Real Estate

Blue Owl Real Estate Net Lease Trust (ORENT)

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Real Estate

Blue Owl Real Estate Net Lease Trust (ORENT)

ORENT, formerly known as Oak Trust, takes an income-driven approach to real estate focused on tenant credit quality which can mitigate key risks and seeks to deliver long-term robust cash flows.

NAV $10.13| Annualized Distribution Rate¹: 6.90%

NAV $9.96 | Annualized Distribution Rate¹: 6.76%

NAV $10.07 | Annualized Distribution Rate¹: 6.08%

Distribution payments are not guaranteed, may represent a return of capital and may be paid from sources other than cash flow from operations.
Overview & strategy Performance Portfolio Resources Contact Important information
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About ORENT

ORENT is a private REIT that seeks to generate attractive, tax-advantaged income and capital appreciation by primarily originating, owning and managing a diversified portfolio of single-tenant commercial real estate properties net leased on a long-term basis to creditworthy, often investment grade tenants with contractual annual rent escalations.

In addition to ORENT, we offer investors another access point to our real estate strategy through our 1031 exchange program, OREX.

Learn more about OREX Contact us

Innovative investing in real estate

Learn more about ORENT's investment strategy, criteria and key terms.

A triple net lease refers to a net lease in which the tenant is responsible for the taxes, insurance, and maintenance of a property throughout the life of the lease; whereas a gross lease the landlord agrees to pay for any and all expenses that come with the property.

Learn more about triple net lease

 

Why ORENT?

ORENT can provide investors with a differentiated income solution unlocking three key benefits.

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Tax-advantaged income

Long-term contractual leases aim to generate attractive monthly income, most of which can be classified as tax-deferred return of capital.

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Seeking downside mitigation

ORENT seeks to mitigate risk by investing in mission-critical properties with creditworthy, often investment grade tenants.

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Inflation hedge

Contractual net operating income growth seeks to offset inflation as the net lease structure minimizes exposure to rising costs (materials, labor, tax, insurance, etc.).

Investing in real estate through a credit-oriented strategy

Blue Owl’s net lease real estate strategy takes a different approach from traditional real estate, one focused on creditworthiness of the underlying tenant, which is purpose built for today’s market environment.

Illustrative Investment Characteristics Traditional Real Estate1 Blue Owl Net Lease IG Fixed Income

Primary investment objective

Capital appreciation
Income

Realize capital appreciation from active investment management and asset management

Capital appreciation
Income

Generate current income and, to a lesser extent, capital appreciation

Capital appreciation
Income

Generate current income

Capital appreciation
Income

Return composition

Capital appreciation
Income
Realize capital appreciation from active investment management and asset management ORENT Chart 2
Capital appreciation
Income
Generate current income and, to a lesser extent, capital appreciation ORENT Chart 3-1
Capital appreciation
Income
Generate current income ORENT Chart 4
Capital appreciation
Income
Cashflow
Capital appreciation
Income
Variable cash flows
Capital appreciation
Income
Long-term contractual cash flows with escalators
Capital appreciation
Income
Contractual cash flows
Capital appreciation
Income
Creditworthy underlying tenant/borrower
Capital appreciation
Income
Sometimes
Capital appreciation
Income
Always2
Capital appreciation
Income
Always
Capital appreciation
Income
Volatility of capital appreciation
Capital appreciation
Income
Higher volatility
Capital appreciation
Income
Lower volatility
Capital appreciation
Income
None
Capital appreciation
Income
Liquidity
Capital appreciation
Income
Less liquid
Capital appreciation
Income
More liquid
Capital appreciation
Income
Liquid
Capital appreciation
Income
Tax-efficiency of income
Capital appreciation
Income
High
Capital appreciation
Income
High
Capital appreciation
Income
Low
Capital appreciation
Income
Headline risks
Capital appreciation
Income
  • New supply
  • Growing expenses
  • Asset selection
  • Geographic selection
Capital appreciation
Income
Tenant credit
Capital appreciation
Income
Bond credit
Capital appreciation
Income

The graphic above seeks to examine for illustrative and educational purposes only similar characteristics of different types of investments solutions. This is not a comparison of like products but rather an illustration of different products with similar characteristics.

1.Based on Blue Owl research on open-end core funds. The terms, investment targets and potential risks of each individual core fund offered by non-Blue Owl sponsors may vary and investors should independently evaluate the risks involved

2.Investment grade companies must have “BBB-” rating or higher by S&P. Creditworthy refers to businesses that Blue Owl deems financially sound enough to justify an extension of credit or engage in a lease agreement. Tenants are creditworthy or investment grade at acquisition.

Performance

ORENT is designed to generate long-term resilient cash flows by acquiring high quality, mission-critical assets.

The portfolio may outperform the broader real estate market because the portfolio contains properties bought at competitive cap rates in today’s market environment.

Total net return7

Share Class 1-month 3-month YTD ITD
Class I 0.39% -0.57% 0.39% 8.00%

Historical net asset value per share

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2024 $10.13 - - - - - - - - - - -
2023 $10.18 $10.36 $10.19 $10.19 $10.21 $10.32 $10.32 $10.34 $10.36 $10.36 $10.34 $10.15
2022 - - - - - - - $10.00 $10.27 $10.27 $10.27 $10.28

Historical performance

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2024 0.39% - - - - - - - - - - -
2023 -0.37% 2.28% -1.06% 0.57% 0.75% 1.70% 0.59% 0.70% 0.77% 0.60% 0.35% -1.31%
2022 - - - - - - - - 3.29% 0.54% 0.55% 0.70%

Historical distribution per share

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2024 $0.0583 - - - - - - - - - - -
2023 $0.0583 $0.0583 $0.0583 $0.0583 $0.0583 $0.0583 $0.0583 $0.0583 $0.0583 $0.0583 $0.0583 $0.0583
2022 - - - - - - - - $0.0583 $0.0583 $0.0583 $0.0583
Distribution payments are not guaranteed, may represent a return of capital and may be paid from sources other than cash flow from operations. Click here to view more important information. 

Total net return7

Share Class 1-month 3-month YTD ITD
Class D (no upfront placement fee) 0.43% -0.53% 0.43% 6.60%
Class D (with upfront placement fee) -1.06% -2.00% -2.32% 5.49%

Historical net asset value per share

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2024 $9.96 - - - - - - - - - - -
2023 $10.02 $10.20 $10.02 $10.02 $10.04 $10.15 $10.15 $10.16 $10.18 $10.19 $10.16 $9.98
2022 - - - - - - - $10.00 $10.27 $10.07 $10.12 $10.12

Historical performance

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2024 (no upfront placement fee) 0.43% - - - - - - - - - - -
2024 (with upfront placement fee) -1.06% - - - - - - - - - - -
2023 (no upfront placement fee) -0.37% 2.34% -1.19% 0.50% 0.73% 1.67% 0.59% 0.67% 0.75% 0.58% 0.33% -1.28%
2023 (with upfront placement fee) -1.84% 0.83% -2.65% -0.98% -0.76% 0.17% -0.90% -0.81% -0.74% -0.91% -1.15% -2.74%
2022 (no upfront placement fee) - - - - - - - - 3.26% -1.42% 1.12% 0.49%
2022 (with upfront placement fee) - - - - - - - - 1.73% -2.88% -0.38% -1.00%

Historical distribution per share

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2024 $0.0562 - - - - - - - - - - -
2023 $0.0562 $0.0564 $0.0562 $0.0563 $0.0562 $0.0563 $0.0562 $0.0562 $0.0562 $0.0562 $0.0562 $0.0562
2022 - - - - - - - - $0.0563 $0.0562 $0.0563 $0.0562
Distribution payments are not guaranteed, may represent a return of capital and may be paid from sources other than cash flow from operations. Click here to view more important information. 

Total net return7

Share Class 1-month 3-month YTD ITD
Class S (no upfront placement fee) 0.41% -0.70% 0.41% 6.71%
Class S (with upfront placement fee) -2.99% -4.05% -4.32% 4.15%

Historical net asset value per share

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2024 $10.07 - - - - - - - - - - -
2023 $10.13 $10.30 $10.13 $10.13 $10.15 $10.26 $10.26 $10.27 $10.29 $10.30 $10.27 $10.08
2022 - - - - - - - $10.00 $10.27 $10.22 $10.21 $10.23

Historical performance

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2024 (no upfront placement fee) 0.41% - - - - - - - - - - -
2024 (with upfront placement fee) -2.99% - - - - - - - - - - -
2023 (no upfront placement fee) -0.45% 2.19% -1.17% 0.48% 0.68% 1.63% 0.50% 0.62% 0.70% 0.52% 0.28% -1.38%
2023 (with upfront placement fee) -3.81% -1.26% -4.51% -2.91% -2.73% -1.81% -2.90% -2.78% -2.71% -2.88% -3.11% -4.71%
2022 (no upfront placement fee) - - - - - - - - 3.21% 0.00% 0.46% 0.63%
2022 (with upfront placement fee) - - - - - - - - -0.28% -3.38% -2.94% -2.77%

Historical distribution per share

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2024 $0.0511 - - - - - - - - - - -
2023 $0.0510 $0.0517 $0.0509 $0.0513 $0.0510 $0.0512 $0.0509 $0.0509 $0.0512 $0.0509 $0.0511 $0.0509
2022 - - - - - - - - $0.0513 $0.0509 $0.0512 $0.0510
Distribution payments are not guaranteed, may represent a return of capital and may be paid from sources other than cash flow from operations. Click here to view more important information. 

Portfolio

ORENT offers a newly constructed portfolio comprising properties bought at competitive cap rates in today’s market environment.

$ 4.6 B
Total asset value8
0
Properties
22 years
Average lease term9
BBB
Average tenant credit rating10
0 %
Leverage17

Geographic Diversification11,12 

  • Southeast 26%
  • West 23.8%
  • Midwest 19.1%
  • International 19%
  • Southwest 10.4%
  • Northeast 1.7%

Property Type11

  • Industrial 51.3%
  • Essential Retail 17.1%
  • STORE 19.3%
  • Land 5.8%
  • Fully-occupied HQ 5.2%
  • Loan 1.2%

Tenant Diversification11

  • Amazon 27.2%
  • STORE 19.3%
  • Maverick Gaming 4.7%
  • Bally's 4.7%
  • Save Mart Supermarkets 4.6%
  • QVC 4.6%
  • Tenneco Inc. 4.6%
  • Cracker Barrel 4.1%
  • Enbridge / McDermott 4%
  • Other11 22.3%
Past performance is not guaranteed.  Click here to view more important information. 

Top 10 holdings

Tenant # of properties Fair value as of Dec-23 Type Annual escalations Weighted avg lease term
Cell label Amazon Cell label 5 Cell label $1,254,450 Cell label Industrial Cell label 1.0% Cell label 16 years
Cell label STORE13 Cell label N/A Cell label $892,362 Cell label Industrial / Retail Cell label 1.9% Cell label 14 years
Cell label Maverick Gaming Cell label 11 Cell label $218,120 Cell label Retail Cell label 2.5% Cell label 39 years
Cell label Bally's14 Cell label 1 Cell label $215,385 Cell label Land Cell label CPI-Linked Cell label 98 years
Cell label Save Mart Supermarkets Cell label 12 Cell label $212,005 Cell label Industrial / Retail Cell label 1.8% Cell label 13 years
Cell label Tenneco Inc.15 Cell label 11 Cell label $211,747 Cell label Industrial Cell label 3.0% Cell label 19 years
QVC 2 $211,447 Industrial 2.0% 19 years
Cracker Barrel 53 $188,621 Retail 1.0% 17 years
Enbridge / McDermott 1 $186,646 Office 2.5% 12 years
Magna International 1 $173,340 Industrial 1.3% 8 years

Case studies

tenneco

Tenneco (Chicago)

Learn more
The same mart companies logo

Save Mart

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store capital logo

STORE Capital

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Frequently asked questions

Need to contact us? Get in touch with our sales team.

FOR FINANCIAL PROFESSIONAL USE ONLY.

This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein. Only a private placement memorandum for Blue Owl Real Estate Net Lease Trust can make such an offer. This material is authorized only when it is accompanied or preceded by the Blue Owl Real Estate Net Lease Trust private placement memorandum. Neither the SEC, the Attorney General of the State of New York nor any state securities commission has approved or disapproved of these securities or determined if the private placement memorandum is truthful or complete. Any representation to the contrary is a criminal offense. Securities are offered through Blue Owl Securities LLC, member of FINRA/SIPC, as Dealer Manager.

As of January 31, 2024. Past performance is not a guarantee of future results.

Endnotes

1. Distribution payments are not guaranteed. ORENT may pay distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and advances or the deferral of fees and expense reimbursements. The annualized distribution rate shown is calculated by annualizing the declared distributions per share in the previous month and dividing by the previous month’s published NAV. The annualized distribution rate shown may be rounded and is net of applicable servicing fees (Class S: 0.85%, Class D: 0.25% and Class I: No servicing fee). The payment of future distributions is subject to the discretion of ORENT’s board of directors and applicable legal restrictions, therefore there can be no assurance as to the amount or timing of any such future distributions. Distributions are not guaranteed. Up to 100% of distributions have been funded and may continue to be funded by the reimbursement of certain expenses that are subject to repayment to the Adviser of ORENT. Such waivers and reimbursements by the Adviser may not continue in the future. ORENT is recently organized, and annualized distribution rates may change over time. All investments are subject to risk, including the loss of the principal amount invested. This information is summary in nature and is no way complete, and these terms have been simplified for illustrative purposes and may change materially at any time without notice. In particular, this information omits certain important details about the stated terms and does not address certain other key Fund terms or risks or represent a complete list of all Fund terms. If you express an interest in investing in the fund, you will be provided a Private Placement Memorandum or other documents ("Fund Documents"), which shall govern in the event of any conflict with the general terms herein. You must rely only on the information contained in the Fund Documents in making any decision to invest. Please see PPM for corresponding terms. 

2. Blue Owl’s investment strategy will target NNN as well as NN Roof & Structure properties. 

3. Investment grade defined as BBB- or better per Standard & Poor’s at time of acquisition. Other creditworthy tenants determined at Blue Owl’s discretion. 

4. The leverage ratio is measured by dividing (i)consolidated property-level and entity-level debt net of cash and loan related restricted cash, by (ii)the asset value of real estate investments (measured using the greater of fair market value and cost) plus the equity in our settled real estate debt investments. There can be no guarantee that the fund will achieve the targets presented above. All investments are subject to risk, including the loss of the principal amount invested. This information is summary in nature and is no way complete, and these terms have been simplified for illustrative purposes and may change materially at any time without notice. In particular, this information omits certain important details about the stated terms and does not address certain other key Fund terms or risks or represent a complete list of all Fund terms. If you express an interest in investing in the fund, you will be provided a Private Placement Memorandum or other documents ("Fund Documents"), which shall govern in the event of any conflict with the general terms herein. You must rely only on the information contained in the Fund Documents in making any decision to invest. Please see PPM for corresponding terms. 

5. Distributions are not guaranteed. ORENT may pay distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and advances or the deferral of fees and expense reimbursements, and that the Issuer has no limits on such amounts it may pay from such sources. 

6. The repurchase plan currently limits aggregate quarterly repurchases to no more than 5% of the aggregate NAV per calendar quarter. The repurchase price per share will generally be equal to the NAV per share as of the last calendar day of the first month of the applicable calendar quarter, except that shares that have not been outstanding for at least one year will be repurchased at 98% of the repurchase price.

7. Past performance is not a guarantee of future results. Returns are compounded monthly. Total return is calculated as the change in monthly NAV (assuming any dividends and distributions, net of shareholder servicing fees, are reinvested in accordance with ORENT’s distribution reinvestment plan), if any, divided by the beginning NAV. Returns reflect reinvestments of distributions and the deduction of ongoing expenses that are borne by investors, such as management fees, incentive fees, servicing fees, interest expense, offering costs, professional fees, director fees and other general and administrative expenses. An investment in the Company is subject to a maximum upfront sales load (Class I: No sales load, Class D: 1.5%, Class S: 3.5%) which will reduce the amount of capital available for investment. Operating expenses may vary in the future based on the amount of capital raised, the Adviser’s election to continue expense support, and other unpredictable variables. 

8. Total asset value is the gross asset value of real estate assets, based on fair value, plus the total fair value of real estate-related securities as well as the addition of any other cash equivalents.

9. Data represents the weighted average lease term (WALT) of the portfolio. WALT is a metric in commercial real estate that measures how much contractual term is remaining on a property. 

10. Credit ratings are provided by an NRSRO at time of acquisition with the exception of Maverick Gaming and Bally’s, in which the credit ratings reflect the company’s secured credit rating. For total portfolio weighted average credit rating, unrated entities are assumed to carry a credit rating of “B-”. 

11. Represents percentage of fair value. Valuations may change over time. "Other" tenants include Magna International (3.8%), Walgreen Co. (3.7%), Whirlpool (2.5%), World Kinect (2.5%), Ramoco Group (1.7%), EquipmentShare.com Inc. (1.3%), STNL IG Portfolio (1.2%), Federal Insurance Co. (1.2%), Loc Performance (1.1%), HOFV (1.1%), Paradigm (0.9%), Dorel Industries (0.8%), Fleet Farm (0.3%), Johnson Controls (0.0%), and Mountain Express (0.0%). 

12. Excludes STORE and Mortgage receivables. Dollars in thousands. CAD, EUR and GBP converted to USD at rates as of August 31, 2023. 

13. WALT and annual escalations as of September 30, 2023. Fair value represents ORENT purchase price. 

14. Bally’s annual rent escalations are CPI-linked every 5 years with a 10.0% collar and an 18.5% cap.

15. Tenneco shown at ORENT’s 50.9% basis in the Tenneco tranches acquired in June and July 2023.

16. To be paid by the investor on a monthly basis.

17. Leverage is measured by dividing (i) consolidated property-level and entry-level debt net of cash and loan-related restricted cash, by (ii) the asset value of real estate investments (measured using the greater of fair market value and cost) plus the equity in our settled real estate debt investments. 

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