UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 1-U
CURRENT REPORT
Pursuant to Regulation A of the Securities Act of 1933
October 3, 2023
(Date of Report (Date of earliest event reported))
RISE COMPANIES CORP.
(Exact name of issuer as specified in its charter)
| Delaware | 45-4862460 |
| (State or other jurisdiction of incorporation) | (IRS Employer Identification No.) |
11 Dupont Circle NW, 9th Floor,
Washington, DC | 20036 |
| (Address of principal executive offices) | (ZIP Code) |
(202) 584-0550
(Issuer’s telephone number, including area code)
Class B Common Stock
(Title of each class of securities issued pursuant to Regulation A)
Certain 2023 Performance Metrics
2023 year-to-date net returns of all client accounts of Fundrise Advisors by investment plan objective (January - September)1:
| Plan objective | | Income | | | Balanced | | | Growth | | | Other | | | Overall | |
| Dividends | | 2.85 | % | | 1.37 | % | | 0.84 | % | | 1.68 | % | | 1.43 | % |
| Appreciation | | -3.32 | % | | -4.71 | % | | -5.17 | % | | -4.38 | % | | -4.64 | % |
| Net Total Return | | -0.47 | % | | -3.33 | % | | -4.33 | % | | -2.69 | % | | -3.21 | % |
2023 year-to-date net returns of all client accounts of Fundrise Advisors by fund objective (January - September)2:
| Fund objective | | Net total return | |
| Income | | 5.12 | % |
| Balanced | | -5.75 | % |
| Growth | | -3.20 | % |
| Overall | | -3.21 | % |
2023 year-to-date performance of individual Fundrise sponsored funds (January - September)3:
| Fund name / objective | | Average AUM4 | | | Launch date | | Net total return | |
| Registered funds | | | | | | | | |
| Flagship Real Estate Fund | | $ | 1,386,106,393 | | | Jan 2021 | | | -5.52 | % |
| Income Real Estate Fund | | $ | 544,505,831 | | | Apr 2022 | | | 5.12 | % |
| Innovation Fund | | $ | 77,310,063 | | | Jul 2022 | | | 2.88 | % |
| Growth | | | | | | | | | | |
| Growth eREIT | | $ | 252,113,126 | | | Feb 2016 | | | -1.02 | % |
| Growth eREIT II | | $ | 161,080,449 | | | Sep 2018 | | | -4.72 | % |
| Development eREIT | | $ | 130,063,169 | | | Jun 2019 | | | -4.28 | % |
| eFund | | $ | 96,279,718 | | | Jun 2017 | | | -0.06 | % |
| Growth eREIT III | | $ | 63,242,911 | | | Feb 2019 | | | -7.61 | % |
| Growth eREIT VII | | $ | 83,434,923 | | | Jan 2021 | | | -5.45 | % |
| Balanced | | | | | | | | | | |
| East Coast eREIT | | $ | 165,534,709 | | | Oct 2016 | | | -12.86 | % |
| Heartland eREIT | | $ | 93,559,662 | | | Oct 2016 | | | -4.39 | % |
| West Coast eREIT | | $ | 88,003,265 | | | Oct 2016 | | | 2.08 | % |
| Balanced eREIT II | | $ | 54,407,187 | | | Jan 2021 | | | -5.02 | % |
Net returns of all client accounts of Fundrise Advisors for Q3 2023 by investment plan objective1:
| Plan objective | | Income | | | Balanced | | | Growth | | | Other | | | Overall | |
| Dividends | | 0.97 | % | | 0.45 | % | | 0.26 | % | | 0.58 | % | | 0.47 | % |
| Appreciation | | -2.04 | % | | -2.90 | % | | -3.12 | % | | -2.60 | % | | -2.83 | % |
| Net Total Return | | -1.07 | % | | -2.45 | % | | -2.86 | % | | -2.03 | % | | -2.36 | % |
Net returns of all client accounts of Fundrise Advisors for Q3 2023 by fund objective2:
| Fund objective | | Net total return | |
| Income | | 1.70 | % |
| Balanced | | -4.13 | % |
| Growth | | -1.22 | % |
| Overall | | -2.36 | % |
Performance of individual Fundrise sponsored funds for Q3 20233:
| Fund name / objective | | Average AUM4 | | | Launch date | | Net total return | |
| Registered funds | | | | | | | | |
| Flagship Real Estate Fund | | $ | 1,369,355,541 | | | Jan 2021 | | | -3.61 | % |
| Income Real Estate Fund | | $ | 555,216,423 | | | Apr 2022 | | | 1.70 | % |
| Innovation Fund | | $ | 90,513,091 | | | Jul 2022 | | | 2.69 | % |
| Growth | | | | | | | | | | |
| Growth eREIT | | $ | 245,048,966 | | | Feb 2016 | | | -1.11 | % |
| Growth eREIT II | | $ | 148,237,608 | | | Sep 2018 | | | 0.43 | % |
| Development eREIT | | $ | 127,145,114 | | | Jun 2019 | | | -1.97 | % |
| eFund | | $ | 92,423,320 | | | Jun 2017 | | | 0.00 | % |
| Growth eREIT III | | $ | 58,097,974 | | | Feb 2019 | | | -3.11 | % |
| Growth eREIT VII | | $ | 80,097,099 | | | Jan 2021 | | | -3.48 | % |
| Balanced | | | | | | | | | | |
| East Coast eREIT | | $ | 158,863,672 | | | Oct 2016 | | | -12.63 | % |
| Heartland eREIT | | $ | 87,812,464 | | | Oct 2016 | | | -2.53 | % |
| West Coast eREIT | | $ | 84,022,188 | | | Oct 2016 | | | 1.25 | % |
| Balanced eREIT II | | $ | 51,027,422 | | | Jan 2021 | | | -3.26 | % |
1 “Net Total Return” consists of the time-weighted, weighted-average aggregate returns of Fundrise Advisors client accounts that have participated in the indicated investment plan objective during the period indicated, calculated using the Modified Dietz method. The “Other” category includes custom (i.e. client-directed) plans. Net total returns are inclusive of dividends and capital gains / losses, are net of fees, and include shares which were acquired via dividend reinvestment. “NAV distributions” (if any) are considered as part of the appreciation / price return component. Net total returns do not include investments in the Fundrise Opportunity Fund, Innovation Fund, and Opportunistic Credit Fund.
2 “Net Total Return” consists of the time-weighted, weighted-average aggregate returns of Fundrise Advisors client accounts within the funds with the stated fund objective during the period indicated, calculated using the Modified Dietz method. Net total returns are inclusive of dividends and capital gains / losses, are net of fees, and include shares which were acquired via dividend reinvestment. Net total returns do not include investments in the Fundrise Opportunity Fund, Innovation Fund and Opportunistic Credit Fund.
3 “Performance of individual Fundrise sponsored funds” specifically refers to the time-weighted return for the period indicated, calculated using the Modified Dietz method. Returns are inclusive of dividends and capital gains / losses, are net of fees, and include shares which were acquired via dividend reinvestment.
4 “Average AUM” is the daily average invested capital in the indicated program during the period indicated, calculated using the Modified Dietz method. The average capital calculation weights individual cash flows (for example investments or redemptions) by the length of time between those cash flows until the end of the period. Flows which occur towards the beginning of the period have a higher weight than flows occurring towards the end.
Safe Harbor Statement
This Current Report on Form 1-U contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled “Risk Factors” in the most recently qualified Offering Statement on Form 1-A filed with the Securities and Exchange Commission (“SEC”), as such factors may be updated from time to time in our periodic filings and prospectus supplements filed with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
SIGNATURES
Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | RISE COMPANIES CORP. |
| | |
| | |
| | By: | /s/ Bjorn J. Hall |
| | Name: | Bjorn J. Hall |
| | Title: | General Counsel |
| | |
| Date: October 3, 2023 |
