# EDGAR Filing Document

**Accession Number:** 0001857314
**File Stem:** 0001213900-23-018192
**Filing Date:** 2023-3
**Character Count:** 153136
**Document Hash:** 4846726f300b34fe98e8ac3e2291f919
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-23-018192.hdr.sgml**: 20230307

**ACCESSION NUMBER**: 0001213900-23-018192

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 24

**FILED AS OF DATE**: 20230307

**DATE AS OF CHANGE**: 20230307

**EFFECTIVENESS DATE**: 20230307

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Forum Real Estate Income Fund
- **CENTRAL INDEX KEY:** 0001857314
- **IRS NUMBER:** 862859042
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-23658
- **FILM NUMBER:** 23712343

**BUSINESS ADDRESS:**
- **STREET 1:** C/O FORUM CAPITAL ADVISORS, LLC
- **STREET 2:** 240 SAINT PAUL STREET, SUITE 400
- **CITY:** DENVER
- **STATE:** CO
- **ZIP:** 80206
- **BUSINESS PHONE:** 303-501-8860

**MAIL ADDRESS:**
- **STREET 1:** C/O FORUM CAPITAL ADVISORS, LLC
- **STREET 2:** 240 SAINT PAUL STREET, SUITE 400
- **CITY:** DENVER
- **STATE:** CO
- **ZIP:** 80206

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Forum CRE Income Fund
- **DATE OF NAME CHANGE:** 20210415

?xml version="1.0" encoding="ASCII"?

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

**FORM N**-CSR

**CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES**

Investment Company Act File Number <u>811-23658</u>

#### Forum Real Estate Income Fund
___________________________________________

(Exact name of registrant as specified in charter)

240 Saint Paul Street, Suite 400

Denver, CO 80206

___________________________________________

(Address of principal executive offices) (Zip code)

Darren Fisk

Forum Capital Advisors, LLC

240 Saint Paul Street, Suite 400

Denver, CO 80206

___________________________________________

(Name and address of agent for service)

Registrant's telephone number, including area code: <u>(303) 501-8860</u>

Date of fiscal year end: <u>December 31</u>

Date of reporting period: <u>December 31, 2022</u>

------

**Item 1. Reports to Stockholders**

**(a)** The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1)

**Forum Real Estate Income Fund (formerly Forum CRE Income Fund)**

**Founders Shares (formerly Class I)**

 Annual Report<br> December 31, 2022<br>

*Investor Information: 1-303-501-8860*<br>

This report and the financial statements contained herein are submitted for the general information of shareholders and are not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus. Nothing contained herein is to be considered an offer of sale or solicitation of an offer to buy shares of the Forum Real Estate Income Fund. Such offering is made only by prospectus, which includes details as to offering price and other material information.

------

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  [Shareholder Letter (Unaudited)](#T9901) | 1 |
|  [Management's Discussion and Analysis (Unaudited)](#T9955) | 5 |
|  [Portfolio Review (Unaudited)](#T9902) | 6 |
|  [Schedule of Investments](#T9904) | 7 |
|  [Statement of Assets and Liabilities](#T9905) | 11 |
|  [Statement of Operations](#T9906) | 12 |
|  [Statements of Changes in Net Assets](#T9907) | 13 |
|  [Financial Highlights](#T9908) | 14 |
|  [Statement of Cash Flows](#T9909) | 15 |
|  [Notes to the Financial Statements](#T9910) | 16 |
|  [Report of Independent Registered Public Accounting Firm](#T9911) | 30 |
|  [Trustees and Officers (Unaudited)](#T9912) | 31 |
|  [Expenses Example (Unaudited)](#T9960) | 33 |
|  [Privacy Notice (Unaudited)](#T9913) | 34 |
|  [Additional Information (Unaudited)](#T9961) | 36 |

---

------

![](tforum_logoa.jpg)

Dear Investor:

We are pleased to present the 2022 annual report for Forum Real Estate Income Fund.

Forum Real Estate Income Fund (the "Fund") was created to deliver access to institutional-quality commercial real estate debt investments not typically available to individual investors, with the primary objectives of maximizing current income and preserving capital, and a secondary emphasis on achieving long-term appreciation. The Fund concentrates its investments (that is, it invests more than 25% of its assets) in the real estate industry.

The Fund leverages the expertise of two established investment managers, Forum Capital Advisors LLC ("FCA" or "the Adviser") and Janus Henderson Investors US LLC ("Janus" or "the Sub-adviser") to source, evaluate, and monitor its differentiated and diversified institutional real estate portfolio. At the time of this report, the Fund's portfolio primarily includes CMBS, agency and non-agency securitizations, preferred equity positions, and senior and mezzanine loans.

FCA, together with its affiliates (which we collectively refer to as "Forum")<sup>1</sup>, has completed over $2.5 billion<sup>2</sup> in real estate transactions in its history, including the origination of over $493 million<sup>3</sup> in multifamily investments since its inception in 2007. Janus, a nationally recognized global investment manager, manages nearly $287.3 billion<sup>4</sup> of assets, and employs over 345 investment professionals<sup>4</sup> nationwide. Together, the combined experience of Forum and Janus presents the Fund with what we believe is the unique capacity to identify and procure income-producing, institutional-quality real estate related investments across both the public and private sectors.

The Fund is taxed as a REIT, which qualifies it to exercise certain tax attributes that could result in a lower net effective tax rate, and higher after-tax dividend proceeds to certain types of investors, when compared to most non-REIT fixed income alternatives. FCA also believes that this tax structure will help simplify the year-end tax reporting process, as investors receive one Form 1099 from the Fund, as opposed to several federal and state K-1s.<sup>5</sup>

____________

1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forum Investment Group LLC is primarily comprised of Forum Capital Advisors LLC and FCA Capital Markets LLC, and is affiliated with Forum Real Estate Group, LLC (collectively, "Forum").

2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Figures represent Forum Real Estate Group's direct real estate historical portfolio and includes multifamily acquisitions, developments, under constructions, and sold assets as of December 31, 2022. Does not include commercial/land projects.

3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Figures reflect the Forum Structured Finance team historical multifamily portfolio since December 2015 through December 31, 2022. The team originated $254.7M prior to joining Forum, and $238.6M since joining Forum in 2021 ($10.15M has been sourced in a Forum private offering.)

4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Obtained directly from Janus Henderson, data as of December 31, 2022.

5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This information is provided for informational purposes only and is not intended to be relied upon as tax, legal, or investment advice.

In September, the Fund completed its conversion from a monthly priced tender offer fund to a daily priced interval fund structure. Among other things, this change was intended to provide simplicity and flexibility to prospective and current investors through a point-and-click purchasing solution to the advisor community via the Fund's symbol (FORFX),<sup>6</sup> along with competitive minimums and regular quarterly redemption opportunities.

Highlights for the year-ended December 31, 2022 include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual dividend of 7.84%<sup>7</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual Net Return of 0.46%

**Market Update**

Management spent much of 2022 focused on the potential ramifications of the rising cost of capital and a generally less accommodating lending environment. FCA believes the price of money is a key determinant of investment conduct and economic activity, especially in a capital-intensive business such as real estate.

In 2022, stocks had their worst year since 2008,<sup>8</sup> and publicly traded commercial real estate ("CRE") finished near the back of the pack. However, equity markets showed some resiliency in the fourth quarter, taking some of the sting out of what was an otherwise ugly year.

The bounce-back quarter allowed equity markets to wrap up the year off of their lows, with the Dow Jones, S&P 500, and NASDAQ indices producing annual returns of -7%, -18%, and -33%, respectively.<sup>8</sup>

The bond market also closed out the year on a positive note. The US Aggregate Bond Index and the High Yield Index finished the fourth quarter with gains of 1.9% and 4.2%, respectively. Those advances cut losses for the year to 13.0% and 11.0%, respectively.<sup>8</sup>

With respect to CRE equities, even with a positive fourth quarter, the REIT index (FTSE NAREIT All Equity REIT) still plunged 25% for the year, with office REITs (-38%) and apartment REITs (-34%) having especially tough years.<sup>8</sup>

CRE debt, measured by the CMBS market, did not seem to participate in the fourth quarter relief rally. The Bloomberg Barclays CMBS BBB Index finished the quarter down 1.3%, taking its loss for the year to in excess of 13%.<sup>8</sup>

At the property sector level, more signs of slowing seemed to emerge in the fourth quarter, but the deterioration in most sectors was from lofty levels, meaning we believe underlying fundamentals appear to remain fairly healthy. The notable exception was the office sector, as older buildings seem to be losing appeal and back-to-the-office momentum continues to seem sluggish, particularly in major markets. We believe the combination of loan maturities, higher rates and falling values will likely precipitate a crisis moment for highly leveraged office properties in the coming year that may end with

____________

6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FORFX is currently available for purchase on the AXOS and Pershing platforms.

7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual dividend comprised of 100% net investment income.

8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Source: Bloomberg, December 2022.

real estate forcefully changing hands. On a more positive note, retail and hospitality appear to have rebounded. We believe the big question for these two more volatile sectors will be whether owners took sufficient advantage of the recovery window to prepare for an anticipated economic slowdown.

**Strategy**

The Fund continues to generally target high coupon floating rate debt, employing rigorous property-level underwriting focused on cash flow, debt coverage and replacement costs primarily in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stabilized assets in commercial real estate sectors with strong long-term outlooks

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Development financing for strategic multifamily projects

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Properties backed by institutional-quality sponsors with meaningful capital subordinate to our investment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Positions in the capital stack that provide a wide margin of safety related to potential impairment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Markets and submarkets where we believe the underlying CRE fundamentals will prove most resilient

We continue to believe there is merit to a steadfast commitment to active risk management, thorough due diligence, the flexibility inherent in the Fund's broad mandate, and the team's extensive sourcing capabilities. FCA purposely constructed its team, alongside Janus, to navigate an expansive and diverse investment landscape, best positioning the Fund to meet its top priorities: current income, capital preservation, and consistent long-term risk-adjusted returns. The Fund's ability to be nimble has been critical to the execution of our strategy.

**Performance**

The Fund continues to seek to fulfill its primary objective of providing current income to shareholders, paying a 7.84%<sup>9</sup> cumulative annual dividend in 2022. Additionally, the Fund's net return of 0.46% compared favorably to its benchmark, the Bloomberg US CMBS Investment Grade: Bbb Index (-13.38%).

**Outlook**

The team's outlook is more positive than going into last year, but we caution that we have very little confidence in our ability to predict the macroeconomic future. Below are some brief thoughts and observations on where CRE markets might be headed in the upcoming year.

We first highlight what we believe is an unusually broad gulf that has opened up in expectations surrounding CRE valuations and fundamentals. The most visible manifestation of this disunion appears to be the pricing differential between public and private markets. On the heels of a meaningful correction, CRE assets held by public companies, mostly REITs, generally seem to be trading at higher cap rates and lower values than where private holdings are marked or listed.<sup>10</sup> We believe this

____________

9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Annual dividend comprised of 100% net investment income.

10&nbsp;&nbsp;&nbsp;&nbsp; Source: Bloomberg, December 2022.

spread must, and ultimately will, narrow. How that unfolds directionally will be a key driver of CRE performance in the coming year. For reasons outlined below, our expectation is for cap rates to move higher in private markets and values to decrease.

We also suggest that we may be in the midst of transitioning to a radically different economic cycle, characterized by higher rates and more modest returns on equity investments. Central to this thesis is the assumption that a sizable portion of the investment gains of the last 15 years were the result of declining interest rates and bountiful liquidity. If we are in the early days of a shift to a new era of higher interest rates and an increasingly restrictive lending environment, we believe the investment ramifications will be significant. However, consensus still seems to be that we may get one or two more rate hikes before the Federal Reserve pauses, and perhaps pivots right back to rate cuts by late 2023 or early 2024.

Overall, we believe the Fund continues to achieve its objectives in and remains favorably positioned to navigate a potentially radically changing and unpredictable environment. Thank you for your continued investment.

Sincerely,

![](treal_signaturre.jpg)

Pat Brophy, Portfolio Manager

All statements made herein are opinions of Forum Capital Advisors LLC, unless otherwise stated herein, and should not be construed as investment advice and/or recommendations.

Dividends are not a direct reflection of fund performance. The Fund can pay dividends from any source, including income and realized gains. The Fund's dividend proceeds may exceed its earnings, in which case portions of dividends that the Fund makes may be a return of money that Shareholders originally invested.

FORUM REAL ESTATE INCOME FUND<br>**Management's Discussion and Analysis (Unaudited)**<br> December 31, 2022<br>

The Fund's performance figures\* for the period ended December 31, 2022, compared to its benchmarks:

---

| | | |
|:---|:---|:---|
|  **Fund/Index** | **1-Year** | **Annualized<br>Since<br>Inception**<sup>(a)</sup> |
|  Forum Real Estate Income Fund | 0.46% | 2.52% |
|  **Fund Benchmark** |  |  |
|  Bloomberg U.S. Aggregate Bond Index<sup>(b)</sup> | (13.01)% | (7.27)% |
|  Bloomberg U.S. Corporate High Yield<sup>(c)</sup> | (11.19)% | (4.84)% |
|  S&P 500 Index<sup>(d)</sup> | (18.11)% | (3.45)% |
|  Bloomberg Barclays CMBS BBB<sup>(e)</sup> | (13.38)% | (7.20)% |

---

![](tlinechart_001.jpg)

____________

\* &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund's past performance does not guarantee future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance of the Fund may be lower or higher than the performance quoted. Returns are calculated using the traded net asset value or "NAV" on December 31, 2022. Performance data current to the most recent month end may be obtained by visiting www.forumcapadvisors.com or by calling 1-303-501-8860.

(a)&nbsp;&nbsp;&nbsp;&nbsp; The Fund commenced operations on April 16, 2021. The performance is based on average annual returns.

(b)&nbsp;&nbsp;&nbsp;&nbsp; The Bloomberg U.S. Aggregate Bond Index is a market capitalization-weighted index, meaning the securities in the index are weighted according to the market size of each bond type. Most U.S. traded investment grade bonds are represented. Municipal bonds and Treasury Inflation-Protected Securities are excluded, due to tax treatment issues. The index includes Treasury securities, Government agency bonds, mortgage-backed bonds, corporate bonds, and a small amount of foreign bonds traded in U.S. Dollars. Index returns assume reinvestment of dividends. Investors may not invest in an Index directly. Unlike the Fund's returns, Index returns do not reflect any fees or expenses.

(c)&nbsp;&nbsp;&nbsp;&nbsp; The Bloomberg U.S. Corporate High Yield Bond Index measures the USD-denominated, high yield fixed-rate corporate bond market. Securities are classified as high yield if the middle rating of Moody's, Fitch and S&P is Ba1/BB+/BB+ or below. Bonds from issuers with an emerging markets country of risk, based on Bloomberg EM country definition, are excluded.

(d)&nbsp;&nbsp;&nbsp;&nbsp; The S&P 500 Index measures the performance of 500 widely held stocks in the U.S. equity market. Standard and Poor's chooses member companies for the index based on market size, liquidity and industry group representation. Included are the stocks of industrial, financial, utility, and transportation companies.

(e)&nbsp;&nbsp;&nbsp;&nbsp; The Bloomberg Barclays CMBS BBB Index measures BBB-rated market of U.S. Agency and U.S. Non-Agency conduit and fusion CMBS deals with a minimum current deal size of $300mn. The index includes both U.S. Aggregate eligible and Non-U.S. Aggregate eligible securities.

FORUM REAL ESTATE INCOME FUND<br>Portfolio Review<br> December 31, 2022<br>

Portfolio Composition\* as of December 31, 2022

---

| | |
|:---|:---|
|  Top 10 Holdings\*\* | % of<br>Net Assets |
|  Bruckner Mezzanine Loan | 14.1% |
|  DBCCRE 2014-ARCP Mortgage Trust | 9.1% |
|  BPR Trust 2022-OANA | 8.1% |
|  Royal Urban Renewal, LLC | 7.5% |
|  CSMC 2021-WEHO | 6.7% |
|  BX Commercial Mortgage Trust 2021-SOAR | 6.5% |
|  Med Trust 2021-MDLN | 6.4% |
|  Multifamily Connecticut Avenue Securities Trust 2020-01 | 5.8% |
|  VASA Trust 2021-VASA | 5.4% |
|  Trent Development – Kerf Apartments Loan | 5.1% |
|  | 74.7% |

---

____________

\*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Composition of holdings are subject to change.

\*\*&nbsp;&nbsp;&nbsp;&nbsp; Excludes money market position.

FORUM REAL ESTATE INCOME FUND<br>Schedule of Investments<br> As of December 31, 2022<br>

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Units/<br>Shares** |  | **Coupon <br>Rate <br>(%)** | **Maturity** | **Fair Value** |
|  | **PRIVATE INVESTMENTS – EQUITY — 5.1%** | **PRIVATE INVESTMENTS – EQUITY — 5.1%** |  |  |
|  | **REAL ESTATE COMMON EQUITY — 1.8%** |  |  |  |
| 40 | CRIMSON DEVCO, LLC<sup>(a),(b),(c)</sup> | N/A | N/A | $1000000 |
|  | **REAL ESTATE PREFERRED EQUITY — 3.3%** |  |  |  |
| 24 | CRIMSON PE BS, LLC<sup>(a),(b)</sup> | 11.0000: Cash: 7.5000; PIK: 3.5000 | 11/30/23 | 643750 |
| 16 | CRIMSON PE PP, LLC<sup>(a),(b)</sup> | 13.0000: Cash: 7.0000; PIK: 6.0000 | 07/01/23 | 390799 |
| 857062 | IOTA Multifamily Development<sup>(a),(b)</sup> | 12.2500: Cash 6.0000; PIK: 6.2500 | 04/01/25 | 825265 |
|  |  |  |  | 1859814 |
|  | **TOTAL PRIVATE INVESTMENTS – EQUITY<br>(Cost $2,814,647)** |  |  | 2859814 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  **Principal <br>Amount <br>($)** |  | **Spread** | **Coupon <br>Rate <br>(%)** | **Maturity** | **Fair Value** |
|  | **PRIVATE INVESTMENTS – MEZZANINE LOANS — 37.9%** |  |  |  |  |
| 103237 | Advantis MCA FV, LLC<sup>(a),(b),(d),(e)</sup> | Cash: TSFR1M + 11.90%; <br>TSFR1M floor 1.53% | 16.2000 | 07/22/25 | 103237 |
| 41140 | Advantis MCA Harbor, LLC<sup>(a),(b),(d),(e)</sup> | Cash: TSFR1M + 11.90%; <br>TSFR1M floor 3.48% | 16.2000 | 04/18/25 | 41140 |
| 8000000 | Bruckner Mezzanine Loan<sup>(a),(b),(e)</sup> | Cash: LIBOR+10%; <br>LIBOR floor 1.65% | 14.1720 | 03/31/24 | 8000000 |
| 2124324 | FCREIF Nimbus Everett<sup>(a),(b),(f),(g)</sup> | Cash: 6%, PIK: 6% | 12.0000 | 08/31/23 | 2117101 |
| 2227849 | FCREIF Van Ness<sup>(a),(b),(g),(h)</sup> | Cash: 5%, PIK: 7.5% | 12.5000 | 07/23/24 | 2179505 |
| 1520000 | Lexington So Totowa, LLC<sup>(a),(b),(e)</sup> | Cash: TSFR1M + 11.25% | 15.3740 | 12/31/23 | 1520000 |
| 4317423 | Royal Urban Renewal, LLC<sup>(a),(b),(g)</sup> | Cash: 6.5%, PIK: 5.5% | 12.0000 | 10/01/24 | 4230211 |
| 2883853 | Trent Development – Kerf Apartments Loan<sup>(a),(b),(g)</sup> | Cash: 6%, PIK: 6% | 12.0000 | 09/23/23 | 2867127 |
| 387896 | West University Gainesville Mezz, LLC<sup>(a),(b),(d),(e)</sup> | TSFR1M + 10.35%; <br>TSFR1M floor 0.25% | 14.6300 | 12/03/24 | 387896 |
|  | **TOTAL PRIVATE INVESTMENTS – MEZZANINE LOANS <br>(Cost $21,594,911)** |  |  |  | 21446217 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  **Shares** |  | **Spread** | **Coupon <br>Rate <br>(%)** | **Maturity** | **Fair Value** |
|  | **PREFERRED SHARES — 0.7%** |  |  |  |  |
|  | **REAL ESTATE INVESTMENT TRUSTS — 0.7%** |  |  |  |  |
| 6900 | Armada Hoffler Properties, Inc.<sup>(i)</sup> | N/A | 6.7500 | Perpetual | 144831 |
| 12500 | Hersha Hospitality Trust<sup>(i)</sup> | N/A | 6.5000 | Perpetual | 231250 |
|  | **TOTAL PREFERRED SHARES<br>(Cost $461,888)** |  |  |  | 376081 |

---

See accompanying notes which are an integral part of these financial statements.

FORUM REAL ESTATE INCOME FUND<br>Schedule of Investments (Continued)<br> As of December 31, 2022<br>

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  **Principal <br>Amount <br>($)** |  | **Spread** | **Coupon <br>Rate <br>(%)** | **Maturity** | **Fair Value** |
|  | **COMMERCIAL MORTGAGE-BACKED <br>SECURITIES ("CMBS") — 72.2%** | **COMMERCIAL MORTGAGE-BACKED <br>SECURITIES ("CMBS") — 72.2%** |  |  |  |
|  | **AGENCY CMBS — 16.1%** |  |  |  |  |
| 1040000 | Freddie Mac Multifamily Structured Credit Risk<sup>(e),(j)</sup> | SOFR30A + 7.7500% | 11.6777 | 01/25/51 | $980697 |
| 2626131 | FREMF 2019-KF70 Mortgage Trust<sup>(e),(j),(k)</sup> | US0001M + 6.0000% | 10.1420 | 09/25/29 | 2538268 |
| 1000000 | Multifamily Connecticut Avenue Securities Trust 2019-01<sup>(e),(j)</sup> | US0001M + 5.5000% | 9.8887 | 10/25/49 | 940084 |
| 1500000 | Multifamily Connecticut Avenue Securities Trust 2019-01<sup>(e),(j)</sup> | US0001M + 8.7500% | 13.1387 | 10/25/49 | 1401539 |
| 3500000 | Multifamily Connecticut Avenue Securities Trust 2020-01<sup>(e),(j)</sup> | US0001M + 7.5000% | 11.8887 | 03/25/50 | 3259823 |
|  |  |  |  |  | 9120411 |
|  | **NON-AGENCY CMBS — 56.1%** |  |  |  |  |
| 8540000 | BAMLL Commercial Mortgage Securities Trust 2016-ISQ<sup>(e),(j)</sup> | N/A | 0.2545 | 08/14/34 | 77810 |
| 16800000 | BAMLL Commercial Mortgage Securities Trust 2016-ISQ<sup>(e),(j)</sup> | N/A | 0.7583 | 08/14/34 | 447765 |
| 54328103 | BBCMS Trust 2015-VFM<sup>(e),(j)</sup> | N/A | 0.3054 | 03/12/36 | 387213 |
| 5000000 | BPR Trust 2022-OANA<sup>(e),(j),(k)</sup> | TSFR1M + 3.6950% | 8.0306 | 04/15/37 | 4608995 |
| 3969927 | BX Commercial Mortgage Trust 2021-SOAR<sup>(e),(j),(k)</sup> | US0001M + 3.7500% | 8.0680 | 06/15/38 | 3664477 |
| 1500000 | CSMC 2020-TMIC<sup>(e),(j),(k)</sup> | US0001M + 6.7500% | 11.5680 | 12/15/35 | 1485194 |
| 3950605 | CSMC 2021-WEHO<sup>(e),(j),(k)</sup> | US0001M + 3.9693% | 8.2873 | 04/15/23 | 3786986 |
| 5800000 | DBCCRE 2014-ARCP Mortgage Trust<sup>(e),(j)</sup> | N/A | 4.9345 | 01/10/34 | 5121644 |
| 2830957 | Extended Stay America Trust 2021-ESH<sup>(e),(j),(k)</sup> | US0001M + 3.7000% | 8.0180 | 07/15/38 | 2665431 |
| 1950000 | MBRT 2019-MBR<sup>(e),(j)</sup> | US0001M + 5.3000% | 9.6180 | 11/15/36 | 1848890 |
| 4000000 | Med Trust 2021-MDLN<sup>(e),(j),(k)</sup> | US0001M + 5.2500% | 9.5680 | 11/15/38 | 3633424 |
| 1000000 | TPI RE-REMIC Trust 2022-FRR1<sup>(j)</sup> | N/A | 0.0000 | 07/25/46 | 921424 |
| 3407000 | VASA Trust 2021-VASA<sup>(e),(j)</sup> | US0001M + 3.9000% | 8.2180 | 07/15/39 | 3042441 |
|  |  |  |  |  | 31691694 |
|  | **TOTAL COMMERCIAL<br>MORTGAGE-BACKED SECURITIES<br>(Cost $43,441,002)** |  |  |  | 40812105 |

---

See accompanying notes which are an integral part of these financial statements.

FORUM REAL ESTATE INCOME FUND<br>Schedule of Investments (Continued)<br> As of December 31, 2022<br>

---

| | | |
|:---|:---|:---|
|  **Shares** |  | **Fair Value** |
|  | **SHORT-TERM INVESTMENTS — 9.0%** |  |
|  | **MONEY MARKET FUNDS — 9.0%** |  |
| 5096900 | Fidelity Treasury Portfolio – Institutional Class, 4.07%<sup>(m)</sup> | $5096900 |
|  | **TOTAL SHORT-TERM INVESTMENTS<br>(Cost $5,096,900)** | 5096900 |
|  | **TOTAL INVESTMENTS — 124.9%<br>(Cost $73,409,348)** | 70591117 |
|  | **LIABILITIES IN EXCESS OF OTHER ASSETS — (24.9)%** | (14068835) |
|  | **TOTAL NET ASSETS — 100.0%** | $56522282 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Principal <br>Amount <br>($)** |  | **Interest <br>Rate <br>(%)** | **Maturity** | **Fair Value** |
|  | **REVERSE REPURCHASE AGREEMENTS — (24.7)%** |  |  |  |
| (3178000) | Lucid Management Reverse Repo BPR Trust | 5.6254 | 01/12/23 | $(3178000) |
| (1002000) | Lucid Management Reverse Repo CMSC 2020 | 5.5714 | 01/12/23 | (1002000) |
| (1700000) | Lucid Management Reverse Repo ESA Trust | 5.6714 | 01/12/23 | (1700000) |
| (2159000) | Royal Bank Canada Reverse Repo BX Mtg. Trust | 6.1500 | 03/17/23 | (2159000) |
| (2280000) | Royal Bank Canada Reverse Repo CMSC 2021 | 6.0200 | 01/27/23 | (2280000) |
| (1496000) | Royal Bank Canada Reverse Repo FREMF Mtg. Trust | 6.4000 | 02/10/23 | (1496000) |
| (2139000) | Royal Bank Canada Reverse Repo Med Trust | 6.3000 | 02/10/23 | (2139000) |
|  | **TOTAL REVERSE REPURCHASE AGREEMENTS<br>(Proceeds $(13954000))** |  |  | $(13954000) |

---

See accompanying notes which are an integral part of these financial statements.

FORUM REAL ESTATE INCOME FUND<br>Schedule of Investments (Continued)<br> As of December 31, 2022<br>

LLC — Limited Liability Company

PIK — Payment In Kind

LIBOR — London Inter-Bank Offered Rate

TSFR1M — 1 Month Term SOFR Secured Overnight Financing Rate

SOFR30A — United States 30 Day Average SOFR Secured Overnight Financing Rate

US0001M — ICE LIBOR USD 1 Month

REMIC — Real Estate Mortgage Investment Conduit

(a)&nbsp;&nbsp;&nbsp;&nbsp; Denotes an illiquid and restricted security that either: (a) cannot be offered for public sale without first being registered, or availing of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. The total of these illiquid and restricted securities represents 43.0% of Net Assets. The total value of these securities is $24,306,031 (see Note 5).

(b)&nbsp;&nbsp;&nbsp;&nbsp; The value of this security has been determined in good faith under policies adopted by the Board of Trustees. Level 3 securities fair valued under procedures established by the Board of Trustees, represents 43.0% of Net Assets. The total value of these securities is $24,306,031.

(c)&nbsp;&nbsp;&nbsp;&nbsp; Non-income producing security.

(d)&nbsp;&nbsp;&nbsp;&nbsp; Cash portion on interest is included in principal of loans.

(e)&nbsp;&nbsp;&nbsp;&nbsp; Variable or floating rate security, the interest of which adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. The rate shown represents the rate on December 31, 2022.

(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund's ownership of this investment is through a wholly owned subsidiary, FCREIF Nimbus Everett, LLC.

(g)&nbsp;&nbsp;&nbsp;&nbsp; Interest on loans funded from interest reserve.

(h)&nbsp;&nbsp;&nbsp;&nbsp; The Fund's ownership of this investment is through a wholly owned subsidiary, FCREIF Van Ness SFO, LLC.

(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Perpetual security. Maturity date is not applicable.

(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities are restricted and may be resold in transactions exempt from registration normally to qualified institutional buyers. The total value of these securities is $40,812,105, which represents 72.2% of total net assets of the Fund.

(k)&nbsp;&nbsp;&nbsp;&nbsp; All or a portion of this security has been pledged as collateral for securities sold under agreement to repurchase. Total market value of underlying collateral for open reverse repurchase agreements at December 31, 2022 was $20,320,308.

(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Zero-coupon bond purchased at a discount.

(m)&nbsp;&nbsp;&nbsp;&nbsp; Rate disclosed is the seven-day effective yield as of December 31, 2022.

Portfolio Composition as of December 31, 2022

---

| | |
|:---|:---|
|  Types of Holdings | % of<br>Net Assets |
|  Commercial Mortgage – Backed Securities | 72.2% |
|  Private Investments – Mezzanine Loans | 37.9% |
|  Private Investments – Equity | 5.1% |
|  Real Estate Investment Trusts | 0.7% |
|  Short-Term Investments | 9.0% |
|  Liabilities in excess of other assets | (24.9)% |
|  | 100.0% |

---

See accompanying notes which are an integral part of these financial statements.

FORUM REAL ESTATE INCOME FUND<br>**Statement of Assets and Liabilities**<br> As of December 31, 2022<br>

---

| | |
|:---|:---|
|  **Assets:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in Securities at Market Value (cost $73,409,348) | $70591117 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash | 9200 |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends and Interest Receivable | 397534 |
| &nbsp;&nbsp;&nbsp;&nbsp; Due from Adviser | 276433 |
| &nbsp;&nbsp;&nbsp;&nbsp; Receivable for Investment Securities Sold | 354647 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid Expenses and Other Assets | 55557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 71684488 |
|  **Liabilities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payable for Securities Sold Under Agreements to Repurchase (proceeds $13,954,000) | $13954000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution Payable | 428916 |
| &nbsp;&nbsp;&nbsp;&nbsp; Loan Interest Reserve | 449176 |
| &nbsp;&nbsp;&nbsp;&nbsp; Reverse Repurchase Interest Payable | 84939 |
| &nbsp;&nbsp;&nbsp;&nbsp; Subscriptions Received in Advance | 2000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued Expenses and Other Liabilities | 243175 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 15162206 |
|  Commitments and Contingencies (Note 10) |  |
|  **Net Assets** | $**56522282** |
|  **Components of Net Assets:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Paid-in Capital (no par value; unlimited shares authorized) | $61795441 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Accumulated Deficit | (5273159) |
|  **Net Assets** | $**56522282** |
|  **Net Asset Value Per Share** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Founders Class Shares (See Note 1): |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Assets | $56522282 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares of Beneficial Interest Outstanding | 6173882 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Asset Value and Redemption Price per Share | $9.16 |

---

See accompanying notes which are an integral part of these financial statements.

FORUM REAL ESTATE INCOME FUND<br>Statement of Operations<br> For the Year Ended December 31, 2022<br>

---

| | |
|:---|:---|
|  **Investment Income:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest Income | $5517576<br><sup>(1)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividend Income | 634963 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Investment Income | 6152539 |
|  **Expenses:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment Advisory Fees | 1038514 |
| &nbsp;&nbsp;&nbsp;&nbsp; Legal Fees | 700675 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest Expense | 465836 |
| &nbsp;&nbsp;&nbsp;&nbsp; Audit and Tax Fees | 184085 |
| &nbsp;&nbsp;&nbsp;&nbsp; Chief Compliance Officer and Principal Financial Officer Fees | 108529 |
| &nbsp;&nbsp;&nbsp;&nbsp; Administration Fees | 99021 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trustees' Fees | 85059 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shareholder Reporting Fees | 72243 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other Expenses | 60007 |
| &nbsp;&nbsp;&nbsp;&nbsp; Transfer Agent Fees | 33448 |
| &nbsp;&nbsp;&nbsp;&nbsp; Offering Fees | 33170 |
| &nbsp;&nbsp;&nbsp;&nbsp; Registration Fees | 24588 |
| &nbsp;&nbsp;&nbsp;&nbsp; Custody Fees | 16502 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Expenses | 2921677 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses Waived by Adviser | (1038514) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses Reimbursed by Adviser | (164047) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Expenses | 1719116 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net Investment Income** | 4433423 |
|  **Realized and Unrealized Loss on Investments:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Realized Loss from Investments | (542132) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Depreciation on Investments | (3660820) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net Realized and Unrealized Loss** | (4202952) |
|  **Net Increase in Net Assets Resulting From Operations** | $230471 |

---

____________

(1)&nbsp;&nbsp;&nbsp;&nbsp;Includes paid-in kind interest of $1,734,734.

See accompanying notes which are an integral part of these financial statements.

FORUM REAL ESTATE INCOME FUND<br>Statements of Changes in Net Assets<br>

---

| | | |
|:---|:---|:---|
|  | **For the Year <br>Ended<br>December 31,<br>2022** | **For the Period <br>Ended<br>December 31,<br>2021**<sup>(1)</sup> |
|  **Increase (Decrease) in Net Assets from:** |  |  |
|  **Operations:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Investment Income | $4433423 | $1498323 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Realized Gain (Loss) from Investments | (542132) | 1065303 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Change in Unrealized Depreciation on Investments | (3660820) | (568243) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net Increase in Net Assets Resulting From Operations** | 230471 | 1995383 |
|  **Distributions to Shareholders:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Founders Shares | (4452726) | (3046287) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Distributions to Shareholders** | (4452726) | (3046287) |
|  **Beneficial Interest Transactions:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds From Shares Issued: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Founders Shares | 7868186 | 59562737<br><sup>(2)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Distributions Reinvested: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Founders Shares | 554671 | 224727 |
| &nbsp;&nbsp;&nbsp;&nbsp; Redemptions: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Founders Shares | (5357196) | (1157684) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net Increase Fromm Beneficial Interest Transactions** | 3065661 | 58629780 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Increase (Decrease) In Net Assets** | (1156594) | 57578876 |
|  **Net Assets:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of Period | 57678876 | 100000<br><sup>(3)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; End of Period | $56522282 | $57678876 |
|  **Share Activity:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Shares Sold: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Founders Shares | 825908 | 5948808 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shares Reinvested: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Founders Shares | 59129 | 22571 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shares Redeemed: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Founders Shares | (574883) | (117651) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net Increase in Shares of Beneficial Interest Outstanding** | 310154 | 5853728 |

---

____________

(1)&nbsp;&nbsp;&nbsp;&nbsp; The Fund commenced operations April 16, 2021.

(2)&nbsp;&nbsp;&nbsp;&nbsp; Includes $50,139,737 of paid-in capital received from in-kind subscription effective as of the close of business on April 30, 2021. The total value received of $50,139,737 from this non-taxable event represented $36,617,522 in securities cost, $1,410,832 in net unrealized appreciation, $20,616,034 in cash, assumed liabilities of $8,529,000 in reverse repurchase agreements, and $24,349 in other assets and liabilities in exchange for 5,013,974 shares of Founders Shares (formerly Class I).

(3)&nbsp;&nbsp;&nbsp;&nbsp; The Investment Adviser made an initial Founders Shares (formerly Class I) purchase of 10,000 shares for $100,000 at a $10.00 net asset value on April 16, 2021.

See accompanying notes which are an integral part of these financial statements.

FORUM REAL ESTATE INCOME FUND<br>Financial Highlights<br> Founders Shares<br>

*Per share operating performance.*

*For a capital share outstanding throughout each period.*

---

| | | |
|:---|:---|:---|
|  | **For the Year <br>Ended<br>December 31, <br>2022** | **For the Period Ended<br>December 31, <br>2021**<sup>(</sup><sup>1)</sup> |
|  **Net Asset Value, Beginning of Period** | $9.84 | $10.00 |
|  **From Operations:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Investment Income<sup>(2)</sup> | 0.72 | 0.27 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Realized and Unrealized Gain (Loss) on Investments | (0.68) | 0.10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total From Operations | 0.04 | 0.37 |
|  **Less Distributions:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Investment Income | (0.72) | (0.40) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Realized Gains |  | (0.13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Distributions | (0.72) | (0.53) |
|  **Net Asset Value, End of Period** | $9.16 | $9.84 |
|  **Total Return**<sup>(3),(4)</sup> | 0.46% | 3.70% |
|  **Ratios and Supplemental Data:** |  |  |
|  Net assets, end of period (in 000's) | $56522 | $57679 |
|  Including interest expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ratio of gross expenses to average net assets | 4.98% | 4.18%<sup>(5)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ratio of net expenses to average net assets | 2.93% | 2.55%<sup>(5)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ratio of net investment income to average net assets | 7.55% | 3.94%<sup>(5)</sup> |
|  Excluding interest expense: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Ratio of gross expenses to average net assets | 4.19% | 3.88%<sup>(5)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ratio of net expenses to average net assets<sup>(6)</sup> | 2.14% | 2.25%<sup>(5)</sup> |
| &nbsp;&nbsp;&nbsp;&nbsp; Ratio of net investment income to average net assets | 8.34% | 4.24%<sup>(5)</sup> |
|  Portfolio turnover rate<sup>(3)</sup> | 30% | 49% |

---

____________

(1)&nbsp;&nbsp;&nbsp;&nbsp;The Fund commenced operations April 16, 2021.

(2)&nbsp;&nbsp;&nbsp;&nbsp;Based on average shares outstanding for the period.

(3)&nbsp;&nbsp;&nbsp;&nbsp;Not annualized for periods of less than one year.

(4)&nbsp;&nbsp;&nbsp;&nbsp;Total returns are historical in nature and assume changes in share price, reinvestment of dividends and capital gains distributions, if any, and excludes the effect of sales charges. Had the Adviser not waived expenses, total returns would have been lower.

(5)&nbsp;&nbsp;&nbsp;&nbsp;Annualized.

(6)&nbsp;&nbsp;&nbsp;&nbsp;Effective September 29, 2022, the share expense cap was changed from 2.25% to 1.80% of average net assets.

See accompanying notes which are an integral part of these financial statements.

FORUM REAL ESTATE INCOME FUND<br>Statement of Cash Flows<br> For the Year Ended December 31, 2022<br>

---

| | |
|:---|:---|
|  **Increase/(Decrease) in Cash:** |  |
|  **Cash Flows Provided by (Used in) Operating Activities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Increase in Net Assets Resulting from Operations | $230471 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Adjustments to Reconcile Net Increase (Decrease) in Net Assets Resulting from Operations to Net Cash Provided by (Used in) Operating Activities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchases of Long-Term Portfolio Investments | (18333130) |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from Sales of Long-Term Portfolio Investments | 20666379 |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchases of Short-Term Investments, Net | (877956) |
| &nbsp;&nbsp;&nbsp;&nbsp; Change in Unrealized Depreciation on Investments | 3660820 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Realized Loss on Investments | 542132 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Amortization on Investments | (5986) |
| &nbsp;&nbsp;&nbsp;&nbsp; Return of Capital Dividends Received | 38243 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payment In Kind Interest | (1734734) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net Paydown Losses | 17229 |
| &nbsp;&nbsp;&nbsp;&nbsp; Loan Origination Proceeds | 11440 |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase in Due from Advisor Receivable | (276433) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase in Dividends and Interest Receivable | (273590) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase in Prepaid Expenses and Other Assets | (9379) |
| &nbsp;&nbsp;&nbsp;&nbsp; Decrease in Accrued Advisory Fees | (88956) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase in Reverse Repurchase Interest Payable | 61185 |
| &nbsp;&nbsp;&nbsp;&nbsp; Decrease in Loan Interest Reserve | (254659) |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase in Accrued Expenses and Other Liabilities | 77077 |
|  **Net Cash Provided by (Used in) Operating Activities** | 3450153 |
|  **Cash Flows Provided by (Used in) Financing Activities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from Sales of Shares | 7716311 |
| &nbsp;&nbsp;&nbsp;&nbsp; Payment for Redemption of Shares | (6514880) |
| &nbsp;&nbsp;&nbsp;&nbsp; Dividends Paid to Shareholders, Net of Reinvestments and Change in Distribution <br>Payable | (4469384) |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from Reverse Repurchase Agreements | 120715000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales from Reverse Repurchase Agreements | (120888000) |
|  **Net Cash Provided by (Used in) Financing Activities** | (3440953) |
|  Net Increase in Cash | 9200 |
|  Cash at Beginning of Year |  |
|  Cash at End of Year | $9200 |
|  **Supplemental Non-Cash Information:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest Paid | $404651 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest Reserve Withheld from Funding of Loans | $217280 |
|  Reinvested dividends | $554671 |

---

See accompanying notes which are an integral part of these financial statements.

FORUM REAL ESTATE INCOME FUND<br>Notes to the Financial Statements<br> December 31, 2022<br>

**1. ORGANIZATION**

Forum Real Estate Income Fund (the "Fund"), formerly Forum CRE Income Fund, was organized as a Delaware statutory trust on April 5, 2021, and is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a non-diversified closed-end management investment company. The Fund operates as an interval fund pursuant to Rule 23c-3 under the 1940 Act. The primary investment objectives of the Fund are to maximize current income and preserve investor capital, with a secondary focus on long-term capital appreciation. The Fund, which commenced operations on April 16, 2021, currently has one class of shares (Founders Shares, formerly named Class I prior to September 29, 2022). The Fund has established three classes of shares: Founders Class, Class W Shares and Class I Shares. Only Founders Shares have been offered and issued to date. Class W and Class I Shares will not be offered to investors until the Fund has received an exemptive order permitting the multi-class structure (see Note 11). Simultaneous with the Fund beginning to accept offers to purchase shares, Forum Integrated Income Fund I, L.P. (the "Predecessor Fund"), reorganized with and transferred substantially all its assets and liabilities into the Fund. Forum Capital Advisers LLC, an investment adviser registered under the Investment Advisers Act of 1940 (the "Advisers Act"), as amended, serves as the Fund's investment adviser (the "Adviser"). Janus Henderson Investors US LLC ("Janus"), an investment adviser registered under the Advisers Act, serves as the Sub-Adviser to the Fund.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

The following is a summary of significant accounting policies followed by the Fund in preparation of its financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standard Codification ("ASC") Topic 946 "Financial Services — Investment Companies".

**Securities Valuation** — Common and preferred equity securities listed on an exchange are valued at the last reported sale price at the close of the regular trading session of the primary exchange on the business day the value is being determined. Fixed-income securities, having a remaining maturity of greater than 60 days, are typically valued at the evaluated prices formulated by an independent pricing service. Each security type has a primary and secondary pricing source. If neither the primary nor any secondary pricing source can provide a price or logic to determine a price, the Valuation Designee will provide a fair value price for the security.

**Fair Valuation Process** — The Board has designated the Adviser as the "valuation designee" pursuant to the provisions of Rule 2a-5 under the 1940 Act (the "*Valuation Designee*"). The Valuation Designee conducts the valuation of the Fund's investments at all times consistent with GAAP and the 1940 Act and pursuant to policies and procedures adopted by the Adviser and approved by the Board. The Valuation Designee has established a Valuation Committee, which assists in carrying out the valuation of Fund holdings and performs fair value determinations pursuant to the standards and procedures set forth in such policies and procedures. The Valuation Designee may consult with representatives from the Fund's outside legal counsel or other third-party consultants in their discussions and deliberations.

---

| |
|:---|
| FORUM REAL ESTATE INCOME FUND<br>Notes to the Financial Statements (Continued)<br> December 31, 2022 |
| **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (Continued)** |

---

Fund investments are valued in accordance with ASC Topic 820, Fair Value Measurements and Disclosure ("*ASC Topic 820*"), issued by the FASB, which defines fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the applicable measurement date.

Securities traded on one or more of the U.S. national securities exchanges, the Nasdaq Stock Market or any foreign stock exchange are valued at the close of the regular trading session of the primary exchange on the business day the value is being determined. Fixed-income securities, having a remaining maturity of greater than 60 days, are typically valued at the evaluated prices formulated by an independent pricing service.

In validating market quotations or evaluated prices, the Valuation Designee considers different factors such as the source and the nature of the quotation in order to determine whether the quotation represents fair value. The Valuation Designee makes use of reputable financial information providers in order to obtain the relevant quotations.

Due to the inherent uncertainty in determining the fair value of investments for which market values are not readily available, the fair values of these investments may fluctuate from period to period. In addition, such fair value may differ materially from the values that may have been used had a ready market existed for such investments and may significantly differ from the value ultimately realized by the Fund.

Assets and liabilities initially expressed in foreign currencies will be converted into U.S. Dollars using foreign exchange rates provided by a recognized pricing service.

Investments in private financial instruments or securities for which no readily available pricing is available shall be valued by an independent reputable third-party service provider on a periodic basis. Certain private equity and private mezzanine loans are valued using a market yield analysis derived from evaluated market spreads. Certain private equity investments are valued based on a liquidation preference value as provided by the equity sponsor.

U.S. GAAP establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurement. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of input are:

**Level 1** — Unadjusted quoted prices in active markets for identical and/or similar assets and liabilities that the Fund has the ability to access at the measurement date.

**Level 2** — Other significant observable inputs other than quoted prices included in Level 1 for the asset or liability, either directly or indirectly. These inputs may include quoted prices for similar investments or identical investments in an active market, interest rates, prepayment speeds, credit risk, yield curves, default rates and similar data.

**Level 3** — Significant unobservable inputs for the asset or liability, to the extent relevant observable inputs are not available, representing the Fund's own assumptions about the assumptions a market participant would use in valuing the asset or liability, and would be based on the best information available.

---

| |
|:---|
| FORUM REAL ESTATE INCOME FUND<br>Notes to the Financial Statements (Continued)<br> December 31, 2022 |
| **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (Continued)** |

---

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those investments. The following tables summarize the inputs used as of December 31, 2022, for the Fund's assets measured at fair value:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Assets** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Real Estate Investment Trusts | $376081 | $— | $— | $376081 |
|  Private Investments – Equity |  |  | 2859814 | 2859814 |
|  Commercial Mortgage – Backed Securities |  | 40812105 |  | 40812105 |
|  Private Investments – Mezzanine Loans |  |  | 21446217 | 21446217 |
|  Short-Term Investments | 5096900 |  |  | 5096900 |
|  | $5472981 | $40812105 | $24306031 | $70591117 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Liabilities** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Reverse Repurchase Agreements | $— | $13954000 | $— | $13954000 |
|  | $— | $13954000 | $— | $13954000 |

---

There were no transfers between levels during the current period presented. It is the Fund's policy to record transfers into or out of levels at the end of the reporting period.

The following table summarizes the valuation techniques and significant unobservable inputs used for the Fund's investments that are categorized in Level 3 of the fair value hierarchy as of December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  **Level 3 Investments** | **Fair Value <br>as of <br>December 31, <br>2022** | **Valuation <br>Technique** | **Unobservable <br>Inputs** | **Range of<br>Inputs/Weighted<br>Average** | **Impact to <br>Valuation <br>from an <br>Increase in <br>Input** |
|  Private Investments – Equity | $1000000 | Recent Transaction Price  | N/A  | N/A  | N/A |
|  Private Investments – Equity | 1034549  | Liquidation Preference  | N/A  | N/A  | N/A |
|  Private Investments – Equity | 825265  | Market Yield Analysis | Selected Market Spreads  | 14.29%/14.29%  | Decrease |
|  Private Investments – Mezzanine Loans | 10052273  | Recent Transaction Price  | N/A  | N/A  | N/A |
|  Private Investments – Mezzanine Loans | 11393944  | Market Yield Analysis  | Selected Market Spreads | 12.61% to 13.50%/13.16%  | Decrease |
|  Total Level 3 Investments | $24306031 |  |  |  |  |

---

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| |
|:---|
| FORUM REAL ESTATE INCOME FUND<br>Notes to the Financial Statements (Continued)<br> December 31, 2022 |
| **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (Continued)** |

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The following is a reconciliation of assets in which Level 3 inputs were used in determining value:

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Beginning <br>balance <br>January 1, <br>2022** | **Transfers <br>into <br>Level 3 <br>during the <br>period** | **Transfers <br>out of <br>Level 3 <br>during the <br>period** | **Purchases** | **Sales** | **Net <br>realized <br>gain <br>(loss)** | **Accretion of <br>Discount <br>(Amortization <br>of Premium)** | **Return of <br>Capital** | **Change in net <br>unrealized <br>appreciation <br>(depreciation)** | **Ending <br>balance<br>December 31, <br>2022** |
|  Private Investments – Equity | $6171000 | $— | $— | $851947 | $(3850000) | $— | $943 | $(38243) | $(275833) | $2859814 |
|  Private Investments – Mezzanine Loans | 16408031 |  |  | 7260582 | (2082691) |  | 8988 |  | (148693) | 21446217 |
|  | $22579031 | $— | $— | $8112529 | $(5932691) | $— | $9931 | $(38243) | $(424526) | $24306031 |

---

The total change in unrealized depreciation included in the Statement of Operations attributable to Level 3 investments still held on December 31, 2022, is $(134,276).

*Payable for securities sold under agreements to repurchase* — The Fund may use leverage to provide additional funds to support its investment activities. The Fund primarily intends to enter into financing transactions using reverse repurchase agreements. The type of repurchase agreement held by the Fund on December 31, 2022, involves the purchase of a security by the Fund and a simultaneous agreement by the seller (generally a bank or dealer) to repurchase the security from the Fund at a specified date or upon demand. This technique offers a method of earning income on idle cash. These securities involve the risk that the seller will fail to repurchase the security, as agreed. In that case, the Fund will bear the risk of market value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security.

If a reverse repurchase agreement counterparty defaults, the Fund may suffer time delays and incur costs or possible losses in connection with the disposition of the securities underlying the reverse repurchase agreement. In the event of a default, instead of the contractual fixed rate of return, the rate of return to the Fund will depend on intervening fluctuations of the market values of the underlying securities and the accrued interest thereon. In such an event, the Fund would have rights against the counterparty for breach of contract with respect to any losses resulting from those market fluctuations.

Reverse Repurchase agreements outstanding as of December 31, 2022, were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Reverse Repurchase Agreements** | **Reverse Repurchase Agreements** | **Reverse Repurchase Agreements** | **Reverse Repurchase Agreements** | **Reverse Repurchase Agreements** | **Reverse Repurchase Agreements** |
|  | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** | **Remaining Contractual Maturity of the Agreements** |
|  **Counterparty** | **Overnight<br>and <br>Continuous** | **Up to <br>30 days** | **30–90 <br>days** | **Greater <br>than <br>90 days** | **Total** | **Rate** |
|  Lucid Management |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset backed securities | $— | $1002000 | $— | $— | $1002000 | 5.57% |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset backed securities |  | 3178000 |  |  | 3178000 | 5.63% |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset backed securities |  | 1700000 |  |  | 1700000 | 5.67% |
|  Royal Bank of Canada |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset backed securities |  | 2280000 |  |  | 2280000 | 6.02% |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset backed securities |  |  | 1496000 |  | 1496000 | 6.40% |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset backed securities |  |  | 2159000 |  | 2159000 | 6.15% |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset backed securities |  |  | 2139000 |  | 2139000 | 6.30% |
|  Total repurchase agreements | $— | $8160000 | $5794000 | $— | $13954000 |  |

---

*Cash* — Includes cash maintained in deposit with a high-quality financial institution.

---

| |
|:---|
| FORUM REAL ESTATE INCOME FUND<br>Notes to the Financial Statements (Continued)<br> December 31, 2022 |
| **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (Continued)** |

---

*Security Transactions and Investment Income* — Investment security transactions are accounted for on a trade date basis. Cost is determined and gains and losses are based upon the specific identification method for both financial statement and federal income tax purposes. Interest income is recorded on the accrual basis. Purchase discounts and premiums on securities are accreted and amortized over the life of the respective securities using the effective interest method.

Loan origination income is charged to the borrowers during loan originations. This income is received at the time of closing and then deferred to be recognized as non-interest income over the term of the loan. For the year ended December 31, 2022, the Fund earned loan origination income of $726 and has $24,915 of unearned loan origination income.

*Federal Income Taxes* — The Fund has elected to be taxed as a REIT. The Fund's qualification and taxation as a REIT depend upon the Fund's ability to meet on a continuing basis, through actual operating results, certain qualification tests set forth in the U.S. federal tax laws. Those qualification tests involve the percentage of income that the Fund earns from specified sources, the percentage of the Fund's assets that falls within specified categories, the diversity of the ownership of the Fund's shares, and the percentage of the Fund's taxable income that the Fund distributes. No assurance can be given that the Fund will in fact satisfy such requirements for any taxable year. If the Fund qualifies as a REIT, the Fund generally will be allowed to deduct dividends paid to shareholders and, as a result, the Fund generally will not be subject to U.S. federal income tax on that portion of the Fund's ordinary income and net capital gain that the Fund annually distributes to shareholders, as long as the Fund meets the minimum distribution requirements under the Code. The Fund intends to make distributions to shareholders on a regular basis as necessary to avoid material U.S. federal income tax and to comply with the REIT distribution requirements.

Management has analyzed the Fund's tax positions taken on income tax returns for all open tax years and has concluded that as of December 31, 2022, no provision for income tax is required in the Fund's financial statements. The Fund's federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue. The Fund's 2021 and 2022 tax years are open to examination as of December 31, 2022.

*Reclassification* — GAAP requires that certain components of net assets be reclassified to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset value per share. During the current year, offering costs of $33,170 were amortized for book purposes but capitalized for tax purposes.

*Distribution to Shareholders* — Distributions from net investment income of the Fund, if any, are declared and paid on a monthly basis. Distributions of net realized gains, if any, are declared annually. Distributions to shareholders of the Fund are recorded on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP. For tax purposes, a distribution that for purposes of GAAP is composed of return of capital and net investment income may be subsequently re-characterized to also include capital gains. Shareholders will be informed of the tax characteristics of the distributions after the close of the 2022 fiscal year.

*Indemnification* — The Fund indemnifies its officers and Trustees for certain liabilities that may arise from the performance of their duties to the Fund. Additionally, in the normal course of business, the Fund enters into contracts that contain a variety of representations and warranties and which provide general indemnities. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, management of the Fund expects the risk of loss due to these warranties and indemnities to be remote.

---

| |
|:---|
| FORUM REAL ESTATE INCOME FUND<br>Notes to the Financial Statements (Continued)<br> December 31, 2022 |
| **2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – (Continued)**  |

---

*Offering Costs* — Offering costs incurred by the Fund are treated as deferred charges until operations commenced and thereafter are being amortized over a 12-month period using the straight-line method. During the year ended December 31, 2022, $33,170 of offering costs were expensed subject to the Fund's Expense Limitation Agreement.

3. INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH RELATED PARTIES

The business activities of the Fund are overseen by the Board, which is responsible for the overall management of the Fund.

Prior to September 29, 2022, as compensation for its services, the Fund paid to the Adviser a monthly advisory fee at an annual rate of 1.50% of its average monthly Managed Assets during such period. "Managed Assets" means the total assets of the Fund (including any assets attributable to money borrowed for investment purposes) minus the sum of the Fund's accrued liabilities (other than money borrowed for investment purposes). Effective September 29, 2022, the Fund paid the Adviser a monthly advisory fee at an annual rate of 1.50% of its average monthly Net Assets. Janus acts as the Fund's Sub-Adviser and assists the Adviser in identifying and evaluating potential investments for the Fund. Any additional sub-adviser chosen by the Investment Adviser will be paid by the Adviser based only on the portion of Fund assets allocated to any such sub-adviser by the Adviser. Janus is paid by the Adviser, and not by the Fund. For the year ended December 31, 2022, the Adviser earned advisory fees of $1,038,514.

Prior to September 29, 2022, the Adviser and the Fund had entered into an Expense Limitation Agreement (the "Agreement") pursuant to which the Adviser has contractually agreed to waive its fees and to defer reimbursement for the ordinary operating expenses of the Fund (including all expenses necessary or appropriate for the operation of the Fund and including the Adviser's investment advisory or management fee detailed in the Investment Management Agreement, any other expenses described in the Investment Management Agreement, but does not include any front-end or contingent deferred loads, brokerage fees and commissions, acquired fund fees and expenses, borrowing costs (such as interest and dividend expense on securities sold short), taxes and extraordinary expenses such as litigation), to the extent that such expenses exceed 2.25% per annum of the Fund's average monthly net assets attributable to the Founders Shares. Effective September 29, 2022, the Adviser and the Fund entered into a new Expense Limitation Agreement which lowered the expense limitation to the extent that such expenses do not exceed 1.80% per annum of the Fund's average monthly net assets attributable to the Founders Shares. Contractual waivers and expense payments may be recaptured by the Adviser to the extent that overall expenses fall below the lesser of the expense limitation then in place or in place at the time of the waiver, within three years of when the amounts were waived.

In consideration of the Adviser's agreement to limit the Fund's expenses, the Fund has agreed to repay the Adviser in the amount of any fees waived and Fund expenses paid or absorbed, subject to the limitations that: (1) the reimbursement for fees and expenses will be made only if payable within three years from the date on which they were incurred; and (2) the reimbursement may not be made if it would cause the Expense Limitation in effect at the time of the waiver or currently in effect, whichever is lower, to be exceeded. During the year ended December 31, 2022, the Adviser waived and reimbursed expenses of $1,202,561 and did not recoup any expenses. As of December 31, 2022, $1,202,561 is subject to recoupment through December 31, 2025, and $618,712 is subject to recoupment through December 31, 2024.

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| |
|:---|
| FORUM REAL ESTATE INCOME FUND<br>Notes to the Financial Statements (Continued)<br> December 31, 2022 |
| 3. INVESTMENT ADVISORY AGREEMENT AND TRANSACTIONS WITH RELATED PARTIES **– (Continued)** |

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In addition, certain affiliates provide services to the Fund as follows:

*<u>Foreside Financial Services, LLC ("Distributor")</u> —* Foreside acts as Distributor to the Fund on a best-efforts basis, subject to various conditions, pursuant to a Distribution Agreement (the "Distribution Agreement") between the Fund and the Distributor. The Distributor may enter into agreements with selected broker-dealers, banks, or other financial intermediaries for distribution of shares of the Fund. For these services, the Distributor receives an annual fee from the Adviser. The Adviser and/or its affiliates may make payments to selected affiliated or unaffiliated third parties (including the parties who have entered into sub-distribution agreements with the Distributor) from time to time in connection with the sale of Shares and/or the services provided to common shareholders. These payments will be made by the Adviser and/or its affiliates and will not represent an additional charge to the Fund.

A Trustee and certain officers of the Fund are affiliated with the Adviser.

In consideration of the services rendered by those Trustees who are not "interested persons" (as defined in Section 2(a)(19) of the 1940 Act) of the Trust ("Independent Trustees"), the Fund pays each Independent Trustee an annual retainer in the amount of $35,000 payable quarterly. Trustees that are interested persons will not be compensated by the Fund. The Trustees do not receive any pension or retirement benefits.

Employees of PINE Advisor Solutions, LLC ("PINE") serve as officers of the Fund. PINE receives a monthly fee for the services provided to the Fund. The Fund also reimburses PINE for certain out-of-pocket expenses incurred on the Fund's behalf.

**4.** INVESTMENT TRANSACTIONS

The cost of purchases including payment in kind interest and proceeds from sales and paydowns of investment securities, other than U.S. Government securities and short-term investments, for the year ended December 31, 2022, amounted to $20,285,144 and $21,021,026, respectively.

**5.** RESTRICTED SECURITIES

Restricted securities include securities that have not been registered under the Securities Act of 1933, as amended, and securities that are subject to restrictions on resale. The Fund may invest in restricted securities that are consistent with the Fund's investment objective and investment strategies. Investments in restricted securities are valued at net asset value as a practical expedient for fair value, or fair value as determined in good faith in accordance with procedures adopted by the Board. It is possible that the estimated value may differ significantly from the amount that might ultimately be realized in the near term, and the difference could be material.

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| |
|:---|
| FORUM REAL ESTATE INCOME FUND<br>Notes to the Financial Statements (Continued)<br> December 31, 2022 |
| **5.** RESTRICTED SECURITIES – **(Continued)** |

---

As of December 31, 2022, the Fund invested in the following restricted securities:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Original <br>Acquisition <br>Date** | **Principal/<br>Units** | **Cost**  | **Value**  | **Unfunded <br>Commitments**  | **% of <br>Net <br>Assets** |
|  Advantis MCA FV, LLC | 7/22/2022 | 103237 | $103239 | $103237 | $1132322 | 0.2% |
|  Advantis MCA Harbor, LLC | 10/18/2022 | 41140 | 30327 | 41140 | 1102286 | 0.1% |
|  Bruckner Mezzanine Loan | 8/2/2021 | 8000000 | 8000000 | 8000000 |  | 14.1% |
|  CRIMSON Devco, LLC | 12/17/2021 | 40 | 1000000 | 1000000 |  | 1.8% |
|  CRIMSON PE BS, LLC | 12/9/2020 | 24 | 600000 | 643750 |  | 1.1% |
|  CRIMSON PE PP, LLC | 9/15/2021 | 16 | 361757 | 390799 |  | 0.7% |
|  FCREIF Nimbus Everett | 8/31/2021 | 2124324 | 2124324 | 2117101 | 58409 | 3.7% |
|  FCREIF Van Ness | 10/13/2021 | 2227849 | 2227849 | 2179505 | 104088 | 3.9% |
|  IOTA Multifamily Development | 3/31/2022 | 857062 | 852890 | 825265 | 97847 | 1.4% |
|  Lexington So Totowa, LLC | 5/20/2022 | 1520000 | 1520000 | 1520000 |  | 2.7% |
|  Royal Urban Renewal, LLC | 9/29/2021 | 4317423 | 4317423 | 4230211 | 321742 | 7.5% |
|  Trent Development – Kerf Apartments Loan | 9/23/2021 | 2883853 | 2883853 | 2867127 | 244847 | 5.1% |
|  West University Gainesville Mezz, LLC | 5/18/2022 | 387896 | 387896 | 387896 | 837360 | 0.7% |
|  |  |  | $24409558 | $24306031 | $3898901 | 43.0% |

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**6. AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION**

The Statement of Assets and Liabilities represents cost for financial reporting purposes. Aggregate cost for federal tax purposes is $73,409,348 and differs from fair value by net unrealized appreciation (depreciation) of securities as follows:

---

| | |
|:---|:---|
|  Unrealized Appreciation | $266741 |
|  Unrealized Depreciation | (3084972) |
|  Net Unrealized Depreciation | $(2818231) |

---

**7. RISKS AND UNCERTAINTIES**

**<u>General Risks of Investing in the Fund</u>**

*Investment and Market Risk*

The market price of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably. Securities may decline in value due to factors affecting securities markets generally or particular industries represented in the securities markets. The value of a security may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates, adverse changes to credit markets or adverse investor sentiment generally. The value of a security may also decline due to factors that affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. During a general downturn in the securities markets, multiple asset classes may decline in value simultaneously. Equity securities generally have greater price volatility than fixed income securities. Credit ratings downgrades may also negatively affect securities held by the Fund. Even when markets perform well, there is no assurance that the investments held by the Fund will increase in value along with the broader market.

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| |
|:---|
| FORUM REAL ESTATE INCOME FUND<br>Notes to the Financial Statements (Continued)<br> December 31, 2022 |
| **7. RISKS AND UNCERTAINTIES – (Continued)** |

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The success of the Fund's investment activities will be affected by these general economic and market conditions. Additionally, environmental and public health risks, such as natural disasters or pandemics/epidemics, or widespread fear that such events may occur, may impact markets adversely and cause market volatility in both the short- and long-term. The U.S. stock and credit markets have experienced price volatility, dislocations, and liquidity disruptions in the past. Any future disruptions in the capital and credit markets will adversely affect the Fund's ability to identify suitable investments, obtain financing and exit investments at the desired times and on terms favorable to the Fund, which in turn may adversely affect the Fund's financial condition, results of operations, cash flow and ability to make distributions to shareholders.

Market risk also includes the risk that geopolitical events will disrupt the economy on a national or global level. Russia's military invasion of Ukraine in February 2022, the resulting responses by the United States and other countries, and the potential for wider conflict could increase volatility and uncertainty in the financial markets and adversely affect regional and global economies. The United States and other countries have imposed broad-ranging economic sanctions on Russia and certain Russian individuals, banking entities and corporations as a response to its invasion of Ukraine. The extent and duration of Russia's military actions and the repercussions of such actions (including any retaliatory actions or countermeasures that may be taken by those subject to sanctions) are impossible to predict, but could result in significant market disruptions, including in the oil and natural gas markets, and may negatively affect global supply chains, inflation and global growth. These and any related events could significantly impact the Fund's performance and the value of an investment in the Fund, even though the Fund will not have any direct exposure to Russian issuers or issuers in other countries affected by the invasion.

The Fund does not know how long the U.S. economy, financial markets and real estate markets and operations may be affected by these events and cannot predict the effects of these events or similar events in the future on the U.S. economy, financial markets and real estate markets and operations. Those events also could have an acute effect on individual issuers or tenants or related groups of issuers or tenants. These risks also could adversely affect individual properties and investments, interest rates, secondary trading, risk of tenant defaults, decreased occupancy at our properties, credit risk, inflation, deflation and other factors that could adversely affect the Fund's investments, net investment income and the net asset value of the Shares.

<u>**<u>Risks of Investing in Real Estate-Related Investments</u>**</u>

*General Risks Relating to Real Estate-Related Debt and Preferred Equity Investments*

The Fund expects to invest in a variety of real estate-related debt and preferred equity investments and will be subject to a variety of risks in connection with such investments. Any deterioration of real estate fundamentals generally, and in the United States in particular, could negatively impact the Fund's performance by making it more difficult for entities in which the Fund invests to satisfy their debt payment obligations, increasing the default risk applicable to such borrowers and/or making it relatively more difficult for the Fund to generate attractive risk-adjusted returns. It is impossible to predict the degree to which economic conditions generally, and the conditions for real estate investing in particular, will improve or will deteriorate. Declines in the performance of the U.S. and global economies, the commercial real estate markets or in the commercial real estate debt markets could have a material adverse effect on the Fund's investment strategy and performance.

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| |
|:---|
| FORUM REAL ESTATE INCOME FUND<br>Notes to the Financial Statements (Continued)<br> December 31, 2022 |
| **7. RISKS AND UNCERTAINTIES – (Continued)** |

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*Risks Relating to CRE Debt Instruments*

CRE debt instruments (e.g., mortgages, mezzanine loans and preferred equity) that are secured by commercial real estate, are subject to risks of delinquency and foreclosure and risks of loss that are greater than similar risks associated with loans made on the security of single-family residential properties. The ability of a borrower to repay a loan secured by an income-producing property typically is dependent primarily upon the successful operation of the property rather than upon the existence of independent income or assets of the borrower. If the net operating income of the property is reduced, the borrower's ability to repay the loan may be impaired. Net operating income of an income-producing property can be affected by, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;tenant mix and tenant bankruptcies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;success of tenant businesses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;property management decisions, including with respect to capital improvements, particularly in older building structures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;property location and condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;competition from other properties offering the same or similar services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;changes in laws that increase operating expenses or limit rents that may be charged;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any need to address environmental contamination at the property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;changes in national, regional, or local economic conditions, real estate values and/or rental occupancy rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;changes in interest rates and in the state of the debt and equity capital markets, including diminished availability or lack of debt financing for commercial real estate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;changes in real estate tax rates and other operating expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;changes in governmental rules, regulations and fiscal policies, including environmental regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;seasonal and weather-related fluctuations in demand affecting the performance of certain properties, including real estate used in the hospitality industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;decline in demand for real estate from increased use of e-commerce or other technological advances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;acts of God, terrorism, social unrest and civil disturbances, which may decrease the availability of or increase the cost of insurance or result in uninsured losses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;adverse changes in zoning laws.

In addition, the Fund may be exposed to the risk of judicial proceedings with borrowers and entities in which it invests, including bankruptcy or other litigation, as a strategy to avoid foreclosure or enforcement of other rights by the Fund as a lender or an investor. In the event that any of the properties or entities underlying or collateralizing the Fund's CRE Debt Investments experiences any of the foregoing events or occurrences, the value of, and return on, such investments could be materially and adversely affected.

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| |
|:---|
| FORUM REAL ESTATE INCOME FUND<br>Notes to the Financial Statements (Continued)<br> December 31, 2022 |
| **7. RISKS AND UNCERTAINTIES – (Continued)** |

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*Risks Related to Investments in Publicly Traded REITs*

The Fund's investments in the securities of publicly traded REITs will be subject to a variety of risks affecting those REITs directly. Share prices of publicly traded REITs may decline because of adverse developments affecting the real estate industry and real property values, including supply and demand for properties, the economic health of the country or of different regions, the strength of specific industries that rent properties and interest rates. REITs often invest in highly leveraged properties. Returns from REITs, which typically are small or medium capitalization stocks, may trail returns from the overall stock market. In addition, changes in interest rates may hurt real estate values or make REIT shares less attractive than other income-producing investments. REITs are also subject to heavy cash flow dependency and defaults by borrowers and tenants.

*Risks Relating to Commercial Mortgage-Backed Securities*

The Fund expects to invest a portion of its assets in pools or tranches of CMBS. CMBS are securities that evidence interests in, or are secured by, a single commercial mortgage loan or a pool of commercial mortgage loans. The collateral underlying CMBS generally consists of commercial mortgages on real property that has a multifamily or commercial use, such as retail space, office buildings, warehouse property and hotels.

In a rising interest rate environment, the value of CMBS may be adversely affected when payments on underlying mortgages do not occur as anticipated, resulting in the extension of the security's effective maturity and the related increase in interest rate sensitivity of a longer-term instrument. The value of CMBS may also change due to shifts in the market's perception of issuers and regulatory or tax changes adversely affecting the mortgage securities market as a whole. In addition, CMBS are subject to the credit risk associated with the performance of the underlying mortgage properties.

The securitization process that CMBS go through may also result in additional risks. Generally, CMBS are issued in classes similar to mortgage loans. To the extent that we invest in a subordinate class, we will be paid interest only to the extent that there are funds available after paying the senior classes. To the extent the collateral pool includes delinquent loans, subordinate classes will likely not be fully paid and may not be paid at all. Subordinate CMBS are also subject to greater credit risk than those CMBS that are more highly rated. Further, the ratings assigned to any particular class of CMBS may not ultimately prove to be accurate. Thus, any particular class of CMBS may be riskier and more volatile than the rating assigned to such security, which may result in the returns on any such CMBS investment to be less than anticipated.

*Risks Relating to Subordinated Debt Investments*

To the extent that the Fund acquires subordinated or "mezzanine" debt investments, the Fund does not anticipate having absolute control over the underlying collateral because the Fund will be dependent on third-party borrowers and agents and will have rights that are subordinate to those of senior lenders. The Fund's subordinated or mezzanine debt interests may be in real estate companies and real estate-related companies and properties whose capital structures may have significant leverage ranking ahead of the Fund's investment. While the Adviser anticipates that the Fund's investments will usually benefit from the same or similar financial and other covenants as those enjoyed by the leverage ranking ahead of the Fund and will usually benefit from cross default provisions, some or all of such terms may not be part of particular investments. The Adviser anticipates that the Fund's usual security for these types of investments will be pledges of ownership interests, directly and/or indirectly, in a property-owning entity, and in many cases the Fund may not have a

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| |
|:---|
| FORUM REAL ESTATE INCOME FUND<br>Notes to the Financial Statements (Continued)<br> December 31, 2022 |
| **7. RISKS AND UNCERTAINTIES – (Continued)** |

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mortgage or other direct security interest in the underlying real estate assets. Moreover, it is likely that the Fund will be restricted in the exercise of its rights in respect of these types of investments by the terms of subordination agreements between it and the leverage ranking ahead of the Fund's capital. Accordingly, the Fund may not be able to take the steps necessary to protect its investments in a timely manner or at all and there can be no assurance that the rate of return objectives of the Fund or any particular investment will be achieved. To protect its original investment and to gain greater control over the underlying assets, the Fund may need to elect to purchase the interest of a senior creditor or take an equity interest in the underlying assets, which may require additional investment by the Fund.

*Risks Relating to Mezzanine Loans*

The mezzanine loans in which the Fund may invest may include loans secured by one or more direct or indirect ownership interests in a company, partnership or other entity owning, operating or controlling, directly or through subsidiaries or affiliates, one or more properties. Although not secured by the underlying real estate, mezzanine loans share certain of the characteristics of subordinate loan interests described above. It is expected that the properties owned by such entities are or will be subject to existing mortgage loans and other indebtedness. As with subordinate commercial mortgage loans, repayment of a mezzanine loan is dependent on the successful operation of the underlying properties and, therefore, is subject to similar considerations and risks, including certain of the considerations and risks described herein. Mezzanine loans may also be affected by the successful operation of other properties, the interests in which are not pledged to secure the mezzanine loan. The entity ownership interests securing the mezzanine loans may represent only partial interests in the related real estate company and may not control either the related real estate company or the underlying property. As a result, the effective realization on the collateral securing a mezzanine loan in the event of default may be limited.

Mezzanine loans may also involve certain additional considerations and risks. For example, the terms of mezzanine loans may restrict transfer of the interests securing such loans (including an involuntary transfer upon foreclosure) or may require the consent of the senior lender or other members or partners of or equity holders in the related real estate company, or may otherwise prohibit a change of control of the related real estate company. These and other limitations on realization on the collateral securing a mezzanine loan or the practical limitations on the availability and effectiveness of such a remedy may affect the likelihood of repayment in the event of a default.

*Risks Relating to Commercial Mortgage Loans*

Commercial mortgage loans have certain distinct risk characteristics. Mortgage loans on commercial properties generally lack standardized terms, which may complicate their structure and increase due diligence costs. Commercial mortgage loans also tend to have shorter maturities than single-family residential mortgage loans and are generally not fully amortizing, which means that they may have a significant principal balance or "balloon" payment due on maturity. Mortgage loans with a balloon payment involve a greater risk to a lender than fully amortizing loans because the ability of a borrower to make a balloon payment typically will depend upon its ability either to fully refinance the loan or to sell the property securing the loan at a price sufficient to permit the borrower to make the balloon payment. The ability of a borrower to effect a refinancing or sale will be affected by a number of factors, including the value of the property, the level of available mortgage rates at the time of sale or refinancing, the borrower's equity in the property, the financial condition and operating history of the property and the borrower, tax laws, prevailing economic conditions and the availability of credit for loans secured by the specific type of property.

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| |
|:---|
| FORUM REAL ESTATE INCOME FUND<br>Notes to the Financial Statements (Continued)<br> December 31, 2022 |
| **7. RISKS AND UNCERTAINTIES – (Continued)** |

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Commercial mortgage loans generally are non-recourse to borrowers. In the event of foreclosure on a commercial mortgage loan, the value at that time of the collateral securing the mortgage loan may be less than the principal amount outstanding on the mortgage loan and the accrued but unpaid interest thereon.

*General Risks of Direct Investments in Real Estate*

To a lesser degree, the Fund may invest in equity ownership interests in real estate as part of its investment strategy, including through the Workout process described above. The yields available from equity investments in real estate depend on the amount of income earned and capital appreciation generated by a property, as well as the expenses incurred in connection therewith. Accordingly, the performance of these investments is subject to the risks affecting cash flow, expenses, capital appreciation, and, to the extent the investments are leveraged, the risks incident to borrowing funds, including risks associated with changes in the general economic climate, changes in the overall real estate market, local real estate conditions, the financial condition of tenants, buyers and sellers of properties, supply of or demand for competing properties in an area, technological innovations that dramatically alter space and demand requirements, the availability of financing, changes in interest rates and mortgage availability, inflation, inventory availability and demand, taxes, competition based on rental rates, energy and supply shortages, various uninsured and uninsurable risks, government regulations, environmental laws and regulations, zoning laws, environmental claims arising in respect of real estate acquired with undisclosed or unknown environmental problems or as to which inadequate reserves had been established, changes in the relative popularity of property types and locations, risks due to dependence on cash flow and risks and operating problems arising out of the presence of certain construction materials, force majeure, acts of war (declared and undeclared), terrorist acts, strikes and other factors which are beyond the control of the Fund. In addition, rising interest rates could make alternative interest-bearing and other investments more attractive and, therefore, potentially lower the relative value of any existing real estate investments. Furthermore, there can be no assurance that there will be tenants for the Fund's properties.

**8.** CAPITAL STOCK

The minimum initial investment is $25,000,000. The minimum subsequent investment is $5,000, except for purchases pursuant to the dividend reinvestment policy. The Fund reserves the right to waive investment minimums. The Fund's shares are offered for sale on a continuous basis at the net asset value ("NAV") per share calculated on each regular business day, which is any day the New York Stock Exchange is open for business (see Note 11).

As an interval fund, the Fund has adopted a fundamental policy requiring it to make quarterly repurchase offers pursuant to Rule 23c-3 of the 1940 Act. Each quarterly repurchase offer will be for at least 5% and up to 25% of the Fund's shares at NAV. Although the policy permits repurchases of between 5% and 25% of the Fund's outstanding shares, for each quarterly offer, the Fund expects to offer to repurchase 5% of the Fund's outstanding shares at the applicable NAV per share, subject to approval by the Board. Written notification of each quarterly repurchase offer will be sent to shareholders at least 21 and no more than 42 calendar days before the repurchase request deadline (i.e., the date by which shareholders can submit their request for their shares to be redeemed in response to a repurchase offer). During the year ended December 31, 2022, the Fund had repurchases, pursuant to Rule 23c-3 of the 1940 Act, in the amount of $2,951,595.

Prior to September 29, 2022, the Fund operated as a "tender offer fund," a type of fund which, in order to provide liquidity to shareholders offered quarterly repurchases, pursuant to Rule 13e-4 of the 1940 Act, of shares between 5% and 25% of its outstanding shares at the applicable NAV. During the year ended December 31, 2022, the Fund had repurchases, pursuant to Rule 13e-4 of the 1940 Act, in the amount of $2,405,601.

<u> FORUM REAL ESTATE INCOME FUNDNotes to the Financial Statements (Continued) December 31, 2022 </u> <br>  

**9.** INCOME TAX INFORMATION AND DISTRIBUTIONS TO SHAREHOLDERS

The tax character of distributions paid during the period ended December 31, 2022, was as follows:

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| | |
|:---|:---|
|  | 2022 |
|  Distributions paid from: |  |
|  Ordinary income | $4452726  |
|  Capital gains |  |
|  Total | $4452726  |

---

At December 31, 2022, the Fund had capital loss carryforwards of $542,132 which expire on December 31, 2027. The capital loss carryforwards will reduce the Fund's taxable income arising from future net realized gain on investments, if any, to the extent permitted by the code and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax.

**10.** Commitment and Contingencies

The Fund is required to provide financial support in the form of investment commitments to certain investees as part of the conditions for entering into such investments. As of December 31, 2022, the Fund had unfunded commitments in the amount of $3,898,901.

**11.** SUBSEQUENT EVENTS

Subsequent events after the date of the Statement of Assets and Liabilities have been evaluated through the date the financial statements were issued. Management has concluded that there is no impact requiring adjustment or disclosure in the financial statements.

On January 31, 2023, the Fund paid a distribution of $0.0675 per share to shareholders of record on January 30, 2023.

On January 6, 2023, the Fund filed a supplement to its Registration Statement, dated September 28, 2022, with the Securities and Exchange Commission ("SEC"), in which it agreed to continue to waive the $25,000,000 minimum initial investment on Founders Shares until the date on which the SEC grants the Fund's pending request for multi-class exemptive relief. Until such date, Founders Shares will be subject to a minimum initial investment of $10,000.

Report of Independent Registered Public Accounting Firm

To the Shareholders of the Forum Real Estate Income Fund:

*Opinion on the Financial Statements*

We have audited the accompanying statement of assets and liabilities of Forum Real Estate Income Fund (the "Fund") including the schedule of investments, as of December 31, 2022, and the related statements of operations and cash flows for the year then ended, the statement of changes in net assets for the year then ended and the period April 16, 2021 (commencement of operations) through December 31, 2021 and the related notes (collectively referred to as the "financial statements") and financial highlights for the year then ended and the period April 16, 2021 (commencement of operations) through December 31, 2021. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2022 and the results of its operations, and cash flows for the year then ended, and the changes in net assets and financial highlights for the year then ended and the period April 16, 2021 (commencement of operations) through December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.

*Basis for Opinion*

These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian and loan servicer. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

![](tcohn_signature.jpg)

We have served as auditor of one or more of the Forum Capital Advisors investment companies since 2019.

Chicago, Illinois

February 24, 2023

FORUM REAL ESTATE INCOME FUND<br>Trustees and Officers (Unaudited)<br>

Following is a list of the Trustees and executive officers of the Fund and their principal occupation over the last five years. Unless otherwise noted, the address of each Trustee and Officer is: c/o Forum Capital Advisors LLC, 240 Saint Paul Street, Suite 400, Denver, Colorado 80206.

**Independent Trustees**

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| | | | | |
|:---|:---|:---|:---|:---|
|  Name, Address <br>(Year of Birth) | Position/Term of <br>Office\* | Principal Occupation <br>During the Past <br>Five Years | Number of <br>Portfolios in <br>Fund <br>Complex\*\* <br>Overseen by <br>Trustee | Other Directorships<br>held by Trustee <br>During Last <br>Five Years |
|  David Gerstenhaber <br>(1960) | Lead Independent Trustee <br>(Since 2021) | Managing Member, Argonaut Management Colorado LLC (2020 – present); Founder and Chief Investment Officer, Build Capital (2017 – 2020); Chief Investment Officer, Argonaut Capital Management, LP <br>(1993 – 2020) | 1 | N/A |
|  Brien Biondi <br>(1962) | Independent Trustee <br>(Since 2022) | Chief Executive Officer, Campden Wealth, North America & The Institute for Private Investors (2016 – Present); Chief Executive Officer and Founder, The Biondi Group (2011 – Present) | 1 | Primark Private Equity Investments Fund |
|  Julie Cooling <br>(1972) | Independent Trustee <br>(Since 2022) | Founder and Chief Executive Officer, RIA Channel, LLC <br>(2005 – present). | 1 | N/A |

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**Interested Trustees**

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| | | | | |
|:---|:---|:---|:---|:---|
|  Name, Address <br>(Year of Birth) | Position/Term of <br>Office\* | Principal Occupation <br>During the Past <br>Five Years | Number of <br>Portfolios in <br>Fund <br>Complex\*\* <br>Overseen by <br>Trustee | Other Directorships <br>held by Trustee <br>During Last <br>Five Years |
|  Darren Fisk <br>(1974) | Chairman, Chief Executive Officer, and Interested Trustee <br>(Since 2021) | Founder and Chief Executive Officer of Forum Capital Advisors LLC (2018 – Present); Founder and Chief Executive Officer of Forum Real Estate Group (2007 – Present) | 1 | MediaShift Technologies, Inc. |

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FORUM REAL ESTATE INCOME FUND<br>Trustees and Officers (Unaudited) (Continued)<br>

Officers

---

| | | |
|:---|:---|:---|
|  Name, Address <br>(Year of Birth) | Position/Term of <br>Office\* | Principal Occupation During the Past Five Years |
|  Michael Bell <br>(1962) | President <br>(Since 2022) | President of Forum Capital Advisors LLC (2022 – present); Managing Director of Primark Advisors, LLC (2020 – present); Trustee, Primark Private Equity Investments Fund (2020 – present); CEO, Global Financial Private Capital (2015 – 2019) |
|  Derek Mullins<br>(1973) | Chief Financial Officer; Treasurer <br>(Since 2021) | Managing Partner, PINE Advisor Solutions LLC (2018 – present), Principal Financial Officer, Destra Investment Trust, Destra International & Event Driven Credit Fund and Destra Multi — Alternative Fund (2018 – Present); Principal Financial Officer, XAI Octagon Floating Rate & Alternative Income Term Trust (2020 – Present); Principal Financial Officer, Emles Trust (2020 – 2021); Principal Financial Officer, Bow River Capital Evergreen Fund (2021 – Present); Principal Financial Officer, Primark Private Equity Investments Fund (2020 – Present), Director of Operations, ArrowMark Partners LLC (2009 – 2018) |
|  Brad Nemzer<br>(1982) | Vice President <br>(Since 2022) | Chief Operating Officer of Forum Capital Advisors LLC (2021 – present); Managing Director of Finance at Forum Investment Group (2021 – present); Chief Financial Officer of LEM Capital, LP (2015 – 2021) |
|  Peter Sattelmair<br>(1977) | Assistant Treasurer <br>(Since 2022) | Director of CFO Services, PINE Advisor Solutions LLC (2021 – present); Director of Fund Operations, Transamerica Asset Management (2014 – 2021) |
|  Cory Gossard<br>(1972) | Chief Compliance Officer <br>(Since 2021) | Director of Regulatory Compliance, PINE Advisor Solutions LLC (2021 – present); Interim Chief Compliance Officer, Vident Investment Advisory (2020), Chief Compliance Officer, SS&C ALPS (2014 – 2020) |
|  Elizabeth Ryan<br>(1980) | Secretary <br>(Since 2022) | General Counsel and Chief Compliance Officer, Forum Capital Advisors LLC (2022 – present); General Counsel and Chief Compliance Officer, Intrinsic Edge Capital Management (2019 – 2022); Senior Compliance Consultant, Simon Compliance (2018 – 2019) |

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____________

\*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term of office for each Trustee and officer listed above will continue indefinitely.

\*\*&nbsp;&nbsp;&nbsp;&nbsp; The term "Fund Complex" refers to all present and future funds advised by the Adviser or its affiliates.

FORUM REAL ESTATE INCOME FUND<br>Expenses Example (Unaudited)<br> For the Six Months Ended December 31, 2022 (Unaudited)<br>

As a shareholder of the Forum Real Estate Income Fund, you incur ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from through July 1, 2022 through December 31, 2022.

**Actual Expenses**

The "Actual" columns in the table below provide information about actual account values and actual expenses. You may use the information below together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = $8.6), then multiply the result by the number in the table under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.

**Hypothetical Example for Comparison Purposes**

The "Hypothetical" columns in the table below provide information about hypothetical account values and hypothetical expenses based on the Funds' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balances or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, as well as other charges and expenses of the insurance contract, or separate account. Therefore, the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

The Funds' expenses shown do not reflect the charges and expenses of the insurance company separate accounts and if such expenses were included the costs would have been higher.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | | Actual | Actual | Hypothetical <br>(5% return before <br>expenses) | Hypothetical <br>(5% return before <br>expenses) |
|  | **Fund's <br>Annualized <br>Expense <br>Ratio** | **Beginning <br>Account <br>Value <br>7/1/2022** | **Ending <br>Account <br>Value <br>12/31/22** | **Expenses <br>Paid During <br>Period\*** | **Ending <br>Account <br>Value <br>12/31/22** | **Expenses <br>Paid During <br>Period** |
|  Forum Real Estate Income Fund | 2.14% | $1000.00 | $1019.80 | $10.89 | $1014.42 | $10.87 |

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____________

\*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Actual Expenses Paid During Period are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the period (184) divided by the number of days in the fiscal year (365).

**Forum Real Estate Income Fund**

**PRIVACY NOTICE (Unaudited)**

The Forum Real Estate Income Fund (the "Fund", "we", "our", "us") respects your right to privacy. We are committed to maintaining the confidentiality and integrity of nonpublic personal information. We want our investors and prospective investors to understand what information we collect and how we use it. "Nonpublic personal information" is defined as personally identifiable information about you. We do not sell your personal information, and we do not disclose it to anyone except as permitted or required by law or as described in this notice.

**<u>CONFIDENTIALITY & SECURITY</u>**

We take our responsibility to protect the privacy and confidentiality of investors' and prospective investors' information very seriously. We maintain appropriate physical, electronic, and procedural safeguards to guard nonpublic personal information. Our network is protected by firewall barriers, encryption techniques, and authentication procedures, among other safeguards, to maintain the security of your information. We provide this Privacy Notice to investors at the start of new relationships and annually after that. We continue to adhere to the practices described herein after investors' accounts close. Furthermore, vendors with access to nonpublic personal information undergo an annual due diligence verification process to ensure their informational safeguards adhere to our strict standards.

**<u>WHY WE COLLECT YOUR INFORMATION</u>**

The Forum Real Estate Income Fund gathers information about our investors and their accounts to (1) know investors' identities and thereby prevent unauthorized access to confidential information; (2) design and improve the products and services we offer to investors; and (3) comply with the laws and regulations that govern us.

<u>**<u>HOW WE PROTECT YOUR INFORMATION</u>**</u>

To fulfill our privacy commitment for prospective, current, and former investors, the Forum Real Estate Income Fund has safeguards in place to protect nonpublic personal information. Safeguards include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Policies and procedures to protect your nonpublic information and comply with federal and state regulations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp; Contractual agreements with third-party service providers to protect your nonpublic personal information.

FORUM REAL ESTATE INCOME FUND<br>Privacy Notice (Unaudited) (Continued)<br>

<u>**<u>INFORMATION WE COLLECT</u>**</u>

The Forum Real Estate Income Fund is required by industry guidelines to obtain personal information about you in providing investment management services to you. We use this information to manage your account, direct your financial transactions, and provide you with valuable information about the assets we manage for you. We gather information from documents you provide to us, forms that you complete, and personal interviews. This information may include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your name, address, and social security number;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proprietary information regarding your beneficiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information regarding your earned wages and other sources of income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The composition and value of your managed portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Historical information we receive and maintain relating to transactions made on your behalf by the Forum Real Estate Income Fund, your custodian, or others;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information we receive from your institutional financial advisor, investment consultant, or other financial institutions with whom the Forum Real Estate Income Fund has a relationship and/or with whom you may be authorized us to gather and maintain such information.

<u>**<u>SHARING INFORMATION WITH NON-AFFILIATED THIRD PARTIES</u>**</u>

We only disclose nonpublic investor information to non-affiliated third parties (e.g. investor's custodian or broker) without prior investor consent when we believe it necessary to conduct our business or as required or permitted by law such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you request or authorize the disclosure of the information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To provide investor account services or account maintenance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To respond to regulatory authorities, a subpoena or court order, judicial process, or law enforcement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To perform services for the Fund, or on its behalf, to maintain business operations and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To help us to prevent fraud;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With attorneys, accountants, and auditors of the Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To comply with federal, state, or local laws, rules, and other applicable legal requirements.

We do not sell your information and do not make any disclosure of investor nonpublic personal information to other companies who may want to sell their products or services to you.

<u>**<u>OPT-OUT NOTICE</u>**</u>

If, at any time in the future, it is necessary to disclose any investor personal information in a way that is inconsistent with this notice, the Forum Real Estate Income Fund will provide you with proper advanced notice of the proposed disclosure so that you will have the opportunity to either opt-in or opt-out of such disclosure, as required by applicable law.

If you have any questions about this Privacy Notice, please contact the Forum Real Estate Income Fund at 303-501-8860.

FORUM REAL ESTATE INCOME FUND<br>Additional Information (Unaudited)<br>

**<u>PROXY VOTING POLICY</u>**

A description of the policies and procedures that the Fund uses to vote proxies relating to portfolio securities is available without charge upon request by calling toll-free 1-303-501-8860, or on the SEC's website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the period ended June 30 are available without charge upon request by calling toll-free 1-303-501-8860, or on the SEC's website at www.sec.gov.

<u>**<u>PORTFOLIO HOLDINGS</u>**</u>

The Fund will file its complete listing of portfolio holdings with the SEC as of the end of the first and third quarters of each fiscal year as an exhibit to Form N-PORT. These filings will be available upon request by calling 1-303-501-8860. Furthermore, you may obtain a copy of the filings on the SEC's website at www.sec.gov.

**<u>DIVIDEND REINVESTMENT</u>**

Unless a shareholder is ineligible or otherwise elects, all distributions of dividends (including capital gain dividends) with respect to a class of shares will be automatically reinvested by the Fund in additional shares of the corresponding class, which will be issued at the net asset value per share determined as of the ex-dividend date. Election not to reinvest dividends and to instead receive all dividends and capital gain distributions in cash may be made by contacting the Fund's administrator at UMB Bank, n.a., 1010 Grand Boulevard, Kansas City, Missouri 64106.

This report has been prepared for the general information of the shareholders. It is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus. The Fund's prospectus contains more complete information about the objectives, policies, expenses and risks of the Fund. The Fund is not a bank deposit, not FDIC insured and may lose value. Please read the prospectus carefully before investing or sending money.

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| | |
|:---|:---|
|  **INVESTMENT ADVISER**<br> Forum Capital Advisors, LLC<br>240 Saint Paul Street, Suite 400<br>Denver, Colorado 80206<br> **INVESTMENT SUB**-ADVISERJanus Henderson Investors US LLC<br>151 Detroit Street<br>Denver, CO 80206<br> **ADMINISTRATOR**<br> UMB Fund Services<br>235 W. Galena Street<br>Milwaukee, WI 53212<br> **FUND COUNSEL**<br> Morrison & Foerster LLP<br>370 17<sup>th</sup> Street, Suite 4200<br>Denver, CO 80218<br> **INDEPENDENT TRUSTEE COUNSEL**<br> Ropes & Gray<br>191 North Wacker Drive, 32<sup>nd</sup> Floor<br>Chicago, IL 60606-4302<br> **INDEPENDENT REGISTERED <br>PUBLIC ACCOUNTING FIRM**<br> CohnReznick LLP<br>1 S. Wacker Drive, Suite 3550<br>Chicago, Illinois 60606 | **CUSTODIAN**<br> UMB Bank, n.a.<br>1010 Grand Boulevard<br>Kansas City, Missouri 64106<br> **DISTRIBUTOR**<br> Foreside Fund Services, Inc.<br>Three Canal Plaza, Suite 100<br>Portland, Maine 04101<br> **TRUSTEES**<br> Darren Fisk, Interested Trustee, <br>Chairman and Chief Executive Officer<br>Brien Biondi<br>Julie Cooling<br>David Gerstenhaber<br> **OFFICERS**<br> Michael Bell, President<br>Brad Nemzer, Vice President<br>Derek Mullins, Chief Financial Officer, Treasurer<br>Peter Sattelmair, Assistant Treasurer<br>Cory Gossard, Chief Compliance Officer<br>Elizabeth Ryan, Secretary |

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**(b)&nbsp;&nbsp;&nbsp;&nbsp;**There were no notices transmitted to stockholders in reliance on Rule 30e-3 under the Investment Company Act of 1940, as amended, that contained disclosures specified by paragraph (c)(3) of that rule.

#### Item 2. Code of Ethics
The Registrant has a code of ethics (the "**Code**") that applies to the Registrant's principal executive officer, principal financial officer, and principal accounting officer. During the period covered by this report, there were no amendments to the provisions of the Code, nor were there any implicit or explicit waivers to the provisions of the Code. The Code is filed herewith.

#### Item 3. Audit Committee Financial Expert
The Registrant's Board of Trustees has determined that the Registrant has an audit committee financial expert serving on its audit committee who is "independent" within the meaning set forth in Item 3(a)(2) of Form N-CSR: Brien Biondi. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for purposes of Section 11 of the Securities Act of 1933, as amended, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification.

#### Item 4. Principal Accountant Fees and Services.
The aggregate fees billed for professional services by the principal accountant during the Registrant's last two fiscal years were as follows:

(a)&nbsp;&nbsp;&nbsp;&nbsp; Audit Fees for Registrant.

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| | |
|:---|:---|
|  Fiscal year ended December 31, 2022 | $85000 |
|  Fiscal year ended December 31, 2021 | $66000 |

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(b)&nbsp;&nbsp;&nbsp;&nbsp;Audit-Related Fees for Registrant. These are fees by the Registrant's independent auditors for assurance and related services that were reasonably related to the performance of the audit of the Registrant's financial statements that are not reported under "Audit Fees".

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| | |
|:---|:---|
|  Fiscal year ended December 31, 2022 | $0 |
|  Fiscal year ended December 31, 2021 | $0 |

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(c)&nbsp;&nbsp;&nbsp;&nbsp; Tax Fees for Registrant. These are fees for professional services rendered by the Registrant's independent auditors for tax compliance, tax advice, and tax planning. These fees include federal, excise and state tax reviews, and tax agent services.

---

| | |
|:---|:---|
|  Fiscal year ended December 31, 2022 | $42525 |
|  Fiscal year ended December 31, 2021 | $22520 |

---

(d)&nbsp;&nbsp;&nbsp;&nbsp;All Other Fees.

---

| | |
|:---|:---|
|  Fiscal year ended December 31, 2022 | $0 |
|  Fiscal year ended December 31, 2021 | $0 |

---

(e)&nbsp;&nbsp;&nbsp;&nbsp; Audit Committee's pre-approval policies and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;The registrant's Audit Committee is required to pre-approve all audit services and, when appropriate, any non-audit services (including audit-related, tax and all other services) to the registrant. The registrant's Audit Committee also is required to pre-approve, when appropriate, any non-audit services (including audit-related, tax and all other services) to its adviser, or any entity controlling, controlled by or under

------

common control with the adviser that provides ongoing services to the registrant, to the extent that the services may be determined to have an impact on the operations or financial reporting of the registrant. Services are reviewed on an engagement by engagement basis by the Audit Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;Percentages of Services Approved by the Audit Committee

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
|  Audit-Related Fees: | 100.0% | 100.0% |
|  Tax Fees: | 100.0% | 100.0% |
|  All Other Fees: | 100.0% | 100.0% |

---

(f)&nbsp;&nbsp;&nbsp;&nbsp; During the audit of registrant's financial statements for the most recent fiscal year, less than 50 percent of the hours expended on the principal accountant's engagement were attributed to work performed by persons other than the principal accountant's full-time, permanent employees.

(g)&nbsp;&nbsp;&nbsp;&nbsp;The aggregate non-audit fees billed by the registrant's accountant for services rendered to the registrant, and rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant:

---

| | |
|:---|:---|
|  Fiscal year ended December 31, 2022 | $42525 |
|  Fiscal year ended December 31, 2021 | $22500 |

---

(h)&nbsp;&nbsp;&nbsp;&nbsp;The registrant's audit committee has considered whether the provision of non-audit services to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant, that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the principal accountant's independence.

#### Item 5. Audit Committee of Listed Registrants
Not applicable.

#### Item 6. Schedule of Investments
Included as part of the report to shareholders filed under Item 1 of this Form N-CSR.

#### Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
[The Registrant's Proxy Voting Policies and Procedures is attached here as Exhibit 13(c).](s148506_ex99-13c.htm)

#### Item 8. Portfolio Managers of Closed-end Management Investment Companies
(a)(1) <u>Portfolio Manager</u>

All information included in this item is as of December 31, 2022, unless otherwise noted.

#### Pat Brophy
Pat Brophy has been the Fund's Portfolio Manager since the Fund's inception and is responsible for day-to-day management of the Fund's investment portfolio. He has nearly 30 years of wide-ranging experience in real estate and financial services. Prior to joining Forum Capital Advisers (the "Adviser"), Mr. Brophy managed the Global Real Estate Strategy at Janus Henderson Investors US LLC (the "Sub-Adviser"). Prior to joining the Sub-Adviser in 2005, he was a Principal/Partner at THK Associates, Inc., a Denver-based market economics and land-planning firm. His expertise is in economic analysis, real estate valuation, property development and acquisition strategies. He received his B.A. in history from Dartmouth College. Mr. Brophy is a member of the Fund's Investment Committee.

------

(a)(2) Other Accounts Managed by Portfolio Manager

The following tables provide information about portfolios and accounts, other than the Registrant, for which the portfolio managers are primarily responsible for the day-to-day portfolio management as of December 31, 2022:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  **Name** | **Type of Accounts** | **Total Number of Accounts Managed** | **Total Assets** | **Number of Accounts Managed for Which Advisory Fees is Based on Performance** | **Total Assets for Which Advisory Fees is Based on Performance** |
|  Patrick Brophy | Registered Investment Companies | 0 | $0 | 0 | $0 |
|  | Other Pooled Investment Vehicles | 0 | $0 | 0 | $0 |
|  | Other Accounts | 0 | $0 | 0 | $0 |

---

(a)(3) Compensation of Portfolio Managers and Potential Conflicts of Interest

**Compensation of the Portfolio Manager:&nbsp;&nbsp;&nbsp;&nbsp;**The Portfolio Manager receives a fixed annual base compensation. He also receives an annual discretionary bonus that varies based upon the achievement of specific goals, which are typically with respect to total firm growth, production of investment ideas/research, as well as delivery of quality client service.

**Potential Conflicts of Interest:&nbsp;&nbsp;&nbsp;&nbsp;**The Adviser and the Sub-Adviser may provide investment advisory and other services, directly and through affiliates, to various entities and accounts other than the Fund. The Fund has no interest in these activities. The Adviser, the Sub-Adviser, and the investment professionals, who on behalf of the Adviser or the Sub-Adviser, provide investment advisory services to the Fund, are engaged in substantial activities other than on behalf of the Fund, may have differing economic interests in respect of such activities, and may have conflicts of interest in allocating their time and activity between the Fund and the Adviser Accounts or other accounts of the Sub-Adviser. Such persons devote only so much time to the affairs of the Fund as in their judgment is necessary and appropriate.

In addition, the Adviser may earn additional fees or reimbursement of expenses from certain borrowers in connection with the structuring of certain investments negotiated by the Adviser or its affiliates. While such are not borne directly or indirectly by the Fund nor will its returns be directly or indirectly impacted by such payments, the receipt of such fees could create a conflict of interest with the Adviser.

(a)(4) Dollar Range of Securities Owned as of December 31, 2022

---

| | |
|:---|:---|
|  **Portfolio Manager** | **Dollar Range of the Registrant's Securities <br>owned by the Portfolio Manager** |
|  Pat Brophy | $100001 – $500000 |

---

#### Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
There were no purchases made by or on behalf of the registrant or any "affiliated purchaser," as defined in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares or other units of any class of the registrant's equity securities that is registered by the registrant pursuant to Section 12 of the Exchange Act (15 U.S.C. 781).

There were no purchases that do not satisfy the conditions of the safe harbor of Rule 10b-18 under the Exchange Act (17 CFR 240.10b-18), made in the period covered by this report.

------

#### Item 10. Submission of Matters to a Vote of Security Holders
No material changes to report.

#### Item 11. Controls and Procedures
(a)&nbsp;&nbsp;&nbsp;&nbsp; The Registrant's principal executive officer and principal financial officer have reviewed the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) as of a date within 90 days of the filing of this report, as required by Rule 30a-3(b) under the Act and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934. Based on their review, such officers have concluded that the disclosure controls and procedures are effective in ensuring that information required to be disclosed in this report is appropriately recorded, processed, summarized and reported and made known to them by others within the Registrant and by the Registrant's service providers.

(b)&nbsp;&nbsp;&nbsp;&nbsp;There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that materially affected, or were reasonably likely to materially affect, the Registrant's internal control over financial reporting.

#### Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
The Fund has not engaged in Security Lending Activities.

#### Item 13. Exhibits
(a) &nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp; [Code of Ethics. Filed herewith.](s148506_ex99-codeeth.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;[Certifications of the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) of the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002. Filed herewith.](s148506_ex99-cert.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;Any written solicitation to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. *Not applicable.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&nbsp;&nbsp;&nbsp;Change in the registrant's independent public accountant. *Not applicable*

(b)&nbsp;&nbsp;&nbsp;&nbsp;[Certification of the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(b) of 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002. Filed herewith.](s148506_ex99-906cert.htm)

------

#### SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
|  Registrant | **Forum Real Estate Income Fund** |
|  By | /s/ Michael Bell |
|  Title | Michael Bell, President |
|  Date | 2023-03-07 |

---

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
|  By | /s/ Michael Bell |
|  Title | Michael Bell, President |
|  Date | 2023-03-07 |
|  By | /s/ Derek Mullins |
|  Title | Derek Mullins, Principal Financial Officer/Treasurer |
|  Date | 2023-03-07 |

---

------

## Exhibit 99.13

**Exhibit 99.13(c)**

**Proxy Voting Policy and Procedures**

The Forum Real Estate Income Fund (the "Fund") has adopted the following Proxy Voting Policy and Procedures (the "Fund's Policy"), as set forth below, in recognition of the fact that proxy voting is an important component of investment management and must be performed in a dutiful and purposeful fashion in order to advance the best interests of the Fund's shareholders.

Shareholders of the Fund expect the Fund to vote proxies received from issuers whose voting securities are held by the Fund. The Fund exercises its voting responsibilities as a fiduciary, with the goal of maximizing the value of the Fund and its shareholder's investments. Forum Capital Advisers LLC (the "Adviser") and whenever applicable Janus Henderson Investors US LLC (the "Sub-Adviser") will seek to ensure that proxies are voted in the best interests of the Fund and its shareholders except where the Fund may be required by law to vote proxies in the same proportion as the vote of all other shareholders (i.e., "echo vote").

**Delegation of Proxy Voting to the Adviser and Sub-Adviser** 

The Adviser and/or Sub-Adviser shall vote all proxies relating to securities held by the Fund and, in that connection subject to any further policies and procedures contained herein, shall use proxy voting policies and procedures ("Proxy Policy") adopted by the Adviser/Sub-Adviser in conformance with Rule 206(4)-6 under the Investment Advisers Act of 1940, as amended ("1940 Act").

**Disclosure of Proxy Voting Policy and Procedure in the Fund's Statement of Additional Information ("SAI") and Annual Report to Shareholders** 

The Fund shall include in annual report to shareholders on Form N-CSR, and in any SAI filed with the Securities and Exchange Commission ("SEC") in connection with a registration statement on Form N-2 a summary of the Proxy Policy. In lieu of including a summary of policy, the Fund may include the policy in full.

**Material Conflicts of Interest** 

If (i) the Adviser/Sub-Adviser knows that a vote presents a material conflict between the interests of: (a) shareholders of the Fund, and (b) the Adviser/Sub-Adviser or any of its affiliated persons; and (ii) the Adviser/Sub-Adviser proposes to vote on the particular issue in the manner not prescribed by its Proxy Policy, then the Adviser/Sub-Adviser will follow the material conflict of interest procedures set forth in the Adviser/Sub-Adviser's Proxy Policy when voting such proxies.

**Adviser, Sub-Adviser and Fund CCO Responsibilities** 

The Fund has delegated proxy voting authority with respect to the Fund's portfolio securities to the Adviser and Sub-Adviser, as set forth above. Consistent with this delegation, the Adviser and Sub-Adviser are responsible for the following:

● Implementing written policies and procedures, in compliance with Rule 206(4)-6 under the 1940 Act, reasonably designed to ensure that the Adviser and/or Sub-Adviser votes portfolio securities in the best interest of shareholders of the Fund owning the portfolio securities voted.

Providing to the Fund's Chief Compliance Officer ("CCO") a summary of the material changes to a Proxy Policy during the period covered by the CCO's annual compliance report to the Board, and a redlined copy of such Proxy Policy as applicable The CCO shall review all Proxy Policies at least annually to ensure that they are in compliance with Rule 206(4)-6 under the Advisers Act, and appear reasonably designed to ensure that the Adviser and Sub-Adviser votes portfolio securities in the best interest of shareholders of the Funds owning the portfolio securities voted.

**Review Responsibilities** 

The Adviser or Sub-Adviser may retain a proxy-voting service to coordinate, collect, and maintain all proxy-related information.

If the Adviser or Sub-Adviser retains a proxy-voting service, the Adviser/Sub-Adviser will review the Fund's voting records maintained by the service provider, select a sample of proxy votes from those submitted, and examine them against the proxy voting service files for accuracy of the votes at least annually in regard to adhering to foregoing policy guidelines.

**Preparation and Filing of Proxy Voting Record on Form N-PX** 

The Fund will file its complete proxy voting record with the SEC on Form N-PX annually by August 31 of each year.

The Fund's Administrator will be responsible for the oversight and completion of the filing of Form N-PX with the SEC. The Fund's Administrator will file Form N-PX for each twelve-month period ended June 30, and the filing for each year will be made with the SEC on or before August 31 of that year.

**Recordkeeping** 

Documentation of all votes for the Fund will be maintained by the Adviser and/or through a third-party proxy voting service.

Adopted: April 26, 2021

Revised as of: December 13, 2022

## Ex-99.Code

**Exhibit 99.CODE ETH**

<u>Conduct Requirements</u>

**Sarbanes-Oxley Code of Ethics for Chief Executive and Senior Financial Officers**

Forum Real Estate Income Fund (the "Fund") is committed to conducting business in accordance with applicable laws, rules and regulations and the highest standards of business ethics, and to full and accurate financial disclosure in compliance with applicable law. This Code of Ethics, applicable to the Fund's Principal Executive Officer, Principal Financial Officer and Treasurer (or persons performing similar functions) (together, "Senior Officers"), sets forth specific policies to guide such individuals in the performance of their duties.

As a Senior Officer, you must comply with applicable law. You also have a responsibility to conduct yourself in an honest and ethical manner; and you have leadership responsibilities that include creating a culture of high ethical standards and commitment to compliance, maintaining a work environment that encourages employees to raise concerns, and promptly addressing employee compliance concerns.

The Code of Ethics of the Fund pursuant to Rule 17j-1(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (the "1940 Act Code of Ethics"), which this Code of Ethics is intended to supplement, sets forth the fundamental principles and key policies and procedures that govern the conduct of all of us in our business as registered investment companies.

**Compliance with Laws, Rules and Regulations**

You are required to comply with the laws, rules and regulations that govern the conduct of our business and to report any suspected violations in accordance with the section below entitled "Violations".

**Conflicts of Interest**

Senior Officers are expected to dedicate their best efforts to advancing the Fund's interests and to use objective and unbiased standards when making decisions that affect the Fund, keeping in mind that you are subject to inherent conflicts of interest because certain officers are also officers of Forum Capital Advisors, LLC (the "Adviser") as well as the Fund. Your obligation to conduct the Fund's business in an honest and ethical manner includes the ethical handling of actual or apparent conflicts of interest between personal and business relationships. A conflict of interest for the purpose of this Code of Ethics occurs when your private interests interfere in any way, or even appear to interfere, with the interests of the Fund. The 1940 Act Code of Ethics, the Adviser's and the Fund's allocation procedures and the other policies of the Fund are designed to ensure the ethical handling of such conflicts. As a result, it is incumbent on you to be familiar with the 1940 Act Code of Ethics, the Adviser's and Fund's allocations procedures and other rules and regulations under the 1940 Act as well as the policies of the Fund. When making any investment, accepting any position or benefits, participating in any transaction or business arrangement or otherwise acting in a manner that creates or appears to create a conflict of interest where you are receiving a personal benefit, you should act in accordance with the letter and the spirit of the 1940 Act Code of Ethics and/or the Fund's or the Adviser's other applicable policies and procedures. If you are in doubt as to the application or interpretation of any of these, you should make full disclosure of all facts and circumstances to and obtain the prior written approval of the Secretary of the Fund.

**Disclosures**

It is the policy of the Fund to make full, fair, accurate, timely and understandable disclosure in compliance with all applicable laws and regulations in all reports and documents that the Fund files with, or submits to, the Securities and Exchange Commission ("SEC") and in all other public communications made by the Fund. As a Senior Officer, you are required to promote compliance with this policy by all employees and to abide by the Fund's standards, policies and procedures designed to promote compliance with this Code of Ethics.

**Violations**

If you know of or suspect a violation of applicable laws, regulations, policies, procedures or this Code of Ethics, you must immediately report that information to the Chairman of the Audit Committee of the Fund verbally, in writing or by other means necessary. No one will be subject to retaliation when making any such report in good faith report of an actual or suspected violation.

<u>Conduct Requirements</u>

Violations of this Code of Ethics may result in disciplinary action, up to and including discharge. The Board of Trustees shall determine, or shall designate appropriate persons to determine, appropriate action in response to violations of this Code.

**Waivers of Code of Ethics**

Any waiver of this Code, including an implicit waiver, granted to a Senior Officer may be made only by the Board of Trustees or a committee of the Board to which such responsibility has been delegated, and must be disclosed by the Fund in the manner prescribed by law.

**No Rights Created**

This Code of Ethics is a statement of certain fundamental principles, policies and procedures that govern the Fund's Senior Officers in the conduct of the Fund's business. It is not intended to and does not create any rights in any employee, investor, supplier, competitor, shareholder or any other person or entity.

Adopted: April 26, 2021

<u>Conduct Requirements</u>

**Appendix A**

FORUM REAL ESTATE INCOME FUND

PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICER

ANNUAL CERTIFICATE

Pursuant to the requirements of the Code of Ethics for Principal Executive and Senior Financial Officers of Forum Real Estate Income Fund (the "Trust" or the "Fund"), the undersigned hereby certifies as follows:

● I have read the Trust's Code of Ethics for Principal Executive and Senior Financial Officers.

● I understand the Code of Ethics for Principal Executive and Senior Financial Officers and acknowledge that I am subject to it.

● I affirm that I have complied with the requirements of this code.

---

| | |
|:---|:---|
| Date | Print Name |
| Signature |  |

---

## Ex-99.Cert

**Exhibit 99.CERT**

**Forum Real Estate Income Fund**

**Exhibit 13(a)(2) to Form N-CSR**

CERTIFICATIONS PURSUANT TO 30a-2(a) UNDER

THE INVESTMENT COMPANY ACT OF 1940 AND

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michael Bell, certify that:

1. I have reviewed this report on Form N-CSR of the Forum Real Estate Income Fund;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the
financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this
report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to
be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented
in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to
the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting
that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors
and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and
report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: | 2023-03-07 |
| By | /s/ Michael Bell |
| Title | Michael Bell, President |

---

I, Derek Mullins, certify that:

1. I have reviewed this report on Form N-CSR of the Forum Real Estate Income Fund;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the
financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this
report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to
be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented
in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to
the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting
that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors
and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and
report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: | 2023-03-07 |
| By | /s/ Derek Mullins |
| Title | Derek Mullins, Principal Financial Officer/Treasurer |

---

## Exhibit 99.906

**Ex-99.906.CERT**

**Forum Real Estate Income Fund**

**Exhibit 13(b) to Form N-CSR**

CERTIFICATIONS PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

I, Michael Bell, Chief Executive Officer of the Forum Real Estate Income Fund, certify to my knowledge that:

1. The N-CSR of the registrant for the period ended December 31, 2022 (the "Report") fully complies
with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition
and results of operations of the registrant.

---

| | |
|:---|:---|
| Date: | 2023-03-07 |
| By | /s/ Michael Bell |
| Title | Michael Bell, President |

---

I, Derek Mullins, Principal Financial Officer/Treasurer of the Forum Real Estate Income Fund, certify to my knowledge that:

1. The N-CSR of the registrant for the period ended December 31, 2022 (the "Report") fully complies
with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition
and results of operations of the registrant.

---

| | |
|:---|:---|
| Date: | 2023-03-07 |
| By | /s/ Derek Mullins |
| Title | Derek Mullins, Principal Financial Officer/Treasurer |

---

A signed original of this written statement required by Section 906 has been provided to the Forum Real Estate Income Fund, and will be retained and furnished to the Securities and Exchange Commission or its staff upon request.