Frequently Asked Questions

Who is our typical shareholder?

Generally, our shareholders are “accredited investors,” as defined in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, as amended. For individuals, an “accredited investor” is generally a person having a net worth in excess of $1 million, excluding that person’s primary residence, or an annual income of $200,000 (or $300,000 for married couples).

How do we value shares of common stock of our REIT?

Our share price is established by the Board of SR Realty Trust no less than once per year and is based on the current market value of the company’s assets less liabilities and our prospects for future growth.

When are dividends paid?

Dividends are generally paid quarterly and can be issued through direct deposit (ACH). Shareholders may also enroll all, or a portion, of their dividends in the Dividend Reinvestment Program (DRiP) instead of receiving cash distributions.

May our shareholders hold shares in a retirement account?

Yes, in most cases shareholders are able to hold REIT shares in a qualified retirement plan; however, we urge shareholders to consult with their legal, financial, and tax advisors prior to holding shares in a qualified retirement plan.

How are the Operating Partnership Units Valued?

The operating partnership units are convertible on a one-for-one basis for common shares in the REIT and pay the same dividend per share as the commons shares, and, therefore, are valued at the same price per share as common shares.

What liquidity options are available to shareholders?

The Company currently offers a redemption program that allows the shareholders to sell their shares back to the Company at 97% of the then-current share price. The redemption program is subject to certain restrictions and can be suspended by the Company. For more information on the redemption program, please contact Evan Richardson.

How do I contribute property tax-deferred? How is my property valued?

The process starts by contacting the Company to discuss your property. If the property is deemed to be a fit for the Company’s portfolio, the purchase price is established by arms-length negotiation. Property owners may request the purchase price be paid in cash, Operating Partnership Units, or a combination of both.

What types of property will be considered?

Generally, the Company is seeking office, industrial, retail, and multi-family properties valued over $5 million. For more specific information, check the “Acquisition Criteria” page or contact Evan Richardson.

What if I sold my property?

If you have already sold your property and are planning to complete a 1031 exchange, you may contact Evan Richardson to discuss ways in which the Company may help facilitate your exchange.

What reports do shareholders receive?

Shareholders receive a quarterly letter from the president with newsletter and updates from the company that include unaudited financials as well as an annual report with audited year-end financial statements.

What tax forms do shareholders receive?

Each holder of common stock in SR Realty Trust, Inc. receives a Form 1099-DIV. Holders of operating partnership units receive K-1s.

What disclosure must I read?

SR Realty Trust, Inc. advertisements do not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please be aware that this material cannot and does not replace the Memorandum and is qualified in its entirety by the Memorandum.

This material is not tax or legal advice and potential investors should speak with their attorney or CPA prior to considering an investment. SR Realty Trust, Inc. and its representatives do not guarantee the accuracy and validity of the information herein. Investors should perform their own investigation before considering any investment. There are material risks associated with real estate investments, including real estate investment trusts. These include, but are not limited to, real estate is typically an illiquid investment, declining tenant vacancies, market values and potential loss of entire investment principal. Please pay careful attention to the “Risk” section of the PPM/Memorandum. Past performance is not a guarantee of future results and potential cash flow, potential returns, and potential appreciation are not guaranteed in any way and adverse tax consequences can take occur. Please read carefully the Memorandum in its entirety before making an investment decision.

IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax code sections; therefore, you should consult your tax and legal professionals for details regarding your situation.

Investments in SR Realty Trust, Inc. are available only to accredited investors (generally described as investors with a net worth in excess of one million dollars, exclusive of primary residence) and accredited entities only (generally described as an entity owned entirely by accredited individuals and/or an entity with gross assets of greater than five million dollars). If you are unsure if you are an accredited investor and/or an accredited entity, please verify with your CPA and attorney prior to considering an investment. You will be required to verify your status as an accredited investor.

Can a shareholder reinvest dividends?

Yes, reinvestment of dividends is a core recommendation to our shareholders!  When dividends are reinvested you receive more shares at a significant discount to the share price, so your investment grows even faster. The REIT also avoids the administrative costs and fees of selling those shares outside our community of existing shareholders. This helps your REIT to increase in value. If you are interested in partial or complete reinvestment of dividends, call Laura Hanneman at 612-305-7083 for help in getting started.