No Real Estate-Related Transaction Fees
Acquisition, Disposition and Financing Fees Have Been Eliminated (as of August 8, 2016).
|Class A||Class T||Class T-3|
|Estimated Per Share Value2||$22.50||$22.51||$22.51|
|Distribution Reinvestment Plan3||$23.75||$22.81||$22.81|
|Ordinary Repurchases until the initial valuation date4,5
(96% of the applicable estimated per share value after the initial valuation date6)
|Exceptional Repurchases until the initial valuation date5
(100% of the applicable estimated per share value after the initial valuation date6)
“Exceptional repurchases” are repurchases upon the death or “qualifying disability” of a stockholder, and all other repurchases are referred to as “ordinary repurchases.”
Generally, investors must have a minimum net worth of $250,000, excluding the value of homes, furnishings and automobiles, or $70,000 gross income and $70,000 net worth. Investors also should desire a relatively long-term investment and not require immediate liquidity.
Minimum Initial Investment:
1 The share classes differ with respect to the sales load (broker commission, dealer/ manager fee, issuer costs). Class A Shares charge a traditional sales load that is taken at the time of initial investment. Class T and T-3 Shares charge a reduced sales load that is taken at the time of initial investment, so that more dollars are available for investment, with a trailing distribution servicing fee of 1% spread over approximately 5.25 and 3 years respectively. Please consult the prospectus for more information about Class A , T and T-3 shares.
2 As of April 11, 2016, regulatory changes require that the per-share estimated values of publicly issued, nonlisted REIT securities be shown on investor account statements using an approved methodology. Inland Residential Trust statements currently report estimated per share values using the Net Investment Methodology which reflects the maximum offering price (per share) minus commissions, dealer manager fee and issuer costs. Upon redemption, the price received may be less than the per share estimated value provided in the account statement.
3 The Distribution Reinvestment Plan provides stockholders with an opportunity to purchase additional shares of common stock by reinvesting cash distributions.
4 The Share Repurchase Program (SRP) is designed to provide eligible stockholders with limited, interim liquidity by enabling stockholders to sell shares back to Inland Residential Trust. Inland Residential Trust may make ordinary repurchases under the share repurchase program (SRP) only if it has sufficient funds available to complete the repurchase. In any given calendar month, Inland Residential Trust is authorized to use only the proceeds from its Distribution Reinvestment Plan during that month to make ordinary repurchases. In addition, Inland Residential Trust will limit the number of shares repurchased during any calendar year to 5% of the number of shares of common stock outstanding on December 31 of the previous calendar year. Stockholders must have owned their shares for at least one year.
5 Inland Residential Trust’s board of directors, in its sole discretion, may at any time amend, suspend (in whole or in part), or terminate the SRP, with 30-day prior notice to stockholders. The board reserves the right in its sole discretion to change the repurchase prices or reject any requests for repurchases. The SRP should not be relied upon as a source of liquidity. Consult the prospectus, as supplemented, for a discussion of the SRP.
6 The initial valuation date will occur in 2018 – approximately two years and 150 days from September 9, 2015, on which date Inland Residential Trust satisfied its minimum escrow requirement.
7 Alabama, California, Iowa, Kansas, Kentucky, Maine, Massachusetts, Michigan, Missouri, Nebraska, New Jersey, New Mexico, North Dakota, Ohio, Oregon, Pennsylvania, Tennessee and Washington have established suitability requirements that are more stringent than the standards described above. In each case, these special suitability standards exclude from the calculation of net worth the value of the investor’s home, furnishings and automobiles.