Fidelity Core Real Estate Fund filed a Current Report on Form 8-K with the Securities and Exchange Commission on October 29, 2026, to provide an update on its financial position and performance as of September 30, 2026. The filing includes a fact sheet detailing the company's asset allocation, fee structure, and recent returns.
As of the reporting date, the fund’s Net Asset Value (NAV) per share for Class I was $11.60. The fund reported an annualized net total return of 8.84% since its inception on February 1, 2023. The current annualized distribution rate for Class I shares is 4.50%, with a tax equivalent yield of 7.55% for the year 2025.
The fund’s portfolio consists of 15 properties with a total gross portfolio value of $690.3 million. The portfolio maintains a 99% occupancy rate and a loan-to-value (LTV) ratio of 28%. The fund’s property allocation is diversified across five primary types: Industrial (29%), Residential (22%), Retail (17%), Medical Office (11%), and Commercial Mortgage-Backed Securities (CMBS) (4%). Geographically, the properties are concentrated in research-supported markets, with the largest allocations in Charlotte, NC (7%), Boston, MA (6%), and Atlanta, GA (6%).
The fund is structured as a non-traded, private real estate investment trust (REIT) with a perpetual term. It offers monthly distributions and a quarterly share repurchase plan, subject to a limit of 5% of aggregate NAV per quarter. The fund’s management team includes Patrick McLaughlin, CFA, Head of Asset Management and Co-Portfolio Manager, and Ellen Hall, Head of Direct Real Estate and Portfolio Manager.
Regarding fees, the fund charges a management fee of 1.0% of NAV per annum for Class I shares, payable quarterly. The fund also utilizes an incentive fee structure of 12.5% of annual total return, subject to a 5% annual hurdle and a high-water mark with a catch-up provision. The minimum investment for Class I shares is $25,000.
