Tokenized Real Estate Investment Trust

Imagine a new way to invest in real estate - one that’s simpler, smarter, and more flexible.

American Digital Realty is creating a new family of funds that will offer investors a wide range of mutual fund style portfolios across commercial real estate types including multifamily/apartments, industrial/warehouses, storage, and special use such as data centers.

With TREIT Funds, you can now create an optimized real estate portfolio with much higher diversification across many different types of properties and locations for a lower total capital commitment.

From Physical Property to Tokenized Ownership

A TREIT Fund transforms traditional real estate investments into digital security tokens on the blockchain. These tokens represent ownership shares of private commercial real estate properties.

The Evolution from ETFs to TREITs

Exchange Traded Funds revolutionized the investment landscape by offering diversified exposure to various sectors, themes, and asset classes through a single security traded on stock exchanges. ETFs democratized access to diversified portfolios, allowing investors to gain exposure to a broad range of assets without the need to purchase individual securities.

The introduction of TREIT Funds follows a similar ethos but applies it to the real estate sector. By tokenizing real estate assets, TREIT Funds aim to make property investment more accessible, liquid, and transparent.

Property

Trust

Token

TREIT Fund

Investor

Real estate tokens peg their value to an underlying property

Interest in the property is held within a trust that is tokenized

A security token is minted on Stellar blockchain and legally tied to the trust

Diversified TREIT Fund is constructed with multiple tokens

Investor owns a portfolio of real estate via TREIT Fund tokens

A New Asset Class

TREIT Funds represent a novel investment vehicle that leverages the structure of the familiar Exchange Traded Fund (ETF). Much like ETFs, which are thematic portfolios of equity shares in public companies, TREIT Funds are portfolios comprised of equity shares, in the form of tokens, in properties and funds. This cutting-edge approach merges the traditional real estate investment trust model with the burgeoning world of blockchain technology.

Constructing a TREIT Fund

The creation of a TREIT Fund is a strategic process designed to optimize risk and return. ADR balances yield and capital appreciation, blending growth and income strategies. The thorough evaluation of operators and investments ensures only the most select opportunities are considered.

Key Elements

Partnerships: Collaborations with reputable sponsors with proven track records.

Property Selection: Focus on institutional-grade assets with strong economic fundamentals and conservative leverage.

Due Diligence: Rigorous research and evaluation by ADR, providing investors with high-quality assets and confidence in their investments.

GREATER INVESTOR ACCESS

TREIT Funds make the private markets accessible to the public with institutional-quality PCRE investments for accredited investors

ENHANCED DIVERSIFICATION

Tokenization / fractionalization allows for a wider range of portfolio assets with the same capital, reducing idiosyncratic risk

Why invest in TREIT Funds?

INCREASED LIQUIDITY

Blockchain provides capability for 24/7 global liquidity to buy, sell, settle and record transactions

Real estate reimagined: smarter, diversified, and blockchain-powered.

SUPERIOR RISK-ADJUSTED RETURNS

Private real estate syndications historically have outperformed both public REITs and stocks while doing so with lower volatility and downside risk

TECHNOLOGY OF THE FUTURE

Automation of functions like income and profit streams, interoperability across platforms, unparalleled transparency and security

INVEST & EARN IN USD & USDC

Fiat and digital currency compatible