Access Compelling Opportunities in Commercial Real Estate

Title: Access Compelling Opportunities in Commercial Real

Description: Learn how REFLX can potentially provide diversification, a hedge against inflation, and attractive tax-advantaged income

Text on screen: PIMCO

Text on screen: PIMCO provides services only to qualified institutions and investors. This is not an offer to any person in any jurisdiction where unlawful or unauthorized.

Text on screen: Ryan Mulvey, Strategist

Mulvey: Hello, I'm Ryan Mulvey, a strategist at PIMCO focusing on commercial real estate and mortgage strategies. For more than a decade, PIMCO has been investing in commercial real estate opportunities across the globe. Since that time, we have grown our commercial real estate platform to $189 billion in assets under management across public and private debt and equity investments. Relying on our team of more than 285 real estate professionals globally. We launched the PIMCO Flexible Real Estate Income Fund or REFLX in late 2022 in order to take advantage of what we saw as the most attractive opportunity in more than a decade. We believe REFLX is an evolution in the commercial real estate product space, offering the same access to the markets as more traditional real estate products, but differentiates itself in a few key ways.

CHEVRON SPLIT SCREEN: Text on left: REFLX’s key differentiators: 1. Flexibility, B-roll: Real estate

One is flexibility. REFLX has the broad flexibility to invest across public and private commercial real estate debt and equity.

Seeking to find the most attractive risk adjusted value in the stabilized commercial real estate space. We believe this flexibility has served the fund well since inception and was one of the main attributes that prevented the fund from the drawdowns in the market in 2023. We anticipate that this flexibility will continue to serve us going forward.

CHEVRON SPLIT SCREEN: Text on left: REFLX’s key differentiators: 2. More seamless access, B-roll: Real estate

The second is structure. The fund is structured as an interval fund, a type of unlisted closed end fund, providing quarterly share repurchase offers and daily subscriptions.

By utilizing a relatively more traditional fund structure, REFLX offers simple 1099 tax treatment, no minimum investor eligibility requirements, and can be generally bought in the same manner as a mutual fund.

CHEVRON SPLIT SCREEN: Text on left: REFLX’s key differentiators: 3. Fresh capital, B-roll: Real estate

And third is timing. We believe the fund launched at an opportune time in the market as valuations across commercial real estate equity were declining as cap rates began to rise and as the opportunity for commercial real estate lending rose as banks stepped away from the market.

REFLX was launched with fresh capital to take advantage of this market. It was not burdened by legacy assets that can weigh on returns. We see commercial real estate as an essential component in an alternatives portfolio providing the potential for diversification, a hedge against inflation, and the potential for attractive tax advantaged cash flows over the long term. But we believe that flexibility in a fund will be the key to unlocking these benefits going forward. We see REFLX as an evergreen commercial real estate strategy that seeks to provide the benefits of commercial real estate in an efficient, accessible and flexible investment structure. Thank you for your time today. And for more information about REFLX, please contact your PIMCO representative.

Text on screen: For more insights and information visit pimco.com

Text on screen: PIMCO

Information as of 30 June 2024 unless specified otherwise.

PIMCO’s real estate platform is approximately $180B+ as of 30 June 2024, including $95.2B managed by PIMCO Prime Real Estate, an affiliate and wholly-owned subsidiary of PIMCO and PIMCO Europe GmbH, that includes PIMCO Prime Real Estate GmbH, PIMCO Prime Real Estate LLC and their subsidiaries and affiliates. PIMCO Prime Real Estate LLC investment professionals provide investment management and other services as dual personnel through Pacific Investment Management Company LLC. PIMCO Prime Real Estate GmbH operates separately from PIMCO.

Investors should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. This and other information are contained in the fund’s prospectus, which may be obtained by contacting your investment professional or PIMCO representative or by visiting www.pimco.com. Please read the prospectus carefully before you invest or send money.

The Fund inception date is 17 November 2022.

The PIMCO Flexible Real Estate Income Fund (“REFLX” or the “Fund”) is an unlisted closed-end “interval fund.” Limited liquidity is provided to shareholders only through the Fund’s quarterly offers to repurchase between 5% and 25% of its outstanding shares at net asset value (subject to applicable law and approval of the Board of Trustees, the Fund currently expects to offer to repurchase 5% of outstanding shares per quarter). Investors should consider shares of the fund to be an illiquid investment.

Past performance is not a guarantee or a reliable indicator of future results. No assurance can be given that the Fund’s investment objectives will be achieved, and you could lose all of your investment in the Fund.

Investments made by the Fund and the results achieved by the Fund are not expected to be the same as those made by any other PIMCO-advised Fund, including those with a similar name, investment objective or policies. A new or smaller Fund’s performance may not represent how the Fund is expected to or may perform in the long-term. New Funds have limited operating histories for investors to evaluate and new and smaller funds may not attract sufficient assets to achieve investment and trading efficiencies. 

A word about risk: Investments in residential/commercial mortgage loans andcommercial real estate debt are subject to risks that include prepayment, delinquency, foreclosure, risks of loss, servicing risks and adverse regulatory developments, which risks may be heightened in the case of non-performing loans. Investing in foreign denominated and/or domiciled securities may involve heightened risk due to currency fluctuations, and economic and political risks, which may be enhanced in emerging markets. Mortgage- and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and their value may fluctuate in response to the market’s perception of issuer creditworthiness; while generally supported by some form of government or private guarantee, there is no assurance that private guarantors will meet their obligations. Private credit involves an investment in non-publically traded securities which may be subject to illiquidity risk. Portfolios that invest in private credit may be leveraged and may engage in speculative investment practices that increase the risk of investment loss. Private Credit will also be subject to real estate-related risks, which include new regulatory or legislative developments, the attractiveness and location of properties, the financial condition of tenants, potential liability under environmental and other laws, as well as natural disasters and other factors beyond the fund’s control. High-yield, lower-rated, securities involve greater risk than higher-rated securities; portfolios that invest in them may be subject to greater levels of credit and liquidity risk than portfolios that do not. Equities may decline in value due to both real and perceived general market, economic, and industry conditions. Bank loans are often less liquid than other types of debt instruments and general market and financial conditions may affect the prepayment of bank loans, as such the prepayments cannot be predicted with accuracy. There is no assurance that the liquidation of any collateral from a secured bank loan would satisfy the borrower’s obligation, or that such collateral could be liquidated.

Investments in distressed loans and bankrupt companies are speculative and the repayment of default obligations contains significant uncertainties. The value of real estate and portfolios that invest in real estate may fluctuate due to: losses from casualty or condemnation, changes in local and general economic conditions, supply and demand, interest rates, property tax rates, regulatory limitations on rents, zoning laws, and operating expenses. Structured products such as collateralized debt obligations are also highly complex instruments, typically involving a high degree of risk; use of these instruments may involve derivative instruments that could lose more than the principal amount invested. Joint ventures are subject to management risk, potential for default, conflicts of interest, and may be considered speculative and involve a high risk of investment loss. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. Leveraging transactions, including borrowing, typically will cause a portfolio to be more volatile than if the portfolio had not been leveraged. Leveraging transactions typically involve expenses, which could exceed the rate of return on investments purchased by a fund with such leverage and reduce fund returns. The use of leverage may cause a portfolio to liquidate positions when it may not be advantageous to do so. Leveraging transactions may increase a fund’s duration and sensitivity to interest rate movements.

An investment in an interval fund is not appropriate for all investors. Unlike typical close-end funds an interval fund’s shares are not typically listed on a stock exchange. Although interval funds provide limited liquidity to investors by offering to repurchase a limited amount of shares on a periodic basis, investors should consider shares of the Fund to be an illiquid investment. Investments in interval funds are therefore subject to liquidity risk as an investor may not be able to sell the shares at an advantageous time or price. There is also no secondary market for the Fund’s shares and none is expected to develop. There is no guarantee that an investor will be able to tender all or any of their requested Fund shares in a periodic repurchase offer.

PIMCO does not provide legal or tax advice. Please consult your tax and/or legal counsel for specific tax or legal questions and concerns.

Statements concerning financial market trends or portfolio strategies are based on current market conditions, which will fluctuate. There is no guarantee that these investment strategies will work under all market conditions or are appropriate for all investors and each investor should evaluate their ability to invest for a long-term especially during periods of downturn in the market. An investment in the Fund is speculative involving a high degree of risk, including the risk of a substantial loss of investment. Investors should consult their investment professional prior to making an investment decision.

PIMCO as a general matter provides services to qualified institutions, financial intermediaries and institutional investors.

Individual investors should contact their own financial professional to determine the most appropriate investment options for their financial situation. This material contains the opinions of the manager and such opinions are subject to change without notice. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information contained herein has been obtained from sources believed to be reliable, but not guaranteed. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. PIMCO is a trademark of Allianz Asset Management of America LLC in the United States and throughout the world. ©2024, PIMCO.

PIMCO Investments LLC, distributor, 1633 Broadway, New York, NY 10019, is a company of PIMCO.

CMR2024-0806-3772279