# EDGAR Filing Document

**Accession Number:** 0001885551
**File Stem:** 0001104659-23-026849
**Filing Date:** 2023-3
**Character Count:** 170824
**Document Hash:** 5e4408e28528a439817c9a330ebd56f7
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-026849.hdr.sgml**: 20230301

**ACCESSION NUMBER**: 0001104659-23-026849

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 9

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230301

**DATE AS OF CHANGE**: 20230228

**EFFECTIVENESS DATE**: 20230301

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Fundrise Income Real Estate Fund, LLC
- **CENTRAL INDEX KEY:** 0001885551
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-23745
- **FILM NUMBER:** 23688071

**BUSINESS ADDRESS:**
- **STREET 1:** 11 DUPONT CIRCLE NW
- **STREET 2:** 9TH FLOOR
- **CITY:** WASHINGTON
- **STATE:** DC
- **ZIP:** 20036
- **BUSINESS PHONE:** 202-584-0550

**MAIL ADDRESS:**
- **STREET 1:** 11 DUPONT CIRCLE NW
- **STREET 2:** 9TH FLOOR
- **CITY:** WASHINGTON
- **STATE:** DC
- **ZIP:** 20036

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM N-CSR**

**CERTIFIED SHAREHOLDER REPORT OF REGISTERED**

**MANAGEMENT INVESTMENT COMPANIES**

**Fundrise Income Real Estate Fund, LLC**

(Exact name of registrant as specified in its charter)

Investment Company Act File Number: 811-23745

**11 Dupont Circle NW, 9<sup>th</sup> Floor**

**Washington, D.C. 20036**

(Address of Principal Executive Offices)

**(202) 584-0550**

(Registrant's Area Code and telephone number)

**Michelle A. Mirabal**

**Rise Companies Corp.**

**11 Dupont Circle NW, 9<sup>th</sup> Floor**

**Washington, D.C. 20036**

(Name and Address of Agent for Service)

*Copies to:*

**Paul J. Delligatti, Esq.**

**Goodwin Procter LLP**

**1900 N Street, NW**

**Washington, D.C. 20036**

**Date of fiscal year end: December 31**

**Date of reporting period: February 3, 2022 through December 31, 2022**

**Item 1.** **Reports to Stockholders**

![](tm237479d1_ncsrimg001.jpg)

**Fundrise Income Real Estate Fund, LLC**

**Annual Report**

**for the Period Ended**

**December 31, 2022**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [MANAGEMENT DISCUSSION OF FUND PERFORMANCE](#a_001) | [2](#a_001) |
| [SCHEDULE OF INVESTMENTS](#a_002) | [5](#a_002) |
| [STATEMENT OF ASSETS AND LIABILITIES](#a_003) | [8](#a_003) |
| [STATEMENT OF OPERATIONS](#a_004) | [9](#a_004) |
| [STATEMENT OF CHANGES IN NET ASSETS](#a_005) | [10](#a_005) |
| [STATEMENT OF CASH FLOWS](#a_006) | [11](#a_006) |
| [FINANCIAL HIGHLIGHTS](#a_007) | [12](#a_007) |
| [NOTES TO THE FINANCIAL STATEMENTS](#a_008) | [13](#a_008) |
| [REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM](#ridera_001) | [27](#ridera_001) |
| [ADDITIONAL INFORMATION](#a_009) | [28](#a_009) |

---

Management Discussion of Fund Performance

Dear Fellow Shareholders,

We are pleased to present the annual report of the Fundrise Income Real Estate Fund, LLC (the "Fund"). Despite the public markets having delivered one of their worst performing years in the past several decades, the strength of the underlying portfolio of the Fund led to a stronger relative performance compared to the broader market in 2022, its first year of operations. The Fundrise Income Real Estate Fund returned 4.60% for the period April 1, 2022 (commencement of investment operations) through December 31, 2022. During the same period the S&P 500® Total Return Index, a bellwether for the overall U.S. stock market, returned -14.16%, the Bloomberg U.S. Aggregate Bond Index, a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market returned -7.52%, and publicly listed REITs (as measured by the NAREIT All US REITs index) returned -20.96%.

Within real estate, performance has diverged significantly between sectors, and we are encouraged by our focus on originating, investing in, and managing residential and commercial real estate investments where we anticipate continued demand growth. Multi-Family and Single Family rent continued to grow in 2022, although not as high as the historic levels seen in 2021. Per Yardi Matrix's November 2022 report, Multi-Family asking rents were up 7% year-over-year while Single Family rents were up 5.9% year-over-year. The Green Street Commercial Property Price Index®, which represents a measure of pricing for a broad spectrum of institutional quality properties, declined 13% in 2022. This was primarily due to sharply higher borrowing costs which caused values to fall even with healthy rent growth. These higher borrowing costs have driven valuation decreases in both residential and commercial real estate in 2022.

This past year saw sustained high levels of inflation. To combat this record high inflation, the Federal Reserve conducted its fastest ever period of interest rate hikes, raising the benchmark Fed Funds rate from 0 – 0.25% in January 2022, up to 4.5 – 4.75% today, with all signs indicating that they will reach 4.75 – 5% by March of this year. As expected, this plan to methodically slow down the economy and withdraw liquidity from the market through the use of monetary policy has also led to a sharp decline in asset values across nearly all sectors. While no asset is immune, hard assets, such as real estate, tend to perform well in inflationary environments.

**Fund Composition and Performance**

---

| | |
|:---|:---|
| **Geographic Composition** <br> **(as of 12/31/2022)**  | **% of Total<br> Investments** |
| Texas | 24.0% |
| Florida | 17.2% |
| California | 15.0% |
| Georgia | 3.8% |
| Arizona | 3.3% |
| Tennessee | 2.1% |
| North Carolina | 1.6% |
| Missouri | 0.8% |
| New Jersey | 0.8% |
| South Carolina | 0.7% |
| Pennsylvania | 0.4% |
| Virginia | 0.0%<sup>1</sup> |
| Other | 30.3% |
| **Total Investments** | **100.0%** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Value is less than 0.05% of Total Investments

See below for the Fund's performance during the period from April 1, 2022 (commencement of investment operations) through December 31, 2022, along with the broad-based securities market benchmark indices as well as the total return for the same period.

![](tm237479d1_ncsrimg004.jpg)

*\*Fundrise Income Real Estate Fund, LLC commenced investment operations on April 1, 2022.*

*The S&P 500 Total Return Index is an unmanaged market capitalization-weighted index which is comprised of 500 of the largest U.S. domiciled companies and includes the reinvestment of all dividends. Investors cannot invest directly in an index or benchmark.*

*The Bloomberg U.S. Aggregate Bond Index is an unmanaged index which represents the U.S. investment-grade fixed-rate bond market (including government and corporate securities, mortgage pass-through securities and asset-backed securities). Investors cannot invest directly in an index or benchmark.*

*The performance data quoted is historical. Past performance is no guarantee of future results. The performance table and graph do not reflect any taxes that a shareholder would pay on Fund dividends, capital gain distributions, if any, or any realized gains on the sale of Fund shares. The investment return and principal value of an investment will fluctuate. An investor's shares, when repurchased, may be worth more or less than the original cost. Total returns are calculated using closing Net Asset Value as of December 31, 2022 and are calculated assuming reinvestment of all dividends and distributions.*

*The Fund's distribution policy is to declare and make distributions on a quarterly basis, or more or less frequently as determined by the Board, in arrears. A portion of the distribution may include a return of capital. Shareholders should not assume that the source of a distribution from the Fund is net profit. Although return of capital distributions are not currently taxable, such distributions will have the effect of lowering a shareholder's tax basis in the shares which will result in a higher tax liability when the shares are repurchased, even if they have not increased in value, or, in fact, have lost value. Distributions are not guaranteed.*

*The Fund's most recent annualized distribution rate as of December 31, 2022, was 8.00% <sup>(1)</sup>. No distributions made during the period ended December 31, 2022 were deemed to be a return of capital.*

** 

*<sup>(1)</sup> Distribution rate is based on an annualization of the distributions per share for the 31 days of December 2022.* 

We seek to identify and invest behind large macroeconomic trends precisely because we believe those trends are likely to drive outsized growth, which in turn can deliver better than average performance. (Of course, we remind investors that such success is never guaranteed, and all investments carry risk which could lead to loss.)

More granularly, the primary contributors to 2022 performance were:

● **Interest rate hikes** conducted by the Federal Reserve to combat record high inflation

● **Continued Sunbelt growth** whereby the existing dynamics of strong population and job growth were amplified by the pandemic-driven migration of both people and companies to the region

● **Increasing institutional demand** for well-located, cash-flowing residential real estate assets

As we reflect on 2022 and look at the year ahead we see perhaps the best opportunity yet to validate our investment objective and strategies. Specifically, we believe:

**Inflation is on the decline & opportunity favors the prepared**

While 2022 saw record high inflation, we expect to see inflation continue to decline in 2023 though we anticipate both inflation and interest rates will remain elevated through the first six months. The Federal Reserve conducted its fastest ever period of interest rate hikes to combat this inflation in 2022 and we expect them to slowly begin to bring the rates down in 2023. Given the current state of the economy, individuals, businesses, and investors alike will need to survive what is likely to be a temporary and somewhat defined period where asset values are broadly depressed and borrowing costs are significantly higher (at least when compared to recent history). Due primarily to those significantly higher interest rates, many sponsors are facing liquidity shortfalls and are in need of near term "gap" or "bridge" financing solutions to pay down existing loans or recapitalize certain assets. Over the next year or so, some of the best investment opportunities are likely to present themselves merely as a function of disparity between those with or without liquidity, and while cautious, we feel extremely well positioned.

**The Sunbelt will continue to outperform**

Similar to 2022, we expect the Sunbelt region to remain resilient and generate positive income growth. We continue to see large population growth in these regions. The numbers here tell a clear story: from July 2021 to July 2022 four states — Florida, Texas, North Carolina, and Georgia — grew by a total of more than 1 million people, while the net population growth across the entire United States was only 1.25 million.

In summary, we are thrilled to see the Fund outperform indices in 2022, its first year of operations. It is a testament to both the hard work of the team at Fundrise as well as the value of identifying the right macro trends. However, as usual, we also want to manage expectations. It would be a mistake to celebrate this performance without acknowledging that it represents years of groundwork and the extensive experience of the Fundrise team.

Onward,

![](tm237479d1_ncsrimg003.jpg)

Benjamin Miller

Chief Executive Officer

Fundrise Advisors, LLC

**Fundrise Income Real Estate Fund, LLC**

**Schedule of Investments**

(Amounts in thousands)

---

| | | | |
|:---|:---|:---|:---|
| **Par/Shares** | **Description** | **Acquisition <br> Date** | **Value as of<br> December <br> 31, 2022** |
|  | **Private Real Estate – 79.7%** |  |  |
|  | &nbsp;&nbsp;&nbsp;**Equity – 16.6%** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Multifamily – 7.8%** |  |  |
| N/A (5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23Hundred JV, LP \| Plano, TX (Cost - $4,232) (1)(2) | (6) | $6943 |
| N/A (5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR MP Brandon Glen JV, LLC \| Conyers, GA (Cost - $6,925) (1)(2) | (6) | 9868 |
| N/A (5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fundrise Insight Two, LLC \| Arlington, VA (Cost - $1) (1)(2)(4) | (6) | 1 |
| N/A (5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liberty Hills JV, LP \| Houston, TX (Cost - $7,031) (1)(2) | (6) | 6806 |
| N/A (5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luxe JV, LP \| Tampa, FL (Cost - $7,670) (1)(2) | (6) | 7480 |
| N/A (5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Presley JV, LP \| Charlotte, NC (Cost - $4,852) (1)(2) | (6) | 4785 |
| N/A (5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The View JV, LP \| Lewisville, TX (Cost - $6,105) (1)(2) | (6) | 6047 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Multifamily (Cost - $36,816)** |  | $**41930** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Development – 8.7%** |  |  |
| N/A (5) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income 1 TRS, LLC \| Various locations (Cost - $41,961) (1)(2)(3)(4) | (6) | $46661 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Development (Cost - $41,961)** |  | $**46661** |
|  | &nbsp;&nbsp;&nbsp;**Total Equity (Cost - $78,777)** |  | $**88591** |
|  | &nbsp;&nbsp;&nbsp;**Preferred Equity – 9.7%** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Multifamily – 9.3%** |  |  |
| $4500 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Breckenridge Group Springfield Missouri, LLC \| Springfield, MO 13.50%, 01/01/26 (Cost - $4,500) (1)(2) | (6) | $4505 |
| 6820 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C V Fort Myers Investor, LLC \| Fort Myers, FL 10.50%, 2.50% PIK, 07/08/2023 (Cost - $8,477) (1)(2)(7) | (6) | 8477 |
| 6835 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fort Myers Reef Holdings, LLC \| Fort Myers, FL 10.90%, 4.07% PIK, 09/01/28 (Cost - $8,493) (1)(2)(4)(7) | (6) | 8513 |
| 18643 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SFR Reflections I, LLC \| Sunrise, FL 10.10%, 4.10% PIK, 12/01/30 (Cost - $16,700) (1)(2)(7) | (6) | 16753 |
| 6587 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WP Gainesville MF-FL Holdings, LLC \| Gainesville, FL 11.00%, 11.00% PIK, 09/21/25 (Cost - $6,990) (1)(2)(7) | (6) | 6946 |
| 3750 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WP Walcott Hackensack Sub, LLC \| Hackensack, NJ 11.00%, 11.00% PIK, 01/29/24 (Cost - $4,394) (1)(2)(7) | (6) | 4395 |
| 1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Encore Narcoossee, LLC \| Orlando, FL 9.85%, 9.85% PIK, 12/29/25 (Cost - $1) (1)(2) | 06/29/2022 | 1 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Multifamily (Cost - $49,555)** |  | $**49590** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Hospitality – 0.4%** |  |  |
| $2275 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Y Hotel Leveraged Lender, LLC \| Pittsburgh, PA 15.50%, 11/13/19 (Cost - $2,229) (1)(2)(3)(8) | (6) | $2330 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Hospitality (Cost - $2,229)** |  | $**2330** |
|  | &nbsp;&nbsp;&nbsp;**Total Preferred Equity (Cost - $51,784)** |  | $**51920** |
|  | &nbsp;&nbsp;&nbsp;**Mezzanine Debt – 8.6%** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Multifamily** |  |  |
| $16423 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NexMetro Grand Member, LLC \| El Mirage, AZ 10.55%, 10.55% PIK, 01/20/24 (Cost - $18,079) (1)(2)(7) | (6) | $17700 |
| 10755 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NexMetro Lakeridge Member, LLC \| Grand Prairie, TX 12.50%, 12.50% PIK, 11/20/23 (Cost - $12,777) (1)(2)(7) | (6) | 12778 |
| 12612 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NexMetro Oakridge Member, LLC \| Forney, TX 12.50%, 12.50% PIK, 10/23/23 (Cost - $15,556) (1)(2)(7) | (6) | 15557 |
|  | &nbsp;&nbsp;&nbsp;**Total Mezzanine Debt (Cost - $46,412)** |  | $**46035** |

---

---

| | | | |
|:---|:---|:---|:---|
| **Par/Shares** | **Description** | **Acquisition <br> Date** | **Value as of<br> December <br> 31, 2022** |
|  | &nbsp;&nbsp;&nbsp;**Senior Debt – 15.3%** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Multifamily – 3.5%** |  |  |
| $3350 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1550 South Fairfax, LLC, 11.00%, 04/15/22 \| Los Angeles, CA (Cost - $3,350) (1)(2)(8) | (6) | $3350 |
| 3000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4927 Washington, LLC, 12.90%, 04/19/22 \| Los Angeles, CA (Cost - $3,000) (1)(2)(8) | (6) | 3000 |
| 12500 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vose-Van Nuys, LLC, 10.25%, 01/15/23 \| Los Angeles, CA (Cost - $12,463) (1)(2) | (6) | 12463 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Multifamily (Cost - $18,813)** |  | $**18813** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Land – 11.8%** |  |  |
| $28000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Station East Owner, LLC, 10.75%, 06/30/23 \| Union City, CA (Cost - $28,000) (1)(2) | (6) | $28000 |
| 19255 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Station East Owner II, LLC, 9.50%, 11/20/23 \| Union City, CA (Cost - $19,255) (1)(2) | (6) | 19255 |
| 16000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Station East Owner III, LLC, 10.50%, 06/15/23 \| Union City, CA (Cost - $16,000) (1)(2) | (6) | 16000 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Land (Cost - $63,255)** |  | $**63255** |
|  | &nbsp;&nbsp;&nbsp;**Total Senior Debt (Cost - $82,068)** |  | $**82068** |
|  | &nbsp;&nbsp;&nbsp;**Promissory Notes – 29.6%** |  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Development** |  |  |
| $4295 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Clinton Corner, LLC, 10.50%, 09/30/23 \| Dade City, FL (Cost - $4,295) (1)(2)(4) | (6) | $4300 |
| 2124 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Vaughn Farms, LLC, 10.50%, 09/30/23 \| Conyers, GA (Cost - $2,124) (1)(2)(4) | (6) | 2127 |
| 193 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Wilsons Walk, LLC, 9.00%, 10/04/23 \| Clayton, NC (Cost - $193) (1)(2)(4) | (6) | 193 |
| 3587 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Arbor Place, LLC, 9.50%, 07/21/23 \| Douglasville, GA (Cost - $3,587) (1)(2)(4) | (6) | 3570 |
| 28160 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Beeson, LLC, 8.50%, 08/31/23 \| Katy, TX (Cost - $28,160) (1)(2)(4) | (6) | 28216 |
| 7733 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Berry Creek, LLC, 9.50%, 03/09/24 \| Georgetown, TX (Cost - $7,733) (1)(2)(4) | (6) | 7640 |
| 16056 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Eastwood, LLC, 9.00%, 11/17/23 \| Jarrell, TX (Cost - $16,056) (1)(2)(4) | (6) | 15943 |
| 8462 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Meadow Park, LLC, 9.50%, 09/01/23 \| Melissa, TX (Cost - $8,462) (1)(2)(4) | (6) | 8457 |
| 7702 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Providence Gardens, LLC, 8.50%, 02/24/24 \| Davenport, FL (Cost - $7,702) (1)(2)(4) | (6) | 7480 |
| 4066 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Washington Street, LLC, 9.00%, 11/15/23 \| Covington, GA (Cost - $4,066) (1)(2)(4) | (6) | 4038 |
| 1294 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Castlewood, LLC, 9.00%, 05/02/24 \| Taylor, TX (Cost - $1,294) (1)(2)(4) | 05/02/2022 | 1274 |
| 4015 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Crescent Mills, LLC, 9.00%, 05/02/24 \| Smithfield, NC (Cost - $4,015) (1)(2)(4) | 05/03/2022 | 3960 |
| 4054 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Holmes, LLC, 8.00%, 05/27/24 Myrtle Beach, SC (Cost - $4,054) (1)(2)(4) | 05/27/2022 | 4000 |
| 902 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Tom Miller, LLC, 9.00%, 06/15/24 \| Bethlehem, GA (Cost - $902) (1)(2)(4) | 06/15/2022 | 886 |
| 8135 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Berry Hills, LLC, 8.50%, 07/29/24 \| Georgetown, TX (Cost - $8,135) (1)(2)(4) | 07/29/2022 | 8056 |
| 3682 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Legacy Hills, LLC, 8.50%, 07/29/24 \| Celina, TX (Cost - $3,682) (1)(2)(4) | 07/29/2022 | 3628 |
| 4268 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Trailside, LLC, 8.50%, 08/22/24 \| Mount Dora, FL (Cost - $4,268) (1)(2)(4) | 08/22/2022 | 4128 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Par/Shares** | **Description** | **Acquisition <br> Date** | **Value as of<br> December <br> 31, 2022** |
| 9442 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Wong Tract, LLC, 8.50%, 08/31/24 \| Austin, TX (Cost - $9,442) (1)(2)(4) | 08/31/2022 | 9373 |
| 17162 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Swope LB, LLC, 8.00%, 08/31/24 \| Land O'Lakes, FL (Cost - $17,162) (1)(2)(4) | 08/31/2022 | 16751 |
| 12921 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Swope LH, LLC, 8.50%, 08/31/24 \| Land O'Lakes, FL (Cost - $12,920) (1)(2)(4) | 08/31/2022 | 12820 |
| 5626 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Willow Landing, LLC, 9.50%, 09/13/24 \| Nashville, TN (Cost - $5,626) (1)(2)(4) | 09/13/2022 | 5633 |
| 5724 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FR Cade's Bluff, LLC, 9.50%, 09/23/24 \| Mt. Juliet, TN (Cost - $5,724) (1)(2)(4) | 09/23/2022 | 5734 |
|  | &nbsp;&nbsp;&nbsp;**Total Promissory Notes (Cost - $159,602)** |  | $**158207** |
|  | &nbsp;&nbsp;&nbsp;**Total Private Real Estate (Cost - $418,643)** |  | $**426821** |
|  | &nbsp;&nbsp;&nbsp;**Residential Mortgage-Backed Securities – 8.2%** |  |  |
|  | &nbsp;&nbsp;&nbsp;**Non-U.S. Government Agency Issues** |  |  |
| $22000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New Residential Mortgage Loan Trust 2022-SFR2 (F Class), 4.00%, 09/17/27 (Cost - $17,665) (9) |  | $17653 |
| 14745 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Progress Residential 2022-SFR7 (E1 Class), 6.75%, 10/17/27 (Cost - $14,134) (9) |  | 13834 |
| 14067 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bridge 2022-SFR1 Trust (E1 Class), 6.30%, 11/17/25 (Cost - $12,474) (9) |  | 12562 |
|  | &nbsp;&nbsp;&nbsp;**Total Residential Mortgage-Backed Securities (Cost - $44,273)** |  | $**44049** |
|  | **Corporate Bonds – 0.01%** |  |  |
| $42 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Essex Portfolio, LP, 3.25%, 05/01/23 (Cost - $42) |  | $42 |
|  | **Total Corporate Bonds (Cost - $42)** |  | $**42** |
|  | **Short-Term Investments – 13.9%** |  |  |
| 74094 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allspring Government Money Market Fund (Select Class), 4.18%, (Cost - $74,094) (10) |  | $74094 |
| 436 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Northern Institutional Government Select, 3.60% (Cost - $437) (10) |  | 436 |
|  | **Total Short-Term Investments (Cost - $74,531)** |  | $**74530** |
|  | **Total Investments – 101.9% (Cost - $537,489)** |  | $**545442** |
|  | **Liabilities in excess of other assets – (1.9%)** |  | $**(10157)** |
|  | **Total Net Assets – 100.0%** |  | $**535285** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Restricted security. The
 aggregate value of restricted securities at December 31, 2022 is approximately $426,821,000 and represents 79.7% of net assets. See *<u>[Note 2](#va_001)</u>, Summary of Significant Accounting Policies – Fair Value Measurement* for
 additional information.

(2) Represents investments
 classified as Level 3 within the three-tier fair value hierarchy. See the accompanying notes to the financial statements
 for an explanation of this hierarchy, as well as a list of significant unobservable inputs used in the valuation of these instruments.

(3) Represents a non-income
 producing investment.

(4) Represents an investment
 in an affiliate. See *[Note 2](#va_001) , Summary of Significant Accounting Policies* for additional information.

(5) The Fund owns LLC or LP membership interests in restricted security not traded in public markets.

(6) These assets were acquired
 by the Fund on March 31, 2022, in connection with the Merger. See *<u>[Note 6](#va_002)</u>, Investment Manager Fees and Other Related Party Transactions – Tax-free Reorganization* for more information on the assets acquired
 from the Merger.

(7) Rate disclosed for investments
 with payment in kind (PIK) interest. See *<u>[Note 2](#va_001)</u>, Summary of Significant Accounting Policies* for more information on recognition policy.

(8) As of December 31, 2022,
 this investment had incurred an event of default due to non-payment of outstanding principal and contractual interest, and is non-accrual.
 The real estate investment is secured by the underlying property.

(9) Security is exempt from
 registration under Rule 144A of the Securities Act of 1933. These securities may be resold to qualified institutional buyers in transactions
 exempt from registration.

(10) Rate disclosed is representative
 of the Fund's seven-day effective yield as of December 31, 2022.

See accompanying notes to the financial statements.

**Fundrise Income Real Estate Fund, LLC**

**Statement of Assets and Liabilities**

(Amounts in thousands, except share and per share data)

---

| | |
|:---|:---|
|  | **As of<br> December 31, 2022** |
| **Assets** |  |
| &nbsp;&nbsp;&nbsp;Investments in unaffiliated entities, at fair value (cost $327,432) | $332060 |
| &nbsp;&nbsp;&nbsp;Investments in non-controlled affiliates, at fair value (cost $168,096) | 166721 |
| &nbsp;&nbsp;&nbsp;Investments in controlled affiliates, at fair value (cost $41,961) | 46661 |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | 2341 |
| &nbsp;&nbsp;&nbsp;Interest receivable from investments in unaffiliated entities | 1270 |
| &nbsp;&nbsp;&nbsp;Interest receivable from investments in non-controlled affiliates | 1200 |
| &nbsp;&nbsp;&nbsp;Deferred offering costs | 49 |
| &nbsp;&nbsp;&nbsp;Other assets | 32 |
| **Total Assets** | $**550334** |
| **Liabilities** |  |
| &nbsp;&nbsp;&nbsp;Distributions payable | $9855 |
| &nbsp;&nbsp;&nbsp;Interest received in advance | 2081 |
| &nbsp;&nbsp;&nbsp;Settling subscriptions | 1973 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 643 |
| &nbsp;&nbsp;&nbsp;Accrued management fees | 383 |
| &nbsp;&nbsp;&nbsp;Redemptions payable | 58 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 39 |
| &nbsp;&nbsp;&nbsp;Payable to related party | 17 |
| **Total Liabilities** | $**15049** |
| **Total Net Assets** | $**535285** |
| **Components of Net Assets:** |  |
| &nbsp;&nbsp;&nbsp;Paid in capital | $526191 |
| &nbsp;&nbsp;&nbsp;Distributable earnings | 9094 |
| **Total Net Assets** | $**535285** |
| **Net Asset Value:** |  |
| &nbsp;&nbsp;&nbsp;Net assets | $**535285** |
| &nbsp;&nbsp;&nbsp;Common shares outstanding as of December 31, 2022; unlimited shares authorized | **53505592** |
| **Net Asset Value Per Share** | $**10.00** |

---

See accompanying notes to the financial statements.

**Fundrise Income Real Estate Fund, LLC**

**Statement of Operations**

(Amounts in thousands)

---

| | |
|:---|:---|
|  | **For the Period<br> February 3, 2022<sup>(1)</sup> to December 31, 2022** |
| **Investment Income** |  |
| &nbsp;&nbsp;&nbsp;Interest income from investments in unaffiliated entities | $10459 |
| &nbsp;&nbsp;&nbsp;Interest income from investments in non-controlled affiliates | 8219 |
| &nbsp;&nbsp;&nbsp;Interest income – PIK from investments in unaffiliated entities | 4742 |
| &nbsp;&nbsp;&nbsp;Dividend income from investments in unaffiliated entities | 1605 |
| &nbsp;&nbsp;&nbsp;Other income | 570 |
| &nbsp;&nbsp;&nbsp;Interest income – PIK from investments in non-controlled affiliates | 335 |
| **Total Investment Income** | $**25930** |
| **Expenses** |  |
| &nbsp;&nbsp;&nbsp;Management fees | $3104 |
| &nbsp;&nbsp;&nbsp;Audit and tax fees | 493 |
| &nbsp;&nbsp;&nbsp;Bank and custody fees | 391 |
| &nbsp;&nbsp;&nbsp;Miscellaneous expenses | 310 |
| &nbsp;&nbsp;&nbsp;Legal fees | 274 |
| &nbsp;&nbsp;&nbsp;Offering costs | 150 |
| &nbsp;&nbsp;&nbsp;Directors' fees | 146 |
| &nbsp;&nbsp;&nbsp;Insurance fees | 134 |
| &nbsp;&nbsp;&nbsp;Transfer agent fees | 91 |
| &nbsp;&nbsp;&nbsp;Organizational costs | 79 |
| &nbsp;&nbsp;&nbsp;Real estate fees – related party | 17 |
| &nbsp;&nbsp;&nbsp;Financial printing fees | 14 |
| **Total Expenses** | $**5203** |
| Less: Expenses waived or borne by the Adviser (Note 6) | $(79) |
| Fees recouped by the Adviser (Note 6) | $321 |
| **Net Expenses** | $**5445** |
| **Net Investment Income (Loss)** | $**20485** |
| **Net Realized and Unrealized Gain (Loss) on Investments** |  |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on investments in unaffiliated entities | $8399 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation/depreciation on investments in unaffiliated entities | (8462) |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation/depreciation on investments in non-controlled affiliates | (1376) |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation/depreciation on investments in controlled affiliates | 3567 |
| **Total Net Realized and Unrealized Gain (Loss) on Investments** | $**2128** |
| **Net Increase in Net Assets Resulting from Operations** | $**22613** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Effective date of the Fund's
 Registration Statement.

See accompanying notes to the financial statements.

**Fundrise Income Real Estate Fund, LLC**

**Statement of Changes in Net Assets**

(Amounts in thousands)

---

| | |
|:---|:---|
|  | **For the Period <br> February 3, 2022<sup>(1)</sup> to December 31, 2022** |
| **Operations:** |  |
| &nbsp;&nbsp;&nbsp;Net investment income (loss) | $20485 |
| &nbsp;&nbsp;&nbsp;Net realized gain (loss) on investments | 8399 |
| &nbsp;&nbsp;&nbsp;Net change in unrealized appreciation/depreciation on investments | (6271) |
| **Net Increase in Net Assets Resulting from Operations** | $**22613** |
| **Distributions to Shareholders:** |  |
| &nbsp;&nbsp;&nbsp;From distributable earnings | $(22638) |
| **Net (Decrease) in Net Assets from Distributions** | $**(22638)** |
| **Capital Share Transactions:** |  |
| &nbsp;&nbsp;&nbsp;Proceeds from merger transaction (Note 6) | $452385 |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of shares | 114006 |
| &nbsp;&nbsp;&nbsp;Distributions reinvested | 2305 |
| &nbsp;&nbsp;&nbsp;Repurchases of shares | (33486) |
| **Net Increase in Net Assets from Capital Share Transactions** | $**535210** |
| **Net Assets:** |  |
| **Beginning of Period** | $**100** |
| **End of Period** | $**535285** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Effective date of the Fund's
 Registration Statement.

See accompanying notes to the financial statements.

**Fundrise Income Real Estate Fund, LLC**

**Statement of Cash Flows**

(Amounts in thousands)

---

| | |
|:---|:---|
|  | **For the Period <br> February 3, 2022<sup>(1)</sup> to December 31,<br> 2022** |
| **Operating Activities:** |  |
| &nbsp;&nbsp;&nbsp;Net Increase in Net Assets Resulting from Operations | $22613 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of investments in unaffiliated entities | 50592 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of investments in non-controlled affiliates | 5023 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of investments in unaffiliated entities | (130403) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of investments in non-controlled affiliates | (81976) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of investments in controlled affiliates | (18387) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Return of capital distributions from investments in unaffiliated entities | 745 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation/depreciation on investments in unaffiliated entities | 8462 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation/depreciation on investments in non-controlled affiliates | 1376 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation/depreciation on investments in controlled affiliates | (3567) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized gain on investments in unaffiliated entities | (8399) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in interest income - PIK from investments in unaffiliated entities | (4742) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in interest income - PIK from investments in non-controlled affiliates | (335) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net accretion of premiums and discounts | (424) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred offering costs | 150 |
| &nbsp;&nbsp;&nbsp;Change in assets and liabilities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (increase) decrease in interest receivable from investments in unaffiliated entities | (855) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (increase) decrease in interest receivable from investments in non-controlled affiliates | (595) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (increase) decrease in deferred offering costs | (11) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (increase) decrease in other assets | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in due from advisers | 321 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in accounts payable and accrued expenses | 129 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in interest received in advance | 310 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in other liabilities | (79) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in accrued management fees | (532) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in payable to adviser | (519) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in payable to related party | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in settling subscriptions | 1973 |
| &nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | (159090) |
| **Financing Activities:** |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of common shares | 114006 |
| &nbsp;&nbsp;&nbsp;Cash paid for shares repurchased | (33428) |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents received in connection with the Merger | 99095 |
| &nbsp;&nbsp;&nbsp;Distributions paid<sup>(2)</sup> | (18342) |
| &nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | 161331 |
| **Net Increase (Decrease) in Cash and Cash Equivalents** | **2241** |
| Cash and cash equivalents, beginning of period | 100 |
| Cash and cash equivalents, end of period | $2341 |
| **Supplemental Disclosure of Non-Cash Activity:** |  |
| &nbsp;&nbsp;&nbsp;Dividends reinvested | $2305 |
| &nbsp;&nbsp;&nbsp;Net assets (exclusive of cash) acquired as a result of the Merger | $353290 |

---

(1) Effective date
 of the Fund's Registration Statement.

(2) Includes cash distributions of $7.9 million declared prior to merger date for the Target companies. See *<u>[Note 6](#va_002)</u>, Investment Manager Fees and Other Related Party Transactions – Tax-free Reorganization* for more information on the Merger.

See accompanying notes to the financial statements.

**Fundrise Income Real Estate Fund, LLC**

**Financial Highlights**

---

| | |
|:---|:---|
| **Per share operating performance for a share outstanding throughout the period<sup>(1)</sup>** | **For the Period<br> February 3, 2022<sup>(5)</sup> to <br> December 31, 2022** |
| **Net Asset Value, Beginning of Period** | $**10.00** |
| **Income from Investment Operations** |  |
| &nbsp;&nbsp;&nbsp;Net investment income (loss) | $0.42 |
| &nbsp;&nbsp;&nbsp;Net realized and unrealized gain (loss) on investments | 0.04 |
| **Total Income from Investment Operations** | $**0.46** |
| **Distributions to Common Shareholders** |  |
| &nbsp;&nbsp;&nbsp;Net investment income | $(0.40) |
| &nbsp;&nbsp;&nbsp;Net realized gain | (0.06) |
| **Total Distributions to Common Shareholders** | $**(0.46)** |
| **Net Asset Value, End of Period** | $**10.00** |
| **Total Investment Return Based on Net Asset Value (2)** | **4.60%** |
| **Ratios and Supplemental Data** |  |
| &nbsp;&nbsp;&nbsp;Net assets, end of period (thousands) | $535285 |
| &nbsp;&nbsp;&nbsp;Ratio of total expenses to average net assets (3)(7) | 1.42% |
| &nbsp;&nbsp;&nbsp;Ratio of net expenses to average net assets (3)(4)(7) | 1.49% |
| &nbsp;&nbsp;&nbsp;Ratio of net investment income (loss) to average net assets (3)(4)(7) | 5.61% |
| &nbsp;&nbsp;&nbsp;Portfolio turnover rate (6) | 12.52% |

---

(1) Based on average
 shares outstanding.

(2) Total investment return
 based on net asset value was calculated from the date the Fund commenced investment operations, April 1, 2022, and is not annualized.
 Total investment return based on net asset value is based upon the change in net asset value per share between the opening and ending
 net asset values per share and assumes that dividends are reinvested in accordance with the Fund's dividend reinvestment policy. Returns
 shown do not reflect the deduction of taxes that a Shareholder would pay on Fund distributions or the repurchase of Fund shares.

(3) Ratios were calculated from the date the Fund commenced investment operations, April 1, 2022, and
 are annualized.

(4) The ratio is net of a waiver
 of 0.02% and is inclusive of fee recoupment of 0.07%. See *<u>[Note 6](#va_002)</u>, Investment Manager Fees and Other Related Party Transactions* for more information.

(5) Effective date of the Fund's
 Registration Statement.

(6) Portfolio
 turnover rate was calculated from the date the Fund commenced investment operations, April 1, 2022, and is not annualized. This alternative
 presents, in all material aspects, the most accurate portrayal of portfolio turnover.

(7) Expenses
 do not include operating expenses of the underlying investments.

See accompanying notes to the financial statements.

**Fundrise Income Real Estate Fund, LLC**

**Notes to Financial Statements**

**For the Period Ended December 31, 2022**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Formation and Organization** 

Fundrise Income Real Estate Fund, LLC (the "Fund" or the "Registrant") is a Delaware limited liability company and intends to elect to be taxed as a real estate investment trust (a "REIT") for U.S. federal income tax purposes under the Internal Revenue Code of 1986, as amended (the "Code"), commencing with its taxable year ending December 31, 2022. The Fund is organized as a continuously offered, non-diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"), that operates as an interval fund. The Fund's registration statement was declared effective on February 3, 2022. The Fund commenced investment operations on April 1, 2022, following the tax-free reorganization (the "Merger") on March 31, 2022. See *<u>[Note 6](#va_002)</u>, Investment Manager Fees and Other Related Party Transactions* for more information.

The Fund's investment objective is to seek current income from which to pay attractive, consistent cash distributions while preserving capital. Generally, the Fund's investment strategy is to invest at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in residential and commercial real estate, the securities of real estate and real estate-related issuers, and real estate-related loans or other real estate-related debt securities.

The investment adviser to the Fund is Fundrise Advisors, LLC (the "Adviser"), an investment adviser registered with the U.S. Securities and Exchange Commission ("SEC") under the Investment Advisers Act of 1940, as amended. The Adviser is a wholly-owned subsidiary of Rise Companies Corp. ("Rise Companies" or the "Sponsor"), the Fund's sponsor. Subject to the supervision of the Board of Directors of the Fund (the "Board"), the Adviser is responsible for directing the management of the Fund's business and affairs, managing the Fund's day-to-day affairs, and implementing the Fund's investment strategy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Summary of Significant Accounting Policies** 

***Basis of Presentation***

The accompanying financial statements of the Fund are prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). The Fund is an investment company and follows the accounting and reporting guidance in the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 946, Financial Services – Investment Companies ("ASC 946"). The Fund maintains its financial records in U.S. dollars and follows the accrual basis of accounting.

The estimates and assumptions underlying these financial statements are based on information available as of December 31, 2022, including judgments about the financial market and economic conditions which may change over time.

As a result of the ongoing global COVID-19 outbreak, economic uncertainties persist that could have an adverse impact on economic and market conditions. The global impact of the pandemic has been rapidly evolving and presents material uncertainty and risk with respect to the Fund's performance and financial results.

***Estimates***

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

***Cash and Cash Equivalents***

Cash and cash equivalents may consist of demand deposits and highly liquid investments with original maturities of three months or less. The Fund may invest its cash in an institutional money market fund, which is valued at the net asset value ("NAV") as of the close of each business day. The Fund's uninvested cash is maintained with a high credit quality financial institution. To date, the Fund has not experienced any losses with respect to cash and cash equivalents.

***Interest Received in Advance***

When a real estate debt investment, including mezzanine debt, senior debt, and promissory notes, is funded net of an interest reserve holdback, and is held by the Fund, the Fund accounts for the holdback funds by classifying them as interest received in advance. As interest is incurred by the borrower, the Fund recognizes interest income and reduces the interest received in advance until such time that the reserve is exhausted or the real estate debt investment redeems. Any remaining interest received in advance will be applied to the real estate debt investment balance upon redemption.

***Valuation Oversight***

In connection with SEC Rule 2a-5, effective September 2022, the Board has approved the Adviser as the Fund's Valuation Designee ("Valuation Designee"), to provide administration and oversight of the Fund's valuation policies and procedures. The Fund values its investments in accordance with such procedures. Generally, portfolio securities and other assets for which market quotations are readily available are valued at market value, which is ordinarily determined on the basis of official closing prices or the last reported sales prices. If market quotations are not readily available or are deemed unreliable, the Fund will use the fair value of the securities or other assets as determined by the Adviser in good faith, taking into consideration all available information and other factors that the Adviser deems pertinent, in each case subject to the overall supervision and responsibility of the Board.

In calculating the Fund's net asset value, the Adviser, subject to the oversight of the Board, uses various valuation methodologies. To the extent practicable, the Adviser generally endeavors to maximize the use of observable inputs and minimize the use of unobservable inputs by requiring that the most observable inputs are to be used when available. The availability of valuation techniques and observable inputs can vary from investment to investment and are affected by a wide variety of factors. When valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment, and may involve alternative methods to obtain fair values where market prices or market-based valuations are not readily available. As a result, the Adviser may exercise a higher degree of judgment in determining fair value for certain securities or other assets.

***Fair Value Measurement***

The following is a summary of certain methods generally used currently to value investments of the Fund under the Fund's valuation procedures:

The Fund applies FASB ASC Topic 820, Fair Value Measurement, as amended, which establishes a framework for measuring fair value in accordance with U.S. GAAP and required disclosures of fair value measurement. U.S. GAAP defines the fair value as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date.

The Fund determines the fair value of certain investments in accordance with the fair value hierarchy that requires an entity to maximize the use of observable inputs. The fair value hierarchy includes the following three levels based on the objectivity of the inputs, which were used for categorizing the assets or liabilities for which fair value is being measured and reported:

Level 1 – Quoted market prices in active markets for identical assets or liabilities.

Level 2 – Significant other observable inputs (e.g., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs).

Level 3 – Valuation generated from model-based techniques that use inputs that are significant and unobservable in the market. These unobservable assumptions reflect estimates of inputs that market participants would use in pricing the asset or liability. Valuation techniques may include use of discounted cash flow methodologies or similar techniques, which incorporate management's own estimates of assumptions that market participants would use in pricing the instrument or other valuation assumptions that require significant management judgment or estimation.

The Fund's real estate equity investments are typically fair valued based on a discounted cash flow or other income approach, or by market approaches like sales comparisons and cost approaches. The Fund accounts for properties at the individual property level and such assets are fair valued using inputs that consider property-level data that is gathered and evaluated periodically to reflect new information (e.g., rental payment history) regarding the property.

Properties held through joint ventures generally will be valued in a manner that is consistent with the methods described above. Once the value of a property held by the joint venture is determined and the Fund determines the fair value of any other assets and liabilities of the joint venture, the value of the Fund's interest in the joint venture is then determined.

The Fund's real estate debt investments in loans, including senior loans, mezzanine loans, and promissory notes, fair value is generally determined by the yield method using a discounted cash flow model using current market rates derived from observable market data.

Investments in registered investment companies, including money market funds, are valued at the NAV as of the close of each business day. To the extent these securities are actively traded, they are categorized in Level 1 of the fair value hierarchy.

Fixed income securities may be valued by an outside pricing service overseen by the Valuation Committee. The pricing service may employ a pricing model that takes into account, among other things, bids, yield spreads and/or other market data and specific security characteristics. In the event prices or quotations are not readily available or that the application of these valuation methods results in a price for an investment that is deemed to be not representative of the fair value of such investment, fair value will be determined in good faith by the Valuation Committee, in accordance with the valuation policy and procedures approved by the Board. To the extent these securities are actively traded, they are categorized in Level 2 of the fair value hierarchy.

Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Fund's investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material.

The following is a summary of the inputs used as of December 31, 2022, in valuing the Fund's investments carried at fair value *(amounts in thousands)*:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Description** | **Quoted Prices<br> (Level 1)** | **Other<br> Significant<br> Observable<br> Inputs<br> (Level 2)** | **Significant<br> Unobservable<br> Inputs <br> (Level 3)** | **Total** |
| Private Real Estate Equity | $— | $— | $88591 | $88591 |
| Private Real Estate Preferred Equity |  |  | 51920 | 51920 |
| Private Real Estate Mezzanine Debt |  |  | 46035 | 46035 |
| Private Real Estate Senior Debt |  |  | 82068 | 82068 |
| Private Real Estate Promissory Notes |  |  | 158207 | 158207 |
| Corporate Bonds |  | 42 |  | 42 |
| Residential Mortgage-Backed Securities |  | 44049 |  | 44049 |
| Short-Term Investments | 74530 |  |  | 74530 |
| **Total Investments** | $**74530** | $**44091** | $**426821** | $**545442** |

---

The following is a summary of quantitative information about the significant unobservable inputs of the Fund's Level 3 investments as of December 31, 2022 *(amounts in thousands)*. The weighted average range of unobservable inputs is based on the fair value of investments. Various valuation techniques were used in the valuation of certain investments and weighted based on the level of significance. The tables are not intended to be all-inclusive but instead capture the significant unobservable inputs relevant to the Fund's determination of fair value.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Investment** | **Fair Value** | **Valuation<br> Technique** | **Unobservable<br> Input <sup>(1)</sup>** | **Range<br> (Weighted<br> Average)** | **Impact to<br> Valuation from<br> an Increase in<br> input <sup>(2)</sup>** |
| Private Real Estate Equity | $88591 | Yield Method | Discount Rate | 9.0% - 11.0% (10.2%) | Decrease |
| Private Real Estate Preferred Equity | 49590 | Yield Method | Discount Rate | 9.3% - 12.5% (9.9%) | Decrease |
| Private Real Estate Preferred Equity | 2330 | Liquidation Approach | Liquidation Value | $10600 - $10600 ($10600) | Increase |
| Private Real Estate Mezzanine Debt | 46035 | Yield Method | Discount Rate | 13.0% - 13.5% (13.2%) | Decrease |
| Private Real Estate Senior Debt | 82068 | Yield Method | Discount Rate | 10.0% - 11.0% (10.2%) | Decrease |
| Private Real Estate Promissory Notes | 158207 | Yield Method | Discount Rate | 8.8% - 10.5% (9.4%) | Decrease |
| **Total Investments** | $**426821** |  |  |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Represents the significant
 unobservable inputs used to fair value the financial instruments of the investment vehicles. The fair value of such financial instruments
 is the largest component of the valuation of such entity as a whole.

(2) Represents the expected
 directional change in the fair value of the Level 3 investments that would result from an increase in the corresponding input. A
 decrease to the unobservable input would have the opposite effect. Significant changes in these inputs could result in significantly
 higher or lower fair value measurements.

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value *(amounts in thousands)*:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Investment** | **Private** <br> **Real** <br> **Estate** <br> **Equity** | **Private <br> Real<br> Estate<br> Preferred <br> Equity** | **Private<br> Real Estate<br> Mezzanine<br> Debt** | **Private<br> Real Estate<br> Senior<br> Debt** | **Private<br> Real Estate<br> Promissory<br> Notes** | **Total** |
| Balance as of April 1, 2022<sup>(1)</sup> | $114245 | $47772 | $34002 | $84695 | $82651 | $363365 |
| Purchases | 18388 | 3295 | 8728 |  | 81975 | 112386 |
| Accrued discounts (premiums) |  |  |  |  |  |  |
| PIK interest and dividends |  | 1348 | 3729 |  |  | 5077 |
| Net realized gain (loss) | 8399 |  |  |  |  | 8399 |
| Net change in unrealized appreciation/depreciation | (4204) | 5 | (424) | (27) | (1396) | (6046) |
| Return of capital distributions | (745) |  |  |  |  | (745) |
| Sales | (47492) | (500) |  | (2600) | (5023) | (55615) |
| Transfers into Level 3 |  |  |  |  |  |  |
| Transfers out of Level 3 | - | - | - | - | - | - |
| **Balance as of December 31, 2022** | $**88591** | $**51920** | $**46035** | $**82068** | $**158207** | $**426821** |
| Net change in unrealized appreciation/depreciation for the period ended December 31, 2022, related to Level 3 investments held at December 31, 2022 | $(4204) | $5 | $(424) | $(27) | $(1396) | $(6046) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Commencement of investment
 operations.

The Fund invests in one or more affiliated entities. As of December 31, 2022, the investments in affiliates consist of investments in real estate investment vehicles used to acquire, hold, and finance multifamily properties and land for future development. The affiliated investment vehicles have not been registered under the Securities Act of 1933, as amended, and thus are subject to restrictions on resale.

As defined in the 1940 Act, an investment is deemed to be a "Controlled Affiliate" of a fund when a fund owns, either directly or indirectly, 25% or more of the affiliated fund's outstanding shares or has the power to exercise control over management or policies of such fund.

During the period ended December 31, 2022, investments in affiliates were as follows *(amounts in thousands)*:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Affiliate** | **Balance <br> as of<br> April 1, <br> 2022<sup>(1)</sup>** | **Purchases<br> at cost** | **Proceeds<br> from sales** | **Net realized<br> gain (loss)<br> and capital<br> gain<br> distributions** | **PIK <br> Interest<br> and <br> Dividend<br> Income** | **Return of<br> capital<br> distribution** | **Change in<br> unrealized<br> appreciation/<br> depreciation** | **Balance <br> as of <br> December 31<br> 2022** |
| Fundrise Insight Two, LLC (2) | $1 | $- | $- | $- | $- | $- | $- | $1 |
| Fort Meyers Reef Holdings, LLC (2) | 8158 |  |  |  | 335 |  | 20 | 8513 |
| Income 1 TRS, LLC (3) | 24707 | 18387 |  |  |  |  | 3567 | 46661 |
| FR Clinton Corner, LLC - Promissory Note | 4295 |  |  |  |  |  | 5 | 4300 |
| FR Vaughn Farms, LLC - Promissory Note | 2124 |  |  |  |  |  | 3 | 2127 |
| FR Wilsons Walk, LLC - Promissory Note | 193 |  |  |  |  |  |  | 193 |
| FR Arbor Place, LLC - Promissory Note | 2087 | 1500 |  |  |  |  | (17) | 3570 |
| FR Beeson, LLC - Promissory Note | 28160 |  |  |  |  |  | 56 | 28216 |
| FR Berry Creek, LLC - Promissory Note | 6333 | 1400 |  |  |  |  | (93) | 7640 |
| FR Eastwood, LLC - Promissory Note | 21079 |  | (5023) |  |  |  | (113) | 15943 |
| FR Holmes, LLC - Promissory Note |  | 4054 |  |  |  |  | (54) | 4000 |
| FR Meadow Park, LLC - Promissory Note | 8462 |  |  |  |  |  | (5) | 8457 |
| FR Providence Gardens, LLC - Promissory Note | 7702 |  |  |  |  |  | (222) | 7480 |
| FR Washington Street, LLC - Promissory Note | 2215 | 1851 |  |  |  |  | (28) | 4038 |
| FR Castlewood, LLC - Promissory Note |  | 1294 |  |  |  |  | (20) | 1274 |
| FR Crescent Mills, LLC - Promissory Note |  | 4015 |  |  |  |  | (55) | 3960 |
| FR Tom Miller, LLC - Promissory Note |  | 902 |  |  |  |  | (16) | 886 |
| FR Berry Hills, LLC - Promissory Note |  | 8135 |  |  |  |  | (79) | 8056 |
| FR Legacy Hills, LLC - Promissory Note |  | 3682 |  |  |  |  | (54) | 3628 |
| FR Trailside, LLC - Promissory Note |  | 4268 |  |  |  |  | (140) | 4128 |
| FR Wong Tract, LLC - Promissory Note |  | 9442 |  |  |  |  | (69) | 9373 |
| FR Swope LB, LLC - Promissory Note |  | 17162 |  |  |  |  | (411) | 16751 |
| FR Swope LH, LLC - Promissory Note |  | 12921 |  |  |  |  | (101) | 12820 |
| FR Willow Landing, LLC - Promissory Note |  | 5626 |  |  |  |  | 7 | 5633 |
| FR Cade's Bluff, LLC - Promissory Note | - | 5724 | - | - | - | - | 10 | 5734 |
| **Total** | $**115516** | $**100363** | $**(5023)** | $**-** | $**335** | $**-** | $**2191** | $**213382** |

---

(1) Commencement
 of investment operations.

(2) Investment represents a
 co-investment arrangement, in which the Fund co-invested alongside an affiliate of the Fund, including those of the Adviser ("Real
 Estate Co-Investment Joint Ventures"). This arrangement is pursuant to the terms and conditions of the exemptive order issued
 by the SEC to the Fund, allowing the Fund to co-invest alongside certain entities affiliated with or managed by the Adviser. The
 Fund's investments in real estate through the securities of a Real Estate Co-Investment Joint Ventures with its affiliates
 is subject to the requirements of the 1940 Act and terms and conditions of an exemptive order the Fund received from the SEC allowing
 the Fund and/or the Real Estate Co-Investment Joint Ventures to co-invest alongside certain entities affiliated with or managed by
 the Adviser (REITs (each, an "eREIT®") or other non-REIT compliant real estate-related funds). The exemptive order
 from the SEC imposes extensive conditions on the terms of any co-investment made by an affiliate of the Fund. The Fund has adopted
 procedures reasonably designed to ensure compliance with the exemptive order and the Board also oversees risk relative to such compliance.

(3) Controlled affiliate.

***Organizational and Offering Costs***

Organizational costs may include, among other things, the cost of organizing as a Delaware limited liability company, the cost of certain legal services and other fees pertaining to the Fund's organization. These costs are expensed as incurred by the Fund.

Offering costs may include, among other things, legal, printing and other expenses pertaining to offering the Fund's Shares. All offering costs paid by the Adviser prior to commencement of operations were recorded as a Payable to Adviser in the Statement of Assets and Liabilities and were initially accounted for as a deferred charge until commencement of operations. Upon commencement of operations, these offering costs are amortized over 12 months on a straight-line basis. Ongoing offering costs will be expensed as incurred.

All organizational and offering costs of the Fund that are pre-commencement expenses paid by the Adviser are subject to reimbursement pursuant to the Investment Management Agreement as described in *<u>[Note 6](#va_002)</u>*, *Investment Manager Fees and Other Related Party Transactions.*

***Income Taxes***

The Fund intends to elect to be taxed as a REIT under the Code, and intends to operate as such, commencing with the taxable year ending December 31, 2022. To qualify as a REIT, the Fund must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the Fund's annual REIT taxable income to the shareholders of the Fund ("Shareholders") (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net investment income as calculated in accordance with U.S. GAAP). As a REIT, the Fund generally will not be subject to U.S. federal income tax to the extent it distributes qualifying dividends to its Shareholders. Even if the Fund qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. The tax period for the taxable year ending December 31, 2022 and all tax periods following remain open to examination by the major taxing authorities in all jurisdictions where we are subject to taxation. For the open tax periods, the Fund and its subsidiary have no uncertain tax positions that would require recognition in the financial statements.

Income tax and related interest and penalties and income tax benefit would be recognized by the Fund as tax expense or benefit, respectively, in the Statement of Operations if the tax positions were deemed to not meet the more-likely-than-not threshold. For the period ended December 31, 2022, the Fund did not incur any income tax, interest, or penalties.

***Issuance of Shares***

The Fund offers its Shares on a continuous basis through the Fundrise Platform, an investment platform available both online at *www.fundrise.com* and through various mobile applications owned and operated by the Sponsor. The price a Shareholder pays for Shares is based on the Fund's NAV. The NAV of the Fund's Shares is calculated daily on each day that the New York Stock Exchange is open for business as of the close of the regular trading session on the NYSE, usually 4:00 p.m., Eastern Standard Time. Cash received for investor subscriptions is recorded as Settling Subscriptions in the Statement of Assets and Liabilities until settlement occurs and Shares are issued.

***Distributions To Shareholders***

The Fund intends to make distributions necessary to continue to qualify for taxation as a REIT. The Fund declares daily distributions to Shareholders of record as of close of business on each day, paid on a quarterly basis, or more or less frequently as determined by the Board, in arrears. The Board may authorize distributions in Shares or in excess of those required for the Fund to maintain REIT tax status depending on the Fund's financial condition and such other factors as the Board may deem relevant. The distribution rate may be modified by the Board from time to time. The Board reserves the right to change or suspend the distribution policy from time to time. Distributions to shareholders of the Fund are recorded on the ex-dividend date.

***Dividend Reinvestment***

The Fund operates under a dividend reinvestment policy administered by the Adviser. Pursuant to the policy, a Shareholder's income dividends, capital gains or other distributions, net of any applicable U.S. withholding tax, can be reinvested in the Shares of the Fund, provided that, if a Shareholder participates in an investment plan offered by the Adviser, such distributions will be reinvested in accordance with such investment plan. Unless a Shareholder elects to "opt in" to the Fund's dividend reinvestment policy, any dividends and other distributions paid to the Shareholder by the Fund will not be reinvested in additional Shares of the Fund under the policy. When the Fund declares a distribution payable in cash, the Shareholders enrolled in the dividend reinvestment plan will receive an equivalent amount in Shares from the Fund either newly issued or repurchased from Shareholders by the Fund or according to their investment plan, if applicable. The number of Shares to be received when distributions are reinvested will be determined by dividing the amount of the distribution (or the percentage of the distribution allocable to the Fund under the terms of the investment plan, if applicable) by the Fund's NAV per Share next computed after the distribution is paid.

Shareholders who do not participate in the Fund's dividend reinvestment policy will receive all dividends in cash.

***Investment Income and Securities Transactions***

Securities transactions are accounted for on the date the securities are purchased or sold (trade date). Realized gains and losses on sales of investments are calculated using the identified cost basis. Dividend income and distributions are reported on the ex-dividend date, and interest income is recorded on an accrual basis. Amortization of premiums and accretion of discounts on fixed income securities is calculated using the effective interest method, or straight-line method when appropriate, over the holding period of the investment, and is included in interest income. Distributions received from investments generally are comprised of ordinary income and return of capital. The Fund estimates the allocation of distributions between investment income and return of capital based on historical information or regulatory filings. These estimates may subsequently be revised based on actual allocations received from the underlying investment after their tax reporting periods are concluded, as the actual character of these distributions is not known until after the reporting period of the Fund.

The Fund currently holds, and expects to hold in the future, some investments in its portfolio that contain Payment-in-Kind ("PIK") interest provisions. The PIK interest, computed at the contractual rate specified in each loan agreement, is added to the principal balance of the investment, rather than being paid in cash, and is recorded as interest income. Thus, the actual collection of PIK interest may be deferred until the time of debt principal repayment. PIK interest, which is a non-cash source of income at the time of recognition, is included in the Fund's taxable income and therefore affects the amount the Fund is required to distribute to its stockholders to maintain its qualification as a "REIT" for federal income tax purposes, even though the Fund has not yet collected the cash. Generally, when current cash interest and/or principal payments on an investment become past due, or if the Fund otherwise does not expect the borrower to be able to service its debt and other obligations, the Fund will place the investment on PIK non-accrual status and will cease recognizing PIK interest income on that investment for financial reporting purposes until all principal and interest have been brought current through payment or due to a restructuring such that the interest income is deemed to be collectible. The Fund writes off any accrued and uncollected PIK interest when it is determined that the PIK interest is no longer collectible. As of December 31, 2022, the Fund held one current non-accrual asset. The investment is past maturity and has failed to repay outstanding principal and contractual current interest. The Fund has determined that the interest income is uncollectible and has classified the investment as non-accrual.

***Restricted Securities***

The Fund may purchase securities for which there is a limited trading market or which are subject to restrictions on resale to the public. Restricted securities and securities for which there is a limited trading market may be significantly more difficult to value due to the unavailability of reliable market quotations for such securities, and investment in such securities may have an adverse impact on NAV. The Fund may purchase Rule 144A securities for which there may be a secondary market of qualified institutional buyers as contemplated by Rule 144A under the Securities Act. Rule 144A provides an exemption from the registration requirements of the Securities Act for the resale of certain restricted securities to qualified institutional buyers. Restricted securities held at December 31, 2022 are identified within the Schedule of Investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Concentration of Risk** 

Investing in the Fund involves risks, including, but not limited to, those set forth below. The risks described below are not, and are not intended to be, a complete enumeration or explanation of the risks involved in an investment in the Fund. For a more complete discussion of the risks of investing in the Fund, see the section entitled "Principal Risks" in the Fund's Prospectus and Statement of Additional Information filed on January 31, 2022, and the Fund's other filings with the SEC.

*Non-Listed Closed-End Interval Fund; Liquidity Risk.* The Fund is a non-diversified, closed-end management investment company operating as an "interval fund" and designed primarily for long-term investors. Closed-end funds differ from open-end management investment companies (commonly known as mutual funds) because investors in a closed-end fund do not have the right to redeem their shares on a daily basis. Unlike many closed-end funds, which typically list their shares on a securities exchange, the Fund does not currently intend to list the Shares for trading on any securities exchange, and the Fund does not expect any secondary market to develop for the Shares in the foreseeable future. Therefore, an investment in the Fund, unlike an investment in a typical closed-end fund, is not a liquid investment. The Fund is not intended to be a typical traded investment. Shareholders are also subject to transfer restrictions and there is no guarantee that they will be able to sell their Shares. If a secondary market were to develop for the Shares in the future, and a Shareholder is able to sell his or her Shares, the Shareholder will likely receive less than the purchase price and the then-current NAV per Share.

Although the Fund, as a fundamental policy, will make quarterly offers to repurchase at least 5% and up to 25% of its outstanding Shares at NAV, the number of Shares tendered in connection with a repurchase offer may exceed the number of Shares the Fund has offered to repurchase, in which case not all of a Shareholder's Shares tendered in that offer will be repurchased. In connection with any given repurchase offer, it is likely that the Fund may offer to repurchase only the minimum amount of 5% of its outstanding Shares. Hence, a Shareholder may not be able to sell their Shares when or in the amount that they desire.

*Non-Diversification Risk.* As a "non-diversified" fund, the Fund may invest more than 5% of its total assets in the securities of one or more issuers. Therefore, the Fund may be more susceptible than a diversified fund to being adversely affected by events impacting a single borrower, geographic location, security or investment type.

*Investment and Market Risk.* An investment in the Fund is subject to investment risk, including the possible loss of the entire amount that a Shareholder invests. The value of the Fund's investments may move up or down, sometimes rapidly and unpredictably. At any point in time, Shares may be worth less than the original investment, even after taking into account the reinvestment of Fund dividends and distributions. Global economic, political and market conditions and economic uncertainty, including those caused by the ongoing COVID-19 pandemic, may adversely affect the Fund's business, results of operations and financial condition.

*Risks Related to Specific Private Commercial Real Estate ("CRE") Property Types.* The Fund intends to invest in a variety of Private CRE property types, which will expose the Fund to risks associated with Private CRE, including general risks affecting all types of Private CRE property and certain specific risks associated with specific types of Private CRE property.

*New Construction and Real Estate Development Risk.* The Fund expects to engage in the strategy of acquiring, holding and financing land for future development. The risks inherent in financing, purchasing, owning, selling, and developing land increase as the demand for new homes and rentals decreases. Real estate markets are highly uncertain, and the value of undeveloped land has fluctuated significantly and may continue to fluctuate. The Fund's investments are subject to risks inherent in residential and commercial real estate generally as well as risks inherent to new construction and development, such as the risk that there will be insufficient tenant demand to occupy newly developed properties, the risk that costs of construction materials or construction labor may rise materially during the development, overbuilding and price competition, decreased availability of suitable land, and changing government regulations (including zoning, usage and tax laws). In addition, land carrying costs can be significant and can result in losses or reduced profitability. As a result, the Fund may hold certain land, and may acquire or finance additional land, in its development pipeline at a cost that the Fund may not be able to fully recover or at a cost which precludes profitable development.

*Valuation Risk**.*** The Fund is subject to valuation risk, which is the risk that one or more of the assets in which the Fund invests are priced incorrectly, due to factors such as incomplete data, market instability or human error. If the Fund ascribes a higher value to assets and their value subsequently drops or fails to rise because of market factors, returns on the Fund's investment may be lower than expected and could experience losses.

*Risks Related to the Fund's Tax Status as a REIT.* The Fund intends to elect to be taxed as and to qualify for treatment each year as a REIT under the Code. However, qualification as a REIT for tax purposes involves the application of highly technical and complex Code provisions for which only a limited number of judicial or administrative interpretations exist. Notwithstanding the availability of cure provisions in the Code, various compliance requirements could be failed and could jeopardize the Fund's REIT tax status. Failure to qualify for taxation as a REIT would cause the Fund to be taxed as a regular corporation, which would substantially reduce funds available for distributions to Shareholders. In addition, complying with the requirements to maintain its REIT tax status may cause the Fund to forego otherwise attractive opportunities or to liquidate otherwise attractive investments, adversely affect the Fund's liquidity and force the Fund to borrow funds during unfavorable market conditions, and/or limit the Fund's ability to hedge effectively and cause the Fund to incur tax liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Share Transactions** 

Below is a summary of transactions with respect to the Fund's common shares during the period February 3, 2022 (Effective date of the Fund's Registration Statement) to December 31, 2022 (*all tabular amounts are in thousands except share data*):

---

| | | |
|:---|:---|:---|
| | **For the Period February 3, 2022<sup>(1)</sup> to<br> December 31, 2022** | **For the Period February 3, 2022<sup>(1)</sup> to<br> December 31, 2022** |
| <br>**Common Shares:** | **Shares** | **Amount** |
| Proceeds from merger transaction (Note 6) | 45238475 | $452385 |
| Proceeds from sale of shares | 11368436 | 114006 |
| Reinvestment of distributions | 229478 | 2305 |
| &nbsp;&nbsp;&nbsp;Total gross proceeds | 56836389 | $568696 |
| Less: Shares repurchased | (3340797) | (33486) |
| &nbsp;&nbsp;&nbsp;**Net Proceeds from Common Shares** | **53495592** | $**535210** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Effective date of the Fund's
 Registration Statement.

As of December 31, 2022, the Fund has issued 13,100 common shares to the Sponsor and 150,400 common shares to Fundrise, L.P., an affiliate of the Sponsor. For the period February 3, 2022 (Effective date of the Fund's Registration Statement) to December 31, 2022, total distributions declared to the Sponsor were approximately $75,900.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Repurchase Offers** 

The Fund operates as an interval fund under Rule 23c-3 of the 1940 Act and, as such, provides a limited degree of liquidity to Shareholders. As an interval fund, the Fund has adopted a fundamental policy to offer to repurchase at quarterly intervals a specified percentage of its outstanding Shares at NAV (the "Repurchase Offer Policy"). The Repurchase Offer Policy provides that, once each quarter, the Fund will offer to repurchase at NAV no less than 5% and no more than 25% of the outstanding Shares of the Fund, unless suspended or postponed in accordance with regulatory requirements. The Repurchase Offer Policy is a fundamental policy that may not be changed without the vote of the holders of a majority of the Fund's outstanding voting securities (as defined in the 1940 Act).

To conduct a repurchase offer, the Fund will send a repurchase offer notice to Shareholders no less than 21 days and no more than 42 days before the date (the "Repurchase Request Deadline") by which the Fund announces that Shareholders must tender their Shares in response to such repurchase offer notice. The Fund must receive repurchase requests submitted by Shareholders in response to the Fund's repurchase offer on or before the Repurchase Request Deadline.

The Repurchase Offer Policy provides that the repurchase pricing occurs no later than the 14<sup>th</sup> day after the Repurchase Request Deadline or the next business day if the 14<sup>th</sup> day is not a business day (the "Repurchase Pricing Date"). The repurchase price of the Shares will be the Fund's NAV as of the close of the Repurchase Pricing Date.

The Board, in its sole discretion, will determine the number of Shares that the Fund will offer to repurchase ("Repurchase Offer Amount") for a given Repurchase Request Deadline. If Shareholders tender for repurchase more than the Repurchase Offer Amount for a given repurchase offer, the Fund may, but is not required to, repurchase an additional number of Shares not to exceed 2% of the outstanding Shares of the Fund on the Repurchase Request Deadline. If the Fund determines not to repurchase more than the Repurchase Offer Amount, or if Shareholders tender Shares in an amount exceeding the Repurchase Offer Amount plus 2% of the outstanding Shares on the Repurchase Request Deadline, the Fund will repurchase the Shares on a pro rata basis. However, the Fund may accept all Shares tendered for repurchase by Shareholders who own less than one hundred Shares and who tender all of their Shares, before prorating other amounts tendered.

The Fund may not condition a repurchase offer upon the tender of any minimum number of Shares. The Fund does not currently charge a repurchase fee, and it does not currently expect to impose a repurchase fee. However, the Fund may in the future charge a repurchase fee of up to 2.00%, subject to approval of the Board.

The following table presents the repurchase offers that were completed during the period February 3, 2022 (Effective date of the Fund's Registration Statement) to December 31, 2022 (*all tabular amounts are in thousands except share data*):

---

| | |
|:---|:---|
| **Repurchase Offers** | **Second Quarter<br> Repurchase** |
| Commencement Date | April 1, 2022 |
| Repurchase Request Deadline | April 30, 2022 |
| Repurchase Pricing Date | May 2, 2022 |
| Amount Repurchased | $12853 |
| Shares Repurchased | 1285326 |

---

---

| | |
|:---|:---|
| **Repurchase Offers** | **Second Quarter<br> Repurchase** |
| Commencement Date | May 23, 2022 |
| Repurchase Request Deadline | June 30, 2022 |
| Repurchase Pricing Date | July 1, 2022 |
| Amount Repurchased | $8334 |
| Shares Repurchased | 831761 |

---

---

| | |
|:---|:---|
| **Repurchase Offers** | **Third Quarter<br> Repurchase** |
| Commencement Date | August 29, 2022 |
| Repurchase Request Deadline | September 30, 2022 |
| Repurchase Pricing Date | October 3, 2022 |
| Amount Repurchased | $12299 |
| Shares Repurchased | 1223710 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Investment Manager Fees and Other Related Party Transactions** 

***Fundrise Advisors, LLC – Adviser***

The Fund entered into an Investment Management Agreement with the Adviser. Pursuant to the Investment Management Agreement, and in consideration of the services provided by the Adviser to the Fund, the Adviser is entitled to a management fee (the "Management Fee") of 0.85% of the Fund's average daily net assets. The Management Fee will be calculated and accrued daily and payable monthly in arrears.

Certain expenses incurred prior to April 1, 2022 (the commencement of investment operations) of the Fund (the "Expenses") paid by the Adviser shall be subject to reimbursement pursuant to the Investment Management Agreement. The Advisor has determined to waive the reimbursement of Expenses from the Fund until such time that reimbursing the Adviser for such Expenses would not cause the Fund's NAV to drop below $10 per share.

Prior to the commencement of investment operations, expenses waived and or paid by the Adviser on behalf of the Fund amounted to approximately $321,000 of organizational expenses, and approximately $198,000 of offering costs. Of the total $321,000 of organizational expenses, approximately $79,000 were incurred and waived subsequent to the effective date of the Fund's registration statement on February 3, 2022, but prior to the commencement of investment operations on April 1, 2022.

The Adviser is permitted to seek recoupment from the Fund of any fee waivers or expense reimbursements if recoupment by the Adviser (a) occurs within thirty-six months after the date of the waiver/reimbursement and (b) does not cause the Fund's NAV to drop below $10 per share. During the period April 1, 2022 to December 31, 2022, the Adviser recouped the previously waived organizational expenses of $321,000. As of December 31, 2022, the Fund had no remaining expense waivers subject to recoupment by the Adviser or expenses payable to the Adviser.

During the period April 1, 2022 to December 31, 2022, the Adviser was reimbursed offering costs of $198,000. Offering costs paid by the Advisor prior to the commencement of investment operations were accounted for as a deferred charge until the commencement of investment operations. Thereafter, these offering costs are being amortized over 12 months on a straight-line basis. Ongoing offering costs will be expensed as incurred. During the period April 1, 2022 to December 31, 2022, the Fund amortized approximately $150,000 of deferred offering costs.

The Fund will reimburse the Adviser for actual expenses incurred on behalf of the Fund in connection with the selection, acquisition or origination of an investment, to the extent not reimbursed by a third-party borrower, whether or not the Fund ultimately acquires or originates the investment. During the period April 1, 2022 to December 31, 2022, there were no expenses incurred on behalf of the fund or reimbursed to the Adviser related to the selection, acquisition or origination of an investment.

The Fund will reimburse the Adviser for out-of-pocket expenses paid to third parties in connection with providing services to the Fund. This does not include the Adviser's overhead, employee costs borne by the Adviser, utilities or technology costs. Expense reimbursements payable to the Adviser also may include expenses incurred by the Sponsor in the performance of services pursuant to a shared services agreement between the Adviser and the Sponsor, including any increases in insurance attributable to the management or operation of the Fund. During the period April 1, 2022 to December 31, 2022, there were approximately $36,000 of expenses reimbursed to the Adviser pursuant to the shared services agreement.

The Adviser or its affiliates may be entitled to certain fees as permitted by the 1940 Act or as otherwise permitted by applicable law and regulation fees and expenses associated with the selection, acquisition or origination of real estate properties, construction, real estate development, special servicing of non-performing assets (including, but not limited to, reimbursement of non-ordinary expenses and employee time required to special service a non-performing asset), and the sale of equity investments in real estate.

The Adviser and Rise Companies entered into a Shared Services Agreement where Rise Companies will provide the Adviser with the personnel, services and resources necessary for the Adviser to comply with its obligations and responsibilities under the Second Amended and Restated Operating Agreement ("Operating Agreement') and Investment Management Agreement, which includes responsibility for operations of the Fund and performance of such services and activities relating to the investments and operations of the Fund as may be appropriate, including without limitation those services and activities listed in the Operating Agreement and Investment Management Agreement.

***Fundrise Real Estate, LLC***

The Fund entered into a Real Estate Services Agreement (the "Agreement") with Fundrise Real Estate, LLC ("the Vendor"), a wholly-owned subsidiary of our Sponsor. Pursuant to the Agreement, the Vendor is entitled to Real Estate Operating Fees for performing certain real estate operating services for the Fund. Pursuant to the agreement, the Vendor is also entitled to reimbursement of third-party costs and overhead associated with the performance of certain services outlined in the Agreement, paid no less frequently than quarterly. As of December 31, 2022, the Fund had approximately $17,000 in Real Estate Operating Fees payable to the Vendor.

***Tax-free Reorganization***

Fundrise Advisors, LLC, in its capacity as Manager of Fundrise Income eREIT II, LLC ("Income eREIT II"); Fundrise Income eREIT III, LLC ("Income eREIT III"); Fundrise Income eREIT 2019, LLC ("Income eREIT 2019"); Fundrise Income eREIT V, LLC ("Income eREIT V"); Fundrise eREIT XIV, LLC ("eREIT XIV"); and Fundrise Real Estate Investment Trust, LLC ("Income eREIT") (individually a "Target Company" and collectively the "Target Companies"), approved the Agreement of Merger and Plan of Reorganization (the "Merger Agreement"), providing for the transfer of all assets and liabilities of each Target Company to the Fund. In accordance with the terms of the Merger Agreement, the Target Companies were merged with and into the Fund, with the Fund being the surviving entity of the Merger. The primary purpose for the reorganization was to streamline operations, cut administrative costs, provide additional liquidity to shareholders, and maximize returns to the benefit of shareholders. The tax-free reorganization took place on March 31, 2022, prior to commencement of investment operations of the Fund.

The following is a summary of shares outstanding, net assets, net asset value per share and unrealized appreciation/depreciation immediately before and after the tax-free reorganization (*all tabular amounts are in thousands except share data*):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Before Merger** | **Before Merger** | **Before Merger** | **Before Merger** | **Before Merger** | **Before Merger** | **Before Merger** | **After Merger** |
|  | **Income<br> eREIT II** | **Income<br> eREIT III** | **Income<br> eREIT 2019** | **Income<br> eREIT V** | **eREIT <br> XIV** | **Income<br> eREIT** | **Income<br> Real<br> Estate <br> Fund** | **Income Real<br> Estate Fund** |
| Shares | 8151870 | 3721677 | 4292269 | 6914643 | 4825859 | 17332156 | 10000 | 45248475 |
| Net Assets | $81519 | $37217 | $42923 | $69146 | $48258 | $173322 | $100 | $452485 |
| Net Asset Value | $10.15 | $8.86 | $9.97 | $10.04 | $10.44 | $10.09 | $10.00 | $10.00 |
| Unrealized appreciation/ depreciation <sup>(1)</sup> | $2796 | $- | $5158 | $228 | $2429 | $3614 | $- | $14225 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Prior to the Merger, investments
 were not historically recorded at Fair Value.

Assuming the reorganization had been completed on January 1, 2022, the Fund's results of operations for the period ended December 31, 2022, would have been as follows *(unaudited*):

---

| | |
|:---|:---|
| Net investment income | $26673 |
| Net realized gain (loss) on investments and net unrealized appreciation/depreciation on investments | 2128 |
| Net increase in net assets resulting from operations | $**28801** |

---

The Fund has elected to carry forward the historical cost basis of each investment within the acquired investment portfolio for purposes of measuring unrealized appreciation/depreciation and realized gain (loss) for statement of operations presentation. This policy will align any subsequent reporting of realized gains with the tax-basis gains distributable to shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Investments** 

The Fund gains exposure to commercial and residential real estate through a diversified portfolio of investments in real property; a variety of real estate loans; real estate-related debt and equity securities, and other real estate-related assets.

The cost of purchases of investments and proceeds from the sale of investments, other than short-term securities, for the period ended December 31, 2022, amounted to approximately $156,236,000 and $55,615,000, respectively.

As of December 31, 2022, Income 1 TRS, LLC is deemed to be significant subsidiary of the Fund in accordance with the definition of a "significant subsidiary" as defined by Regulation S-X 1-02(w)(2), *Definitions of terms used in Regulation S-X* (amendment effective January 1, 2021). Pursuant to Regulation S-X 4-08(g), *Summarized financial information of subsidiaries not consolidated and 50 percent or less owned persons*, summarized financial information for Income 1 TRS, LLC is included below.

The following tables show summarized financial statement information for Income 1 TRS, LLC for the year ended December 31, 2022 *(amounts in thousands)*:

---

| | |
|:---|:---|
| **Summary Statement of Assets and Liabilities** | **As of<br> December 31, 2022** |
| Total Assets | $297808 |
| Total Liabilities | 256907 |
| **Total Net Assets** | $**40901** |

---

 ****

---

| | |
|:---|:---|
| **Summary Statement of Operations (1)** | **For the period April 1,<br> 2022 through <br> December 31, 2022** |
| Total revenue | $11183 |
| Operating expenses | (10831) |
| **Operating Income** | $**352** |
| Interest expense | (1316) |
| **Net Income (Loss)** | $**(964)** |

---

(1) The unconsolidated subsidiary noted
 reports in accordance with U.S. GAAP, but does not fall within the scope of the accounting and reporting guidance in the ASC 946.
 The subsidiary is therefore not required to and has elected not to fair value its investments. Accordingly, the summarized income
 statement information shown for the unconsolidated subsidiary does not reflect fair value adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Tax Basis Information** 

The timing and characterization of certain income, capital gains, and return of capital distributions are determined annually in accordance with federal tax regulations, which may differ from GAAP. As a result, the net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent in nature. To the extent these differences are permanent, they are charged or credited to paid-in capital, accumulated net investment income/loss or accumulated net realized gain/loss, as appropriate, in the period in which the differences arise.

As of December 31, 2022, the tax basis of distributable earnings (accumulated deficit) was as follows *(amounts in thousands)*:

---

| | |
|:---|:---|
| Undistributed ordinary income (loss) | $1339 |
| Undistributed long-term capital gains (1) | - |
| Tax accumulated earnings (loss) | $1339 |
| Accumulated capital and other losses |  |
| Other book/tax temporary differences (2) | (333) |
| Net unrealized gain (loss) on investments (3) | 8088 |
| **Total Distributable Earnings** | $**9094** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The difference between
 book-basis and tax-basis capital gains is attributable to differing treatments of guaranteed payments from certain investments.

(2) Other book/tax differences
 are attributable to deductibility of various expenses.

(3) The difference between
 book-basis and tax-basis unrealized appreciation (depreciation) is attributable to the book/tax differences in the treatment
 of depreciation and other flow through income on certain investments.

During the period ended December 31, 2022, the tax character of distributions paid by the Fund was as follows *(amounts in thousands)*:

---

| | |
|:---|:---|
| Ordinary income | $19545 |
| Long-term capital gain | 3093 |
| Return of capital | - |
| **Total Distributions Paid** | $**22638** |

---

As of December 31, 2022, the unrealized appreciation and depreciation of investments, based on cost for federal income tax purposes, were as follows *(amounts in thousands)*:

---

| | |
|:---|:---|
| Cost of investments for tax purposes | $537354 |
| Gross tax unrealized appreciation | $10012 |
| Gross tax unrealized depreciation | (1924) |
| **Net Tax Unrealized Appreciation** | $**8088** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **New Accounting Pronouncements** 

In June 2022, FASB issued Accounting Standards Update No. 2022-03 ("ASU 2022-03"), "Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions" ("Topic 820"). ASU 2022-03 clarifies the guidance in Topic 820, related to the measurement of the fair value of an equity security subject to contractual sale restrictions, where it eliminates the need to apply a discount to fair value of these securities, and introduces disclosure requirements related to such equity securities. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2023, and allows for early adoption. The Fund is currently evaluating the implications, if any, of the additional requirements and its impact on the financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Subsequent Events** 

In connection with the preparation of the accompanying financial statements, the Fund has evaluated events and transactions occurring through February 28, 2023, the date at which the financial statements were available to be issued.

*Purchase of Investments*

As of February 28, 2023, the cost of purchases of investments, other than short-term securities, since December 31, 2022, amounted to approximately $25,615,000.

*Share Transactions*

As of February 28, 2023, the following repurchase offers have occurred (*all tabular amounts are in thousands except share data*):

---

| | |
|:---|:---|
| **Repurchase Offers** | **Fourth Quarter Repurchase** |
| Commencement Date | December 1, 2022 |
| Repurchase Request Deadline | December 31, 2022 |
| Repurchase Pricing Date | January 3, 2023 |
| Amount Repurchased | $19969 |
| Shares Repurchased | 1994922 |

---

![](tm237479d1_ncsrimg005.jpg)

KPMG LLP

Suite 900<br> 8350 Broad Street<br> McLean, VA 22102

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and Board of Directors of<br> Fundrise Income Real Estate Fund, LLC:

*Opinion on the Financial Statements*

We have audited the accompanying statement of assets and liabilities of Fundrise Income Real Estate Fund, LLC (the Fund), including the schedule of investments, as of December 31, 2022, the related statements of operations, changes in net assets and cash flows for the period from February 3, 2022 (effective date of the Fund's registration statement) to December 31, 2022, and the related notes (collectively, the financial statements) and the financial highlights for the period from February 3, 2022 (effective date of the Fund's registration statement) to December 31, 2022. 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, the results of its operations, changes in its net assets and its cash flows, and the financial highlights for the period from February 3, 2022 (effective date of the Fund's registration statement) to December 31, 2022, in conformity with U.S. generally accepted accounting principles.

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 these financial statements and financial highlights based on our audit. 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 audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audit 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 and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian. Our audit 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 audit provide a reasonable basis for our opinion.

![](tm237479d1_ncsrimg006.jpg)

We have served as the auditor of one or more Fundrise investment companies since 2019.

McLean, Virginia<br> February 28, 2023

KPMG LLP, a Delaware limited liability partnership and a member firm of <br> the KPMG global organization of independent member firms affiliated with <br> KPMG International Limited, a private English company limited by guarantee.

**Additional Information (Unaudited):**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Approval of Investment Management Agreement** 

Section 15(c) of the Investment Company Act of 1940, as amended (the "1940 Act"), requires that each registered fund's board of directors, including a majority of those directors who are not "interested persons" of the fund, as defined in the 1940 Act (the "Independent Directors"), initially approve, and annually review and consider the continuation of, the fund's investment advisory agreement. At a meeting held on January 18, 2022 (the "Organizational Meeting"), the Board of Directors (the "Board") of Fundrise Income Real Estate Fund, LLC (the "Fund") considered and discussed a proposed investment management agreement (the "Agreement") between Fundrise Advisors, LLC (the "Adviser") and the Fund. At the Organizational Meeting, the Board, including each of the Independent Directors, unanimously voted to approve the Agreement for an initial two-year period. The initial two-year term of the Agreement commenced on March 31, 2022.

In the months preceding the Organizational Meeting, the Board reviewed written responses from the Adviser to questions posed to the Adviser by counsel on behalf of the Directors and supporting materials relating to those questions and responses. In addition, the Board considered such additional information as it deemed reasonably necessary to evaluate the Agreement. The Board also considered the materials and in-person presentations by Fund officers and representatives of the Adviser received at the Organizational Meeting concerning the Agreement.

In determining whether to approve the Agreement, the members of the Board reviewed and evaluated information and factors they believed to be relevant and appropriate through the exercise of their reasonable business judgment. While individual members of the Board may have weighed certain factors differently, the Board's determination to approve the Agreements was based on a comprehensive consideration of all information provided to the Board with respect to the approval of the Agreements. The Board was also furnished with an analysis of its fiduciary obligations in connection with its evaluation of the Agreements and, throughout the evaluation process, the Board was assisted by counsel for the Fund. In connection with their deliberations, the Independent Directors met separately in executive session to review the relevant materials. A more detailed summary of the important, but not necessarily all, factors the Board considered with respect to its approval of the Agreements is provided below.

***<u>Nature, Extent and Quality of Services</u>***

The Board considered information regarding the nature, extent and quality of services to be provided to the Fund by the Adviser. The Board considered, among other things, the terms of the Agreement and the range of services to be provided by the Adviser. The Board noted the non-investment advisory services to be provided by the Adviser consistent with the terms of the Agreement, including the supervision and coordination of the Fund's service providers and the provision of administrative, management and other services. The Board considered the Adviser's reputation, organizational structure, resources and overall financial strength and ability to carry out its obligations under the Agreement. The Board also considered that the Fund would be the second registered investment company managed by the Adviser and the first registered investment company with an income-focused investment strategy. Furthermore, the Board noted the Adviser had extensive experience managing other similar pooled investment vehicles that invest in real estate-related assets (the "Other Investment Vehicles").

The Board considered the Adviser's professional personnel who will provide services to the Fund, including the Adviser's ability and experience in attracting and retaining qualified personnel to service the Fund. The Board also considered the compliance program and compliance record of the Adviser. The Board noted the Adviser's support of the Fund's compliance control structure, including the resources that will be devoted by the Adviser in support of the Fund's obligations pursuant to Rule 38a-1 under the 1940 Act and the efforts of the Adviser to combat cybersecurity risks. The Board also considered the Adviser's investments in business continuity planning designed to benefit the Fund. The Board noted the Adviser's commitment to maintaining high quality systems and expending substantial resources to prepare for and respond to ongoing changes to the market, regulatory and control environments in which the Fund and its service providers operate.

The Board considered the day-to-day portfolio management services that the Adviser will provide to the Fund. In this regard, the Board considered, among other things, the Adviser's investment philosophy and processes, investment research capabilities and resources, performance record, experience, trading operations and approach to managing risk, including with respect to investments in real estate-related assets. The Board considered the quality and experience of the Fund's portfolio managers, the number of Other Investment Vehicles managed by the portfolio managers, and the Adviser's method for compensating the portfolio managers. Moreover, the Board considered that the Adviser would oversee potential conflicts of interest between the Fund's investments and those of the Other Investment Vehicles.

In addition, the Board considered the assumption of business, entrepreneurial, overall managerial and other risks by the Adviser in connection with launching and managing the Fund. The Board noted that the Fund is a closed-end interval fund that operates in accordance with the framework set forth in Rule 23c-3 under the 1940 Act. In this connection, the Board considered the special attributes of the Fund relative to traditional mutual funds and the benefits that are expected to be realized from an investment in the Fund, rather than a traditional mutual fund. The Board also considered the resources devoted by the Adviser and its affiliates in developing and maintaining an infrastructure necessary to support the on-going operations of the Fund.

After consideration of the foregoing factors, among others, the Board concluded that the nature, extent and quality of services to be provided by the Adviser, taken as a whole, are appropriate and consistent with the terms of the Agreement.

***<u>Fund Performance</u>***

The Board considered that the Fund is a newly-organized closed-end management investment company. However, the Fund is also the accounting and performance survivor of the Target Companies. The Board also considered the investment performance of the Adviser and the Fund's portfolio managers, including, for purposes of considering the investment skill and experience of the Fund's portfolio managers, performance data showing the portfolio manager's capabilities in managing the Other Investment Vehicles. The Board reviewed the performance of each Other Investment Vehicle over different time periods presented in the materials and evaluated the Adviser's analysis of the Other Investment Vehicle's performance for these time periods. The Board also considered performance data for an appropriate group of peer closed-end interval funds ("Peer Group") identified by Broadridge Financial Solutions, Inc. ("Broadridge"), an independent provider of investment company data.

Based on these considerations, the Board concluded that it was satisfied that the Adviser has the capability of providing satisfactory investment performance for the Fund.

***<u>Management Fees and Expenses</u>***

The Board reviewed and considered the proposed management fee rate to be paid by the Fund to the Adviser under the Agreement and the Fund's anticipated total expense ratio. The Board received and reviewed a report prepared by Broadridge comparing the Fund's proposed management fee rate and anticipated total expense ratio relative to the Fund's Peer Group. In considering the reasonableness of the Fund's proposed management fee and anticipated total expense ratio, the Board considered that, according to the information provided by Broadridge, the Fund's contractual management fee, actual management fee and anticipated total expense ratio were each below the median of the Fund's Peer Group.

The Board received and considered a description of the methodology used by Broadridge to select the closed-end interval funds in the Peer Group. While the Board recognized that comparisons between the Fund and its Peer Group may be imprecise given, among other differences, the different service levels and characteristics of registered funds and the different business model and cost structure of the Adviser, the comparative, independently-selected information provided by Broadridge assisted the Board in evaluating the reasonableness of the Fund's proposed management fee and anticipated total expense ratio.

The Board also received and considered information about the nature and extent of services offered and fee rates charged by the Adviser to the Other Investment Vehicles. The Board considered the explanations provided to the Adviser about any differences between the Adviser's services to be provided to the Fund and the services it provides to the Other Investment Vehicles. In this regard, the Board reviewed information about the generally broader scope of services and compliance, reporting and other legal burdens and risks of managing registered funds compared with those associated with managing assets of non-registered funds such as the Other Investment Vehicles. The Board also reviewed information about structural, operational and other differences between the Other Investment Vehicles and the Fund. Based on its consideration of the factors and information it deemed relevant, the Board concluded that the compensation payable to the Adviser under the Agreement was reasonable.

***<u>Profitability</u>***

The Board received and considered information about the Adviser's projected costs of launching the Fund and the projected profitability to the Adviser from providing services to the Fund. The Board received and considered information regarding the methodologies and estimates used by the Adviser in calculating and reporting profitability, including a description of the methodology used to allocate certain expenses. In evaluating the estimated profitability to the Adviser from providing services to the Fund, the Board considered the Adviser's representation that the level of estimated profitability was fair and reasonable based on the nature and quality of the services to be provided to Shareholders. The Board also noted that the actual profitability of the Fund to the Adviser would depend on, among other factors, the growth of the Fund's assets under management.

Based on its review, the Board did not deem the estimated profits reported by the Adviser from providing services to the Fund to be at a level that would prevent the Board from approving the Agreement.

***<u>Economies of Scale</u>***

The Board considered the extent to which economies of scale may be realized as the Fund's assets grow and whether the Fund's fee structure reflects these economies of scale for the benefit of Shareholders of the Fund. In this regard, the Board noted the absence of any breakpoints in the Agreement's fee structure but considered that expense limitations and fee waivers that reduce the Fund's expenses can have the same effect as breakpoints in sharing potential economies of scale with Shareholders. In addition, the Board considered that initially setting competitive fee rates, pricing the Fund to scale at inception and making additional investments in the business intended to enhance services available to Shareholders are other means of sharing potential economies of scale with Shareholders.

The Board concluded that the Adviser's arrangements with respect to the Fund constituted a reasonable approach to sharing potential economies of scale with the Fund and its Shareholders. The Board noted that it will have the opportunity to periodically reexamine whether the Fund has achieved any economies of scale and the appropriateness of any potential future management fee breakpoints as part of its future review of the Agreement.

***<u>"Fall-Out" Benefits</u>***

The Board received and considered information regarding potential "fall-out" or ancillary benefits that the Adviser and its affiliates may receive as a result of their relationships with the Fund. The Board noted that ancillary benefits could include, among others, benefits directly attributable to other relationships with the Fund and benefits potentially derived from an increase in the Adviser's and its affiliates' business as a result of their relationships with the Fund.

The Board noted that the Fund would be among the investment options available to investors participating in certain investment plans sponsored by the Adviser or its affiliates. The Board considered that the Adviser receives asset-based fees from plan participants, which the Board considered could be viewed as an indirect benefit to the extent investments in the Fund support these plans. The Board also considered information about certain fees that the Adviser or its affiliates may be entitled to receive in connection with the selection, acquisition or origination of real estate property investments by the Fund.

Based on its consideration of the factors and information it deemed relevant, the Board did not deem any ancillary benefits that may be received by the Adviser and its affiliates to be unreasonable.

***<u>Conclusion</u>***

At the Organizational Meeting, based on its deliberations and its evaluation of the factors described above and other information it believed relevant, the Board unanimously approved the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Disclosure of Portfolio Holdings** 

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund's Form N-PORT reports will be available without charge, upon request, by calling (202) 584-0550 or on the SEC's website at http://www.sec.gov.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Proxy Voting Policies and Procedures** 

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities and, once available, information regarding how the Fund voted those proxies (if any) during the most recent period ended December 31 2022, is available (1) without charge, upon request, by calling (202) 584-0550, (2) on the Fund's website at *www.fundriseintervalfund.com* and (3) on the SEC's website at http://www.sec.gov. During the period ended December 31, 2022, the Fund did not have any investments that required the Fund to vote proxies, and therefore did not vote any proxies during such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Compensation of Directors** 

The Fund's Statement of Additional Information includes additional information about the Directors and is available (1) without charge, upon request, by calling (202) 584-0550, (2) on the Fund's website at *www.fundriseintervalfund.com* and (3) on the SEC's website at <u>http://www.sec.gov</u>.

The following table sets forth information regarding the total compensation to be paid to the Independent Directors for their services as Independent Directors for the Fund's fiscal year ended December 31, 2022. As an Interested Director, Mr. Miller receives no compensation from the Fund for his service as a Director. No other compensation or retirement benefits are received by any Director or officer from the Fund.

---

| | | |
|:---|:---|:---|
| **Name and Position** | **Aggregate Compensation<br> from the <br> Fund** | **Aggregate Compensation<br> from the <br> Fund and Fund Complex<sup>1</sup> Paid to Directors** |
| Jeffrey R Deitrich | $30000 | $105000 |
| Glenn R. Osaka | $30000 | $105000 |
| Gayle P. Starr | $30000 | $60000 |
| Mark D. Monte<sup>2</sup> | $45000 | $51822 |

---

<sup>1</sup> The "Fund Complex" consists of the Fund and Fundrise Real Estate Interval Fund, LLC, and Fundrise Growth Tech Fund, LLC.

<sup>2</sup> Mark D. Monte was appointed as an Independent Director of the Fundrise Real Estate Interval Fund, LLC on July 19th. Mr. Monte will receive a pro-rata share of total compensation from the Fundrise Real Estate Interval Fund, LLC for his service as an Independent Director for the fiscal year 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Directors and Officers** 

The Fund is governed by a Board of Directors. The following tables present certain information regarding the Directors and officers of the Fund as of December 31, 2022. The address of all persons is c/o Fundrise Advisors, LLC, 11 Dupont Circle NW, 9th Floor, Washington, D.C. 20036. For more information regarding the Directors and officers, please refer to the Fund's Statement of Additional Information, which is available, without charge, upon request by calling (202) 584-0550.

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Name, Year <br> of Birth and <br> Position Held** | &nbsp;&nbsp;**Term of <br> Office and<br> Length of**<br> **Time Served<sup>1</sup>** | &nbsp;&nbsp;**Principal Occupation(s) During Past<br> 5 Years or Longer** | &nbsp;&nbsp;**Number of <br> Portfolios in <br> Fund Complex<sup>2</sup>**<br> **Overseen <br> by**<br> **Director** | &nbsp;&nbsp;**Other**<br> **Directorships<br> Held During<br> Past 5 Years** |
| &nbsp;&nbsp;**<u>Inde</u>** **p<u>endent Directors</u>** | &nbsp;&nbsp;**<u>Inde</u>** **p<u>endent Directors</u>** | &nbsp;&nbsp;**<u>Inde</u>** **p<u>endent Directors</u>** | &nbsp;&nbsp;**<u>Inde</u>** **p<u>endent Directors</u>** | &nbsp;&nbsp;**<u>Inde</u>** **p<u>endent Directors</u>** |
| &nbsp;&nbsp;Jeffrey R. Deitrich (1982)<br>Director | &nbsp;&nbsp;02/2022 to present | &nbsp;&nbsp;Senior Vice President, Silverstein Properties, Inc. (real estate investment and development firm) (2007-2016, 2022-current); Formerly, Principal, Frenchtown Enterprises (real estate investment firm) (2019-2022); Principal, Better Building Solutions (technology integration and managed services firm) (since 2016). Asset Manager, Prudential Real Estate Investors (private equity) (2004-2007). | &nbsp;&nbsp;3 | &nbsp;&nbsp;Fundrise Real Estate Interval Fund, LLC; Fundrise Growth Tech Fund, LLC |
| &nbsp;&nbsp;Mark D. Monte (1960)<br>Director | &nbsp;&nbsp;02/2022 to present | &nbsp;&nbsp;Retired. Formerly, Managing Director, BofA Securities, Inc. (global investment bank) (1997-2021). | &nbsp;&nbsp;2 | &nbsp;&nbsp;Fundrise Real Estate Interval Fund, LLC |
| &nbsp;&nbsp;Glenn R. Osaka (1955)<br>Lead Independent Director | &nbsp;&nbsp;02/2022 to present | &nbsp;&nbsp;Consultant and Private Investor (early stage technology companies) (since 2013). Formerly, Senior Vice President, Services, Juniper Networks, Inc. (2009-2013); Vice President, Strategy and Operations, Cisco Systems, Inc. (2007-2009); President and Chief Executive Officer, Reactivity Inc. (technology start-up company) (2001-2006); Managing Director, Redleaf Group (venture capital firm) (1999-2000); Vice President and General Manager, Enterprise Computing, Hewlett-Packard (1979-1998). | &nbsp;&nbsp;3 | &nbsp;&nbsp;Fundrise Real Estate Interval Fund, LLC; Fundrise Growth Tech Fund, LLC |
| &nbsp;&nbsp;Gayle P. Starr (1954)<br>Director | &nbsp;&nbsp;02/2022 to present | &nbsp;&nbsp;Consultant and Advisor, Starr RE Consultants, LLC (real estate and diversity consulting firm) (since 2019); Advisor, Bridge33 Capital, LLC (commercial real estate investment firm) (since 2019); Formerly, Advisor, First Republic Bank (commercial bank and trust company) (2019-2022); Managing Director (2015-2019) and Senior Vice President (2002-2015); Global Capital Markets, Prologis, Inc. (publicly traded real estate investment trust). | &nbsp;&nbsp;2 | &nbsp;&nbsp;Fundrise Real Estate Interval Fund, LLC |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Name, Year <br> of Birth and <br> Position Held** | &nbsp;&nbsp;**Term of <br> Office and<br> Length of**<br> **Time Served<sup>1</sup>** | &nbsp;&nbsp;**Principal Occupation(s) During Past<br> 5 Years or Longer** | &nbsp;&nbsp;**Number of <br> Portfolios in <br> Fund Complex<sup>2</sup>**<br> **Overseen <br> by**<br> **Director** | &nbsp;&nbsp;**Other**<br> **Directorships<br> Held During<br> Past 5 Years** |
| &nbsp;&nbsp;**<u>Interested Director</u>** | &nbsp;&nbsp;**<u>Interested Director</u>** | &nbsp;&nbsp;**<u>Interested Director</u>** | &nbsp;&nbsp;**<u>Interested Director</u>** | &nbsp;&nbsp;**<u>Interested Director</u>** |
| &nbsp;&nbsp;Benjamin S. Miller<sup>3</sup> (1977)<br>Director, Chairperson and President | &nbsp;&nbsp;02/2022 to present | &nbsp;&nbsp;Chief Executive Officer Fundrise Advisors, LLC (since 2012); Co-Founder, Chief Executive Officer and Director, Rise Companies Corp. (since 2012); ; and officer of certain funds in the Fund Complex. | &nbsp;&nbsp;3 | &nbsp;&nbsp;Fundrise Real Estate Interval Fund, LLC. Fundrise Growth Tech Fund, LLC |

---

<sup>1</sup> Each Director serves until his or her successor is elected and qualified, until the Fund terminates, or until he or she dies, resigns, retires voluntarily, or is otherwise removed or retired pursuant to the LLC Agreement.

<sup>2</sup> The "Fund Complex" consists of the Fund and the Fundrise Real Estate Interval Fund, LLC, and Fundrise Growth Tech Fund, LLC.

<sup>3</sup> Mr. Miller is considered to be an "interested person" of the Fund (as that term is defined by Section 2(a)(19) in the 1940 Act) because of his affiliation with the Adviser and/or its affiliates.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Name, Year of Birth and<br> Position Held** | &nbsp;&nbsp;**Term of Office and**<br> **Length of Time<br> Served<sup>1</sup>** | &nbsp;&nbsp;**Principal Occupations During Past 5<br> Years** |
| &nbsp;&nbsp;Michelle A. Mirabal (1988)<br>Secretary and Chief Compliance Officer | &nbsp;&nbsp;02/2022 to present | &nbsp;&nbsp;Deputy General Counsel, Fundrise Advisors, LLC and Rise Companies Corp. (since 2019); Corporate Counsel, Amherst Residential, LLC (2018-2019); Associate, Hogan Lovells US LLP (2014-2018); and officer of certain funds in the Fund Complex. |
| &nbsp;&nbsp;Alison A. Staloch (1980)<br>Treasurer and Principal Financial/Accounting Officer | &nbsp;&nbsp;02/2022 to present | &nbsp;&nbsp;Chief Financial Officer, Fundrise Advisors, LLC and Rise Companies Corp. (since 2021); Chief Accountant (2017-2021), Assistant Chief Accountant (2015-2017), Division of Investment Management, U.S. Securities and Exchange Commission; Senior Manager, KPMG LLP (2005-2015); and officer of certain funds in the Fund Complex. |

---

<sup>1</sup> The term of office for each officer will continue indefinitely.

**Item 2.** **Code of Ethics**

As of the end of the period covered by this report, the Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer and principal financial officer. The Registrant did not grant any waivers, including implicit waivers, from any provisions of the code of ethics to the principal executive officer or principal financial officer during the period covered by this report.

A copy of the code of ethics is included as an exhibit to this report.

**Item 3.** **Audit Committee Financial Expert**

The Board of Directors has designated Jeffrey R. Deitrich, who serves on the Board's Audit Committee, as an audit committee financial expert. Mr. Deitrich is considered by the Board of Directors to be an independent director.

**Item 4.** **Principal Accountant Fees and Services**

(a) Audit Fees: Audit fees billed to the Registrant as of December 31, 2022, were $100,000, which is exclusive of audit fees totaling $108,000 in connection with the annual audit that had not yet been billed to the Registrant as of December 31, 2022. These amounts represent aggregate fees billed by the Registrant's independent registered public accounting firm, (the "Accountant") in connection with the annual audit of the Registrant's financial statements and for services normally provided by the Accountant in connection with the Registrant's statutory and regulatory filings for that fiscal year, including N-2 Consent fees..

(b) Audit-related fees billed to the Registrant were $22,500 for the year ended December 31, 2022. These amounts represent assurance and related services by the Accountant that were reasonably related to the performance of the audit of the Registrant's financial statements that were not reported under paragraph (a) of this Item.

(c) Tax Fees: There were no tax fees billed to the Registrant for the period ended December 31, 2022, for professional services rendered by the Accountant for tax compliance, tax advice, or tax planning.

(d) All Other Fees: The aggregate fees billed for products and services provided by the Accountant, other than the services reported in paragraphs (a) through (c) of this Item are $1,800 for the period ended December 31, 2022. The fees primarily relate to a Accounting Research Online subscription.

(e)(1) The Audit Committee has adopted, and the Board has approved, a Policy on Pre-Approval of Audit and Non-Audit Services (the "Policy"), which is intended to comply with Rule 2-01 of Regulation S-X and sets forth guidelines and procedures to be followed by the Registrant when retaining an auditor to perform audit, audit-related, tax and other services for the Registrant. The Policy permits such services to be pre-approved by the Audit Committee pursuant to either a general pre-approval or specific pre-approval. Unless a type of service provided by the auditor has received general pre-approval, it requires specific pre-approval by the Audit Committee. Any proposed services exceeding pre-approved cost levels require specific pre-approval by the Audit Committee.

(e)(2) With respect to the services provided to the Registrant described in paragraphs (b) through (d) of this Item 4, no amount was approved by the Audit Committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not applicable.

(g) Non-audit fees of $3,600 were billed by the Accountant for services rendered to the Registrant's investment adviser for the period ended December 31, 2022.

(h) Not applicable, all non-audit services that were rendered to the Registrant's investment adviser were pre-approved as required.

**Item 5.** **Audit Committee of Listed Registrants**

Not applicable.

**Item 6.** **Investments**

(a) The schedule of investments is included as part of the report to Shareholders filed under Item 1 of this form.

(b) There were no divestment of securities (as defined by Section 13(c) of the 1940 Act) for this annual reporting period.

**Item 7.** **Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies**

The Registrant's Board of Directors believes that the voting of proxies with respect to securities held by the Registrant is an important element of the overall investment process. The Board has adopted a Proxy Voting Policy (the "Registrant's Proxy Voting Policy") on behalf of the Registrant which delegates the responsibility for decisions regarding proxy voting for securities held by the Registrant to Fundrise Advisors, LLC, the Registrant's investment adviser (the "Adviser"), subject to the Board's continuing oversight. The Registrant's Chief Compliance Officer shall ensure that the Adviser has adopted a Proxy Voting Policy, which it will use to vote proxies for securities held by the Registrant (the "Adviser's Proxy Voting Policy") in a manner that is consistent with the Registrant's Proxy Voting Policy. The Board, including a majority of the Independent Directors, must approve the Adviser's Proxy Voting Policy as it relates to the Registrant. Due to the nature of the securities and other assets in which the Registrant intends to invest, proxy voting decisions for the Registrant may be limited.

The Registrant believes that the voting of proxies is an important part of portfolio management as it represents an opportunity for Shareholders to make their voices heard and to influence the direction of a company. The Registrant is committed to voting proxies received in a manner consistent with the best interests of the Registrant's Shareholders. The Registrant believes that the Adviser is in the best position to make individual voting decisions for the Registrant consistent with the Registrant's Proxy Voting Policy. Therefore, subject to the oversight of the Board, the Registrant has delegated the following duties to the Adviser pursuant to the Registrant's Proxy Voting Policy:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· to make the proxy voting
 decisions for the Registrant, in accordance with the Adviser's Proxy Voting Policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· to assist the Registrant
 in disclosing its proxy voting record as required by Rule 30b1-4 under the 1940 Act, including providing the following information
 for each matter with respect to which the Registrant is entitled to vote: (a) information identifying the matter voted on; (b) whether
 the matter was proposed by the issuer or by a security holder; (c) whether and how the Registrant cast its vote; and (d) whether
 the Registrant cast its vote for or against management; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· to provide to the Board,
 at least annually, a record of each proxy voted by the Adviser on behalf of the Registrant, including a report on the resolution
 of all proxies identified by the Adviser as involving a conflict of interest.

In cases where a matter with respect to which the Registrant was entitled to vote presents a conflict between the interest of the Registrant's Shareholders, on the one hand, and those of the Adviser or its affiliate, on the other hand, the Registrant shall always vote in the best interest of the Registrant's Shareholders. For purposes of the Registrant's Proxy Voting Policy, a vote shall be considered in the best interest of the Registrant's Shareholders when a vote is cast consistent with the specific voting policy as set forth in the Adviser's Voting Policy, provided such specific voting policy was approved by the Board. The Adviser shall review with the Board any proposed material changes or amendments to the Adviser's Proxy Voting Policy prior to implementation.

The Registrant will file a Form N-PX with the Registrant's complete proxy voting record for the 12 months ended June 30, no later than August 31 of each year.

The copy of the Adviser's Proxy Voting Policy is set forth below.

**Adviser Proxy Voting Policies and Procedures**

Fundrise Advisors, LLC (the "Adviser"), as a matter of policy and as a fiduciary to the Fundrise Income Real Estate Fund, LLC (the "Fund"), has the responsibility for voting proxies for securities consistent with the best interests of the Fund. The Adviser maintains written procedures as to the handling, voting and reporting of proxy voting and makes appropriate disclosures about the Adviser's proxy procedures and the availability of the Adviser's proxy voting record. In general, the Adviser does not receive proxies to be voted due to the nature of its investments on behalf of the Fund; the procedures maintained by the Adviser are intended to comply with Rule 206(4)-6 under the Investment Advisers Act of 1940 (the "Advisers Act") in the infrequent instance that the Adviser receives a proxy, or other action requiring a vote, from a security held by the Fund.

1. Background and Description

In general, proxy voting is an important right of shareholders and reasonable care and diligence must be undertaken to ensure that such rights are properly and timely exercised. Investment advisers registered with the U.S. Securities and Exchange Commission, and which exercise voting authority with respect to client securities, are required by Rule 206(4)-6 under the Advisers Act to (a) adopt and implement written policies and procedures that are reasonably designed to ensure that client securities are voted in the best interests of clients, which must include how an adviser addresses material conflicts that may arise between an adviser's interests and those of its clients; (b) disclose to clients how they may obtain information from the adviser with respect to the voting of proxies for their securities; (c) describe to clients a summary of its proxy voting policies and procedures and, upon request, furnish a copy to its clients; and (d) maintain certain records relating to the adviser's proxy voting activities when the adviser does have proxy voting authority.

The purpose of these procedures (the "Procedures") is to set forth the principles, guidelines and procedures by which the Adviser may vote the securities held by the Fund for which the Adviser may exercise voting authority and discretion. These Procedures have been designed to ensure that proxies are voted in the best interests of the Fund in accordance with fiduciary duties and Rule 206(4)-6 under the Advisers Act.

2. Responsibility

The Adviser's Chief Compliance Officer (together with any designees, the "CCO") has responsibility for the implementation and monitoring of the Procedures, including associated practices, disclosures and recordkeeping.

3. Procedures

The Adviser has adopted the procedures below to implement its proxy voting policy and to monitor and ensure that the policy is observed and amended or updated, as appropriate.

*Voting Procedures*

In the event the Adviser's personnel receive proxy materials on behalf of the Fund, the personnel will forward such materials to the appropriate members of the Adviser's Investment Committee to vote the proxy. The Adviser's Investment Committee will analyze the proxy materials and determine how the Adviser should vote the proxy in accordance with applicable voting guidelines below. The CCO is responsible for coordinating this process in a timely and appropriate manner and delivering the proxy prior to the voting deadline.

The Adviser may engage a third-party proxy research and voting service to assist it in researching, recordkeeping and voting of proxies, subject to appropriate oversight.

*Proxy Voting Guidelines*

The following guidelines (the "Guidelines") will inform the Adviser's proxy voting decisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The guiding principle by
 which the Adviser votes on all matters submitted to security holders is the maximization of the ultimate economic value of the Fund's
 holdings. The Adviser does not permit voting decisions to be influenced in any manner that is contrary to, or dilutive of, the guiding
 principle set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Adviser will seek to
 avoid situations where there is any material conflicts of interest affecting its voting decisions. Any material conflicts of interest,
 regardless of whether actual or perceived, will be addressed in accordance with the conflict resolution procedures (see below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Adviser generally will
 vote on all matters presented to security holders in any proxy. However, Adviser reserves the right to abstain on any particular
 vote or otherwise withhold its vote on any matter if, in the judgment of Adviser, the costs associated with voting such proxy outweigh
 the benefits to the Fund or if the circumstances make such an abstention or withholding otherwise advisable and in the best interest
 of the Fund, in the judgment of Adviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Proxies will be voted in
 accordance with the Fund's proxy voting policies and procedures, any applicable investment policies or restrictions of the
 Fund and, to the extent applicable, any resolutions or other instructions approved by the Fund's Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Absent any legal or regulatory
 requirement to the contrary, the Adviser generally will seek to maintain the confidentiality of the particular votes that it casts
 on behalf of the Fund; however, the Adviser recognizes that the Fund must disclose the votes cast on its behalf in accordance with
 all legal and regulatory requirements.

While these Guidelines are intended to provide a benchmark for voting standards, each vote is ultimately cast on a case-by-case basis, taking into consideration the Adviser's contractual obligations to the Fund and all other relevant facts and circumstances at the time of the vote (such that these Guidelines maybe overridden to the extent Adviser believes appropriate).

*Conflicts of Interest*

In certain instances, a potential or actual material conflict of interest may arise when the Adviser votes a proxy. As a fiduciary to the Fund, the Adviser takes these conflicts very seriously. While the Adviser's primary goal in addressing any such conflict is to ensure that proxy votes are cast in the Fund's best interest and are not affected by the Adviser's potential or actual material conflict, there are a number of courses that the Adviser may take. The final decision about which course to follow shall be made by the Adviser's Investment Committee. The Investment Committee may cause any of the following actions, among others, to be taken in that regard:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· vote the relevant proxy
 in accordance with the vote indicated by the Guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· vote the relevant proxy
 as an exception to Guidelines, provided that the reasons behind the voting decision are in the best interest of the Fund, are reasonably
 documented and are approved by the Adviser's CCO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· engage an unaffiliated
 third-party proxy advisor to provide a voting recommendation or direct the proxy advisor to vote the relevant proxy in accordance
 with its independent assessment of the matter; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· "echo vote"
 or "mirror vote" the relevant proxy in the same proportion as the votes of other proxy holders.

*Disclosure*

The Adviser will provide conspicuously displayed information in the Fund's registration statement summarizing these Procedures, including a statement that Shareholders may request information regarding how the Adviser voted the Fund's proxies, and may request a copy of these Procedures.

*Requests for Information*

All requests for information regarding proxy votes, or these Procedures, received by any Adviser personnel should be forwarded to the Adviser's CCO. In response to any request from a Fund shareholder, the CCO will prepare a written response with such information as the CCO determines, in its sole discretion, should be shared with the Fund shareholder.

*Recordkeeping*

The Adviser's CCO shall retain the following records:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· These Procedures and any
 amendments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Each proxy statement that
 the Adviser receives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· A record of each vote that
 the Adviser casts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Any document the Adviser
 created that was material to deciding how to vote a proxy, or that memorializes that decision; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· A copy of each written
 request for information on how the Adviser voted proxies, and a copy of any written response.

**Item 8.** **Portfolio Managers of Closed-End Management Investment Companies**

(a)(1) As of the date of this filing, Benjamin S. Miller, Brandon T. Jenkins, and R. Whitaker Booth are the Registrant's portfolio managers and are primarily responsible for day-to-day management of the Registrant's investment portfolio.

*Benjamin S. Miller* – Mr. Miller currently serves as Chief Executive Officer of the Adviser and has served as Chief Executive Officer and a Director of Rise Companies since its inception on March 14, 2012. In December 2011, Mr. Miller started Popularise LLC, a real estate crowdsourcing website, which he currently manages. Prior to Rise Development, Mr. Miller had been a Managing Partner of the real estate company WestMill Capital Partners from October 2010 to June 2012, and before that, was President of Western Development Corporation from April 2006 to October 2010, after joining the company in early 2003 as a board advisor and then as COO in 2005. Western Development Corp. is one of the largest retail, mixed-use real estate companies in Washington, D.C.. While at Western Development, Mr. Miller led the development activities of over 1.5 million square feet of property, including more than $300 million of real estate acquisition and financing. Mr. Miller was an Associate and part of the founding team of Democracy Alliance, a progressive investment collaborative, from 2003 until he joined Western Development in 2005. From 1999 to 2001, Mr. Miller was an associate in business development at Lyte Inc., a retail technology start-up. Starting in 1997 until 1999, Mr. Miller worked as an analyst at a private equity real estate fund, Lubert-Adler, and for venture capital firm IL Management. Mr. Miller has a Bachelor of Arts from the University of Pennsylvania. Mr. Miller is on the Board of Trustees of the National Center for Children and Families.

*Brandon T. Jenkins* – Mr. Jenkins currently serves as Chief Operating Officer of the Adviser and has served in such capacities with the sponsor since February of 2014, prior to which time he served as Head of Product Development and Director of Real Estate which he continues to do currently. Additionally, Mr. Jenkins has served as Director of Real Estate for WestMill Capital Partners since March of 2011. Previously, Mr. Jenkins spent two and a half years as an investment advisor and sales broker at Marcus & Millichap, the largest real estate investment sales brokerage in the country. Prior to his time in brokerage, Mr. Jenkins also worked for Westfield Corporation, a leading shopping center owner. Mr. Jenkins earned his Bachelor of Arts in Public Policy and Economics from Duke University.

*R. Whitaker Booth* – Mr. Booth has served as Senior Vice President of Real Estate at Rise Companies since February 2020, and has supported real estate acquisition, asset management and valuation functions since joining the company in July 2014. Previously, Mr. Booth worked in debt underwriting at Walker & Dunlop and RMBS litigation in Navigant Consulting's Disputes and Investigations practice. Mr. Booth received his MBA from University of Pennsylvania's Wharton School and his Bachelor of Science in Commerce from University of Virginia's McIntire School.

(a)(2) The portfolio managers primarily responsible for the day-to-day management of the Registrant's portfolio also manage other pooled investment vehicles, as indicated below. The following table identifies, as of December 31, 2022: (i) the number of other registered investment companies, other pooled investment vehicles and other accounts managed by each portfolio manager; (ii) the total assets of such companies, vehicles and accounts; and (iii) the number and total assets of such companies, vehicles and accounts that are subject to an advisory fee based on performance, unless otherwise noted:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Number of<br> Other<br> Accounts<br> Managed** | **Total Assets of<br> Other<br> Accounts<br> Managed<br> (Millions)** | **Number of<br> Other <br> Accounts<br> Managed<br> Paying<br> Performance<br> Fees** | **Total Assets of<br> Other Accounts<br> Managed <br> Paying<br> Performance Fees<br> (Millions)** |
| **Benjamin S. Miller** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Registered Investment Companies | 2 | $1319.03 | 0 | $0 |
| &nbsp;&nbsp;&nbsp;Other Pooled Investment Vehicles | 12 | $1604.42 | 1 | $45.22 |
| &nbsp;&nbsp;&nbsp;Other Accounts | 0 | $0 | 0 | $0 |
| **Brandon T. Jenkins** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Registered Investment Companies | 2 | $1319.03 | 0 | $0 |
| &nbsp;&nbsp;&nbsp;Other Pooled Investment Vehicles | 12 | $1604.42 | 1 | $45.22 |
| &nbsp;&nbsp;&nbsp;Other Accounts | 0 | $0 | 0 | $0 |
| **R. Whitaker Booth** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Registered Investment Companies | 1 | $1319.03 | 0 | $0 |
| &nbsp;&nbsp;&nbsp;Other Pooled Investment Vehicles | 12 | $1604.42 | 1 | $45.22 |
| &nbsp;&nbsp;&nbsp;Other Accounts | 0 | $0 | 0 | $0 |

---

<u>Conflicts of Interest</u>

Actual or apparent conflicts of interest may arise when a portfolio manager has day-to-day management responsibilities with respect to more than one investment account. Portfolio managers who manage other investment accounts in addition to a Registrant may be presented with the potential conflicts summarized below. The Adviser has adopted various policies and procedures designed to address potential conflicts of interest and intended to provide for fair and equitable management, also summarized below.

*General.* The officers and directors of the Adviser and the key real estate and debt finance professionals of Rise Companies who perform services for the Registrant on behalf of the Adviser are also officers, directors, managers, and/or key professionals of Rise Companies and other Fundrise entities (such as the eREITs<sup>®</sup> and the Fundrise eFund<sup>TM</sup> and any additional funds registered under the 1940 Act and sponsored by the Sponsor). These persons have legal obligations with respect to those entities that are similar to their obligations to the Registrant. In the future, these persons and other affiliates of Rise Companies may organize other real estate-related or debt-related programs and acquire for their own account real estate-related investments that may be suitable for the Registrant. In addition, Rise Companies may grant equity interests in the Adviser to certain management personnel performing services for the Adviser.

*Payment of Certain Fees and Expenses of the Adviser.* The Management Fee paid to Adviser will be based on the Registrant's NAV, which will be calculated by Rise Companies' internal accountants and asset management team. The Adviser may benefit by the Registrant retaining ownership of its assets at times when Shareholders may be better served by the sale or disposition of the Registrant's assets in order to avoid a reduction in the Registrant's NAV.

*Allocation of Investment Opportunities.* The Registrant relies on the Adviser's executive officers and Rise Companies' key real estate and debt finance professionals who act on behalf of the Adviser to identify suitable investments. Rise Companies and other Fundrise entities also rely on these same key real estate and debt finance professionals. Rise Companies has in the past, and expects to continue in the future, to offer other Fundrise Platform investment opportunities, primarily through the Fundrise Platform, including offerings that acquire or invest in commercial real estate ("CRE") equity investments, including multifamily residential properties, CRE loans, and other select real estate-related assets.

These additional programs may have investment criteria that compete with the Registrant.

If a sale, financing, investment or other business opportunity would be suitable for more than one program, Rise Companies will allocate it using its business judgment. Any allocation of this type may involve the consideration of a number of factors that Rise Companies determines to be relevant.

Except under any policies that may be adopted by the Adviser, which policies will be designed to minimize conflicts among the programs and other investment opportunities provided on the Fundrise Platform, no program or Fundrise Platform investment opportunity (including the Registrant) will have any duty, responsibility or obligation to refrain from:

🕐 engaging in the same or similar activities or lines of business as any program or Fundrise Platform investment opportunity;

🕐 doing business with any potential or actual tenant, lender, purchaser, supplier, customer or competitor of any program or Fundrise Platform investment opportunity;

🕐 engaging in, or refraining from, any other activities whatsoever relating to any of the potential or actual tenants, lenders, purchasers, suppliers or customers of any program or Fundrise Platform investment opportunity;

🕐 establishing material commercial relationships with another program or Fundrise Platform investment opportunity; or

🕐 making operational and financial decisions that could be considered to be detrimental to another program or Fundrise Platform investment opportunity.

In addition, any decisions by the Adviser to renew, extend, modify or terminate an agreement or arrangement, or enter into similar agreements or arrangements in the future, may benefit one program more than another program or limit or impair the ability of any program to pursue business opportunities. In addition, third parties may require as a condition to their arrangements or agreements with or related to any one particular program that such arrangements or agreements include or not include another program, as the case may be. Any of these decisions may benefit one program more than another program.

The Adviser may determine it appropriate for the Registrant and one or more Fundrise entities (such as the eREITs<sup>®</sup> and eFund<sup>TM</sup> and any additional funds registered under the 1940 Act and sponsored by the Sponsor) to participate in an investment opportunity. To the extent the Fund is able to make co-investments with other Fundrise entities, these co-investment opportunities may give rise to conflicts of interest or perceived conflicts of interest among the Registrant and the other participating Fundrise entities. To mitigate these conflicts, the Adviser will seek to execute such transactions for all of the participating entities, including the Registrant, on a fair and equitable basis, taking into account such factors as available capital, portfolio concentrations, suitability and any other factors deemed appropriate. However, there can be no assurance the risks posed by these conflicts of interest will be mitigated.

In order to avoid any actual or perceived conflicts of interest among the Fundrise Platform investment opportunities and with the Adviser's directors, officers and affiliates, the Registrant has adopted a conflicts of interest policy to specifically address some of the conflicts relating to the Registrant's activities. There is no assurance that these policies will be adequate to address all of the conflicts that may arise or will address such conflicts in a manner that is favorable to the Fund. The Adviser may modify, suspend or rescind the policies set forth in the conflicts policy, including any resolution implementing the provisions of the conflicts policy, in each case, without a vote of the Fund's Shareholders.

*Allocation of the Registrant Affiliates' Time.* The Registrant relies on Rise Companies' key real estate and debt finance professionals who act on behalf of the Adviser, including Mr. Benjamin S. Miller, for the day-to-day operation of the Registrant's business. Mr. Benjamin S. Miller is also the Chief Executive Officer of Rise Companies and other Fundrise entities. As a result of his interests in other Fundrise entities, his obligations to other investors and the fact that he engages in and he will continue to engage in other business activities on behalf of himself and others, Mr. Benjamin S. Miller will face conflicts of interest in allocating his time among the Registrant, the Adviser and other Fundrise entities and other business activities in which he is involved. However, the Registrant believes that the Adviser and its affiliates have sufficient real estate and debt finance professionals to fully discharge their responsibilities to the Fundrise entities for which they work.

*Receipt of Fees and Other Compensation by the Adviser and its Affiliates.* The Adviser and its affiliates will receive fees from the Registrant. These fees could influence the Adviser's advice to the Registrant as well as the judgment of affiliates of the Adviser, some of whom also serve as the Adviser's officers and directors and the key real estate and debt finance professionals of Rise Companies. Among other matters, these compensation arrangements could affect their judgment with respect to:

🕐 the continuation, renewal or enforcement of provisions in the LLC Agreement involving the Adviser and its affiliates or the Investment Management Agreement;

🕐 the offering of shares by the Registrant, which entitles the Adviser to a Management Fee and other fees;

🕐 acquisitions of investments and originations of equity or loans at higher purchase prices, which entitle the Adviser to higher acquisition fees and origination fees regardless of the quality or performance of the investment or loan;

🕐 borrowings up to the Registrant's stated borrowing policy to acquire investments and to originate loans, which borrowings will increase the Management Fee payable by the Registrant to the Adviser;

---

| | |
|:---|:---|
| 🕐 | whether the Registrant seeks necessary approvals to internalize the Registrant's management, which may entail acquiring assets (such as office space, furnishings and technology costs) and the key real estate and debt finance professionals of Fundrise Companies who are performing services for the Registrant on behalf of the Adviser for consideration that would be negotiated at that time and may result in these real estate and debt finance professionals receiving more compensation from the Registrant than they currently receive from Rise Companies; and |

---

🕐 whether and when the Registrant merges or consolidates its assets with other funds, including funds affiliated with the Adviser.

*Duties Owed by Some of the Registrant's Affiliates to the Adviser and the Adviser's Affiliates.* The Adviser's officers and directors and the key real estate and debt finance professionals of Rise Companies performing services on behalf of the Adviser are also officers, directors, managers and/or key professionals of:

🕐 Rise Companies;

🕐 the Adviser;

🕐 Fundrise, LLC;

🕐 other investment programs sponsored by Rise Companies; and

🕐 other Fundrise entities.

As a result, they owe duties to each of these entities, their shareholders, members and limited partners. These duties may from time to time conflict with the duties that they owe to the Registrant.

(a)(3) Each of the Registrant's portfolio managers receives compensation for his services, including services performed for the Registrant on behalf of the Adviser, from Rise Companies. In an effort to retain key personnel, Rise Companies has structured its compensation plans for portfolio managers (and other key personnel) in a manner that it believes is competitive with other similar investment management firms. The portfolio managers are compensated with a fixed base salary and discretionary bonus based on, among other factors, the overall performance of Rise Companies. The bonus structure is formula driven and is not tied to the investment returns generated by, or the value of assets held in, the Registrant or any of the other accounts managed.

(a)(4) The following table discloses the dollar range of equity securities beneficially owned by the portfolio managers of the Fund as of December 31, 2022.

---

| | |
|:---|:---|
| **Name of Portfolio Manager** | **Dollar Range of<br> Equity<br> Securities in the<br> Fund** |
| Benjamin S. Miller | $10000-20000 |
| Brandon T. Jenkins | $0-10000 |
| R. Whitaker Booth | $0-10000 |

---

**Item 9.** **Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers**

There were no repurchases of equity securities by the Sponsor or other affiliated purchasers for this annual reporting period.

**Item 10.** **Submission of Matters to a Vote of Security Holders**

As of February 28, 2023, there have been no material changes in the procedures by which Shareholders may recommend nominees to the Board of Directors.

**Item 11.** **Controls and Procedures**

(a) The Registrant's principal executive officer and principal financial officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act) are effective as of a date within 90 days of the filing date of this Report, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are 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**

Not applicable.

**Item 13.** **Exhibits**

[(a)(1) Registrant's Code of Ethics is filed herewith.](tm237479d1_ex99-codeeth.htm)

[(a)(2) A separate certification for each of the Registrant's Principal Executive Officer and Principal Financial Officer as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) and Section 302 of the Sarbanes-Oxley Act of 2002 is filed herewith.](tm237479d1_ex99cert.htm)

(a)(3) Not applicable.

(a)(4) Not applicable.

[(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are filed herewith.](tm237479d1_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.

---

| | | |
|:---|:---|:---|
| **Fundrise Income Real Estate Fund, LLC** | **Fundrise Income Real Estate Fund, LLC** | **Fundrise Income Real Estate Fund, LLC** |
| By: | /s/ Benjamin S. Miller | /s/ Benjamin S. Miller |
|  | Name: | Benjamin S. Miller |
|  | Title: | President |
| Date: | February 28, 2023 | February 28, 2023 |

---

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 in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| By: | /s/ Benjamin S. Miller | /s/ Benjamin S. Miller |
|  | Name: | Benjamin S. Miller |
|  | Title: | Principal Executive Officer |
| Date: | February 28, 2023 | February 28, 2023 |

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| | | |
|:---|:---|:---|
| By: | /s/ Alison A. Staloch | /s/ Alison A. Staloch |
|  | Name: | Alison A. Staloch |
|  | Title: | Treasurer and Principal Financial/Accounting Officer |
| Date: | February 28, 2023 | February 28, 2023 |

---

## Ex-99.Codeeth

**Exhibit 99.CODEETH**

**FINANCIAL OFFICER CODE OF ETHICS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Introduction</u> 

The reputation and integrity of Fundrise Income Real Estate Fund, LLC (the "Fund") are valuable assets that are vital to the Fund's success. The Fund has adopted this Code of Ethics (the "Code") to comply with Section 406 of the Sarbanes-Oxley Act of 2002 and the rules promulgated by the Securities and Exchange Commission (the "SEC") thereunder. This Code is in addition to, not in replacement of, the Code of Ethics adopted by the Fund for access persons pursuant to Rule 17j-1 under the Investment Company Act of 1940 (the "1940 Act").

The Fund requires its Principal Executive Officer, Principal Financial/Accounting Officer, or other Fund officers performing similar functions (collectively, the "Principal Officers") to maintain the highest ethical and legal standards while performing their duties and responsibilities to the Fund, with particular emphasis on those duties that relate to the preparation and reporting of the financial information of the Fund. The principles and responsibilities below shall govern the professional conduct of the Principal Officers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Honest and Ethical Conduct</u> 

The Principal Officers shall act with honesty and integrity, avoiding actual or apparent conflicts of interest in personal and professional relationships, and shall report any material transaction or relationship that reasonably could be expected to give rise to such conflict between their interests and those of the Fund to the Audit Committee of the Board of Directors of the Fund (the "Board") or to the full Board and, in addition, to any other appropriate person or entity that may reasonably be expected to deal with any conflict of interest in a timely and expeditious manner.

The Principal Officers shall act in good faith, responsibly, with due care, competence and diligence, without misrepresenting material facts or allowing their independent judgment to be subordinated or compromised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Financial Records and Reporting</u> 

The Principal Officers shall provide full, fair, accurate, timely and understandable disclosure in the reports and/or other documents to be filed with or submitted to the SEC or other applicable body by the Fund, or that is otherwise publicly disclosed or communicated. The Principal Officers shall comply with applicable rules and regulations of federal, state, and local governments, and other appropriate private and public regulatory agencies.

The Principal Officers shall respect the confidentiality of information acquired in the course of their work and shall not disclose such information except when authorized or legally obligated to disclose. The Principal Officers will not use confidential information acquired in the course of their duties as Principal Officers.

The Principal Officers shall share knowledge and maintain skills important and relevant to the Fund's needs; shall proactively promote ethical behavior of the Fund's officers and with industry peers and associates; and shall maintain control over and responsibly manage assets and resources employed or entrusted to them by the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Compliance with this Code of Ethics</u> 

The Principal Officers shall promptly report any violations of this Code to the Fund's Chief Compliance Officer (the "CCO"), the Audit Committee of the Board or the full Board and shall be held accountable for strict adherence to this Code. A proven failure to uphold the standards stated herein shall be grounds for such sanctions as shall be reasonably imposed by the Board.

Principal Officers who report violations or suspected violations in good faith will not be subject to retaliation of any kind. Reported violations will be investigated and addressed promptly and will be treated confidentially to the extent possible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Amendment and Waiver</u> 

This Code may only be amended or modified by approval of the Board. Any substantive amendment that is not technical or administrative in nature or any material waiver, implicit or otherwise, of any provision of this Code of Ethics, shall be communicated publicly in accordance with Item 2 of Form N-CSR under the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Questions about the Code</u> 

The Board has designated the CCO to implement and administer this Code. Any questions about this Code should be directed to the CCO.

## Ex-99.Cert

**Exhibit 99.CERT**

**<u>CERTIFICATION</u>**

I, Benjamin S. Miller, certify that:

1. I have reviewed this report on Form N-CSR of the Fundrise Income Real Estate Fund, LLC (File Number 811-23745, CIK Number 0001885551);

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(s) 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 schedule of investments, financial condition, results of operations, changes in net assets, cash flows, and financial highlights 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:

(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;

(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;

(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

(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 trustees (or persons performing the equivalent functions):

(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

(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: February 28, 2023

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| | |
|:---|:---|
| By: | /s/ Benjamin S. Miller |
|  | Benjamin S. Miller |
|  | President and Principal Executive Officer |

---

**<u>CERTIFICATION</u>**

I, Alison A. Staloch, certify that:

1. I have reviewed this report on Form N-CSR of the Fundrise Income Real Estate Fund, LLC (File Number 811-23745, CIK Number 0001885551);

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(s) 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 schedule of investments, financial condition, results of operations, changes in net assets, cash flows, and financial highlights of the registrant as of, and for, the period(s) 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:

(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;

(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;

(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

(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 trustees (or persons performing the equivalent functions):

(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

(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: February 28, 2023

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| | |
|:---|:---|
| By: | /s/ Alison A. Staloch |
|  | Alison A. Staloch |
|  | Treasurer and Principal Financial/Accounting Officer |

---

## Exhibit 99.906

**Exhibit 906.CERT**

**<u>CERTIFICATION</u>**

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code), each of the undersigned officers of the Fundrise Income Real Estate Fund, LLC (the "Registrant") does hereby certify, to such officer's knowledge, that:

The annual report on Form N-CSR of the Registrant for the period ended December 31, 2022 (the "Form N-CSR") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: February 28, 2023

---

| | |
|:---|:---|
| By: | /s/ Benjamin S. Miller |
|  | Benjamin S. Miller |
|  | President and Principal Executive Officer |

---

Date: February 28, 2023

---

| | |
|:---|:---|
| By: | /s/ Alison A. Staloch |
|  | Alison A. Staloch |
|  | Treasurer and Principal Financial/Accounting Officer |

---