Form 4: Brookfield Entities Report Share Redemption in Brookfield Real Estate Income Trust

Brookfield REIT Adviser LLC redeemed shares from Brookfield Real Estate Income Trust as payment for monthly management fees.

Summary

• Brookfield Corp and related entities filed a Form 4 detailing changes in beneficial ownership of Brookfield Real Estate Income Trust Inc. shares.
• On June 30, 2024, Brookfield REIT Adviser LLC redeemed 262,440 shares of Class I Common Stock at a price of $11.2698 per share as payment for monthly management fees.
• Following the transaction, Brookfield REIT Adviser LLC directly holds 173,972 shares, which are indirectly held 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 disclaim beneficial ownership of the securities except to the extent of their pecuniary interest.

Sentiment

Score: 6

Explanation: The document is a standard regulatory filing detailing a routine transaction. It doesn't contain information that would significantly sway investor sentiment positively or negatively.

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 the compensation structure between a REIT and its advisor, which is a common arrangement in the real estate investment trust industry.

Comparison to Industry Standards

• Similar transactions are common among REITs and their advisors, where management fees are often paid in the form of equity to align interests.
• Other REITs, such as those managed by Blackstone or Starwood Capital, also have similar arrangements where the advisor receives equity as part of their compensation.

Related Party Transactions

• The share redemption is a related party transaction between Brookfield Real Estate Income Trust and its advisor, Brookfield REIT Adviser LLC.

Stakeholder Impact

• The transaction has a minimal direct impact on shareholders, employees, customers, suppliers, and creditors as it is a routine payment of management fees.

Key Dates