SEC Disclosures & Compliance

Important regulatory disclosures and compliance information for The Community REIT investors.

Important: These disclosures contain material information about investment risks and regulatory compliance. Please read carefully before making any investment decisions.

  • Regulatory Compliance

    The Community REIT operates as a Real Estate Investment Trust under Section 856 of the Internal Revenue Code and complies with Investment Company Act of 1940 exemptions.

    Status: Exempt under Section 3(c)(5)(C)

    Registration: Form 10 filed with SEC

  • Material Risks

    • Real Estate Market Risk: Property values may decline

    • Interest Rate Risk: Rising rates affect property valuations

    • Liquidity Risk: Limited ability to sell shares quickly

    • Economic Risk: Recession may impact rental income

    • Regulatory Risk: Changes in REIT regulations


  • Section 856 Compliance

    • Asset Test: 75% real estate assets

    • Income Test: 95% qualifying income

    • Distribution: 90% taxable income distributed

    • Shareholder: 100+ shareholders after year 1

    • Ownership: No 50%+ concentration

  • The Community REIT is supported by committed credit facilities from major financial institutions. Our capital strategy emphasizes liquidity, flexibility, and conservative leverage, providing a stable foundation for our operational strategy and growth initiatives.

    • Prudent Capital Management: We maintain a capital structure designed to meet rigorous institutional underwriting standards.

      • Significant Liquidity: We prioritize maintaining robust available liquidity to capitalize on strategic opportunities.

      • Long-Term Partnerships: Our banking relationships are structured with a focus on durability and alignment through market cycles.

  1. Investment Disclosure

The Community REIT is a real estate investment trust focused on commercial properties. All investments involve risk and may result in partial or total loss of capital. This investment is suitable only for investors who can afford to lose their entire investment.

Forward-Looking Statements: This website contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those projected.

SEC Registration: The Community REIT is registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934. Registration does not imply SEC approval of the investment merits.

2. Distribution Policy

To qualify as a REIT, The Community REIT must distribute at least 90% of its taxable income to shareholders annually. Distributions are not guaranteed and may vary based on property performance, market conditions, and operational results.

Distribution Schedule

• Quarterly distributions targeted

• Record dates: Last day of quarter

• Payment dates: 30 days after record date

Tax Considerations

• Distributions taxed as ordinary income

• May include return of capital

• Annual Form 1099-DIV provided

3. Liquidity and Redemption Policy

Limited Liquidity: Shares are not traded on any exchange and have limited liquidity. Redemption requests may be subject to limitations and delays.

The Community REIT operates a limited redemption program subject to available liquidity and board discretion. Redemption requests are processed quarterly and may be prorated if total requests exceed available funds.

Redemption Limitations

• Maximum 5% of outstanding shares per quarter

• 1-year minimum holding period for new investors

• 2% redemption fee for shares held less than 3 years

• Program may be suspended during adverse market conditions

4. Conflicts of Interest

The Community REIT's operations involve various potential conflicts of interest between the REIT, its advisor, and shareholders. These conflicts are managed through policies and independent oversight.

Management Conflicts

• Advisory fees based on asset value

• Acquisition fees on property purchases

• Potential competing investment opportunities

Mitigation Measures

• Independent board oversight

• Conflict of interest policies

• Third-party property valuations

5. Legal Compliance

The Community REIT operates in compliance with all applicable federal, state, and local regulations governing real estate investments, securities laws, and REIT qualification requirements.

Regulatory Oversight

Subject to SEC reporting requirements under the Securities Exchange Act of 1934, including annual Form 10-K, quarterly Form 10-Q, and current report Form 8-K filings.

REIT Compliance Monitoring

Quarterly monitoring of asset composition, income sources, and shareholder distribution requirements to maintain REIT qualification under Internal Revenue Code Section 856.

Cautionary Note Regarding Forward-Looking Statements


This website contains statements that are not historical facts and constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These include statements regarding our capital strategy, liquidity, and financial strength. These statements are based on current expectations and are subject to risks, uncertainties, and assumptions. Our ability to execute this strategy is subject to, among other things, prevailing market conditions, the continued performance of our banking partners, and our ongoing compliance with the terms of our credit agreements and applicable regulations. We undertake no obligation to update any forward-looking statements.