Distribution Reinvestment Plan
The Wellings Real Estate Income Fund Dividend Reinvestment Plan (DRIP) is for those interested in long-term growth and appreciation, not necessarily monthly cash flow distributions. We've always wanted to offer this option, but traditional syndications don't typically allow for this. Many of our investors, including our own team members at Wellings Capital, have really wanted this, so we're very excited it's now an option.
Complete the form below if you’d like to opt in or out of the DRIP. Please note that you can opt in or opt out at any time, but please allow up to 65 days for your preference to take effect. If you decide to opt in, all of your investments in the Wellings Real Estate Income Fund will be opted into the DRIP.
After the Fund investment period is complete, the DRIP will be turned off since the Fund will not be making additional investments. At that point, monthly distributions will resume to all Wellings Real Estate Income Fund investors.
If you don’t opt in to the Distribution Reinvestment Plan, you will automatically receive monthly distributions via ACH direct deposit. If you have any other questions regarding the DRIP, email emmerson@wellingscapital.com or call us at 800-844-2188.
an example
An investor invests $250k in the fund. Let’s say the yield is 5% annualized and the fund distributes monthly. This means that the investor should expect their monthly distribution to be $1,041.67. If the investor decides to opt in to the distribution reinvestment plan, their monthly distributions will be reinvested back into the fund so the fund can invest in additional assets. The investor’s capital base at the end of first month’s distribution would be $251,041.67 ($250,000 + $1,041.67). At the end of second month’s distribution, the investor’s capital base would be $252,087.68 ($251,041.67 + $1,046.01). At the end of third month’s distribution, the investor’s capital base would be $253,138.05 ($252,087.68 + $1,050.37) and so on.
From the wellings real estate income fund Supplement no 1
For the full supplement, please review the Fund portal page or email invest@wellingscapital.com.
The Fund has adopted a distribution reinvestment plan (the “DRIP”), pursuant to which the Fund will reinvest all cash distributions declared by the Board on behalf of Shareholders who do not elect to receive their distributions in cash as provided below. As a result, if the Board authorizes, and the Fund declares, a cash distribution or other distribution, then the Shareholders who have opted into the DRIP will have their cash distributions automatically reinvested in additional Shares as described below, rather than receiving the cash distribution or other distribution. Distributions on fractional Shares will be credited to each participating Shareholder’s account to three decimal places. Such additional amounts will be considered additional capital contributions with regard to participating Shareholders.
A participating Shareholder will receive an amount of Shares equal to the amount of the distribution on that participant’s Shares divided by the then-current Offering price per Share. The Fund intends to use newly issued Shares to implement the plan.
Shareholders must “opt in” to have his, her or its cash distribution or other distribution reinvested in the Fund’s Shares. Shareholders can elect to “opt out” of the Fund’s DRIP in their Subscription Agreements. A Shareholder may elect to receive its entire distribution in cash at any time by notifying the Fund’s transfer agent in writing. If, however, a Shareholder requests to change its election within 65 days prior to a distribution, the request will be effective only with respect to distributions after the 65-day period.
There are no brokerage charges or other charges to Shareholders who participate in the plan. The plan may be terminated by the Fund at any time upon notice in writing to each Shareholder of record.