Tuesday, January 20, 2015

Rich-Uncles Declares 4th Quarter Dividend for 2014

Newport Beach, CA.

Nexregen Real Estate Investment Trust I, known to investors and most people as Rich Uncles, reported and paid today a quarterly cash dividend in the amount of $0.1875 per $10 share to interest holders of record as of December 31, 2014.

The dividend equals an annualized 7.5% investment return.  As an investor, you’d have to be in junk bond territory to get that type of yield. 

Business Update

Here are some of the company highlights from the report:

·      All commercial properties in the portfolio (22 Del Taco and 1 Chase Bank) remain leased, with all schedule rents received on a timely basis.
·      The “Rich-Uncles.com” Internet platform has been completely upgraded.  Current and future investors are able to access their accounts, review their holdings at any time, buy more shares via their linked accounts, etc.
·      Sales: Investors bought $1 million worth of shares in the company during the month of December.  This represents the company’s best single month performance to date.
·      The acquisition (of new properties) Line of Credit balance was reduced to zero. 

Line of Credit

Straight from the report:

(The purpose of the Line of Credit is to buy income generating commercial real estate investments in conjunction with selling Company Shares. As Shares in the Company are sold, the Line of Credit balance is correspondingly reduced. In this regard, new Shareholders immediately own income producing real estate and immediately earn Dividends derived from this real estate).

To date, our Line of Credit has been provided by our founders. We have replaced this original Line of Credit with a new, expanded Line of Credit provided by Pacific Mercantile Bank. The Line of Credit limit is now $2.5 million. The Line of Credit provides us great flexibility and nimbleness – we can quickly close on compelling purchase opportunities, which gives us a competitive advantage in the market.   

New Properties

Founder Uncle Harold Hofer recently signed a contract to purchase a Chevron gas station and an “ExtraMile” mini-mart located in Rancho Cordova (Sacramento, CA).  The property has a brand new 10-year Triple Net Lease and is the type of property Rich-Uncles loves to buy.  Uncle Harold and his partner and Co-Founder, Uncle Howard Makler, are overseeing the due-diligence process currently.  If all things check, they expect to close escrow in February.

Dividend Info

As a Rich-Uncles’ investor and the Investors’ Ambassador, I’m often asked how the dividend works.   Dividend distributions take place around the 20th (not exactly because sometimes the 20th falls on a weekend/holiday/etc.) of the first month of the subsequent quarter.  Case in point: The last quarter ended on December 31st, 2014, and today, 1/20/15, we get our money.  That’s if you elect to get the dividend paid to you each quarter in cash.  There is a re-investment option.  In this case, your dividend distribution will be used to purchase additional shares at the fixed rate of $10/share.  The latter option allows you to take advantage of compounding interest!

Here’s a little more info from the quarter report on the dividend: 

Shareholders who purchased Shares during the fourth quarter of 2014 will have their Dividend payment pro-rated based upon a 92 day calendar quarter, as measured from the date shown on each Shareholder’s Share Certificate.

Shareholders who purchased Shares on more than one occasion will receive one check representing all of the Dividends owed to them; and those who own their Shares in a custodial retirement account will have their Dividend paid directly to the account custodian.

Shareholders who have elected to participate in the Company’s Dividend Reinvestment Program will receive notification via email of their current Share account balances, including the reinvested Dividends, on January 20, 2015.  

Comments from Uncle Harold Hofer

I reached out to Uncle Harold today to get his take on the fourth quarter of 2014.  He said:

"Our performance for the fourth quarter clicked on all cylinders. First and foremost, our investment properties remained 100% leased with all rents received as scheduled.  We completed the upgrade to our Rich-Uncles.com crowdfunding platform and were rewarded with a great reception by the investing public - $1 million of shares were sold on Rich-Uncles.com in December!  Our 7.5% annualized dividend continues unabated, fully supported by the rents paid by our tenants.  We are under contract to purchase our next property, which fits our acquisition parameters and will broaden the base of our underlying rent-paying investments.  We are pleased and humbled by the confidence shown by our investors, and we will continue to work hard on their behalf."

Some Quick General Info

Unfortunately, investing with Nexregen I, a public, non-exchange traded (i.e., not traded in the stock market) REIT, is only available to California residents or Internationals.  There are legalities the company has to abide by as a public, crowdfunding entity that deals in commercial real estate and securities.  If you are interested in the investment, there’s much you can do to educate yourself.  

“Our collective success is enhanced by selling more Shares and buying more properties. Please refer Rich-Uncles.com to your family members, friends and business colleagues. Our Advisor pays a free Shares referral fee for every referral you make that results in a new Shareholder. Do us – and yourself – a favor by spreading the word!”

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