Fidelity Core Real Estate Fund filed a Form 8-K on September 8, 2026, reporting results for the quarter ended June 30, 2026. The filing includes a quarterly investor webinar presentation (Exhibit 99.1) detailing the Fund's performance, portfolio composition, and a change in its distribution policy.
The Fund reported a quarterly net total return of 1.66% and an annualized net total return of 9.02% since inception. As of the end of the second quarter, the Fund had a gross portfolio value of $671.44 million and an investor equity raised since inception of $404.27 million. The Fund paid a cash dividend of $4.91 million, or $0.1361 per share, during the quarter, which represents a quarterly yield of 1.18% or an annualized distribution rate of 4.74%.
The filing highlights that the Fund outperformed the ODCE benchmark for the quarter, trailing 12 months, and since inception. The portfolio maintained a 99% occupancy rate. During the quarter, the Fund completed two acquisitions: Vineyard Towne Center (retail) and Copper Point (medical office). Copper Point is a 93,565 square foot medical office building in Gilbert, Arizona, acquired at a discount to replacement cost.
A key announcement in the filing is the transition from quarterly to monthly distributions. The Fund stated that the new cadence will provide investors with a more frequent payment of the Fund's distributable income throughout the year.
Financial metrics for the period include a fund loan-to-value ratio of 31% and a weighted average borrowing cost of 5.25%. The portfolio is diversified across property types, with 37% in retail, 31% in industrial, 16% in residential, and 12% in medical office properties. Geographically, the portfolio is concentrated in Charlotte, NC (29%), Seattle, WA (17%), and Dallas, TX (22%).
