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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 $10.16| Annualized Distribution Rate¹: 6.88%
NAV $10.00 | Annualized Distribution Rate¹: 6.74%
NAV $10.10 | Annualized Distribution Rate¹: 6.06%
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.
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
A sale-leaseback is an alternative financing solution that unlocks the value of a non-earning asset that is already on the company’s balance sheet. In a typical sale-leaseback arrangement, the company will sell a property to Blue Owl and lease it right back, while maintaining 100% occupancy and operational control of the asset.
Companies may want to enter a sale-leaseback for three key factors: capital efficiency, enhanced returns and favorable accounting.
Property type | Single-tenant, free-standing |
Property sector | Primarily Industrial, mission-critical office, and essential retail |
Geography | Primarily United States and Canada |
Lease type2 | Triple Net Lease (NNN) |
Tenant credit3 | Investment grade and creditworthy |
Lease term | Target 15 years of firm lease term |
Rent escalation | Target of 2% per annum |
Leverage4 | 60% loan-to-cost target for the portfolio |
Investment Advisor | Blue Owl Capital |
Fund Structure | Private REIT, not subject to state limitations that apply to registered non-traded REITs |
Close & deployment | Monthly / Immediate |
Distributions5 | Paid monthly |
Management fee | 1.25% based on net assets per annum, including assets contributed to a Delaware Statutory Trust (DST), paid monthly |
Incentive fee | 12.5% of the total return, subject to a 5% annualized hurdle and high-water mark with a 100% catch up, paid quarterly |
Liquidity6 | 5% per quarter of aggregate NAV 1-year soft lock, 2% early withdrawal charge |
Suitability/Limitations | Accredited Investor |
Tax reporting | 1099 |
Class I | Class D | Class S | |
Minimum initial investment | Investment minimums vary. Please consult your financial representative. | ||
Max upfront fee | None | Up to 1.50% of transaction price | Up to 3.50% of transaction price |
Ongoing service fee16 | None | 0.25% of net asset value (annualized) | 0.85% of net asset value (annualized) |
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
A sale-leaseback is an alternative financing solution that unlocks the value of a non-earning asset that is already on the company’s balance sheet. In a typical sale-leaseback arrangement, the company will sell a property to Blue Owl and lease it right back, while maintaining 100% occupancy and operational control of the asset.
Companies may want to enter a sale-leaseback for three key factors: capital efficiency, enhanced returns and favorable accounting.
Property type | Single-tenant, free-standing |
Property sector | Primarily Industrial, mission-critical office, and essential retail |
Geography | Primarily United States and Canada |
Lease type2 | Triple Net Lease (NNN) |
Tenant credit3 | Investment grade and creditworthy |
Lease term | Target 15 years of firm lease term |
Rent escalation | Target of 2% per annum |
Leverage4 | 60% loan-to-cost target for the portfolio |
Investment Advisor | Blue Owl Capital |
Fund Structure | Private REIT, not subject to state limitations that apply to registered non-traded REITs |
Close & deployment | Monthly / Immediate |
Distributions5 | Paid monthly |
Management fee | 1.25% based on net assets per annum, including assets contributed to a Delaware Statutory Trust (DST), paid monthly |
Incentive fee | 12.5% of the total return, subject to a 5% annualized hurdle and high-water mark with a 100% catch up, paid quarterly |
Liquidity6 | 5% per quarter of aggregate NAV 1-year soft lock, 2% early withdrawal charge |
Suitability/Limitations | Accredited Investor |
Tax reporting | 1099 |
Class I | Class D | Class S | |
Minimum initial investment | Investment minimums vary. Please consult your financial representative. | ||
Max upfront fee | None | Up to 1.50% of transaction price | Up to 3.50% of transaction price |
Ongoing service fee16 | None | 0.25% of net asset value (annualized) | 0.85% of net asset value (annualized) |
Long-term contractual leases aim to generate attractive monthly income, most of which can be classified as tax-deferred return of capital.
ORENT seeks to mitigate risk by investing in mission-critical properties with creditworthy, often investment grade tenants.
Contractual net operating income growth seeks to offset inflation as the net lease structure minimizes exposure to rising costs (materials, labor, tax, insurance, etc.).
Illustrative Investment Characteristics | Traditional Real Estate1 | Blue Owl Net Lease | IG Fixed Income |
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Primary investment objective
Capital appreciation
Income
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Realize capital appreciation from active investment management and asset management
Capital appreciation
Income
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Generate current income and, to a lesser extent, capital appreciation
Capital appreciation
Income
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Generate current income
Capital appreciation
Income
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Return composition
Capital appreciation
Income
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Realize capital appreciation from active investment management and asset management
Capital appreciation
Income
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Generate current income and, to a lesser extent, capital appreciation
Capital appreciation
Income
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Generate current income
Capital appreciation
Income
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Cashflow
Capital appreciation
Income
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Variable cash flows
Capital appreciation
Income
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Long-term contractual cash flows with escalators
Capital appreciation
Income
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Contractual cash flows
Capital appreciation
Income
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Creditworthy underlying tenant/borrower
Capital appreciation
Income
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Sometimes
Capital appreciation
Income
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Always2
Capital appreciation
Income
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Always
Capital appreciation
Income
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Volatility of capital appreciation
Capital appreciation
Income
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Higher volatility
Capital appreciation
Income
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Lower volatility
Capital appreciation
Income
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None
Capital appreciation
Income
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Liquidity
Capital appreciation
Income
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Less liquid
Capital appreciation
Income
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More liquid
Capital appreciation
Income
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Liquid
Capital appreciation
Income
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Tax-efficiency of income
Capital appreciation
Income
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High
Capital appreciation
Income
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High
Capital appreciation
Income
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Low
Capital appreciation
Income
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Headline risks
Capital appreciation
Income
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Capital appreciation
Income
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Tenant credit
Capital appreciation
Income
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Bond credit
Capital appreciation
Income
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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.
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.
Share Class | 1-month | 3-month | YTD | 1 Year | ITD |
---|---|---|---|---|---|
Class I | 0.45% | 1.84% | 1.84% | 6.72% | 8.10% |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | $10.13 | $10.17 | $10.16 | - | - | - | - | - | - | - | - | - |
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 |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | 0.39% | 0.99% | 0.45% | - | - | - | - | - | - | - | - | - |
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% |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | $0.0583 | $0.0583 | $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 |
Share Class | 1-month | 3-month | YTD | 1 Year | ITD |
---|---|---|---|---|---|
Class D (no upfront placement fee) | 0.55% | 1.95% | 1.95% | 6.65% | 6.89% |
Class D (with upfront placement fee) | -0.94% | 0.44% | -0.85% | 5.07% | 5.89% |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | $9.96 | $10.00 | $10.00 | - | - | - | - | - | - | - | - | - |
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 |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 (no upfront placement fee) | 0.43% | 0.96% | 0.55% | - | - | - | - | - | - | - | - | - |
2024 (with upfront placement fee) | -1.06% | -0.53% | -0.94% | - | - | - | - | - | - | - | - | - |
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% |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | $0.0562 | $0.0564 | $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 |
Share Class | 1-month | 3-month | YTD | 1 Year | ITD |
---|---|---|---|---|---|
Class S (no upfront placement fee) | 0.36% | 1.70% | 1.70% | 5.86% | 6.85% |
Class S (with upfront placement fee) | -3.03% | -1.74% | -3.09% | 2.28% | 4.55% |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | $10.07 | $10.11 | $10.10 | - | - | - | - | - | - | - | - | - |
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 |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 (no upfront placement fee) | 0.41% | 0.92% | 0.36% | - | - | - | - | - | - | - | - | - |
2024 (with upfront placement fee) | -2.99% | -2.49% | -3.03% | - | - | - | - | - | - | - | - | - |
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% |
Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
---|---|---|---|---|---|---|---|---|---|---|---|---|
2024 | $0.0511 | $0.0515 | $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 |
Property Type11
Tenant Diversification11
Tenant | # of properties | Fair value as of Dec-23 | Type | Annual escalations | Weighted avg lease term |
---|---|---|---|---|---|
Cell label STORE13 | Cell label N/A | Cell label $1,502,886 | Cell label Industrial / Retail | Cell label 1.9% | Cell label 14 years |
Cell label Amazon | Cell label 5 | Cell label $1,251,017 | Cell label Industrial | Cell label 1.0% | Cell label 15 years |
Cell label Maverick Gaming | Cell label 11 | Cell label $219,025 | 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 $213,234 | 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 | $210,857 | Industrial | 2.0% | 19 years |
Cracker Barrel | 53 | $188,621 | Retail | 1.0% | 16 years |
Enbridge / McDermott | 1 | $186,646 | Office | 2.5% | 12 years |
Magna International | 1 | $173,340 | Industrial | 1.3% | 8 years |
A sale-lease back (“SLB”) is a non-traditional way of unlocking the value of an asset that is already on the balance sheet. A SLB can serve as an alternative to financing solutions traditionally provided by banks and capital markets. As the interest rate regime has shifted higher, the cost to finance (and oftentimes re-finance) has become more expensive, which has led to a greater number of counterparties who are exploring this structure. By selling the asset and entering into a long-term lease, a company can capture immediate value creation as well as more flexible balance sheet management over the long term.
Periodic rent escalators, typically resetting on an annual basis, are normal features in long-term corporate lease agreements. Because we structure these leases as triple net - net of expenses, net of taxes, net of insurance - we are not exposed to the inflation sensitive costs of materials, labor, tax and insurance.
Before acquisition, we apply a rigorous credit evaluation process to understand the business and test the resiliency through different market environments. We have our tenants share financials with us on an annual, and in some case, quarterly, basis. Our deal team works closely with the credit monitoring team to understand the fundamentals of the business. Blue Owl engages in constant proactive evaluation of all portfolio positions as part of the investment process, including weekly reviews and discussions with the full investment team. In an extreme credit event, when there is a default or bankruptcy, we will go through a process to re-tenant the properties. In most cases, our in-place rents are at a discount to market, so the re-tenanting process has potential to mark rents to market – which could be a positive outcome for the fund.
ORENT is structured as a continuously offered, perpetually private REIT. The fund will have monthly closes and 100% of capital will be drawn upon subscription. Suitable investors may purchase ORENT by completing a Subscription Agreement. Please see the PPM for complete details.
Investors in ORENT are admitted on the first business day of each month. New investors will receive their first distribution ~15 business days following the last business day of their month of admission. Subject to ORENT’s Board of Trustees discretion and applicable legal restrictions, ORENT intends to pay distributions monthly.
Under the share repurchase plan, the Company intends to repurchase once per quarter no more than 5% of aggregate NAV per calendar quarter. Shares that have not been outstanding for at least one year will be repurchased at 98% of the transaction price.
The fund administrator posts investor statements to a portal on a monthly basis where each individual investor can download the statement. Please reach out to your Blue Owl representative for specific questions.
Tax reporting for ORENT is done via form 1099. In the case of certain U.S. shareholders, we expect your IRS Form 1099-DIV tax information, if required, to be mailed by January 31 of each year.
For the year ended December 31, 2024 and for the period from Inception through December 31, 2022, we declared net distributions of $94.3 million and $11.8 million, respectively. The following table outlines the tax character of our distributions paid in 2023 and 2022 as a percentage of total distribution.
Ordinary income | Capital gains | Return of capital | |
2023 Tax Year | - % | - % | 100% |
2022 Tax Year | - % | -% | 100% |
A sale-lease back (“SLB”) is a non-traditional way of unlocking the value of an asset that is already on the balance sheet. A SLB can serve as an alternative to financing solutions traditionally provided by banks and capital markets. As the interest rate regime has shifted higher, the cost to finance (and oftentimes re-finance) has become more expensive, which has led to a greater number of counterparties who are exploring this structure. By selling the asset and entering into a long-term lease, a company can capture immediate value creation as well as more flexible balance sheet management over the long term.
Periodic rent escalators, typically resetting on an annual basis, are normal features in long-term corporate lease agreements. Because we structure these leases as triple net - net of expenses, net of taxes, net of insurance - we are not exposed to the inflation sensitive costs of materials, labor, tax and insurance.
Before acquisition, we apply a rigorous credit evaluation process to understand the business and test the resiliency through different market environments. We have our tenants share financials with us on an annual, and in some case, quarterly, basis. Our deal team works closely with the credit monitoring team to understand the fundamentals of the business. Blue Owl engages in constant proactive evaluation of all portfolio positions as part of the investment process, including weekly reviews and discussions with the full investment team. In an extreme credit event, when there is a default or bankruptcy, we will go through a process to re-tenant the properties. In most cases, our in-place rents are at a discount to market, so the re-tenanting process has potential to mark rents to market – which could be a positive outcome for the fund.
Investors in ORENT are admitted on the first business day of each month. New investors will receive their first distribution ~15 business days following the last business day of their month of admission. Subject to ORENT’s Board of Trustees discretion and applicable legal restrictions, ORENT intends to pay distributions monthly.
For the year ended December 31, 2024 and for the period from Inception through December 31, 2022, we declared net distributions of $94.3 million and $11.8 million, respectively. The following table outlines the tax character of our distributions paid in 2023 and 2022 as a percentage of total distribution.
Ordinary income | Capital gains | Return of capital | |
2023 Tax Year | - % | - % | 100% |
2022 Tax Year | - % | -% | 100% |
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 March 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 (3.3%), Walgreen Co. (3.3%), World Kinect (2.3%), Whirlpool (2.3%), Ramoco Group (1.5%), EquipmentShare.com Inc. (1.2%), Federal Insurance Co. (1.1%), Loc Performance (1.0%), STNL IG Portfolio (1.0%), Paradigm (0.8%), Dorel Industries (0.7%), Fleet Farm (0.3%), Johnson Controls (0.0%), Mountain Express (0.0%), and HOFV (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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