder Impact

• The transaction has a minor positive impact on shareholders as it aligns the interests of the Adviser with the Issuer's performance.

Key Dates