Brookfield REIT Review 2026: NAV, Redemptions & Distribution Cut

Updated October 10, 2026 — September's distribution, the adviser's share redemption, a jump in Class C sales, and what the 10-Q says about redemption terms. Distribution: the 8-K of September 29, 2026 declared $0.0595 per share gross for every class; Class I nets $0.0462 (Class S $0.0391, Class D $0.0439, Class T $0.0387, Class C $0.0466, Class E $0.0595), payable on or about October 20, 2026. August was $0.0593 gross and $0.0461 net for Class I. Redemption terms: the 10-Q says shares not outstanding for at least one year are repurchased at 98% of the transaction price; the September 16 supplement sets the price for repurchases as of September 30 at the August 31 NAV ($10.5566 for Class I). Adviser shares: the 8-K of September 24 shows 117,580 Class I shares issued to the Adviser for its August fee of $1,237,607, and a Form 4 filed October 2 shows the Adviser redeeming 332,529.824 Class I shares at $10.5566 on September 30 (about $3.5 million, our arithmetic). Class C: on September 1 the REIT sold 1,243,769 Class C shares for $12.7 million to a feeder vehicle for non-U.S. persons, against $250,000 on August 3. Related-party step: the 10-Q's subsequent-events note says a Brookfield affiliate assigned the REIT an 18.7% limited partnership interest in a Brookfield-managed logistics fund in July 2026, and the REIT funded $42.4 million. The Investor Incentive Program extension to December 1 (Supplement No. 6) is unchanged and is already covered below. Nothing on EDGAR since our October 1 update changes the 3.3 rating.

Correction, September 19, 2026: earlier versions of this review said the board went above its own 2%/5% repurchase limits during the 2022 wave, as quarterly redemptions rose through 2022. The filings show monthly repurchases of about 0.5-1.2% of shares in the second half of 2022; the one above-limit authorization we found is April 2024 and the second quarter of 2024 (2.3% of NAV in April, 5.6% in the quarter). We also mislabeled the 2022 row of the returns table (Class I returned +12.68% in 2022; the $39.2 million was a GAAP net loss), said the since-inception return "ticked up" in 2025 (it fell from 7.33% to 6.26%; the 2025 Class I return was +1.00%), gave fundraising as down 84% (83%) and the first quarter of 2024 as about $15 million ($7.5 million), put leverage at 47.8% in early 2024 (48.4% at March 31, 2024), and printed peer figures that our own Blackstone and Starwood reviews contradict (BREIT leverage 44%, not about 60%; SREIT Class I NAV $19.41, not $19.59). A "$260 billion real estate platform", a "25-month acquisition pause" and "roughly $1 million in Q1 2022" had no primary source and are gone. The page also said we earn nothing on it while carrying a paid advisor-matching box. All fixed below; every figure now carries its filing in the dataset.

Correction, October 16, 2026: the Starwood SREIT Class I NAV in the peer table was the July 31, 2026 figure ($19.41); the latest filed NAV is $19.27 at August 31, 2026 (Starwood's Form 424B3 of September 16, 2026). We also called Brookfield REIT's performance fee a "high-water mark" fee. Brookfield REIT's June 30, 2026 Form 10-Q describes the fee it pays as 12.5% of total return above a 5% return "after recouping any loss carryforward amount," with a catch-up; only the separate fee on operating-partnership units held by outside parties is described there as having a "high-water mark."

A naming note before anything else

There are two non-traded REITs commonly abbreviated "BREIT." This review is about Brookfield Real Estate Income Trust (CIK 1713407, formerly Oaktree REIT). It is not Blackstone Real Estate Income Trust (CIK 1662972), a vehicle more than 50 times larger ($57.43 billion of NAV at July 31, 2026) that pro-rated redemptions for 15 months. The two are unrelated, run by competing sponsors, and behaved very differently through the downturn. Throughout this review, "BREIT" with no qualifier refers to Blackstone's; the subject of this page is always "Brookfield REIT."

Why this review exists: a never-gated REIT, and the question behind it

CrowdfundedWealth's non-traded NAV REIT cluster sorts these vehicles by the question that mattered most when rates spiked: did the redemption window stay open? On the non-gated side sit JLL Income Property Trust (4.0) and Nuveen Global Cities REIT (3.9). On the gated side sit Blackstone's BREIT (3.0) and Starwood's SREIT (2.0).

Brookfield REIT never gated. For a holder, though, "never gated" is only half an answer. The other half is what it takes to keep paying, and that is where Brookfield REIT differs from the other two open-window funds: in 2026 the money that meets the exits comes, to a large degree, from the sponsor's side of the table. That is not a scandal. It is a dependency, and a holder should know its size, its terms and its dates.

This review is built from EDGAR filings under CIK 1713407: the 10-Ks for 2022 through 2025, the 10-Qs from 2022 to June 30, 2026, the 2026 distribution 8-Ks, the 424B3 supplements through September 16, 2026, and Brookfield's own Schedule 13D and 13D/A on the REIT. Every figure is in the dataset above with its accession number.

The redemption record: every request paid

Give Brookfield REIT full credit where it is due. It repurchased $70.3 million of shares in 2022, $183.4 million in 2023, $195.9 million in 2024, $112.3 million in 2025 and $54.2 million in the first half of 2026, and each filing says the same thing: all requests were satisfied. At December 31, 2023, the worst point of the cycle for the category, it reported "no unsatisfied repurchase requests and over $600 million of total liquidity."

It came close to its limits more than once (4.86% of NAV in the third quarter of 2023, 4.91% in the first quarter of 2024) and went over them once: the board, "including all of our independent directors, unanimously authorized repurchases for April 2024 in excess of our 2% monthly repurchase limitation" and for the second quarter of 2024 above the 5% quarterly limit, when repurchases reached 2.3% of NAV in April and 5.6% in the quarter (10-Q, June 30, 2024). That is the decision that separates it from BREIT and SREIT, which pro-rated instead.

How a repurchase works, and what it costs. Stockholders may request repurchases monthly, and the REIT can repurchase fewer shares than requested or none at all, at its judgment. The price is the transaction price, which for repurchases as of September 30, 2026 was the August 31 NAV: $10.5566 for Class I, $10.4495 for Class S, $10.6684 for Class D and $10.6577 for Class T (Supplement No. 5, September 16, 2026). Shares that have not been outstanding for at least one year are repurchased at 98% of that price (10-Q, June 30, 2026). The same 10-Q reports $380.8 million of liquidity at June 30 and $54.2 million repurchased in the first half of 2026.

Scale is part of the story. Brookfield REIT's whole NAV is about $1.02 billion; Blackstone's BREIT received $5.3 billion of requests in a single month, January 2023. Paying every request in a small fund is a different problem from paying them in a very large one. It still took a decision, and Brookfield made the right one.

Who keeps the window open in 2026

This is the part no summary of Brookfield REIT that we found tells a holder, and it comes straight from the filings.

1. The limits are measured net, and the inflows are mostly DST money. The REIT measures its 2% and 5% limits "based on net repurchases during a month or quarter": outflows minus inflows. In the second quarter of 2026 it repurchased $22.1 million of shares, raised $7.3 million from selling shares and $66.1 million through its DST program, and reported net repurchases of 0.00% of NAV for the quarter. For the first half: $13.2 million from share sales, $94.8 million from the DST program ($212.3 million since the program launched in October 2024). The DST program sells interests in Delaware statutory trusts that hold REIT properties; the operating partnership holds an option to take those interests back "in exchange for Operating Partnership units or cash, at the Operating Partnership's discretion" (in our reading, a route from DST buyers, typically 1031 exchangers, into the REIT). The adviser's 1.25% management fee also applies to the consideration for DST properties subject to that option. The practical point: the headroom that pays redemptions in 2026 depends on DST sales continuing. A smaller stream grew in September: the REIT sold 1,243,769 Class C shares for $12.7 million on September 1 to a feeder vehicle that offers interests to non-U.S. persons, against 24,886 shares ($250,000) on August 3; Class C NAV was $55.7 million at August 31 (8-Ks of August 24 and September 24; Supplement No. 5).

2. Brookfield owns 37.44% of the shares. Brookfield Corporation's Schedule 13D/A of July 9, 2026 reports 35,605,670 shares, 37.44% of the 95,107,476 outstanding. Most of it (30,966,984 shares) sits in BUSI II-C, which on November 24, 2025 converted operating partnership units into Class I and Class E shares. On July 1, 2026 another Brookfield entity, BPG NTR Holdings, paid $45,000,000 for 4,341,534 Class I shares in the public offering. At the July 31 NAV that stake is worth about $375 million (our arithmetic). Brookfield's Class E shares pay no management fee. A Form 4 filed October 2 reports that BIM Capital LLC, a Brookfield entity, disposed of 77,119.41 Class E shares at $10.5583 on September 30 and stops reporting; Brookfield Corporation remains a reporting person, and the filing does not say who received the shares. The July 9 Schedule 13D/A is still the latest count of the 37.44%.

3. Brookfield can sell back, but only behind you. Under a "Brookfield Share/OP Unit Repurchase Arrangement" described in the November 2025 Schedule 13D, Brookfield entities may have the REIT repurchase their shares at NAV above a $50 million floor, using whatever is left under the 2%/5% limits after outside holders plus 25% of net offering proceeds in excess of plan repurchases. And: "The Issuer will not effect any such repurchase during any month in which the full amount of all Shares requested to be repurchased by third-party investors under its share repurchase plan is not repurchased." For an outside holder that ordering is protective. It also means a sponsor holding worth hundreds of millions of dollars is permanently waiting behind the queue.

4. A $200 million investor with a Brookfield-backed return, locked until about 2030. On January 1, 2025 the REIT sold $200.0 million of Class I shares privately to an institutional investor it does not name, at the public price and fees. "Brookfield will support a specified total annual return on the investor's investment in our Class I shares in the form of periodic cash payments, subject to certain limits. In exchange, the investor has agreed not to request the repurchase of its shares, subject to limited exceptions, for a period of five years," after which it may request repurchase "ratably over a two-year period." The return level is not disclosed. That is about a fifth of today's NAV (our arithmetic) that cannot ask to leave before early 2030, and that is paid a Brookfield-supported return other Class I holders do not get.

5. A loan from Brookfield. In the second quarter the REIT "borrowed $125.0 million on the Affiliate Line of Credit to fund investment acquisitions and repaid $22.5 million from proceeds raised through the DST Program." At June 30, $102.5 million was outstanding at SOFR + 2.25%, maturing November 2026; management "plans on exercising" an extension option. A $48.7 million mortgage matures in December 2026 and a $279.3 million mortgage in March 2027, which management intends to extend or refinance. The 10-Q's subsequent-events note adds a related-party step: in July 2026 a Brookfield affiliate assigned the REIT an 18.7% limited partnership interest in a Brookfield-managed fund tied to a diversified logistics portfolio, the REIT assumed the future funding obligation, and it funded $42.4 million of capital that month.

6. Bonus shares, paid by the adviser, now until December 1. From July 1, 2026, first-time investors receive bonus shares worth 3% of their subscription and existing holders 4% of any new subscription; the adviser or its affiliates "will contribute to us the full purchase price for the issued Bonus Shares from their own assets." The program was due to end with subscriptions accepted on October 1, 2026, and had raised about $45.1 million of its $250 million cap by September 1 (18%, our arithmetic). On September 30, 2026, Supplement No. 6 extended it: it now ends "immediately following the acceptance of subscriptions by us on December 1, 2026", or after the month in which proceeds since the start of the program pass $250 million (excluding upfront commissions, distribution reinvestments and Bonus Shares), in which case that last month's bonus shares are issued "on a pro rata basis". The supplement gives no new figure for the amount raised. One line matters to anyone thinking of leaving: "Stockholders that submit a repurchase request during the Incentive Period … will not be eligible to receive Bonus Shares for any subsequent subscriptions." We cannot tell from the filings whether Brookfield's own $45.0 million purchase on July 1, the program's first day, is counted in that $45.1 million.

None of this is hidden; it is spread across a 10-K, a 10-Q, two 424B3 supplements and two Schedule 13D filings. Read together, it says the redemption record is being carried by a sponsor that has more at stake in this REIT than any outside holder, which is both the reassurance and the risk.

The price record: a NAV barely above launch

The number a holder feels is the NAV: $10.5566 per Class I share at August 31, 2026, against the $10.00 launch price and a $13.9636 peak at October 31, 2022, a 24.4% fall from the top. Anyone who bought in 2022 is well under water on price; the distributions since then were, for tax purposes, their own capital coming back (below). Performance scores 2.5.

On the CEO change: the 8-K says Vaughan stepped down "to pursue other business opportunities" and stayed on as a director; Brian W. Kingston, already chairman, became CEO on April 4, 2023 and still signs as CEO and chairman. Press coverage tied the departure to the 2022 GAAP loss; the filing does not.

The distribution: cut in June 2026, and return of capital for three years

Until the spring of 2026 the monthly gross distribution was $0.0722 per share (8-K, May 28, 2026). On June 29 it was $0.0580, about 20% lower, and the net amount a Class I holder receives after the management fee (which is deducted from the distribution) fell from $0.0598 to $0.0454, about 24%. The June 15 supplement explains the new policy: the distribution "will be based on a target distribution yield, initially equal to an annualized distribution yield of 5.25% on our Class I shares." July, August and September declarations were $0.0591, $0.0593 and $0.0595 gross; the September 29 8-K shows a Class I net of $0.0462 (August: $0.0461), payable on or about October 20, 2026. The Class I net annualized rate was 5.26% at June 30, 2026.

Three disclosures explain why the old rate could not last.

Tax character. The 10-Ks classify 100% of 2023, 2024 and 2025 distributions as return of capital, with 0% ordinary income and 0% capital gains in each year.

Sources. The FY2025 10-K shows 55% of 2025 distributions from operating cash flow and 45% from "other sources"; the first half of 2026 was 60% and 40%. For 2023 the table says 99% from operations, but its footnote reads "Includes cash flows from operating activities in prior periods": the 2023 cash flow statement shows $33.7 million of operating cash flow against $64.3 million of distributions declared. In the first half of 2026, adjusted funds from operations were $12.8 million against $31.6 million of distributions, about 40% (our arithmetic).

Fees paid in stock, bought back for cash. The adviser takes its management fee in shares (for July 2026, 115,918 Class I shares for a $1.22 million fee), and the 10-K warns the REIT "may defer operating expenses or pay expenses (including the fees of the Adviser) with shares of our common stock in order to preserve cash flow for the payment of distributions." It then repurchased 639,467 of those shares from the adviser for $6.6 million in the first half of 2026, outside the repurchase plan and its limits ($5.8 million in the first half of 2025). Paying the fee in stock preserves cash on the day; buying the stock back later spends it. The pattern continued in the third quarter: the September 24 8-K reports 117,580 Class I shares issued for the August fee of $1,237,607, and a Form 4 filed October 2 shows the Adviser redeeming 332,529.824 Class I shares at $10.5566 on September 30, about $3.5 million (our arithmetic), leaving 240,110.383 shares held by the Adviser. Distribution Quality scores 2.0.

The portfolio and leverage

Percentages of real estate property value, as the REIT reports them (10-K for December; 424B3 of September 16, 2026 for August). The two new sleeves are 2026 purchases: 255 Caspian Drive in Sunnyvale, California, a 6.5-megawatt powered-shell data center bought in May for about $90.3 million, and an interest in a U.S. manufactured housing portfolio bought in June for an initial equity investment of about $87 million. The largest single property is the DreamWorks Animation Studios campus in Glendale, California (purchase price $326.5 million, 497,000 square feet, 100% leased), carried as net lease.

Leverage, on the company's own measure, was 48.4% at March 31, 2024, 47% at December 31, 2025, 51% at March 31, 2026 and 55% at June 30, 2026, inside its 50-60% target. The first-half rise is the acquisitions above, funded partly with the affiliate line. For comparison, our Nuveen review puts Nuveen's debt at about 25% of investments and our BREIT review puts BREIT's leverage at 44% on its own measure. Leverage scores 3.0.

Fees

The schedule is the standard large-sponsor structure, the same 1.25% plus 12.5%-over-5% that BREIT and SREIT charge, and more expensive than Nuveen Global Cities REIT, which charges no performance fee. Two details from the filings: the management fee comes out of each class's distribution, and no management or performance fee is paid on Class E shares, which are offered only to Brookfield and its affiliates, certain Brookfield and Oaktree employees, and the independent directors.

How Brookfield REIT fits the NAV REIT spectrum

Peer figures are from our own reviews of each fund, which cite their filings. Brookfield REIT lands in the upper middle: better than the gated BREIT and SREIT on the liquidity axis that defines the category, behind Nuveen and JLL on returns, distribution quality and how self-funded its liquidity is. The wider cluster includes Ares Real Estate Income Trust (3.7), Hines Global Income Trust (3.2), Invesco Real Estate Income Trust (3.0), the tender-offer fund KKR Real Estate Select Trust (3.4), RREEF Property Trust (3.1) and Cantor Fitzgerald Income Trust (2.3).

If you hold Brookfield REIT

• The window is open, and the filings say who holds it open. Outside holders are paid first; Brookfield's 37.44% waits behind them by contract.
• Before December 1, 2026 (the program was extended from October 1 on September 30): if you might buy more under the incentive program, note that a repurchase request during the program makes you ineligible for bonus shares on later subscriptions. If you plan to leave, the bonus shares are not yours anyway.
• Dates to watch: the October 20 distribution payment, the September 30 NAV supplement (the August value was filed on September 16), the affiliate line's November 2026 maturity (or its extension), the $279.3 million mortgage due in March 2027, the 10-Q for the third quarter in November, and early 2030, when the $200 million investor may start asking for repurchase over two years.
• What the next filings should show: whether net repurchases stay near zero once the incentive program ends, and whether the 40% "other sources" share of distributions falls after the June cut.

ProsCons

FAQ

Verdict

Brookfield Real Estate Income Trust earns 3.3 out of 5. On the axis the category is judged by, it is a success: every repurchase request paid, and a board that went over its own limits in 2024 rather than pro-rate.

The filings add the part a holder needs to price that record. In 2026 the window is held open by DST program inflows, a Brookfield affiliate loan and a sponsor that owns 37% of the shares and stands, by contract, behind outside holders in the queue, while a $200 million investor with a Brookfield-supported return sits locked in until about 2030. Downstream of liquidity the results are weak: a NAV 24% below its peak and barely above launch, three years of distributions that were entirely return of capital, and a 20% cut in June 2026.

For a holder, the question is not whether Brookfield REIT is a good fund in general. It is what this position is worth to you against those dependencies and dates. Read the June 30, 2026 10-Q, the September 16, 2026 supplement and Brookfield's Schedule 13D/A directly before relying on any summary, this one included.

Sources

Primary SEC EDGAR filings (CIK 1713407):

• EDGAR filings index
• 424B3 Supplement No. 6, September 30, 2026 (Investor Incentive Program extended to December 1, 2026) — 0001713407-26-000099
• 424B3 Supplement No. 5, September 16, 2026 (August 31 NAV, incentive program status) — 0001713407-26-000093
• 10-Q for the quarter ended June 30, 2026 — 0001713407-26-000079
• 424B3, June 15, 2026 (distribution policy, Investor Incentive Program) — 0001713407-26-000064
• Distribution 8-Ks: May 28, June 29, July 30, August 28 and September 29, 2026
• Unregistered-sales 8-Ks (adviser fee shares, Class C sales): August 24 and September 24, 2026
• Form 4s filed by Brookfield Corporation and the Adviser: Adviser share redemption, October 2, 2026 and BIM Capital exit filing, October 2, 2026
• Schedule 13D/A by Brookfield Corporation et al., July 9, 2026 and Schedule 13D, December 2, 2025
• FY2025 Form 10-K, FY2024 Form 10-K, FY2023 Form 10-K, FY2022 Form 10-K
• 10-Q for the quarter ended June 30, 2024 (above-limit repurchases) and 10-Q for March 31, 2024
• 424B3, November 15, 2022 (October 31, 2022 NAV)
• 8-K, April 4, 2023 (CEO change) and 8-K, June 9, 2026 annual meeting
• Oaktree-to-Brookfield transition 8-K (2021)

Secondary:

• Brookfield REIT — issuer site
• Bisnow — CEO departs after Brookfield REIT posts $39M loss
• Brookfield completes transition of non-traded REIT from Oaktree (2021)