# EDGAR Filing Document

**Accession Number:** 0001953520
**File Stem:** 0001193125-26-187734
**Filing Date:** 2026-4
**Character Count:** 1085377
**Document Hash:** cc9a110da1d864d0bfe29d9bc9b6e830
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-187734.hdr.sgml**: 20260428

**ACCESSION NUMBER**: 0001193125-26-187734

**CONFORMED SUBMISSION TYPE**: 10-12G

**PUBLIC DOCUMENT COUNT**: 16

**FILED AS OF DATE**: 20260428

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Fidelity Core Real Estate Fund
- **CENTRAL INDEX KEY:** 0001953520

**ORGANIZATION NAME:**
- **EIN:** 886504113
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-12G
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56839
- **FILM NUMBER:** 26909222

**BUSINESS ADDRESS:**
- **STREET 1:** 245 SUMMER STREET
- **CITY:** BOSTON
- **STATE:** MA
- **ZIP:** 02210
- **BUSINESS PHONE:** 617-563-7000

**MAIL ADDRESS:**
- **STREET 1:** 245 SUMMER STREET
- **CITY:** BOSTON
- **STATE:** MA
- **ZIP:** 02210

##### [**Table of Contents**](#toc)
**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**WASHINGTON, D.C. 20549** 

**FORM 10** 

**GENERAL FORM FOR REGISTRATION OF SECURITIES** 

**PURSUANT TO SECTION 12(b) OR 12(g) OF** 

**THE SECURITIES EXCHANGE ACT OF 1934** 

## Fidelity Core Real Estate Fund
**(Exact name of registrant as specified in its charter)** 

---

| | |
|:---|:---|
| **Maryland** | **88-6504113** |
| **(State or other jurisdiction of<br>incorporation or organization)** | **(I.R.S. Employer<br>Identification No.)** |

---

---

| | |
|:---|:---|
| **245 Summer Street,**<br> **Boston Massachusetts** | **02210** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**617-563-7000** 

**(Registrant's telephone number, including area code)** 

***with copies to:***

---

| | |
|:---|:---|
| **Lindsey Magaro**<br> **Alston & Bird LLP**<br> **1201 West Peachtree Street**<br> **Atlanta, GA 30309**<br> **(404) 881-7410** | **Aaron Hendricson**<br> **Alston & Bird LLP**<br> **2200 Ross Avenue, Suite 2300<br>Dallas, TX 75201**<br> **(214) 922-3412** |

---

**Securities to be registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:**

**None** 

**Securities to be registered pursuant to Section 12(g) of the Securities Exchange Act of 1934:** 

**Shares of beneficial interest** 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
|  |  | Emerging Growth Company | ☒ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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##### [**Table of Contents**](#toc)
**FIDELITY CORE REAL ESTATE FUND** 

**TABLE OF CONTENTS** 

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
|  [Explanatory Note](#tx91905_1) | [Explanatory Note](#tx91905_1) | ii |
|  [Cautionary Note Regarding Forward-Looking Statements](#tx91905_2) | [Cautionary Note Regarding Forward-Looking Statements](#tx91905_2) | iii |
|  [Summary Risk Factors](#tx91905_3) | [Summary Risk Factors](#tx91905_3) | iv |
|  Item 1. | [Business](#tx91905_4) | 1 |
|  Item 1A. | [Risk Factors](#tx91905_5) | 19 |
|  Item 2. | [Financial Information](#tx91905_6) | 60 |
|  Item 3. | [Properties](#tx91905_7) | 71 |
|  Item 4. | [Security Ownership of Certain Beneficial Owners and Management](#tx91905_8) | 71 |
|  Item 5. | [Trustees and Executive Officers](#tx91905_9) | 72 |
|  Item 6. | [Executive Compensation](#tx91905_10) | 74 |
|  Item 7. | [Certain Relationships and Related Transactions, and Trustee Independence](#tx91905_11) | 74 |
|  Item 8. | [Legal Proceedings](#tx91905_12) | 82 |
|  Item 9. | [Market Price of and Dividends on the Registrant's Common Equity and Related Shareholder Matters](#tx91905_13) | 83 |
|  Item 10. | [Recent Sales of Unregistered Securities](#tx91905_14) | 93 |
|  Item 11. | [Description of Registrant's Securities to Be Registered](#tx91905_15) | 94 |
|  Item 12. | [Indemnification of Trustees and Officers](#tx91905_16) | 106 |
|  Item 13. | [Financial Statements and Supplementary Data](#tx91905_17) | 107 |
|  Item 14. | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#tx91905_18) | 107 |
|  Item 15. | [Financial Statements and Exhibits](#tx91905_19) | 108 |

---

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##### [**Table of Contents**](#toc)
**Explanatory Note** 

The Company is filing this General Form for Registration of Securities on Form 10 (this "Registration Statement") with the Securities and Exchange Commission (the "SEC") under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), to register its common shares of beneficial interest ("Shares") under Section 12(g) of the Exchange Act and comply with applicable requirements thereunder.

When used in this Registration Statement, "the Company" refers to Fidelity Core Real Estate Fund, a Maryland statutory trust, and, as required by context, Fidelity Core Real Estate Operating Partnership LP, a Delaware limited partnership, which the Company refers to as the "Operating Partnership," and to its respective subsidiaries.

This Registration Statement does not constitute an offer of the Company's Shares or any other securities. Once this Registration Statement has been deemed effective, the Company will be subject to the requirements of Section 13(a) of the Exchange Act, including the rules and regulations promulgated thereunder, which will require the Company, among other things, to file annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, and the Company will be required to comply with all other obligations of the Exchange Act applicable to issuers filing registration statements pursuant to Section 12(g) of the Exchange Act. Additionally, the Company will be subject to the proxy rules in Section 14 of the Exchange Act and the Company, trustees, executive officers, and principal shareholders will be subject to the reporting requirements of Sections 13 and 16 of the Exchange Act.

ii

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##### [**Table of Contents**](#toc)
**Cautionary Note Regarding Forward-Looking Statements** 

This Registration Statement contains forward-looking statements about the Company's business, including, in particular, statements about its plans, strategies and objectives. These forward-looking statements can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," "identified" or other similar words or the negatives thereof. These may include financial projections and estimates and their underlying assumptions, statements about plans, objectives and expectations with respect to future operations, statements with respect to originations, acquisitions, statements regarding future performance and statements regarding identified but not yet closed originations or acquisitions. Such forward-looking statements are inherently uncertain and there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. The Company believes these factors also include but are not limited to those described under "Item 1A. Risk Factors." These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document. Except as otherwise required by federal securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.

iii

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##### [**Table of Contents**](#toc)
**Summary Risk Factors** 

The following is a summary of the principal risks that may adversely affect the Company's business, financial condition and results of operations and cash flows. The following summary is not intended to be exhaustive and should be read in conjunction with the complete discussion of risk factors the Company faces, which are set forth below under "Item 1A. Risk Factors."

**Risks Related to the Company's Organizational Structure** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company has held certain of its current investments for only a limited period of time, and investors will not
have the opportunity to evaluate the Company's future investments before it makes them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Since there is no public trading market for the Company's Shares, repurchase of its Shares by the Company
will likely be the only way to dispose of your Shares. The Company's share repurchase plan provides shareholders with the opportunity to request that the Company repurchases their Shares on a quarterly basis, but the Company is not obligated
to repurchase any Shares and may choose to repurchase only some, or even none, of the Shares that have been requested to be repurchased in any particular quarter in its discretion. In addition, repurchases are subject to available liquidity and
other significant restrictions, including quarterly repurchase limits. Further, the Company's Trustee (as defined below) may modify or suspend the share repurchase plan if it deems such action to be in the Company's best interest and the
best interest of its shareholders. As a result, the Company's Shares should be considered as having only limited liquidity and at times may be illiquid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company cannot guarantee that it will make distributions, and if it does, it may fund such distributions from
sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings or offering proceeds, and the Company has no limits on the amounts it may pay from such sources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The purchase and repurchase price for the Company's Shares are generally based on the most recently
determined net asset value ("NAV") (subject to material changes) and are not based on any public trading market. While there are independent annual appraisals of the Company's properties, the Company's NAV may not accurately
reflect the actual price at which its properties could be liquidated on any given day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company is dependent on the diligence, skill, experience and network of business contacts of the Investment
Manager (as defined below). There can be no assurances that certain members of the team will continue to provide investment services to the Investment Manager. The loss of key personnel would limit the Company's ability to achieve its
investment objective and operate as anticipated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operational risks, including the risk of cyberattacks, may disrupt the Company's businesses, result in
losses or limit growth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Valuations and appraisals of the Company's assets are estimates of fair value and may not necessarily
correspond to realizable value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's NAV per Share amounts may change materially if the appraised values of its properties
materially change from prior appraisals or the actual operating results for a particular month differ from what it originally budgeted for that month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The return on an investment in the Company's Shares may be reduced if the Company is required to register
as an investment company under the Investment Company Act of 1940, as amended (the "Investment Company Act").

**Risks Related to Investments in Real Estate** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company is subject to the risks generally attributable to the ownership of real property, including changes
in global, national, regional or local economic, demographic or capital market conditions that impact the real estate market in general.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's portfolio may be heavily concentrated at any time in only a limited number of industries,
geographies or investments, and, as a consequence, its aggregate return may be substantially affected by the unfavorable performance of even a single investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's Trustee may change the Company's investment and operational policies or investment
guidelines at any time without shareholder consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Due to the relatively illiquid nature of the Company's investments, it may have difficulty promptly selling
its properties on favorable terms.

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##### [**Table of Contents**](#toc)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company faces competition from various entities for investment opportunities in properties, including REITs,
real estate operating companies, pension funds, insurance companies, investment funds and companies, partnerships and developers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Joint venture investments could be adversely affected by the Company's lack of sole decision-making
authority, its reliance on the financial condition of its joint venture partners and disputes between the Company and its joint venture partners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The inability of property managers to effectively operate the Company's properties and leasing agents to
profitably lease vacancies in its properties would hurt financial performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's properties face significant competition from other comparable properties in their markets.

**Risks Related to Debt Financing** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company has incurred mortgage indebtedness and other borrowings and expects to incur additional debt, which
may increase its business risks, hinder its ability to make distributions and decrease the value of shareholders' investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increases in interest rates could increase the amount of the Company's loan payments and adversely affect
its ability to make distributions to shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Volatility in the financial markets and challenging economic conditions could adversely affect the
Company's ability to secure debt financing on attractive terms and its ability to service any future indebtedness that it may incur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In the event the Company defaults under a mortgage loan, credit facility or other financing arrangement, the
Company's business could be adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• When providing financing, lenders may impose restrictions on the Company that affect its distribution and
operating policies and its ability to obtain additional loans.

**Risks Related to Conflicts of Interest** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Management Fee (as defined below) and Incentive Fee (as defined below) the Company pays to the Investment
Manager may not create proper incentives or may induce the Investment Manager to make certain investments, including speculative investments that increase the risk of the Company's real estate portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Investment Manager faces a conflict of interest because the compensation it receives for services performed
is based in part on the Company's NAV, which the Investment Manager is ultimately responsible for reviewing and confirming.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Investment Manager, the Trustee and their respective affiliates, principals and employees, including the
members of the Real Estate Investment Committee (as defined below), are not required to devote all or any specific portion of their working time to the Company's affairs and will face potential conflicts of interest in allocating their time
and services among the Company and such other business activities unrelated to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company may retain certain of the Investment Manager's affiliates from time to time for services
relating to the Company's investments and operations.

**Risks Related to the Company's REIT Status and Certain Other Tax Items** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If the Company does not qualify as a REIT, it will face serious tax consequences that will substantially reduce
the funds available to satisfy its obligations, to implement its business strategy and to make distributions to its shareholders for each of the years involved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compliance with REIT requirements may cause the Company to forego otherwise attractive opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compliance with REIT requirements may force the Company to liquidate or restructure otherwise attractive
investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company may incur tax liabilities that would reduce its cash available for distribution to shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's Trustee may revoke the Company's REIT election without shareholder approval, which may
cause adverse consequences to shareholders.

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##### [**Table of Contents**](#toc)
**Item 1. Business** 

**The Company** 

The Company is a Maryland statutory trust formed in 2022 under the Maryland Statutory Trust Act (Title 12 of the Corporations and Associations Article of the Annotated Code of Maryland).

The Company acquires and actively manages stabilized, income-generating real estate assets primarily located in the United States. Its investments will be diversified across a range of asset classes, with a focus on industrial, residential, office and retail properties. The Company may also, to a lesser extent, invest in other asset types. The Company may also invest in real estate debt and real estate-related securities, including the equity securities of public REITs and real estate investment funds, agency and non-agency residential mortgage-backed securities ("RMBS"), commercial mortgage-backed securities ("CMBS") and collateralized debt obligations ("CDOs").

The Company owns all of its investments through Fidelity Core Real Estate Operating Partnership LP, a Delaware limited partnership (the "Operating Partnership"). Fidelity CRET Trustee LLC, a Delaware limited liability company, is the Company's sole trustee (the "Trustee"). The Company is externally managed by Fidelity Diversifying Solutions LLC, a Delaware limited liability company and an affiliate of the Trustee (the "Investment Manager"). FMR LLC, a Delaware limited liability company ("FMR"), is the parent company of the Trustee and the Investment Manager.

The Company intends to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"). Furthermore, the Company intends to continue to operate in such a manner as to continue to qualify for taxation as a REIT under the applicable provisions of the Code for so long as the Trustee determines that REIT qualification remains in its best interest. The Company is structured as a non-listed, perpetual-life REIT, and therefore its securities are not listed on a national securities exchange and, as of the date of this Registration Statement, there is no plan to list its securities on a national securities exchange.

The Company is conducting a continuous private offering of up to $750 million in its Shares, provided that the Trustee may increase the amount of Shares offered and may terminate the offering at any time. The offering is being conducted pursuant to the exemption from registration provided by Section 4(a)(2) of the U.S. Securities Act of 1933, as amended (the "Securities Act"), and Regulation D promulgated thereunder.

The Company's principal executive offices are located at 245 Summer Street, Boston Massachusetts 02205, and the telephone number of its principal executive offices is 617-563-7000.

**Fidelity** 

Since Fidelity's founding in 1946, the firm has been known for its professional money management and comprehensive client services. Fidelity Investments is one of the world's largest providers of financial services with assets under administration of $18 trillion, including managed assets of $7.1 trillion, as of December 31, 2025. In 1977, Edward C. Johnson 3d became Chairman and Chief Executive Officer of FMR, succeeding his father, Edward C. Johnson 2d. In 2014, Abigail P. Johnson, daughter of Edward 3d, was named Chief Executive Officer of FMR. In 2016, Edward C. Johnson 3d retired as Chairman of FMR, Fidelity's parent company. Abigail P. Johnson, Chief Executive Officer of Fidelity, assumed the role of Chairman of FMR, with responsibility for the management of all FMR businesses, including Fidelity Financial Services and Fidelity's other diversified businesses and investments. Fidelity is a privately held company, with its stock entirely owned by employees and members of the Johnson family. Headquartered in Boston, Massachusetts, Fidelity employs more than 80,000 associates with a global presence spanning nine other countries across North America, Europe, Asia, and Australia.

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**The Trustee** 

The Trustee is a Delaware limited liability company and a wholly owned subsidiary of FMR. Pursuant to the Company's Declaration of Trust (as amended, restated or supplemented, the "Declaration of Trust"), its business and affairs are managed exclusively by or under the direction of the Trustee. Except as set forth in the Declaration of Trust, the Trustee has exclusive and absolute power, control and authority over the Company's business, affairs and property, and no holders of Shares (referred to herein as the Company's "shareholders") have any right to participate in or exercise control or management power over the Company's business and affairs. The Trustee will serve until its resignation or removal in accordance with the terms of the Declaration of Trust. See "Item 5. Trustees and Executive Officers" for additional information regarding the Trustee.

The Trustee may, from time to time, appoint, remove and replace the Company's officers, to serve at the pleasure of the Trustee, with such powers and duties as the Trustee may determine. The Company's officers may include a chief executive officer, a president, one or more vice presidents, a chief financial officer, a treasurer, a secretary, and such other officers with such powers and duties as the Trustee may deem necessary or desirable. See "Item 5. Trustees and Executive Officers" for additional information regarding the Company's executive officers.

**The Investment Manager** 

The Investment Manager is a Fidelity Investments company and a wholly owned subsidiary of FMR that primarily provides discretionary advisory and sub-advisory services. The Investment Manager is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator, is a member of the National Futures Association and is a registered investment adviser under the Investment Advisers Act of 1940, as amended (the "Advisers Act").

Pursuant to an Investment Management Agreement among the Company, the Operating Partnership and the Investment Manager (the "Investment Management Agreement"), the Investment Manager provides advisory and management services to the Company and the Operating Partnership. The Investment Manager leverages the resources of the entire Fidelity organization in advising and managing the Company. Pursuant to the Investment Management Agreement, the Trustee has delegated to the Investment Manager the authority to, among other things, source, evaluate and monitor investment opportunities and negotiate and execute upon the acquisition, management, financing and disposition of the Company's assets, subject in all cases to the terms of the Declaration of Trust, applicable law and the ultimate oversight of the Trustee. The Company's acquisitions and dispositions of real properties are reviewed and approved by the Investment Manager's Real Estate Investment Committee (as defined below).

Pursuant to the Investment Management Agreement, the Investment Manager has authority to engage and supervise, on the Company's and the Operating Partnership's behalf and at the Company's and Operating Partnership's expense, independent contractors, advisors, consultants, attorneys, accountants, administrators, auditors, appraisers and other service providers (which may include affiliates of the Investment Manager) that provide various services with respect to the Company and the Operating Partnership.

The Investment Management Agreement will remain in effect until the Company is terminated in accordance with the terms of the Declaration of Trust; *provided, however*, that either the Company or the Investment Manager may terminate the Investment Management Agreement at any time upon not less than 75 days' prior written notice to the other party. In addition, the Investment Management Agreement will automatically terminate in the event that the Trustee or one of its affiliates ceases to be the Company's trustee.

See "Item 7. Certain Relationships and Related Transactions, and Trustee Independence" for additional information regarding the Investment Management Agreement, including the fees and expense reimbursements the Company pays to the Investment Manager pursuant to the Investment Management Agreement.

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**Real Estate Investment Committee** 

The Investment Manager has established a standing committee (the "Real Estate Investment Committee") that reviews and approves the Company's real estate asset acquisitions and dispositions on behalf of the Investment Manager. The Real Estate Investment Committee meets as frequently as necessary to fulfill its duties. The Company will not enter into any binding agreement or commitment to acquire a real property or other asset without the Real Estate Investment Committee's prior approval. The Real Estate Investment Committee will typically employ a two-step process in which the Real Estate Investment Committee will give an initial, conditional approval of a proposed investment (*e.g*., subject to the Investment Manager completing due diligence) and will thereafter confer again to confirm that all due diligence or other conditions have been satisfied and provide a final approval.

In addition to approving asset acquisitions and dispositions, the Real Estate Investment Committee will meet periodically to review the Company's portfolio composition, the fair market values of individual real properties and the Company's financial performance.

The Real Estate Investment Committee currently comprises six senior Fidelity professionals from various real estate, portfolio management and research disciplines, three of whom are also the Company's executive officers. See "Item 5. Trustees and Executive Officers" for a discussion of the members of the Real Estate Investment Committee."

**Investment Objectives** 

The Company's investment objectives are to invest in a diversified portfolio of high-quality commercial real estate assets that will enable it to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide current income in the form of regular cash distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• preserve and protect invested capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• realize long-term capital appreciation through selective investment and proactive asset management; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provide an investment alternative for shareholders seeking to allocate a portion of their long-term investment
portfolios to commercial real estate.

The Company cannot provide any guarantee that it will achieve its investment objectives. See "Item 1A. Risk Factors."

**Investment Strategy** 

The Company acquires and actively manages stabilized, income-generating real estate assets. Its investments will be diversified across a range of asset classes, with a focus on industrial, residential, office, and retail properties. The Company may also, to a lesser extent, invest in other asset types. Diversification will primarily be achieved by acquiring a blend of properties across asset classes and geographic markets. The Company expects its real estate investments will focus primarily on properties located in the United States. However, the Company may eventually make proportionately smaller investments outside of the United States.

The Company believes that a property's value is primarily based on its ability to generate positive cash flows. The Company's strategic priority is to identify investment opportunities that it believes can generate strong and durable cash flows and seek to acquire such properties at a competitive price that it believes will support long-term potential capital appreciation at or above the long-term rate of inflation. The Company will not invest in unimproved land or ground-up real estate development projects; however, it may acquire real estate assets that allow for future ground-up development as a secondary (and not primary) investment strategy. For

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example, the Company might acquire an income-generating commercial real estate property with potential upside from the expansion of the building through limited development on the property site. Development of such expansion would not be necessary to meet the Company's original return objectives and therefore would be a secondary investment strategy to the income-generating commercial property.

The Company may also invest in real estate debt and real estate-related securities, including the equity securities of public REITs and real estate investment funds, agency and non-agency RMBS, CMBS and CDOs. The Company may also invest in money market instruments and other cash equivalents and short-term investments.

As an affiliate of Fidelity Investments, the Company benefits from the research capabilities and institutional knowledge of an organization that has managed through multiple investment cycles since its founding in 1946. Accordingly, the Company's approach to investment decision-making is based upon a commitment to independent, rigorous fundamental research. The Company believes this data driven approach will support the acquisition and management of real estate assets that can sustain performance through market cycles.

Furthermore, the Investment Manager's real estate investment team is comprised of seasoned real estate investment professionals with decades of combined global investment experience.

The Company believes that its intended structure as a perpetual-life REIT will allow it to acquire and manage its investment portfolio in an active and flexible manner. For example, if the Company considers a sector or market to be overvalued, it can apply its focus to another market or sector that it considers to be overlooked or to have better fundamentals. The Company also believes this structure is advantageous to its shareholders as it is not limited by a pre-determined operational period and the need to liquidate assets, potentially in an unfavorable market, to satisfy a liquidity event at the end of fund life.

As of the date hereof, the Company owns 13 properties, comprised of 3 residential properties, 5 industrial properties, 4 retail properties and 1 property it categorizes as "other." See "Item 2. Financial Information—Management's Discussion and Analysis of Financial Condition and Results of Operations—Investment Portfolio" for additional information regarding the Company's current property portfolio.

**Investment Process** 

***Asset Class Selection***

The Investment Manager invests across four main real estate asset classes: industrial, residential, office, and retail, based upon the ability of each sector to generate cash flow growth and capital appreciation.

Specific factors the Investment Manager takes into consideration when assigning a target allocation to each sector within the Company's portfolio include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• market pricing relative to risk-free and long-term average capitalization rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• strength of occupational demand for the asset class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• compelling supply/demand dynamics;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lease terms that support income growth; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• capital intensity.

***Geographic Market Selection***

The Investment Manager believes the most attractive geographic markets for real estate investment are those characterized by strong, sustainable economic growth. For each of the asset class allocations, the Investment

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Manager evaluates and selects geographic markets by utilizing a proprietary multi-step filtering process based on both macroeconomic and regional real estate market factors. The Investment Manager then analyzes the supply-demand and capital markets dynamics of each of the four target asset classes (industrial, residential, office, and retail) in each target market. The Investment Manager's final step is to select target market and asset class combinations it believes will produce the most attractive investment opportunities consistent with the Company's overall investment objectives. The final list of target market and asset class combinations will vary over time. The Investment Manager is continually monitoring markets and trends, and will update the geographic market selection model as needed given market changes.

***Property Selection***

Within the Company's target markets, it seeks to acquire well-located, income-generating properties at a discount to replacement cost (*i.e*., the cost to rebuild a property).

The Company capitalizes upon the Investment Manager's existing relationships with real estate owners, brokers, operating partners, and property managers to source opportunities that meet its investment objectives. Once the Investment Manager has identified a target property, the Investment Manager engages in a comprehensive underwriting process in order to validate the attractiveness of the investment and determine a purchase price and, if a non-binding offer is accepted, the Investment Manager presents the opportunity to the Real Estate Investment Committee for preliminary approval.

As part of Fidelity Investments, one of the largest asset managers in the world, the Company believes that counterparties have confidence in its ability to execute on acquisitions with speed and certainty, thereby enhancing the attractiveness of its bids.

Once an offer on a target property is approved by the Real Estate Investment Committee (as discussed above), the Investment Manager undertakes a due diligence process on the target property as set forth below.

***Target Property Underwriting and Due Diligence***

<u>Underwriting</u>

The Investment Manager's underwriting process is designed to ensure that a target property meets the Company's investment objectives based on a long-term business plan and proposed acquisition price. The underwriting process includes, but is not limited to, the following considerations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Financial*. The Investment Manager projects the financial performance of each potential acquisition,
including revenue, expenses, and capital projections. The Investment Manager develops projection assumptions from its analysis of historical operating performance, discussions with local real estate contacts or sector experts and a review of
published sources and data from its experience. Lastly, the Investment Manager analyzes various scenarios and exit strategies to establish the Company's bid range.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Physical*. The Investment Manager tours each target property, the surrounding area, and comparable and
relevant properties to assess market position, income potential, functionality, obsolescence risk, ongoing maintenance, and future capital improvements. If needed, the Investment Manager engages experts (internal or external) to provide input on
structural engineering or environmental considerations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Legal and Tax*. The Investment Manager conducts preliminary legal and tax review of material issues such as
encumbrances, title, local zoning restrictions, and non-standard lease terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Debt*. The Investment Manager works with potential lenders and debt brokers to understand the cost and
structure of debt that is available for each potential acquisition. Those inputs, as well as interim movements in interest rate markets, are incorporated into the Investment Manager's financial projections.

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<u>Due Diligence</u>

The Investment Manager's due diligence process includes, but is not limited to, the following considerations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Books and Records*. Third-party accounting consultants are used as deemed necessary to review relevant
books and records. For example, such consultants may be engaged to compare rent rolls to leases for industrial buildings, confirm cash flow information provided by the seller and conduct other similar types of analyses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Physical and Environmental*. Physical and environmental due diligence consists of an analysis of
engineering and environmental matters by third-party consultants. Conclusions from these reviews are incorporated into the Investment Manager's financial projections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Legal and Tax*. The Investment Manager works closely with outside counsel to review, diligence and
negotiate applicable legal and property specific documents pertaining to an investment (*e.g*., loan documents, leases, management agreements, purchase contracts, evidence of marketable title subject to liens and encumbrances, and title and
liability insurance policies). Additionally, the Investment Manager works with internal and external tax advisors to structure investments in an efficient manner and to ensure the Company maintains compliance with its intended structure as a
perpetual-life REIT.

Following such review, the Investment Manager negotiates applicable legal documentation (*e.g.*, a purchase and sale agreement or a joint venture agreement) and confirms certain financial, operating, and capital assumptions as well as the Company's business plan for its ownership period. The Investment Manager also undertakes a final review of the potential investment opportunity with the Real Estate Investment Committee for approval following the due diligence period and prior to making any non-refundable monetary commitments in connection with the acquisition of the property.

**Exit Strategies** 

One of the Investment Manager's primary considerations in evaluating any potential investment opportunity is the potential exit strategy. The Company typically plans to hold properties for an extended period; however, it may opportunistically exit an investment earlier than anticipated. When determining whether to sell a particular property, the Investment Manager will take the following steps:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Monitor Market*. Monitor market conditions to identify favorable conditions for asset sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Evaluate Asset*. Evaluate the condition of the property and identify any investment needed to ready the
asset for a successful sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Assess Investment Return*. Assess whether the expected sale price exceeds the net present
value of retaining the property.

**Form of Ownership** 

The Operating Partnership or a wholly owned subsidiary of the Operating Partnership acquires properties on the Company's behalf. In many cases, it acquires the entire equity ownership interest in properties and exercises control over such properties. However, as discussed below, the Company may also enter into joint ventures, general partnerships, co-tenancies and other participation arrangements with other investors, including affiliates of the Investment Manager, to acquire properties. The Company generally acquires fee simple interests for the properties (in which a subsidiary of the Operating Partnership owns both the land and the building improvements), but it may invest in leased fee and leasehold interests if the Investment Manager believes the investment is consistent with the Company's investment strategy and objectives.

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**Joint Ventures and Other Co-Ownership Arrangements** 

The Company may enter into joint ventures, partnerships, tenant-in-common investments or other co-ownership arrangements with entities affiliated with the Investment Manager, as well as with third parties, for the acquisition or improvement of properties. In some cases, the Company may not control the management of the affairs of the joint venture. The Company believes that a joint venture creates an alignment of interest with a private source of capital for the benefit of its shareholders. In determining whether to invest in a particular joint venture, the Investment Manager evaluates the real property that such joint venture owns or is being formed to own under the same criteria described herein for the selection of direct investments in properties.

The terms of any joint venture are established on a case-by-case basis considering all relevant facts, including the nature and attributes of the potential joint venture partner, the proposed structure of the joint venture, the nature of the operations, the liabilities and assets associated with the proposed joint venture and the size of the Company's interest in the joint venture. Other factors that the Company considers include its ability to manage and control the joint venture, its ability to exit the joint venture and its ability to control transfers of interests held by other partners to the joint venture. The Company's interests may not be totally aligned with those of its joint venture partners.

In the event that the Company's joint venture partner elects to sell a property or other asset held in any such joint venture, the Company may lack sufficient funds to exercise any right of first refusal or other purchase right that it may otherwise have the right to exercise. Entering into joint ventures with affiliates of the Investment Manager may result in certain conflicts of interest.

**Investments in Real Estate-Related Assets** 

***Real Estate Debt***

The Company's real estate debt strategy is focused on generating current income and contributing to its overall net returns. The type of real estate debt investments the Company seeks to acquire are obligations backed principally by real estate of the type that generally meets its criteria for direct investment. The Company may source and manage a real estate debt portfolio consisting of subordinated mortgages, mezzanine loans, loan participations and other forms of debt investments made with respect to real estate and real estate-related assets as well as mortgage loans, bank loans, and other interests relating to real estate and debt of companies in the business of owning or operating real estate-related businesses. Mezzanine loans may take the form of subordinated loans secured by a pledge of the ownership interests of either the entity owning the real property or an entity that owns (directly or indirectly) the interest in the entity owning the real property. These types of investments may involve a higher degree of risk than mortgage lending because the investment may become unsecured as a result of foreclosure by the senior lender. The Company expects that these investments will be generally illiquid in nature. Mortgage loans are typically secured by single-family, multifamily or commercial property and are subject to risks of delinquency and foreclosure. The ability of a borrower to repay a loan secured by a multifamily or commercial property typically is dependent primarily upon the successful operation of the property rather than upon the existence of independent income or assets of the borrower. The Company does not intend to make loans to other persons or to engage in the purchase and sale of any types of investments other than those related to real estate. The Company may also invest in agency and non-agency RMBS, CMBS and CLOs.

***Real Estate-Related Securities***

The Company's investments in real estate-related securities will serve as a cash management strategy before investing offering proceeds into longer-term real estate assets. In addition, the Company believes that, subject to applicable law, its real estate-related securities could be used, in part, to maintain appropriate liquidity levels to provide funds to satisfy repurchase requests under its share repurchase plan (the "SRP").

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The Company's investments in securities focus on the equity securities of public REITs and real estate investment funds. The Company expects that for any investment in such real estate-related securities, the underlying real estate will generally meet its criteria for direct investment.

The Company may invest in equity securities of REITs and other real estate-related companies that invest in commercial real estate, including common stock and preferred equity securities. These investments will be subject to the risks of the real estate market and securities market. Investing in certain REITs and real estate-related companies, which often have small market capitalizations, may involve the same risks as investing in other small capitalization companies. REITs and real estate-related companies may have limited financial resources and their securities may trade less frequently and in limited volume and may be subject to more abrupt or erratic price movements than larger company securities. The Company may invest in securities that are unregistered (but are eligible for purchase and sale by certain qualified institutional buyers) or are held by control persons of the issuer and securities that are subject to contractual restrictions on their resale.

The Company's investments in real estate-related securities currently consist of shares of common stock of publicly-traded REITs. As of December 31, 2025, such shares had an aggregate fair value of $0.52 million (based on the closing price of the common stock as reported by the applicable national securities exchange).

**Cash, Cash Equivalents and Other Short-Term Investments** 

The Company intends to continue to hold cash, cash equivalents and other short-term investments. These types of investments may include the following, to the extent consistent with maintaining the Company's qualification as a REIT under the Code:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• money market funds, cash and other cash equivalents (such as high-quality short-term debt instruments, including
commercial paper, certificates of deposit, bankers' acceptances, repurchase agreements, interest-bearing time deposits and credit rated corporate debt securities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. government or government agency securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• credit-rated corporate debt or asset-backed securities of U.S. or foreign entities, or credit-rated debt
securities of foreign governments or multi-national organizations.

The Company may temporarily sweep its uninvested cash into short-term money market funds, including those affiliated with the Investment Manager. To the extent that the Company makes such investments in money market instruments or funds managed by the Investment Manager or any of its affiliates, any fees charged in respect of such money market instruments or funds will not be waived with respect to the Company or otherwise offset against the Management Fee (as defined below) payable by the Company to the Investment Manager.

As of December 31, 2025, the Company's investments in money market funds had an aggregate fair value of $31.3 million (based on closing net asset value).

**Other Investments** 

The Company may, but does not presently intend to, make investments other than as described above. At all times, the Company intends to make investments in such a manner consistent with qualifying as a REIT under the Code.

**Environmental and Sustainability** 

The Company reviews, to the extent possible, financially material environmental and sustainability factors in connection with its real estate investment process. Among other criteria, the Investment Manager may assess industry-standard property sustainability credentials (*e.g*., LEED accreditation, Energy Star score), evaluate the

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cost and impact of current and future regulatory changes, and analyze the materiality of these factors on tenant demand. These determinations may not be conclusive and properties and the securities of companies may be purchased and retained, without limit, regardless of potential environmental and sustainability impact. The impact of environmental and sustainability analysis on the Company's performance is not specifically measurable as investment decisions are discretionary regardless of these considerations.

**Issuing Securities for Property** 

Subject to limitations contained in the Declaration of Trust, the Company may issue, or cause to be issued, Shares or limited partnership units in the Operating Partnership in any manner (and on such terms and for such consideration) in exchange for real estate. The Company's shareholders have no preemptive rights to purchase any such Shares or limited partnership units, and any such issuance might cause a dilution of a shareholder's investment. The Company may enter into additional contractual arrangements with contributors of property under which it would agree to repurchase a contributor's units in the Operating Partnership for Shares or cash, at the option of the contributor, at specified times.

**Leverage Policies** 

The Company uses financial leverage to provide additional funds to support its investment activities. The Company believes that the prudent use of leverage will allow it to make more investments than would otherwise be possible, resulting in a broader and more diversified investment portfolio, and will enhance investor returns.

The Company's target leverage ratio with respect to indebtedness is approximately 40% to 50%. As used herein, its "leverage ratio" is measured by dividing (i) consolidated property-level (consisting of mortgages secured by real properties) and entity-level (consisting of the Company's line of credit) debt net of cash and debt-related restricted cash, by (ii) the asset value of real estate investments (measured using the greater of fair market value and cost) plus the equity in settled real estate debt and real estate related investments. All of the above components of the leverage ratio are net of non-controlling interests in joint ventures. The Company may exceed the target leverage ratio set forth above. There is no limit, pursuant to the Declaration of Trust or otherwise, on the amount that the Company may borrow with respect to any individual asset or with respect to its entire portfolio.

The Company's actual leverage level will be affected by a number of factors, some of which are outside of its control. Significant inflows of proceeds from the sale of Shares generally will cause the leverage ratio to decrease at least temporarily. The leverage ratio will also increase or decrease with decreases or increases, respectively, in the value of the Company's portfolio. In such cases, the Company's leverage may remain at the higher level for an extended period until it receives additional net proceeds from its continuous offering of Shares or sell some of its assets to repay outstanding indebtedness.

The Company will seek to obtain both secured and unsecured debt. Secured debt may include long-term, fixed-rate, non-recourse financing on an interest-only or amortizing basis. The Company intends to blend exposure to floating-rate and fixed rate debt and stagger loan maturities across assets in order to manage downside risk.

***Line of Credit***

Effective January 27, 2023 (and as amended as of March 18, 2026), the Operating Partnership obtained a $50 million revolving line of credit from FMR, an affiliate of the Investment Manager (the "Line of Credit"). Loans under the Line of Credit may be used for, among other things, facilitating property acquisitions, funding working capital needs, and providing funds in anticipation of financing events or the receipt of the proceeds from the sale of Shares in the Company's ongoing private offering. Loans under the Line of Credit bear interest at a rate per annum equal to the Secured Overnight Financing Rate ("SOFR") plus a margin of 1.75%. Upon the occurrence and during the continuation of any event of default under the Line of Credit, the outstanding principal balance of all loans will bear interest at a rate per annum equal to 2.00% plus the rate otherwise applicable.

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The Company will pay an annual facility fee in the amount of 0.15% of the total commitment under the Line of Credit as well as an undrawn commitment fee of 0.15% of any undrawn commitment under the Line of Credit. The maturity date of the Line of Credit is March 18, 2029. The maturity date will be extended automatically for one three-year period unless either FMR or the Company elects not to extend the agreement 30 days before the then-current maturity date. The aggregate outstanding principal balance of all outstanding loans, and all accrued and unpaid interest thereon due under the Line of Credit will be due and payable in full on the earlier of (i) 180 days following the borrowing date thereof and (ii) the maturity date of the Line of Credit. See Note 7 and Note 13 to the Company's consolidated financial statements included in this Registration Statement for further details on the terms of the Line of Credit.

As of December 31, 2025, there were no loans outstanding under the Line of Credit.

**Temporary Strategies** 

During any periods in which the Company determines that economic or market conditions are unfavorable to real estate investors and a defensive investment strategy would be to its benefit, the Company may temporarily depart from its investment strategy as set forth above. During these periods, subject to compliance with applicable law and the Company's objective to maintain its qualification as a REIT for U.S. federal income tax purposes, the Company may deviate significantly from any target investment allocations that it may establish or invest all or any portion of its assets in U.S. government securities, including bills, notes and bonds that are either issued or guaranteed by the U.S. Treasury or by U.S. government agencies or instrumentalities, certificates of deposit issued against funds deposited in a bank or a savings and loan association, commercial paper, bankers' acceptances, fixed time deposits, shares of money market funds, credit-linked notes or any other fixed income securities that it considers consistent with such a defensive investment strategy. It is impossible to predict when, or for how long, the Company will use these alternative strategies. There can be no assurance that such strategies will be successful.

**Investment Allocation Policies** 

***General***

The Investment Manager and its affiliates may form, sponsor, advise, manage or invest in other investment funds, companies, vehicles, client accounts and firms in addition to the Company, including those with investment objectives and strategies substantially similar to the Company's investment objective and strategies. The Investment Manager and its affiliates may give advice or take action with respect to other investment vehicles that differs from the advice given with respect to the Company. There is no assurance that any particular investment opportunity will be made available to the Company or that it will receive a meaningful allocation of otherwise appropriate investment opportunities. The Company and the other investment funds, companies, vehicles and client accounts that the Investment Manager manages or advises are collectively referred to in this Registration Statement as "Clients" and each as a "Client."

***Real Property Investments***

Investment opportunities may be appropriate for the Company and one or more other Clients, including where multiple other Clients pursuing substantially similar strategies are actively investing. The Investment Manager's policies will seek to ensure the equitable allocation of such investment opportunities among the Company and other Clients over time. In cases where an investment may potentially be appropriate for several Clients, the Investment Manager will make a determination of the appropriateness of the investment opportunity for a particular Client based on a variety of factors the Investment Manager deems relevant (including, without limitation, the Client's investment objectives and focus, available capital, focus investments, investment size, the Client's existing portfolio, geographical location, target market, property type, investment limitations and other factors).

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It is not expected that real estate investments will be divided among Clients. Where the Investment Manager determines that a particular investment opportunity would be appropriate for more than one Client managed by the Company's real estate investment team, investment opportunities will generally be allocated by the Investment Manager on a rotational basis (*i.e*., opportunities will be allocated among Clients for whom the investment is deemed appropriate first to the Client that has gone the longest since last being awarded an opportunity under the rotation policy); provided that if an investment opportunity is a good fit (i) for a Client for which the investment opportunity falls within the focused market, strategy or asset class (the "Focus Strategy Client") and a Client for which such an investment is a supplemental investment not representing the focused market, strategy or asset class, the opportunity will be allocated to the Focus Strategy Client, or (ii) where a Client that is a fund has a need to make such investment to satisfy tax or regulatory requirements in connection with an upcoming closing, such Client would generally be given priority over other Clients. New Clients will start at the end of the rotation queue unless such client qualifies for an applicable exception as described above.

Potential investments in real estate may only be recommended to Proprietary Accounts if they do not meet the investment objectives or guidelines of Clients, have not been reviewed by the Real Estate Investment Committee, and such referral is approved by an allocation, conflicts or similar internal committee or sub-committee and the responsible compliance officer of the Investment Manager. Warehousing and similar arrangements for the benefit of Investment Manager-advised clients will be treated as third-party Client accounts and not as Proprietary Accounts. For purposes of this Registration Statement, "Proprietary Accounts" shall mean the accounts of FMR, its affiliates or their (or their Clients') respective directors, officers or employees including certain funds managed by FMR or one of its affiliated advisers.

Prior to making any allocation of an investment opportunity among the Company and other Clients, the Investment Manager will determine what additional factors may restrict or limit the offering of an investment opportunity to a particular Client in favor of other Clients. Possible restrictions or limitations include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Obligation to Offer*: The Investment Manager may be required to offer an investment opportunity to one or
more other Clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Related Investments*: The Investment Manager may first offer an investment opportunity related to an
investment previously made by another Client to such other Client at the exclusion of, or resulting in a limited offering to, the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Legal and Regulatory Exclusions*: The Investment Manager may determine that a particular Client or
investors in the Client (for funds) should be excluded from participating in an investment opportunity due to specific legal, regulatory and contractual restrictions placed on the participation of such persons in certain types of investment
opportunities.

In all cases, the Investment Manager will seek to make allocations of investment opportunities in a fair and equitable manner over time, and will not favor or disfavor, consistently or consciously, any Client in relation to any other Client. Further, the Investment Manager will not allocate investment opportunities based, in whole or in part, on (i) the relative fee structure or amount of fees paid by any Client or (ii) the profitability of any Client. The Investment Manager's allocation policies are subject to revision over time.

The Investment Manager will, on an ongoing basis, monitor investment activity to determine whether a real estate investment opportunity being reviewed by the Company's real estate investment team for the Company is also being reviewed by a separate portfolio management team on behalf of another Client. In cases where such an investment opportunity is being evaluated on behalf of, and may be appropriate for, both the Company and another Client and falls outside of the allocation methodology discussed above, the Investment Manager will consult with an allocation, conflicts or similar internal committee or sub-committee to decide on an appropriate allocation of a particular investment opportunity as between the Company and such other Client, which may take into account, among other things, the factors discussed above.

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***Securities Investments***

To the extent a particular investment in a public issuer, including public REITs, is suitable for both the Company and other Clients, it is the practice of the Investment Manager, when appropriate, to bunch orders of various accounts, including those of the Company and the other Clients and, in certain instances, Proprietary Accounts of the Investment Manager or its affiliates, for order entry and execution. Bunched orders may be executed through one or more broker-dealers. The allotment of trades among brokers is based on a variety of factors, which may include price, order size, the time of order, the security and market activity. A bunched trade executed with a particular broker is generally allocated pro rata among the accounts that are participating in the bunched trade until any account has been filled, after which the trade is allocated pro rata among the remaining accounts. Each broker's execution of a bunched order may be at a price different from another broker's bunched order execution price for the same security. Simultaneous portfolio transactions for the Company and one or more other Clients may decrease the prices received and increase the prices required to be paid by the Company for sales and purchases.

The Investment Manager and its affiliates that execute trades on behalf of the Company and other Clients have established allocation policies for their various accounts (including Proprietary Accounts) and security types (*e.g.*, equity, fixed income, and high income) to ensure allocations are appropriate given the clients' differing investment objectives and other considerations. These policies also apply to initial and secondary offerings. When, in the opinion of the executing party, the supply or demand is insufficient under the circumstances to satisfy all outstanding trade orders, across all security types the amount executed generally is distributed among participating accounts based on account asset size (for purchases), and security position size (for sales), or otherwise according to the allocation policies. With limited exceptions, the trading systems contain rules that allocate trades on an automated basis in accordance with these policies. Generally, any exceptions to these policies (*i.e.*, special allocations) must be approved by senior trading and compliance personnel and documented.

The Investment Manager's trade allocation policies define the applicable net assets to be used in the allocation process, generally by reference to the assets managed by each of the equity, high income or fixed income divisions, and by reference to certain security and portfolio types, such as equity, high income, or investment grade securities and portfolios. For portfolios that raise capital through private offerings, the equity, high income, and fixed income trade allocation policies define net assets based on expected, secured, or funded capital, or a combination thereof, depending upon the stage of the portfolio's fundraising process.

**Government Regulations** 

As an owner of real estate, the Company's operations are subject, in certain instances, to supervision and regulation by U.S. and other governmental authorities, and may be subject to various laws and judicial and administrative decisions imposing various requirements and restrictions, which, include among other things: (i) federal and state securities laws and regulations; (ii) federal, state and local tax laws and regulations; (iii) state and local laws relating to real property; (iv) federal, state and local environmental laws, ordinances, and regulations; and (v) various laws relating to housing, including permanent and temporary rent control and stabilization laws, the Americans with Disabilities Act of 1990 and the Fair Housing Amendment Act of 1988, among others.

Compliance with the federal, state and local laws described above has not had a material, adverse effect on the Company's business, assets, results of operations, financial condition and ability to pay distributions, and the Company does not believe that its existing portfolio will require it to incur material expenditures to comply with these laws and regulations.

**Competition** 

The Company faces competition from various entities for investment opportunities in properties, including other REITs, pension funds, insurance companies, investment funds and companies, partnerships and developers.

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In addition to third-party competitors, the Company may compete with other programs sponsored by the Investment Manager and its affiliates, particularly those with investment strategies that overlap with the Company's, subject to the Investment Manager's allocation policies as described herein. Many of these entities may have greater access to capital to acquire assets than the Company has.

In the face of this competition, the Company has access to the professionals of the Investment Manager and its affiliates and their industry expertise and relationships, which the Company believes provide it with a competitive advantage and help it source, evaluate and compete for potential investments. The Company believes these relationships will enable it to compete more effectively for attractive investment opportunities. However, the Company may not be able to achieve its business goals or expectations due to the competitive risks that it faces.

**Human Capital** 

The Company does not currently have any employees and does not expect to have any employees in the future. The Company's operations are conducted by the Investment Manager. Each of the Company's executive officers is an executive officer of the Trustee and is employed by FMR, an affiliate of the Investment Manager. See "Item 7. "Certain Relationships and Related Transactions, and Trustee Independence."

**REIT Qualification** 

The Company intends to elect and qualify to be taxed as a REIT under the Code commencing with the Company's taxable year ended December 31, 2023. The Company believes that it has been organized and has operated and will continue to operate in such a manner as to qualify for taxation as a REIT under the applicable provisions of the Code so long as its Trustee determines that REIT qualification remains in its best interest. So long as the Company qualifies as a REIT, it generally will not be subject to U.S. federal income tax on REIT-taxable income that it distributes annually to its shareholders. In order to qualify as a REIT for U.S. federal income tax purposes, the Company must continually satisfy tests concerning, among other things, the real estate qualification of sources of its income, the composition and values of its assets, the amounts it distributes to its shareholders and the diversity of ownership of its Shares. In order to comply with REIT requirements, the Company may need to forego otherwise attractive opportunities and limit expansion opportunities and limit the manner in which it conducts its operations or otherwise conduct some activities through a taxable REIT subsidiary ("TRS"), which will be subject to U.S. federal corporate income tax on its net income. See "Item 1A. Risk Factors—Risks Related to the Company's REIT Status and Certain Other Tax Items."

**Emerging Growth Company Status** 

The Company is and will remain an "emerging growth company" as defined in the JOBS Act until the earlier of (a) the last day of the fiscal year (i) following the fifth anniversary of the date of an initial public offering of the Company's securities pursuant to an effective registration statement under the Securities Act, (ii) in which it has total annual gross revenue of at least $1.235 billion, or (iii) in which it is deemed to be a large accelerated filer, which means the market value of its Shares held by non-affiliates exceeds $700 million as of the date of its most recently completed second fiscal quarter, and (b) the date on which it has issued more than $1.0 billion in non-convertible debt during the prior three-year period. For so long as the Company remains an "emerging growth company" it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies" including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley Act"). Also, because the Company is not a large accelerated filer or an accelerated filer under Section 12b-2 of the Exchange Act, and will not be for so long as its Shares are not traded on a securities exchange, the Company will not be subject to auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act even once it is no longer an emerging growth company. The Company cannot predict if investors will find its Shares less attractive because it may rely on some or all of these exemptions.

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**Investment Company Act Considerations** 

The Company intends to engage primarily in the business of investing in real estate and to conduct its operations, directly and through wholly or majority-owned subsidiaries, so that neither the Company, the Operating Partnership nor any of the subsidiaries of the Operating Partnership is required, as such requirements have been interpreted by the SEC, to register as an investment company under the Investment Company Act. A company is an "investment company" under the Investment Company Act:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• under Section 3(a)(1)(A), if it is, or holds itself out as being, engaged primarily, or proposes to engage
primarily, in the business of investing, reinvesting or trading in securities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• under Section 3(a)(1)(C), if it is engaged, or proposes to engage, in the business of investing,
reinvesting, owning, holding or trading in securities and owns, or proposes to acquire, "investment securities" having a value exceeding 40% of the value of its total assets (exclusive of government securities and cash items) on an
unconsolidated basis, which the Company refers to as the "40% test." The term "investment securities" generally includes all securities except U.S. government securities and securities of majority-owned subsidiaries that are
not themselves investment companies and are not relying on the exemption from the definition of investment company under Section 3(c)(1) or Section 3(c)(7) of the Investment Company Act.

The Company intends to acquire real estate, real estate debt and real estate-related securities directly, primarily by acquiring fee interests in real property and by originating and acquiring real estate debt. The Company may also make investments indirectly through joint venture entities, including joint venture entities in which it does not own a controlling interest. The Company plans to conduct its businesses primarily through the Operating Partnership, a majority-owned subsidiary, and expects to establish other direct or indirect majority-owned subsidiaries to hold particular assets.

The Company conducts operations so that it, the Operating Partnership and most, if not all, of the wholly and majority-owned subsidiaries of the Operating Partnership comply with the 40% test. The Company continuously monitors its holdings on an ongoing basis to determine compliance with this test. The Operating Partnership and most, if not all, of the wholly and majority-owned subsidiaries of the Operating Partnership do not rely on exemptions under either Section 3(c)(1) or 3(c)(7) of the Investment Company Act. Consequently, interests in the Operating Partnership and in these subsidiaries of the Operating Partnership (which are expected to constitute a substantial majority of the Company's assets) generally do not constitute "investment securities." Accordingly, the Company believes that it, the Operating Partnership and most, if not all, of the wholly and majority-owned subsidiaries of the Operating Partnership are not considered investment companies under Section 3(a)(1)(C) of the Investment Company Act.

In addition, the Company believes that neither it, the Operating Partnership nor any of the wholly or majority-owned subsidiaries of the Operating Partnership are considered an investment company under Section 3(a)(1)(A) of the Investment Company Act because they do not engage primarily or hold themselves out as being engaged primarily in the business of investing, reinvesting or trading in securities. Rather, the Company, the Operating Partnership and the subsidiaries of the Operating Partnership are primarily engaged in non-investment company businesses related to real estate. Consequently, the Company conducts its and the Operating Partnership and its subsidiaries' respective operations such that none of them are required to register as an investment company under the Investment Company Act.

The Company determines whether an entity is a majority-owned subsidiary. The Investment Company Act defines a majority-owned subsidiary of a person as a company of which 50% or more of the outstanding voting securities are owned by such person, or by another company which is a majority-owned subsidiary of such person. The Investment Company Act defines voting securities as any security presently entitling the owner or holder thereof to vote for the election of directors of a company. The Company treats entities in which it owns at least 50% of the outstanding voting securities as majority-owned subsidiaries for purposes of the 40% test. The

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Company has not requested that the SEC or its staff approve its treatment of any entity as a majority-owned subsidiary, and neither has done so. If the SEC or its staff was to disagree with the Company's treatment of one or more subsidiary entities as majority-owned subsidiaries, the Company would need to adjust its strategy and its assets in order to continue to pass the 40% test. Any adjustment in the Company's strategy could have a material adverse effect.

If the Company, the Operating Partnership or any of the wholly or majority-owned subsidiaries of the Operating Partnership would ever inadvertently fall within one of the definitions of "investment company," the Company intends to rely on the exemption provided by Section 3(c)(5)(C) of the Investment Company Act, which is available for entities "primarily engaged in the business of purchasing or otherwise acquiring mortgages and other liens on and interests in real estate." The SEC staff has taken the position that this exemption generally requires that at least 55% of an entity's assets be comprised of mortgages and other liens on and interests in real estate, also known as "qualifying assets," and at least another 25% of the entity's assets must be comprised of additional qualifying assets or a broader category of assets that the Company refers to as "real estate-related assets" under the Investment Company Act (and no more than 20% of the entity's assets may be comprised of miscellaneous assets).

The Company classifies its assets for purposes of its 3(c)(5)(C) exemption based upon no-action positions taken by the SEC staff and interpretive guidance provided by the SEC and its staff. These no-action positions are based on specific factual situations that may be substantially different from the factual situations the Company may face, and a number of these no-action positions were issued more than 20 years ago. No assurance can be given that the SEC or its staff will concur with the Company's classification of its assets. In addition, the SEC or its staff may, in the future, issue further guidance that may require the Company to re-classify its assets for purposes of the Investment Company Act. If the Company is required to re-classify its assets, it may no longer be in compliance with the exemption from the definition of an investment company provided by Section 3(c)(5)(C) of the Investment Company Act.

For purposes of determining whether the Company satisfies the 55%/25% test, based on certain no-action letters issued by the SEC staff, it intends to classify its fee interests in real property, held by the Company directly or through its wholly owned or majority-owned subsidiaries, as qualifying assets. In addition, based on no-action letters issued by the SEC staff, the Company will treat its investments in any joint ventures that in turn invest in qualifying assets such as real property as qualifying assets, but only if the Company is active in the management and operation of the joint venture and has the right to approve major decisions by the joint venture; otherwise, they will be classified as real estate-related assets. The Company will not participate in joint ventures in which it does not have or share control to the extent that it believes such participation would potentially threaten its status as a non-investment company exempt from the Investment Company Act. This may prevent the Company from receiving an allocation with respect to certain investment opportunities that are suitable for both the Company and one or more other Clients. The Company expects that no less than 55% of its assets will consist of investments in real property, including any joint ventures that it controls or in which it shares control. The Company will treat any investments in real estate-related securities as real estate-related assets, for purposes of determining whether it satisfies the 55%/25% test.

Qualifying for an exemption from registration under the Investment Company Act will limit the Company's ability to make certain investments. For example, these restrictions may limit the Company's and its subsidiaries' ability to invest directly in debt and equity tranches of securitizations and certain asset-backed securities, non-controlling equity interests in real estate companies or in assets not related to real estate. Although the Company intends to monitor its portfolio, there can be no assurance that it will be able to maintain this exemption from registration.

A change in the value of any of the Company's assets could negatively affect its ability to maintain its exemption from regulation under the Investment Company Act. To maintain compliance with the Section 3(c)(5)(C) exemption, the Company may be unable to sell assets it would otherwise want to sell and may

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need to sell assets it would otherwise wish to retain. In addition, the Company may have to acquire additional assets that it might not otherwise have acquired or may have to forego opportunities to acquire assets that it would otherwise want to acquire and would be important to its investment strategy.

To the extent that the SEC or its staff provides more specific guidance regarding any of the matters bearing upon the definition of investment company and the exemptions to that definition, the Company may be required to adjust its strategy accordingly. On August 31, 2011, the SEC issued a concept release and request for comments regarding the Section 3(c)(5)(C) exemption (Release No. IC-29778) in which it contemplated the possibility of issuing new rules or providing new interpretations of the exemption that might, among other things, define the phrase "liens on and other interests in real estate" or consider sources of income in determining a company's "primary business." Any additional guidance from the SEC or its staff could provide additional flexibility to the Company, or it could further inhibit its ability to pursue the strategies it has chosen.

If the Company is required to register as an investment company under the Investment Company Act, it would become subject to substantial regulation with respect to its capital structure (including the ability to use borrowings), management, operations, transactions with affiliated persons (as defined in the Investment Company Act), and portfolio composition, including disclosure requirements and restrictions with respect to diversification and industry concentration, and other matters. Compliance with the Investment Company Act would, accordingly, limit the Company's ability to make certain investments and require it to significantly restructure its business plan. For additional discussion of the risks that the Company would face if it were required to register as an investment company under the Investment Company Act, see "Item 1A. Risk Factors–Risks Related to the Company–Not Registered as an Investment Company."

**The Company's Private Offering** 

***Overview***

The Company is conducting a continuous private offering of up to $750 million in Shares, provided that the Trustee may increase the amount of Shares offered and may terminate the offering at any time. The offering is being conducted pursuant to the exemptions from registration under the Securities Act provided by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D promulgated under the Securities Act. Shares are available for purchase in the Company's private offering only to "accredited investors," as such term is defined by Rule 501(a) of the Securities Act.

The Company commenced its private offering on February 1, 2023. As of March 31, 2026, the Company has sold 33,543,375 Shares in the private offering (inclusive of 2,014,348 Shares issued pursuant to the distribution reinvestment plan ("DRIP")) for aggregate gross proceeds of $364,978,180.

***Transaction Price***

Shares are sold in the private offering on a monthly basis at the then-current "transaction price," which will vary and will generally equal the most recently determined NAV per Share. The Company's NAV may vary significantly from one month to the next. Although the transaction price for Shares is generally based on the most recently determined NAV per Share, the NAV per Share as of the date on which a shareholder's purchase is settled may be significantly different. The Company generally does not expect to change the transaction price from the most recently determined NAV per Share, but may offer Shares at a price that it believes reflects the NAV per Share more appropriately than the most recently determined NAV per Share, including by updating a previously disclosed transaction price, or suspend its offering in exceptional cases where it believes there has been a material change (positive or negative) to its NAV per Share since the most recently determined NAV due to the aggregate impact of factors such as general significant market events or disruptions or force majeure events.

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***NAV Per Share***

Generally, within 15 calendar days after the last calendar day of each month, the Company will determine its NAV per Share as of the last calendar day of such month, which will- generally be the transaction price for the following month. However, in certain circumstances, the transaction price will not be made available until a later time. The Company will make the transaction price for each month available via the Company's website at *institutional.fidelity.com*. For additional information on how the NAV per Share is calculated, see "Item 9. Market Price of and Dividends on the Registrant's Common Equity and Related Shareholder Matters."

***Subscription Procedures***

Subscriptions to purchase Shares may be made on an ongoing basis, but investors may only purchase Shares pursuant to accepted subscription orders as of the first business day of each month (based on the current transaction price), and to be accepted, a subscription request must be made with completed and executed subscription documents in good order and payment of the full purchase price of the Shares being subscribed for at least five business days prior to the first business day of the month. If a subscription is received less than five business days prior to the first business day of the month, unless waived by the Company, the subscription will be executed in the next month's closing at the transaction price applicable to that month. As a result of this process, and unless the subscription is cancelled prior to its acceptance, the price per Share at which a shareholder's subscription is executed may be different than the price per Share for the month in which they submitted their subscription.

For example, if an investor wishes to subscribe for Shares effective as of November 1<sup>st</sup> (or the next business day thereafter if November 1<sup>st</sup> is not a business day**)**, its subscription request must be received in good order at least five business days before November 1<sup>st</sup> (or the next business day thereafter if November 1<sup>st</sup> is not a business day**)**. Generally, the transaction price paid by the investor for the Shares it subscribed for will equal the NAV per Share as of the last calendar day of September (*i.e*., the most recently determined NAV per Share as of the applicable closing date). If accepted, the investor's subscription will be effective on November 1<sup>st</sup> (or the next business day thereafter if November 1<sup>st</sup> is not a business day).

Generally, investors will not be provided with direct notice of the transaction price when it becomes available. Therefore, a prospective investor who wishes to know the transaction price prior to their subscription being accepted must ask their financial intermediary or refer to the Company's website at *institutional.fidelity.com* prior to the time their subscription is accepted.

Subscribers are not committed to purchase Shares at the time their subscriptions are submitted and any subscription may be canceled at any time up to the third business day before the time it has been accepted. Subscribers may cancel or withdraw a purchase request by utilizing the Fidelity online portal or notifying their financial intermediary.

The Company can reject any subscription for any reason. If for any reason the Company rejects the subscription, or if the subscription request is canceled or withdrawn before it is accepted, the Company will return the subscription agreement and the related funds, without interest or deduction, within ten business days after such rejection, cancellation or withdrawal.

In contrast to securities traded on an exchange or over-the-counter, where the price often fluctuates as a result of, among other things, the supply and demand of securities in the trading market, the Company's NAV is calculated monthly using its valuation methodology, and the price at which the Company sells new Shares and repurchases outstanding Shares does not change depending on the level of demand by investors or the volume of requests for repurchases.

**Distribution Reinvestment Plan** 

The Company has adopted a DRIP whereby shareholders may elect to have the cash distributions otherwise payable to them by the Company automatically reinvested in additional Shares. If any shareholder initially elects

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not to be a participant in the DRIP, they may later become a participant by subsequently completing and executing an enrollment form or any appropriate authorization form as the Company may make available. Any cash distributions attributable to the Shares owned by participants who elect to participate in the DRIP will be immediately reinvested in additional Shares on behalf of the participants on the business day such distributions would have been paid to such participants.

The per Share purchase price for Shares purchased pursuant to the DRIP will be equal to the transaction price for Shares at the time the distribution is payable (which will generally be equal to the most recently determined NAV per Share as of the distribution payment date). For example, with respect to a quarterly distribution with a March 31<sup>st</sup> record date that is paid on April 25<sup>th</sup>, the price per Share pursuant to the DRIP will generally equal the NAV per Share calculated as of March 31<sup>st</sup> (*i.e*., the most recently determined NAV per Share as of the distribution payment date).

As of December 31, 2025, the Company has issued 1,752,311 Shares pursuant to the DRIP for gross proceeds of approximately $19.4 million.

See "Item 11. Description of Registrant's Securities to be Registered—Distribution Reinvestment Plan" for additional information regarding the DRIP.

**Share Repurchase Plan** 

The Company's shareholders may request that it repurchases all or a portion of their Shares on a quarterly basis, subject to the terms and conditions of the SRP. To the extent that the Company chooses to repurchase any Shares in a quarter, it will repurchase Shares as of the last calendar day of such quarter (a "Repurchase Date"). Accepted repurchase requests will be effected at a repurchase price equal to the transaction price applicable to such Repurchase Date (which will generally be equal to the most recently determined NAV per Share as of the Repurchase Date); *provided, however*, that any Shares that have been held for less than 12 months as of the Repurchase Date will be repurchased at a price equal to 98% of the applicable transaction price.

For example, if a shareholder wishes to request the repurchase of its Shares as of the June 30, 2026 Repurchase Date, its repurchase request must be received in good order by 4:00 p.m. (Eastern time) on June 29, 2026 (*i.e*., the second to last Business Day of that quarter). The repurchase price received by such investor when its Shares are repurchased (if at all) on the June 30, 2026 Repurchase Date will generally equal the NAV per Share as of May 31, 2026 (*i.e*., the most recently determined NAV per Share as of the Repurchase Date).

The Company is not obligated to repurchase any Shares pursuant to the SRP and may choose to repurchase only some, or none, of the Shares that have been requested to be repurchased in any quarter in the Trustee's sole discretion. In addition, the aggregate NAV of total repurchases of Shares will be limited to no more than 5% of the Company's aggregate NAV per calendar quarter (measured using the average NAV as of the end of the three immediately preceding months (*e.g*., for a June 30<sup>th</sup> Repurchase Date, the average of the March 31<sup>st</sup>, April 30<sup>th</sup> and May 31<sup>st</sup> NAVs)). In the event that the Trustee determines to repurchase some but not all of the Shares submitted for repurchase during any quarter, Shares submitted for repurchase during such quarter will be repurchased on a pro rata basis.

See "Item 11. Description of Registrant's Securities to be Registered—Share Repurchase Plan" for additional information regarding the SRP.

**Term** 

The Company will continue in existence indefinitely unless dissolved and terminated in accordance with the terms of the Declaration of Trust upon the occurrence of one of the following events (each a "Dissolution Event"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the written election of the Trustee at any time;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an Event of Withdrawal (as defined below); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The removal of the Trustee by the Company's shareholders pursuant to the terms of the Declaration of Trust,
subject to the election of the Company's shareholders to appoint a replacement trustee pursuant to the terms of the Declaration of Trust.

See "Item 5. Trustees and Executive Officers" for additional information regarding removal of the Trustee by the Company's shareholders.

The Declaration of Trust defines an "Event of Withdrawal" as (i) the commencement by the Trustee of any case or other action: (a) under any law relating to bankruptcy, insolvency, reorganization or relief of debtors; or (b) seeking appointment of a receiver, trustee, custodian or other similar official for it or its assets; (ii) the Trustee making a general assignment for the benefit of its creditors; (iii) any case or other action of a nature referred to in clause (i) against the Trustee resulting in the entry of an order for relief or any such adjudication or appointment; (iv) any case or other action seeking issuance of a warrant of attachment, execution or similar process against the Trustee's assets; (v) the Trustee's consent to, approval of, or acquiescence in, any of the acts or relief described in clause (i), (ii), (iii) or (iv); (vi) the Trustee generally being unable to pay its debts as they become due; (vii) the resignation of the Trustee as the trustee of the Company, other than withdrawal and substitution of an affiliate of the Trustee; or (viii) the occurrence of any other event of withdrawal of the Trustee under applicable law.

As part of the Company's indefinite term structure, shareholders may request the repurchase of their common Shares on a quarterly basis pursuant to the SRP (as discussed above).

**Reporting Obligations** 

The Company is filing this Registration Statement with the SEC under the Exchange Act to register under Section 12(g) of the Exchange Act and comply with applicable requirements thereunder. Upon the effectiveness of this Registration Statement, the Company will file with the SEC annual reports (containing audited financial statements), quarterly reports, and such other periodic reports as it determines to be appropriate or as may be required by the Exchange Act and the rule promulgated thereunder.

The Company's filings with the SEC will be available free of charge on the website maintained by the SEC at <u>www.sec.gov.</u>

**Item 1A. Risk Factors.** 

*The following are some of the risks and uncertainties that could cause the Company's actual results to differ materially from those presented in the Company's forward-looking statements. You should consider carefully the risks described below and the other information in this Form 10, including the Company's consolidated financial statements and the related notes included elsewhere in this Form 10. The risks and uncertainties described below are not the only ones the Company faces but do represent those risks and uncertainties that the Company believes are material to its business. Additional risks and uncertainties not presently known to the Company or that the Company currently deems immaterial may also harm the Company's business.* 

**Risks Related to the Company** 

<u>Limited Operating History; Loss of Capital</u>

The Company has a limited operating history upon which prospective investors can evaluate performance. No guarantee or representation is made that the Company will achieve its investment objective or that shareholders will not lose all or substantially all of their investment in Shares. A prospective investor should not

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subscribe for Shares unless it can readily bear the consequences of such loss. The past performance of the Investment Manager or its affiliates is no guarantee of the Company's future performance. There is no assurance that the Company will be profitable. The success of the Company will in a large part depend on its ability to identify and make profitable investments. Identifying and making profitable investments is difficult and involves a high degree of risk, competition and uncertainty, and the availability of such investments is subject to general market conditions. There is no assurance that the Company will be able to successfully implement its investment strategy or attain profitability. The Company's profitability is dependent upon many factors beyond its control.

<u>Availability of Suitable Investment Opportunities</u>

There can be no assurance that the Investment Manager will be able to locate and complete additional suitable investments that satisfy the Company's objectives and that the Investment Manager believes will provide performance commensurate with its targets. If the Investment Manager does not locate suitable and compelling investment opportunities in which to deploy all of the Company's capital, it may not invest fully the Company's available capital which may result in an adverse effect on performance results.

<u>Competition for Investment Opportunities</u>

Other entities, including commercial banks, commercial financing companies, business development companies, insurance companies and other private funds compete with the Company to make the types of investments that the Company plans to make. Certain of these competitors may be substantially larger, have considerably greater financial, technical and marketing resources than the Company may have or will have and offer a wider array of financial services than the Company does. There may be intense competition for financings or investments of the type the Company intends to make, and such competition may result in less favorable financing or investment terms than might otherwise exist. The competitive pressures the Company faces may have a material adverse effect on its business, financial condition, results of operations and cash flows.

<u>Dependence on the Trustee and Investment Manager</u>

The Company's shareholders have no control over the management of its business activities or affairs, all of which will be left to the discretion of the Trustee and the Investment Manager. The Company's ability to achieve its investment objective depends on the Investment Manager's ability to manage the Company, to identify, invest in and monitor investments that meet its investment criteria, and to provide competent, attentive and efficient services to the Company. The Investment Manager's team of investment professionals have substantial responsibilities in connection with the management of other investment funds, accounts and investment vehicles. Any failure to manage the Company's business and its future growth effectively could have a material adverse effect on its business, financial condition, results of operations and cash flows.

<u>Dependence on Key Personnel of the Investment Manager</u>

The Company depends on the diligence, skill, experience and network of business contacts of the Investment Manager's investment team. There can be no assurances that certain members of the team will continue to provide investment services to the Investment Manager. The loss of key personnel would limit the Company's ability to achieve its investment objective and operate as anticipated.

<u>Due Diligence Risk</u>

When conducting due diligence and making an assessment regarding a potential investment, the Investment Manager is required to rely on resources available to it, including internal sources of information as well as information provided by existing and potential obligors, any equity sponsor(s), lenders and other independent sources. The due diligence process may at times rely on limited or incomplete information.

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The Investment Manager will select investments for the Company in part on the basis of publicly available information filed with various government regulators or information made directly available to the Investment Manager. Although the Investment Manager will evaluate all such information and data and seek independent corroboration when it considers it appropriate and reasonably available, the Investment Manager will not be in a position to confirm the completeness, genuineness or accuracy of such information and data. The Investment Manager is dependent upon the integrity of the management of the entities filing such information and of such companies and third parties providing such information, as well as the financial reporting process in general. The value of an investment made by the Company may be affected by fraud, misrepresentation or omission on the part of a company or any related parties to such company, or by other parties to the investment (or any related collateral and security arrangements). Such fraud, misrepresentation or omission may adversely affect the value of the investment or the value of the collateral underlying the investment in question and may adversely affect the Company's ability to enforce its contractual rights relating to that investment or the relevant obligor's ability to repay the principal or interest on the investment.

In addition, the Investment Manager may rely upon independent consultants or experts in connection with its evaluation of proposed investments. There can be no assurance that these consultants or experts will accurately evaluate such investments. Investment analyses and decisions by the Investment Manager may be undertaken on an expedited basis in order to make it possible for the Company to take advantage of short-lived investment opportunities. In such cases, the available information at the time of an investment decision may be limited, inaccurate or incomplete. In addition, the financial information available to the Investment Manager may not be accurate or provided based upon accepted accounting methods. Accordingly, the Investment Manager cannot guarantee that the due diligence investigation it carries out with respect to any investment opportunity will reveal or highlight all relevant facts that may be necessary or helpful in evaluating such investment opportunity which may have a material adverse effect on the Company's performance.

<u>Diverse Shareholder Group</u>

The group of the Company's prospective investors may have conflicting investment, tax and other interests with respect to their investments in Shares. The conflicting interests of individual shareholders may relate to or arise from, among other things, the nature of the Company's investments, the structuring or the acquisition of investments and the timing of disposition of investments. Thus, conflicts of interest may arise in connection with decisions made by the Investment Manager or the Trustee that may be more beneficial for one shareholder than for another, especially with respect to each shareholder's individual tax situations. In selecting and structuring investments appropriate for the Company, the Investment Manager considers the Company's investment and tax objectives and the Company's shareholders as a whole, not the investment, tax or other objectives of any individual shareholder. Thus, certain shareholders may experience adverse investment or tax treatment compared to other shareholders.

<u>Non-Specified Investments and Discretion in Determining Use of Proceeds</u>

The Company has held certain of its current investments for a relatively limited period of time and the net proceeds of the ongoing private offering will be used to make investments that will not be meaningfully described to the Company's shareholders prior to such investment except as described in one or more supplements to its private placement memorandum. The Investment Manager has not yet identified all of the potential investments that the Company will acquire with the net proceeds of the Company's private offering. No assurance can be given as to when the Company will fund any additional investments. The Company's shareholders will not have an opportunity to evaluate the specific merits or risks of any prospective investment. As a result, shareholders will be dependent on the judgment of the Investment Manager in connection with the investment and management of the proceeds of the Company's private offering, including the selection of the investments. The Company's reliance on the Investment Manager is substantially increased in a "blind" investment offering such as the Company's private offering (*i.e.*, in which specific investments have not been targeted), because the Company will be reliant upon the Investment Manager to locate, evaluate and negotiate

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investments suitable for the Company. The number of investments that the Company makes and the diversification of its investments may be dependent on the amount of proceeds raised herein and will be reduced if less than the maximum amount of the offering is raised. There can be no guarantee that a sufficient number of investments will be available and that the Company will therefore be able to invest all of the net proceeds of the Company's private offering.

<u>Amount of Distributions</u>

The Company's ability to make distributions to its shareholders may be adversely affected by a number of factors, including the risks described herein. The Trustee will make determinations regarding distributions based upon, among other factors, the Company's financial performance, debt service obligations, debt covenants, REIT qualification and tax requirements and capital expenditure requirements. Among the factors that could impair the Company's ability to make distributions to shareholders are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the limited size of the Company's portfolio in the early stages of its development;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the economy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's inability to invest the proceeds from sales of Shares on a timely basis in income-producing
properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's inability to realize attractive risk-adjusted returns on the Company's investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• high levels of expenses or reduced revenues that reduce the Company's cash flow or non-cash earnings; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• defaults on the Company's investment portfolio or decreases in the value of its investments.

As a result, the Company may not be able to make distributions to shareholders at any time in the future, and the level of any distributions that the Company does make may not increase or be maintained over time, any of which could materially and adversely affect the value of an investment in Shares.

<u>Source of Distributions</u>

The Company may not generate sufficient cash flow from operations to fully fund distributions to shareholders. Therefore, the Company may fund distributions to shareholders from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds (including from sales of its Shares or Operating Partnership units). The extent to which the Company pays distributions from sources other than cash flow from operations will depend on various factors, including how quickly the Company invests the proceeds from its private offering and any future offering and the performance of its investments. Funding distributions from the sales of assets, borrowings, return of capital or proceeds of the Company's private offering will result in the Company having less funds available to make investments. As a result, the return shareholders realize on their investment may be reduced. Doing so may also negatively impact the Company's ability to generate cash flows. Likewise, funding distributions from the sale of additional securities will dilute the shareholders' interest in the Company on a percentage basis and may impact the value of an investment in the Company especially if it sells these securities at prices less than the price shareholders paid for their Shares. The Company may be required to continue to fund its regular distributions from a combination of some of these sources if the Company's investments fail to perform, if expenses are greater than the Company's revenues or due to numerous other factors. The Company has not established a limit on the amount of its distributions that may be paid from any of these sources.

To the extent the Company borrows funds to pay distributions, it would incur borrowing costs and these borrowings would require a future repayment. The use of these sources for distributions and the ultimate repayment of any liabilities incurred could adversely impact the Company's ability to pay distributions in future periods, decrease the Company's NAV, decrease the amount of cash it has available for operations and new investments and adversely impact the value of the Shares.

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<u>Delay in Return of Capital</u>

It is uncertain as to when profits, if any, will be realized by the Company. Losses on unsuccessful investments may be realized before gains on successful investments are realized. The return of capital and the realization of gains, if any, will generally occur only upon the partial or complete disposition of an investment by the Company. Furthermore, the Company's expenses of operating (including the Management Fees (as defined below)) may exceed its income, thereby requiring that the difference be paid from the Company's capital.

<u>Restricted Securities;</u> <u>Limitations on SRP</u>

The Shares have not been registered under the Securities Act, the securities laws of any U.S. state, or the securities laws of any other jurisdiction, and therefore, cannot be sold unless they are subsequently registered under the Securities Act and other applicable securities laws or an exemption from registration is available. It is not expected that the Shares will be registered under the Securities Act or other securities laws. Further, transfers of the Shares are subject to the restrictions set forth in the Declaration of Trust. There is no current trading market for Shares, and the Company does not expect that such a market will develop. Therefore, it may be difficult or impossible to sell or transfer the Shares and repurchase of Shares by the Company pursuant to the SRP may be the only way for shareholders to dispose of Shares.

The aggregate NAV of total repurchases of Shares under the SRP will be limited to no more than 5% of the Company's aggregate NAV per calendar quarter (measured using the average aggregate NAV attributable to shareholders as of the end of the immediately preceding three months). In addition, should repurchase requests, in the Trustee's judgment, place an undue burden on the Company's liquidity, adversely affect its operations or impose an adverse impact on the company as a whole, or should the Trustee otherwise determine that investing the Company's liquid assets in real properties or other investments rather than repurchasing Shares is in the best interests of the company as a whole, the Trustee may determine to repurchase fewer Shares in any particular quarter than have been requested to be repurchased (including relative to the 5% quarterly limit under the SRP), or none at all. The Company may receive repurchase requests that exceed the limits under the SRP.

Further, the Trustee may without shareholder consent make exceptions to, modify or suspend the SRP if, in its reasonable judgment, it deems such action to be in the best interest of the Company and its shareholders. The Trustee cannot terminate the SRP absent a liquidity event which results in the Company's shareholders receiving cash or securities listed on a national securities exchange or where otherwise required by law.

If the Company does not repurchase all of the Shares submitted for repurchase during any quarter under the SRP, Shares submitted for repurchase during such quarter will be repurchased on a pro rata basis. All unsatisfied repurchase requests must be resubmitted after the start of the next quarter, or upon the recommencement of the SRP, as applicable.

There is no minimum holding period for Shares and shareholders can request that the Company repurchase their Shares at any time. However, subject to limited exceptions, Shares that have not been outstanding for at least one year will be repurchased at 98% of the applicable transaction price on the applicable Repurchase Date.

The substantial majority of the Company's assets will consist of properties that cannot generally be readily liquidated without impacting its ability to realize full value upon their disposition. Therefore, the Company may not always have a sufficient amount of cash to immediately satisfy repurchase requests. As a result of the foregoing factors, your ability to have your Shares repurchased by the Company may be limited and at times you may not be able to liquidate your investment. For additional information regarding the SRP, see "Item 11. Description of Registrant's Securities to be Registered—Share Repurchase Plan."

<u>Economic Events May Cause Shareholders to Request Share Repurchases</u>

Events affecting economic conditions in the United States and/or elsewhere or globally, such as the general negative performance of the real estate sector (including as a result of inflation or higher interest rates), market

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volatility, trade conflict, civil unrest, national and international security events, war (including ongoing conflicts in the Middle East and Ukraine), extreme weather events (including climate change, hurricanes, wild fires, earthquakes or floods) or the spread of infectious illnesses, pandemics or other public health emergencies, could cause the Company's shareholders to seek the repurchase of their Shares pursuant to the SRP at a time when such events are adversely affecting the performance of the Company's assets. Even if the Company decides to satisfy all resulting repurchase requests, its cash flow and liquidity could be materially adversely affected, and the Company may incur additional leverage. In addition, if the Company determines to sell assets to satisfy repurchase requests (which the Company is not obligated to do), the Company may not be able to realize the return on such assets that the Company may have been able to achieve had the Company sold at a more favorable time, and the Company's results of operations and financial condition, including, without limitation, breadth of the Company's portfolio by property type and location, could be materially adversely affected.

In addition, the Company's shareholders have and may continue to seek to repurchase some or all of the Shares that they hold. A significant volume of repurchase requests in a given period may cause requests to exceed the 5% quarterly limits under the SRP, resulting in less than the full amount of repurchase requests being satisfied in such period.

<u>Mandatory Redemption</u>

In certain limited circumstances, the Trustee may, in its discretion, redeem a shareholder's Shares with immediate effect upon the delivery of written notice.

<u>Distributions In-Kind</u>

Though the Company expects to distribute primarily cash to shareholders, it may make distributions in-kind. Distributions in-kind, if made by the Company, involve certain risks. In the event that distributions are made of property other than cash, the amount of any such distribution shall be accounted for and valued as provided in the Declaration of Trust, although there is no guarantee that such investments will ultimately be realized at such valuations. Shareholders may incur costs and expenses associated with disposing of such investments, which would reduce the cash shareholders would ultimately receive. Investments distributed in-kind may not be readily marketable or saleable and may have to be held by shareholders for an indefinite period of time.

<u>Management Fees Payable to Investment Manager</u>

The Company pays the Investment Manager a Management Fee (as defined below) based on its NAV pursuant to the Investment Management Agreement. The Management Fee is payable to the Investment Manager regardless of the performance of the Company's portfolio or the services provided by the Investment Manager. The Company will be required to pay the Investment Manager the Management Fee in a particular period despite the Company experiencing a net loss or a decline in the value of its portfolio during such period. The Investment Manager's entitlement to a Management Fee which is not based or conditioned upon the achievement of performance metrics or goals might reduce the Investment Manager's incentive to devote its time and effort to seeking investments that provide attractive risk-adjusted returns for the Company's portfolio. The Management Fee was not determined based upon an arms-length negotiation. For additional information regarding the Management Fee, see "Item 7. Certain Relationships and Related Transactions, and Trustee Independence—Investment Manager."

<u>Incentive Fees Payable to Investment Manager</u>

The Company pays the Investment Manager an Incentive Fee (as defined below) pursuant to the Investment Management Agreement. The Investment Manager's right to receive the Incentive Fee may create an incentive for the Investment Manager to make riskier or more speculative investments on the Company's behalf, cause the Company to incur more leverage, or dispose of assets prematurely for a gain in an effort to increase the Incentive

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Fee to which the Investment Manager is entitled. Due to the fact that the Incentive Fee to which the Investment Manager is entitled is based in part on increases in the Company's NAV and the NAV of the Operating Partnership, the Investment Manager may also be motivated to accelerate acquisitions in order to increase such NAV. The Incentive Fee was not determined based upon an arms-length negotiation. For additional information regarding the Incentive Fee, see "Item 7. Certain Relationships and Related Transactions, and Trustee Independence—Investment Manager."

<u>Investment Manager's Role in Calculation of NAV</u>

The Company's NAV is calculated on a monthly basis by the Administrator (as defined below) and such calculation is reviewed and confirmed by the Investment Manager. The Investment Manager therefore faces an inherent conflict of interest due to the fact that the Investment Manager is entitled to receive Management Fees and Incentive Fees, both of which are based on the Company's NAV and the NAV of the Operating Partnership. The valuation of the Company's investments and the Company's NAV will affect the amount and timing of the Management Fees and Incentive Fees (if any) paid to the Investment Manager. As a result, there may be circumstances where the Investment Manager is incentivized to determine valuations that are higher than the actual fair value of the Company's investments or manage the NAV calculation process in a manner that results in a higher NAV.

<u>Allocation of Time of Investment Manager and its Affiliates</u>

The Investment Manager, the Trustee and their respective affiliates, principals and employees, including the members of the Real Estate Investment Committee, are not required to devote all or any specific portion of their working time to the Company's affairs. Rather, such persons will devote so much of their time and effort to the Company's affairs as they determine is reasonably necessary in order to accomplish the Company's purposes. Further, none of such persons will be required to refrain from any other business or investment activity unrelated to the Company or disgorge any profits from any such activity. By way of example, Ms. Hall serves as a Non-Executive Director at Grosvenor Property Americas, the U.S. affiliate of an investment manager based in the United Kingdom. Without limiting the generality of the foregoing, the Investment Manager, the Trustee and their respective affiliates, principals and employees serve as investment adviser, manager, general partner or consultant (or similar roles or capacities) to other Clients. Such other Clients may have investment objectives and investment strategies that are substantially similar to the Company's and may compete with the Company for investment opportunities. Potential conflicts of interest will arise in allocating such persons' time and services among the Company and such other Clients or other business activities unrelated to the Company. Such persons may give advice to or take action with respect to the other Clients that differs from the advice given with respect to the Company and may also conduct investment activities for their own accounts and make investments of their own personal assets in the Company and in other Clients.

<u>Fund Expenses; Potential Conflicts in Calculation of Certain Costs and Expenses</u>

The Company's expenses may be a higher percentage of net assets than would be found in other investment entities. The Declaration of Trust provides that the Company will be responsible for all costs and expenses in connection with its operation, other than the costs and expenses that will be the responsibility of the Trustee or the Investment Manager. A potential conflict of interest exists in the determination whether certain costs or expenses that are incurred in connection with the Company's operations meet the definition of expenses for which the Company is responsible, or whether such expenses should be borne by the Trustee or the Investment Manager. The Company will be reliant on the determinations of the Trustee and the Investment Manager in this regard, and also in regard to the allocation of investment expenses and any common operating expenses as between the Company and the other funds or vehicles managed by affiliates of the Trustee and the Investment Manager.

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<u>Rate of Return</u>

There can be no assurance that the Company's investments will yield comparable results to those described herein. Such investment rates of return are not a prediction of the Company's potential or actual future performance. Where based on historical performance, such rates of return were achieved in the past under different economic and industry environments with investment professionals who may differ from the investment professionals currently employed by the Investment Manager. Accordingly, there can be no assurance that these or comparable returns (or even positive returns) will be achieved by investments individually or in the aggregate or that there will be any return of capital.

<u>Deployment of Capital</u>

In light of the nature of the Company's private offering and its investment strategy and the need to be able to deploy capital quickly to capitalize on potential investment opportunities, the Company may have difficulty identifying and making suitable investments on attractive terms. There could be a delay between the time that the Company receives net proceeds from the sale of Shares and the time that the Company invests the net offering proceeds. The Company may also from time to time hold cash pending deployment into investments or have less than its targeted leverage, which cash or shortfall in target leverage may at times be significant, particularly at times when the Company is receiving high amounts of offering proceeds or times when there are few attractive investment opportunities. Such cash may be held in an account that may be invested in money market accounts or other similarly temporary investments. In the event that the Company is unable to find suitable investments, such cash may be maintained for longer periods which would be dilutive to overall investment returns. This could cause a substantial delay in the time it takes for an investment to realize its full potential return and could adversely affect the Company's ability to pay regular distributions of cash flow from operations. It is not anticipated that the temporary investment of cash into money market accounts or other similar temporary investments pending deployment into investments will generate significant interest, and low interest payments on the temporarily invested cash may adversely affect overall returns. In the event that the Company fails to timely invest the net proceeds of the Company's private offering or does not deploy sufficient capital to meet its targeted leverage, the Company's results of operations and financial condition may be adversely affected.

<u>Inability to Successfully Integrate New Investments and Manage the Company's Growth</u>

The Company may be unable to successfully and efficiently integrate newly acquired investments into its existing portfolio or otherwise effectively manage its assets or growth. In addition, increases in the size of the Company's investment portfolio or changes in the Company's investment focus may place significant demands on the Investment Manager's administrative, operational, asset management, financial and other resources which could lead to decreased efficiency. Any failure to effectively manage such growth or increase in scale could adversely affect the Company's results of operations and financial condition.

<u>Purchases and Repurchases of Shares are Made at the Most Recently Determined NAV per Share as of the Date of Purchase or Repurchase</u> 

Generally, the Company's offering price per Share and the price at which it repurchases Shares will equal the NAV per Share as of the most recently determined NAV per Share. The NAV per Share, if calculated as of the date on which a shareholder makes a subscription request or repurchase request, may be significantly different than the offering price such shareholder pays or the repurchase price such shareholder receives. Certain of the Company's investments or liabilities may be subject to high levels of volatility from time to time and could change in value significantly between the end of the prior month as of which the NAV is determined and the date that a shareholder acquires or the Company repurchases its Shares; however, the most recently determined NAV per Share will generally continue to be used as the offering price per Share and repurchase price per Share.

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In exceptional circumstances, the Company may, in its sole discretion, but is not obligated to, offer and repurchase Shares at a different price that the Company believes reflects the NAV per Share more appropriately than the most recently determined NAV per Share, including by updating a previously disclosed transaction price, in cases where the Company believes there has been a material change (positive or negative) to its NAV per Share since the most recently determined NAV per Share and the Company believes an updated price is appropriate. In such exceptional cases, the offering price and the repurchase price will not equal the NAV per Share as of any time.

<u>NAV Per Share Amounts May Change Materially</u>

The Company anticipates that annual appraisals of its properties will be conducted on a rolling basis, such that properties are appraised at different times but each property will be appraised at least once per year. When these appraisals are reflected in the Company's NAV calculations, there may be a material change in the NAV per Share amounts from those previously reported. The changes in a property's value may be a result of property-specific changes or a result of more general changes to real estate values resulting from local, national or global economic changes. In addition, actual operating results for a given month may differ from what the Company originally budgeted for that month, which may cause a material increase or decrease in the NAV per Share amounts. The Company will not retroactively adjust the NAV per Share reported for the previous month. Therefore, because a new annual appraisal may differ materially from the prior appraisal or the actual results from operations may be better or worse than what the Company previously budgeted for a particular month, the adjustment to reflect the new appraisal or actual operating results may cause the NAV per Share to increase or decrease, and such increase or decrease will occur on the day the adjustment is made.

<u>It May be Difficult to Accurately Reflect Material Events that may Impact the Company's Monthly NAV</u>

The Investment Manager's determination of the Company's monthly NAV per Share is based in part on independent appraisals of each of the Company's properties provided at least annually by independent third-party appraisal firms in individual appraisal reports reviewed by the Company's independent valuation service provider. As a result, the NAV per Share in any given month may not fully reflect any or all changes in value that may have occurred since the most recent appraisal or valuation. The Investment Manager will review appraisal reports and monitor the Company's properties, and is responsible for notifying the Company's independent valuation service provider of the occurrence of any property-specific or market-driven event it believes may cause a material valuation change in the real estate valuation, but it may be difficult to reflect fully and accurately rapidly changing market conditions or material events that may impact the value of the Company's assets or liabilities between valuations, or to quickly obtain complete information regarding any such events. For example, an unexpected termination or renewal of a material lease, a material increase or decrease in vacancies or an unanticipated structural or environmental event at a property may cause the value of a property to change materially, yet obtaining sufficient relevant information after the occurrence has come to light or analyzing fully the financial impact of such an event may be difficult to do and may require some time. As a result, the NAV per Share may not reflect a material event until such time as sufficient information is available and analyzed, and the financial impact is fully evaluated, such that the NAV may be appropriately adjusted in accordance with the Company's valuation guidelines. Depending on the circumstance, the resulting potential disparity in the NAV may be in favor or to the detriment of shareholders who buy new Shares, shareholders who have their Shares repurchased, or existing shareholders.

<u>NAV Calculations are Not Governed by Governmental or Independent Rules or Standards</u>

The method used by the Administrator for calculating the Company's NAV (as reviewed and confirmed by the Investment Manager), including the components used in calculating the Company's NAV, is not prescribed by rules of the SEC or any other regulatory agency. Further, there are no accounting rules or standards that prescribe which components should be used in calculating NAV, and the Company's NAV is not audited by its independent registered public accounting firm. The Company will calculate NAV for purposes of establishing the

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price at which it will sell and repurchase Shares and the calculation of the Management Fee and Incentive Fee, and prospective investors should not view the NAV as a measure of the Company's historical or future financial condition or performance. The components and methodology used in calculating the Company's NAV may differ from those used by other companies now or in the future. In addition, calculations of the Company's NAV, to the extent that they incorporate valuations of the Company's assets and liabilities, are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). These valuations may differ from liquidation values that could be realized in the event that the Company was forced to sell its assets. Additionally, errors may occur in calculating NAV, which could impact the price at which the Company sells and repurchases Shares and the amount of the Management Fee and the Incentive Fee. If such errors were to occur, the Investment Manager, depending on the circumstances surrounding each error and the extent of any impact the error has on the price at which Shares were sold or repurchased or on the amount of the Management Fee or the Incentive Fee, may determine in its sole discretion to take certain corrective actions in response to such errors, including, subject to the Investment Manager's policies and procedures, making adjustments to prior NAV calculations. You should carefully review the disclosure of the Company's valuation policies and how NAV will be calculated in "Net Asset Value Calculations."

<u>Issuance of Preferred Shares of Beneficial Interest</u>

Pursuant to the Declaration of Trust, the Trustee is permitted, subject to certain restrictions set forth in the Declaration of Trust, to authorize the issuance of shares of beneficial interest of any class or series without shareholder approval. Further, the Trustee may without shareholder approval amend the Declaration of Trust to classify or reclassify any unissued shares of beneficial interest into other classes or series of shares of beneficial interest and establish the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications, and terms or conditions of redemption of the shares and increase or decrease the aggregate number of shares of beneficial interest or the number of shares of beneficial interest of any class or series that the Company has authority to issue. As a result, the Trustee could authorize the Company to issue shares of beneficial interest ranking senior to the Shares sold hereby with respect to distribution rights upon the Company's liquidation, dissolution or winding up or with terms and conditions that could have the effect of delaying, deferring or preventing the Company's change in control, including an extraordinary transaction such as a merger, or sale of all or substantially all of the Company's assets, that might provide a premium price for its shareholders.

<u>Claims Against the Trustee and Officers</u>

The Declaration of Trust limits the personal liability of the Trustee and the Company's officers for monetary damages to the maximum extent permitted by Maryland law. Moreover, the Declaration of Trust requires the Company's to indemnify and advance expenses to the Trustee and the Company's officers for losses they may incur by reason of their service in those capacities to the maximum extent permitted by Maryland law, subject to certain limitations with respect to such indemnification and advancement as set forth in the Declaration of Trust. As a result, the Company and the Company's shareholders may have more limited rights against the Trustee or the Company's officers than might otherwise exist under common law, which could reduce any recovery from these persons if they act in a manner that causes the Company to incur losses. In addition, the Company is obligated to fund the defense costs incurred by these persons in some cases.

<u>Amendments to Declaration of Trust</u>

Pursuant to the Declaration of Trust, the Company's shareholders have limited rights to approve amendments to the Declaration of Trust. Generally, the Declaration of Trust may be amended or waived by the Trustee without the vote or approval of the Company's shareholders; *provided, however*, that the Declaration of Trust may not be amended in any manner which would adversely affect the contract rights of any shareholders without the prior consent of the shareholders entitled to cast a majority of the votes entitled to be cast on the matter. The foregoing shareholder consent requirement does not apply to amendments to the Declaration of Trust made by the Trustee in order to classify or reclassify new series or classes of shares of beneficial interest, which amendments do not require shareholder consent.

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Further, pursuant to the Declaration of Trust, if any provision in the Declaration of Trust or under applicable law requires the consent or approval of the Company's shareholders, a shareholder shall be conclusively deemed to have given such consent or approval if: (i) the Trustee sends such shareholder a notice setting forth the matter on which its consent or approval is requested; (ii) such notice requests that such shareholder grant its consent or approval; (iii) such notice states that, if such shareholder fails within 20 days (or such later date as the Trustee may determine) of its receipt of such notice to give a notice of non-consent or non-approval to the Trustee, such shareholder shall be deemed to have granted such consent or approval; and (iv) such shareholder fails to give the Trustee such notice within such 20 day period (or such later date as the Trustee may determine).

<u>Dilution of Shareholders</u>

Shareholders will not have preemptive rights to any shares of beneficial interest that the Company issues in the future. The Declaration of Trust authorizes the Company to issue an unlimited number of shares of beneficial interest. In addition, the Trustee may without shareholder approval amend the Declaration of Trust to classify or reclassify any unissued shares of beneficial interest into other classes or series of shares of beneficial interest and establish the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications, and terms or conditions of redemption of the shares and increase or decrease the aggregate number of shares of beneficial interest or the number of shares of beneficial interest of any class or series that the Company has authority to issue. The Trustee may elect, without shareholder approval, to, among other things: (i) sell additional shares of the Company's beneficial interest in future public or private offerings; (ii) sell Operating Partnership units in private offerings; and (iii) issue shares of the Company's beneficial interest or Operating Partnership units to sellers of properties that it acquires. To the extent that the Company issues additional shares of beneficial interest, the percentage ownership interest of the Company's existing shareholders will be diluted. Because the Company will hold all or substantially all of its assets through the Operating Partnership, to the extent that the Operating Partnership issues additional Operating Partnership units, the percentage ownership interest in the Company's assets of its shareholders assets will be diluted. Because Operating Partnership units may, in the discretion of the Trustee, be exchanged for the Company's shares of beneficial interest, any merger, exchange or conversion between the Operating Partnership and another entity ultimately could result in the issuance of a substantial number of shares of the Company's beneficial interest, thereby diluting the percentage ownership interest of other shareholders. For the foregoing and other reasons, investors in Shares may experience substantial dilution in their percentage ownership of Shares or their interests in the Company's underlying assets.

<u>Not Required to Comply with Certain Reporting Requirements</u>

The Company is, and expects to continue to be, exempt from compliance with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002. In addition, so long as the Company is externally managed by the Investment Manager and does not directly compensate its executive officers, or reimburse the Investment Manager or its affiliates for salaries, bonuses, benefits and severance payments for persons who also serve as one of its executive officers or as an executive officer of the Investment Manager, the Company does not have any executive compensation to disclose or report. As a result, the Company is not required to comply with certain disclosure and reporting requirements that apply to other public companies.

<u>UPREIT Structure</u>

The Trustee and the Company's officers have certain duties to the Company and its shareholders under Maryland law and the Declaration of Trust in connection with their management of the Company. At the same time, the Company, as general partner, has fiduciary duties under Delaware law to the Operating Partnership and to the limited partners of the Operating Partnership in connection with the management of the Operating

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Partnership. The Company's duties as general partner of the Operating Partnership and its partners may come into conflict with the duties of the Trustee and the Company's officers to the Company and its shareholders. Under Delaware law, a general partner of a Delaware limited partnership owes its limited partners the duties of good faith and fair dealing. Other duties, including fiduciary duties, may be modified or eliminated in the limited partnership agreement of the Operating Partnership (the "Operating Partnership Agreement"). The Operating Partnership Agreement provides that, for so long as the Company owns a controlling interest in the Operating Partnership, any conflict that cannot be resolved in a manner not adverse to either the Company's shareholders or the limited partners may be resolved in favor of the Company's shareholders.

Additionally, the Operating Partnership Agreement expressly limits the Company's liability by providing that the Company and its officers, trustees, agents and employees will not be liable or accountable to the Operating Partnership for losses sustained, liabilities incurred or benefits not derived if the Company or its officers, trustees, agents or employees acted in good faith. In addition, the Operating Partnership is required to indemnify the Company and its officers, trustees, employees, agents and designees to the extent permitted by applicable law from and against any and all claims arising from operations of the Operating Partnership, unless it is established that: (1) the act or omission was material to the matter giving rise to the proceeding and either was committed in bad faith or was the result of active and deliberate dishonesty; (2) the indemnified party received an improper personal benefit in money, property or services; or (3) in the case of a criminal proceeding, the indemnified person had reasonable cause to believe that the act or omission was unlawful.

The provisions of Delaware law that allow the fiduciary duties of a general partner to be modified by a partnership agreement have not been tested in a court of law, and the Company has not obtained an opinion of counsel covering the provisions set forth in the Operating Partnership Agreement that purport to waive or restrict its fiduciary duties.

<u>Compliance with Applicable Law</u>

Although the Investment Manager will seek to comply with all U.S. federal, state and local lending regulations and to obtain all required licenses, there is no assurance that the Company or the Trustee will be able to obtain all required licenses or always be compliant or that there will not be allegations of non-compliance even if the Company or the Trustee were or are fully compliant. Any violation of applicable law or failure to comply with regulatory requirements could result in, among other things, revocation of required licenses or registrations, loss of approval status, termination of contracts without compensation, damages, fines, penalties, litigation costs, investigation costs and even restrictions on the Company's ability to conduct business.

<u>Litigation Risk</u>

The Trustee will act in good faith and use reasonable judgment in managing the Company. It is impossible for the Trustee to foresee what allegations may be brought by a regulatory agency or a third party, including but not limited to allegations related to the disclosures and risks set forth herein, or how those allegations will be asserted, such as in civil lawsuits, regulatory penalties, enforcement actions, or other proceedings. The Trustee will seek to avoid litigation, if, in the Trustee's judgment, the circumstances warrant an alternative resolution. If an allegation is brought or litigation is commenced against the Company, the Company will incur legal fees and costs to respond to the allegations and to defend any resulting litigation, this could have an adverse effect on the Company's financial performance.

<u>Possibility of Fraud or Other Misconduct of Employees and Service Providers</u>

Misconduct by employees of the Investment Manager, service providers to the Company or its respective affiliates could cause significant losses to us. Misconduct may include entering into transactions without authorization, the failure to comply with operational and risk procedures, the improper use or disclosure of confidential information, which could result in litigation or serious financial harm, including limiting the

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Company's business prospects or future marketing activities, and non-compliance with applicable laws or regulations and the concealing of any of the foregoing. Such activities may result in reputational damage, litigation, business disruption, or financial losses to the Company.

<u>Investor Due Diligence Information</u>

Due in part to the fact that potential investors in Shares may ask different questions and request different information, the Investment Manager may provide certain information to one or more prospective investors that it does not provide to all of the prospective or current investors in Shares.

<u>Systems and Operational Risks</u>

The Company depends on the Investment Manager to develop and implement appropriate systems for the Company's activities. The Company also relies heavily and on a regular basis on financial, accounting and other data processing systems to evaluate investments, to monitor the Company's portfolio and capital, and to generate risk management and other reports that are critical to oversight of the Company's activities. In addition, the Company relies on information systems to store sensitive information about the Company, the Trustee, the Investment Manager, their affiliates, and the Company's shareholders. Certain of the Company's, the Trustee's and the Investment Manager's activities will be dependent upon systems operated by third parties, including custodians, market counterparties and other service providers, and the Company, the Trustee and the Investment Manager may not be in a position to adequately verify the risks or reliability of such third-party systems. These programs or systems may be subject to certain defects, failures or interruptions, including, but not limited to, those caused by computer "worms," viruses and power failures. Failures in the systems employed by the Trustee, the Investment Manager, administrators, custodians, counterparties, exchanges and similar clearance and settlement facilities and other parties could result in mistakes made in the confirmation or settlement of transactions, or in transactions not being properly booked, evaluated or accounted for. Disruptions in the Company's operations or breach of the Company's information systems may cause the Company to suffer, among other things, financial loss, the disruption of its business, liability to third parties, regulatory penalties or reputational damage. Any of the foregoing failures or disruptions could have a material adverse effect on the Company and an investment in Shares.

<u>Public Disclosure Obligations</u>

The Company may be required to disclose confidential information relating to the Company's investments and its financial results to third parties that may request such information if and to the extent required by U.S. federal, state or local law or regulation applicable to the Company or any of its investors. Such disclosure obligations may adversely affect certain shareholders, particularly shareholders who are not otherwise subject to public disclosure of information relating to the private holdings of funds in which they invest.

<u>Cybersecurity Risk</u>

Cybersecurity risks and data protection could result in the loss of data, interruptions in the Company's business, damage to the Company's reputation, and subject the Company to regulatory actions, increased costs and financial losses, each of which could have a material adverse effect on its business and results of operations. ****

Due to the universal use of technologies such as the Internet and cloud computing to conduct business, the Company is susceptible to operational, information security and related risks. In general, cyber incidents can result from deliberate attacks or unintentional events. Cyber-attacks include, but are not limited to, gaining unauthorized access to digital systems (*e.g.*, through "hacking" or malicious software coding) for purposes of misappropriating assets or sensitive information, corrupting data, or causing operational disruption. Cyber-attacks may also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service attacks on websites (*i.e.*, efforts to make network services unavailable to intended users). Cyber

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incidents affecting the Company's, the Trustee's or the Investment Manager's service providers have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, interference with the Company's ability to value its investments, impediments to trading, the inability of shareholders to transact business, violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, or additional compliance costs. Similar adverse consequences could result from cyber incidents affecting counterparties with which the Company engages in transactions, governmental and other regulatory authorities, exchange and other financial market operators, banks, brokers, dealers, insurance companies and other financial institutions and other parties. In addition, substantial costs may be incurred in order to prevent any cyber incidents in the future. While the Company's service providers have established business continuity plans in the event of, and risk management systems to prevent, such cyber incidents, there are inherent limitations in such plans and systems including the possibility that certain risks have not been identified. Furthermore, the Company cannot control the cyber security plans and systems put in place by its service providers or any other third parties whose operations may affect the Company or its shareholders. The Company and its shareholders could be negatively impacted as a result.

<u>Cash and Cash Equivalents</u>

Pending investment in the Company's target assets, the Company may hold cash, cash equivalents, and other short-term investments. These types of investments may include the following, to the extent consistent with the Company's intended qualification as a REIT (i) cash, money market instruments and other cash equivalents, (ii) U.S. government or government agency securities and (iii) credit-rated corporate debt or asset-backed securities of U.S. or foreign entities, or credit-rated debt securities of foreign governments or multi-national organizations. Generally, such securities offer less potential for gains than other types of securities and are subject to inflation risk.

<u>Failing to Qualify for an Exemption Under U.S. Federal and State Securities Laws</u>

The Company's Shares are being offered and sold in its ongoing private offering in reliance upon an exemption from the registration requirements of the Securities Act provided by Regulation D promulgated under the Securities Act and applicable state securities law exemptions. While the Trustee believes reliance on such exemption is justified, there can be no assurance that factors such as the manner in which offers and sales are made, concurrent offerings by other companies, the scope of disclosure provided, failures to make notices, filings or changes in applicable laws, regulations or interpretations will not cause the Company to fail to qualify for such exemptions under U.S. federal or one or more states' securities laws. Failure to so qualify could result in, among other possible penalties, the rescission of sales of Shares, which could have a material and adverse effect on the Company's performance and business. Further, even non-meritorious claims that offers and sales of Shares were not made in compliance with applicable securities laws could materially and adversely affect the Company's ability to conduct its business.

<u>Not Registered as an Investment Company</u>

The Trustee believes that the nature of the Company's investments will not subject the Company to, and the Trustee intends for the Company to rely on exemptions from, the registration requirements of the Investment Company Act. There is no assurance that the Trustee's belief in this regard is or will continue to be correct or that such exemptions will remain available. If the Company was registered as an investment company, the Investment Company Act would require, among other things, that the Company has a board of trustees (some of whom were independent), compel certain custodial arrangements, and regulate the relationship and transactions between the Company and the Trustee and the Company's affiliates. Compliance with some of those provisions could possibly reduce certain risks of loss by the Company or its shareholders. However, the performance of the Company's investment portfolio could be materially adversely affected if the Company or the Trustee were to become subject to the Investment Company Act because of the burdens of the additional compliance requirements thereunder. Neither the Company nor its counsel can assure prospective investors that, under

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certain conditions, changing circumstances or changes in the law, the Company may not become subject to such regulation.

<u>Pandemics and Natural Disasters</u>

Pandemics and epidemics, and natural or environmental disasters, such as earthquakes, droughts, fires, floods, hurricanes, tsunamis and climate-related phenomena generally, can be highly disruptive to economies and markets, adversely impacting individual companies, sectors, industries, markets, currencies, interest and inflation rates, credit ratings, investor sentiment, and other factors affecting the value of the Company's investments. Economies and financial markets throughout the world have become increasingly interconnected, which increases the likelihood that events or conditions in one region or country will adversely affect markets or issuers in other regions or countries, including the United States. Additionally, market disruptions may result in increased market volatility; regulatory trading halts; closure of domestic or foreign exchanges, markets, or governments; or market participants operating pursuant to business continuity plans for indeterminate periods of time. Further, market disruptions can (i) prevent the Company from executing advantageous investment decisions in a timely manner, (ii) negatively impact the Company's ability to achieve its investment objectives, and (iii) may exacerbate the risks discussed elsewhere herein, including political, social, and economic risks.

In response to the COVID-19 pandemic, the Investment Manager implemented a business continuity plan to permit personnel to work remotely and effectively. Although the majority of the Investment Manager's personnel are no longer working remotely, there can be no guarantee that widespread remote working will not become required in the future, or that the measures implemented to permit such remote working conditions will work effectively at all times. Further, although the Investment Manager will continue to perform due diligence and monitor the Company's investments, other outbreaks of contagious disease and any associated limitations on travel or other governmental regulations may impact the ability of the Investment Manager to travel and conduct on-site visits in the future.

<u>Market Disruptions</u>

The Company may incur major losses in the event of disrupted markets and other extraordinary events in which historical pricing relationships become materially distorted. The risk of loss from pricing distortions is compounded by the fact that in disrupted markets many positions become illiquid, making it difficult or impossible to close out positions against which the markets are moving. The financing available to the Company from its banks, dealers and other counterparties will typically be reduced in disrupted markets. Such a reduction may result in substantial losses to the Company. Market disruptions may from time to time cause dramatic losses for the Company, and such events can result in otherwise historically low-risk strategies performing with unprecedented volatility and risk.

<u>Financial Regulatory Changes in the United States</u>

The financial services industry continues to be the subject of heightened regulatory scrutiny in the United States. There has been active debate over the appropriate extent of regulation and oversight of private investment funds and their managers. The Company may be adversely affected as a result of new or revised regulations imposed by the SEC or other U.S. governmental regulatory authorities or self-regulatory organizations that supervise the financial markets. The Company also may be adversely affected by changes in the interpretation or enforcement of existing laws and regulations by these governmental authorities and self-regulatory organizations. Further, new regulations or interpretations of existing laws may result in enhanced disclosure obligations, including with respect to climate change or environmental, social and governance factors, which could negatively affect the Company and materially increase its regulatory burden. Increased regulations generally increase the Company's costs, and the Company could continue to experience higher costs if new laws require the Company to spend more time or buy new technology to comply effectively.

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Any changes in the regulatory framework applicable to the Company's business, including the changes described above, may impose additional compliance and other costs, increase regulatory investigations of investment activities, require the attention of the Company's senior management, affect the manner in which the Company conducts its business and adversely affect its profitability. The full extent of the impact on the Company of any new laws, regulations or initiatives that may be proposed is impossible to determine.

<u>Use of Social Media and Publicity Platforms</u>

The use of social networks, message boards, internet channels and other platforms has become widespread in the United States and globally. As a result, individuals now have the ability to rapidly and broadly disseminate information or misinformation without independent or authoritative verification. Any such information or misinformation regarding the Company, the Investment Manager or their affiliates could have adverse effects on the Company or its investments.

<u>Risks Related to Artificial Intelligence</u>

Technological developments in artificial intelligence, including machine learning technology and generative artificial intelligence (collectively, "AI Technologies") and their current and potential future applications, as well as the legal and regulatory frameworks within which they operate, are rapidly evolving. The full extent of current or future risks related thereto is not possible to predict and the Company may not be able to anticipate, prevent, mitigate or remediate all of the potential risks, challenges or impacts of such changes. Any of these technological innovations could result in harm to the Company, the Investment Manager or their affiliates, significantly disrupt the market in which they operate and subject them to increased competition, which could materially and adversely affect their business, financial condition and results of operations, and have an adverse impact on the Company. Advancements in computing and AI Technologies, including efficiency improvements, without related increases in the adoption and development of such technologies, could also negatively impact demand for, and the valuation of, digital infrastructure assets.

The use of AI Technologies presents a number of risks that cannot be fully mitigated. For example, AI Technologies are highly reliant on the collection and analysis of large amounts of data and complex algorithms, but it is not possible or practicable to incorporate all relevant data into models that AI Technologies utilize to operate. Moreover, with the use of AI Technologies, there often exists a lack of transparency of how inputs are converted to outputs, and this process and its accuracy cannot be fully validated. The accuracy of such inputs and the resulting impact on the results of AI Technologies cannot be verified and could result in a diminished quality of work product that includes or is derived from inaccurate or erroneous information. Further, inherent bias in the construction of AI Technologies can lead to a wide array of risks including but not limited to accuracy, efficacy and reputational harm. Therefore, it is expected that data in such models will contain a degree of inaccuracy and error, and potentially materially so, and that such data as well as algorithms in use could otherwise be inadequate or flawed, which would be likely to degrade the effectiveness of AI Technologies and could adversely impact the Company or the Investment Manager to the extent they rely on the work product of such AI Technologies. The volume and reliance on data and algorithms also make AI Technologies, and in turn the Company and the Investment Manager, more susceptible to cybersecurity threats, including the compromise of underlying models, training data, or other intellectual property. The Company could be exposed to risks to the extent third-party service providers, or any counterparties use AI Technologies in their business activities. At the same time, to the extent utilized by the Company or the Investment Manager, any interruption of access to or use of AI Technologies could impede the ability of the Company or the Investment Manager to generate information and analysis that could be beneficial to the Company's business, financial condition and results of operations. AI Technologies will likely also be competitive with certain business activities or increase the obsolescence of certain organizations' products or services, particularly as AI Technologies improve.

AI Technologies can also be misused or misappropriated by third parties and/or employees of the Investment Manager or its affiliates. Moreover, the Company and the Investment Manager will not necessarily be

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in a position to control the manner in which third-party AI Technologies are developed or maintained or the manner in which third parties use AI Technologies to provide services, even where they have sought contractual protections. The use of AI Technologies, including potential inadvertent disclosure of confidential information or personal identifiable information, could also lead to legal and regulatory investigations and enforcement actions.

Regulations related to AI Technologies could also impose certain obligations and costs related to monitoring and compliance. AI Technologies and their current and potential future applications including in the private investment and financial sectors, as well as the legal and regulatory frameworks within which they operate, continue to rapidly evolve, and it is not possible to predict the full extent of current or future risks related thereto.

**Risks Relating to Investments In Real Estate** 

<u>Nature of Investments</u>

The Investment Manager will have broad discretion in making the Company's investments. There can be no assurance that the Investment Manager will correctly evaluate the nature or magnitude of the various factors that could affect the value of and return on the Company's investments. Prices of investments may be volatile, and a variety of factors that are inherently difficult to predict, such as domestic or international economic and political developments, may significantly affect the results of the Company's activities and the value of its investments. These factors and others may significantly affect the results of the Company's activities and the value of its investments.

Investing in the real estate sector involves significant inherent risks that, if realized, could result in little or no return on the Company's investments or a loss of capital invested. An investment in Shares is suitable only for those investors willing to risk losing some or all of their principal investment and who have the experience and ability to evaluate the risks and merits of an investment in Shares. Potential investors should consult with their investment advisors, attorneys, and accountants prior to investing in Shares. The following is a description of certain factors which, along with the information discussed herein and such other matters as may be material to an investment in Shares, should be considered by prospective investors in Shares.

<u>General Real Estate Risks</u>

The Company is subject to risks generally attributable to the ownership of real property, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in global, national, regional or local economic, demographic or capital market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• future adverse national real estate trends, including increasing vacancy rates, declining rental rates and
general deterioration of market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• adverse economic conditions as a result of an epidemic, pandemic or other health-related issue in one or more
geographic markets where the Company owns property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in supply of or demand for similar properties in a given market or metropolitan area, which could result
in rising vacancy rates or decreasing market rental rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased competition for properties targeted by the Company's investment strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• bankruptcies, financial difficulties or lease defaults by the Company's tenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inflation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increases in interest rates and lack of availability of financing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in government rules, regulations and fiscal policies, including increases in property taxes, changes in
zoning laws, limitations on rental rates, and increasing costs to comply with environmental laws.

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All of these factors are beyond the Company's control. Any negative changes in these factors could affect the Company's performance and its ability to meet its obligations and make distributions to its shareholders.

<u>Portfolio Concentration</u>

The Company's portfolio may be heavily concentrated at any time in only a limited number of industries, geographies or investments, and, as a consequence, the Company's aggregate return may be substantially affected by the unfavorable performance of even a single investment. Concentration of the Company's investments in a particular type of asset or geography makes the Company more susceptible to fluctuations in value resulting from adverse economic or business conditions affecting that particular type of asset or geography. For investments that the Investment Manager intends to finance (directly or by selling assets), there is a risk that such financing may not be completed, which could result in the Company holding a larger percentage of its assets in a single investment and asset type than desired. Investors have no assurance as to the degree of diversification in the Company's investments, either by geographic region or asset type.

<u>Changes to Investment and Operational Policies</u>

The Company may change its investment and operational policies, including its policies with respect to investments, operations, indebtedness, capitalization and distributions, at any time without the consent of its shareholders, which could result in it making investments that are different from, and possibly riskier or more highly leveraged than, the types of investments described herein. A change in the Company's investment strategy may, among other things, increase its exposure to real estate market fluctuations, default risk and interest rate risk, all of which could materially affect the Company's results of operations and financial condition.

<u>Difficulty Selling Properties</u>

Because real estate investments and certain real estate-related investments are relatively illiquid, it could be difficult for the Company to promptly sell one or more of its properties on favorable terms. Additionally, the Company may agree to a lock-out or other provisions when the Company acquires a property that materially restrict the Company from selling such property or the Company's interest in such property for a period of time. This may limit the Company's ability to change its portfolio quickly in response to adverse changes in the performance of any such property or economic or market trends. In addition, U.S. federal tax laws that impose a 100% excise tax on gains from sales of dealer property by a REIT (generally, property held for sale, rather than investment) could limit the Company's ability to sell properties and may affect the Company's ability to sell properties without adversely affecting returns to its shareholders. These restrictions could adversely affect the Company's results of operations and financial condition.

<u>Risks Associated with Property Acquisitions</u>

The Company acquires properties and portfolios of properties, including large portfolios that could result in changes to the Company's capital structure. The Company's acquisition activities and their success are subject to the following risks:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company may be unable to complete an acquisition after making a non-refundable deposit or guarantee and incurring certain other acquisition-related costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company may be unable to obtain financing for acquisitions on commercially reasonable terms or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• acquired properties may fail to perform as expected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• acquired properties may be located in new geographic markets in which the Company may face risks associated with
a lack of market knowledge or understanding of the local economy, lack of business relationships in the area and unfamiliarity with local governmental and permitting procedures; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company may be unable to quickly and efficiently integrate new acquisitions, particularly acquisitions of
portfolios of properties, into the Company's existing operations.

In addition, while the Company will invest primarily in stabilized, income-generating real estate, the Company may also acquire assets that require some amount of capital investment in order to be renovated or repositioned. These investments are generally subject to higher risk of loss than investments in stabilized real estate and there is no guarantee that any renovation or repositioning will be successful, or that the actual costs will not be greater than the Company's estimates.

<u>Litigation Risks Related to the Disposition of Properties</u>

The acquisition, ownership, and disposition of real properties carry certain specific litigation risks. Litigation may be commenced with respect to a property acquired by the Company in relation to activities that took place prior to the Company's acquisition of such property. In addition, at the time of disposition of an individual property, a potential buyer may claim that it should have been afforded the opportunity to purchase the asset or alternatively that such potential buyer should be awarded due diligence expenses incurred or statutory damages for misrepresentation relating to disclosure made, if such buyer is passed over in favor of another as part of the Company's efforts to maximize sale proceeds. Similarly, successful buyers may later sue the Company under various damage theories, including those sounding in tort, for losses associated with latent defects or other problems not uncovered in due diligence.

<u>Competition for Investment Opportunities</u>

The Company faces competition from various entities for investment opportunities in properties, including REITs, real estate operating companies, pension funds, insurance companies, investment funds and companies, partnerships and developers. In addition to third-party competitors, other programs sponsored by the Investment Manager and its affiliates, particularly those with investment strategies that overlap with the Company's, may compete with the Company for investment opportunities. Some of these entities may have greater access to capital to acquire properties than the Company has. Competition from these entities may reduce the number of suitable investment opportunities offered to the Company or increase the bargaining power of property owners seeking to sell. Additionally, disruptions and dislocations in the credit markets could have a material impact on the cost and availability of debt to finance real estate acquisitions, which is a key component of the Company's acquisition strategy. The lack of available debt on reasonable terms or at all could result in a further reduction of suitable investment opportunities and create a competitive advantage for other entities that have greater financial resources than the Company has. In addition, over the past several years, a number of real estate funds and publicly traded and non-traded REITs have been formed and others have been consolidated (and many such existing funds have grown in size) for the purpose of investing in real estate or real estate-related assets. Additional real estate funds, vehicles and REITs with similar investment objectives are expected to be formed in the future by other unrelated parties and further consolidations may occur (resulting in larger funds and vehicles). Consequently, it is expected that competition for appropriate investment opportunities would reduce the number of investment opportunities available to the Company and adversely affect the terms, including price, upon which investments can be made. This competition may cause the Company to acquire properties and other investments at higher prices or by using less-than-ideal capital structures, and in such case the Company's returns will be lower and the value of the Company's assets may not appreciate or may decrease significantly below the amount the Company paid for such assets. If such events occur, investors may experience a lower return on their investment.

<u>Risks Associated with Joint Venture Investments</u>

The Company may co-invest with affiliates of the Investment Manager or third parties in partnerships or other entities that own real estate properties. The Company may acquire non-controlling interests in joint ventures. Even if the Company has some control in a joint venture, the Company would not be able to exercise

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sole decision-making authority. Investments in joint ventures may, under certain circumstances, involve risks not present were another party not involved, including the possibility that joint venture partners might become bankrupt or fail to fund their required capital contributions. Joint venture partners may have economic or other business interests or goals that are inconsistent with the Company's business interests or goals and may be in a position to take actions contrary to the Company's policies or objectives. Such investments may also have the potential risk of impasses on decisions, such as a sale, because neither the Company nor the joint venture partner would have full control over the joint venture. Disputes between the Company and joint venture partners may result in litigation or arbitration that would increase the Company's expenses and prevent its officers and directors from focusing their time and effort on the Company's business. Consequently, actions by or disputes with joint venture partners might result in subjecting properties owned by the joint venture to additional risk. In addition, the Company may in certain circumstances be liable for the actions of the Company's joint venture partners.

The Company will not participate in joint ventures in which the Company does not have or share control to the extent that the Company believes such participation would potentially threaten the Company's status as a non-investment company exempt from the Investment Company Act. This may prevent the Company from receiving an allocation with respect to certain investment opportunities that are otherwise suitable for the Company.

If the Company has a right of first refusal to buy out a joint venture partner, it may be unable to finance such a buy-out if it becomes exercisable or the Company is required to purchase such interest at a time when it would not otherwise be in the Company's best interest to do so. If the Company's interest is subject to a buy/sell right, it may not have sufficient cash, available borrowing capacity or other capital resources to allow the Company to elect to purchase an interest of a joint venture partner subject to the buy/sell right, in which case it may be forced to sell the Company's interest as the result of the exercise of such right when the Company would otherwise prefer to keep its interest. In some joint ventures the Company may be obligated to buy all or a portion of the Company's joint venture partner's interest in connection with a triggering event, and the Company may be unable to finance such a buy-out when such triggering event occurs, which may result in interest or other penalties accruing on the purchase price. If the Company buys its joint venture partner's interest, it will have increased exposure in the underlying investment. The price the Company uses to buy its joint venture partner's interest or sell its interest will typically be determined by negotiations between the Company and its joint venture partner and there is no assurance that such price will be representative of the value of the underlying property or equal to its then-current valuation of the Company's interest in the joint venture that is used to calculate its NAV. Finally, the Company may not be able to sell its interest in a joint venture if the Company desires to exit the venture for any reason or if the Company's interest is likewise subject to a right of first refusal of the Company's joint venture partner, its ability to sell such interest may be adversely impacted by such right. Joint ownership arrangements with affiliates of the Investment Manager may also entail further conflicts of interest. Joint venture partners may receive ongoing fees in connection with providing service to the joint venture or its properties, including promote fees, beyond their equity investment, which would reduce the amount of the Company's economic interest.

Some additional risks and conflicts related to the Company's joint venture investments (including joint venture investments with affiliates) include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the joint venture partner may have economic or other interests that are inconsistent with the Company's
interests, including interests relating to the financing, management, operation, leasing or sale of the assets purchased by such joint venture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company's joint venture partners may receive ongoing fees from its joint ventures, including promote
payments and potential buyouts of their equity investments, all of which may reduce amounts otherwise payable to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax, Investment Company Act and other regulatory requirements applicable to the joint venture partner may cause
it to want to take actions contrary to the Company's interests;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the joint venture partner may have joint control of the joint venture even in cases where the Company's
economic stake in the joint venture is significantly less than the Company's;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• under the joint venture arrangement, it is possible that neither the Company nor the joint venture partner will
be in a position to unilaterally control the joint venture, and deadlocks may occur which could adversely impact the operations and profitability of the joint venture, including as a result of the inability of the joint venture to act quickly in
connection with a potential acquisition or disposition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• under the joint venture arrangement, the Company and the joint venture partner may have a buy/sell right and, as
a result of an impasse that triggers the exercise of such right, the Company may be forced to sell its investment in the joint venture, or buy the joint venture partner's share of the joint venture at a time when it would not otherwise be in
the Company's best interest to do so;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company's participation in investments in which a joint venture partner participates will be less than
what the Company's participation would have been had such joint venture partner not participated, and because there may be no limit on the amount of capital that such joint venture partner can raise, the degree of the Company's
participation in such investments may decrease over time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• under the joint venture arrangement, the Company and the joint venture partner could each have preemptive rights
in respect of future issuances by the joint venture, which could limit a joint venture's ability to attract new third-party capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• under the joint venture arrangement, the Company and the joint venture partner could be subject to lock-ups, which could prevent the Company from disposing of its interests in the joint venture at a time the Company determines to be advantageous; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the joint venture partner could have a right of first offer, tag-along rights, drag-along rights, consent rights or other similar rights in respect of any transfers of the ownership interests in the joint venture to third parties, which could have the effect of making such transfers more complicated or limiting or
delaying the Company from selling its interest in the applicable investment.

Furthermore, the Company may have conflicting fiduciary obligations if it acquire properties with its affiliates or other related entities. As a result, in any such transaction the Company may not have the benefit of arm's-length negotiations of the type normally conducted between unrelated parties.

<u>Acquiring or Attempting to Acquire Multiple Properties in a Single Transaction</u>

The Company may acquire multiple properties in a single transaction. Portfolio acquisitions typically are more complex and expensive than single-property acquisitions, and the risk that a multiple-property acquisition does not close may be greater than in a single-property acquisition. Portfolio acquisitions may also result in the Company owning investments in geographically dispersed markets, placing additional demands on the Investment Manager in managing the properties in the portfolio. In addition, a seller may require that a group of properties be purchased as a package or also include certain additional investments or transactions even though, were it not part of the overall transaction, the Company may not want to purchase one or more properties included in such portfolio or participate in additional investments or transactions. In these situations, if the Company is unable to identify another person or entity to acquire the unwanted properties or investments, or if the seller imposes a lock-out period or other restriction on a subsequent sale, the Company may be required to operate such properties or attempt to dispose of such properties or investments (if not subject to a lock-out period). The Company may share the acquisition of large portfolios of properties with its affiliates, which can result in conflicts of interest, including as to the allocation of properties within the portfolio and the prices attributable to such properties. It may also be difficult for the Investment Manager to fully analyze each property in a large portfolio, increasing the risk that properties do not perform as anticipated. The Company also may be required to accumulate a large amount of cash to fund such acquisitions. The Company would expect the returns that it earns on such cash to be less than the returns on investments in real property. Therefore, acquiring multiple properties in a single transaction may reduce the overall yield on its portfolio.

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<u>Options to Acquire Properties</u>

The Company may obtain options to acquire certain properties. The amount paid for an option, if any, is normally surrendered if the property is not purchased and may or may not be credited against the purchase price if the property is purchased. Any unreturned option payments will reduce the amount of cash available for further investments or distributions to its shareholders.

<u>Reliance on Property Managers and Leasing Agents</u>

The Investment Manager will hire property managers to manage the Company's properties and leasing agents to lease vacancies in the Company's properties. These property managers may be the Company's affiliates or partners in joint ventures that it enters into. The Company may also use portfolio entities owned by the Company to provide these property management, leasing, and similar services. The property managers have significant decision-making authority with respect to the management of the Company's properties. The Company will be particularly dependent on property managers of any hotels it invests in. In cases where the Company uses third party property managers, its ability to direct and control how its properties are managed on a day-to-day basis may be limited. Thus, the success of the Company's business may depend in large part on the ability of its property managers to manage the day-to-day operations and the ability of its leasing agents to lease vacancies in its properties. In cases where the Company uses one of its portfolio entities to provide property management services, the Company will directly incur the expenses of property management and the other costs and obligations associated with operating the portfolio entity, including the compensation of the Company's portfolio entity employees. Any adversity experienced by, or problems in the Company's relationship with, its property managers or leasing agents could adversely impact the operation and profitability of its properties.

<u>Dependence on Tenants for Revenue</u>

Rental income from real property, directly or indirectly, constitutes a significant portion of the Company's income. Delays in collecting accounts receivable from tenants could adversely affect the Company's cash flows and financial condition. In addition, the inability of a single major tenant or a number of smaller tenants to meet their rental obligations would adversely affect the Company's income. Therefore, the Company's financial success is indirectly dependent on the success of the businesses operated by the tenants in its properties or in the properties securing debts the Company may own. The weakening of the financial condition of or the bankruptcy or insolvency of a significant tenant or a number of smaller tenants and vacancies caused by defaults of tenants or the expiration of leases may adversely affect the Company's operations, performance and its ability to pay distributions.

Generally, under U.S. bankruptcy law, a debtor tenant has 120 days to exercise the option of assuming or rejecting the obligations under any unexpired lease for nonresidential real property, which period may be extended once by the bankruptcy court for an additional 90 days. If the tenant assumes its lease, the tenant must cure all defaults under the lease and may be required to provide adequate assurance of its future performance under the lease. If the tenant rejects the lease, the Company will have a claim against the tenant's bankruptcy estate. Although rent owing for the period between filing for bankruptcy and rejection of the lease may be afforded administrative expense priority and paid in full, pre-bankruptcy arrears and amounts owing under the remaining term of the lease will be afforded general unsecured claim status (absent collateral securing the claim). Moreover, amounts owing under the remaining term of the lease will be capped. Other than equity and subordinated claims, general unsecured claims are the last claims paid in a bankruptcy and therefore funds may not be available to pay such claims in full.

Some of the Company's properties may be leased to a single or significant tenant and, accordingly, may be suited to the particular or unique needs of such tenant. The Company may have difficulty replacing such a tenant if the floor plan of the vacant space limits the types of businesses that can use the space without major renovation. In addition, the resale value of the property could be diminished because the market value of a particular property will depend principally upon the value of the leases of such property.

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Similarly, it is expected that certain of the Company's other properties, including certain industrial warehouses and student housing properties, will be leased out to single tenants or tenants that are otherwise reliant on a single enterprise to remain in business and the Company's hotel properties will generally be operated by a single operator. Adverse impacts to such tenants, businesses or operators, including as a result of changes in market or economic conditions, natural disasters, outbreaks of an infectious disease, pandemic or any other serious public health concern, political events or other factors that may impact the operation of these properties, may have negative effects on the Company's business and financial results. As a result, such tenants or operators may be required to suspend operations at the Company's properties for what could be an extended period of time. Further, if such tenants default under their leases or such operators are unable to operate the Company's properties, the Company may not be able to promptly enter into a new lease or operating arrangement for such properties, rental rates or other terms under any new leases or operating arrangement may be less favorable than the terms of the current lease or operating arrangement or the Company may be required to make capital improvements to such properties for a new tenant or operator, any of which could adversely impact the Company's operating results.

<u>Inability to Renew Leases as Leases Expire</u>

The Company may not be able to lease properties that are vacant or become vacant because a tenant decides not to renew its lease or by the continued default of a tenant under its lease. In addition, certain of the properties the Company acquires may have some level of vacancy at the time of acquisition. Certain other properties may be specifically suited to the particular needs of a tenant and may become vacant after the Company acquires them. Even if a tenant renews its lease or the Company enters into a lease with a new tenant, the terms of the new lease may be less favorable than the terms of the old lease. In addition, the resale value of the property could be diminished because the market value may depend principally upon the value of the property's leases. If the Company is unable to promptly renew or enter into new leases, or if the rental rates are lower than expected, the Company's results of operations and financial condition will be adversely affected. For example, following the termination or expiration of a tenant's lease there may be a period of time before the Company will begin receiving rental payments under a replacement lease. During that period, the Company will continue to bear fixed expenses such as interest, real estate taxes, maintenance, security, repairs, and other operating expenses. In addition, declining economic conditions may impair the Company's ability to attract replacement tenants and achieve rental rates equal to or greater than the rents paid under previous leases. Increased competition for tenants may require the Company to make capital improvements to properties which would not have otherwise been planned. Any unbudgeted capital improvements that the Company undertakes may divert cash that would otherwise be available for distributions. Ultimately, to the extent that the Company is unable to renew leases or re-let space as leases expire, decreased cash flow from tenants will result, which could adversely impact the Company's operating results.

The Company may be required to expend funds to correct defects or to make improvements before a tenant can be found for a property at an attractive lease rate or an investment in a property can be sold. No assurance can be given that the Company will have funds available to correct those defects or to make those improvements. In acquiring a property, the Company may agree to lock-out provisions that materially restrict it from selling that property for a period of time or impose other restrictions, such as a limitation on the amount of debt that can be placed on that property. These factors and others that could impede the Company's ability to respond to adverse changes in the performance of its properties could significantly affect the Company's financial condition and operating results.

<u>Potential Development and Construction Delays</u>

The Company will not invest in unimproved land or ground-up real estate construction or development projects. However, the Company may acquire real estate assets that allow for future ground-up development as a secondary (and not primary) investment strategy. For example, the Company might acquire an income-generating commercial real estate property that would also support development of multifamily housing on the property site.

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Any investments the Company makes in such secondary ground-up development projects will be subject to the uncertainties associated with the development and construction of real property, including those related to re-zoning land for development, environmental concerns of governmental entities or community groups and builders' ability to build in conformity with plans, specifications, budgeted costs and timetables. If a builder fails to perform, the Company may resort to legal action to rescind the purchase or the construction contract or to compel performance. A builder's performance may also be affected or delayed by conditions beyond the builder's control. Delays in completing construction could also give tenants the right to terminate preconstruction leases. The Company may incur additional risks when it makes periodic progress payments or other advances to builders before they complete construction. These and other factors can result in increased costs of a project or loss of the Company's investment. In addition, the Company will be subject to normal lease-up risks relating to any newly constructed projects. The Company must also rely on rental income and expense projections and estimates of the fair market value of property upon completion of construction when agreeing upon a purchase price at the time it acquires a to-be-constructed property. If the Company's projections are inaccurate, the Company may pay too much for a property, and the return on its investment could suffer.

<u>Properties Face Significant Competition</u>

The Company faces significant competition from owners, operators, and developers of properties. Substantially all of the Company's properties will face competition from similar properties in the same market. This competition may affect the Company's ability to attract and retain tenants and may reduce the rents the Company is able to charge. These competing properties may have vacancy rates higher than the Company's properties, which may result in their owners being willing to lease available space at lower prices than the space in the Company's properties. If one of the Company's properties were to lose an anchor tenant, this could impact the leases of other tenants, who may be able to modify or terminate their leases as a result.

<u>Properties may be Leased at Below-Market Rates under Long-Term Leases</u>

The Company may seek to negotiate longer-term leases to reduce the cash flow volatility associated with lease rollovers, provided that contractual rent increases are generally included. In addition, where appropriate, the Company will seek leases that provide for operating expenses, or expense increases, to be paid by the tenants. These leases may allow tenants to renew the lease with pre-defined rate increases. If the Company does not accurately judge the potential for increases in market rental rates, or if the Company's negotiated increases provide for a discount to then-current market rental rates (in exchange for lower volatility), the Company may set the rental rates of these long-term leases at levels such that even after contractual rental increases, the resulting rental rates are less than then-current market rental rates. Further, the Company may be unable to terminate those leases or adjust the rent to then-prevailing market rates. As a result, the Company's income and distributions to its shareholders could be lower than if the Company did not enter into long-term leases.

<u>Material Losses or Damage may Not be Covered by Insurance</u>

The Company may experience material losses related to its properties arising from natural disasters, such as extreme weather events, climate change, earthquakes or floods, and acts of God, vandalism or other crime, faulty construction or accidents, fire, outbreaks of an infectious disease, pandemic or any other serious public health concern, war, acts of terrorism or other catastrophes. The Company plans to carry insurance covering its properties under policies the Investment Manager deems appropriate. The Investment Manager will select policy specifications and insured limits that it believes to be appropriate and adequate given the relative risk of loss, the cost of the coverage and industry practice. Insurance policies on its properties may include some coverage for losses that are generally catastrophic in nature, such as losses due to terrorism, earthquakes and floods, but the Company cannot assure investors that it will be adequate to cover all losses and some of its policies will be insured subject to limitations involving large deductibles or co-payments and policy limits that may not be sufficient to cover losses. In general, losses related to terrorism are becoming harder and more expensive to insure against. In some cases, the insurers exclude terrorism, in others the coverage against terrorist acts is

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limited, or available only for a significant price. A similar dynamic has been unfolding with respect to certain weather and fire events, with insurers excluding certain investments that have high risk of weather, earthquake or fire events. As the effects of climate change increase, the Company expects the frequency and impact of weather and climate related events and conditions could increase as well. Climate change may also increase the cost of, or decrease the availability of, property insurance on terms the Company finds acceptable. As a result, not all investments may be insured against terrorism, weather, or fire. If the Company or one or more of its tenants experience a loss that is uninsured or that exceeds policy limits, the Company could lose the capital invested in the damaged properties as well as the anticipated future cash flows from those properties. In addition, if the damaged properties are subject to recourse indebtedness, the Company would continue to be liable for the indebtedness, even if these properties were irreparably damaged. Certain of these events, such as war or an outbreak of an infectious disease, could have a broader negative impact on the global or local economy, thereby affecting the Company or the Investment Manager.

<u>Potential Liability for Environmental Violations</u>

The Company could become subject to liability in the form of fines or damages for noncompliance with environmental laws and regulations. These laws and regulations generally govern wastewater discharges, air emissions, the operation and removal of underground and above-ground storage tanks, the use, storage, treatment, transportation and disposal of solid hazardous materials, the remediation of contaminated property associated with the disposal of solid and hazardous materials and other health and safety-related concerns. Some of these laws and regulations may impose joint and several liability on tenants, owners or managers for the costs of investigation or remediation of contaminated properties, regardless of fault or the legality of the original disposal. Under various federal, state and local environmental laws, ordinances, and regulations, a current or former owner or manager of real property may be liable for the cost to remove or remediate hazardous or toxic substances, wastes, or petroleum products on, under, from, or in such property. These costs could be substantial and liability under these laws may attach whether or not the owner or manager knew of, or was responsible for, the presence of such contamination. Even if more than one person may have been responsible for the contamination, each liable party may be held entirely responsible for all of the clean-up costs incurred.

In addition, third parties may sue the owner or manager of a property for damages based on personal injury, natural resources, or property damage or for other costs, including investigation and clean-up costs, resulting from the environmental contamination. The presence of contamination on one of the Company's properties, or the failure to properly remediate a contaminated property, could give rise to a lien in favor of the government for costs it may incur to address the contamination, or otherwise adversely affect its ability to sell or lease the property or borrow using the property as collateral. In addition, if contamination is discovered on the Company's properties, environmental laws may impose restrictions on the manner in which the property may be used or businesses may be operated, and these restrictions may require substantial expenditures or prevent the Company from entering into leases with prospective tenants. There can be no assurance that future laws, ordinances or regulations will not impose any material environmental liability, or that the environmental condition of the Company's properties will not be affected by the operations of the tenants, by the existing condition of the land, by operations in the vicinity of the properties. There can be no assurance that these laws, or changes in these laws, will not have a material adverse effect on the Company's business, results of operations or financial condition. The Company could also suffer losses if reserves or insurance proceeds prove inadequate to cover any such matters. The cost to perform any remediation, and the cost to defend against any related claims, could exceed the value of the relevant investment, and in such cases the Company could be forced to satisfy the claims from other assets and investments. The Company may have an indemnity from a third party purporting to cover these liabilities, but there can be no assurance as to the financial viability of any indemnifying party at the time a claim arises. In addition, some environmental laws create a lien on a contaminated asset in favor of governments or government agencies for costs they may incur in connection with the contamination.

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<u>Costs Associated with Complying with the Americans with Disabilities Act of 1990 (the "ADA")</u>

Properties that the Company acquires will generally be subject to the ADA. Under the ADA, all places of public accommodation are required to comply with federal requirements related to access and use by disabled persons. The ADA has separate compliance requirements for "public accommodations" and "commercial facilities" that generally require that buildings and services be made accessible and available to people with disabilities. The ADA's requirements could require removal of access barriers and could result in the imposition of injunctive relief, monetary penalties or, in some cases, an award of damages. The Company may not acquire properties that comply with the ADA or the Company may not be able to allocate the burden on the seller or other third party, such as a tenant, to ensure compliance with the ADA in all cases.

<u>Property Taxes</u>

The Company's properties will be subject to real and personal property taxes that may increase as property tax rates change and as the properties are assessed or reassessed by taxing authorities. Some of the Company's leases may provide that the property taxes, or increases therein, are charged to the lessees as an expense related to the properties that they occupy. As the owner of the properties, however, the Company is ultimately responsible for payment of the taxes to the government. If property taxes increase, the Company's tenants may be unable (or not obligated) to make the required tax payments, ultimately requiring the Company to pay the taxes. In addition, the Company is generally responsible for property taxes related to any vacant space. If the Company purchases residential properties, the leases for such properties typically will not allow it to pass through real estate taxes and other taxes to residents of such properties. Consequently, any tax increases may adversely affect the Company's results of operations at such properties.

<u>Ground Leases</u>

The Company may invest from time to time in real properties that are subject to ground leases. As a lessee under a ground lease, the Company may be exposed to the possibility of losing the property upon termination, or an earlier breach by the Company, of the ground lease, which may adversely impact its investment performance. Furthermore, ground leases generally provide for certain provisions that limit the ability to sell certain properties subject to the lease. In order to assign or transfer rights and obligations under certain ground leases, the Company will generally need to obtain consent of the landlord of such property, which, in turn, could adversely impact the price realized from any such sale.

<u>Certain Properties May Require an Expedited Transaction</u>

Investment analyses and decisions by the Investment Manager may be required to be undertaken on an expedited basis to take advantage of investment opportunities. In such cases, the information available to the Investment Manager at the time of making an investment decision may be limited, and the Investment Manager may not have access to detailed information regarding the investment property or portfolio of properties, such as physical characteristics, environmental matters, zoning regulations or other local conditions affecting such investment. Therefore, no assurance can be given that the Investment Manager will have knowledge of all circumstances that may adversely affect an investment, and the Company may make investments which it would not have made if more extensive due diligence had been undertaken. Because large portfolios of properties still generally require diligence to analyze individual properties, these risks are exacerbated in expedited transactions of large portfolios. In addition, the Investment Manager may use consultants, legal advisors, appraisers, accountants, investment banks and other third parties in connection with its evaluation or diligence of certain investments. No assurance can be given as to the accuracy or completeness of the information provided by such third parties, and the Company may incur liability as a result of such third parties' actions.

<u>Risks in Effecting Operating Improvements</u>

In some cases, the success of an investment will depend, in part, on the Company's ability to restructure and effect improvements in the operations of a property. The activity of identifying and implementing restructuring

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programs and operating improvements at property entails a high degree of uncertainty. There can be no assurance that the Company will be able to successfully identify and implement such restructuring programs and improvements.

<u>Risks Relating to Complex Structures</u>

The Company's investments will often be governed by a complex series of legal documents and contracts and will often involve complex ownership and control structures. As a result, the risk of dispute over interpretation or enforceability of such documentation may be higher than for other investments. In addition, it is not uncommon for the Company's investments to be exposed to a variety of other legal risks. These can include, but are not limited to, environmental issues, land expropriation and other property-related claims, industrial action and legal action from special interest groups.

<u>Industrial Properties</u>

Certain of the Company's industrial properties may include special use or build-to-suit properties. These types of properties are relatively illiquid compared to other types of real estate and financial assets and this illiquidity will limit the Company's ability to quickly change its portfolio in response to changes in economic or other conditions. With such properties, if the current lease is terminated or not renewed, the Company may be required to renovate the property or to make rent concessions in order to lease the property to another tenant, finance the property or sell the property. In addition, in the event the Company is forced to sell the property, the Company may have difficulty selling it to a party other than the tenant or borrower due to the special purpose for which the property may have been designed. These and other limitations may affect the Company's ability to sell or relet its industrial properties and adversely affect its results of operations at such properties.

<u>Industrial Tenants may be Adversely Affected by a Decline in Manufacturing Activity</u>

Fluctuations in manufacturing activity in the United States may adversely affect the Company's industrial tenants and therefore the demand for and profitability of its industrial properties. Trade agreements with foreign countries have given employers the option to utilize less expensive foreign manufacturing workers. Outsourcing manufacturing activities could reduce the demand for U.S. workers, thereby reducing the profitability of its industrial tenants and the demand for and profitability of its industrial properties.

<u>Trends in the Office Real Estate Industry</u>

Some businesses are rapidly evolving to make employee telecommuting, flexible work schedules, open workplaces, and teleconferencing increasingly common. These practices enable businesses to reduce their space requirements. A continuation of the movement towards these practices could over time erode the overall demand for office space and, in turn, place downward pressure on occupancy, rental rates and property valuations, each of which could have an adverse effect on the Company's financial position, results of operations, cash flows and ability to make expected distributions to the Company's shareholders. The Company may also be negatively impacted by competition from other short-term office or shared space leasing companies.

<u>Retail Tenants Face Competition from Numerous Retail Channels</u>

Retailers leasing the Company's properties will face continued competition from shopping via the internet, discount or value retailers, factory outlet centers, wholesale clubs, mail order catalogues and operators and television shopping networks. Such competition could adversely affect the Company's tenants and, consequently, its revenues and funds available for distribution.

<u>Leases with Retail Properties' Tenants May Restrict Re-leasing</u>

Most leases with retail tenants contain provisions giving the particular tenant the exclusive right to sell particular types of merchandise or provide specific types of services within the particular retail center. These provisions may limit the number and types of prospective tenants interested in leasing space in a particular retail property.

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<u>Retail Properties Depend on Anchor Tenants</u> 

Retail properties, like other properties, are subject to the risk that tenants may be unable to make their lease payments or may decline to extend a lease upon its expiration. A lease termination by a tenant that occupies a large area of a retail center (commonly referred to as an anchor tenant) could impact leases of other tenants. Other tenants may be entitled to modify the terms of their existing leases in the event of a lease termination by an anchor tenant, or the closure of the business of an anchor tenant that leaves its space vacant even if the anchor tenant continues to pay rent. Any such modifications or conditions could be unfavorable to the Company as the property owner and could decrease rents or expense recoveries. Additionally, major tenant closures may result in decreased customer traffic, which could lead to decreased sales at other stores. In the event of default by a tenant or anchor store, the Company may experience delays and costs in enforcing its rights as landlord to recover amounts due to the Company under the terms of its agreements with those parties.

<u>Short-term Residential leases</u>

Substantially all of the Company's residential leases will be on a short-term basis. Because these leases will generally permit the residents to leave at the end of the lease term without penalty, the Company's rental revenues would be impacted by declines in market rents more quickly than if its leases were for longer terms.

<u>Increased Unemployment Levels</u> <u>could</u> <u>Adversely Affect the Occupancy and Rental Rates of Multifamily Properties</u>

Increased levels of unemployment in multifamily markets could significantly decrease occupancy and rental rates. In times of increasing unemployment, multifamily occupancy and rental rates have historically been adversely affected by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• rental residents deciding to share rental units and therefore rent fewer units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential residents moving back into family homes or delaying leaving family homes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a reduced demand for higher-rent units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decline in household formation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons enrolled in college delaying leaving college or choosing to proceed to or return to graduate school in
the absence of available employment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the inability or unwillingness of residents to pay rent increases; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased collection losses.

These factors generally have contributed to lower rental rates. To the extent that the Company invests in multifamily properties, its results of operations, financial condition and ability to make distributions to shareholders may be adversely affected if these factors do not improve or worsen.

<u>Multifamily Properties may Face Increased Competition from Single-Family Homes and Condominiums for Rent</u>

Any multifamily communities in which the Company invests may compete with numerous housing alternatives in attracting residents, including single-family homes and condominiums available for rent. Such competitive housing alternatives may become more prevalent in a particular area in the event of any tightening of mortgage lending underwriting criteria, homeowner foreclosures, declines in single-family home and

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condominium sales or lack of available credit. The number of single-family homes and condominiums for rent in a particular area could limit the Company's ability to retain residents, lease apartment units or increase or maintain rents.

<u>Compliance with the Fair Housing Amendment of 1988</u>

Any multifamily residential properties in which the Company invests must comply with the Fair Housing Amendment Act of 1988 ("FHAA") which requires that multifamily communities first occupied after March 13, 1991 be accessible to handicapped residents and visitors. Compliance with the FHAA could require removal of structural barriers to handicapped access in a community, including the interiors of apartment units covered under the FHAA. Recently there has been heightened scrutiny of multifamily housing communities for compliance with the requirements of the FHAA and the ADA and an increasing number of substantial enforcement actions and private lawsuits have been brought against multifamily communities to ensure compliance with these requirements. Noncompliance with the FHAA and the ADA could result in the imposition of fines, awards of damages to private litigants, payment of attorneys' fees and other costs to plaintiffs, substantial litigation costs and substantial costs of remediation.

<u>Inflation</u>

An increase in inflation could have an adverse impact on the Company's floating rate mortgages, credit facility and general and administrative expenses, as these costs could increase at a rate higher than its rental and other revenue. Inflation could also have an adverse effect on consumer spending, which could impact the Company's tenants' revenues and, in turn, the Company's percentage rents, where applicable.

In addition, leases of long-term duration or which include renewal options that specify a maximum rate increase may result in below-market lease rates over time if the Company does not accurately estimate inflation or market lease rates. Provisions of the Company's leases designed to mitigate the risk of inflation and unexpected increases in market lease rates, such as periodic rental increases, may not adequately protect the Company from the impact of inflation or unexpected increases in market lease rates. If the Company is subject to below-market lease rates on a significant number of the Company's properties pursuant to long-term leases and the Company's operating and other expenses are increasing faster than anticipated, the Company's business, financial condition, results of operations, cash flows or the Company's ability to satisfy the Company's debt service obligations or to pay distributions could be materially adversely affected.

<u>Rising Interest Rates</u> 

Interest rates are one of the variables that affect real estate asset prices. A number of other factors are also important, including real estate market fundamentals, inflation expectations, and investor investment horizons and return targets. For real estate, changes in interest rates influence real estate capitalization rates, with higher interest rates ultimately resulting in higher capitalization rates and lower property values, all other things being equal. However, interest rates and capitalization rates do not always move in lockstep as there typically is a lag between changes in interest rates and changes in capitalization rates, and especially for high quality properties. Capitalization rates tend to be durable due to the long term, inflation-protected nature of tenant leases, which typically include annual rent increases.

<u>Market Risk</u>

The success of the Company's activities will be affected by general economic and market conditions, such as interest rates, inflation rates, industry conditions, competition, technological developments, tax laws, availability of credit, economic uncertainty, changes in laws (including laws relating to taxation of the Company's investments), trade barriers, currency exchange controls, and national and international political circumstances (including wars, terrorist acts or security operations). These factors may affect, among other

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things, the liquidity of the Company's investments and the availability of certain investments. Volatility or illiquidity could impair the Company's profitability or result in losses. Global markets have recently experienced unprecedented volatility and losses. The effects thereof are continuing and there can be no assurance that the Company will not be materially adversely affected. Furthermore, none of these conditions is within the control of the Trustee or the Investment Manager.

<u>Insolvency of Issuers, Counterparties, and Intermediaries</u>

Issuers of securities held by the Company or counterparties to its transactions that become insolvent or declare bankruptcy can pose special investment risks. In each circumstance, risk of loss, valuation uncertainty, increased illiquidity, and other unpredictable occurrences may negatively impact an investment.

<u>Force Majeure</u>

The Company's investments may be affected by force majeure events *(i.e.,* events beyond the control of the party claiming that the event has occurred, including, without limitation, acts of God, extreme weather events, fire, flood, earthquakes, war, civil unrest, terrorism, pandemics and other public health emergencies, and labor strikes). Some force majeure events may adversely affect the ability of a party (including a tenant of the Company's properties) to perform its obligations until it is able to remedy the force majeure event. In addition, the cost to a tenant of repairing or replacing damaged assets resulting from such force majeure event could be considerable. To the extent the Company leases its properties to companies that as a group are exposed to such force majeure events, the risks and potential losses to the Company are enhanced.

<u>The Impacts of Climate Change and Climate-Related Initiatives at the U.S. Federal and State Levels</u>

The physical effects of climate change could have an adverse impact on the Company's properties, operations, and business. The Company's properties could be damaged or destroyed by either singular extreme weather events (*e.g*., hurricanes and other severe storms, wildfires and floods) or the long-term, cumulative impacts of climate change (*e.g*., temperature changes, changes in precipitation frequency, weather instability and rising sea levels). Such effects could also adversely impact the Company's tenants if they are unable to operate their businesses due to damage resulting from such events. If the Company fails to adequately prepare for such physical effects of climate change, its revenues, results of operations and financial condition may be impacted. Climate change could also increase utility and other costs of operating the Company's properties, including increased costs for energy, water and other supply chain materials, which, if not offset by rising rental income or paid by tenants, could have a material adverse effect on the Company's properties, operations and business. In addition, the Company may incur significant costs in preparing for possible future climate change or climate related events or in response to the Company's tenants' requests for such investments and it may not realize desirable returns on those investments.

Awareness of severe weather and other climate events outside of the historical norm and concern from government agencies about the effects of climate change continue to increase. Transition risks, such as government restrictions, standards or regulations intended to reduce greenhouse gas emissions and potential climate change impacts, may increase in the future in the form of restrictions or additional requirements on the development of commercial real estate. Government authorities and various interest groups are promoting laws and regulations that could limit greenhouse gas, or GHG, emissions due to concerns over contributions to climate change. Such laws and regulations could increase the Company's costs or require additional technology and capital investment by its borrowers, which could adversely affect its operations. The United States Environmental Protection Agency, or EPA, has moved to regulate GHG emissions from large stationary sources, including electricity producers, and mobile sources, through fuel efficiency and other requirements, using its existing authority under the Clean Air Act. Moreover, certain state and regional programs are being implemented to require reductions in GHG emissions. This is a particular concern in the western United States, where some of the most extensive and stringent environmental laws and building construction standards in the United States have been enacted. The U.S. Congress has, from time to time, considered adopting additional legislation to reduce emissions.

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Any additional taxation or regulation of energy use, including as a result of (i) the regulations that EPA has proposed or may propose in the future, (ii) state programs and regulations, or (iii) renewed GHG legislative efforts by future Congresses, could result in increased operating costs that the Company may not be able to effectively pass on to the Company's tenants. In addition, any increased regulation of GHG emissions could impose substantial costs on the Company's industrial tenants. These costs include, for example, an increase in the cost of the fuel and other energy purchased by the Company's industrial tenants and capital costs associated with updating or replacing their trucks earlier than planned. Any such increased costs could impact the financial condition of the Company's industrial tenants and their ability to meet their lease obligations and to lease or re-lease the Company's properties.

<u>Investments Longer than Term</u>

The Company may make investments which may not be advantageously disposed of prior to the date the Company is dissolved. Although the Trustee expects that the Company's investments will be disposed of prior to dissolution or be suitable for in-kind distribution at dissolution, it may have to sell, distribute or otherwise dispose of investments at a disadvantageous time as a result of dissolution. In addition, although upon the Company's dissolution, the Trustee (or the relevant liquidator) will be required to use its best efforts to reduce to cash and cash equivalents such of the Company's assets as the Trustee or such liquidator shall deem it advisable to sell, subject to obtaining fair value for such assets and any tax or other legal considerations, there can be no assurances with respect to the time frame in which the winding up and the final distribution of proceeds to the Company's shareholders will occur.

<u>Tax Protection Agreements</u>

The Company is organized as an UPREIT. A sale of property directly to a REIT is generally a taxable transaction to the selling property owner. However, a seller of appreciated property who desires to defer taxable gain on the transfer of such property may, subject to meeting applicable tax requirements, transfer the property (or their interests in the entities that own the property) to the Operating Partnership in exchange for limited partnership interests in the Operating Partnership on a tax-free basis. In connection with such transactions, the Operating Partnership may enter into what are commonly referred to as "tax protection agreements" with the parties that contribute properties to the Operating Partnership in exchange for limited partnership interests.

The primary purpose of such tax protection agreements is to protect the contributor of the property from recognizing gain upon the contribution transaction and for a specified period thereafter. Pursuant to a typical tax protection agreement, the Operating Partnership would agree that, for the specified period (i) there will be sufficient Operating Partnership liabilities allocated, for income tax purposes, to the contributing limited partner or available to be guaranteed by the contributing limited partner to prevent the recognition of gain, and (ii) the Operating Partnership will not dispose of the contributed property in a taxable transaction that triggers the taxable built-in gain to the contributing limited partner. The additional costs associated with indemnifying property contributors from tax liabilities resulting from the sale of the contributed assets and other terms of any tax protection agreements that the Operating Partnership enters into may restrict the Company's ability to sell one or more properties or pay off indebtedness when it would otherwise be favorable or prudent.

<u>Ongoing Military Conflicts and Political Instability</u> 

There are currently ongoing military conflicts between Russia and Ukraine (the "Russia-Ukraine Conflict") and between Israel and Hamas (collectively, "Current Military Actions"). The Current Military Actions have caused, and are currently expected to continue to cause, disruptions to global financial systems, international trade, and the transportation and energy sectors, among other disruptions. In addition, the Current Military

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Actions have displaced millions of people, causing an acute global refugee crisis, and have increased the threat of nuclear accidents or attacks, cyberattacks and further regional or global conflicts (including a potential expansion of the Current Military Actions to other countries as well as other potential conflicts, including, but not limited to, conflicts in other geographic locations and between other state and non-state actors), among other potentially serious consequences.

In response to Russia's actions during the Russia-Ukraine Conflict, multiple countries and governing bodies, including the United States and the European Union, have put in place global sanctions and other severe restrictions or prohibitions on the activities of certain individuals and businesses connected to Russia or Belarus. Private companies have also implemented restrictions that severely limit, and in some cases, reverse or cancel, business transactions in or involving certain individuals or businesses connected to or associated with Russia or Belarus. Further, some private companies have moved to divest of Russia-based subsidiaries and assets.

The ultimate impact of the Current Military Actions on global economic and commercial activity and conditions, and on the Company's operations, financial condition and performance, is impossible to predict. The Current Military Actions may have a significant adverse impact on the Company and its investments. This impact may include reductions in revenue and growth, unexpected operational losses and liabilities and reductions in the availability of capital. The Current Military Actions may also limit the Company's ability to source, diligence and execute new investments and to manage, finance and exit investments in the future. Developing and further governmental actions (military or otherwise) may cause additional disruption and constrain or alter existing financial, legal and regulatory frameworks and systems in ways that are adverse to the Company's investment strategy, all of which could adversely affect the Company's ability to fulfill its investment objectives.

**Risks Relating to investments In Real Estate-Related Securities** 

<u>Cash and Other Investments</u>

The Company may invest all or a portion of its assets in cash or cash items for investment purposes, pending other investments or as provision of margin for futures or forward contracts. These cash items may include, but are not limited to, a number of money market instruments such as negotiable or non-negotiable securities issued by or short-term deposits with the U.S. and non-U.S. governments and agencies or instrumentalities thereof, bankers' acceptances, commercial paper, repurchase agreements, bank certificates of deposit, short-term debt securities of U.S. or non-U.S. issuers deemed to be creditworthy by the Investment Manager, and money market funds, including those advised by the Investment Manager or its affiliates. While these investments generally involve relatively low risk levels, they may produce lower than expected returns and could result in losses. Investments in cash items may also provide less liquidity than anticipated by the Company at the time of investment.

<u>Investments in Corporate Debt and other Fixed Income Securities</u>

The Company may invest in bonds or other fixed income securities, including, without limitation, bonds, notes and debentures issued by corporations, limited partnerships and other similar entities. The Company may also invest in debt securities issued or guaranteed by the U.S. or a foreign government or one of its agencies or instrumentalities, commercial paper, and "higher yielding" (and, therefore, higher risk) debt securities of the former categories. These securities may pay fixed, variable or floating rates of interest, and may include zero coupon obligations. Fixed income securities are subject to the risk of the issuer's inability to meet principal and interest payments on its obligations (i.e., credit risk) and are subject to price volatility due to such factors as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity (i.e., market risk). A major economic recession could disrupt severely the market for such securities and may have an adverse impact on the value of such securities. In addition, any such economic downturn could adversely affect the ability of the issuers of such securities to repay principal and pay interest thereon and increase the incidence of default for such securities.

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<u>Investments in Real Estate-Related Equity</u>

The Company expects to invest from time to time in non-controlling preferred equity positions, common equity and other real estate-related interests of companies that invest in commercial properties. Preferred equity investments generally rank junior to all existing and future indebtedness, including commercial mezzanine and mortgage loans, but rank senior to the owners' common equity. Preferred equity investments typically pay a dividend rather than interest payments and often have the right for such dividends to accrue if there is insufficient cash flow to pay currently. These interests are not secured by the underlying real estate, but upon the occurrence of a default, the preferred equity provider typically has the right to effectuate a change of control with respect to the ownership of the property. In addition, equity investments may be illiquid or have limited liquidity due to lock-out periods, limited trading volume or other limitations or prohibitions against their transfer, sale, pledge or disposition, including any necessary registration with the SEC requiring coordination with the issuer for the sale of such securities. The Company's investments in real estate-related equity securities will involve risks relating to the particular issuer of the securities, including the financial condition and business outlook of the issuer. Issuers of real estate-related common equity securities generally invest in real estate or real estate-related assets and are subject to the inherent risks associated with investments in real estate.

<u>Investments in Equity Securities of other REITs and Other Real Estate-Related Companies</u> 

Any investments the Company makes in equity securities of REITs and other real estate-related companies will be subject to the risks of the real estate market and securities market.

REITs are dependent upon specialized management skills, have limited diversification and are, therefore, subject to risks inherent in financing a limited number of projects. REITs may be subject to management fees and other expenses, and therefore when the Company invests in REITs, it will bear the Company's proportionate share of the costs of the REITs' operations. Investing in REITs and real estate- related companies involves certain unique risks in addition to those risks associated with investing in the real estate industry in general. The market value of REIT shares and the ability of the REIT to distribute income may be adversely affected by several factors, including the risks described herein that relate to an investment in the Shares. REITs depend generally on their ability to generate cash flow to make distributions to shareholders, and certain REITs have self-liquidation provisions by which mortgages held may be paid in full and distributions of capital returns may be made at any time. In addition, distributions received by the Company from REITs may consist of dividends, capital gains, or return of capital. Generally, dividends received by the Company from REIT shares and distributed to its shareholders will not constitute "qualified dividend income" eligible for the reduced tax rate applicable to qualified dividend income. In addition, the performance of a REIT may be affected by changes in the tax laws or by its failure to qualify for tax-free pass-through of income.

A REIT may impose limits on how much of its securities any one investor may own. These ownership limitations may result in an investor being unable to purchase (or otherwise obtain economic exposure to) the desired amounts of certain REITs. In some circumstances, the Company may seek and obtain a waiver from a REIT to exceed the REIT's ownership limitations without being subject to the adverse consequences of exceeding such limit were a waiver not obtained, provided that the Company complies with the provisions of the waiver.

REITs are subject to interest rate risk. Rising interest rates may cause REIT investors to demand a higher annual yield, which may, in turn, cause a decline in the market price of the equity securities issued by a REIT.

Investing in certain REITs and real estate-related companies, which often have small market capitalizations, may also involve the same risks as investing in other small capitalization companies. REITs and real estate-related companies may have limited financial resources and their securities may trade less frequently and in limited volume and may be subject to more abrupt or erratic price movements than larger company securities.

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<u>Investments in Open Market Purchases or Investments in Publicly Traded Securities</u>

The Company may invest in securities that are publicly traded and are, therefore, subject to the risks inherent in investing in public securities. When investing in public securities, the Company may be unable to obtain financial covenants or other contractual rights, including management rights that it might otherwise be able to obtain in making privately negotiated investments. Moreover, the Company may not have the same access to information in connection with investments in public securities, either when investigating a potential investment or after making an investment, as compared to privately negotiated investments. In addition, an investment may be sold by the Company to a public company where the consideration received is a combination of cash and stock of the public company, which may, depending on the securities laws of the relevant jurisdiction, be subject to lock-up periods.

<u>Lack of Liquidity in Securities Investments</u>

There can be no assurance that there will be a ready market for the resale of the Company's real estate-related securities investments because such investments may not be liquid. Illiquidity may result from the absence of an established market for the investments, as well as legal or contractual restrictions on their resale by the Company, particularly for certain of its loan investments. The credit markets have periodically experienced decreased liquidity on the primary and secondary markets during periods of market volatility. Such market conditions could re-occur and would impact the valuations of the Company's investments and impair its ability to sell such investments if it was required to liquidate all or a portion of its investments quickly. Additionally, certain of the Company's investments in securities may be subject to holding period and other restrictions that limit its ability to sell such investments.

**Risks Related to Debt Financing** 

<u>Adverse Changes in the Credit Markets</u>

Any adverse changes in the global credit markets could make it more difficult for the Company to obtain favorable financing. The Company's ability to generate attractive investment returns for its shareholders will be adversely affected to the extent it is unable to obtain favorable financing terms. If the Company is unable to obtain favorable financing terms, it may not be able to adequately leverage its portfolio, may face increased financing expenses or may face increased restrictions on its investment activities, any of which would negatively impact the Company's performance.

<u>Mortgage Indebtedness and other Borrowings may Increase Business Risks</u>

The acquisition of investment properties may be financed in substantial part by borrowing, which increases the Company's exposure to loss. The Company's target leverage ratio with respect to indebtedness is approximately 40% to 50%. See "Investment Objectives and Strategies—Leverage Policies." The Company may exceed its target leverage ratio at any time, particularly during a market downturn or in connection with a large acquisition. The use of leverage involves a high degree of financial risk and will increase the exposure of the investments to adverse economic factors such as rising interest rates, downturns in the economy, or deteriorations in the condition of the investments. Principal and interest payments on indebtedness (including mortgages having "balloon" payments) will have to be made regardless of the sufficiency of cash flow from the properties. The Company's investments will be impaired by a smaller decline in the value of the properties than is the case where properties are owned with a proportionately smaller amount of debt.

The Company may incur or increase its mortgage debt by obtaining loans secured by a portfolio of some or all of the real estate acquired and may borrow under mortgages on properties after they are acquired. Depending on the level of leverage and decline in value, if mortgage payments are not made when due, one or more of the properties may be lost (and the Company's investment therein rendered valueless) as a result of foreclosure by the mortgagee(s). A foreclosure may also have substantial adverse tax consequences for the Company.

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Many of these same issues also apply to any credit facilities which the Company enters into. For example, the loan documents for such facilities may include various coverage ratios, the continued compliance with which may not be completely within the Company's control. If such coverage ratios are not met, the lenders under such credit facilities may declare any unfunded commitments to be terminated and declare any amounts outstanding to be due and payable. The Company may also rely on short-term financing that would be especially exposed to changes in availability.

Although borrowings by the Company have the potential to enhance overall returns that exceed the Company's cost of funds, they will further diminish returns (or increase losses on capital) to the extent overall returns are less than the Company's cost of funds. As a result, the possibilities of profit and loss are increased. Borrowing money to purchase properties provides the Company with the advantages of leverage, but exposes it to greater market risks and higher current expenses.

<u>Inability to Access Funding</u>

The Company's results of operations, financial condition and business may be impacted by the Company's ability to secure bank credit facilities (including term loans and revolving facilities), warehouse facilities and structured financing arrangements, public and private debt or bond issuances (including through securitizations), repurchase agreements and derivative instruments, in addition to transaction or asset specific funding arrangements and additional repurchase agreements on acceptable terms. The Company may also rely on short-term financing that would be especially exposed to changes in availability. The Company's access to sources of financing will depend upon a number of factors, over which the Company has little or no control, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic or market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the market's view of the quality of the Company's assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the market's perception of the Company's growth potential; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company's current and potential future earnings and cash distributions.

The Company may need to periodically access the capital markets to, among other things, raise cash to fund new loans and investments. Unfavorable economic conditions, such as those caused by the COVID-19 pandemic, or capital market conditions may increase the Company's funding costs, limit its access to the capital markets or could result in a decision by its potential lenders not to extend credit. An inability to successfully access the capital markets could limit the Company's ability to grow its business and fully execute its business strategy and could decrease the Company's earnings and liquidity. In addition, any dislocation or weakness in the capital and credit markets could adversely affect the Company's lenders and could cause one or more of its lenders to be unwilling or unable to provide the Company with financing or to increase the costs of that financing. In addition, as regulatory capital requirements imposed on the Company's lenders are increased, they may be required to limit, or increase the cost of, financing they provide to the Company. In general, this could potentially increase the Company's financing costs and reduce its liquidity or require the Company to sell assets at an inopportune time or price. The Company cannot make assurances that it will be able to obtain any additional financing on favorable terms or at all.

<u>Financings for Properties may be Recourse to the Company</u>

Generally, commercial real estate financings are structured as non-recourse to the borrower, which limits a lender's recourse to the property pledged as collateral for the loan, and not the other assets of the borrower or to any parent of borrower, in the event of a loan default. However, lenders customarily will require that a creditworthy parent entity enter into so-called "recourse carveout" guarantees to protect the lender against certain bad-faith or other intentional acts of the borrower in violation of the loan documents. A "bad boy" guarantee

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typically provides that the lender can recover losses from the guarantors for certain bad acts, such as fraud or intentional misrepresentation, intentional waste, willful misconduct, criminal acts, misappropriation of funds, voluntary incurrence of prohibited debt and environmental losses sustained by lender. In addition, "bad boy" guarantees typically provide that the loan will be a full personal recourse obligation of the guarantor, for certain actions, such as prohibited transfers of the collateral or changes of control and voluntary bankruptcy of the borrower. These financing arrangements with respect to the Company's investments generally require "bad boy" guarantees from the Company or the Operating Partnership and in the event that such a guarantee is called, the Company's assets could be adversely affected. Moreover, the Company's "bad boy" guarantees could apply to actions of the joint venture partners associated with its investments. While the Investment Manager expects to negotiate indemnities from such joint venture partners to protect against such risks, there remains the possibility that the acts of such joint venture partner could result in liability to the Company under such guarantees.

<u>Risks Related to Lines of Credit</u>

The Company has obtained the Line of Credit from FMR, and it may seek to obtain additional lines of credit in an effort to provide for a ready source of liquidity for any business purpose. There can be no assurances that the Company will be able to borrow under or maintain any such line of credit or obtain any such line of credit on financially reasonable terms. In addition, the Company may not be able to obtain lines of credit of an appropriate size for its business. The Company's leverage may remain at the higher level until it receives additional net proceeds from its private offering or generate sufficient operating cash flow or proceeds from asset sales to repay outstanding indebtedness. In connection with a line of credit, distributions may be subordinated to payments required in connection with any indebtedness contemplated thereby.

<u>Default on Loan Obligations</u>

In the event the Company defaults under a mortgage loan, credit facility or other financing arrangement, its business could be adversely affected. In the event of such a default, the Company may be forced to sell a portion of its investments quickly and prematurely at prices that may be disadvantageous to the Company in order to meet its outstanding payment obligations or support working capital requirements under the loan documents, any of which would have a material adverse effect on the Company's business, financial condition, results of operations and cash flows. In addition, following any such default, the agent for the lenders could assume control of the disposition of any or all of the Company's assets, including the selection of such assets to be disposed and the timing of such disposition, which would have a material adverse effect on the Company's business, financial condition, results of operations and cash flows.

<u>Increases in Interest Rates</u>

Interest the Company pays on its loan obligations will reduce cash available for distributions. The Company has and will likely in the future obtain variable rate loans, and as a result, increases in interest rates could increase or interest costs, which could reduce the Company's cash flows and its ability to make distributions to shareholders. In addition, if the Company needs to repay existing loans during periods of rising interest rates, it could be required to liquidate one or more of the Company's investments at times that may not permit realization of the maximum return on such investments.

<u>Volatility in Financial Markets and Challenging Economic Conditions Could Adversely Affect the Company's Ability to Secure Debt Financing on Attractive Terms</u>

The volatility of the global credit markets could make it more difficult to obtain favorable financing for investments. During periods of volatility, which often occur during economic downturns, generally credit spreads widen, interest rates rise, and investor demand for high yield debt declines. These trends result in reduced willingness by investment banks and other lenders to finance new investments and deterioration of available terms. If the overall cost of borrowing increases, either by increases in the index rates or by increases in lender

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spreads, the increased costs may result in future acquisitions generating lower overall economic returns and potentially reducing future cash flow available for distribution. Disruptions in the debt markets negatively impact the Company's ability to borrow monies to finance the purchase of, or other activities related to, real estate assets. If the Company is unable to borrow monies on terms and conditions that it finds acceptable, it likely will have to reduce the number of properties the Company can purchase, and the return on the properties it does purchase may be lower. In addition, the Company may find it difficult, costly, or impossible to refinance indebtedness that is maturing. Moreover, to the extent that such marketplace events are not temporary, they could have an adverse impact on the availability of credit to businesses generally and could lead to an overall weakening of the U.S. economy.

<u>Lenders may Require Restrictive Covenants Relating to the Company's Operations</u>

When providing financing, a lender may impose restrictions on the Company that affects the Company's distribution and operating policies and its ability to obtain additional loans. Loan documents the Company enters into may contain covenants that limit its ability to further mortgage or dispose of the property or discontinue insurance coverage. In addition, loan documents may limit the Company's ability to enter into or terminate certain operating or lease agreements related to the property. Loan documents may also require lender approval of certain actions and as a result of the lender's failure to grant such approval, the Company may not be able to take a course of action it deems most profitable. These or other limitations may adversely affect the Company's flexibility and its ability to make distributions and the value of an investment in Shares.

<u>Financing Arrangements Involving Balloon Payment Obligations</u>

Some of the Company's financing arrangements may require it to make a lump-sum or "balloon" payment at maturity. The Company's ability to make a balloon payment is uncertain and may depend upon its ability to obtain replacement financing or its ability to sell particular properties. At the time the balloon payment is due, the Company may or may not be able to refinance the balloon payment on terms as favorable as the original loan or sell the particular property at a price sufficient to make the balloon payment. Such a refinancing would be dependent upon interest rates and lenders' policies at the time of refinancing, economic conditions in general and the value of the underlying properties in particular. The effect of a refinancing or sale could affect the rate of return to shareholders and the projected time of disposition of the Company's assets.

<u>Failure to Hedge Effectively Against Interest Rate Changes</u>

Subject to any limitations required to maintain qualification as a REIT, the Company may seek to manage its exposure to interest rate volatility by using interest rate hedging arrangements, such as interest rate cap or collar agreements and interest rate swap agreements. These agreements involve risks, such as the risk that counterparties may fail to honor their obligations under these arrangements and that these arrangements may not be effective in reducing the Company's exposure to interest rate changes. These interest rate hedging arrangements may create additional assets or liabilities from time to time that may be held or liquidated separately from the underlying property or loan for which they were originally established. Hedging may reduce the overall returns on the Company's investments. Failure to hedge effectively against interest rate changes may materially adversely affect its results of operations and financial condition.

**Risks Related to the Company's REIT Status and Certain Other Tax Items** 

<u>If the Company Fails to Qualify to be Taxed as a REIT, it will Face Serious Tax Consequences that will Substantially Reduce the Funds Available to Satisfy the Company's Obligations, Implement its Business Strategy and Make Distributions to Shareholders for Each Year Involved</u>

The Company intends to operate so as to qualify as a REIT under the Code. However, qualification as a REIT involves the application of highly technical and complex Code provisions for which only a limited number

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of judicial or administrative interpretations exist. Notwithstanding the availability of cure provisions in the Code, the Company may fail to comply with various compliance requirements and could jeopardize the Company's REIT status. Furthermore, new tax legislation, administrative guidance or court decisions, in each instance potentially with retroactive effect, could make it more difficult or impossible to qualify as a REIT. If the Company fails to qualify as a REIT in any tax year, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company would be taxed as a regular domestic corporation, with no deduction for dividends distributed to
shareholders in computing its taxable income and being subject to federal and applicable state and local income tax on the Company's taxable income at regular corporate income tax rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any resulting tax liability could be substantial and could have a material adverse effect on the Company's
NAV and cash available for distribution to shareholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company generally would not be eligible to re-elect to be taxed as a
REIT for the subsequent four full taxable years.

<u>The Company's Qualification as a REIT could be Jeopardized as a Result of an Interest in Joint Ventures or Investment Funds</u>

The Company may hold certain limited partner or non-managing member interests in partnerships or limited liability companies that are joint ventures or investment funds. Such investments may be substantial and may take the form of non-managing, non-controlling interests. The Company's ability to qualify as a REIT will be affected by such investments. To the extent that the Company's investment in an entity that is classified as a partnership for U.S. federal income tax purposes is not held through a TRS, its shares of the gross income of the entity will be taken into account for purposes of determining whether the Company satisfies the REIT gross income tests and its share of the assets of the entity will be taken into account for purposes of determining whether the Company satisfies the REIT asset tests. If a partnership or limited liability company in which the Company owns an interest takes or expects to take actions that could jeopardize its qualification as a REIT or requires the Company to pay tax, it may be forced to dispose of its interest in such entity or contribute such interest to a TRS. In addition, it is possible that a partnership or limited liability company could take an action which could cause the Company to fail a REIT gross income or asset test, and that the Company would not become aware of such actions in time to dispose of its interest in the partnership or limited liability company or take other corrective action on a timely basis. In addition, the Company will have to take into account its share of the income of such joint ventures and investment funds that are classified as partnerships for tax purposes without regard to whether such joint ventures or funds make distributions to the Company to fund the REIT distribution requirements.

<u>The Company May be Subject to Adverse Legislative or Regulatory Tax Changes</u>

The U.S. federal income taxation of REITs and REIT shareholders may be modified, possibly with retroactive effect, by legislative, administrative or judicial action at any time. The One Big Beautiful Bill Act, which was signed into law on July 4, 2025, made significant changes to the U.S. federal income tax laws in various areas. Among the notable changes, the One Big Beautiful Bill Act permanently extended certain provisions that were enacted in the Tax Cuts and Jobs Act of 2017, most of which were set to expire after December 31, 2025. Further changes to the tax laws are possible. Potential shareholders are urged to consult with their tax advisors with respect to the impact of potential legislative, regulatory or administrative changes and their potential effect on an investment in Shares.

<u>To Maintain REIT Status, the Company May Borrow Funds on a Short-Term Basis During Unfavorable Market Conditions</u>

To qualify as a REIT, the Company generally must distribute annual dividends to shareholders equal to at least 90% of its REIT taxable income, determined without regard to the dividends-paid deduction and excluding

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net capital gains. The Company will be subject to regular corporate income taxes on any undistributed REIT taxable income, each year, including any undistributed net capital gains. Additionally, the Company will be subject to a 4% nondeductible excise tax on any amount by which its distributions paid in any calendar year are less than the sum of 85% of the Company's ordinary income, 95% of the Company's capital gain net income and 100% of its undistributed income from previous years. If the Company does not have sufficient cash to make distributions necessary to preserve REIT status for any year or to avoid taxation, the Company may be forced to borrow funds or sell assets even if the market conditions at that time are not favorable for these borrowings or sales.

<u>Compliance with REIT requirements May Cause the Company to Forego Otherwise Attractive Opportunities, which May Hinder or Delay its Ability to Meet its Investment Objectives and Reduce Overall Returns to Shareholders</u>

To qualify as a REIT, the Company is required at all times to satisfy tests relating to, among other things, the sources of its gross income, the nature and diversification of its assets, the ownership of its shares and the amounts it distributes to shareholders. Compliance with the REIT requirements may impair the Company's ability to operate solely on the basis of maximizing profits. For example, the Company may be required to make distributions to shareholders at disadvantageous times or when the Company does not have funds readily available for distribution.

<u>Compliance with REIT Requirements May Force the Company to Liquidate or Restructure Otherwise Attractive Investments</u>

To qualify as a REIT, at the end of each calendar quarter, at least 75% of the value of the Company's assets must consist of cash, cash items, government securities, and qualified real estate assets. The remainder of the Company's investments in securities (other than good assets for purposes of the 75% asset test and, subject to separate limits, securities of TRSs) generally cannot include more than 10% of the voting securities of any one issuer or more than 10% of the value of the outstanding securities (other than securities that qualify for the straight debt safe harbor) of any one issuer. Debt will generally meet the "straight debt" safe harbor if the debt is a written unconditional promise to pay on demand or on a specified date a sum certain, the debt is not convertible, directly or indirectly, into stock, and the interest rate and the interest payment dates of the debt are not contingent on profits, the borrower's discretion, or similar factors. Additionally, no more than 5% of the value of the Company's assets (other than good assets for purposes of the 75% asset test and, subject to separate limits, securities of TRSs) can consist of the securities of any one issuer, and no more than 20% of the value of the Company's assets may be represented by securities of one or more TRSs for taxable years ending on or before December 31, 2025. For taxable years beginning after December 31, 2025, that percentage limit is increased from 20% to 25%. In order to satisfy these requirements and maintain REIT qualification, the Company may be forced to liquidate assets from its portfolio or not make otherwise attractive investments. These actions could have the effect of reducing amounts available for distribution to shareholders.

<u>Non-U.S. holders May be Required to File U.S. Federal Income Tax Returns and Pay U.S. Federal Income Tax upon Disposition of Shares or upon Receipt of Certain Distributions</u> 

In addition to any potential withholding tax on ordinary dividends, a non-U.S. holder other than a "qualified shareholder" or a "qualified foreign pension fund," as each is defined for purposes of the Code, that disposes of a "United States real property interest" ("USRPI") (which includes shares of stock of a U.S. corporation whose assets consist principally of USRPIs), is generally subject to U.S. federal income tax under the Foreign Investment in Real Property Tax Act of 1980, as amended ("FIRPTA"), on the gain from such disposition. FIRPTA gains must be reported on U.S. federal income tax returns and are taxable at regular U.S. federal income tax rates. Such tax does not apply, however, to the gain on disposition of stock in a REIT that is "domestically controlled." Generally, a REIT is domestically controlled if less than 50% of its stock, by value, has been owned directly or indirectly by non-U.S. persons during a continuous five-year period ending on the date of disposition

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or, if shorter, during the entire period of the REIT's existence. While the Company expects to qualify as a domestically controlled REIT, there are no assurances that it will qualify as a domestically controlled REIT.

In addition, a non-U.S. holder other than a "qualified shareholder" or a "qualified foreign pension fund," that receives a distribution from a REIT that is attributable to gains from the disposition of a USRPI as described above, including in connection with its liquidation is generally subject to U.S. federal income tax under FIRPTA.

Potential non-U.S. holders should inform themselves as to the U.S. tax consequences, and the tax consequences within the countries of their citizenship, residence, domicile, and place of business, with respect to the purchase, ownership and disposition of Shares.

<u>The Company May Incur Tax Liabilities that Reduce its Cash Available for Distribution to Shareholders</u>

Even if the Company qualifies to be taxed as a REIT, it may be subject to U.S. federal income and excise taxes and related state and local taxes. For example, net income from the sale of properties that are "dealer" properties sold by a REIT (a "prohibited transaction" under the Code) will be subject to a 100% tax. REITs are subject to income tax on undistributed income, including net capital gain, and excise taxes on insufficiently distributed income. If the Company was to fail a gross income test (and did not lose its REIT status because such failure was due to reasonable cause and not willful neglect), it would be subject to tax on the nonqualifying income. The Company may decide to retain net capital gain from the sale or other disposition of its investments and pay income tax directly on such income. In that event, shareholders would be treated as if they earned that income and paid the tax on it directly. However, shareholders that are tax-exempt entities would have no benefit from their deemed payment of such tax liability unless they file U.S. federal income tax returns and seek a refund of such tax. The Company also may be subject to state and local income, property and other taxes. Any TRS of the Company's will be subject to full U.S. federal, state and local corporate-level income taxes. Any taxes the Company pays will reduce cash available for distribution to shareholders.

<u>Restrictions on the Deduction of the Operating Partnership's Interest Expense Could Prevent the Company from Satisfying the REIT Distribution Requirements and Avoiding the Incurrence of Income or Excise Taxes</u>

The deduction for business interest expense may be limited to the amount of the taxpayer's business interest income plus 30% of the taxpayer's "adjusted taxable income" unless the taxpayer's gross receipts do not exceed $25 million per year during the applicable testing period or the taxpayer qualifies to elect and elects to be treated as an "electing real property trade or business." A taxpayer's adjusted taxable income will start with the Company's taxable income and add back items of non-business income and expense, business interest income and business interest expense, net operating losses, any deductions for "qualified business income," and, in taxable years that began before January 1, 2022, any deductions for depreciation, amortization or depletion. A taxpayer that is exempt from the interest expense limitations as an electing real property trade or business is ineligible for certain expensing benefits and is subject to less favorable depreciation rules for real property. The rules for business interest expense will apply to the Operating Partnership, the Company and at the level of each entity in which or through which the Operating Partnership invests that is not a disregarded entity for U.S. federal income tax purposes. To the extent that interest expense is not deductible, taxable income will be increased, as will REIT distribution requirements and the amounts needed to distribute to avoid incurring income and excise taxes.

<u>Shareholders May Have Current Tax Liability on Distributions Reinvested in Shares</u>

Shareholders that participate in the DRIP will be deemed to have received, and for U.S. federal income tax purposes will be taxed on, the amount reinvested in Shares to the extent the amount reinvested was not a tax-free return of capital. Therefore, unless you are a tax-exempt entity, you may be forced to use funds from other sources to pay your tax liability on the reinvested dividends.

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<u>Generally, Ordinary Dividends Paid by REITs do Not Qualify for Reduced U.S. Federal Income Tax Rates</u>

Dividends paid by REITs generally are not eligible for the reduced rates applicable to qualified dividend income. REIT dividends that are not designated as qualified dividend income or capital gain dividends are taxable as ordinary income. However, non-corporate U.S. taxpayers may be entitled to claim a deduction in determining their taxable income of up to 20% of qualified REIT dividends (which are dividends other than capital gain dividends and dividends attributable to certain qualified dividend income). Such non-corporate U.S. taxpayers are urged to consult with their tax advisors regarding the deduction for qualified REIT dividends.

<u>Any TRSs Owned by the Company Would be Subject to Special Rules that may Result in Increased Taxes</u>

The Company may conduct certain activities or invest in assets through one or more TRSs. A TRS is a corporation other than a REIT in which a REIT directly or indirectly holds stock and that has made a joint election with such REIT to be treated as a TRS. Other than some activities relating to management of hotel and health care properties, a taxable REIT subsidiary may generally engage in any business, including the provision of services to tenants of its parent REIT. A domestic taxable REIT subsidiary is subject to U.S. federal income tax as a regular C corporation.

No more than 20% of the value of a REIT's total assets may consist of stock or securities of one or more TRSs for taxable years ending on or before December 31, 2025. For taxable years beginning after December 31, 2025, that percentage limit is increased from 20% to 25%. This requirement limits the extent to which the Company can conduct activities through TRSs. In addition, a REIT must pay a 100% penalty tax on IRS adjustments to certain payments between a REIT and its TRS if the economic arrangements are not comparable to similar arrangements between unrelated parties.

<u>Complying with REIT Requirements May Limit the Company's Ability to Hedge Effectively</u>

The REIT provisions of the Code may limit the Company's ability to hedge its assets and operations. Under these provisions, any income from hedging transactions will be excluded from gross income for purposes of the 75% and 95% REIT gross income tests if: (i) the instrument (A) hedges interest rate risk or foreign currency exposure on liabilities used to carry or acquire real estate assets, (B) hedges risk of currency fluctuations with respect to any item of income or gain that would be qualifying income under the 75% or 95% gross income tests or (C) hedges a position entered into pursuant to clause (A) or (B) after the extinguishment of such liability or disposition of the asset producing such income; and (ii) such instrument is properly identified under applicable Treasury regulations. Income from hedging transactions that do not meet these requirements will generally constitute non-qualifying income for purposes of both the 75% and 95% gross income tests. As a result of these rules, the Company may have to limit its use of hedging techniques that might otherwise be advantageous or implement those hedges through a TRS.

<u>Recharacterization of Sale-Leaseback Transactions May Cause the Company to Lose REIT Status</u>

The Company may purchase real properties and lease them back to the sellers of such properties. The IRS could challenge the Company's characterization of any sale-leaseback transactions. In the event that any such sale-leaseback transaction is challenged and recharacterized as a financing transaction or loan for U.S. federal income tax purposes, it would not be treated as owning the property for purposes of the assets tests or receiving rents for purposes of the gross income tests. If a sale-leaseback transaction were so recharacterized, the Company might fail to satisfy the REIT "asset tests" or "gross income tests" and, consequently, lose its REIT status. Alternatively, the amount of the Company's REIT taxable income could be recalculated which might also cause it to fail to meet the distribution requirements for a taxable year.

<u>Sales of the Company's Properties at Gains are Potentially Subject to the Prohibited Transaction Tax</u>

The Company's ability to dispose of property is restricted as a result of its REIT status. The Company will be subject to a 100% tax on any gain realized on the sale or other disposition of any property (other than

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foreclosure property) it owns, directly or through a subsidiary entity, including the Operating Partnership, but excluding the Company's TRSs or other corporations, that is deemed to be inventory or property held primarily for sale to customers in the ordinary course of trade or business unless a safe harbor applies under the Code. Whether property held primarily for sale to customers in the ordinary course of a trade or business depends on the particular facts and circumstances surrounding each property. The Company intends to avoid the 100% prohibited transaction tax by (1) conducting activities that may otherwise be considered prohibited transactions through a TRS, (2) conducting operations in such a manner so that no sale or other disposition, other than through a TRS, will be treated as a prohibited transaction, or (3) structuring certain dispositions to comply with certain safe harbors available under the Code. However, no assurance can be given that any particular property will not be treated as property held primarily for sale to customers in the ordinary course of a trade or business or that a safe harbor will apply.

<u>Changes in Tax Laws Governing IRAs Could Result in Adverse Tax Consequences to IRA Owners and Beneficiaries</u>

A change in the current tax laws under the Code or other applicable tax rules governing individual retirement accounts ("IRAs") and their investments (including, without limitation, the Code provisions governing the maximum contributions that may be made to IRAs, the types of investments that IRAs may hold, the maximum amount that may be invested in IRAs, and/or the annual minimum required distributions that IRAs must make) could result in adverse tax consequences to IRAs (and their owners and beneficiaries) that invest in the Company. Such changes could include, for example, a prohibition on IRAs holding investments such as Shares or a limitation on the aggregate investments that an IRA may hold, which may cause an IRA to lose its tax-exempt status if it is unable to divest from the necessary investments to satisfy any such rules or be exposed to penalty taxes for failure to comply with such rules.

**Item 2. Financial Information** 

**Management's Discussion and Analysis of Financial Condition and Results of Operations** 

*The following discussion of the Company's financial condition and results of operations should be read together with "Item 1. Business" of this Registration Statement, as well as the consolidated financial statements and the related notes included in this Registration Statement. Some of the information contained in this discussion and analysis or set forth elsewhere in this Registration Statement, including information with respect to the Company's plans and strategies for its business, includes forward-looking statements that involve risks and uncertainties. You should read "Item 1A. Risk Factors" and the "Cautionary Note Regarding Forward-Looking Statements" section of this Registration Statement for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by these forward-looking statements.* 

**Overview** 

The Company invests primarily in stabilized, income-generating real estate assets located in the United States. The Company also, to a lesser extent, invests in real estate debt investments and securities. The Company owns all or substantially all of its investments through the Operating Partnership. The Company is externally managed by the Investment Manager. The Company currently operates its business as one reportable segment.

The Company intends to be taxed as a REIT under the Code, commencing with its taxable year ended December 31, 2023. REITs generally will not be subject to U.S. federal income taxes on taxable income to the extent they annually distribute all of their net taxable income to shareholders and maintain their qualification as a REIT. As of March 31, 2026, the Company had received cumulative proceeds of $365.0 million from the sale of 33.5 million Shares in the Company's continuous private offering, inclusive of DRIP proceeds. The Company contributed the net proceeds from the sale of Shares to the Operating Partnership in exchange for a corresponding number of Operating Partnership units. The Operating Partnership has primarily used the net proceeds to make

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investments in real estate and real estate debt and for other general corporate purposes as further described below under "Investment Portfolio." The Company intends to continue selling Shares on a monthly basis through its continuous private offering.

**2025 Highlights** 

<u>Operating Results</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company declared quarterly distributions totaling $14.4 million for the year ended December 31,
2025. The details of the average annualized distribution rates and total net returns are shown in the following table:

---

| | |
|:---|:---|
|  | **As of<br>December 31,<br>2025** |
|  Average Annualized Distribution Rate | 4.7% |
|  Year-to-Date Total Return | 7.0% |
|  Inception-to-Date Total Return | 9.5% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The annualized distribution rate is calculated by averaging each of the four quarters' annualized
distribution, divided by the prior quarter's NAV, which is inclusive of all fees and expenses. The Company believes the annualized distribution rate is a useful measure of the Company's overall investment performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Total return is calculated as the change in NAV per Share during the respective periods plus any distributions
per Share declared in the period, and assumes any distributions are reinvested under the DRIP. Total return for periods greater than one year are annualized. The Company believes total return is a useful measure of its overall investment
performance.

<u>Investments</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company acquired 4 additional real estate investments during the year ended December 31, 2025 for an
aggregate net purchase price of $132.1 million, inclusive of acquisition-related costs.

<u>Capital Activity</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company raised $125.1 million from the sale of Shares exclusive of the DRIP during the year ended
December 31, 2025.

<u>Current Portfolio</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's portfolio as of December 31, 2025, based on the gross asset value of its investments,
consisted of investments in real estate (96%), investments in real estate debt (4%), and investments in real estate securities (0%). Gross asset value is measured as the fair value of the Company's real estate and other investments, net of non-controlling interests in joint ventures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's total real estate portfolio, including wholly owned property investments and the
Company's share of property investments held through joint ventures, based on fair value as of December 31, 2025, consisted of Industrial (41%), Retail (33%), Residential (21%), and Other (5%), and was concentrated in the following U.S.
regions: East (40%), West (33%) and South (27%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Company's investments in real estate debt as of December 31, 2025, consisted of CMBS. For further
details on credit rating and underlying real estate collateral, refer to "Investment Portfolio – Investments in Real Estate Debt" below.

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**Investment Portfolio** 

*Portfolio Summary* 

The following chart allocates the Company's investments in real estate and real estate debt based on fair value as of December 31, 2025:

![LOGO](g91905g01a01.jpg)

*Real Estate Investments* 

The following charts further describe the diversification of the Company's investments in real estate based on fair value as of December 31, 2025:

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| | |
|:---|:---|
| ![LOGO](g91905g02a02.jpg) | ![LOGO](g91905g03a03.jpg) |

---

(1) Real estate investments include wholly owned property investments and the Company's share of property
investments held through joint ventures. Real estate debt includes the Company's investments in CMBS. Property type weighting is measured as the asset value of real estate investments for each sector category divided by the asset value of all
real estate investments, excluding the value of any third party interests in such real estate investments. Property regions represent regions as defined by the National Council of Real Estate Investment Fiduciaries ("NCREIF") and the
weighting is measured as the asset value of real estate properties for each regional category divided by the asset value of all real estate properties, excluding the value of any third party interests in such real estate properties.

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The following table provides a summary of the Company's portfolio by property type as of December 31, 2025:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Property**<br> **Type** | **Number<br>of<br>Properties** | **Sq. Feet /**<br>**Units** | **Occupancy** <br>**Rate<sup>(1)</sup>** | **Gross Asset**<br>**Value<sup>(2)</sup>** | **Property Type Revenue<sup>(3)</sup><br>For the Year Ended<br>December 31,** | **Property Type Revenue<sup>(3)</sup><br>For the Year Ended<br>December 31,** |
| **Property**<br> **Type** | **Number<br>of<br>Properties** | **Sq. Feet /**<br>**Units** | **Occupancy** <br>**Rate<sup>(1)</sup>** | **Gross Asset**<br>**Value<sup>(2)</sup>** | **2025** | **2024** |
|  Industrial | 5 | 1,096,320 sq. ft. | 100% | 186950000 | 10965234 | 9946297 |
|  Retail | 4 | 683,183 sq. ft. | 98% | 150780415 | 12505530 | 8270277 |
|  Residential | 3 | 213 units | 92% | 98528016 | 5685764 | 3017509 |
|  Other | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1 | 60,192 sq. ft. | 100% | 21450000 | 2280113 | 2138930 |
|  Total | 13 |  |  | 457708431 | 31436641 | 23373013 |

---

(1) The occupancy rate for the Company's Industrial, Retail, and Other investments is defined as all leased
square footage divided by the total available square footage as of December 31, 2025. The occupancy rate for the Company's Residential investments is defined as the number of leased units divided by the total unit count as of
December 31, 2025.

(2) Based on fair value as of December 31, 2025, net of non-controlling interests in joint ventures.

(3) Property type revenue is determined in accordance with GAAP for the year ended December 31, 2025 and
includes the Company's share of revenues generated by property investments held through joint ventures.

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*Real Estate* 

The following table provides additional information regarding the Company's real estate portfolio as of December 31, 2025:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Property Type and<br>Investment** | **Number of<br>Properties** | **Location** | **Acquisition**<br>**Date** | **Ownership<br>Interest<sup>(1)</sup>** | **Sq. Feet / Units** | **Occupancy<br>Rate<sup>(2)</sup>** |
|  *Industrial* |  |  |  |  |  |  |
|  Chandler Crossroads I | 1 | Chandler, AZ | February 21, 2023 | 100% | 100,243 sq. ft. | 100% |
|  Chandler Crossroads II | 1 | Chandler, AZ | February 21, 2023 | 100% | 116,079 sq. ft. | 100% |
|  Northmark Commerce Center | 1 | Haltom City, TX | December 1, 2023 | 100% | 234,478 sq. ft. | 100% |
|  Thurmon Tanner Logistics Center A | 1 | Flowery Branch, GA | February 1, 2024 | 100% | 447,120 sq. ft. | 100% |
|  85 Exchange Building F | 1 | Concord, NC | November 12, 2025 | 100% | 198,400 sq. ft. | 100% |
|  Total Industrial | 5 |  |  |  | 1,096,320 sq. ft. |  |
|  *Retail* |  |  |  |  |  |  |
|  Trails at Silverdale | 1 | Silverdale, WA | November 2, 2023 | 90% | 225,711 sq. ft. | 99% |
|  Riverway Plaza | 1 | Weymouth, MA | June 27, 2024 | 100% | 250,572 sq. ft. | 100% |
|  Independence Square | 1 | Plano, TX | March 27, 2025 | 100% | 140,218 sq. ft. | 95% |
|  Gold Star Crossing | 1 | Worcester, MA | December 22, 2025 | 100% | 66,682 sq. ft. | 100% |
|  Total Retail | 4 |  |  |  | 683,183 sq. ft. |  |
|  *Residential* |  |  |  |  |  |  |
|  Millside at Heritage Park | 1 | Canton, MA | February 3, 2023 | 100% | 60 units | 97% |
|  Sylva on Main | 1 | Bellevue, WA | September 12, 2024 | 90% | 76 units | 89% |
|  3200 Washington | 1 | Boston, MA | July 29, 2025 | 100% | 77 units | 90% |
|  Total Residential | 3 |  |  |  | 213 units |  |
|  *Other* |  |  |  |  |  |  |
|  Creekstone | 1 | Durham, NC | May 25, 2023 | 100% | 60,192 sq. ft. | 100% |
|  Total Other | 1 |  |  |  | 60,192 sq. ft. |  |
|  Total Investments in Real Estate | 13 |  |  |  |  |  |

---

(1) The Company's joint venture agreements provide the joint venture partners a profits interest based on
achieving certain internal rate of return hurdles. Such investments are consolidated by the Company and any profits interest due to joint venture partners are reported within non-controlling interests.

(2) The occupancy rate for the Company's Industrial, Retail, and Other investments is defined as all leased
square footage divided by the total available square footage as of December 31, 2025. The occupancy rate for the Company's Residential investments is defined as the number of leased units divided by the total unit count as of
December 31, 2025.

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*Lease Expirations* 

The following table details the expiring leases at the Company's consolidated Industrial, Retail, and Other properties by annualized base rent and square footage as of December 31, 2025. The table excludes residential properties as substantially all leases at such properties expire within 12 months.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year** | **Number of<br>Expiring Leases** | **Annualized<br>Base Rent** | **% of Total Annualized<br>Base Rent Expiring** | **Square Feet** | **% of Total Square<br>Feet Expiring** |
| 2026 | 9 | 1295489 | 6% | 98886 | 5% |
| 2027 | 16 | 2421173 | 11% | 170331 | 9% |
| 2028 | 9 | 2667232 | 12% | 298792 | 16% |
| 2029 | 9 | 892248 | 4% | 44819 | 3% |
| 2030 | 12 | 2078641 | 9% | 144247 | 8% |
| 2031 | 9 | 3554670 | 16% | 121956 | 7% |
| 2032 | 10 | 1587590 | 7% | 200093 | 11% |
| 2033 | 5 | 5738178 | 25% | 517892 | 29% |
| 2034 | 2 | 1973957 | 9% | 202070 | 11% |
| 2035 | 3 | 210780 | 1% | 12800 | 1% |
|  Thereafter | 2 |  | 0% | 4545 | 0% |
|  Total | 86 | 22419958 | 100% | 1816431.00 | 100% |

---

(1) Annualized base rent is determined based on the annualized base rent per leased square foot as of
December 31, 2025, and excludes tenant recoveries, straight-line rent, and above-market and below-market lease amortization.

*Investments in Real Estate Debt* 

The following charts describe the diversification of the Company's investments in real estate debt by credit rating and collateral type, based on fair value as of December 31, 2025:

---

| | |
|:---|:---|
| ![LOGO](g91905g00a01.jpg) | ![LOGO](g91905g00a02.jpg) |

---

(1) Includes the Company's investments in real estate debt. BBB represents credit ratings of BBB+, BBB, and BBB-. BB represents credit ratings of BB+, BB, and BB-.

Please see Note 6 – "Investments in Real Estate Debt, at Fair Value" to the consolidated financial statements included in this Registration Statement for details on the Company's investments in real estate debt.

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**Results of Operations** 

The following table sets forth information regarding the Company's consolidated results of operations for the year ended December 31, 2025 and 2024:

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
|  **Revenues** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue from leases | $32410787 | $24158172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total revenues** | $32410787 | $24158172 |
|  **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rental property operating | $8786589 | $5567315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General & administrative | 2726609 | 1997113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fee | 3001402 | 1927298 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performance participation allocation |  | 2731835) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incentive fee | 2873858 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation & amortization | 19123158 | 11853933 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total expenses** | $36511616 | $24077494 |
|  **Other income (expense)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized gain (loss) on real estate securities | $13213 | $5091 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in unrealized gain (loss) on real estate securities | (25650) | 16394) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in unrealized gain (loss) on real estate debt | (13624) | —) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (9016553) | (6893012) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend & interest income | 3513448 | 1425586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total other income (expense)** | $(5529166) | $(5445941) |
|  **Total net income (loss) attributable to Fidelity Core Real Estate Fund** | $(9629995) | $(5365263) |
|  Net income (loss) attributable to redeemable non-controlling interests in consolidated joint ventures | (396079) | (67929) |
|  **Net income (loss) attributable to common shareholders** | $(9233916) | $(5297334) |
|  **Net income (loss) per share of common stock - basic & diluted** | $(0.35) | $(0.30) |
|  **Weighted-average shares of common stock outstanding, basic & diluted** | 26145231 | 17481192 |

---

*Revenues* 

During the year ended December 31, 2025, revenue from leases increased $8.3 million as compared to the year ended December 31, 2024. The increase can primarily be attributed to a higher average investments in real estate balance as a result of property acquisitions as well as an increase in average rental rates across the Company's portfolio.

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*Expenses* 

During the year ended December 31, 2025, rental property operating expenses increased $3.2 million as compared to the year ended December 31, 2024. The increase can primarily be attributed to a higher average investments in real estate balance as a result of property acquisitions.

During the year ended December 31, 2025, general & administrative expenses increased $0.7 million as compared to the year ended December 31, 2024. The increase can primarily be attributed to an increase in property management fees, property management payroll, and audit fees.

During the year ended December 31, 2025, the management fee payable to the Investment Manager increased $1.1 million compared to the year ended December 31, 2024. The increase is due to a higher average NAV during the year ended December 31, 2025 as compared to the year ended December 31, 2024.

Effective January 1, 2025, the Company and the Operating Partnership amended their respective operating documents to replace the performance participation allocation to the Special Limited Partner (as defined below) with an Incentive Fee payable to the Investment Manager. The Incentive Fee is calculated in a manner consistent with the previous performance participation allocation to the Special Limited Partner, as disclosed in Note 11 — "Related Party Transactions" to the Company's consolidated financial statements included in this Registration Statement. For additional information, see also "Item 7. Certain Relationships and Related Transactions, and Trustee Independence—Investment Manager." The increase of $0.1 million between the performance participation allocation and the Incentive Fee during the year ended December 31, 2025 as compared to the year ended December 31, 2024 can be attributed to a larger total return driven by a higher average NAV.

During the year ended December 31, 2025, depreciation & amortization expenses increased $7.3 million as compared to the year ended December 31, 2024. The increase can primarily be attributed to a higher average investments in real estate balance as a result of property acquisitions.

*Other Income (Expense)* 

During the year ended December 31, 2025, interest expense increased $2.1 million as compared to the year ended December 31, 2024. The increase is primarily due to additional property mortgage borrowings.

During the year ended December 31, 2025, dividend & interest income increased $2.1 million as compared to the year ended December 31, 2024. The increase can primarily be attributed to interest earned on higher average money market balances as well as interest earned on initial investments in real estate debt.

During the year ended December 31, 2025, total other expenses increased $0.05 million as compared to the year ended December 31, 2024. The increase was primarily driven by an increased unrealized loss on real estate securities and real estate debt.

**Liquidity and Capital Resources** 

*Liquidity* 

The Company believes it has sufficient liquidity to operate its business, with $85.9 million of liquidity as of December 31, 2025. When the Company refers to its liquidity, this includes amounts available under its undrawn revolving credit facility of $50 million as well as unrestricted cash and investments in money market funds of $35.9 million. The Company also generates incremental liquidity through its operating cash flows, which were $10.9 million for the year ended December 31, 2025. The Company may also generate incremental liquidity through the sale of its real estate debt investments, which were carried at their estimated fair value of $19.3 million as of December 31, 2025.

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In addition, the Company's leverage ratio was 24% as of December 31, 2025. The Company can generate additional liquidity through incurring additional indebtedness secured by its real estate and real estate debt investments, unsecured financings, and other forms of indebtedness. The Company's leverage ratio is measured by dividing (i) consolidated property-level (consisting of mortgages secured by real properties) and entity-level (consisting of the Company's line of credit) debt net of cash and debt-related restricted cash, by (ii) the asset value of real estate investments (measured using the greater of fair market value and cost) plus the equity in settled real estate debt and real estate related investments. All of the above components of the leverage ratio are net of non-controlling interests in joint ventures.

In addition to the Company's current liquidity, the Company obtains incremental liquidity through the sale of Shares in its continuous private offering, from which it has received cumulative proceeds of $365.0 million as of March 31, 2026. 

*Capital Resources* 

As of December 31, 2025, the Company's indebtedness included loans secured by its properties and an unsecured revolving credit facility. The following table sets forth a summary of the Company's indebtedness as of December 31, 2025, all components of which are net of non-controlling interests in joint ventures:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **Principal Balance as of** | **Principal Balance as of** |
| **Indebtedness** | **Weighted<br>Average<br>Interest Rate** | **Weighted**<br>**Average Maturity Date** | **Maximum<br>Facility Size** | **December 31,<br>2025** | **December 31,<br>2024** |
|  *Fixed rate loans secured by the Company's properties:* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fixed rate mortgages | 5.22% | September 20, 2031 | N/A | $148194590 | $134694590 |
|  Total loans secured by the Company's properties |  |  |  | 148194590 | 134694590 |
|  *Secured financings of investments in real estate debt:* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Secured financings of investments in real estate debt |  |  |  |  |  |
|  *Unsecured loans:* |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Affiliate revolving credit facility | 6.07% | January 27, 2026 | $50000000 |  |  |
|  Total unsecured loans |  |  | $50000000 |  |  |
|  Total indebtedness |  |  |  | $148194590 | $134694590 |

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*Capital Uses* 

The Company primarily uses its capital from the sale of Shares to acquire investments, which it also funds with other capital resources. The Company continues to believe that its current liquidity position is sufficient to meet the needs of its business over the next 12 months. In addition, the Company may have other funding obligations, which it expects to satisfy with the cash flows generated from its investments and capital resources described above. Such obligations may include distributions to its shareholders, operating expenses, capital expenditures, repayment of indebtedness, and debt service on its outstanding indebtedness. The Company's operating expenses include, among other things, the Management Fee and Incentive Fee (as defined below) it pays to the Investment Manager, both of which will impact the Company's liquidity to the extent the Investment

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Manager elects to receive such payments in cash, or subsequently redeem Shares previously issued to it. To date, the Investment Manager has always elected to receive the Management Fee in Shares, resulting in a non-cash expense.

**Cash Flows** 

The following table provides a breakdown of the net change in the Company's cash and cash equivalents and restricted cash:

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
|  Cash flows provided by operating activities | $10941636 | $9058456 |
|  Cash flows used in investing activities | (147247815) | (119454378) |
|  Cash flows provided by financing activities | 135063890 | 112878122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase (decrease) in cash and restricted cash | $(1242289) | $2482200 |

---

Cash flows provided by operating activities increased $1.9 million during the year ended December 31, 2025, compared to the year ended December 31, 2024, primarily due to operations related to acquisitions of investments in real estate.

Cash flows provided by investing activities decreased $27.8 million during the year ended December 31, 2025, compared to the year ended December 31, 2024. The increase was primarily due to acquisitions of investments of real estate as well as investments in real estate debt, partially offset by an increase in proceeds from money market funds and a reduction in capital improvements.

Cash flows used in financing activities increased $22.2 million during the year ended December 31, 2025, compared to the year ended December 31, 2024. The increase was primarily due to increased proceeds from the sale of Shares partially offset by decreased proceeds from mortgages.

**Critical Accounting Policies and Estimates** 

The preparation of the Company's financial statements in accordance with GAAP involves significant judgments and assumptions and require estimates about matters that are inherently uncertain. These judgments will affect the Company's reported amounts of assets and liabilities and its disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. With different estimates or assumptions, materially different amounts could be reported in the Company's consolidated financial statements. The following is a summary of the Company's accounting policies and estimates that it believes are the most critical, as they are affected by significant judgments, estimates, and assumptions. See Note 2 to the Company's consolidated financial statements included in this Registration Statement for further descriptions of the below accounting policy.

*Purchase Price Allocation of Acquired Real Estate* 

Upon acquisition of a property, the Company assesses the fair value of acquired tangible and intangible assets and liabilities (including building and improvements, land and land improvements, furniture, fixtures and equipment, above-market leases, below-market leases, in place tenant leases, leasing commissions, and legal and marketing) and allocates the purchase price to the acquired assets and assumed liabilities. The cost of the acquisition is then allocated to the assets acquired and liabilities assumed based on their relative fair values. The most significant portion of the allocation is typically to building and land and requires the use of market based estimates and assumptions. The Company estimates building fair value utilizing a cost approach, which assesses

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a buildup of characteristics including class and quality of the property type, replacement cost of a new property, inclusive of indirect and entrepreneurial costs and compares that to a "go-dark" approach which requires market rate estimates and/or capitalization rates, as well as other available market information. Estimates are based on a number of factors including known and anticipated trends and market and economic conditions. The Company generally uses a sales comparison approach when estimating land fair value, by evaluating recent sales transactions in the market and making adjustments for certain characteristics such as market conditions, timing and possible appreciation, and location.

The fair value of other tangible assets of an acquired property considers a market rate per square foot for improvements and applies that rate to the square footage of the acquired property.

The Company also considers an allocation of purchase price of other acquired intangibles, including acquired in-place leases that are based on the Company's evaluation of the specific characteristics of each tenant's lease. Factors to be considered include various market leasing assumptions such as market rent, market expenses, downtime assumptions, and expectations of lease renewals.

Acquired above-market and below-market leases are recorded at their fair values (using a discount rate which reflects the risks associated with the leases acquired) equal to the difference between (1) the contractual amounts to be paid pursuant to each in place lease and (2) management's estimate of fair market lease rates for each corresponding in place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed rate renewal options for below-market leases. Other intangible assets acquired include amounts for leasing commissions, legal and other related costs during hypothetical expected lease-up periods. A change in any of the assumptions above, which are subjective, could have a material impact on the Company's results of operations.

The allocation of the purchase price directly affects the following in the Company's consolidated financial statements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amount of purchase price allocated to the various tangible and intangible assets and liabilities on the
Company's Consolidated Balance Sheets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amounts allocated to the value of above-market and below-market lease values are amortized to rental income
over the remaining non-cancelable terms of the respective leases. The amount allocated to the value of debt premium (discount) is amortized to interest expense over the respective debt term. The amounts
allocated to all other tangible and intangible assets are recognized in depreciation or amortization expense. Thus, depending on the amounts allocated between land and other depreciable assets, changes in the purchase price allocation among the
Company's assets could have a material impact on net income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The period of time over which tangible and intangible assets are depreciated varies greatly, and thus, changes in
the amounts allocated to these assets will have a direct impact on the Company's results of operations. Intangible assets are generally amortized over the respective life of the leases. The Company depreciates its buildings over a maximum of
40 years, but does not depreciate land. These differences in timing could have a material impact on results of operations.

**Recent Accounting Pronouncements** 

See Note 2 — "Significant Accounting Policies" to the Company's consolidated financial statements included in this Registration Statement for a discussion concerning recent accounting pronouncements.

**Quantitative and Qualitative Disclosures About Market Risk** 

*Interest Rate Risk* 

The Company is exposed to interest rate risk with respect to its variable-rate indebtedness; generally an increase in interest rates would directly result in higher interest expense. The only variable rate indebtedness the Company has entered into is its revolving line of credit, which had $0 outstanding at December 31, 2025.

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*Investments in Real Estate Debt* 

As of December 31, 2025, the Company held $19.3 million of investments in real estate debt on its Consolidated Balance Sheet. The Company's investments in real estate debt are primarily floating-rate and are indexed to various benchmark rates, and as such, exposed to interest rate risk. The Company's net income will increase or decrease depending on interest rate movements. While the Company cannot predict factors that may or may not affect interest rates, a 10 basis point increase or decrease in the various benchmark rates would have resulted in an increase or decrease to dividend & interest income of $19,285 for the year ended December 31, 2025.

The Company may also be exposed to market risk with respect to its investments in real estate debt due to changes in the fair value of those investments. The Company seeks to manage its exposure to market risk with respect to its investments in real estate debt by making investments in real estate debt backed by different types of collateral and varying credit ratings. The fair value of these investments may fluctuate, therefore the amount the Company will realize upon any sale of its investments in real estate debt is unknown.

**Item 3. Properties** 

For an overview of the Company's real estate investments, see "Item 2. Financial Information—Management's Discussion and Analysis of Financial Condition and Results of Operations—Investment Portfolio."

The Company's principal executive and administrative offices are located at 245 Summer Street, Boston MA 02210. The Company considers these facilities to be suitable and adequate for the management and operations of its business.

**Item 4. Security Ownership of Certain Beneficial Owners and Management** 

The following table shows, as of March 31, 2026, the amount of Shares beneficially owned (unless otherwise indicated) by: (1) any person who is known by the Company to be the beneficial owner of more than 5% of the outstanding Shares; (2) the Trustee; (3) each of the Company's executive officers; and (4) all of the Company's executive officers and the Trustee in the aggregate. Unless otherwise noted below, the address for each of the persons or entities named in the following table is 245 Summer Street, Boston Massachusetts, 02210.

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| | | |
|:---|:---|:---|
| | **Shares** | **Shares** |
| | **Beneficially Owned<sup>(1)</sup>** | **Beneficially Owned<sup>(1)</sup>** |
|  | **Number of<br>Shares** | **Percentage of**<br>**Total Shares** |
|  **Trustee and Executive Officers** |  |  |
|  Fidelity CRET Trustee LLC |  |  |
|  Ellen Hall | 5050.790 | \* |
|  Karen R. Korn | 86433.162 | \* |
|  Simon Fisk <sup>(2)</sup> |  |  |
|  Heather Bonner |  |  |
|  All executive officers and Trustee as a group (5 persons) | 91483.952 | \* |
|  **Greater than 5.0% Shareholders** |  |  |
|  FMR Capital, Inc. | 1727126.646 | 5.17% |

---

\* Less than 1% of the outstanding Shares. 

(1) Beneficial ownership is determined in accordance with the rules of the SEC. Under SEC rules, a person is deemed
to be a "beneficial owner" of a security if that person has or shares "voting power," which includes the power to vote, or to direct the voting of, such security, or "investment power," which includes the right

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to dispose of or to direct the disposition of such security. A person also is deemed to be a beneficial owner of any securities which that person has a right to acquire within 60 days. Except as otherwise indicated by footnote, and subject to community property laws where applicable, the persons named in the table above have sole voting and investment power with respect to all Shares shown as beneficially owned by them.

(2) Mr. Fisk's address is 25 Cannon Street London, EC4M 5SB Great Britain.

**Item 5. Trustees and Executive Officers** 

**Trustee** 

The Company operates under the direction of its sole Trustee, Fidelity CRET Trustee LLC. Except as set forth in the Declaration of Trust, the Trustee has exclusive and absolute power, control and authority over the Company's business, affairs and property, and its shareholders shall have no right to participate in or exercise control or management power over its business and affairs. Pursuant to the Investment Management Agreement, the Trustee has delegated to the Investment Manager the authority to, among other things, source, evaluate and monitor investment opportunities and negotiate and execute upon the acquisition, management, financing and disposition of its assets, subject in all cases to the terms of the Declaration of Trust, applicable law and the ultimate oversight of the Trustee.

The Trustee will serve until its resignation or removal in accordance with the terms of the Declaration of Trust. The Trustee may resign, effective upon delivery of notice of such resignation to the Trust, or at any future date specified in the resignation. In connection with its resignation, the Trustee may appoint its successor.

Pursuant to the Declaration of Trust, following the occurrence of a Cause Event (as defined below), the Company's shareholders will have the right to remove the Trustee as its sole trustee upon the affirmative vote or consent of the Company's shareholders holding at least 75% of the issued and outstanding Shares not held by the Trustee, the Investment Manager, FMR and their respective subsidiaries, executives, employees, owners, officers and affiliates (and the family members and estate planning vehicles of the foregoing persons) ("Fidelity Persons").

A "Cause Event" is defined by the Declaration of Trust as the entry of a final, non-appealable judgment, verdict or order by any court or governmental body of competent jurisdiction that either the Trustee or Investment Manager has committed acts or omissions in connection with the performance of their respective duties that constitute fraud, bad faith, willful misconduct or gross negligence. The removal of the Trustee by the Company's shareholders will constitute a Dissolution Event under its Declaration of Trust upon which it will be dissolved and terminated; *provided, however*, that no Dissolution Event will be deemed to have occurred, and the Company will not be required to be dissolved and terminated, by reason of such a removal of the Trustee if, within 90 days after the date of such removal, shareholders entitled to cast at least a majority of the votes entitled to be cast and not held by Fidelity Persons agree to continue the business of the Company and to the election, effective as of the date of such removal, of a replacement trustee.

**Executive Officers** 

The Trustee may, from time to time, appoint, remove and replace the Company's officers, to serve at the pleasure of the Trustee, with such powers and duties as the Trustee may determine. The Company's officers may include a chief executive officer, a president, one or more vice presidents, a chief financial officer, a treasurer, a secretary, and such other officers with such powers and duties as the Trustee may deem necessary or desirable. Any officer or agent of the Trust may be removed and replaced, with or without cause, by the Trustee.

The Company's executive officers will act as its agents, execute contracts and other instruments in its name and on the Company's behalf, and in general perform all duties incident to their offices and such other duties as may be prescribed by the Trustee from time to time. The Company's executive officers will devote such portion of their time to its affairs as is required for the performance of their duties, but they are not required to devote all of their time to the Company.

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Each of the Company's current executive officers is also an executive officer of the Trustee and an employee of FMR, an affiliate of the Investment Manager.

Information regarding the Company's current executive officers is set forth below.

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| | | |
|:---|:---|:---|
| **Name** | **Age<sup>(1)</sup>** | **Position** |
|  Ellen Hall | 54 | President |
|  Karen R. Korn | 63 | Vice President |
|  Simon Fisk | 64 | Vice President |
|  Heather Bonner | 48 | Treasurer |

---

(1) As of April 17, 2026.

*Ellen Hall*. Ms. Hall has served as the Company's President and as the President of the Trustee since 2022. Ms. Hall has served as the Company's interim Portfolio Manager since November 2025 and as the Company's lead Portfolio Manager since January 2026. Ms. Hall joined Fidelity in 2020 as Head of Direct Real Estate. Ms. Hall has over 25 years of real estate investment experience and has led several multinational ventures. She brings a functional expertise in developing, acquiring, and divesting properties and assets in industrial, logistics, data center and multi-family categories. Prior to joining Fidelity, Ms. Hall was Global Head of Real Estate Investment and Corporate Development at Iron Mountain from 2015 to 2019 and previously held executive roles at Prologis and its legacy acquired entity, AMB Property Corporation, from 1998 to 2015. She also serves as a Non-Executive Director at Grosvenor Property Americas. Ms. Hall received a B.S. from Boston University and an M.B.A from the University of Cambridge.

*Karen R. Korn*. Ms. Korn has served as the Company's Vice President and as a Vice President of the Trustee since 2022. Ms. Korn leads the Alternative Product Group at Fidelity where she oversees all aspects of product design, investing, and distribution. She has over 30 years of investment experience and has been associated with Fidelity since 2005 in a variety of investment leadership roles including Managing Director of Research in the Equity Division, Head of Fundamental Research in Fidelity's Strategic Advisers' managed account division, and Head of Investment Services, which provides investment-related support for Fidelity's retirement offerings. Prior to Fidelity, Ms. Korn was a Principal and Director of Research for Essex Investment Management Company from 2001 to 2005, and held a variety of positions at Putnam Investments from 1994 to 2001 and PaineWebber, Inc. from 1988 to 1993. Ms. Korn received a B.A. from Barnard College and an M.B.A. from Harvard Business School.

*Simon Fisk*. Mr. Fisk has served as the Company's Vice President and as a Vice President of the Trustee since 2022. Mr. Fisk is the Head of Direct Real Estate Finance and Operations at Fidelity in its Alternative Investments Real Estate Group where he oversees the finance team of the private real estate fund products. Mr. Fisk was previously a Managing Director of Pembroke Real Estate, LLC ("Pembroke") and also served for several years as Pembroke's Chief Financial Officer. His responsibilities included overseeing strategy and investment at Pembroke and supporting senior leadership in management of the company. Mr. Fisk joined Pembroke in 2008 after a career in both commercial and investment banking, where he specialized in capital markets and corporate advisory work for real estate companies and corporate clients with operational real estate. Mr. Fisk received an L.L.B. from University College London and is an FCT (Fellow of the Association of Corporate Treasurers).

*Heather Bonner.* Ms. Bonner has served as the Company's Treasurer and as the Treasurer of the Trustee since 2024. Ms. Bonner serves as a Senior Vice President at Fidelity and also serves as Vice President, Treasurer, or Assistant Treasurer of certain Fidelity-affiliated entities. Prior to joining Fidelity in 2022, Ms. Bonner served as Managing Director at AQR Capital Management from 2013 to 2022 and was the Treasurer and Principal Financial Officer of the AQR Funds from 2013 to 2022. Ms. Bonner received a B.S. from Boston College and is a Certified Public Accountant. 

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**Item 6. Executive Compensation** 

**Compensation of the Company's Executive Officers** 

The Company is externally managed by the Investment Manager. The Company does not currently have any employees nor does it currently intend to hire any employees who will be compensated directly by the Company. The Company's executive officers are not its employees and do not receive any compensation of any type from the Company for services rendered to it as its executive officers. Each of the Company's executive officers serves as an officer of the Trustee and is an employee of FMR, an affiliate of the Investment Manager, and receives compensation for his or her services from such entity. The Company does not reimburse its Trustee or its affiliates for compensation any such entities pay to its executive officers. Furthermore, the Company does not have employment agreements with its executive officers, it does not provide pension or retirement benefits, perquisites or other personal benefits to its executive officers, its executive officers have not received any nonqualified deferred compensation and it does not have arrangements to make payments to its executive officers upon their termination or in the event of the Company's change in control.

Although the Company does not pay its executive officers any compensation, it pays the Investment Manager and its affiliates the fees described in "Item 7. Certain Relationships and Related Transactions, and Trustee Independence—Investment Manager."

**Compensation of the Company's Trustee** 

The Company is governed by its sole Trustee. The Trustee does not receive any compensation of any type from the Company.

**Compensation Committee Interlocks and Insider Participation** 

The Company currently does not have a compensation committee or equivalent body or position because it currently does not, and does not plan to, pay any compensation to its officers. There are no interlocks or insider participation as to compensation decisions required to be disclosed pursuant to SEC regulations.

**Item 7. Certain Relationships and Related Transactions, and Trustee Independence** 

**Investment Manager** 

***Overview***

The Company is externally managed by the Investment Manager. Pursuant to the Investment Management Agreement, the Trustee has delegated to the Investment Manager the authority to, among other things, source, evaluate and monitor investment opportunities and negotiate and execute upon the acquisition, management, financing and disposition of the Company's assets, subject in all cases to the terms of the Declaration of Trust, applicable law and the ultimate oversight of the Trustee.

Pursuant to the Investment Management Agreement, the Investment Manager has authority to engage and supervise, on the Company's and the Operating Partnership's behalf and at its and Operating Partnership's expense, independent contractors, advisors, consultants, attorneys, accountants, administrators, auditors, appraisers and other service providers (which may include affiliates of the Investment Manager) that provide various services with respect to the Company and the Operating Partnership.

The Investment Manager will refrain from any action that, in its sole good faith judgment, (i) is not in compliance with the Company's investment strategy and objectives, (ii) would adversely and materially affect

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the Company's qualification as a REIT under the Code or the Operating Partnership's status as entities excluded from investment company status under the Investment Company Act, or (iii) would materially violate any law, rule or regulation of any governmental body or agency having jurisdiction over the Company and the Operating Partnership or that would otherwise not be permitted by the Declaration of Trust or the Operating Partnership Agreement.

***Services***

Pursuant to the Investment Management Agreement, the Investment Manager is responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• serving as an advisor to the Company and the Operating Partnership with respect to the establishment and periodic
review of the Company's investment guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sourcing, evaluating and monitoring the Company's investment opportunities and executing the acquisition,
management, financing and disposition of its assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• with respect to prospective acquisitions, purchases, sales, exchanges or other dispositions of investments,
conducting negotiations on the Company's behalf with sellers, purchasers, and other counterparties and determining the structure and terms of such transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• providing portfolio management and other related services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• advising with respect to the Company's financings, borrowings or hedging activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• engaging and supervising, on the Company's behalf and at its expense, independent contractors, advisors,
consultants, attorneys, accountants, administrators, auditors, appraisers, independent valuation agents, escrow agents and other service providers (which may include affiliates of the Investment Manager);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• coordinating and managing operations of any joint venture or co-investment interests held by the Company and conducting matters with the joint venture or co-investment partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• taking all reasonable actions which the Investment Manager in good faith believes are appropriate to facilitate
the ongoing operation of the Company's assets in emergencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• granting options and exercising all rights, powers, privileges and other incidents of ownership or possession
with respect to all assets or investments held or owned by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• opening, maintaining and closing accounts, including margin and discretionary accounts, with brokers and/or
dealers, and paying commissions, fees and other charges applicable to transactions in all such accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and confirming the NAV per Share and overseeing the process around the calculation of the NAV per Share
as performed by the Administrator, and in connection therewith, among other things, obtaining appraisals performed by independent third party appraisal firms of the value of the Company's real properties, all in accordance with the
Company's valuation guidelines; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• doing such other acts and providing such other services as the Trustee may reasonably request or that the
Investment Manager may deem necessary or advisable under the particular circumstances or that are contemplated by the terms of the Declaration of Trust or the Operating Partnership Agreement.

***Management Fee***

Pursuant to the Investment Management Agreement, the Company pays the Investment Manager a management fee (the "Management Fee") equal to 1.0% of the Company's NAV per annum, calculated monthly and payable quarterly in arrears.

The Management Fee may be paid, at the Investment Manager's election, in either (i) cash, (ii) Shares with an aggregate value equivalent to the cash fee otherwise payable (based upon the then-current NAV per Share), or

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(iii) any combination of cash and Shares (with such Shares valued based upon the then-current NAV per Share). If the Investment Manager elects to receive any portion of its Management Fee in Shares, the Investment Manager may elect to have the Company repurchase such Shares from the Investment Manager at a later date. Shares held by the Investment Manager will not be subject to any repurchase limits, minimum holding periods or reduction or penalty for an early repurchase otherwise applicable pursuant to the terms of the of the SRP.

The Management Fee will cease to be payable upon any termination of the Investment Management Agreement; *provided, however*, that upon any termination of the Investment Management Agreement, the Company will promptly pay the Investment Manager any Management Fee on a pro-rated basis for such quarter though the effective date of such termination. The Investment Manager may, in its sole discretion, elect to waive all or a portion of the Management Fee.

For the years ended December 31, 2024 and 2025, the Company paid the Investment Manager Management Fees of $1.9 million and $3.0 million, respectively. For all such periods, the Investment Manager elected to receive the Investment Management Fees in the form of Shares with a value equivalent to the cash fee otherwise payable (with such Shares valued based upon the then-current NAV per Share), resulting in the issuance of an aggregate of 447,512 Shares to the Investment Manager.

***Offset Fees***

Pursuant to the Investment Management Agreement, each installment of the Management Fees otherwise payable to the Investment Manager will be reduced (but not below zero) by an amount (the "Offset Amount") equal to 100% of any Offset Fees (as defined below) received by the Trustee, the Investment Manager, any of their respective affiliates or any of their respective members, partners, shareholders, directors, principals and employees during the preceding fiscal quarter. If any such Offset Amounts exceeds the amount of the Management Fees then payable, then the amount of the excess will be carried forward and will reduce future installments of the Management Fees, provided that upon the Company's dissolution, any Offset Amount that has not been applied to offset shall be distributed by the Company to its shareholders. The Investment Management Agreement defines "Offset Fees" as any loan origination fees, collateral agent fees, directors fees, consulting fees, advisory fees, management fees, transaction fees, work fees, monitoring fees, closing fees, break-up fees, commitment fees, extension fees, exit fees or any other similar fees or remuneration of any kind or nature, whether in cash or in-kind, received from third parties in connection with an investment or potential investment; *provided, however*, that Offset Fees will not include (i) any Permitted Affiliate Fees (as defined below) and (ii) any management or similar fees received by an affiliate of the Investment Manager in connection with the Company's investments in money market funds.

The Investment Management Agreement defines "Permitted Affiliate Fees" as certain fees the Company pays to the Investment Manager's or Trustee's affiliates, including the Administrator (as defined below), for services relating to its investments or operations, which may include property management services, property accounting services and leasing services and fund administration services. The Investment Manager will seek to ensure that any such Permitted Affiliate Fees will be at or below market rates, and any Permitted Affiliate Fees paid with respect to property management services will be at rates usual and customary for comparable property management services rendered to similar properties in the geographic market of the property, as determined by the Investment Manager.

For the years ended December 31, 2024 and 2025, there were no Offset Amounts.

***Fund Incentive Fee***

Pursuant to the Investment Management Agreement, the Company will pay the Investment Manager an incentive fee (the "Fund Incentive Fee"), which shall accrue on a monthly basis, promptly following the end of each calendar year in an amount equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) First, if the Total Return (as defined below) for the applicable period exceeds the sum of (A) the Hurdle
Amount (as defined below) for that period and (B) the Loss Carryforward Amount (as defined below)

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(any such excess, "Excess Profits"), 100% of such Excess Profits until the total amount payable to the Investment Manager equals 12.5% of the sum of (x) the Hurdle Amount for that period and (y) any amount allocated to the Investment Manager pursuant to this clause; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Second, to the extent there are remaining Excess Profits, 12.5% of such remaining Excess Profits.

Any amount by which Total Return falls below the Hurdle Amount and that does not constitute Loss Carryforward Amount will not be carried forward to subsequent periods.

"Total Return" for any period since the end of the prior calendar year will equal the sum of: (i) all distributions accrued or paid (without duplication) on the Shares outstanding at the end of such period since the beginning of the then-current calendar year, plus (ii) the change in aggregate NAV of such Shares since the beginning of such year, before giving effect to (x) changes resulting solely from the proceeds of issuances of Shares, and (y) any allocation or accrual to the Fund Incentive Fee. For the avoidance of doubt, the calculation of Total Return will include any appreciation or depreciation in the NAV of Shares issued during the then-current calendar year but exclude the proceeds from the initial issuance of such Shares.

"Hurdle Amount" for any period during a calendar year means that amount that results in a 5.0% annualized internal rate of return on the NAV of the Shares outstanding at the beginning of the then-current calendar year and all Shares issued since the beginning of the then-current calendar year, taking into account the timing and amount of all distributions accrued or paid (without duplication) on all such Shares and all issuances of Shares over the period and calculated in accordance with recognized industry practices. The ending NAV of the Shares used in calculating the internal rate of return will be calculated before giving effect to any allocation or accrual to the Fund Incentive Fee, provided that the calculation of the Hurdle Amount for any period will exclude any Shares repurchased during such period, which Shares will be subject to the Fee upon such repurchase as described below.

"Loss Carryforward Amount" will initially equal zero and will cumulatively increase by the absolute value of any negative annual Total Return and decrease by any positive annual Total Return, provided that the Loss Carryforward Amount will at no time be less than zero and provided further that the calculation of the Loss Carryforward Amount will exclude the Total Return related to any Shares repurchased during such year, which Shares will be subject to the Fund Incentive Fee upon such repurchase as described below.

The Investment Manager will be entitled to a Fund Incentive Fee with respect to all Shares that are repurchased at the end of any quarter pursuant to the SRP in an amount calculated as described above with respect to the portion of the year for which such Shares were outstanding, and the proceeds for any such Shares repurchases will be reduced by the amount of any such Fund Incentive Fee.

The Fund Incentive Fee may be paid, at the Investment Manager's election, in (i) cash, (ii) Shares with an aggregate value equivalent to the cash fee otherwise payable (based upon the then-current NAV per Share), or (iii) any combination of cash and Shares (with such Shares valued based upon the then-current NAV per Share). If the Investment Manager elects to receive any portion of its Fund Incentive Fee in Shares, the Investment Manager may elect to have the Company repurchase such Shares from the Investment Manager at a later date. Such Shares held by the Investment Manager will not be subject to any repurchase limits, minimum holding periods or reduction or penalty for an early repurchase otherwise applicable pursuant to the terms of the SRP.

The Investment Manager will not be obligated to return any portion of the Fund Incentive Fee paid due to the Company's subsequent performance. The Investment Manager may, in its sole discretion, elect to waive all or a portion of the Fund Incentive Fee.

For the year ended December 31, 2025, the Investment Manager did not earn a Fund Incentive Fee.

***OP Incentive Fee***

Pursuant to the Investment Management Agreement, to the extent that the Operating Partnership issues partnership units to anyone other than the Company (such units, "OP Incentive Units"), it will pay, or will cause

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the Company's subsidiary to pay, the Investment Manager an incentive fee (the "OP Incentive Fee" and, together with the Fund Incentive Fee, the "Incentive Fee"), which will accrue on a monthly basis, promptly following the end of each calendar year in an amount equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) First, if the OP Total Return (as defined below) for the applicable period exceeds the sum of (A) the OP
Hurdle Amount (as defined below) for that period and (B) the OP Loss Carryforward Amount (as defined below) (any such excess, "OP Excess Profits"), 100% of such OP Excess Profits until the total amount payable to the Investment
Manager equals 12.5% of the sum of (x) the OP Hurdle Amount for that period and (y) any amount allocated to the Investment Manager pursuant to this clause; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Second, to the extent there are remaining OP Excess Profits, 12.5% of such remaining OP Excess Profits.

Any amount by which OP Total Return falls below the OP Hurdle Amount and that does not constitute OP Loss Carryforward Amount will not be carried forward to subsequent periods.

"OP Total Return" for any period since the end of the prior calendar year will equal the sum of: (i) all distributions accrued or paid (without duplication) on the OP Incentive Units outstanding at the end of such period since the beginning of the then-current calendar year, plus (ii) the change in aggregate net asset value of the Operating Partnership (the "OP NAV") of such OP Incentive Units since the beginning of such year, before giving effect to (x) changes resulting solely from the proceeds of issuances of OP Incentive Units, and (y) any allocation or accrual to the OP Incentive Fee. For the avoidance of doubt, the calculation of OP Total Return will include any appreciation or depreciation in the OP NAV of OP Incentive Units issued during the then-current calendar year but will exclude the proceeds from the initial issuance of such OP Incentive Units.

"OP Hurdle Amount" for any period during a calendar year means that amount that results in a 5.0% annualized internal rate of return on the OP NAV of the OP Incentive Units outstanding at the beginning of the then current calendar year and all OP Incentive Units issued since the beginning of the then-current calendar year, taking into account the timing and amount of all distributions accrued or paid (without duplication) on all such OP Incentive Units and all issuances of OP Incentive Units over the period and calculated in accordance with recognized industry practices. The ending OP NAV of the OP Incentive Units used in calculating the internal rate of return will be calculated before giving effect to any allocation or accrual to the OP Incentive Fee, provided that the calculation of the OP Hurdle Amount for any period will exclude any OP Incentive Units repurchased during such period, which OP Incentive Units will be subject to the OP Incentive Fee upon such repurchase as described below.

"OP Loss Carryforward Amount" will initially equal zero and will cumulatively increase by the absolute value of any negative annual OP Total Return and decrease by any positive annual OP Total Return, provided that the OP Loss Carryforward Amount will at no time be less than zero and provided further that the calculation of the OP Loss Carryforward Amount will exclude the OP Total Return related to any OP Incentive Units repurchased during such year, which OP Incentive Units will be subject to the OP Incentive Fee upon such repurchase as described below.

The Investment Manager will be entitled to an OP Incentive Fee with respect to all OP Incentive Units that are repurchased pursuant to the Operating Partnership Agreement calculated as described above with respect to the portion of the year for which such OP Incentive Units were outstanding, and the proceeds for any such unit repurchases will be reduced by the amount of any such OP Incentive Fee.

The OP Incentive Fee may be paid, at the Investment Manager's election, in (i) cash, (ii) Operating Partnership units with an aggregate value equivalent to the cash fee otherwise payable (based upon the then-current OP NAV), or (iii) any combination of cash and Operating Partnership units (with such units valued based upon the then-current OP NAV). If the Investment Manager elects to receive any portion of the OP Incentive Fee in Operating Partnership units, the Investment Manager may elect at a later date to have the Operating Partnership repurchase such units for cash unless the Trustee determines that any such repurchase for cash would be prohibited by applicable law or the Company's organizational documents, in which case such units will be repurchased for Shares with an equivalent aggregate NAV.

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The Investment Manager will not be obligated to return any portion of the OP Incentive Fee paid due to the subsequent performance of the Operating Partnership. The Investment Manager may, in its sole discretion, elect to waive all or a portion of the OP Incentive Fee.

For the year ended December 31, 2025, the Company paid the Investment Manager an OP Incentive Fee of $2.9 million.

***Performance Participation Allocation***

Prior to the amendment and restatement of the Operating Partnership Agreement and the Investment Management Agreement, each effective as of January 1, 2025, in order to provide for the Incentive Fee as discussed above, Fidelity CRET LP, an affiliate of the Investment Manager (the "Special Limited Partner"), was entitled to certain distributions from the Operating Partnership (the "Performance Participation Allocation"), as discussed below. The Performance Participation Allocation was paid for the year ended December 31, 2024. For the year ended December 31, 2025 and subsequent periods, the Investment Manager is compensated pursuant to the Incentive Fee (as discussed above).

The Performance Participation Allocation entitled the Special Limited Partner to receive, for so long as the Investment Management Agreement remained in effect, an allocation from the Operating Partnership equal to 12.5% of the Performance Participation Total Return, subject to a 5.0% Performance Participation Hurdle Amount and a high water mark, with a Performance Participation Catch-Up (each term as defined below). Such allocation was made and paid annually and accrued monthly. The Performance Participation Allocation entitled the Special Limited Partner to receive distributions from the Operating Partnership in an amount equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• First, if the Performance Participation Total Return for the applicable period exceeded the sum of (i) the
Performance Participation Hurdle Amount for that period and (ii) the Performance Participation Loss Carryforward Amount, if any, 100% of such excess profits until the total amount allocated to the Special Limited Partner equals 12.5% of the sum
of (x) the Performance Participation Hurdle Amount for that period and (y) any amount allocated to the Special Limited Partner pursuant to this clause (the "Performance Participation Catch-Up"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Second, to the extent there are remaining excess profits, 12.5% thereof.

"Performance Participation Total Return" for any period since the end of the prior calendar year equaled the sum of (i) all distributions accrued or paid (without duplication) on the Operating Partnership units outstanding at the end of such period since the beginning of the then-current calendar year, *plus* (ii) the change in aggregate NAV of such units since the beginning of the year, before giving effect to (x) changes resulting solely from the proceeds of issuances of Operating Partnership units, and (y) any allocation/accrual to the Performance Participation Allocation.

"Performance Participation Hurdle Amount" for any period during a calendar year meant that amount that resulted in a 5.0% annualized internal rate of return on the NAV of the Operating Partnership units outstanding at the beginning of the then-current calendar year and all Operating Partnership units issued since the beginning of the then-current calendar year, taking into account the timing and amount of all distributions accrued or paid (without duplication) on all such units and all issuances of Operating Partnership units over the period and calculated in accordance with recognized industry practices. The ending NAV of the Operating Partnership units used in calculating the internal rate of return was calculated before giving effect to any allocation/accrual to the Performance Participation Allocation.

"Performance Participation Loss Carryforward Amount" initially equaled zero and was cumulatively increased by the absolute value of any negative annual Performance Participation Total Return and decreased by any positive annual Performance Participation Total Return, provided that the Performance Participation Loss Carryforward Amount would at no time be less than zero.

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Distributions on the Performance Participation Allocation where payable in cash or Operating Partnership units at the election of the Special Limited Partner. To the extent that the Special Limited Partner elected to receive such distributions in Operating Partnership units, the Special Limited Partner may request the Operating Partnership to repurchase such Operating Partnership units from the Special Limited Partner at a later date, subject to the terms of the Operating Partnership Agreement.

For the year ended December 31, 2024, the Operating Partnership paid the Special Limited Partner a Performance Participation Allocation in the amount of $2.7 million. The Special Limited Partner elected to receive $10,000 worth of such Performance Participation Allocation in the form of 892 Operating Partnership units and the remainder in cash.

***Expenses***

<u>Investment Manager Expenses</u>. The Investment Manager bears and pays all normal operating costs and expenses incurred in connection with the management of the Investment Manager, without any right to reimbursement from the Company for such expenses. Such normal operating expenses borne by the Investment Manager include, without limitation, expenditures on account of salaries, wages, benefits and other expenses of employees of the Investment Manager, general overhead, utilities and rentals payable for space used by the Investment Manager, office supplies, expenses for clerical, bookkeeping services, office equipment expenses, and expenses for complying with the Advisers Act, and exclude salaries, wages and other personnel costs allocable to employees of the Investment Manager providing legal, tax, accounting and administrative services to us.

<u>O&O Expenses</u>. The Investment Manager and its affiliates advanced and paid on the Company's behalf all costs and expenses related to organizing and establishing the Company and the Operating Partnership and the offer and sale of Shares in its ongoing private offering ("O&O Expenses") through February 1, 2023, the date upon which the Company first sold Shares in its ongoing private offering of Shares (the "Initial Closing"). The Company reimbursed the Investment Manager and its affiliates for all of such advanced O&O Expenses in one or more payments following the Initial Closing. Following the Initial Closing, the Company reimburses the Investment Manager and its affiliates for all O&O Expenses incurred on the Company's behalf as and when such expenses are incurred.

For the years ended December 31, 2025 and 2024, the Investment Manager and its affiliates did not incur any O&O Expenses on the Company's behalf, and the Company did not reimburse the Investment Manager for any O&O Expenses.

<u>Operating Expenses</u>. Pursuant to the Investment Management Agreement and the Declaration of Trust, the Company will pay, directly or through reimbursement of the Investment Manager, the Trustee or their respective affiliates, all costs and expenses relating to the activities, operations and investments of the Company and the performance by the Investment Manager, the Trustee and their respective affiliates of their respective obligations to the Company and the Operating Partnership, excluding any fees covered in "Investment Manager Expenses" above (collectively, "Operating Expenses").

For the year ended December 31, 2025, the Investment Manager and its affiliates have incurred no material Operating Expenses on the Company's behalf, and the Company has not reimbursed the Investment Manager and its affiliates for any Operating Expenses.

***Term and Termination***

The Investment Management Agreement will remain in effect until the Company is terminated and dissolved in accordance with the terms of the Declaration of Trust; *provided, however*, that either the Company or the Investment Manager may terminate the Investment Management Agreement at any time upon not less than 75 days' prior written notice to the other party. In addition, the Investment Management Agreement will automatically terminate in the event that the Trustee or one of its affiliates ceases to be the Company's trustee.

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***Indemnification***

Pursuant to the Investment Management Agreement, the Company and the Operating Partnership will indemnify and hold harmless the Investment Manager and its affiliates and other related parties. For additional information, see "Item 12. Indemnification of Directors and Officers."

***Amendment***

The Investment Management Agreement may only be amended with the written approval of the Company, the Operating Partnership, and the Investment Manager.

***Assignment***

The Investment Manager may assign or transfer its rights and obligations under the Investment Management Agreement to an affiliate of the Investment Manager without the prior consent of the Company, its shareholders, the Operating Partnership or any partners of the Operating Partnership; *provided, however*, that any such assignment by the Investment Manager must comply with the Investment Advisers Act in all respects.

**Administrative Services Agreement** 

Fidelity Service Company, Inc., an affiliate of the Investment Manager, serves as the Company's administrator (the "Administrator"). The Administrator may delegate certain of its responsibilities to third parties, from time to time, but will ultimately be responsible for the Company's administration.

The Company pays the Administrator a quarterly administrative fee (the "Administrative Fee") as set forth in the table below. The Trustee reserves the right to change the fee upon at least 60 days' notice to the Company's shareholders (provided that no consent of the Company's shareholders will be required for any change to the Administrative Fee).

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| | |
|:---|:---|
| **Net Asset Value**<br> **(As Applicable)** | **Administrative Fee Rate**<br> **(Percentage of NAV per**<br> **Annum)** |
|  Up to $200 million | 0.08% |
|  Greater than $200 million to $400 million | 0.07% |
|  Greater than $400 million | 0.06% |

---

In addition, the Company may reimburse the Administrator for certain additional reconciliation, reporting, and out of pocket expenses (*i.e.*, online storage, mailings, etc.), the amount of which may fluctuate based on the Company's needs and activities. All such charges and fees, including the base Administrative Fee, will be borne by the Company and will not be included in Offset Fees.

For the years ended December 31, 2025 and 2024, the Company paid the Administrator an Administrative Fee of $0.23 million and $0.15 million, respectively.

**Affiliated Shareholder** 

An affiliate of FMR has committed to purchase up to $50 million in Shares from time to time as mutually agreed upon by the Company and such affiliate.

As of March 31, 2026, FMR's affiliate has purchased Shares with an aggregate purchase price of $1.19 million.

**Line of Credit** 

Effective January 27, 2023 (and as amended as of March 18, 2026), the Operating Partnership obtained the $50 million revolving Line of Credit from FMR, an affiliate of the Investment Manager. Loans under the Line of

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Credit may be used for, among other things, facilitating property acquisitions, funding working capital needs, and providing funds in anticipation of financing events or the receipt of the proceeds from the sale of Shares in the Company's ongoing private offering. Loans under the Line of Credit bear interest at a rate per annum equal to SOFR plus a margin of 1.75%. Upon the occurrence and during the continuation of any event of default under the Line of Credit, the outstanding principal balance of all loans will bear interest at a rate per annum equal to 2.00% plus the rate otherwise applicable.

The Company will pay an annual facility fee in the amount of 0.15% of the total commitment under the Line of Credit as well as an undrawn commitment fee of 0.15% of any undrawn commitment under the Line of Credit. The maturity date of the Line of Credit is March 18, 2029. The maturity date will be extended automatically for one three-year period unless either FMR or the Company elects not to extend the agreement 30 days before the then-current maturity date. The aggregate outstanding principal balance of all outstanding loans, and all accrued and unpaid interest thereon due under the Line of Credit will be due and payable in full on the earlier of (i) 180 days following the borrowing date thereof and (ii) the maturity date of the Line of Credit. See Note 7 and Note 13 to the Company's consolidated financial statements included in this Registration Statement for further details on the terms of the Line of Credit.

As of December 31, 2025 and 2024, there were no loans outstanding under the Line of Credit.

**Policies Regarding Transactions With Related Persons** 

<u>Permitted Affiliate Fees</u>. The Company may compensate certain of the Investment Manager's or Trustee's affiliates from time to time for services relating to the Company's investments or operations, which may include property management services, property accounting services and leasing services and fund administration services. The Investment Manager will seek to ensure that any such Permitted Affiliate Fees will be at or below market rates, and any Permitted Affiliate Fees paid with respect to property management services will be at rates usual and customary for comparable property management services rendered to similar properties in the geographic market of the property, as determined by the Investment Manager in its discretion.

<u>Warehoused Investments</u>. The Trustee, the Investment Manager or an affiliate thereof may acquire (or enter into agreements to acquire) investments falling within the Company's investment objectives (each, a "Warehoused Investment"). The Trustee may cause any such Warehoused Investments to be sold to the Company at a price equal to the sum of: (i) the lesser of (a) the acquisition cost of such Warehoused Investment, including any unreimbursed expenses, fees, taxes, and costs incurred in connection with the purchase and holding of such Warehoused Investment and (b) the fair market value, as determined by the Investment Manager (less any interim cash flow amounts received from such Warehoused Investment), *plus* (ii) interest thereon at a per annum rate equal to the three-month U.S. treasuries rate plus 175 basis points, plus (iii) all fees, taxes, expenses and costs incurred in connection with the transfer of such Warehoused Investment to the Company.

**Trustee Independence** 

The Trustee is not independent of the Company. The Company's Declaration of Trust does not define "independence" with respect to the Trustee, and it does not currently employ any definition of independence with respect to the Trustee.

**Item 8. Legal Proceedings** 

From time to time, the Company may be involved in various claims and legal actions arising in the ordinary course of business. As of the date of this filing, the Company was not involved in any material litigation.

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**Item 9. Market Price of and Dividends on the Registrant's Common Equity and Related Shareholder Matters** 

**Market Information** 

The Shares are not listed for trading on any exchange or other securities market. There is currently no established public trading market for the Shares, and it does not expect for such a market to develop.

The Shares are being offered and sold in an ongoing private offering in transactions exempt from registration under Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D. See "Item 10. Recent Sales of Unregistered Securities" for more information. The Shares may not be sold or transferred (i) except as permitted under its Declaration of Trust and (ii) unless the Shares are registered under applicable securities laws or specifically exempted from registration thereunder. Accordingly, a shareholder must be willing to bear the economic risk of investment in the Shares unless and until it accepts their repurchase or transfer request. No sale, transfer, assignment, pledge or other disposition, whether voluntary or involuntary, of the Shares may be made except by registration of the transfer on the Company's books.

The Company has not agreed to register any of its securities under the Securities Act for sale by shareholders.

**Holders** 

As of March 31, 2026, there were 2,162 holders of record of Shares.

**Distributions** 

See "Item 11. Description of Registrant's Securities to be Registered—Distribution Policy" for information regarding the Company's distribution policy.

**Funds from Operations, Adjusted Funds from Operations and Funds Available for Distribution** 

The Company believes Funds from Operations ("FFO") is a meaningful non-GAAP supplemental measure of its operating results. The Company's consolidated financial statements are presented using historical cost accounting which, among other things, requires depreciation of real estate investments. As a result, the Company's operating results imply that the value of its real estate investments have decreased over time. However, the Company believes that the value of its real estate investments will fluctuate over time based on market conditions and, as such, depreciation under historical cost accounting may be less informative as a measure of performance. FFO is an operating measure defined by the National Association of Real Estate Investment Trusts ("NAREIT") that is broadly used in the REIT industry. FFO, as defined by NAREIT and presented below, is calculated as net income or loss (computed in accordance with GAAP), excluding (i) depreciation and amortization, (ii) impairment of investments in real estate, (iii) net gains or losses from sales of real estate, (iv) net gains or losses from change in control, and (v) similar adjustments for non-controlling interests and unconsolidated entities.

The Company also believes that Adjusted FFO ("AFFO") is an additional meaningful non-GAAP supplemental measure of its operating results. AFFO further adjusts FFO to reflect the performance of the Company's portfolio by adjusting for items the Company believes are not directly attributable to its operations. The Company's adjustments to FFO to arrive at AFFO include removing the impact of (i) the Incentive Fee payable to the Investment Manager, (ii) changes in fair value of real estate related securities and real estate debt, (iii) straight-line rental income, (iv) amortization of deferred financing costs, (v) amortization of mortgage premium/discount, (vi) amortization of above- and below-market lease intangibles, and adding (vii) similar adjustments for non-controlling interests.

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The Company also believes that Funds Available for Distribution ("FAD") is an additional meaningful non-GAAP supplemental measure of its operating results. FAD provides useful information for considering the Company's operating results and certain other items relative to the amount of its distributions, and the Company believes is therefore meaningful to shareholders. FAD is calculated as AFFO adjusted for (i) management fees paid in Shares, even if subsequently repurchased by the Company, (ii) other capital expenditures, (iii) realized gains or losses on real estate related securities and real estate debt, and (iv) similar adjustments for non-controlling interests. FAD is not indicative of cash available to fund the Company's cash needs and does not represent cash flows from operating activities in accordance with GAAP, as FAD is adjusted for other capital expenditures, which are not considered when determining cash flows from operations.

FFO, AFFO, and FAD should not be considered more relevant or accurate than GAAP net income (loss) in evaluating the Company's operating performance. In addition, FFO, AFFO, and FAD should not be considered as alternatives to net income (loss) as indications of the Company's performance or as alternatives to cash flows from operating activities as indications of the Company's liquidity, but rather should be reviewed in conjunction with these and other GAAP measurements. Further, FFO, AFFO, and FAD are not intended to be used as liquidity measures indicative of cash flow available to fund the Company's cash needs, including its ability to make distributions to its shareholders. In addition, the Company's methodology for calculating AFFO and FAD may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and accordingly, the Company's reported AFFO and FAD may not be comparable to the AFFO and FAD reported by other companies.

The following table presents a reconciliation of net income (loss) attributable to the Company's shareholders to FFO, AFFO, and FAD attributable to the Company's shareholders:

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
|  Net income (loss) attributable to common shareholders | $(9233916) | $(5297334) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to arrive at FFO: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation & amortization | 19123158 | 11853933 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amount attributable to non-controlling interests for above adjustments | (713756) | (384366) |
|  FFO attributable to common shareholders | $9175486 | $6172233 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to arrive at AFFO: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incentive fee & performance participation allocation | 2873858 | 2731835 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Straight-line rent | (850098) | (993235) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of above and below-market lease intangibles | (1545292) | (773332) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt issuance and deferred financing costs | 442100 | 295055 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized (gain) loss on real estate related securities | 25650 | (16394) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized (gain) loss on real estate debt | 13624 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion of real estate debt discount | 382 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt (premium)/discount | 872686 | 872686 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amount attributable to non-controlling interests for above adjustments | (77669) | (68336) |
|  AFFO attributable to common shareholders | $10930727 | $8220512 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to arrive at FAD: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash management fee | 3001402 | 1927298 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other capital expenditures<sup>(1)</sup> | 195135 | 7025 |

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| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized (gain) loss on real estate related securities | (13213) | (5091) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amount attributable to non-controlling interests for above adjustments | (19513) |  |
|  FAD attributable to common shareholders | $14094538 | $10149744 |

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(1) Other capital expenditures include non-recurring project work required
to maintain the Company's investments.

**Securities Authorized for Issuance Under Equity Compensation Plans** 

The Company has not adopted, or issued any securities in accordance with, any equity compensation plans.

**Net Asset Value Calculation and Valuation Guidelines** 

The Company's NAV is based on the net asset values of its investments (including real estate debt and other securities), the addition of any other assets (such as cash on hand), and the deduction of any liabilities, including the allocation/accrual of any Incentive Fees in all cases as described below. The Company commenced determining a monthly NAV per Share in February 2023.

***General***

The Investment Manager has adopted valuation guidelines that contain a comprehensive set of methodologies to be used by the Investment Manager and the Company's independent valuation service provider in connection with estimating the values of its assets and liabilities for purposes of the Company's NAV calculation. These guidelines are designed to produce a fair and accurate estimate of the price that would be received for its investments in an arm's-length transaction between a willing buyer and a willing seller in possession of all material information about its investments. The Company's independent valuation service provider (discussed below) will review its valuation guidelines and methodologies related to direct investments in real property with the Investment Manager at least annually. The Investment Manager's Fair Value Committee similarly reviews and provides ongoing oversight over its valuation guidelines and methodologies for real estate investments, including direct investments and investments in real estate-related securities, such as publicly-traded REITs. From time to time, the Investment Manager may adopt changes to the valuation guidelines if it (a) determines that such changes are likely to result in a more accurate reflection of NAV or a more efficient or less costly procedure for the determination of NAV without having a material adverse effect on the accuracy of such determination or (b) otherwise reasonably believes a change is appropriate for the determination of NAV.

The Company's NAV per Share is determined by taking the market value of its investments, cash and other assets, subtracting its total liabilities, and dividing the result by the total number of Shares outstanding, and will likely differ from the book value of the Company's equity reflected in its financial statements. The Company issues financial statements based on historical cost in accordance with GAAP. To calculate the Company's NAV for the purpose of establishing a purchase and repurchase price for the Shares, it has adopted a model, as explained below, that adjusts the value of the Company's assets and liabilities from historical cost to fair value generally in accordance with the GAAP principles set forth in FASB Accounting Standards Codification Topic 820, Fair Value Measurements. The Investment Manager calculates the fair value of the Company's real estate properties based in part on values provided by third-party independent appraisers and valuation service providers and reviewed by the Investment Manager's Fair Value Committee. The Investment Manager may retain additional third-parties to assist with the Company's valuations of certain investments. Because these fair value calculations involve material professional judgment in the application of both observable and unobservable

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attributes, the calculated fair value of the Company's assets may differ from their actual realizable value or future fair value. While the Company believes its NAV calculation methodologies are consistent with standard industry practices, there is no rule or regulation that requires that the Company calculates NAV in a certain way. In addition, NAV is not a measure used under GAAP and the valuations of, and certain adjustments made to, the Company's assets and liabilities used in the determination of NAV will differ from GAAP. NAV should not be considered an equivalent to shareholders' equity or any other GAAP measure.

***The Company's Independent Valuation Service Provider***

The Investment Manager has engaged Altus Group U.S. Inc. ("Altus Group"), to serve as the Company's independent valuation service provider with respect to its real properties. Altus Group reviews annual third-party appraisals of the Company's properties and prepares interim valuations on a monthly basis of properties that are not externally contemporaneously appraised. Altus Group is a multidisciplinary provider of independent, commercial real estate consulting and advisory services with multiple offices around the world, including in Canada, the U.K., Australia, the United States and Asia Pacific. Altus Group is engaged in the business of valuing commercial real estate properties and is not affiliated with the Company or the Investment Manager. The Investment Manager, with the consent of the Investment Manager's Fair Value Committee, may engage a different valuation service provider to substitute for Altus Group and/or additional independent valuation providers in the future. While the Company's independent valuation service provider reviews for reasonableness the assumptions, methodologies and valuation conclusions applied in the appraisals of the Company's real properties, the independent valuation service provider is not responsible for, and does not calculate, the Company's NAV. The Investment Manager is ultimately responsible for the determination of the Company's NAV. The Trustee is not involved in the valuation of the Company's assets and liabilities or the calculation of its NAV, but will periodically review such information about the NAV calculation process prepared by the Investment Manager as it deems necessary to exercise its oversight responsibility.

The Company's independent valuation service provider may be replaced at any time, in accordance with agreed-upon notice requirements, by the Investment Manager. The Company will disclose to its shareholders any changes to the identity or role of the Company's independent valuation service provider.

The independent valuation service provider discharges its responsibilities in accordance with the Company's valuation guidelines. The Company's NAV per Share is calculated by the Administrator, and such calculation is reviewed and confirmed by the Investment Manager. Pursuant to the Company's valuation services agreement with its independent valuation service provider, the Investment Manager receives appraisal reports for its property investments from third-party appraisal firms that have been reviewed by the Company's independent valuation service provider along with the independent valuation service provider's own valuations. Based in part on these appraisals, the Investment Manager renders a final valuation in order for the Administrator to calculate the Company's NAV. The appraisals for the Company's property investments performed by independent third-party appraisal firms and reviewed by the Company's independent valuation service provider are one of several components considered by the Investment Manager in determining the values of the Company's properties that are used when the Administrator calculates its NAV per Share.

The Company agreed to pay fees to its independent valuation service provider on a quarterly basis. The Company has also agreed to indemnify its independent valuation service provider against certain liabilities arising out of this engagement. The compensation the Company pays to the independent valuation service provider is not based on the estimated values of its properties.

The Company's independent valuation service provider and certain of the independent third-party appraisers have provided, and are expected to continue to provide, real estate appraisal, appraisal management and real estate valuation advisory services to FMR and its affiliates and have received, and are expected to continue to receive, fees in connection with such services. The Company's independent valuation service provider and certain of the independent third-party appraisers and their respective affiliates may from time to time in the future

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perform other commercial real estate and financial advisory services for FMR and its affiliates, or in transactions related to the properties that are the subjects of the valuations being performed for the Company, or otherwise, so long as such other services do not adversely affect the independence of the independent valuation service provider or the applicable appraiser as certified in the applicable appraisal report.

***Valuation of Investments***

<u>Consolidated Properties</u>

For the purposes of calculating the Company's monthly NAV, its properties are valued at cost at acquisition, which the Company expects to represent fair value at that time, subject to any variation pursuant to the Company's valuation guidelines. In accordance with GAAP, the Company determines whether the acquisition of a property qualifies as an asset acquisition or business combination. The Company capitalizes acquisition-related costs associated with asset acquisitions and expense such costs associated with business combinations.

Each property is valued by an independent third-party appraisal firm annually. Annual appraisals may be delayed for a short period in exceptional circumstances. Third-party appraisals are performed in accordance with the Uniform Standards of Professional Appraisal Practice, or the similar industry standard for the country where the property appraisal is conducted and reviewed by the Company's independent valuation service provider and the Investment Manager's Fair Value Committee for reasonableness. Upon conclusion of the appraisal, the independent third-party appraisal firm prepares a written report with an estimated fair value of the property. The Company believes its policy of obtaining appraisals by independent third parties materially enhances the accuracy of its NAV calculations. Any appraisal provided by an independent third-party appraisal firm will be performed in accordance with the Company's valuation guidelines and will not be considered in the Investment Manager's valuation of the applicable property until the Company's independent valuation service provider and the Investment Manager's Fair Value Committee has confirmed the reasonableness of such appraisal.

Each month the independent valuation service provider values those properties not being externally valued by an independent third-party appraisal firm in such month, based on current material market data and other information deemed relevant, with review and confirmation for reasonableness by the Investment Manager's Fair Value Committee. The Investment Manager's reasonableness reviews are based on market, asset, and portfolio level information, including historical or forecasted operating revenues and expenses of the properties, lease agreements on the properties, revenues and expenses of the properties, information regarding recent or planned estimated capital expenditures, the then-most recent annual third-party appraisals, and any other information relevant to valuing the real estate property.

The Investment Manager monitors the Company's properties for events that the Investment Manager believes may be expected to have a material impact on the most recent estimated values of such properties and notifies its independent valuation service provider of any such events. If, in the opinion of the Investment Manager, an event becomes known to the Investment Manager (including through communication with its independent valuation service provider) that is likely to have any material impact on previously provided estimated values of the affected properties, the Investment Manager will engage the independent service provider to revalue such properties, subject to review and confirmation for reasonableness by the Investment Manager. If deemed appropriate by the Investment Manager or the Company's independent valuation service provider, any necessary revaluation will be determined as soon as practicable. Annual appraisals may also trigger a revaluation in the value of a property when received.

For example, a revaluation may be appropriate to reflect the occurrence of an unexpected property specific event such as a termination or renewal of a material lease, a material change in vacancies, an unanticipated structural or environmental event at a property or a significant capital market event that may cause the value of a property to change materially. Revaluations may also be appropriate to reflect the occurrence of broader market-driven events identified by the Investment Manager or the Company's independent valuation service provider,

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which may impact more than a specific property. Any such revaluations will be estimates of the market impact of specific events as they occur, based on assumptions and judgments that may or may not prove to be correct, and may also be based on the limited information readily available at that time. In general, the Company expects that any revaluations will be calculated promptly after a determination that a material change has occurred, and the financial effects of such change are quantifiable by the Investment Manager. However, rapidly changing market conditions or material events may not be immediately reflected in the Company's monthly NAV. The resulting potential disparity in the Company's NAV may be detrimental to shareholders whose Shares are repurchased or new purchasers of Shares, depending on whether the Company's NAV per Share is overstated or understated.

Real estate appraisals will be reported on a free and clear basis (for example, without taking into consideration any mortgage on the property), irrespective of any property level financing that may be in place. The Company expects to use the discounted cash flow methodology (income approach) as the primary methodology to value properties, whereby a property's value is calculated by discounting the estimated cash flows and the anticipated terminal value of the subject property at a market derived discount rate applicable for the subject property. Consistent with industry practices, the income approach also incorporates subjective judgments regarding comparable rental and operating expense data, capitalization or discount rate, and projections of future rent and expenses based on appropriate evidence as well as the residual value of the asset as components in determining value.

Other methodologies that may also be used to value properties include sales comparisons and cost approaches. Under the sales comparison approach, the independent third-party appraiser develops an opinion of value by comparing the subject property to similar, recently sold properties in the surrounding or competing area. The cost approach is based on the understanding that market participants relate value to cost. The value of a property is derived by adding the estimated land value to the current cost of constructing a replacement for the improvements and then subtracting the amount of depreciation in the structures from all causes. Because the appraisals performed by the independent third party appraisal firms, valuations of the Company's properties by its independent valuation service provider, and the Investment Manager's determination of the reasonableness of valuations for the Company's properties provided in such reports involve subjective judgments, the estimated fair value of its assets that will be included in its NAV may not reflect the liquidation value or net realizable value of its properties.

In conducting their investigations and analyses, the Company's independent valuation service provider and other independent third party appraisal firms take into account customary and accepted financial and commercial procedures and considerations as they deem relevant, which may include, without limitation, the review of documents, materials and information relevant to valuing the property that are provided by the Company, such as (i) historical or forecasted operating revenues and expenses of the property; (ii) lease agreements on the property; (iii) the revenues and expenses of the property; (iv) information regarding recent or planned estimated capital expenditures; and (v) any other information relevant to valuing the real estate property. Although the Company's independent valuation service provider may review information supplied or otherwise made available by the Company for reasonableness, it will assume and rely upon the accuracy and completeness of all such information and of all information supplied or otherwise made available to it by any other party and will not undertake any duty or responsibility to verify independently any of such information. The Company's independent valuation service provider will not make or obtain an independent valuation or appraisal of any of the Company's other assets or liabilities (contingent or otherwise) other than its real properties. With respect to operating or financial forecasts and other information and data to be provided to or otherwise to be reviewed by or discussed with the Company's independent valuation service provider, its independent valuation service provider will assume that such forecasts and other information and data were reasonably prepared in good faith on bases reflecting currently available estimates and judgments of its management and the Investment Manager, and will rely upon the Investment Manager to advise its independent valuation service provider promptly if any material information previously provided becomes inaccurate or was required to be updated during the period of review.

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In performing their analyses, the Investment Manager, the Company's independent valuation service provider and other independent third-party appraisal firms make numerous other assumptions with respect to industry performance, general business, economic and regulatory conditions and other matters, many of which are beyond its control and the Company's control, as well as certain factual matters. For example, the Company's independent valuation service provider and other independent third-party appraisal firms assume that the Company has clear and marketable title to each real estate property valued, that no title defects exist unless specifically informed to the contrary, that improvements were made in accordance with law, that no hazardous materials are present or were present previously, that no deed restrictions exist, and that no changes to zoning ordinances or regulations governing use, density or shape are pending or being considered. Furthermore, the Company's independent valuation service provider's review, opinions and conclusions are necessarily based upon market, economic, financial and other circumstances and conditions existing prior to the valuation, and any material change in such circumstances and conditions may affect the Company's independent valuation service provider's review and conclusions. The Company's independent valuation service provider's review reports may contain other assumptions, qualifications and limitations set forth in the respective appraisal reports that qualify the review, opinions and conclusions set forth therein. As such, the carrying values of the Company's real properties may not reflect the price at which the properties could be sold in the market, and the difference between carrying values and the ultimate sales prices could be material. In addition, accurate valuations are more difficult to obtain in times of low transaction volume because there are fewer market transactions that can be considered in the context of the appraisal.

Pursuant to the Company's valuation services agreement with its independent valuation service provider, each individual appraisal report for its assets is addressed solely to the Company to assist the Investment Manager in determining the Company's NAV. The appraisal reports relating to the Company's properties are not addressed to the public, do not contain any conclusion regarding its NAV, may not be relied upon by any other person to establish an estimated value of its Shares and do not constitute a recommendation to any person to purchase or sell any Shares. In preparing appraisal reports, independent third-party appraisal firms do not, and have not been requested to, solicit third-party indications of interest for Shares or any of the Company's properties in connection with possible purchases thereof or the acquisition of all or any part of the Company.

<u>Unconsolidated Properties Held Through Joint Ventures</u>

Unconsolidated properties held through joint ventures are generally valued by the Investment Manager in a manner that is consistent with the guidelines described above for consolidated properties. Once the value of a property held by the joint venture is determined by an independent appraisal and the Company determines the fair value of any other assets and liabilities of the joint venture, the value of the Company's interest in the joint venture would then be determined by the Investment Manager using a hypothetical liquidation calculation to value the Company's interest in the joint venture, which would be a percentage of the joint venture's NAV. Unconsolidated properties held in a joint venture that acquires multiple properties over time may be valued as a single investment.

***Valuation of Real Estate Debt and Other Securities***

In general, real estate debt and other securities are valued by the Investment Manager based on market quotations or at fair value determined in accordance with GAAP. GAAP defines fair value as the price that would be received to sell an asset or be paid to transfer a liability (*i.e*., the exit price) in an orderly transaction between market participants at the measurement date.

<u>Readily Available Market Quotations for Equity Securities</u> 

Equity securities (including common stock, ETFs, closed-end funds, preferred equity securities and other instruments that trade on recognized stock exchanges) are valued at the last sale price, official closing price or, if there are no reported sales, at the closing bid price on the primary exchange on which they are listed for trading.

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<u>No Readily Available Market Quotations</u>

When market quotations, official closing prices, or information furnished by a pricing service are not readily available or, in the opinion of the Investment Manager's Fair Value Committee, are deemed unreliable, then the impacted investments will be fair valued in good faith by the Investment Manager's Fair Value Committee in accordance with the fair value methodologies set forth within the Fair Value Committee Policies and Procedures. The fair value methodologies established within the Fair Value Committee Policies and Procedures identify various reasons for which fair value determinations are necessary and provide corresponding fair value methodologies and methodology descriptions determined by the Investment Manager's Fair Value Committee to be appropriate in each instance. Where multiple methodologies are available, the fair value methodology to be applied is selected by the Investment Manager's Fair Value Committee based on the relevant facts and circumstances and a determination of which available methodology is most appropriate. Selected methodologies are consistently applied but may be changed by the Investment Manager's Fair Value Committee if a different available methodology is determined to be equally or more representative of the fair value of the investment. Due to the inherent uncertainty of these estimates, estimates of fair value may differ from the values that would have been used had a ready market for these investments existed and the differences could be material.

***Liabilities***

The Company expects that its liabilities will include the Management Fees and Incentive Fees payable to the Investment Manager, accounts payable, accrued operating expenses, property-level mortgages, any portfolio-level credit facilities, and other liabilities. Other than debt (as discussed below), the Company includes the fair value of its liabilities as part of its NAV calculation. All liabilities are valued using widely accepted methodologies specific to each type of liability in accordance with GAAP.

The Investment Manager's valuation of each investment's liabilities, including any third-party incentive fee payments or investment level debt, deal terms and structure is not reviewed by the Company's independent valuation service provider or appraised.

***Property-Level Mortgages***

The Company's property level mortgages and corporate level credit facilities that are intended to be held to maturity, including those subject to interest rate hedges, are valued at par (*i.e*., at their respective outstanding balances) by the Investment Manager. Since the Company may utilize interest rate hedges to stabilize interest payments (*i.e*., to fix all-in interest rates through interest rate swaps or to limit interest rate exposure through interest rate caps) on individual loans, each loan and associated interest rate hedge are treated as one financial instrument which are valued at par if intended to be held to maturity (which for fixed rate debt not subject to interest rate hedges may be the date near maturity at which time the debt will be eligible for prepayment at par for the purposes herein). This policy of valuing at par will apply regardless of whether any given interest rate hedge is considered an asset or liability for GAAP purposes.

In the event the Company acquires an investment and assumes associated in-place debt from the seller that is above or below market, then consistent with how the Company recognizes assumed debt for GAAP purposes when acquiring an asset with pre-existing debt in place, the liabilities used in determining its NAV will include the market value of such debt. The associated premium or discount on such debt as at closing that is reflected in the Company's liabilities will then be amortized through loan maturity. Per the real estate valuation policy described above, the corresponding investment is valued on an unlevered basis for the purposes of determining NAV. Accordingly, all else being equal, the Company would not recognize an immediate gain or loss to its NAV upon acquisition of an investment whereby it assumes associated pre-existing debt that is above or below market.

The Company's property-level mortgages and corporate-level credit facilities that are not intended to be held to maturity (in conjunction with any associated interest rate hedges that are not intended to be held to maturity) are valued at par. Debt that is not intended to be held to maturity refers to any property level mortgages that the Company definitely intends to prepay in association with any asset considered as held for sale from a

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GAAP perspective, other than property level mortgages or corporate level credit facilities that the Company definitely intends to prepay, or any interest rate hedge that the Company definitely intends to terminate.

In addition, for non-recourse mortgages and interest rate hedges, the combined value of the net liability for each mortgage and associated interest rate hedge is limited to the value of the underlying asset(s), so as to not make the equity of such asset(s) less than zero.

Costs and expenses incurred to secure financings are amortized over the life of the applicable loan. Unless costs can be specifically identified, the Company allocates the financing costs and expenses incurred with obtaining multiple loans that are not directly related to any single loan among the applicable loans, generally pro rata based on the amounts of proceeds from each loan.

***NAV and NAV Per Share Calculation***

The Company's NAV is calculated by the Administrator, however the Investment Manager is ultimately responsible for the determination of the Company's NAV. The Investment Manager oversees the process by which the Administrator calculates the NAV and reviews and confirms the NAV as calculated by the Administrator.

NAV per Share is calculated as of the last calendar day of each month, using a process that reflects several components (each as described above), including the estimated fair value of (1) each of the Company's properties based in part upon individual appraisal reports provided annually by third-party independent valuation firms and reviewed for reasonableness by the Company's independent valuation service provider and the Investment Manager's Fair Value Committee, as finally determined and updated monthly by the Company's independent valuation service provider, with review and confirmation for reasonableness by the Investment Manager's Fair Value Committee, (2) the Company's real estate debt and other securities for which third-party market quotes are available, (3) the Company's other real estate debt and other securities, if any, and (4) the Company's other assets and liabilities.

The Company's NAV is based on the net asset values of its investments (including real estate debt and other securities), the addition of any other assets (such as cash on hand), and the deduction of any liabilities (including the allocation/accrual of any Incentive Fees). The NAV calculation as of the last calendar day of each month is generally available within 15 days following the end of such month. 

Changes in the Company's monthly NAV include, without limitation, accruals of its net portfolio income, interest expense, the Management Fee, any accrued Incentive Fee, distributions, unrealized/realized gains and losses on assets, and other expenses. Changes in the Company's monthly NAV also include material non-recurring events, such as capital expenditures and material property acquisitions and dispositions occurring during the month. Notwithstanding anything herein to the contrary, the Investment Manager may in its discretion consider material market data and other information that becomes available after the end of the applicable month in valuing the Company's assets and liabilities and calculating its NAV for a particular month. On an ongoing basis, the Investment Manager will adjust the accruals to reflect actual operating results and the outstanding receivable, payable and other account balances resulting from the accumulation of monthly accruals for which financial information is available.

The Company's NAV will be reduced to reflect the accrual of a liability to pay any distribution to its shareholders of record as of the record date in the month a distribution is declared. NAV per Share is calculated by dividing the aggregate NAV as of the last calendar day of each month by the number of Shares outstanding at the end of such month.

Operating Partnership units are valued in the same fashion as set forth above. The Company's Operating Partnership has units that are economically equivalent to its Shares. The NAV of the Company's Operating Partnership on the last calendar day of each month equals the sum of the NAVs of each outstanding Operating Partnership unit on such day.

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***Relationship between NAV and Share Purchase and Repurchase Price***

Shares are sold in the Company's private offering on a monthly basis at the then-current "transaction price," which will vary and will generally equal the most recently determined NAV per Share. The Company's NAV may vary significantly from one month to the next. Although the transaction price for Shares is generally based on the most recently determined NAV per Share, the NAV per Share as of the date on which a shareholder's purchase is settled may be significantly different. The Company generally does not expect to change the transaction price from the most recently determined NAV per Share, but may offer Shares at a price that it believes reflects the NAV per Share more appropriately than the most recently determined NAV per Share, including by updating a previously disclosed transaction price, or suspend its offering in exceptional cases where it believes there has been a material change (positive or negative) to its NAV per Share since the most recently determined NAV due to the aggregate impact of factors such as general significant market events or disruptions or force majeure events.

Shares will be repurchased pursuant to the SRP on a quarterly basis at a repurchase price equal to the transaction price applicable to the Repurchase Date (which will generally be equal to the Company's prior month's NAV per Share), subject to the terms of the SRP.

Generally, within 15 calendar days after the last calendar day of each month, the Company will determine its NAV per Share as of the last calendar day of such month, which will generally be the transaction price for the following month.

***Limits on the Calculation of the Company's NAV Per Share***

The overarching principle of the Company's valuation guidelines is to produce reasonable estimated values for each of its investments (and other assets and liabilities), or the price that would be received for that investment in orderly transactions between market participants. However, the majority of the Company's assets will consist of real estate properties and, as with any real estate valuation protocol and as described above, the valuation of its properties (and other assets and liabilities) is based on a number of judgments, assumptions and opinions about future events that may or may not prove to be correct. The use of different judgments, assumptions, or opinions would likely result in a different estimate of the value of the Company's real estate properties (and other assets and liabilities). Any resulting potential disparity in the Company's NAV per Share may be in favor of shareholders whose Shares are repurchased, existing shareholders or new purchasers of Shares, as the case may be, depending on the circumstances at the time.

Additionally, while the methodologies contained in the Company's valuation guidelines are designed to operate reliably within a wide variety of circumstances, it is possible that in certain unanticipated situations or after the occurrence of certain extraordinary events (such as a significant disruption in relevant markets, major political disruption event, or an act of nature), the Company's ability to calculate its NAV may be impaired or delayed, including, without limitation, circumstances where there is a delay in accessing or receiving information from vendors or other reporting agents upon which it may rely upon in determining the monthly value of its NAV. In these circumstances, a more accurate valuation of the Company's NAV could be obtained by using different assumptions or methodologies. Accordingly, in special situations when, in the Investment Manager's reasonable judgment, the administration of the valuation guidelines would result in a valuation that does not represent a fair and accurate estimate of the value of the Company's investments, alternative methodologies may be applied. Notwithstanding the foregoing, the Company may suspend its private offering or the SRP if it determines that the calculation of its NAV is materially incorrect or unreliable or there is a condition that restricts the valuation of a material portion of its assets.

The Company includes no discounts to its NAV for the illiquid nature of the Shares, including the limitations on the SRP and its ability to make exceptions to, modify or suspend the SRP at any time. The Company's NAV generally does not consider exit costs that would likely be incurred if its assets and liabilities were liquidated or sold. While the Company may use market pricing concepts to value individual components of its NAV, its NAV per Share is not derived from the market pricing information of open-end real estate funds listed on stock exchanges.

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The Company does not represent, warrant or guarantee that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a shareholder would be able to realize the NAV per Share for the Shares they own if the shareholder attempts to
sell its Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a shareholder would ultimately realize distributions per Share equal to the NAV per Share upon liquidation of the
Company's assets and settlement of its liabilities or a sale of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shares would trade at their NAV per Share on a national securities exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a third party would offer the NAV per Share in an arm's-length transaction to purchase all or substantially all of the Shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the NAV per Share would equate to a market price of an open-ended real estate fund.

**Item 10. Recent Sales of Unregistered Securities** 

On February 1, 2023, the Company commenced its ongoing continuous private offering of Shares. The Company is offering up to $750 million in Shares, provided that the Trustee may increase the amount of Shares offered and may terminate the offering at any time.

As of March 31, 2026, the Company has sold (i) 31,529,027 Shares in the private offering for gross proceeds of approximately $342,536,843, and (ii) 2,014,348 Shares pursuant to the DRIP for gross proceeds of approximately $22,441,337, for aggregate Shares issued and gross proceeds, each inclusive of the DRIP, of 33,543,375 Shares and $364,978,180, respectively.

The following table sets forth additional information regarding the sale of Shares pursuant to the Company's ongoing private offering (inclusive of the DRIP) through March 31, 2026.

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|:---|:---|:---|:---|:---|:---|:---|
| **Month**<br> **and**<br> **Year** | **Total Proceeds -<br>Private**<br>**Offering**<br>**Shares**<br>**(Dollars)** | **Shares Sold in<br>Private**<br>**Offering** | **Total Proceeds -<br>DRIP**<br>**Shares** | **Shares**<br>**Issued Pursuant<br>to DRIP** | **Total Proceeds<br>(Inclusive of DRIP)** | **Total Shares<br>Issued**<br>**(Inclusive of<br>DRIP Shares)** |
|  **23-Feb** | $20441318.00 | 2044131.800 | $0.00 | 0.000 | $20441318.00 | 2044131.800 |
|  **23-Mar** | $20280739.00 | 2032138.159 | $0.00 | 0.000 | $20280739.00 | 2032138.159 |
|  **23-Apr** | $27336729.45 | 2615804.763 | $87732.34 | 8394.958 | $27424461.79 | 2624199.721 |
|  **23-May** | $18503376.45 | 1764713.738 | $0.00 | 0.000 | $18503376.45 | 1764713.738 |
|  **23-Jun** | $18537770.00 | 1764510.413 | $0.00 | 0.000 | $18537770.00 | 1764510.413 |
|  **23-Jul** | $14338086.50 | 1363908.347 | $559205.22 | 53194.333 | $14897291.72 | 1417102.680 |
|  **23-Aug** | $8948109.96 | 845765.075 | $0.00 | 0.000 | $8948109.96 | 845765.075 |
|  **23-Sep** | $7300062.41 | 687278.149 | $0.00 | 0.000 | $7300062.41 | 687278.149 |
|  **23-Oct** | $4439556.23 | 420368.737 | $1136597.10 | 107621.127 | $5576153.33 | 527989.864 |
|  **23-Nov** | $4930552.76 | 464817.607 | $0.00 | 0.000 | $4930552.76 | 464817.607 |
|  **23-Dec** | $3855555.00 | 358763.074 | $0.00 | 0.000 | $3855555.00 | 358763.074 |
|  **24-Jan** | $5126172.00 | 479224.820 | $1555869.13 | 145451.888 | $6682041.13 | 624676.708 |
|  **24-Feb** | $5344405.49 | 495375.254 | $0.00 | 0.000 | $5344405.49 | 495375.254 |
|  **24-Mar** | $3587500.00 | 330492.855 | $0.00 | 0.000 | $3587500.00 | 330492.855 |
|  **24-Apr** | $4409466.70 | 408268.829 | $1832568.19 | 169675.983 | $6242034.89 | 577944.812 |
|  **24-May** | $3479000.00 | 320529.949 | $0.00 | 0.000 | $3479000.00 | 320529.949 |
|  **24-Jun** | $4217103.73 | 386040.255 | $0.00 | 0.000 | $4217103.73 | 386040.255 |
|  **24-Jul** | $2697421.23 | 248722.577 | $2043414.39 | 186870.152 | $4740835.62 | 435592.729 |
|  **24-Aug** | $3545281.56 | 325004.726 | $0.00 | 0.000 | $3545281.56 | 325004.726 |
|  **24-Sep** | $1691685.47 | 154353.679 | $0.00 | 0.000 | $1691685.47 | 154353.679 |
|  **24-Oct** | $2655577.00 | 243391.991 | $2180148.18 | 195291.283 | $4835725.18 | 438683.274 |
|  **24-Nov** | $3244961.23 | 295074.269 | $0.00 | 0.000 | $3244961.23 | 295074.269 |

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|:---|:---|:---|:---|:---|:---|:---|
| **Month**<br> **and**<br> **Year** | **Total Proceeds -<br>Private**<br>**Offering**<br>**Shares**<br>**(Dollars)** | **Shares Sold in<br>Private**<br>**Offering** | **Total Proceeds -<br>DRIP**<br>**Shares** | **Shares**<br>**Issued Pursuant<br>to DRIP** | **Total Proceeds<br>(Inclusive of DRIP)** | **Total Shares<br>Issued**<br>**(Inclusive of<br>DRIP Shares)** |
|  **24-Dec** | $4008242.00 | 354903.257 | $0.00 | 0.000 | $4008242.00 | 354903.257 |
|  **25-Jan** | $11934053.00 | 1064267.127 | $2244173.88 | 199582.225 | $14178226.88 | 1263849.352 |
|  **25-Feb** | $9035031.75 | 801446.926 | $0.00 | 0.000 | $9035031.75 | 801446.926 |
|  **25-Mar** | $6291209.20 | 555172.012 | $0.00 | 0.000 | $6291209.20 | 555172.012 |
|  **25-Apr** | $17520364.01 | 1555057.287 | $2124384.49 | 188650.168 | $19644748.50 | 1743707.455 |
|  **25-May** | $7104381.60 | 626731.857 | $0.00 | 0.000 | $7104381.60 | 626731.857 |
|  **25-Jun** | $11497562.63 | 1005251.367 | $0.00 | 0.000 | $11497562.63 | 1005251.367 |
|  **25-Jul** | $9059511.27 | 796489.564 | $2651745.92 | 233346.582 | $11711257.19 | 1029836.146 |
|  **25-Aug** | $13468228.04 | 1177982.558 | $0.00 | 0.000 | $13468228.04 | 1177982.558 |
|  **25-Sep** | $9124858.00 | 791703.509 | $0.00 | 0.000 | $9124858.00 | 791703.509 |
|  **25-Oct** | $8833906.00 | 772052.849 | $3023371.19 | 264232.180 | $11857277.19 | 1036285.029 |
|  **25-Nov** | $10644881.21 | 928273.299 | $0.00 | 0.000 | $10644881.21 | 928273.299 |
|  **25-Dec** | $10591859.31 | 916044.775 | $0.00 | 0.000 | $10591859.31 | 916044.775 |
|  **26-Jan** | $12694860.05 | 1108053.636 | $3002126.81 | 262036.625 | $15696986.86 | 1370090.261 |
|  **26-Feb** | $0.00 | 0.000 | $0.00 | 0.000 | $0.00 | 0.000 |
|  **26-Mar** | $11817465.37 | 1026918.096 | $0.00 | 0.000 | $11817465.37 | 1026918.096 |
|  **Total** | $342536843.61 | 31529027.185 | $22441336.84 | 2014347.504 | $364978180.45 | 33543374.689 |

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None of the Shares set forth in the table above were registered under the Securities Act in reliance upon the exemptions from registration under the Securities Act provided by Section 4(a)(2) of the Securities Act and Rule 506(b) under Regulation D promulgated under the Securities Act. Shares are available for purchase only to persons who represent to the Company in writing that they qualify as an "accredited investor," as such term is defined by Rule 501(a) of the Securities Act.

**Item 11. Description of Registrant's Securities to Be Registered** 

**Description of the Company's Shares** 

***General***

The Company was formed as a statutory trust under the laws of the State of Maryland. The rights of its shareholders are governed by Maryland law as well as its Certificate of Trust and Declaration of Trust. The following is a summary of certain provisions concerning the Shares. You should refer to the Maryland Statutory Trust Act (the "MSTA") and the Company's Certificate of Trust and Declaration of Trust for a full description of the matters summarized below. The following summary is qualified in its entirety by the more detailed information contained in the Company's Certificate of Trust and Declaration of Trust, each of which will be made available upon request and is filed as an exhibit to this Registration Statement.

The beneficial interest of the Company is divided into shares of beneficial interest (referred to herein as "shares" or "shares of beneficial interest"). The Company has authority to issue an unlimited number of common shares of beneficial interest without par value (referred to herein as "Shares"). As of the date hereof the Company has not authorized any additional classes or series of the Company's Shares.

***Common Shares***

Subject to the restrictions on ownership and transfer of the Company's Shares set forth in the Company's Declaration of Trust and except as may otherwise be specified in the terms of any class or series of shares of beneficial interest or as set forth in the Company's Declaration of Trust, the holders of Shares are entitled to one

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vote per Share on all matters voted on by shareholders. Subject to the provisions in the Company's Declaration of Trust regarding the restriction on ownership and transfer of its Shares, shareholders are entitled to such distributions as may be authorized from time to time by the Company's Trustee and declared by the Company out of legally available funds and, upon liquidation, are entitled to receive all assets available for distribution to its shareholders. Upon issuance for full payment in accordance with the terms of the Company's private offering, all Shares issued in its private offering will be fully paid and non-assessable. Shareholders will not have preemptive rights, which means that shareholders will not have an automatic option to purchase any new Shares that the Company issues.

Subject to the restrictions on ownership and transfer of the Company's Shares set forth in the Declaration of Trust and the terms of any class or series of shares of beneficial interest at the time outstanding, the Trustee may, by amendment to the Declaration of Trust and without any action by the shareholders, classify or reclassify any unissued shares of beneficial interest from time to time and set or change the number, par value, designations, preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of the class or series of Shares. If shares of beneficial interest of one class or series are classified or reclassified into shares of beneficial interest of another class or series by the Trustee, then, except to the extent that the Company is authorized to issue an unlimited number of shares of beneficial interest of any such class or series, the number of authorized shares of the former class or series shall be automatically decreased and the number of authorized shares of beneficial interest of the latter class or series shall be automatically increased, in each case by the number of shares of beneficial interest so classified or reclassified.

The Trustee may authorize or cause the Company to issue from time to time shares of beneficial interest of any class or series, whether now or hereafter authorized, or securities or rights convertible into shares of beneficial interest of any class or series, whether now or hereafter authorized, for such consideration, whether in cash, property, past or future services, obligation for future payment or otherwise, or without consideration (including in connection with a share split or distribution of shares), determined by the Trustee.

The Company may, without the consent or approval of any shareholder, issue fractional Shares, eliminate any outstanding fraction of a Share by rounding up to a full Share, arrange for the disposition of a fraction of a Share by the person entitled to it or pay cash for the fair value of a fraction of a Share.

Except as may be otherwise provided by the Trustee, the Company's shareholders are not entitled to certificates evidencing their Shares. In the event that the Company issues shares evidenced by certificates, such certificates may be in any form approved by the Trustee or any of its officers and will be signed by the Trustee or one or more of its officers. In the event that the Company issues shares without certificates, it may provide to the record holders of such shares such information as the Trustee or any officer determines to be necessary or advisable. The Company has engaged Fidelity Investments Institutional Operations Company LLC to act as the Company's registrar and as the transfer agent for the Company's Shares.

**Meetings and Special Voting Requirements** 

The Company is not required, by the Declaration of Trust or otherwise, to hold an annual meeting of its shareholders in any year. The Trustee may cause the Company to call meetings of the shareholders to act on any matter that may properly be brought before the shareholders and will cause the Company to call a meeting of the shareholders to act on any matter that may properly be brought before the shareholders upon the written request of shareholders entitled to cast at least a majority of the votes entitled to be cast on such matter, stating the purpose of such meeting. If there is no Trustee, the Company's officers (or, if there are none then serving, any shareholder) will promptly call a special meeting of the shareholders for the purpose of electing a successor Trustee. Any meeting of the shareholders will be held at the date, time and place as is fixed by the Trustee (or, if there is no Trustee, the officer calling such meeting) and stated in the notice of the meeting. Except as specified in the Declaration of Trust, shareholders are not entitled to call meetings of the shareholders. The Company will

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cause notice of any meeting of the shareholders, stating the time and place of the meeting, to be delivered to each shareholder entitled to vote at such meeting, and to each shareholder not entitled to vote who is entitled to notice of the meeting, not less than ten nor more than 90 days before such meeting. No business may be transacted at a meeting of the Company's shareholders except as specifically designated in the notice of the meeting.

At any meeting of shareholders, the presence in person or by proxy of shareholders entitled to cast a majority of all the votes entitled to be cast at such meeting on any matter that may properly come before the meeting will constitute a quorum. If a quorum is not established at any meeting of shareholders, the chairman of the meeting may conclude the meeting or adjourn the meeting from time to time without notice other than announcement at the meeting. At such adjourned meeting at which a quorum is present, any business may be transacted that might have been transacted at the meeting as originally notified.

Under the Company's Declaration of Trust, subject to certain exceptions, shareholders generally are entitled to vote at a duly held meeting at which a quorum is present only on (1) amendments to its Declaration of Trust as provided in the Company's Declaration of Trust, (2) a merger, consolidation or transfer of all or substantially all of its assets as provided in its Declaration of Trust, (3) removal of a trustee upon the occurrence of a "Cause Event" (as defined below) and the continuation of the Company's business and election of a replacement trustee as provided in its Declaration of Trust, (4) in the event that there is no trustee, the election of a successor trustee and (5) such other matters that the Company's Trustee has declared advisable and submitted to its shareholders for approval or ratification. Except with respect to the foregoing matters, no action taken by the Company's shareholders will in any way bind it or its Trustee. The affirmative vote of a majority of the votes cast at a meeting of shareholders duly called and at which a quorum is present is generally sufficient to approve any matter that may properly come before the shareholders at such meeting (other than (a) the removal of a trustee, which requires the affirmative vote of holders of Shares entitled to cast at least 75% of all the votes entitled to be cast on the matter and not held by the Trustee, the Investment Manager or their respective affiliates, executives, employees and officers (collectively, "Fidelity Persons"), (b) the continuation of the Company's business and election of a replacement trustee following removal of a trustee, which requires the affirmative vote of holders of Shares entitled to cast a majority of the votes entitled to be cast and not held by the Fidelity Persons, (c) a merger, consolidation, or transfer of all or substantially all of the Company's assets as provided in its Declaration of Trust, each of which requires the affirmative vote of shareholders entitled to cast a majority of all votes entitled to be cast on the matter, and (d) amendments to the Company's Declaration of Trust that materially and adversely affect the contract rights of outstanding Shares, which require the affirmative vote of shareholders entitled to cast a majority of the votes entitled to be cast on the matter). Shareholders have the power to remove its Trustee following the occurrence of a Cause Event and then only by the affirmative vote of holders of shares entitled to cast at least 75% of the votes entitled to be cast on the matter and not held by Fidelity Persons. "Cause Event" is defined by the Declaration of Trust as the entry of a final, non-appealable judgment, verdict or order by any court or governmental body of competent jurisdiction that either the Trustee or Investment Manager has committed acts or omissions in connection with the performance of their respective duties under the Declaration of Trust or the Investment Management Agreement, as applicable, that constitute fraud, bad faith, willful misconduct or gross negligence.

Any action required or permitted to be taken at a meeting of the Company's shareholders may be taken without a meeting if a consent in writing or by electronic transmission of shareholders entitled to cast not less than the minimum number of votes that would be necessary to authorize or take the action at a meeting of shareholders at which all shareholders are present and voting and setting forth the action is delivered to the Company.

Shareholders are not entitled to exercise any appraisal rights or the rights of an objecting shareholder.

Pursuant to the Company's Declaration of Trust, shareholders may, during usual business hours, inspect and copy the Declaration of Trust and all amendments thereto, minutes of the proceedings of the shareholders, the

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annual statement of affairs of the Company and any voting trust agreements on file at the Company's principal office to the extent permitted by the MSTA, but only if, and to the extent, such inspection is approved by the Trustee.

**Restrictions on Ownership and Transfer** 

The Company's Declaration of Trust contains restrictions on the number of shares of beneficial interest that a person or group may own. No person or group may acquire or hold, directly or indirectly through application of constructive ownership rules, in excess of 9.9% in value or number of Shares, whichever is more restrictive, of the Company's outstanding Shares or 9.9% in value or number of shares, whichever is more restrictive, of the Company's outstanding shares of beneficial interest of all classes or series unless such person or group receives an exemption (prospectively or retroactively) from the Trustee.

Subject to certain limitations, the Trustee, in its sole discretion, may exempt a person prospectively or retroactively from, or modify, these limits, subject to such terms, conditions, representations and undertakings as required by the Declaration of Trust and as the Trustee may determine. The Trustee may grant limited exemptions to certain persons who directly or indirectly own the Company's shares of beneficial interest.

The Declaration of Trust further prohibits any person from beneficially or constructively owning shares that would result in the Company's being "closely held" under Section 856(h) of the Code, or otherwise cause the Company to fail to qualify as a REIT and any person from transferring shares if the transfer would result in shares of beneficial interest being beneficially owned by fewer than 100 persons. Any person who acquires or intends to acquire shares that may violate any of these restrictions, or who is the intended transferee of shares which are transferred to the Charitable Trust (as defined below), is required to give the Company immediate written notice, or in the case of a proposed or attempted transaction, give at least 15 days prior written notice, and provide the Company with such information as it may request in order to determine the effect of the transfer on its status as a REIT. The above restrictions will not apply if the Trustee determines that it is no longer in the Company's best interests to continue to qualify as a REIT or that compliance with such restrictions is no longer required for the Company to qualify as a REIT.

Any attempted transfer of shares which, if effective, would result in violation of the above limitations, except for a transfer which results in shares being beneficially owned by fewer than 100 persons, in which case such transfer will be void and of no force and effect and the intended transferee will acquire no rights in such shares, will cause the number of shares causing the violation, rounded to the nearest whole share, to be automatically transferred to a trust (the "Charitable Trust") for the exclusive benefit of one or more charitable beneficiaries designated by the Company and the proposed transferee will not acquire any rights in the shares. The automatic transfer will be deemed to be effective as of the close of business on the business day, as defined in the Declaration of Trust, prior to the date of the transfer. Shares held in the Charitable Trust will be issued and outstanding shares. The proposed transferee will not benefit economically from ownership of any shares of stock held in the Charitable Trust, will have no rights to dividends and no rights to vote or other rights attributable to the shares held in the Charitable Trust. The trustee of the Charitable Trust will have all voting rights and rights to dividends or other distributions with respect to shares held in the Charitable Trust. These rights will be exercised for the exclusive benefit of the charitable beneficiaries. Any dividend or other distribution paid prior to the Company's discovery that shares have been transferred to the Charitable Trust will be paid by the recipient to the trustee of the Charitable Trust upon demand. Any dividend or other distribution authorized but unpaid will be paid when due to the trustee of the Charitable Trust. Any dividend or other distribution paid to the trustee of the Charitable Trust will be held in trust for the charitable beneficiaries. Subject to Maryland law, the trustee of the Charitable Trust will have the authority to rescind as void any vote cast by the proposed transferee prior to the Company's discovery that the shares have been transferred to the Charitable Trust and to recast the vote in accordance with the desires of the trustee acting for the benefit of the charitable beneficiaries. However, if the Company has already taken irreversible corporate action, then the trustee of the Charitable Trust will not have the authority to rescind and recast the vote.

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Within 20 days of receiving notice from the Company that shares have been transferred to the Charitable Trust, the trustee of the Charitable Trust will sell the shares to a person designated by the trustee, whose ownership of the shares will not violate the above ownership limitations. Upon the sale, the interest of the charitable beneficiaries in the shares sold will terminate and the trustee will distribute the net proceeds of the sale to the proposed transferee and to the charitable beneficiaries as follows. The proposed transferee will receive the lesser of (i) the price paid by the proposed transferee for the shares or, if the proposed transferee did not give value for the shares in connection with the event causing the shares to be held in the Charitable Trust, such as a gift, devise or other similar transaction, the market price, as defined in the Declaration of Trust, of the shares on the day of the event causing the shares to be held in the trust and (ii) the price per share received by the trustee of the Charitable Trust from the sale or other disposition of the shares (net of any commissions and other expenses of sale). The trustee of the Charitable Trust may reduce the amount payable to the proposed transferee by the amount of dividends and other distributions which have been paid to the proposed transferee and are owed by the proposed transferor to the transferee. Any net sale proceeds in excess of the amount payable per share to the proposed transferee will be paid immediately to the charitable beneficiaries. If, prior to the Company's discovery that shares have been transferred to the Charitable Trust, the shares are sold by the proposed transferee, then the shares shall be deemed to have been sold on behalf of the Charitable Trust and, to the extent that the proposed transferee received an amount for the shares that exceeds the amount such proposed transferee was entitled to receive, the excess will be paid to the trustee of the Charitable Trust upon demand.

In addition, shares held in the Charitable Trust will be deemed to have been offered for sale to the Company, or its designee, at a price per share equal to the lesser of (i) the price per share in the transaction that resulted in the transfer to the Charitable Trust, or, in the case of a devise or gift, the market price at the time of the devise or gift and (ii) the market price on the date the Company, or its designee, accepts the offer. The Company will have the right to accept the offer until the trustee of the Charitable Trust has sold the shares. Upon a sale to the Company, the interest of the charitable beneficiaries in the shares sold will terminate and the trustee will distribute the net proceeds of the sale to the proposed transferee. The Company may reduce the amount payable to the proposed transferee by the amount of dividends and other distributions which have been paid to the proposed transferor and are owed to the proposed transferor to the trustee. The Company may pay the amount of such reduction to the trustee for the benefit of the charitable beneficiaries.

If the transfer to the Charitable Trust as described above is not automatically effective for any reason to prevent violation of the above limitations or the Company failing to qualify as a REIT, then the transfer of the number of shares that otherwise cause any person to violate the above limitations will be void and the intended transferee will acquire no rights in such shares.

All certificates, if any, evidencing shares issued in the future will bear a legend referring to the restrictions described above.

Every owner of more than 5.0% of the outstanding shares of beneficial interest during any taxable year, or such lower percentage as required by the Code or the regulations promulgated thereunder or as otherwise required by the Trustee, within 30 days after the end of each taxable year, is required to give the Company written notice, stating the owner's name and address, the number of shares of each class and series which such owner beneficially owns and a description of the manner in which the shares are held. Each such owner is required to provide the Company with such additional information as it may request in order to determine the effect, if any, of the Company's beneficial ownership on the Company's status as a REIT and to ensure compliance with the ownership limits. In addition, each shareholder will, upon demand, provide the Company with such information as it may request in good faith in order to determine its status as a REIT and to comply with the requirements of any taxing authority or governmental authority or to determine such compliance.

Without the consent of the Trustee, which consent may be withheld in the Trustee's sole and absolute discretion, no transfer of shares may be made if the transfer would (i) violate the restrictions on ownership and transfer of Shares described above or otherwise cause the Company to cease to qualify as a REIT, or (ii) the

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transfer would violate the terms and conditions of any federal or state securities laws or other law, rule or regulation applicable to the transfer or the transferring shareholder. The Trustee may, in its sole and absolute discretion, condition any such transfer on the receipt of an opinion of counsel (satisfactory to the Trustee as to the opinion and counsel), documentation and information as the Trustee may reasonably request.

**Number of Trustees; Vacancies; Removal of Trustee** 

The Company's Declaration of Trust provides that its business and affairs is managed exclusively by or under the direction of a single trustee, who is appointed and serves in accordance with the Declaration of Trust. The Trustee may resign at any time and may appoint its successor. The Trustee may be removed by the affirmative vote of holders of Shares entitled to cast at least 75% of the votes entitled to be cast and not held by Fidelity Persons upon the occurrence of a Cause Event. The removal of a Trustee by the shareholders will constitute a Dissolution Event and will require the Company's dissolution unless, within 90 days after the date of such removal, holders of Shares entitled to cast at least a majority of the votes entitled to be cast and not held by Fidelity Persons agree to continue its business and to the election of a replacement trustee.

**Amendment to the Company's Declaration of Trust** 

Except as provided by the Company's Certificate of Trust or the terms of any classes or series of shares and as provided below, the Company's Declaration of Trust may be amended by its Trustee, without any action by its shareholders. Amendments to the Company's Declaration of Trust that materially and adversely affect the contract rights of the Company's outstanding shares, but excluding amendments to classify or reclassify any unissued shares and set or change the number, par value, designations, preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of the class or series of shares, must be approved by the Company's Trustee and shareholders entitled to cast a majority of the votes entitled to be cast on the matter.

**Conversion Event** 

The Company may convert into another form of entity provided that such conversion is approved by the Trustee. No vote of the Company's shareholders is required in connection with any conversion approved by the Trustee. In addition, the Trustee may, in its sole and absolute discretion and without any action by the shareholders, cause the Company to take all actions deemed necessary and appropriate by the Trustee and its legal and other professional advisers in order to effect its transition into an investment vehicle that intends to, among other things, offer one or more classes of shares in a continuous public offering registered under the Securities Act and applicable state securities laws (the "Public REIT Conversion"), including conducting a public offering as a non-listed real estate investment trust subject to the Statement of Policy Regarding Real Estate Investment Trusts published by the North American Securities Administrators Association on May 7, 2007 (the "NASAA REIT Guidelines"). In connection with such determination and the conduct of such public offering, the Trustee may amend the Company's Declaration of Trust as the Trustee deems necessary or appropriate in connection with a Public REIT Conversion in order to (i) incorporate the terms and conditions required by the NASAA REIT Guidelines into the Declaration of Trust and (ii) allow the Company to complete the Public REIT Conversion in accordance with all applicable federal and state laws, rules and regulations and prevailing market norms.

**Effect of Certain Provisions of Maryland Law and of the Company's Declaration of Trust** 

Certain provisions of Maryland law and the Company's Declaration of Trust could delay, defer or prevent a transaction or a change in control of the Company that might involve a premium price for shareholders or otherwise be in their best interest.

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**Distribution Policy** 

Pursuant to the Declaration of Trust, the Trustee may from time to time authorize or cause the Company to pay such distributions to its shareholders, in cash or other assets of the Company's or in its securities or from any other source as the Trustee may determine. Before payment of any distributions, the Trustee may set aside out of any of the Company's funds available for distributions such amounts as the Trustee may from time to time reserve for any Trust purpose, and the Trustee may modify or abolish any such reserve. Shareholders have no right to any distribution unless and until authorized by the Trustee and declared by the Company, and then only at the time and in the amount and form authorized by the Trustee.

The Company commenced paying a quarterly distribution in March 2023. The Company intends to continue to declare distributions based on record dates established by the Trustee and to pay such distributions on a quarterly basis. The Company's distribution policy is set by the Trustee and is subject to change based on available cash flows. The Company cannot guarantee the amount of distributions paid, if any. In connection with a distribution to the shareholders, the Trustee approves a quarterly distribution for a certain dollar amount per Share. The Company then calculates each shareholder's specific distribution amount using applicable record and declaration dates.

To qualify as a REIT, the Company is required to pay distributions sufficient to satisfy the requirements for qualification as a REIT for tax purposes. The Company intends to distribute sufficient income so that it satisfies the requirements for qualification as a REIT. In order to qualify as a REIT, the Company is required to distribute to its shareholders 90% of its annual REIT taxable income, determined without regard to the dividends-paid deduction and excluding net capital gains.

Distributions will be authorized at the discretion of the Trustee, in accordance with the Company's earnings, cash flows, and general financial condition. The Trustee's discretion is directed, in substantial part, by its obligation to cause the Company to comply with the REIT requirements. Because the Company may receive income from interest or rents at various times during its fiscal year, distributions may not reflect the Company's income earned in that particular distribution period but may be made in anticipation of cash flows which it expects to receive during a later period and may be made in advance of actual receipt of funds in an attempt to make distributions relatively uniform. Due to these timing differences, the Company may be required to borrow money, use proceeds from the issuance of securities or sell assets in order to distribute amounts sufficient to satisfy the requirement that it distributes at least 90% of the Company's REIT taxable income in order to qualify as a REIT.

There is no assurance that it will pay distributions in any particular amount, if at all. The Company may fund any distributions from sources other than cash flow from operations, including, without limitation, the sale of its assets, borrowings or offering proceeds, and the Company has no limits on the amounts that it may pay from such sources. The extent to which the Company pays distributions from sources other than cash flow from operations will depend on various factors, including how quickly the Company invests the proceeds from its ongoing private offering and any future securities offerings and the performance of its investments. Funding distributions from the sale of the Company's assets, borrowings or proceeds of its private offering will result in the Company having less funds available to make investments. As a result, the return that the Company's shareholders realize on an investment in Shares may be reduced. Doing so may also negatively impact its ability to generate cash flows. Funding distributions from the sale of additional securities will dilute existing shareholders' interest in the Company on a percentage basis and may impact the value of an investment in Shares.

**Shareholder Liability** 

Shareholders are entitled to the same limitation of personal liability extended to shareholders of a Maryland corporation as provided for by the MSTA. The Company's Declaration of Trust provides that no shareholder is liable for any debt, claim, demand, judgment or obligation of any kind of, against or with respect to the Company by reason of being a shareholder, nor will any shareholder be subject to any personal liability whatsoever, in tort, contract or otherwise, to any person in connection with the Company's assets by reason of being a shareholder.

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**Distribution Reinvestment Plan** 

The Company has adopted a DRIP whereby its shareholders may elect to have the cash distributions otherwise payable to them by the Company automatically reinvested in additional Shares. If any shareholder initially elects not to be a participant in the DRIP, they may later become a participant by subsequently completing and executing an enrollment form or any appropriate authorization form as the Company may make available. Shares acquired under the DRIP will entitle the participant to the same rights and be treated in the same manner as Shares purchased in the Company's private offering.

Any cash distributions attributable to the Shares owned by participants who elect to participate in the DRIP will be immediately reinvested in additional Shares on behalf of the participants on the business day such distributions would have been paid to such participants. The per Share purchase price for Shares purchased pursuant to the DRIP will be equal to the transaction price for Shares at the time the distribution is payable (which will generally be equal to the most recently determined NAV per Share as of the distribution payment date). For example, with respect to a quarterly distribution with a March 31st record date that is paid on April 25<sup>th</sup>, the price per Share pursuant to the DRIP will generally be the NAV per Share calculated as of March 31<sup>st</sup> (the most recently determined NAV per Share as of distribution payment date).

The Trustee may amend or suspend the DRIP for any reason at any time without the consent of its shareholders, provided that notice of any such amendment or suspension will be disclosed in a notice to its shareholders. Participants may terminate their participation in the DRIP upon ten business days' prior written notice to the Company. If a participant in the DRIP requests that it repurchases all of the participant's Shares pursuant to the SRP, the participant's participation in the DRIP will be automatically terminated, whether or not all of the participant's Shares are actually repurchased.

Each participant in the DRIP is required to promptly notify the Company in writing if such participant experiences a material change in his, her or its financial condition, including without limitation the failure to continue to qualify as an "accredited investor" (as defined by Regulation D of the Securities Act) or any other investment suitability standards imposed by the Company. In addition, each participant in the DRIP may be required to provide an annual certification of its continued qualification as an accredited investor.

Each participant in the DRIP will receive statements of account describing, as to such participant, (i) the distributions reinvested during the applicable period, (ii) the number of Shares purchased during the applicable period, (iii) the per Share purchase price for such Shares and (iv) the total number of Shares purchased on behalf of the participant under the DRIP. On an annual basis, tax information with respect to income earned on Shares under the DRIP for the calendar year will be provided to each applicable participant.

**Share Repurchase Plan** 

***General***

Pursuant to the Company's Declaration of Trust, the Company's shareholders have no right to require the redemption of their Shares or to otherwise withdraw from the Company. However, the Declaration of Trust authorizes the Company to adopt from time to time programs by which the Company voluntarily repurchases Shares.

While the Company's shareholders should view an investment in the Shares as long term with limited liquidity, pursuant to the SRP, the Company's shareholders may request that the Company repurchase all or any portion of their Shares on a quarterly basis. Due to the illiquid nature of investments in real estate, the Company may not have sufficient liquid resources to fund repurchase requests. In addition, the Company has established limitations on the amount of funds it may use for repurchases during any calendar quarter. See "—*Repurchase Limitations*" below. The first quarterly Repurchase Date (as defined below) upon which Shares were eligible for repurchase by the Company pursuant to the SRP was March 31, 2026.

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Shareholders may request that the Company repurchase Shares through their financial intermediary or directly through Fidelity's online portal or the Company's transfer agent. The procedures relating to the repurchase of Shares are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial intermediaries will require that their clients process repurchases through such financial intermediary,
which may impact the time necessary to process such repurchase request, impose more restrictive deadlines than described under the SRP, impact the timing of a shareholder receiving repurchase proceeds and require different paperwork or process than
described in the SRP. Shareholders should contact their financial intermediary or financial advisor for additional instructions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under the SRP, to the extent the Company chooses to repurchase Shares in any particular quarter, the Company will
only repurchase Shares as of the opening of the last calendar day of that quarter (a "Repurchase Date"). To have Shares repurchased, a shareholder's repurchase request and required documentation must be received by the
Company's transfer agent in good order by 4:00 p.m. (Eastern time) on the second to last business day of the applicable quarter. Settlements of Share repurchases will generally be made within five business days of the Repurchase Date.
Repurchase requests received and processed by the Company's transfer agent will be effected on each Repurchase Date at a repurchase price equal to the transaction price applicable to such Repurchase Date (which will generally be equal to the
most recently determined NAV per Share as of the Repurchase Date), subject to any Early Repurchase Deduction (as defined below). A shareholder will not be entitled to receive any distributions declared with respect to any Shares that are repurchased
prior to the applicable time of the record date for such distributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For example, if a shareholder wishes to request the repurchase of its Shares as of the June 30, 2026
Repurchase Date, its repurchase request must be received in good order by 4:00 p.m. (Eastern time) on June 29, 2026 (*i.e*., the second to last Business Day of that quarter). The repurchase price received by such investor when its Shares
are repurchased (if at all) on the June 30, 2026 Repurchase Date will generally equal the NAV per Share as of May 31, 2026 (*i.e*., the most recently determined NAV per Share as of the Repurchase Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A shareholder may withdraw such shareholder's repurchase request by utilizing Fidelity's online
portal or notifying the Company's transfer agent, directly or through the shareholder's financial intermediary. Repurchase requests must be cancelled before 4:00 p.m. (Eastern time) on the last business day of the applicable quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If a repurchase request is received by the Company's transfer agent after 4:00 p.m. (Eastern time) on the
second to last business day of the applicable quarter, the repurchase request will be executed, if at all, on the next quarter's Repurchase Date at the transaction price applicable to that quarter (subject to any Early Repurchase Deduction),
unless such request is withdrawn prior to the repurchase. Repurchase requests received and processed by the Company's transfer agent on a business day, but after the close of business on that day or on a day that is not a business day, will be
deemed received on the next business day. All questions as to the form and validity (including time of receipt) of repurchase requests and notices of withdrawal will be determined by the Company, in its sole discretion, and such determination shall
be final and binding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shareholders may make repurchase requests by contacting the shareholder's financial intermediary.
Repurchase requests will be subject to the terms of the SRP. A shareholder's financial intermediary may require the shareholder to execute a repurchase authorization form and provide certain other documentation or information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Corporate investors and other non-individual entities must have an
appropriate certification on file authorizing repurchases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shareholders that hold Shares directly through their Fidelity brokerage account will generally have the
repurchase proceeds credited to their brokerage account.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shareholders may also receive repurchase proceeds via wire transfer, provided that wiring instructions for their
brokerage account or designated U.S. bank account are provided. For all repurchases paid via wire transfer, the funds will be wired to the account on file with the transfer agent or, upon instruction, to another financial institution provided that
the shareholder has made the necessary funds transfer arrangements. Shareholders should contact their Fidelity advisor or other financial intermediary for detailed instructions on establishing funding arrangements and designating a bank or brokerage
account on file. Funds will be wired only to U.S. financial institutions (ACH network members).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If a Shareholder has made multiple purchases of Shares, any repurchase request will be processed (i) for
shareholders who purchased their Shares directly through their Fidelity brokerage account, on the basis specified on the shareholder's Fidelity brokerage account, and (ii) for shareholders who purchased their Shares via a different
financial intermediary, on a first in/first out basis unless otherwise requested in the repurchase request. Notwithstanding the foregoing, any repurchase by any shareholder that is subject to the Early Repurchase Deduction will be processed on a
first in/first out basis.

***Minimum Account Repurchases***

In the event that any shareholder holds less than a single Share, the Company may repurchase the remaining percentage of such partial Share held by that shareholder at the repurchase price in effect on the date the Company determines that such shareholder has failed to meet the single Share ownership requirement, less any Early Repurchase Deduction if applicable. In the event that a shareholder submits a partial repurchase request that would result in such shareholder holding less than one full Share, the Company may in its discretion request that such shareholder request a complete redemption of all of its Shares or modify the repurchase request such that the shareholder holds at least a single full Share.

***Sources of Funds for Repurchases***

The Company may fund repurchase requests from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds (including from sales of Shares or Operating Partnership units), and the Company has no limits on the amounts it may pay from such sources.

***Repurchase Limitations***

The Company may repurchase fewer Shares than have been requested in any particular quarter to be repurchased under the SRP, or none at all, in its discretion at any time. In addition, the aggregate NAV of total repurchases of Shares of all classes under the SRP will be limited to no more than 5% of the Company's aggregate NAV per calendar quarter (measured using the average aggregate NAV attributable to shareholders as of the end of the immediately preceding three months). For example, such 5% limitation for a June 30<sup>th</sup> Repurchase Date will be based upon the average of the Company's March 31<sup>st</sup>, April 30<sup>th</sup> and May 31<sup>st</sup> NAVs.

In the event that the Company determines to repurchase some, but not all of the Shares submitted for repurchase during any quarter under the SRP, Shares submitted for repurchase during such quarter will be repurchased on a pro rata basis. All unsatisfied repurchase requests must be resubmitted by the shareholder, or upon the recommencement of the SRP, as applicable.

If the transaction price applicable to a quarter is not made available by the tenth business day prior to the last business day of such quarter (or is changed after such date), then no repurchase requests will be accepted for such quarter and shareholders who wish to have their Shares repurchased the following quarter must resubmit their repurchase requests. The transaction price applicable to each quarter will be made available on the Company's website at *institutional.fidelity.com*.

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Should repurchase requests, in the Trustee's judgment, place an undue burden on the Company's liquidity, adversely affect the Company's operations or impose an adverse impact on the Company as a whole, or should the Trustee otherwise determine that investing the Company's liquid assets in real properties or other investments rather than repurchasing Shares is in the best interests of the Company as a whole, the Trustee may determine to repurchase fewer Shares in any particular quarter than have been requested to be repurchased (including relative to the 5% quarterly limit under the SRP), or none at all. Further, the Trustee may, in certain circumstances, make exceptions to such repurchase limitations (or repurchase fewer Shares than such repurchase limitations), or modify or suspend the SRP if, in its reasonable judgment, it deems such action to be in the best interest of the Company and its shareholders. Shareholders will be promptly notified of material modifications to and suspensions of the SRP. In addition, the Company may disclose such material amendments to or suspensions of the SRP in a supplement to the Company's private placement memorandum or in a special or periodic report filed by the Company with the Securities and Exchange Commission. In addition, the Company may determine to suspend the SRP due to regulatory changes, changes in law or if the Company becomes aware of undisclosed material information that it believes should be disclosed before Shares are repurchased. Upon the determination by the Trustee to (i) suspend the SRP or (ii) materially modify the SRP in a manner that reduces liquidity available to the shareholders, the Trustee will consider, at least quarterly, whether continuing to restrict repurchases or resuming repurchases at the original repurchase limits set forth in the SRP would be in the best interests of the Company and its shareholders. The Trustee must affirmatively authorize the recommencement of the SRP if it is suspended before shareholder requests will be considered again. The Trustee cannot terminate the SRP absent a liquidity event which results in shareholders receiving cash or securities listed on a national securities exchange or where otherwise required by law.

Shares held by the Investment Manager acquired as payment of the Management Fee or the Incentive Fee will not be subject to the SRP, including with respect to any repurchase limits or the Early Repurchase Deduction.

Shareholders who are exchanging a class of Shares for an equivalent aggregate NAV of another class of Shares will not be subject to, and will not be treated as repurchases for the calculation of, the 5% quarterly limitation on repurchases and will not be subject to the Early Repurchase Deduction.

***Early Repurchase Deduction***

There is no minimum holding period for Shares and shareholders can request that the Company repurchase their Shares at any time. However, subject to limited exceptions, Shares that have not been outstanding for at least one year will be repurchased at 98% of the applicable transaction price (an "Early Repurchase Deduction") on the applicable Repurchase Date. The Early Repurchase Deduction will generally apply to minimum account repurchases. The Early Repurchase Deduction will not apply to shares acquired through the DRIP.

The one-year holding period is measured as of the first calendar day immediately following the prospective Repurchase Date (for example, Shares repurchased as of a June 30<sup>th</sup> Repurchase Date will not be subject to the Early Repurchase Deduction if, as of July 1<sup>st</sup> (the calendar day immediately following the Repurchase Date), such Shares have been issued and outstanding for at least 365 days).

Shares repurchased will be treated as having been repurchased on a "first-in–first-out" basis for purposes of determining whether and to what extent the Early Repurchase Deduction is applicable. Therefore, the portion of Shares repurchased will be deemed to have been taken from the earliest Shares purchased by such shareholder for purposes of determining whether and to what extent the Early Repurchase Deduction is applicable, except that in all cases shares issued pursuant to the DRIP will be treated as having been repurchased first.

The Company may waive the Early Repurchase Deduction due to a trade or operational error.

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##### [**Table of Contents**](#toc)
***Items of Note***

When shareholders make a request to have Shares repurchased, shareholders should note the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under applicable anti-money laundering regulations and other federal regulations, repurchase requests may be
suspended, restricted or canceled and the proceeds may be withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• IRS regulations require the Company to determine and disclose on Form 1099-B the adjusted cost basis for Shares sold or repurchased. For shareholders who hold their Shares directly through their Fidelity brokerage account, the Company will utilize the basis specified on the
shareholder's Fidelity brokerage account. For shareholders who purchased their Shares via a different financial intermediary, the Company will utilize the first in/first out basis unless otherwise requested in the repurchase request.
Notwithstanding the foregoing, for any repurchase by any shareholder that is subject to the Early Repurchase Deduction, the Company will utilize the first in/first out basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All Shares requested to be repurchased must be beneficially owned by the shareholder of record making the request
or his or her estate, heir or beneficiary, or the party requesting the repurchase must be authorized to do so by the shareholder of record of the Shares or his or her estate, heir or beneficiary, and such Shares must be fully transferable and not
subject to any liens or encumbrances. In certain cases, the Company may ask the requesting party to provide evidence satisfactory to the Company that the Shares requested for repurchase are not subject to any liens or encumbrances. If the Company
determines that a lien exists against the Shares, the Company will not be obligated to repurchase any Shares subject to the lien.

***Frequent Trading and Other Policies***

The Company may reject for any reason, or cancel as permitted or required by law, any purchase orders for Shares. For example, the Company may reject any purchase orders from market timers or investors that, in the Company's opinion, may be disruptive to its operations. Frequent purchases and sales of Shares can harm shareholders in various ways, including reducing the returns to long-term shareholders by increasing the Company's costs, disrupting portfolio management strategies and diluting the value of the Shares of long-term shareholders.

**Mandatory Redemptions** 

Pursuant to the Declaration of Trust, the Company has the right, in the sole and absolute discretion of the Trustee, to redeem any shareholder's outstanding Shares, in whole or in part, for any reason, including, without limitation, if it is determined by the Trustee in its sole and absolute discretion that such shareholder's continued ownership of Shares (i) would result in the Company's failing or ceasing to qualify as a REIT, (ii) would result in all or any portion of the Company's assets constituting Plan Assets (as defined in the Declaration of Trust), or (iii) would otherwise violate any law applicable to us. Any Shares redeemed by the Company in accordance with the foregoing will be purchased at a price per Share equal to the NAV per Share as of the last day of the month immediately prior to the applicable redemption date.

**Reports to Shareholders** 

Pursuant to the Declaration of Trust, the Company will cause to be prepared and transmitted or made available to the Company's shareholders, (i) within 120 days after the end of each fiscal year or as soon as is reasonably practicable thereafter, audited financial statements of the Company prepared in accordance with the terms of GAAP, and (ii) within 60 days after the end of the first three fiscal quarters of each fiscal year or as soon as is reasonably practicable thereafter, quarterly financial updates.

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##### [**Table of Contents**](#toc)
**Item 12. Indemnification of Trustees and Officers** 

**Declaration of Trust** 

Maryland law provides that a trustee will not have any liability by reason of being or having been a trustee so long as he or she performs or performed his or her duties as a trustee in accordance with the applicable standard of conduct. In addition, the Company's Declaration of Trust limits the personal liability of its Trustee and the Company's officers, to the Company or its shareholders, for monetary damages, to the maximum extent permitted by Maryland law. Neither the amendment nor repeal of the provisions of the Declaration of Trust so limiting the liability of the Trustee and the Company's officers, nor the adoption or amendment of any other provision of the Declaration of Trust inconsistent with such provisions, will apply to or affect in any respect such limitation of the liability of the Trustee and the Company's officers with respect to any act or failure to act that occurred prior to such amendment, repeal or adoption.

To the maximum extent permitted by Maryland law in effect from time to time, the Company will indemnify and hold harmless the Trustee, the Investment Manager, any of their respective affiliates, any officer, director, member, manager, partner, shareholder, employee, consultant or agent of any of the foregoing, and any other person who serves at the request of the Trustee on the Company's behalf (each, an "Indemnified Person"), from and against any loss or damage incurred by any such Indemnified Person, for any act or omission or any alleged act or omission taken or suffered by each Indemnified Person (including, without limitation, any act or omission performed or omitted by such Indemnified Person in reasonable reliance upon, and in accordance with, the opinion or advice of experts, including, without limitation, legal counsel as to matters of law, accountants as to matters of accounting, or investment bankers or appraisers as to matters of valuation) in connection with the Company or its investments, including costs and reasonable attorneys' fees, all judgments and claims and any amount expended in the settlement of, or defense of, any actual or threatened claim, proceeding or action; *provided, however*, that no such indemnification will be provided to any Indemnified Person with respect to any act or omission: (i) with respect to which a court of competent jurisdiction (or other similar tribunal) has issued a final, non-appealable decision, judgment or order or with respect to which such Indemnified Person has entered a plea of nolo contendere or its equivalent, as the case may be, that such Indemnified Person acted with bad faith or active or deliberate dishonesty, received an improper personal benefit in money, property or services, was grossly negligent, engaged in willful misconduct or fraud or, in the case of any criminal proceeding, had reasonable cause to believe that such Indemnified Person's act or omission was unlawful, was grossly negligent, or engaged in willful misconduct or fraud, (ii) by such Indemnified Person that constitutes a willful and material breach of the Declaration of Trust (and such breach, if curable, was not cured within 30 days after receipt of notice of such breach or 30 days after such Indemnified Person becomes aware of such breach) and such breach of the Declaration of Trust has or is reasonably likely to have a material adverse effect on the Company, or (iii) with respect to which a court of competent jurisdiction (or other similar tribunal) has issued a final, non-appealable decision, judgment or order that such Indemnified Person materially violated applicable U.S. federal or state securities laws and such violation has or is reasonably likely to have a material adverse effect on the Company.

In addition, the Company will promptly pay or reimburse, in advance of final disposition of a proceeding, expenses reasonably incurred by an Indemnified Person in defense or settlement of any claim, action or proceeding that may be subject to a right of indemnification under the Declaration of Trust (including, without limitation, attorneys' fees and other costs and expenses) upon receipt of an undertaking by, or on behalf, of such Indemnified Person to repay such amount to the extent that it shall be determined upon final decision, judgment or order that such Indemnified Person is not entitled to be indemnified hereunder.

Neither the amendment nor repeal of the provisions of the Declaration of Trust providing for such indemnification of and advancement of expenses to Indemnified Persons, nor the adoption or amendment of any other provision of the Declaration of Trust inconsistent with such provisions, will apply to or affect in any respect the applicability of such rights to indemnification and advancement of expenses with respect to any act or failure to act which occurred prior to such amendment, repeal or adoption.

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##### [**Table of Contents**](#toc)
**Indemnification Agreements** 

The Company has not entered into any separate indemnification agreements with its Trustee or any of the Company's officers.

**Investment Management Agreement** 

Pursuant to the Investment Management Agreement, the Company and the Operating Partnership will, to the fullest extent permitted by applicable law, jointly and severally indemnify and hold harmless and pay all judgments and claims against the Investment Manager and any of its respective affiliates, officers, directors, members, managers, partners, shareholders, employees, consultants or agents (each, an "Investment Manager Indemnitee") from and against any loss or damage incurred by them, for any act or omission or any alleged act or omission taken or suffered by each Investment Manager Indemnity (including, without limitation, any act or omission performed or omitted by any Investment Manager Indemnitee in reasonable reliance upon, and in accordance with, the opinion or advice of experts, including, without limitation, of legal counsel as to matters of law, of accountants as to matters of accounting, or of investment bankers or appraisers as to matters of valuation) in connection with the Company, the Operating Partnership, or the Company's investments, including costs and reasonable attorneys' fees and any amount expended in the settlement of, or defense of, any actual or threatened claim, proceeding or action, except with respect to any Indemnified Person, any act or omission: (i) with respect to which a court of competent jurisdiction (or other similar tribunal) has issued a final, non-appealable decision, judgment or order or upon entering a plea of nolo contendere or its equivalent, as the case may be, that such Investment Manager Indemnitee was grossly negligent, or engaged in willful misconduct or fraud; (ii) by such Investment Manager Indemnitee that constitutes a willful and material breach of the Investment Management Agreement (and such breach, if curable, was not cured within 30 days after receipt of notice of such breach from the Trustee or 30 days after such Investment Manager Indemnitee becomes aware of such breach) and such breach has or is reasonably likely to have a material adverse effect on the Company or the Operating Partnership; or (C) with respect to which a court of competent jurisdiction (or other similar tribunal) has issued a final, non-appealable decision, judgment or order that such Investment Manager Indemnitee materially violated applicable U.S. federal or state securities laws and such violation has or is reasonably likely to have a material adverse effect on the Company or the Operating Partnership.

**Item 13. Financial Statements and Supplementary Data** 

See "Index to Financial Statements" on page F-1 of this Form 10.

**Item 14. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure** 

There are not and have not been any disagreements between the Company and its accountant on any matter of accounting principles, practices, or financial statement disclosure.

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##### [**Table of Contents**](#toc)
**Item 15. Financial Statements and Exhibits** 

---

| | |
|:---|:---|
| **Financial** | **Statements**  |

---

See "Index to Financial Statements and Schedule" on page F-1 of this Form 10.

---

| | |
|:---|:---|
| **Exhibits<br>No.** | **Description** |
| 3.1\* | [Certificate of Trust of Fidelity Core Real Estate Fund](d91905dex31.htm) |
| 3.2\* | [Amendment to Certificate of Trust of Fidelity Core Real Estate Fund](d91905dex32.htm) |
| 3.3\* | [Amendment to Certificate of Trust of Fidelity Core Real Estate Fund](d91905dex33.htm) |
| 3.4\* | [Declaration of Trust of Fidelity Core Real Estate Fund](d91905dex34.htm) |
| 4.1\* | [Fidelity Core Real Estate Fund Distribution Reinvestment Plan](d91905dex41.htm) |
| 4.2\* | [Fidelity Core Real Estate Fund Share Repurchase Program](d91905dex42.htm) |
| 10.1\* | [Second Amended and Restated Investment Management Agreement, dated December 19, 2024 and effective as of January 1, 2025, by and among Fidelity Core Real Estate Fund, Fidelity Core Real Estate Operating Partnership LP, and Fidelity Diversifying Solutions LLC](d91905dex101.htm) |
| 10.2\* | [Second Amended and Restated Limited Partnership Agreement of Fidelity Core Real Estate Operating Partnership LP, dated December 19, 2024 and effective as of January 1, 2025](d91905dex102.htm) |
| 10.3\* | [Amended and Restated Credit Agreement, dated as of March 18, 2026, among Fidelity Core Real Estate Operating Partnership LP, FMR LLC, and the Additional Borrowers party thereto](d91905dex103.htm) |
| 21.1\* | [List of Subsidiaries of Fidelity Core Real Estate Fund](d91905dex211.htm) |

---

\* Filed herewith.

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##### [**Table of Contents**](#toc)
**SIGNATURES** 

Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **Fidelity Core Real Estate Fund** | **Fidelity Core Real Estate Fund** |
| Date: April 28, 2026 |  | /s/ Ellen Hall |
|  |  | Name: Ellen Hall |
|  |  | Title: President (principal executive officer) |

---

---

| | | |
|:---|:---|:---|
|  | **Fidelity Core Real Estate Fund** | **Fidelity Core Real Estate Fund** |
| Date: April 28, 2026 |  | /s/ Heather Bonner |
|  |  | Name: Heather Bonner |
|  |  | Title: Treasurer (principal financial officer and principal accounting officer) |

---

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##### [**Table of Contents**](#toc)
**Index to Consolidated Financial Statements** 

---

| | |
|:---|:---|
|  | **Page**<br>**Number** |
|  [Report of Independent Registered Public Accounting Firm](#fin91905_1) | F-2 |
|  [Consolidated Balance Sheets as of December 31, 2025 and 2024](#fin91905_2) | F-3 |
|  [Consolidated Statements of Operations for the Years Ended December 31, 2025 and 2024](#fin91905_3) | F-4 |
|  [Consolidated Statements of Changes in Equity for the Years Ended December 31, 2025 and 2024](#fin91905_4) | F-5 |
|  [Consolidated Statements of Cash Flows for the Years Ended December 31, 2025 and 2024](#fin91905_5) | F-6 |
|  [Notes to Consolidated Financial Statements](#fin91905_6) | F-7 |
|  Financial Statement Schedule: |  |
|  [Schedule III - Real Estate and Accumulated Depreciation as of December 31, 2025](#fin91905_7) | F-26 |

---

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##### [**Table of Contents**](#toc)
**Report of Independent Registered Public Accounting Firm** 

To the Board of Directors and Shareholders of Fidelity Core Real Estate Fund

***Opinion on the Financial Statements***

We have audited the accompanying consolidated balance sheets of Fidelity Core Real Estate Fund and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of operations, of changes in equity and of cash flows for the years then ended, including the related notes and financial statement schedule listed in the accompanying index (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

***Basis for Opinion***

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

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

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, 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 consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

Boston, Massachusetts

March 25, 2026, except for the additional disclosures made in preparation for an SEC filing discussed in Note 2, as to which the date is April 28, 2026

We have served as the Company's auditor since 2023.

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##### [**Table of Contents**](#toc)
**Fidelity Core Real Estate Fund** 

**Consolidated Financial Statements** 

**Consolidated Balance Sheets** 

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br> **2025** | **December 31,<br>2024** |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in real estate, net of accumulated depreciation | $387846750 | $271820331 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in money market funds, at fair value | 31308636 | 37714624 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net | 28603318 | 25572926 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in real estate debt, at fair value | 19273251 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash | 4582524 | 5976243 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivables | 4384553 | 2639441 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in real estate securities, at fair value | 518631 | 509361 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash | 485010 | 333580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets | 1080149 | 477492 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total assets** | $478082822 | $345043998 |
|  **Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgages payable, net | $146535081 | $132024372 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible liabilities, net | 19285352 | 16792110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions payable | 4173578 | 2753181 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performance participation allocation payable |  | 2731835 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incentive fee payable | 2873858 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fee payable | 885646 | 537689 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 911686 | 573859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable, accrued expenses, and other liabilities | 2733480 | 2400034 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities** | $177398681 | $157813080 |
|  **Commitments & contingencies (See Note 12)** |  |  |
|  Redeemable non-controlling interest in consolidated joint ventures | 6660132 | 5585486 |
|  Redeemable common stock (unlimited shares authorized, $0.00 par value, 447,513 and 214,513 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively) | 5127105 | 2405418 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock (unlimited shares authorized, $0.00 par value, 31,146,566 and 19,270,139 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively) | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 336988380 | 201829983 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit and cumulative distributions | (48091476) | (22589969) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total equity** | $288896904 | $179240014 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities, redeemable equity and equity** | $478082822 | $345043998 |

---

*The accompanying notes are an integral part of the consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Consolidated Statements of Operations** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
|  **Revenues** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue from leases | $32410787 | $24158172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total revenues** | $32410787 | $24158172 |
|  **Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Rental property operating | $8786589 | $5567315 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General & administrative | 2726609 | 1997113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fee | 3001402 | 1927298 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performance participation allocation |  | 2731835 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Incentive fee | 2873858 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation & amortization | 19123158 | 11853933 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total expenses** | $36511616 | $24077494 |
|  **Other income (expense)** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized gain (loss) on real estate securities | $13213 | $5091 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in unrealized gain (loss) on real estate securities | (25650) | 16394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in unrealized gain (loss) on real estate debt | (13624) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (9016553) | (6893012) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend & interest income | 3513448 | 1425586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total other income (expense)** | $(5529166) | $(5445941) |
|  **Total net income (loss) attributable to Fidelity Core Real Estate Fund** | $(9629995) | $(5365263) |
|  Net income (loss) attributable to redeemable non-controlling interest in consolidated joint ventures | (396079) | (67929) |
|  **Net income (loss) attributable to common shareholders** | $(9233916) | $(5297334) |
|  **Net income (loss) per share of common stock — basic & diluted** | $(0.35) | $(0.30) |
|  **Weighted-average shares of common stock outstanding, basic & diluted** | 26145231 | 17481192 |

---

*The accompanying notes are an integral part of the consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Consolidated Statements of Changes in Equity** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares**<br>**Outstanding** | **Common<br>Stock** | **Additional Paid-**<br>**in Capital** | **Accumulated<br>Deficit and<br>Cumulative**<br>**Distributions** | **Total Equity** |
|  **Balance as of December 31, 2023** | 14531410 | $— | $150276726 | $(6716263) | $143560463 |
|  Issuance of common stock | 4056328 |  | 44169032 |  | 44169032 |
|  Net income (loss) |  |  |  | (5297334) | (5297334) |
|  Interest in redeemable non-controlling interest in joint ventures |  |  |  | (538061) | (538061) |
|  Interest in redeemable common stock |  |  |  | (68435) | (68435) |
|  Repurchases of common stock | (14945) |  | (162216) |  | (162216) |
|  Distributions declared on common stock |  |  |  | (9969876) | (9969876) |
|  Distribution reinvestment | 697346 |  | 7546441 |  | 7546441 |
|  **Balance as of December 31, 2024** | 19270139 | $— | $201829983 | $(22589969) | $179240014 |
|  | **Shares<br>Outstanding** | **Common<br>Stock** | **Additional Paid-<br>in Capital** | **Accumulated<br>Deficit and<br>Cumulative<br>Distributions** | **Total Equity** |
|  **Balance as of December 31, 2024** | 19270139 | $— | $201829983 | $(22589969) | $179240014 |
|  Issuance of common stock | 10990473 |  | 125115846 |  | 125115846 |
|  Net income (loss) |  |  |  | (9233916) | (9233916) |
|  Interest in redeemable non-controlling interest in joint ventures |  |  |  | (1762859) | (1762859) |
|  Interest in redeemable common stock |  |  |  | (68240) | (68240) |
|  Distributions declared on common stock |  |  |  | (14436492) | (14436492) |
|  Distribution reinvestment | 885954 |  | 10042551 |  | 10042551 |
|  **Balance as of December 31, 2025** | 31146566 | $— | $336988380 | $(48091476) | $288896904 |

---

*The accompanying notes are an integral part of the consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Consolidated Statements of Cash Flows** 

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
|  **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net income (loss) | $(9629995) | $(5365263) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Adjustments to reconcile net income (loss) to net cash provided by operating activities:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Adjustments to reconcile net income (loss) to net cash provided by operating activities:** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Adjustments to reconcile net income (loss) to net cash provided by operating activities:** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issuance of redeemable common stock as consideration for management fee | 2653445 | 1770755 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 19123158 | 11853933 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in unrealized (gain) loss on real estate securities | 25650 | (16394) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in unrealized (gain) loss on real estate debt | 13624 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Realized (gain) loss on real estate securities | (13213) | (5091) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of straight line rent | (850098) | (993235) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of above and below-market lease intangibles | (1545292) | (773332) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt (premium)/discount | 872686 | 872686 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of debt issuance and deferred financing costs | 442100 | 295055 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accretion of real estate debt discount | 382 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Change in assets and liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease (increase) in due from affiliate |  | 126667 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease (increase) in receivables | (895014) | (553627) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease (increase) in other assets | (620455) | (243262) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in performance participation allocation payable | (2731835) | 1421797 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in incentive fee payable | 2873858 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in management fee payable | 347957 | 156543 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in deferred revenue | 337827 | 138545 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in accounts payable, accrued expenses, and other liabilities | 536851 | 372679 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net cash provided by operating activities** | $10941636 | $9058456 |
|  **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Acquisitions of real estate and related intangibles | $(132094916) | $(112310069) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital improvements to real estate | (2249922) | (2628037) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net proceeds (purchases) for money market funds | 6405988 | (4462143) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of real estate debt | (25142288) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from repayment of real estate debt | 5855031 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of real estate securities | (154170) | (161512) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from sale of real estate securities | 132462 | 107383 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net cash used in investing** | $(147247815) | $(119454378) |
|  **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance of common stock | $125115846 | $44169032 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from mortgages payable | 13500000 | 70693500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment of deferred financing costs | (286278) | (1450047) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repurchases of common stock |  | (162216) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions paid | (2973544) | (1528360) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions paid to non-controlling interest in consolidated joint ventures | (365500) | (1943787) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contributions from non-controlling interest in consolidated joint ventures | 73366 | 3100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net cash provided by financing activities** | $135063890 | $112878122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net increase (decrease) in cash and restricted cash during the period** | $(1242289) | $2482199 |
|  **Cash and restricted cash, beginning of period** | 6309823 | 3827624 |
|  **Cash and restricted cash, end of period** | $5067534 | $6309823 |
|  **Reconciliation of cash and restricted cash to the Consolidated Balance Sheets, end of period:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash | $4582524 | $5976243 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash | 485010 | 333580 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total cash and restricted cash | $5067534 | $6309823 |
|  **Supplemental disclosures:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest paid on mortgages payable & revolving line of credit | $7618710 | $5250264 |
|  **Supplemental non-cash financing and investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued capital investments | $154071 | $357476 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distribution reinvestments | $10042551 | $7546441 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued distributions | $4173578 | $2753181 |

---

*The accompanying notes are an integral part of the consolidated financial statements.* 

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##### [**Table of Contents**](#toc)
**Fidelity Core Real Estate Fund** 

**Notes to Consolidated Financial Statements** 

**Note 1. Organization & Business Purpose** 

Fidelity Core Real Estate Fund, a Maryland statutory trust (the "Company"), acquires and actively manages a diversified portfolio of stabilized, income-generating real estate assets located in the United States. On February 1, 2023, the Company commenced its ongoing continuous private offering of common stock (the "Offering"). The Company is offering up to $750 million in common stock, provided that the Trustee, as defined below, may increase the amount of common stock offered and may terminate the offering at any time. The Company owns all or substantially all of its investments through Fidelity Core Real Estate Operating Partnership LP, a Delaware limited partnership (the "Operating Partnership"). Fidelity CRET Trustee LLC, a Delaware limited liability company, is the sole trustee (the "Trustee") of the Company. The Company is externally managed by Fidelity Diversifying Solutions LLC, a Delaware limited liability company and an affiliate of the Trustee (the "Investment Manager" or "FDS"). Fidelity Service Company, Inc. (the "Administrator" or "FSC") serves as the Company's Administrator. FMR LLC ("FMR") is the parent company of the Trustee, the Investment Manager, and the Administrator. The Company invests in real estate securities and real estate debt to serve as a cash management strategy before investing the Offering proceeds into longer-term real estate assets. All investments are made through the Company's wholly owned subsidiary FCREF Liquidity Vehicle LLC. The Company intends to be taxed as a real estate investment trust (a "REIT") under the Internal Revenue Code of 1986, as amended (the "IRC"), commencing with its taxable year ended December 31, 2023. The Company consolidates FCREF TRS LLC, which it has elected to treat as a taxable REIT subsidiary ("TRS").

**Note 2. Significant Accounting Policies** 

**Additional Disclosures Made in Preparation for an SEC Filing** 

Subsequent to the original issuance of the consolidated financial statements, certain disclosures have been either updated or added in order to conform to the requirements for these consolidated financial statements to be included in an SEC filing. Specifically, the Company has added Recent Accounting Pronouncements in Note 2, an Earnings Per Share disclosure, a Segment Reporting disclosure in Note 10, and Schedule III - Real Estate and Accumulated Depreciation.

**Basis of Presentation** 

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and consolidate the financial statements of the Company and its controlled subsidiaries. All significant intercompany transactions, balances, revenues, and expenses are eliminated upon consolidation. Certain prior period information has been reclassified to conform to the current period presentation and this has no effect on the Company's consolidated financial position or the consolidated results of operations as previously reported.

All references to the number of properties, buildings, and square footage in the notes are unaudited.

**Principles of Consolidation** 

The Company consolidates all entities in which it has a controlling financial interest through majority ownership or voting rights.

For partially owned entities, such as ownership in an entity through joint venture arrangements ("JV" or "JVs"), the Company must determine whether it has a controlling financial interest. The Company first considers whether the entity is a variable interest entity ("VIE"), and if so, whether it is the primary beneficiary. The Company is the

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primary beneficiary of a VIE when it has both the power to direct the most significant activities impacting the economic performance of the VIE and the obligation to absorb losses or receive benefits significant to the VIE. If the partially owned entity is not determined to be a VIE, the Company then must consider if it has a controlling financial interest via the voting interest entity model ("VOE"). The Company would have a controlling financial interest if it has the power to control the decisions made in the ordinary course of the entity's business. If it is determined that the Company is the primary beneficiary of the VIE or has a controlling financial interest via the VOE model, the Company would consolidate the JV entity. See Note 9 for a detailed description of the Company's consolidated JVs and their treatment.

**Use of Estimates** 

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

**Investments in Real Estate, Intangible Assets, and Intangible Liabilities** 

Investments in real estate, recorded within Investments in Real Estate, Net of Accumulated Depreciation on the Company's Consolidated Balance Sheets, comprise all tangible assets held by the Company for purposes of earning rental revenue from leases and are recognized at cost less accumulated depreciation. Third party costs related to asset acquisitions are capitalized.

In accordance with the guidance for business combinations, the Company determines whether the acquisition of a property qualifies as a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the property acquired is not a business, the Company accounts for the transaction as an asset acquisition. All property acquisitions to date have been determined to be and accounted for as asset acquisitions.

Whether the acquisition of a property acquired is considered a business combination or asset acquisition, the Company recognizes the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquired entity as applicable.

Upon acquisition of a property, the Company assesses the fair value of acquired tangible and intangible assets and liabilities (including building and improvements, land and land improvements, furniture, fixtures and equipment, above-market leases, below-market leases, in place tenant leases, leasing commissions, and legal and marketing) and allocates the purchase price to the acquired assets and assumed liabilities. The cost of the acquisition is then allocated to the assets acquired and liabilities assumed based on their relative fair values.

Acquired land and land improvements have been valued using a sales comparison approach, identifying recent transactions of similar types in the general market area with appropriate adjustments. Building and site improvements as well as furniture, fixtures, and equipment have been valued at the replacement cost less depreciation. Lease origination costs including legal and marketing costs have been valued using a sales comparison approach. Acquired above-market and below-market leases are recorded at their fair values (using a discount rate which reflects the risks associated with the leases acquired) equal to the difference between (1) the contractual amounts to be paid pursuant to each in place lease and (2) management's estimate of fair market lease rates for each corresponding in place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed rate renewal options for below-market leases.

Other intangible assets acquired include amounts for in place lease values that are based on our evaluation of the specific characteristics of each tenant's lease. Factors to be considered include estimates of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases.

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In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, the Company considers leasing commissions, legal and other related expenses.

The Company may also record debt premium/discount on acquired debt if it has been determined that there has been a difference in value between the acquired loan balance and the present value of the contractual debt payments discounted at current rates on the date of acquisition. The unamortized debt premium/discount is recorded as a component of Mortgages Payable, Net on the Company's Consolidated Balance Sheets and the corresponding amortization is recorded as a component of Interest Expense on the Company's Consolidated Statements of Operations.

Intangible assets and intangible liabilities are recorded as Intangible Assets, Net and Intangible Liabilities, Net on the Company's Consolidated Balance Sheets. On the Company's Consolidated Statements of Operations, the amortization of above or below market leases is recorded as a component of Revenue from Leases, and amortization of all other lease intangibles is recorded as a component of Depreciation and Amortization Expense. Included within the Company's Intangible Liabilities, Net on the Company's Consolidated Balance Sheets are below-market leases acquired upon acquisition of a property and below-market leases from land rights, representing land subject to long-term ground leases in which the Company owns and holds the land rights. Ground leases generally represent ownership of the land underlying commercial real estate buildings that are net leased by the owner of the land to the owners/operators of the real estate buildings built thereon. Under a ground lease, the tenant is generally responsible for all property operating expenses, such as maintenance, real estate taxes and insurance and is also responsible for development costs and capital expenditures. Ground leases are long-term contracts with base terms typically ranging from 30 to 99 years, often inclusive of tenant renewal options. For the Company, these land rights represent the below market value of the related ground leases. The Company assessed the acquired ground leases to determine if the lease terms were favorable or unfavorable, given market conditions at the acquisition date. As the market rents to be received under the Company's ground leases were determined to be lower than prevailing market rates, the Company concluded that the ground leases were below market and were therefore required to be recorded as definite lived intangible liabilities on its books.

The Company's investments in real estate and intangible assets and liabilities are stated at cost and are generally depreciated or amortized on a straight-line basis over the estimated useful lives of the assets and liabilities as follows:

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| | |
|:---|:---|
| **Description** | **Depreciable Life** |
| Building | 30-40 years |
| Building and site improvements | 10 years |
| Leasehold improvements | Earlier of lease term or 10 years |
| Furniture, fixtures, and equipment | 7 years |
| Lease intangibles | Remaining lease term<sup>(1)</sup> |
| Debt premium/discount | Remaining loan term |

---

(1) Prior to January 1, 2025, lease intangibles had a depreciable life of average remaining lease term.

Depreciation expense is recorded as a component of Depreciation and Amortization Expense on the Company's Consolidated Statements of Operations. Depreciation expense amounted to $11,409,223 and $7,935,988 for the years ended December 31, 2025 and 2024, respectively. Amortization of above-market and below-market leases is recorded on the Company's Consolidated Statements of Operations as an adjustment to Revenue from Leases.

Amortization of above-market and below-market leases amounted to $1,545,292 and $750,095 for the years ended December 31, 2025 and 2024, respectively. Amortization of all other intangible assets is recorded as a component of Depreciation and Amortization Expense on the Company's Consolidated Statements of Operations. Amortization of all other intangible assets amounted to $7,713,935 and $3,917,945 for the years ended December 31, 2025 and 2024, respectively.

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Significant improvements to properties are capitalized. When investments in real estate are sold or retired, their costs and related accumulated depreciation or amortization are removed from the accounts with the resulting gains or losses reflected in net income or loss for the period. Maintenance and repair expenses are charged to expense as incurred and are included in Rental Property Operating Expense on the Company's Consolidated Statements of Operations.

The Company's management reviews its real estate properties for indicators of impairment each quarter or when there is an event or change in circumstances, referred to as a triggering event, that indicates the carrying value of an asset is not recoverable.

Upon identification of a triggering event, management will review if the GAAP depreciated cost basis of a real estate investment exceeds the undiscounted cash flows of such real estate investment. If this analysis results in the cost basis exceeding the undiscounted cash flows, the investment could be impaired, and a discounted cash flow analysis is required to determine the fair value of the investment. If the cost basis exceeds the discounted cash flows, the investment is considered impaired, and an impairment loss must be recognized to reduce the GAAP depreciated cost basis to the fair value of the investment. The evaluation of anticipated future cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates, and capital requirements that could differ materially from actual results.

No impairments of real estate properties occurred during the years ended December 31, 2025 or 2024.

**Cash** 

Cash represents cash held in banks and cash on hand. The Company may have bank balances in excess of federally insured amounts. The Company deposits its cash with high credit-quality institutions to minimize credit risk.

**Restricted Cash** 

As of December 31, 2025 and 2024, Restricted Cash on the Company's Consolidated Balance Sheets consisted of cash received for tenant security deposits.

**Fair Value Measurements** 

The fair value of an investment is the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date (i.e. the exit price). The Company uses a hierarchical framework that prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment and the state of the marketplace, including the existence and transparency of transactions between market participants. Investments with readily available actively quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Investments measured and reported at fair value are classified and disclosed in one of the following levels within the fair value hierarchy:

Level 1—quoted prices are available in active markets for identical investments as of the investment date. The Company does not adjust the quoted price for these investments.

Level 2—quoted prices are available in markets that are not active or model inputs are based on inputs that are either directly or indirectly observable as of the investment date.

Level 3—pricing inputs are unobservable and include instances where there is minimal, if any, market activity for the investment. These inputs require significant judgment or estimation by management or third parties when

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determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had a ready market for these investments existed.

*Valuation of Financial Instruments Measured at Fair Value* 

The Company's investments in money market funds are valued at their closing net asset value ("NAV") and classified as Level 1. The Company's investments in real estate securities are recorded at fair value based on the closing price of the common stock as reported by the applicable national securities exchange and are also classified as Level 1. The Company's investments in real estate debt are reported at fair value. The Company's investments in real estate debt include commercial mortgage-backed securities ("CMBS") which are generally classified as Level 2. The Company generally determines the fair value of its CMBS investments by utilizing third party pricing service providers. In determining the value of a particular investment, the pricing service providers may use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models to determine the reported price. The internal models of the pricing service providers typically consider the attributes applicable to a particular class of security (e.g. credit rating or seniority), current market data, estimated cash flows for each class, and incorporate deal collateral performance (e.g. prepayment speeds and default rates), as available.

The following table details the Company's assets measured at fair value on a recurring basis:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Investments:** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Money market funds | $31308636 | $— | $— | $31308636 |
|  Real estate securities | 518631 |  |  | 518631 |
|  Real estate debt |  | 19273251 |  | 19273251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $31827267 | $19273251 | $— | $51100518 |
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
| **Investments:** | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  Money market funds | $37714624 | $— | $— | $37714624 |
|  Real estate securities | 509361 |  | $— | 509361 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $38223985 | $— | $— | $38223985 |

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*Valuation of Financial Instruments Not Carried at Fair Value* 

The fair values of short-term financial instruments such as cash and cash equivalents, restricted cash, accounts receivable, net, other assets, accounts payable and accrued liabilities, and due to affiliates approximate their carrying value on the accompanying Consolidated Balance Sheets due to their short-term nature.

The following table presents the carrying value and estimated fair value of the Company's financial instruments that are not carried at fair value on the Consolidated Balance Sheets:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|  | **Par Value** | **Estimated Fair Value** | **Par Value** | **Estimated Fair Value** |
|  Mortgages payable**<sup>(1)</sup>** | $153106100 | $150686770 | $139606100 | $131554183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $153106100 | $150686770 | $139606100 | $131554183 |

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(1) As of December 31, 2025, mortgages payable does not include unamortized debt issuance costs of
($2,204,684) or unamortized debt premium/(discount) of ($4,366,335). As of December 31, 2024, mortgages payable does not include unamortized debt issuance costs of ($2,342,707) or unamortized debt premium/(discount) of ($5,239,021).

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The fair values of the Company's borrowings are estimated by projecting current debt service payments at the contractual loan terms and discounting them to arrive at a present value using current market interest rates. The Company considers current market rates and conditions by evaluating similar borrowing agreements with comparable loan-to-value ratios and credit profiles. The inputs and resulting measurement used in determining the fair value of the Company's borrowings are considered Level 3.

**Income Taxes** 

The Company intends to qualify to be taxed as a REIT under the IRC for U.S. federal income tax purposes. The Company generally will not be subject to federal corporate income tax to the extent it distributes 100% of its taxable income to its shareholders. REITs are subject to a number of other organizational and operational requirements. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and properties, and federal income and excise taxes on its undistributed income.

The Company has elected to treat one or more of its consolidated subsidiaries as a TRS. In general, a TRS may perform additional services for the Company's tenants and may engage in any real estate or non-real estate-related business. A TRS is subject to federal, state, and local corporate income tax, as applicable.

The Company and TRS file a U.S. federal tax return, in addition to state and local tax returns as required. The Company's and TRS's federal income tax returns are generally subject to examination by the Internal Revenue Service (IRS) for a period of three years after they are filed. State and local tax returns may be subject to examination for an additional period of time depending on the jurisdiction.

The Company did not have any uncertain tax positions as of December 31, 2025 and 2024.

**Investments in Money Market Funds** 

The Company temporarily sweeps its uninvested cash into short term investment funds. The investment is shown in Investments in Money Market Funds, at Fair Value on the Company's Consolidated Balance Sheets. Interest earned on short term investment funds is recorded in the current period earnings as a component of Dividend & Interest Income on the Company's Consolidated Statements of Operations.

**Investments in Real Estate Securities** 

The Company reports its Investments in Real Estate Securities, at Fair Value on its Consolidated Balance Sheets and any changes in fair value are recorded in the current period earnings as a component of either Realized or Unrealized Gain or Loss on Real Estate Securities on the Company's Consolidated Statements of Operations. When investments in real estate securities are sold, their costs are removed from the accounts with the resulting gains or losses reflected in net income or loss for the period. Dividend income is recorded when declared and the resulting dividend income is recorded as a component of Dividend & Interest Income on the Company's Consolidated Statements of Operations.

**Investments in Real Estate Debt** 

The Company reports its Investments in Real Estate Debt, at Fair Value on its Consolidated Balance Sheets and any changes in fair value are recorded in the current period earnings as a component of either Realized or Unrealized Gain or Loss on Real Estate Debt on the Company's Consolidated Statements of Operations. When investments in real estate debt are sold, their costs are removed from the accounts with the resulting gains or losses reflected in net income or loss for the period. Interest income is recorded when earned as a component of Dividend & Interest Income on the Company's Consolidated Statements of Operations.

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**Deferred Charges** 

The Company's deferred charges relate to financing costs. These costs include legal, brokerage, and other costs incurred by the Company for its financing arrangements. Deferred costs related to mortgage financing are treated as debt issuance costs and are recorded as a component of Mortgages Payable, Net on the Company's Consolidated Balance Sheets. These costs are amortized on a straight-line basis over the term of the associated debt, which approximates the effective interest method, and recorded within Interest Expense on the Company's Consolidated Statements of Operations. Unamortized costs would be charged to interest expense upon any early repayment or significant modification of the debt. Deferred costs related to the Company's revolving line of credit are treated as deferred financing costs and are recorded as a component of Other Assets on the Company's Consolidated Balance Sheets. These costs are amortized on a straight-line basis over the term of the revolving line of credit, which approximates the effective interest method, and are recorded within Interest Expense on the Company's Consolidated Statements of Operations.

**Redeemable Non-controlling Interest in Consolidated Joint Ventures** 

The Company evaluates and accounts for non-controlling interest held by third parties in accordance with ASC 480- 10. Non-controlling interest represents the portion of equity that the Company does not own in those entities it consolidates and present an unconditional obligation requiring the Company to redeem the interest for cash after a specified or determinable date (or dates) or upon the occurrence of an event that is not solely within the control of the issuer and are determined to be contingently redeemable under this guidance. The interest is included as Redeemable Non-controlling Interest in Consolidated Joint Ventures on the Company's Consolidated Balance Sheets and classified within the mezzanine section between Total Liabilities and Total Equity. The carrying amount of the Redeemable Non-controlling Interest in Consolidated Joint Ventures will be adjusted at each period end, so that the carrying amount will equal the estimated future redemption value, calculated in accordance with the respective venture agreements, at the redemption date. If the redemption value is lower than the current value of the non-controlling interest on the Company's Consolidated Balance Sheets, the non-controlling interest will be decreased only to the extent there have been previous accretion adjustments recorded. This is reflected on the Company's Consolidated Balance Sheets as an adjustment between Accumulated Deficit and Cumulative Distributions and Redeemable Non-controlling Interest in Consolidated Joint Ventures. See Note 9 for a detailed description of the Company's Redeemable Non-controlling Interest in Consolidated Joint Ventures.

**Redeemable Common Stock** 

The Company classifies common stock issued to the Investment Manager as settlement of the management fee as Redeemable Common Stock on the Company's Consolidated Balance Sheets. The Company determined that this should be classified as redeemable as the Investment Manager has been deemed to have full control over when the shares can be redeemed. The Company issues Redeemable Common Stock at a value equivalent to the cash fee otherwise payable for the period. The carrying amount of the Redeemable Common Stock will be adjusted so that the carrying amount will equal the estimated redemption value at period end. This is reflected on the Company's Consolidated Balance Sheets as an adjustment between Accumulated Deficit and Cumulative Distributions and Redeemable Common Stock. Redemption value is determined based on the Company's NAV per share as of the balance sheet date.

**Earnings (Loss) Per Share** 

The Company calculates basic earnings (loss) per share ("EPS") by dividing net earnings (loss) attributable to common shareholders for the period by the weighted average number of common shares outstanding during the period, including redeemable common stock. As of December 31, 2025 and 2024, the Company has common stock and redeemable common stock. Both shares have the same rights to the Company's earnings and neither of the shares have any preference rights to dividends to other shares. The Company calculates diluted EPS considering the effect of dilutive instruments, such as unissued common shares payable at the Investment

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Manager's election as settlement for management fees, by dividing net income (loss) attributable to common shareholders for the period by the weighted average number of common shares and common share equivalents outstanding (unless their effect is antidilutive) for the period. For the years ended December 31, 2025 and 2024, the unissued common shares payable at the Investment Manager's election as settlement for management fees were deemed to be antidilutive due to the net loss position of the Company.

**Revenue Recognition and Receivables** 

The Company derives revenue pursuant to lease agreements. At the inception of a contract, the Company assesses whether a contract is, or contains, a lease in accordance with ASC 842. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. At the lease inception, the Company determines whether each lease is a sales-type, direct financing, or operating lease. Such classification is based on whether:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The lessee gains control of the underlying asset and the lessor therefore relinquishes control to the lessee
under certain criteria (sales-type or direct-financing); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All other leases that do not meet the criteria as sales-type or direct financing leases (operating).

The Company's current leases are classified as operating leases in accordance with relevant accounting guidance.

Revenue from Leases on the Company's Consolidated Statements of Operations includes lease components such as base rent and parking, and other non-lease components such as common area maintenance, arising from tenant leases at the Company's properties. The Company has elected to record, as a practical expedient, non-lease components together with lease components due to consistent revenue recognition patterns. For leases of one year or less, rental income is recognized as received. For leases in excess of one year, base rent is recognized on a straight-line basis over the term of the lease, including any rent steps or abatement provisions. The Company begins to recognize revenue upon the acquisition of the related property or when a tenant has the ability to take possession of the leased space. Upon the termination or vacancy of a tenant lease, the associated straight-line rent receivable is written off. The Company also includes tenant reimbursement income in Revenue from Leases that consists of fixed or variable amounts due from tenants for costs related to common area maintenance, real estate taxes, and other recoverable costs included in lease agreements. The Company evaluates its operating leases for collectability as described below.

The Company evaluates the collectability of rental revenue on an individual lease basis. Management exercises judgment in assessing collectability and considers the length of time a receivable has been outstanding, tenant creditworthiness, payment history, available information about the financial condition of the tenant, and current economic trends, among other factors. For future rents that are not probable of collection, the Company recognizes any such receipts when received. If the Company subsequently determines that it is probable it will collect substantially all of the lessee's remaining lease payments under the lease term, the Company will record a receivable for the accrued rent balance less previous cash receipts. These amounts are recorded as Receivables on the Company's Consolidated Balance Sheets.

Rent payments made in advance of the period in which they are due are recorded as Deferred Revenue on the Company's Consolidated Balance Sheets.

**Recent Accounting Pronouncements** 

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03 "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses" ("ASU 2024-03"). ASU 2024-03 requires disclosures in the notes to the financial statements on specified information about certain costs and expenses for each interim and annual reporting period. ASU 2024-03 is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026 and for interim periods within

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##### [**Table of Contents**](#toc)
fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company currently evaluating the potential impact of adopting this standard on the consolidated financial statements and related disclosures.

**Note 3. Investments in Real Estate** 

Investments in Real Estate, Net consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
|  Building & improvements | $305828611 | $217345186 |
|  Land and land improvements | 101414821 | 63500881 |
|  Furniture, fixtures, and equipment | 2649516 | 1611239 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | 409892948 | 282457306 |
|  Accumulated depreciation | (22046198) | (10636975) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in real estate, net | $387846750 | $271820331 |

---

The following table details the properties acquired during the year ended December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Property Name** | **Property<br>Type** | **Acquisition Date** | **Square Footage** | **Purchase<br>Price<sup>(1)</sup>** |
|  Independence Square | Retail | March 27, 2025 | 140218 | $24677532 |
|  3200 Washington | Multifamily | July 29, 2025 | 62727 | 37965264 |
|  85 Exchange | Industrial | November 12, 2025 | 198400 | 37909305 |
|  Gold Star Crossing | Retail | December 22, 2025 | 66682 | 31542815 |
|  |  |  |  | $132094916 |

---

(1) Purchase price is inclusive of acquisition-related costs.

The following table details the properties acquired during the year ended December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Property Name** | **Property Type** | **Acquisition Date** | **Square Footage** | **Purchase Price<sup>(1)</sup>** |
|  Thurmon Tanner Logistics Center A | Industrial | February 1, 2024 | 447120 | $58631582 |
|  Riverway Plaza | Retail | June 27, 2024 | 250572 | 23180941 |
|  Sylva on Main | Multifamily | September 12, 2024 | 47830 | 30497546 |
|  |  |  |  | $112310069 |

---

(1) Purchase price is inclusive of acquisition-related costs.

The following table summarizes the allocation of the total cost for the properties acquired during the years ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
|  Building and building improvements | $87015002 | $79032019 |
|  Land and land improvements | 37505006 | 33941772 |
|  In place tenant leases | 7731288 | 8931246 |
|  Leasing commissions | 1899615 | 2852472 |
|  Above-market leases | 1167912 | 190063 |
|  Furniture, fixtures and equipment | 957229 | 723617 |
|  Legal and marketing | 143233 | 79916 |
|  Below-market leases | (4324369) | (13441036) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total purchase price<sup>(1)</sup> | $132094916 | $112310069 |

---

(1) Purchase price is inclusive of acquisition-related costs.

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##### [**Table of Contents**](#toc)
**Note 4. Intangibles** 

When a new property is acquired, the Company assesses the fair value of all acquired intangible assets and liabilities including in place tenant leases, leasing commissions, above and below market leases, and legal and marketing. The value of these intangible assets and liabilities are recorded as components of Intangible Assets, Net and Intangible Liabilities, Net on the Company's Consolidated Balance Sheets. As of December 31, 2025 and 2024, the gross carrying amount and accumulated amortization of the Company's intangible assets and liabilities were:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |  |
|  | **Gross** | **Accumulated<br>Amortization** | **Net** |  |
|  *Intangible assets:* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In place tenant leases | $31521566 | $(11433033) | $20088533 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasing commissions | 8662163 | (2223512) | 6438651 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Above-market leases | 2284038 | (464524) | 1819514 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal and marketing | 363644 | (107024) | 256620 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total intangible assets | $42831411 | $(14228093) | $28603318 |  |
|  *Intangible liabilities:* | *Intangible liabilities:* | *Intangible liabilities:* | *Intangible liabilities:* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Below-market leases | $22262649 | $(2977297) | $19285352 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total intangible liabilities | $22262649 | $(2977297) | $19285352 |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |  |
|  | **Gross** | **Accumulated**<br>**Amortization** | **Net** |  |
|  *Intangible assets:* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In place tenant leases | $23790277 | $(4978394) | $18811883 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Leasing commissions | 6674434 | (1042714) | 5631720 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Above-market leases | 1116126 | (178689) | 937437 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal and marketing | 220412 | (28526) | 191886 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total intangible assets | $31801249 | $(6228323) | $25572926 |  |
|  *Intangible liabilities:* | *Intangible liabilities:* | *Intangible liabilities:* | *Intangible liabilities:* |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Below-market leases | $17938280 | $(1146170) | $16792110 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total intangible liabilities | $17938280 | $(1146170) | $16792110 |  |

---

As of December 31, 2025 the estimated future amortization on the Company's in place tenant leases, leasing commissions, above-market leases, and legal and marketing for each of the next five years and thereafter is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **In Place Tenant Leases** | **Leasing Commissions** | **Above-market Leases** | **Legal and Marketing** |
| 2026 | $5112382 | $1230349 | $371109 | $69553 |
| 2027 | 3115275 | 1008079 | 296193 | 51454 |
| 2028 | 2537142 | 873007 | 283463 | 37590 |
| 2029 | 1924138 | 687184 | 260628 | 23701 |
| 2030 | 1678439 | 617170 | 252360 | 15722 |
|  Thereafter | 5721157 | 2022862 | 355761 | 58600 |
|  | $20088533 | $6438651 | $1819514 | $256620 |

---

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##### [**Table of Contents**](#toc)
As of December 31, 2025 the estimated future amortization on the Company's below-market leases for each of the next five years and thereafter is as follows:

---

| | |
|:---|:---|
|  | **Below-market Leases** |
| 2026 | $(1788796) |
| 2027 | (1536078) |
| 2028 | (1364050) |
| 2029 | (1171932) |
| 2030 | (1120547) |
|  Thereafter | (12303949) |
|  | $(19285352) |

---

The remaining weighted-average amortization period for intangible assets and liabilities acquired in connection with the Company's acquisition during the year ended December 31, 2025 is 9.76 years. This includes a weighted average amortization period of 6.67 years for in place tenant leases, 7.58 years for leasing commissions, 6.30 years for above-market leases, 17.30 years for below-market leases, and 6.23 years for legal and marketing.

**Note 5. Investments in Real Estate Securities, at Fair Value** 

As of December 31, 2025 and 2024, the Company's investments in real estate securities consisted of shares of common stock of publicly listed REITs. Investments in real estate securities are valued using the policies and procedures outlined in Note 2.

The following table summarizes the Investments in Real Estate Securities, at Fair Value:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
|  Cost | $483728 | $448808 |
|  Unrealized gain (loss) | 34903 | 60553 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments in real estate securities, at fair value | $518631 | $509361 |

---

**Note 6. Investments in Real Estate Debt, at Fair Value** 

As of December 31, 2025, the Company's investment in real estate debt consisted of CMBS. The Company held no investments in real estate debt in 2024. Investments in real estate debt are valued using the policies and procedures outlined in Note 2.

The following tables detail the Company's investments in real estate debt:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** | **December 31, 2025** |
| **Type of Security** | **Weighted**<br>**Average<br>Coupon** | **Weighted Average<br>Maturity Date** | **Face Amount** | **Amortized<br>Cost Basis** | **Fair Value** |
|  CMBS | 6.8% | August 24, 2039 | $19284985 | $19286875 | $19273251 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total investments in real estate debt | 6.8% | August 24, 2039 | $19284985 | $19286875 | $19273251 |

---

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##### [**Table of Contents**](#toc)
The following table summarizes the Company's Investments in Real Estate Debt, at Fair Value:

---

| | |
|:---|:---|
|  | **Year Ended December 31, 2025** |
|  Beginning balance | $— |
|  Additions | 25142288 |
|  Repayments | (5855031) |
|  Premium amortization (discount accretion) | (382) |
|  Unrealized gain (loss) | (13624) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ending balance | $19273251 |

---

**Note 7. Debt** 

*Mortgages Payable, Net* 

The following table details the mortgages obtained by the Company on the following properties:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Property** | **Interest<br>Rate** | **Maturity Date** | **Principal Balance<br>Outstanding as of<br>December 31, 2025** | **Principal Balance<br>Outstanding as of<br>December 31, 2024** |
|  Millside at Heritage Park | 5.25% | February 3, 2030 | $7987500 | $7987500 |
|  Chandler Crossroads I | 5.19% | April 1, 2033 | 6660000 | 6660000 |
|  Chandler Crossroads II | 5.19% | April 1, 2033 | 9400000 | 9400000 |
|  Trails at Silverdale | 3.28% | January 5, 2031 | 32615100 | 32615100 |
|  Northmark Commerce Center | 6.59% | January 1, 2031 | 12250000 | 12250000 |
|  Thurmon Tanner Logistics Center A | 5.80% | September 30, 2033 | 31111000 | 31111000 |
|  Creekstone | 5.73% | May 1, 2029 | 10350000 | 10350000 |
|  Riverway Plaza | 5.95% | July 1, 2031 | 12732500 | 12732500 |
|  Sylva on Main | 5.08% | December 1, 2029 | 16500000 | 16500000 |
|  Independence Square | 5.96% | June 1, 2032 | 13500000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total mortgages payable |  |  | 153106100 | 139606100 |
|  *Debt mark-to-market, net* |  |  | (4366335) | (5239021) |
|  *Deferred financing costs, net* |  |  | (2204684) | (2342707) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mortgages payable, net |  |  | $146535081 | $132024372 |

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As of December 31, 2025 and 2024, the Company was in compliance with all loan covenants related to its mortgage agreements.

*Revolving Line of Credit* 

The following table details the Company's revolving credit facility:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Interest Rate** | **Maturity Date** | **Maximum<br>Facility Size** | **Principal Outstanding<br>Balance as of<br>December 31, 2025** | **Principal Outstanding<br>Balance as of<br>December 31, 2024** |
|  US 3M + applicable margin<sup>(1)</sup> | January 27, 2026<sup>(2)</sup> | $50000000<sup>(3)</sup> | $– $|  |

---

(1) The term US 3M refers to the Three-Month Treasury Bill rate in effect on the last day of the prior quarter from
the applicable Borrowing Date, and resets quarterly. The applicable margin is equal to 1.75%. The interest rate was 5.77% as of December 31, 2025 and 6.48% as of December 31, 2024.

(2) Represents the ultimate maturity date of the agreement. Each draw is due within 180 days.

(3) This revolving credit facility is from a related party lender, as discussed in Note 11. Further details of the
revolving line of credit can be found in Note 11 Related Party Transactions.

The following table presents the future principal payments due in each of the next five years and thereafter under our outstanding borrowings as of December 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
| **Years** | **Revolving Line of**<br>**Credit** | **Mortgages Payable** | **Total** |
| 2026 | $– $|  | $— |
| 2027 | – |  |  |
| 2028 | – |  |  |
| 2029 | – | 26850000 | 26850000 |
| 2030 | – | 7987500 | 7987500 |
|  Thereafter | – | 118268600 | 118268600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $– $| 153106100 | $153106100 |

---

**Note 8. Leases** 

The Company's real estate properties are leased to tenants under operating lease agreements that expire on various dates. The Company recognizes rental revenue on a straight-line basis over the life of the lease, including any rent steps or abatement provisions. Tenants have the option to extend or terminate certain leases at their discretion per the terms of their contract and also have termination options that may result in additional fees due to the Company. In the instance of the Company's ground leases, the leases are non-cancelable and contain renewal options.

The following table details the components of Revenue from Leases:

---

| | | |
|:---|:---|:---|
|  | **Year Ended<br>December 31, 2025** | **Year Ended<br>December 31, 2024** |
|  Fixed lease payments | $27205709 | $20572024 |
|  Variable lease payments | 5205078 | 3586148 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue from leases | $32410787 | $24158172 |

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Aggregate minimum annual fixed base rental payments for real estate investments owned by the Company through the non-cancelable leases with terms longer than one year as of December 31, 2025 are as follows:

---

| | |
|:---|:---|
| **Year** | **Future Minimum Rents** |
| 2026 | $22602390 |
| 2027 | 20555697 |
| 2028 | 18905439 |
| 2029 | 16568399 |
| 2030 | 15115992 |
|  Thereafter | 31527055 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total | $125274972 |

---

Certain leases provide for additional rental amounts based upon the recovery of actual operating expenses in excess of specified base amounts or contractual increases as defined in the lease agreement. These contractual contingent rentals and rental increases that are not fixed are not included in the table above.

Certain of the Company's investments in real estate are subject to ground leases in which the Company holds the land rights. The Company's ground leases are classified as operating leases based on the characteristics of each lease. As of December 31, 2025 and 2024, the Company had two ground leases classified as operating leases. Each of the Company's ground leases were acquired as part of the acquisition of real estate and no incremental costs were incurred for such ground leases.

The Company has a significant concentration of revenue from a limited number of tenants. For the years ended December 31, 2025 and 2024, the percentage of total revenue attributable to tenants accounting for 10% or more of total revenue, and the corresponding percentage of accounts receivable, are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Tenant** | **Percentage of<br>Total Revenue<br>(2025)** | **Percentage of<br>Total Revenue<br>(2024)** | **Percentage of Total**<br>**Accounts Receivable<br>(as of Dec 31, 2025)** | **Percentage of Total**<br>**Accounts Receivable<br>(as of Dec 31, 2024)** |
|  Tenant 1 | 8% | 10% | 5% | 5% |
|  Tenant 2 | 15% | 18% | 46% | 60% |
|  **Total** | **23%** | **28%** | **51%** | **65%** |

---

The loss of either of these tenants could have a material adverse effect on the Company's financial condition and results of operations.

**Note 9. Equity & Redeemable Non-controlling Interest** 

The Company is authorized to issue an unlimited amount of shares at the current NAV per share value.

*Share Repurchase Plan* 

The Company has adopted a share repurchase plan whereby, following the third anniversary of the initial closing held on February 1, 2023 (the "Lock-Out Period"), shareholders may be able to request that the Company repurchase all or a portion of their shares on a quarterly basis. Exceptions to the Lock-Out Period may be granted in certain limited circumstances in the Trustee's sole discretion.

Shares will be repurchased as of the last calendar day of such quarter requested effected at a repurchase price equal to the most recently determined NAV per share; provided, however, that any shares that have been held for less than 12 months will be repurchased at a price equal to 98% of the NAV per share. The Company is not obligated to repurchase any shares pursuant to the share repurchase plan and may choose to repurchase only

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some, or none, of the shares that have been requested to be repurchased in any quarter at the Trustee's sole discretion. In addition, the aggregate NAV of total repurchases of shares in a quarter will be limited to no more than 5.0% of the Company's aggregate NAV per calendar quarter.

There were no share repurchases for the year ended December 31, 2025. For the year ended December 31, 2024, the Company, at the discretion of the Trustee, repurchased 14,945 shares for a total price of $162,216.

*Distributions* 

The Company generally intends to distribute substantially all of its taxable income, which does not necessarily equal net income as calculated in accordance with GAAP, to its shareholders each year to comply with the REIT provisions of the IRC. Accrued distributions are included in Distributions Payable on the Company's Consolidated Balance Sheets.

The following tables detail the Company's distributions:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** | **Year Ended December 31, 2025** |
| **Declaration Date** | **Record Date** | **Payment Date** | **Cash Distributions<br>Declared per Share** | **Aggregate<br>Amount** |
|  March 28, 2025 | March 31, 2025 | April 28, 2025 | $0.1218 | $2698213 |
|  June 27, 2025 | June 30, 2025 | July 25, 2025 | 0.1357 | 3471522 |
|  September 29, 2025 | September 30, 2025 | October 24, 2025 | 0.1429 | 4093179 |
|  December 30, 2025 | December 31, 2025 | January 28, 2026 | 0.1321 | 4173578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  |  | $0.5325 | $14436492 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** | **Year Ended December 31, 2024** |
| **Declaration Date** | **Record Date** | **Payment Date** | **Cash Distributions<br>Declared per Share** | **Aggregate<br>Amount** |
|  March 30, 2024 | March 31, 2024 | April 24, 2024 | $0.1364 | $2192042 |
|  June 27, 2024 | June 30, 2024 | July 25, 2024 | 0.1400 | 2435202 |
|  September 27, 2024 | September 30, 2024 | October 24, 2024 | 0.1411 | 2589451 |
|  December 30, 2024 | December 31, 2024 | January 27, 2025 | 0.1413 | 2753181 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total |  |  | $0.5588 | $9969876 |

---

Distributions for the year ended December 31, 2025 were characterized, for federal income tax purposes, as 98.31% of return of capital and 1.69% of dividends. Distributions for the year ended December 31, 2024 were characterized, for federal income tax purposes, as 89.08% of return of capital and 10.92% of dividends.

*Distribution Reinvestment Plan* 

The Company has adopted a distribution reinvestment plan ("DRIP") whereby shareholders shall have the cash distributions otherwise payable to them by the Company automatically reinvested in additional shares unless they elect to receive such distributions in cash. Any cash distributions attributable to the shares owned by participants who elect into the DRIP will be reinvested effective the first of the month following the declaration date in additional shares on behalf of the participants. The per share purchase price for shares purchased pursuant to the DRIP will be equal to the most recently determined NAV per share at the time the distribution is payable. Shares acquired under the DRIP will entitle the participant to the same rights and be treated in the same manner as shares purchased in the Offering.

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*Redeemable Non-controlling Interest in Consolidated Joint Ventures* 

On November 2, 2023, the Company acquired the Trails at Silverdale property through the establishment of a JV. On September 12, 2024, the Company acquired the Sylva on Main property through the establishment of a separate JV. The Company's JV partners have a right to require the Company to repurchase their interest in the JVs at a defined price any time after a five-year lockout period from the date of purchase. Therefore, the non-controlling partners' shares of the assets, liabilities and operations of the JVs are included in Redeemable Non-controlling Interest in Consolidated Joint Ventures on the Company's Consolidated Balance Sheets and reported as mezzanine equity of the Company. The interests of the non-controlling partners are generally calculated as the JV partners' ownership percentages of the JVs. The arrangements provide the JV partners a profit interest based on agreed upon internal rate of return hurdles being achieved. Any profit interest due to the JV partners is reported within Redeemable Non-controlling Interest in Consolidated Joint Ventures on the Company's Consolidated Balance Sheets.

The Redeemable Non-controlling Interest in Consolidated Joint Ventures is recorded at the greater of the carrying amount (adjusted for the JV's share of the allocation of income or loss and distributions) or the redemption value (which is based on fair value) of such interest at the end of each measurement period. The redemption value is determined as of the period-end date based on the JV's NAV. NAV is equivalent to GAAP equity adjusted for unrealized real estate appreciation, accumulated depreciation and amortization, and straight-line rent adjustments. For purposes of determining the Company's NAV, the fair value of investments in real estate is determined based on a combination of valuations provided by a third party valuation firm and property appraisals performed externally by third party appraisal firms.

The redemption values of the JVs were greater than the adjusted carrying values for the year ended December 31, 2025, as such an adjustment of $1,762,859 was recorded to Redeemable Non-controlling Interest in Consolidated Joint Ventures on the Company's Consolidated Balance Sheet. The redemption values of the JVs were greater than the adjusted carrying values for the year ended December 31, 2024, as such an adjustment of $538,061 was recorded to Redeemable Non-controlling Interest in Consolidated Joint Ventures on the Company's Consolidated Balance Sheet.

The following table details the changes in Redeemable Non-controlling Interest in Consolidated Joint Ventures:

---

| | | |
|:---|:---|:---|
|  | **Year Ended**<br>**December 31, 2025** | **Year Ended**<br>**December 31, 2024** |
|  Beginning balance | $5585486 | $3959142 |
|  Net income (loss) attributed to redeemable non-controlling interest | (396079) | (67929) |
|  Contributions | 73366 | 3100000 |
|  Distributions | (365500) | (1943788) |
|  Redemption value adjustment | 1762859 | 538061 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ending balance | $6660132 | $5585486 |

---

**Note 10. Segment Reporting** 

The Company currently operates as one segment, which is also its sole reportable segment. The Company's chief operating decision maker ("CODM") is a group consisting of its Lead- and Co-Portfolio Managers. The accounting policies of the Company's single reportable segment are consistent with those in its summary of significant accounting policies outlined in Note 2.

The Company generates its revenue primarily from acquiring and actively managing a diversified portfolio of stabilized, income-generating real estate assets located in the United States. The CODM evaluates the performance of real estate assets with the other real estate-related debt and real estate securities investments held. Additionally, the Company seeks to enhance returns on equity by utilizing leverage, and generally finance the

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##### [**Table of Contents**](#toc)
real estate assets acquired with leverage obtained through a variety of sources, including mortgages obtained on select properties acquired and a revolving credit facility. The CODM evaluates performance and allocates resources based on net income (loss) and total assets, as reported on the Company's Consolidated Statements of Operations and Balance Sheets. The Company's net income (loss) is primarily derived through the difference between the revenue earned from leases and the expenses incurred to acquire and manage the real estate assets. Accordingly, depreciation and amortization and rental property operating expenses, which are already separately reported on the Company's Consolidated Statements of Operations, are the most significant segment expenses.

The CODM uses net income (loss) to make key operating decisions, such as identifying attractive investment opportunities, evaluating the performance of investments in real estate assets held, determining the appropriate level of leverage to enhance returns on equity and deciding on the sources of financing.

**Note 11. Related Party Transactions** 

*Management Fee* 

The Company pays the Investment Manager a management fee equal to 1% of the NAV per year, payable quarterly in arrears. This fee is offset by any non-permitted affiliate fees incurred.

The management fee may be paid, at the Investment Manager's election, in either (i) cash or (ii) shares with an aggregate value equivalent to the cash fee otherwise payable.

For the years ended December 31, 2025 and 2024, the Investment Manager elected to receive the management fee in shares which amounted to $3,001,402 and $1,927,298, respectively. Shares are settled at the prevailing NAV of the subscription period. These shares are recorded as Redeemable Common Stock on the Company's Consolidated Balance Sheets. The following table summarizes changes in redeemable common stock for the years ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **Shares<br>Outstanding** | **Redeemable<br>Common<br>Stock** |
|  **Balance as of December 31, 2023** | 53410 | $566228 |
|  Issuance of redeemable common stock | 161103 | 1770755 |
|  Adjustment to carrying value of common stock |  | 68435 |
|  **Balance as of December 31, 2024** | 214513 | $2405418 |
|  Issuance of redeemable common stock | 233000 | 2653447 |
|  Adjustment to carrying value of common stock |  | 68240 |
|  **Balance as of December 31, 2025** | 447513 | $5127105 |

---

*Performance Participation Allocation & Incentive Fee* 

Through December 31, 2024, the Special Limited Partner ("SLP"), Fidelity CRET LP, an affiliated entity of the Investment Manager and the Trustee, held a performance participation interest in the Operating Partnership that entitled the SLP to receive an allocation from the Operating Partnership equal to 12.5% of the total return (sum of all distributions plus change in aggregate NAV for the period). Per the terms of the agreement, the SLP was entitled to start receiving this allocation once the shareholders had received a 5% return, including recovering any loss carryforward. The allocation continued until the total allocation between the SLP and the shareholders was 12.5% and 87.5%, respectively. Such allocation was made and paid annually and accrued monthly. The performance participation allocation could be paid, at the SLP's election, in either (i) cash or (ii) Operating Partnership units with an aggregate value equivalent to the cash fee otherwise payable. For the year ended December 31 2024, the SLP elected to receive $10,000 of the performance participation allocation in Operating Partnership units and the remainder of their allocation in cash.

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##### [**Table of Contents**](#toc)
Effective January 1, 2025, the Company amended the performance participation allocation described above to change the nature of the performance participation from an allocation to an incentive fee. With this amendment, the incentive fee is payable to the Investment Manager and is no longer an allocation to the SLP. The incentive fee is calculated in a consistent manner as the previous performance participation allocation as disclosed above. Such fee accrues monthly and is paid annually. The fee can be paid, at the Investment Manager's election, in either (i) cash or (ii) Operating Partnership units with an aggregate value equivalent to the cash fee otherwise payable.

The allocation is recognized as Performance Participation Allocation on the Company's Consolidated Statements of Operations in the amount of $2,731,835 for the year ended December 31, 2024. The fee is recognized as Incentive Fee on the Company's Consolidated Statements of Operations in the amount of $2,873,858 for the year ended December 31, 2025.

*Expense Limitation* 

The Investment Manager and the Trustee have agreed to waive reimbursement from the Company, or to reimburse the Company for, any operating expenses to the extent necessary to ensure that the cumulative Company operating expenses do not, as of the last day of any calendar year, exceed an amount equal to 0.40% of the average monthly NAV (as calculated as of the last calendar day of each month) for the calendar year. The expense limitation is recognized as Expense Limitation on the Company's Consolidated Statements of Operations. The expense limitation amounted to $0 for the years ended December 31, 2025 and 2024.

The limitation on operating expenses automatically terminated upon the earlier to occur of (i) the two-year anniversary of the date of the Initial Closing (February 1, 2023) or (ii) the date that the NAV has been at least $200 million for two consecutive complete fiscal quarters. The expense limitation was terminated on February 1, 2025.

*Revolving Line of Credit* 

The Company has entered into a revolving line of credit agreement with FMR LLC, the parent company of the Trustee and the Investment Manager. The revolving line of credit includes a $50M commitment and the interest rate on each draw is equal to the Three-Month Treasury Bill rate plus a 1.75% margin. The maturity date of the agreement is January 27, 2026.

*Pricing & Bookkeeping Fees* 

The Company pays the Administrator an administrative fee equal to a percentage of NAV on a tiered basis:

---

| | |
|:---|:---|
| **Net Asset Value** | **Rate** |
|  Up to $200M | 0.08% |
|  Greater than $200M to $400M | 0.07% |
|  Greater than $400M | 0.06% |

---

The Company records these costs as a component of General & Administrative Expenses on the Company's Consolidated Statements of Operations. The Company incurred $228,582 and $152,297 in pricing & bookkeeping fees for the years ended December 31, 2025 and 2024, respectively.

*Affiliate Ownership* 

An affiliate of the Investment Manager held 1,631,356 shares (5.16% of total shares outstanding) of the Company's common stock as of December 31, 2025 and 1,238,266 shares (6.36% of total shares outstanding) as of December 31, 2024.

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##### [**Table of Contents**](#toc)
**Note 12. Commitments and Contingencies** 

In the normal course of business, the Company enters into contracts that provide a variety of general indemnifications. Any exposure to the Company under these arrangements could involve future claims that may be made against the Company. As of December 31, 2025 and 2024, no such claims exist or are expected to arise and, accordingly, the Company has not accrued any liability in connection with such indemnifications.

**Note 13. Subsequent Events** 

In preparation of these consolidated financial statements, management has evaluated the events and transactions subsequent to December 31, 2025 through March 25, 2026, the date when the consolidated financial statements were available to be issued, and determined that there are no subsequent events or transactions that would require adjustments to or disclosures in the Company's consolidated financial statements except as disclosed below.

*Revolving Line of Credit* 

The Company's revolving line of credit agreement with FMR LLC, which was to mature on January 27, 2026, was extended under the existing terms detailed in Note 7 until it was amended effective March 18, 2026. The amended revolving line of credit includes a $50M commitment and the interest rate on each draw is equal to the Secured Overnight Financing Rate (SOFR) plus a 1.75% margin. The Company will also pay an annual facility fee in the amount of 0.15% of the total commitment as well as an undrawn commitment fee of 0.15% of any undrawn commitment. The maturity date of the agreement is on the third anniversary of the amended date, March 18, 2029. The maturity date shall be extended automatically for one three-year period unless either FMR LLC or the Company states that they do not intend to extend the agreement 30 days before the then-current maturity date.

In connection with the reissuance of the financial statements, management has evaluated the events and transactions through April 28, 2026, the date the financial statements were available to be reissued, and determined that there are no subsequent events or transactions that would require adjustments to or disclosures in the Company's consolidated financial statements.

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##### [**Table of Contents**](#toc)
**Schedule III - Real Estate and Accumulated Depreciation as of December 31, 2025** 

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | **Initial Cost** | **Initial Cost** | **Costs Capitalized Subsequent<br>to Acquisition** | **Costs Capitalized Subsequent<br>to Acquisition** | **Gross Amounts at which<br>Carried at the Close of Period <sup>(1)</sup>** | **Gross Amounts at which<br>Carried at the Close of Period <sup>(1)</sup>** | | | |
| **Description** |<br>**Property<br>Type <sup>(3)</sup>** |<br>**Location** |<br>**Encumbrances** | **Land & Land<br>Improvements** | **Building &<br>Building<br>Improvements** | **Land & Land<br>Improvements** | **Building &<br>Building<br>Improvements** | **Land & Land<br>Improvements** | **Building &<br>Building<br>Improvements** |<br>**Total** |<br>**Accumulated<br>Depreciation<br><sup>(2)</sup>** |<br>**Year<br>Acquired** |
|  Creekstone | Other | Durham, NC | $10350000 | $3087388 | $13525654 | $— | $152204 | $3087388 | $13677858 | $16765246 | $(1767213) | 2023 |
|  Chandler Crossroads I | Industrial | Chandler, AZ | 6660000 | 4033625 | 11488069 |  | 80413 | 4033625 | 11568482 | 15602107 | (1201185) | 2023 |
|  Chandler Crossroads II<br> Northmark Commerce Center | Industrial<br> Industrial | Chandler, AZ<br> Haltom City, TX | 9400000<br> 12250000 | 4617791<br> 6248700 | 15806537<br> 19650005 | — <br> —  | 1671006<br> 1488936 | 4617791<br> 6248700 | 17477543<br> 21138941 | 22095334<br> 27387641 | (2285122<br> (2034596 | 2023<br> 2023 |
|  Thurmon Tanner<br> Logistics Center A | Industrial | Flowery Branch, GA | 31111000 | 9111948 | 43303532 |  |  | 9111948 | 43303532 | 52415480 | (2931859) | 2024 |
|  85 Exchange Building F | Industrial | Concord, NC |  | 5205946 | 29682631 |  |  | 5205946 | 29682631 | 34888577 | (157159) | 2025 |
|  Trails at Silverdale | Retail | Silverdale, WA | 32615100 | 7859890 | 51944810 | 153461 | 496837 | 8013351 | 52441647 | 60454998 | (5088940) | 2023 |
|  Riverway Plaza | Retail | Weymouth, MA | 12732500 | 20823390 | 10673504 | 370519 | 79675 | 21193909 | 10753179 | 31947088 | (1310952) | 2024 |
|  Independence Square | Retail | Plano, TX | 13500000 | 13309334 | 12013057 | 140000 | 144950 | 13449334 | 12158007 | 25607341 | (587690) | 2025 |
|  Gold Star Crossing | Retail | Worcester, MA |  | 10548305 | 18322116 |  |  | 10548305 | 18322116 | 28870421 | (64571) | 2025 |
|  Millside at Heritage Park | Residential | Canton, MA | 7987500 | 3456669 | 21564271 |  | 491036 | 3456669 | 22055307 | 25511976 | (2383472) | 2023 |
|  Sylva on Main | Residential | Bellevue, WA | 16500000 | 4006434 | 25054984 |  | 1197186 | 4006434 | 26252170 | 30258604 | (1195723) | 2024 |
|  3200 Washington | Residential | Boston, MA |  | 8441421 | 26997198 |  |  | 8441421 | 26997198 | 35438619 | (474686) | 2025 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Portfolio Total** |  |  | $153106100 | $100750841 | $300026368 | $663980 | $5802243 | $101414821 | $305828611 | $407243432 | $(21483168) |  |

---

(1) As of December 31, 2025, the aggregate tax basis of the portfolio was $427,223,864.

(2) Refer to Note 2 of the Consolidated Financial Statements for details of depreciable lives.

(3) Other includes properties that do not meet any of the other asset categories. As of December 31, 2025, Other
consists of a medical office property.

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##### [**Table of Contents**](#toc)
The total included on Schedule III does not include Furniture, Fixtures and Equipment totaling $2,649,516. Accumulated Depreciation does not include $563,030 of accumulated depreciation related to Furniture, Fixtures and Equipment.

The following table summarizes activity for real estate and accumulated depreciation for the years ended December 31, 2025 and 2024:

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| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
|  Real Estate |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at the beginning of the year | $280846067 | $164996867 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additions during the year |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Building and building improvements | 88483425 | 81652383 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Land and land improvements | 37913940 | 34196817 |
|  Balance at the end of the year | $407243432 | $280846067 |
|  Accumulated Depreciation |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Balance at the beginning of the year | $(10378134) | (2596291) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated depreciation | (11105034) | (7781843) |
|  Balance at the end of the year | $(21483168) | $(10378134) |

---

## Exhibit 3.1

**EXHIBIT 3.1** 

**<u>FIDELITY 2022 CORE REAL ESTATE TRUST</u>**

**CERTIFICATE OF TRUST** 

THIS IS TO CERTIFY THAT:

**<u>FIRST</u>**: The undersigned trustee does hereby form a statutory trust pursuant to the laws of the State of Maryland.

**<u>SECOND</u>**: The name of the statutory trust (the "Trust") is:

Fidelity 2022 Core Real Estate Trust

**<u>THIRD</u>**: The address of the Trust's principal office in the State of Maryland is c/o The Corporation Trust Incorporated, 2405 York Road, Suite 201, Lutherville-Timonium, Maryland 21093-2264.

**<u>FOURTH</u>**: The name and business address of the Trust's resident agent are The Corporation Trust Incorporated, 2405 York Road, Suite 201, Lutherville-Timonium, Maryland 21093-2264.

The undersigned, being the sole trustee of the Trust, acknowledges under the penalties of perjury that, to the best of its knowledge and belief, the facts stated herein are true.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

------

IN WITNESS WHEREOF, the undersigned trustee has signed this Certificate of Trust this 31st day of January, 2022.

---

| |
|:---|
| FIDELITY CRET TRUSTEE LLC |
| /s/ Brian C. McLain |
| Name: Brian C. McLain |
| Title: Authorized Person |

---

## Exhibit 3.2

**EXHIBIT 3.2** 

**<u>FIDELITY 2022 CORE REAL ESTATE TRUST</u>**

**CERTIFICATE OF AMENDMENT** 

THIS IS TO CERTIFY THAT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Certificate of Trust (the "Certificate") of Fidelity 2022 Core Real Estate Trust, a Maryland statutory trust (the "Trust"), is hereby amended by deleting Article Second of the Certificate in its entirety and substituting the following in lieu thereof:

**<u>SECOND</u>**: The name of the statutory trust (the "Trust") is:

Fidelity Core Real Estate Trust

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The undersigned acknowledges under the penalties of perjury that, to the best of its knowledge and belief, the facts stated herein are true.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

------

IN WITNESS WHEREOF, the undersigned, who was authorized by the sole trustee of the Trust to execute this Certificate of Amendment, has signed this Certificate of Amendment this 1st day of June, 2022.

---

| |
|:---|
| FIDELITY CRET TRUSTEE LLC |
| /s/ Brian C. McLain |
| Name: Brian C. McLain |
| Title: Authorized Person |

---

## Exhibit 3.3

**EXHIBIT 3.3** 

**<u>FIDELITY CORE REAL ESTATE TRUST</u>**

**CERTIFICATE OF AMENDMENT** 

THIS IS TO CERTIFY THAT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Certificate of Trust (the "Certificate") of Fidelity Core Real Estate Trust, a Maryland statutory trust (the "Trust"), is hereby amended by deleting Article Second of the Certificate in its entirety and substituting the following in lieu thereof:

**<u>SECOND</u>**: The name of the statutory trust (the "Trust") is:

Fidelity Core Real Estate Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The undersigned acknowledges under the penalties of perjury that, to the best of its knowledge and belief, the facts stated herein are true.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

------

IN WITNESS WHEREOF, the undersigned, who was authorized by the sole trustee of the Trust to execute this Certificate of Amendment, has signed this Certificate of Amendment this 21st day of September, 2022.

---

| |
|:---|
| FIDELITY CRET TRUSTEE LLC |
| /s/ Brian C. McLain |
| Name: Brian C. McLain |
| Title: Authorized Person |

---

## Exhibit 3.4

**EXHIBIT 3.4** 

**FIDELITY CORE REAL ESTATE FUND** 

**DECLARATION OF TRUST** 

Dated December 1, 2022

This DECLARATION OF TRUST is made as of the date set forth above by the undersigned trustee of the Trust formed hereby (the "<u>Trust</u>"). Capitalized terms used but not defined in Articles I through XVI herein shall have the meanings given to them in Article XVII herein.

ARTICLE I

FORMATION; CERTIFICATE OF TRUST

The Trust is a statutory trust within the meaning of the Maryland Statutory Trust Act, as amended from time to time (the "<u>Act</u>"). The Trust shall not be deemed to be a general partnership, limited partnership, joint venture, joint stock company or a corporation, but nothing herein shall preclude the Trust from being treated for tax purposes as a partnership, association, corporation or real estate investment trust or being disregarded for tax purposes as an entity separate from its owner under the Internal Revenue Code of 1986, as amended from time to time (the "<u>Code</u>"). The undersigned has formed the Trust by filing a Certificate of Trust with the State Department of Assessments and Taxation of Maryland (as amended, restated or corrected from time to time, the "<u>Certificate</u>"). The governing instrument of the Trust, as that term is defined in the Act, shall be this Declaration of Trust, as it may hereafter be amended or restated (the "<u>Declaration of Trust</u>").

ARTICLE II

NAME

The name of the Trust is "Fidelity Core Real Estate Fund." The Trustee (as defined below) may cause the Trust to use any other designation or name for the Trust.

ARTICLE III

PURPOSES AND POWERS

Section 1. <u>Purposes</u>. The purposes for which the Trust is formed are to engage in any lawful act or activity for which a statutory trust may be formed under the general laws of the State of Maryland as now or hereafter in force, including, without limitation or obligation, engaging in business as a real estate investment trust within the meaning of Section 856 of the Code (a "<u>REIT</u>").

Section 2. <u>Powers</u>. The Trust shall have all of the powers granted to statutory trusts by the Act and all other powers that are not inconsistent with law and are appropriate to promote and attain the purposes of the Trust set forth in this Declaration of Trust.

------

ARTICLE IV

RESIDENT AGENT; PRINCIPAL OFFICE

The name and address of the resident agent of the Trust in the State of Maryland are The Corporation Trust Incorporated, 2405 York Road, Suite 201, Lutherville-Timonium, Maryland 21903-2264, or such other name and address as may be determined by the Trustee or any officer of the Trust. The resident agent is a Maryland corporation. The address of the Trust's principal office in the State of Maryland is The Corporation Trust Incorporated, 2405 York Road, Suite 201, Lutherville-Timonium, Maryland 21903-2264, or such other place as may be determined by the Trustee or any officer of the Trust. The Trust may have such offices or places of business within or outside the State of Maryland as the Trustee may from time to time determine.

ARTICLE V

TRUSTEE

Section 1. <u>Powers</u>. Subject only to any limitations expressly set forth in the Certificate or this Declaration of Trust, (a) the business and affairs of the Trust shall be managed exclusively by or under the direction of a single trustee, who shall be appointed and shall serve in accordance with this Declaration of Trust (the "<u>Trustee</u>"), (b) the Trustee shall have full, exclusive and absolute power, control and authority over the business and affairs of the Trust and any and all property of the Trust, and no beneficial owner of the Trust (each, a "<u>Shareholder</u>" and, collectively, the "<u>Shareholders</u>") shall have any right to participate in or exercise control or management power over the business and affairs of the Trust, and (c) the Trustee shall have the exclusive power to take or authorize any action within the powers of the Trust under the Act, the Certificate and this Declaration of Trust including, without limitation, the power to authorize or approve any action that would otherwise require the approval of one or more Shareholders under the Act. The Declaration of Trust shall be construed with the presumption in favor of the grant of power and authority to the Trustee. The enumeration and definition of particular powers of the Trustee included in this Declaration of Trust shall in no way be limited or restricted by reference to or inference from the terms of this or any other provision of this Declaration of Trust or construed or deemed by inference or otherwise in any manner to exclude or limit the powers conferred upon the Trustee under the general laws of the State of Maryland or any other law. Any determination regarding any matter within the powers of the Trustee or any construction of the Certificate or this Declaration of Trust (including any construction of the Certificate or this Declaration of Trust regarding the scope of the powers of the Trustee) made in good faith by the Trustee shall be conclusive.

The Trustee, without any action by the Shareholders, shall have and may exercise, on behalf of the Trust, without limitation, the power to elect or appoint officers or other agents of the Trust; to solicit proxies from Shareholders; to authorize the issuance of beneficial interests in the Trust in one or more classes and series; to authorize the declaration and payment of distributions; to cause the Trust to elect to qualify as a REIT and take such actions as may be necessary or appropriate to maintain such qualification; to cause the Trust to cease to qualify, or attempt to qualify, as a REIT; and to do any other act and authorize the Trust to do any other act or enter into any agreement or other document necessary or appropriate to exercise the powers or effectuate the purposes of the Trust.

------

Section 2. <u>Execution of Documents</u>. Subject only to any limitations expressly set forth in the Certificate or this Declaration of Trust, the Trustee shall have the power, and shall have the power to authorize any officer, employee or other agent of the Trust, to execute and deliver any affidavit, agreement, certificate, consent, instrument, notice, power of attorney or other writing or document in the name and on behalf of the Trust, without any further act, approval or consent of any Shareholder. Any affidavit, agreement, certificate, consent, instrument, notice, power of attorney or other writing or document shall be valid and binding upon the Trust when executed by the Trustee or when authorized or ratified by all necessary Trust action and, in the absence of any specific action to the contrary by the Trustee, executed by the chief executive officer or the president of the Trust, if any is appointed, or by any other person authorized by the Trustee. All checks, drafts or other orders for the payment of money, notes or other evidences of indebtedness issued in the name of the Trust shall be signed by the Trustee or, in the absence of any specific action to the contrary by the Trustee, by the chief executive officer, the president, the chief financial officer or the treasurer of the Trust, if any is appointed, or by any other person authorized by the Trustee. All funds of the Trust not otherwise employed shall be deposited or invested from time to time to the credit of the Trust as the Trustee or, in the absence of any specific action to the contrary by the Trustee, the chief executive officer, the president, the chief financial officer or the treasurer of the Trust, if any is appointed, or any other person designated by the Trustee may authorize. The execution and delivery of any document or the taking of any action by the Trustee (and, if the Trustee is an entity, by any duly-authorized officer or agent of the Trustee, in the name and on behalf of the Trustee) shall conclusively evidence the approval thereof by the Trustee and the Trustee's authority therefor, without the need for any separate action, consent or resolutions of the Trustee.

Section 3. <u>Initial Trustee; Number of Trustees; Qualification</u>. The undersigned shall serve as the Trustee in accordance with this Declaration of Trust. The Trust shall have, from time to time, one Trustee, and the Trustee may be a legal entity or an individual.

Section 4. <u>Term</u>. The Trustee shall serve until its resignation or removal in accordance with the terms hereof. If for any reason the Trustee ceases to be a Trustee, such event shall not terminate the Trust or affect this Declaration of Trust (subject to a removal of the Trustee in accordance with Section 6 of this Article V).

Section 5. <u>Resignation</u>. The Trustee may resign, effective upon delivery of notice of such resignation to the Trust, or at any future date specified in the resignation. In connection with its resignation, the Trustee may appoint its successor.

Section 6. <u>Removal</u>. The Trustee may be removed by the affirmative vote of Shareholders entitled to cast at least seventy-five percent (75%) of the votes entitled to be cast and not held by Fidelity Persons upon the occurrence of a Cause Event. The removal of the Trustee pursuant to this Section 6 of Article V shall constitute a Dissolution Event for purposes of Article XIII, Section 2; *provided, however*, that a Dissolution Event shall not occur and the Trust shall not be required to be dissolved by reason of such removal if, within ninety (90) days after the date of such removal, Shareholders entitled to cast at least a majority of the votes entitled to be cast and not held by Fidelity Persons agree to continue the business of the Trust and to the election, effective as of the date of such removal, of a replacement Trustee.

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ARTICLE VI

SHARES OF BENEFICIAL INTEREST

Section 1. <u>Authorized Shares</u>. The beneficial interest of the Trust shall be divided into shares of beneficial interest (the "<u>Shares</u>"). The Trust has authority to issue an unlimited number of common shares of beneficial interest, which shall be without par value ("<u>Common Shares</u>"). Subject to the provisions of Article VII and the terms of any class or series of Shares at the time outstanding, the Trustee may, by amendment to this Article VI and without any action by the Shareholders, classify or reclassify any unissued Shares from time to time and set or change the number, par value, designations, preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications or terms or conditions of redemption of the class or series of Shares. If Shares of one class or series are classified or reclassified into Shares of another class or series pursuant to this Article VI, then, except to the extent that the Trust is authorized to issue an unlimited number of Shares of any such class or series, the number of authorized Shares of the former class or series shall be automatically decreased and the number of authorized Shares of the latter class or series shall be automatically increased, in each case by the number of Shares so classified or reclassified.

Section 2. <u>Authorization by Trustee of Share Issuance</u>. The Trustee may authorize or cause the Trust to issue from time to time Shares of any class or series, whether now or hereafter authorized, or securities or rights convertible into Shares of any class or series, whether now or hereafter authorized, for such consideration, whether in cash, property, past or future services, obligation for future payment or otherwise, or without consideration (including in connection with a Share split or distribution of Shares), determined by the Trustee, subject to such restrictions or limitations, if any, as may be set forth in the Certificate or this Declaration of Trust.

Section 3. <u>Voting Rights</u>. Except as may otherwise be specified in the terms of any class or series of Shares or as set forth herein, each Share shall entitle the holder thereof to one vote on each matter upon which holders of Shares are entitled to vote. Except to the extent that the Trust directly or indirectly owns Shares in a fiduciary capacity, neither the Trust nor any entity of which the Trust is entitled to exercise a majority of the outstanding voting power may vote on any matter, and Shares held by the Trust or any such entity shall not be counted in determining the total number of votes entitled to be cast on any matter or at any time. Subject to the terms of any class or series of Shares then outstanding limiting or expanding the voting rights of such Shares, Shareholders shall be entitled to vote only on the following matters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the removal of the Trustee upon a Cause Event as provided in Article V;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the continuation of the business of the Trust and the election of a replacement Trustee following the removal of a Trustee as provided in Article V;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the election of a successor Trustee if there is no Trustee as provided in Article VIII;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the amendment of this Declaration of Trust, to the extent provided for in Article XI;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the merger or consolidation of the Trust, to the extent provided for in Article XII; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) such other matters that the Trustee has declared to be advisable and submitted to the Shareholders for approval or ratification.

Except with respect to the foregoing matters, no action taken by the Shareholders shall in any way bind the Trust or the Trustee. Unless a different proportion is specified in the Certificate or this Declaration of Trust (and notwithstanding any different proportion of votes that may be specified in the Act to approve any matter), the affirmative vote of a majority of the votes cast at a meeting of Shareholders duly called and at which a quorum is present shall be sufficient to approve any other matter that may properly come before the Shareholders at such meeting.

Section 4. <u>Dividends and Distributions</u>. The Trustee may from time to time authorize or cause the Trust to pay such dividends or other distributions, in cash or other assets of the Trust or in securities of the Trust or from any other source as the Trustee shall determine. Before payment of any dividends or other distributions, there may be set aside out of any funds of the Trust available for dividends or other distributions such amounts as the Trustee may from time to time reserve for any Trust purpose, and the Trustee may modify or abolish any such reserve. Shareholders shall have no right to any dividend or other distribution unless and until authorized by the Trustee and declared by the Trust, and then only at the time and in the amount and form authorized by the Trustee. Any action by the Trustee to cause the Trust to declare or pay any dividend or other distribution shall be conclusive evidence of the authorization by the Trustee of such distribution. The exercise of the powers and rights of the Trustee pursuant to this Section 4 shall be subject to the terms of any class or series of Shares at the time outstanding. The Trustee may from time to time establish, in its sole discretion, a plan or plans pursuant to which distributions payable to Shareholders may be reinvested into additional Shares.

Section 5. <u>General Nature of Shares</u>. All Shares shall be personal property entitling the Shareholders only to those rights provided in this Declaration of Trust. The rights of all Shareholders and the terms of all Shares are subject to the provisions of the Certificate and this Declaration of Trust. The Shareholders shall have no interest in the property of the Trust and shall have no right to compel any partition, division, dividend or distribution of the Trust or of the property of the Trust. The death of a Shareholder shall not terminate the Trust. The Trust is entitled to treat as Shareholders only those persons in whose names Shares are registered as holders of Shares on the beneficial interest ledger of the Trust. Notwithstanding any other provision in this Declaration of Trust, no determination shall be made by the Trustee nor shall any transaction be entered into by the Trust which would cause any Shares or other beneficial interest in the Trust not to constitute "transferable shares" or "transferable certificates of beneficial interest" under Section 856(a)(2) of the Code. Each Share, whether or not evidenced by a certificate, shall constitute a "security" within the meaning of, and governed by, (i) Article 8 of the Maryland Uniform Commercial Code (including Section 8-102(a)(15) thereof) as in effect and as it may be amended or superseded from time to time, and (ii) Article 8 of the Uniform Commercial Code of any other applicable jurisdiction that now or hereafter substantially includes the 1994 revisions to Article 8 thereof as adopted by the American Law Institute and the National Conference of Commissioners on Uniform State Laws and approved by the American Bar Association on February 14, 1995 or any successor uniform act or law in effect in the State of Maryland from time to time.

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Section 6. <u>Certificates</u>. Except as may be otherwise provided by the Trustee, Shareholders are not entitled to certificates evidencing the Shares. In the event that the Trust issues Shares evidenced by certificates, such certificates shall be in any form approved by the Trustee or any officer of the Trust and shall be signed by the Trustee or one or more officers of the Trust. In the event that the Trust issues Shares without certificates, the Trust may provide to the record holders of such Shares such information as the Trustee or any officer of the Trust determines to be necessary or advisable. The issuance of Shares in uncertificated form shall not affect Shares already evidenced by a certificate until the certificate is surrendered to the Trust. There shall be no differences in the rights and obligations of Shareholders based on whether or not their Shares are evidenced by certificates (other than the obligation of the holder of a certificate evidencing any outstanding Shares to surrender such certificate in connection with the transfer or cancellation of any such Shares). The Trustee or any officer of the Trust may direct a new certificate or certificates to be issued in place of any certificate or certificates theretofore issued by the Trust alleged to have been lost, destroyed, stolen or mutilated, upon the making of an affidavit of that fact by the person claiming the certificate to be lost, destroyed, stolen or mutilated; provided, however, that, if such Shares have ceased to be certificated, no new certificate shall be issued. Unless otherwise determined by the Trustee or any officer of the Trust, the owner of such lost, destroyed, stolen or mutilated certificate or certificates, or his or her legal representative, shall be required, as a condition precedent to the issuance of a new certificate or certificates, to give the Trust a bond in such sums as it may direct as indemnity against any claim that may be made against the Trust.

Section 7. <u>Transfers</u>.

Section 7.1 A Shareholder may Transfer its Shares without the consent or approval of the Trustee; *provided, however*, that, without the prior consent of the Trustee, which consent may be withheld in its sole and absolute discretion, no Transfer of Shares may be made if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Transfer would violate the restrictions on ownership and Transfer of Shares set forth in Article VII or otherwise cause the Trust to cease to qualify as a REIT; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Transfer would violate the terms and conditions of any federal or state securities laws or other law, rule or regulation applicable to the Transfer or the transferring Shareholder.

The Trustee may, in its sole and absolute discretion, condition any Transfer described in clauses (i) or (ii) above on the receipt of an opinion of counsel (satisfactory to the Trustee as to the opinion and counsel), documentation and information as the Trustee may reasonably request.

Section 7.2 Subject to the terms of this Article VI, all Transfers of Shares shall be made on the books of the Trust, by the holder of the Shares, in person or by the Shareholders attorney, in such manner as the Trustee or any officer of the Trust may prescribe and, if such Shares are evidenced by certificates, upon surrender of such certificates duly endorsed for Transfer. The issuance of a new certificate upon the Transfer of certificated Shares is subject to any determination by the Trustee that such Shares shall no longer be evidenced by certificates. Upon the Transfer of any uncertificated Shares, the Trust may provide to the record holder of such Shares such information as the Trustee or any officer of the Trust determines to be necessary or advisable.

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Section 8. <u>Share Ledger</u>. The Trust shall maintain a share ledger containing the name, address and tax identification number of each Shareholder and the number of Shares of each class held by such Shareholder, in substantially the form (including any electronic form) approved by the Trustee or any officer of the Trust.

Section 9. <u>Fractional Shares</u>. The Trust may, without the consent or approval of any Shareholder, issue fractional Shares, eliminate any outstanding fraction of a Share by rounding up to a full Share, arrange for the disposition of a fraction of a Share by the person entitled to it or pay cash for the fair value of a fraction of a Share.

Section 10. <u>Consent Dividends</u>. If the Trustee determines that consent dividends within the meaning of Section 565 of the Code with respect to a taxable year are necessary or appropriate to insure or maintain the status of the Trust as a REIT or avoid the imposition of any federal income or excise tax, the Trustee may require the holders of Common Shares and any other Persons (as that term is defined in Article VII) to take any and all actions necessary or appropriate under the Code, any regulations promulgated thereunder, any court decision or any administrative positions of the United States Department of Treasury (including any United States Internal Revenue Service forms or other forms) to result in consent dividends sufficient to maintain REIT status and avoid federal income or excise tax for such taxable year.

Section 11. <u>Share Redemptions</u>.

Section 11.1 Shareholders shall have no ability or right to require the redemption of their Shares by the Trust or to otherwise withdraw from the Trust. Notwithstanding the foregoing, the Trustee may from time to time, in its sole discretion, establish the terms of a program or programs by which the Trust voluntarily repurchases Shares.

Section 11.2 The Trust shall have the right, in the sole and absolute discretion of the Trustee, to redeem any Shareholder's outstanding Shares, in whole or in part, for any reason, including, without limitation, if it is determined by the Trustee in its sole and absolute discretion that such Shareholder's continued ownership of Shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) would result in the Trust failing or ceasing to qualify as a REIT;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) would result in all or any portion of the assets of the Trust constituting Plan Assets; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) would otherwise violate any law applicable to the Trust.

Any Shares redeemed by the Trust shall be purchased at a price per Share equal to (i) prior to the date that the Trust commences determining a net asset value ("<u>NAV</u>"), the gross purchase price originally paid for the redeemed Shares, and (ii) thereafter, the NAV per Share as of the applicable redemption date.

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ARTICLE VII

RESTRICTIONS ON OWNERSHIP AND TRANSFER OF SHARES

Section 1 <u>Shares</u>.

Section 1.1 *Ownership Limitations*. During the period commencing on the Initial Date and prior to the Restriction Termination Date, but subject to Section 3:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Basic Restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (1) No Person, other than an Excepted Holder, shall Beneficially Own or Constructively Own Shares in excess of the Aggregate Share Ownership Limit, (2) no Person, other than an Excepted Holder, shall Beneficially Own or Constructively Own Common Shares in excess of the Common Share Ownership Limit and (3) no Excepted Holder shall Beneficially Own or Constructively Own Shares in excess of the Excepted Holder Limit for such Excepted Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No Person shall Beneficially Own or Constructively Own Shares to the extent that such Beneficial Ownership or Constructive Ownership of Shares would result in the Trust being "closely held" within the meaning of Section 856(h) of the Code or otherwise failing to qualify as a REIT (including, but not limited to, Beneficial Ownership or Constructive Ownership that would result in the Trust owning (actually or Constructively) an interest in a tenant that is described in Section 856(d)(2)(B) of the Code if the income derived by the Trust from such tenant would cause the Trust to fail to satisfy any of the gross income requirements of Section 856(c) of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any Transfer of Shares that, if effective, would result in Shares being beneficially owned by fewer than 100 Persons (determined under the principles of Section 856(a)(5) of the Code) shall be void *ab initio*, and the intended transferee shall acquire no rights in such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Transfer in Trust</u>. If any Transfer of Shares occurs which, if effective, would result in any Person Beneficially Owning or Constructively Owning Shares in violation of Section 1.1(a)(i) or (ii),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) then that number of Shares the Beneficial Ownership or Constructive Ownership of which otherwise would cause such Person to violate Section 1.1(a)(i) or (ii) (rounded up to the nearest whole share) shall be automatically Transferred to a Charitable Trust for the benefit of a Charitable Beneficiary, as described in Section 2 of this Article VII, effective as of the close of business on the Business Day prior to the date of such Transfer, and such Person shall acquire no rights in such Shares; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the Transfer to the Charitable Trust described in clause (i) of this sentence would not be effective for any reason to prevent the violation of Section 1.1(a)(i) or (ii), then the Transfer of that number of Shares that otherwise would cause any Person to violate Section 1.1(a)(i) or (ii) shall be void <u>ab</u> <u>initio</u>, and the intended transferee shall acquire no rights in such Shares.

To the extent that, upon a transfer of Shares pursuant to this Section 1.1(b), a violation of any provision of this Article VII would nonetheless be continuing (for example where the ownership of Shares by a single Charitable Trust would violate the 100 shareholder requirement applicable to REITs), then Shares shall be transferred to that number of Charitable Trusts, each having a distinct Charitable Trustee and a Charitable Beneficiary or Beneficiaries that are distinct from those of each other Charitable Trust, such that there is no violation of any provision of this Article VII.

Section 1.2 *Remedies for Breach*. If the Trustee shall at any time determine that a Transfer or other event has taken place that results in a violation of Section 1.1 or that a Person intends to acquire or has attempted to acquire Beneficial Ownership or Constructive Ownership of any Shares in violation of Section 1.1 (whether or not such violation is intended), the Trustee shall take such action as it deems advisable to refuse to give effect to or to prevent such Transfer or other event, including, without limitation, causing the Trust to redeem Shares, refusing to give effect to such Transfer on the books of the Trust or instituting proceedings to enjoin such Transfer or other event; <u>provided</u>, <u>however</u>, that any Transfers or attempted Transfers or other events in violation of Section 1.1 shall automatically result in the Transfer to the Charitable Trust described above, and, where applicable, such Transfer (or other event) shall be void *ab initio* as provided above irrespective of any action (or non-action) by the trustee.

Section 1.3 *Notice of Restricted Transfer*. Any Person who acquires or attempts or intends to acquire Beneficial Ownership or Constructive Ownership of Shares that will or may violate Section 1.1(a), or any Person who would have owned Shares that resulted in a Transfer to the Charitable Trust pursuant to the provisions of Section 1.1(b), shall immediately give written notice to the Trust of such event, or in the case of such a proposed or attempted transaction, give at least 15 days prior written notice, and shall provide to the Trust such other information as the Trust may request in order to determine the effect, if any, of such Transfer on the Trust's status as a REIT.

Section 1.4 *Owners Required To Provide Information*. From the Initial Date and prior to the Restriction Termination Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) every owner of more than five percent (or such lower percentage as required by the Code or the Treasury Regulations promulgated thereunder or as otherwise required by the Trustee) of the outstanding Shares, within 30 days after the end of each taxable year, shall give written notice to the Trust stating the name and address of such owner, the number of Shares Beneficially Owned and a description of the manner in which such Shares are held. Each such owner shall provide to the Trust such additional information as the Trust may request in order to determine the effect, if any, of such Beneficial Ownership on the Trust's status as a REIT and to ensure compliance with the Aggregate Share Ownership Limit, the Common Share Ownership Limit and the other restrictions set forth herein; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each Person who is a Beneficial or Constructive Owner of Shares and each Person (including the Shareholder of record) who is holding Shares for a Beneficial or Constructive Owner shall provide to the Trust such information as the Trust may request, in order to determine the Trust's status as a REIT and to comply with the requirements of any taxing authority or any applicable law or regulation or governmental authority or to determine such compliance.

Section 1.5 *Remedies Not Limited*.*** Nothing contained in this Section 1 shall limit the authority of the Trustee to take such other action as it deems necessary or advisable to protect the Trust and the interests of its Shareholders in preserving the Trust's status as a REIT.

Section 1.6 *Ambiguity*. In the case of an ambiguity in the application of any of the provisions of this Section 1, Section 2 or any definition contained in this Declaration of Trust, the Trustee may determine the application of the provisions of this Section 1 or Section 2 with respect to any situation based on the facts known to it. In the event Section 1 or 2 requires an action by the Trustee and Declaration of Trust fails to provide specific guidance with respect to such action, the Trustee may determine the action to be taken so long as such action is not contrary to the provisions of Sections 1 or 2. Absent a decision to the contrary by the Trustee (which the Board may make in its sole and absolute discretion), if a Person would have (but for the remedies set forth in Section 1.2) acquired Beneficial Ownership or Constructive Ownership of Shares in violation of Section 1.1, such remedies (as applicable) shall apply first to the Shares which, but for such remedies, would have been Beneficially Owned or Constructively Owned (but not actually owned) by such Person, pro rata among the Persons who actually own such Shares based upon the relative number of the Shares held by each such Person.

Section 1.7 *Exceptions*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustee may exempt (prospectively or retroactively) a Person from the Aggregate Share Ownership Limit and the Common Share Ownership Limit, as the case may be, and may establish or increase an Excepted Holder Limit for such Person if the Trustee determines, in its sole discretion, that such exemption will not cause the Trust to fail to qualify as a REIT under the Code; provided that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Trustee may require the Person seeking the exemption to make certain representations and/or undertakings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Person does not and represents that it will not own, actually or Constructively, an interest in a tenant of the Trust (or a tenant of any entity owned or controlled by the Trust) that would cause the Trust to own, actually or Constructively, more than a 9.9% interest (as set forth in Section 856(d)(2)(B) of the Code) in such tenant and the Trustee obtains such representations and undertakings from such Person as are reasonably necessary to ascertain this fact (for this purpose, a tenant from whom the Trust (or an entity owned or controlled by the Trust) derives (and is expected to continue to derive) a sufficiently small amount of revenue such that, in the judgment of the Trustee, rent from such tenant would not adversely affect the Trust's ability to qualify as a REIT, shall not be treated as a tenant of the Trust); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such Person agrees that any violation or attempted violation of such representations or undertakings (or other action which is contrary to the restrictions contained in Sections 1.1 through 1.6) will result in such Shares being automatically Transferred to a Charitable Trust in accordance with Section 1.1(b) and Section 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Prior to granting any exception pursuant to Section 1.7(a), the Trustee may require a ruling from the Internal Revenue Service, or an opinion of counsel, in either case in form and substance satisfactory to the Trustee in its sole and absolute discretion, as it may deem necessary or advisable in order to determine or ensure the Trust's status as a REIT. Notwithstanding the receipt of any ruling or opinion, the Trustee may impose such conditions or restrictions as it deems appropriate in connection with granting such exception.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to Section 1.1(a)(ii), an underwriter which participates in a public offering or a private placement of Shares (or securities convertible into or exchangeable for Shares) may Beneficially Own or Constructively Own Shares (or securities convertible into or exchangeable for Shares) in excess of the Aggregate Share Ownership Limit, the Common Share Ownership Limit or both such limits, but only to the extent necessary to facilitate such public offering or private placement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Trustee may only reduce the Excepted Holder Limit for an Excepted Holder: (i) with the written consent of such Excepted Holder at any time, (ii) unless the terms and conditions of the agreements and undertakings entered into with such Excepted Holder in connection with the establishment of the Excepted Holder Limit for that Excepted Holder provide otherwise, at any time after the Excepted Holder no longer Beneficially Owns or Constructively Owns Shares in excess of the Aggregate Share Ownership Limit or the Common Share Ownership Limit or (iii) pursuant to the terms and conditions of the agreements and undertakings entered into with such Excepted Holder in connection with the establishment of the Excepted Holder Limit for that Excepted Holder. No Excepted Holder Limit shall be reduced to a percentage that is less than the Common Share Ownership Limit.

Section 1.8 *Increase or Decrease in Aggregate Share Ownership and Common Share Ownership Limits*. If the Trustee determines, in its sole discretion, that such modification will not cause the Trust to fail to qualify as a REIT under the Code, the Trustee may from time to time increase or decrease the Common Share Ownership Limit and the Aggregate Share Ownership Limit for one or more Persons and increase or decrease the Common Share Ownership Limit and the Aggregate Share Ownership Limit for all other Persons. No decreased Common Share Ownership Limit and/or Aggregate Share Ownership Limit will be effective for any Person whose percentage of ownership in Shares is in excess of such decreased Common Share Ownership Limit and/or Aggregate Share Ownership Limit, as applicable, until such time as such Person's percentage of ownership in Shares equals or falls below the decreased Common Share Ownership Limit and/or Aggregate Share Ownership Limit or unless the Person agrees to such decrease, but any further acquisition of Shares in excess of such percentage ownership of Shares will be in violation of the Common Share Ownership Limit and/or Aggregate Share Ownership Limit and, provided further, that the new Common Share

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Ownership Limit and/or Aggregate Share Ownership Limit would not allow five or fewer Persons to Beneficially Own more than 49.9% in value of the outstanding Shares at any time during the period beginning on the first day of the last half of the first taxable year following the first taxable year with respect to which the Trust's REIT election is effective and ending on the Restriction Termination Date.

Section 1.9 *Legend*.*** Any certificate representing Shares shall bear a legend describing the restrictions on ownership and transfer of Shares set forth in this Article VII. Instead of such a foregoing legend, the certificate may state that the Trust will furnish a full statement about certain restrictions on transferability to a Shareholder on request and without charge.

Section 2. <u>Transfer of Shares in Trust</u>**.**

Section 2.1 *Ownership in Trust*. Upon any purported Transfer or other event described in Section 1.1(b) of this Article VII that would result in a Transfer of Shares to a Charitable Trust, such Shares shall be deemed to have been Transferred to the Charitable Trustee as trustee of a Charitable Trust for the exclusive benefit of one or more Charitable Beneficiaries. Such Transfer to the Charitable Trustee shall be deemed to be effective as of the close of business on the Business Day prior to the purported Transfer or other event that results in the Transfer to the Charitable Trust pursuant to Section 1.1(b). The Charitable Trustee shall be appointed by the Trust and shall be a Person unaffiliated with the Trust and any Prohibited Owner. Each Charitable Beneficiary shall be designated by the Trust as provided in Section 2.7.

Section 2.2 *Status of Shares Held by the Charitable Trustee*.*** Shares held by the Charitable Trustee shall continue to be issued and outstanding Shares. The Prohibited Owner shall have no rights in the Shares held by the Charitable Trustee. The Prohibited Owner shall not benefit economically from ownership of any Shares held in trust by the Charitable Trustee, shall have no rights to dividends or other distributions and shall not possess any rights to vote or other rights attributable to the Shares held in the Charitable Trust.

Section 2.3 *Dividend and Voting Rights*.*** The Charitable Trustee shall have all voting rights and rights to dividends or other distributions with respect to Shares held in the Charitable Trust, which rights shall be exercised for the exclusive benefit of the Charitable Beneficiary. Any dividend or other distribution paid prior to the discovery by the Trust that Shares have been Transferred to the Charitable Trustee shall be paid by the recipient of such dividend or other distribution to the Charitable Trustee upon demand and any dividend or other distribution authorized but unpaid shall be paid when due to the Charitable Trustee. Any dividends or other distributions so paid over to the Charitable Trustee shall be held in trust for the Charitable Beneficiary. The Prohibited Owner shall have no voting rights with respect to Shares held in the Charitable Trust and, subject to Maryland law, effective as of the date that Shares have been Transferred to the Charitable Trustee, the Charitable Trustee shall have the authority (at the Charitable Trustee's sole and absolute discretion) (a) to rescind as void any vote cast by a Prohibited Owner prior to the discovery by the Trust that Shares have been Transferred to the Charitable Trustee and (b) to recast such vote in accordance with the desires of the Charitable Trustee acting for the benefit of the Charitable Beneficiary; <u>provided</u>, <u>however</u>, that if the Trust has already taken irreversible corporate action, then the Charitable Trustee shall not have the authority to rescind and recast such vote. Notwithstanding the provisions of this Article

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VII, until the Trust has received notification that Shares have been Transferred into a Charitable Trust, the Trust shall be entitled to rely on its share transfer and other Shareholder records for purposes of preparing lists of Shareholders entitled to vote at meetings, determining the validity and authority of proxies and otherwise conducting votes and determining the other rights of Shareholders.

Section 2.4 *Sale of Shares by Charitable Trustee*.*** Within 20 days of receiving notice from the Trust that Shares have been Transferred to the Charitable Trust, the Charitable Trustee shall sell the Shares held in the Charitable Trust to a Person, designated by the Charitable Trustee, whose ownership of the Shares will not violate the ownership limitations set forth in Section 1.1(a) of this Article VII. Upon such sale, the interest of the Charitable Beneficiary in the Shares sold shall terminate and the Charitable Trustee shall distribute the net proceeds of the sale to the Prohibited Owner and to the Charitable Beneficiary as provided in this Section 2.4. The Prohibited Owner shall receive the lesser of (a) the price paid by the Prohibited Owner for the Shares or, if the Prohibited Owner did not give value for the Shares in connection with the event causing the Shares to be held in the Charitable Trust (*e.g.*, in the case of a gift, devise or other such transaction), the Market Price of the Shares on the day of the event causing the Shares to be held in the Charitable Trust and (b) the price per share received by the Charitable Trustee (net of any commissions and other expenses of sale) from the sale or other disposition of the Shares held in the Charitable Trust. The Charitable Trustee may reduce the amount payable to the Prohibited Owner by the amount of dividends and other distributions which have been paid to the Prohibited Owner and are owed by the Prohibited Owner to the Charitable Trustee pursuant to Section 2.3 of this Article VII. Any net sales proceeds in excess of the amount payable to the Prohibited Owner shall be immediately paid to the Charitable Beneficiary. If, prior to the discovery by the Trust that Shares have been Transferred to the Charitable Trustee, such Shares are sold by a Prohibited Owner, then (i) such Shares shall be deemed to have been sold on behalf of the Charitable Trust and (ii) to the extent that the Prohibited Owner received an amount for such Shares that exceeds the amount that such Prohibited Owner was entitled to receive pursuant to this Section 2.4, such excess shall be paid to the Charitable Trustee upon demand.

Section 2.5 *Purchase Right in Shares Transferred to the Charitable Trustee*.*** Shares Transferred to the Charitable Trustee shall be deemed to have been offered for sale to the Trust, or its designee, at a price per Share equal to the lesser of (a) the price per Share in the transaction that resulted in such Transfer to the Charitable Trust (or, in the case of a devise or gift, the Market Price at the time of such devise or gift) and (b) the Market Price on the date the Trust, or its designee, accepts such offer. The Trust shall have the right to accept such offer until the Charitable Trustee has sold the Shares held in the Charitable Trust pursuant to Section 2.4. Upon such a sale to the Trust, the interest of the Charitable Beneficiary in the Shares sold shall terminate and the Charitable Trustee shall distribute the net proceeds of the sale to the Prohibited Owner. The Trust may reduce the amount payable to the Prohibited Owner by the amount of dividends and other distributions which have been paid to the Prohibited Owner and are owed by the Prohibited Owner to the Charitable Trustee pursuant to Section 2.3 of this Article VII. The Trust may pay the amount of such reduction to the Charitable Trustee for the benefit of the Charitable Beneficiary.

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Section 2.6 *Designation of Charitable Beneficiaries*.*** By written notice to the Charitable Trustee, the Trust shall designate one or more nonprofit organizations to be the Charitable Beneficiary of the interest in the Charitable Trust such that (a) Shares held in the Charitable Trust would not violate the restrictions set forth in Section 1.1(a) in the hands of such Charitable Beneficiary and (b) each such organization must be described in Section 501(c)(3) of the Code and contributions to each such organization must be eligible for deduction under each of Sections 170(b)(1)(A), 2055 and 2522 of the Code. Neither the failure of the Trust to make such designation nor the failure of the Trust to appoint the Charitable Trustee before the automatic transfer provided in Section 1.1(b) shall make such transfer ineffective, provided that the Trust thereafter makes such designation and appointment.

Section 3. <u>NYSE Transactions</u>. Nothing in this Article VII shall preclude the settlement of any transaction entered into through the facilities of the NYSE or any other national securities exchange or automated inter-dealer quotation system. The fact that the settlement of any transaction occurs shall not negate the effect of any other provision of this Article VII and any transferee in such a transaction shall be subject to all of the provisions and limitations set forth in this Article VII.

Section 4. <u>Enforcement</u>. The Trust is authorized specifically to seek equitable relief, including injunctive relief, to enforce the provisions of this Article VII.

Section 5. <u>Non-Waiver</u>. No delay or failure on the part of the Trust or the Trustee in exercising any right hereunder shall operate as a waiver of any right of the Trust or the Trustee, as the case may be, except to the extent specifically waived in writing.

Section 6. <u>Severability</u>. If any provision of this Article VII or any application of any such provision is determined to be invalid by any federal or state court having jurisdiction over the issues, the validity of the remaining provisions shall not be affected and other applications of such provisions shall be affected only to the extent necessary to comply with the determination of such court.

ARTICLE VIII

SHAREHOLDERS

Section 1. <u>Meetings</u>. There shall be no requirement to hold an annual meeting of the Shareholders in any year. The Trustee may cause the Trust to call meetings of the Shareholders to act on any matter that may properly be brought before the Shareholders and shall cause the Trust to call a meeting of the Shareholders to act on any matter that may properly be brought before the Shareholders upon the written request of Shareholders entitled to cast at least a majority of the votes entitled to be cast on such matter, stating the purpose of such meeting. If there is no Trustee, the officers of the Trust (or, if there are none then serving, any Shareholder) shall promptly call a special meeting of the Shareholders for the purpose of electing a successor Trustee. Any meeting of the Shareholders shall be held at the date, time and place as shall be fixed by the Trustee (or, if there is no Trustee, the officer of the Trust calling such meeting) and stated in the notice of the meeting. Except as specified herein, Shareholders are not entitled to call meetings of the Shareholders. The Trust shall cause notice of any meeting of the Shareholders, stating the time and place of the meeting, to be delivered to be delivered to each Shareholder entitled to vote at such meeting, and to each Shareholder not entitled to vote who is entitled to notice of the meeting, not less than ten nor more than ninety (90) days before such meeting. Notice of any meeting of Shareholders may be delivered in any manner permitted under the MGCL for the delivery of notice of a meeting of stockholders of a Maryland corporation. No business may be transacted at a meeting of the Shareholders except as specifically designated in the notice of the meeting.

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Section 2. <u>Quorum; Voting</u>. At any meeting of Shareholders, the presence in person or by proxy of Shareholders entitled to cast a majority of all the votes entitled to be cast at such meeting on any matter that may properly come before the meeting shall constitute a quorum; but this Section 2 shall not affect any requirement under any statute or this Declaration of Trust for the vote necessary for the approval of any matter. If a quorum is not established at any meeting of Shareholders, the chairman of the meeting may conclude the meeting or adjourn the meeting from time to time without notice other than announcement at the meeting. At such adjourned meeting at which a quorum shall be present, any business may be transacted that might have been transacted at the meeting as originally notified. Voting on any question or in any election may be *viva voce* unless the chairman of the meeting shall order that voting be by ballot or otherwise. A Shareholder may vote at a meeting of Shareholders in person or by proxy authorized by the Shareholder or the Shareholder's duly authorized agent, in any manner permitted under Maryland law for the authorization of proxies by stockholders of a Maryland corporation. Such proxy or evidence of authorization of such proxy shall be filed with the Trust before or at the meeting. No proxy will be valid more than eleven months after its date unless otherwise provided in the proxy.

Section 3. <u>Conduct of Meetings</u>. At every meeting of the Shareholders, an individual designated by the Trustee or, in the absence of such designation or designated individual, the Trustee or, in the absence of the Trustee, a chairman chosen by the Shareholders entitled to cast a majority of the votes which all Shareholders present in person or by proxy are entitled to cast, shall act as chairman of the meeting, and an individual designated by the Trustee or, in the absence of such designation or designated individual, the secretary of the Trust, if one is appointed, or, in the secretary's absence, a person appointed by the chairman of the meeting shall act as secretary of the meeting. The Trustee or the chairman of the meeting may permit Shareholders to participate in meetings of the Shareholders by means of a conference telephone or other communications equipment by which all individuals participating in the meeting can hear each other at the same time. Participation in a meeting by these means constitutes presence in person at the meeting. The chairman of the meeting may prescribe such rules, regulations and procedures and take such action as, in the discretion of the chairman and without any action by the Shareholders, are appropriate for the proper conduct of the meeting.

Section 4. <u>Action by Shareholders without a Meeting</u>. Any action required or permitted to be taken at a meeting of Shareholders may be taken without a meeting if a consent in writing or by electronic transmission of Shareholders entitled to cast not less than the minimum number of votes that would be necessary to authorize or take the action at a meeting of Shareholders at which all Shareholders are present and voting and setting forth the action is delivered to the Trust. The Trust shall give notice of any action taken by less than unanimous consent to each Shareholder entitled to notice promptly after the effective time of such action.

Section 5. <u>Record Dates</u>. The Trustee may set, in advance, a record date for the purpose of determining the Shareholders entitled to notice of or to vote at any meeting of Shareholders or determining the Shareholders entitled to receive payment of any dividend or distribution or the allotment of any other rights, or in order to make a determination of Shareholders for any other proper purpose. Such date, in any case, shall not be prior to the close

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of business on the day the record date is fixed and shall be not more than ninety (90) days and, in the case of a meeting of Shareholders, not less than ten (10) days before the date on which the meeting is to be held or the particular action requiring such determination of Shareholders of record is to be taken. If no record date is fixed, (a) the record date for the determination of Shareholders entitled to notice of or to vote at any meeting of Shareholders shall be at the close of business on the day on which the notice of the meeting is mailed and (b) the record date for the determination of Shareholders entitled to receive payment of a dividend or distribution or an allotment of any other rights shall be the close of business on the day on which the Trustee authorizes the dividend or allotment of rights.

ARTICLE IX

OFFICERS AND AGENTS

Section 1. <u>General Provisions</u>. The Trustee may, from time to time, appoint and remove officers, employees and other agents of the Trust, to serve at the pleasure of the Trustee, with such powers and duties as the Trustee may determine. The officers of the Trust may include a chief executive officer, a president, one or more vice presidents, a chief financial officer, a treasurer, a secretary, and such other officers with such powers and duties as it shall deem necessary or desirable. The officers of the Trust, if any, shall be appointed by the Trustee, except that the chief executive officer or president may from time to time appoint one or more vice presidents or other subordinate officers and remove any officer so appointed. The duties of the officers of the Trust shall be as set forth in this Declaration of Trust and as from time to time prescribed by the Trustee or, in the case of any officer other than the chief executive officer or president, the chief executive officer or president. Each officer shall serve until his or her successor is appointed and qualifies or until his or her death or his or her resignation or removal in the manner hereinafter provided. Any two or more offices except president and vice president may be held by the same person. Appointment of an officer or agent shall not of itself create contract rights between the Trust and such officer or agent. In the absence of any other appointment of such officers, solely for the purpose of executing and attesting any amendment to the Certificate or any other document required by law to be executed and/or attested by one or more officers of the Trust, the most senior officer of the Trustee (or its general partner, if the Trustee is a partnership) shall be the chief executive officer and president of the Trust and any individual signing as such at the direction of the Trustee shall be the secretary of the Trust.

Section 2. <u>Removal and Resignation</u>. Any officer or agent of the Trust may be removed, with or without cause, by the Trustee, and any subordinate officer or agent of the Trust may be removed, with or without cause, by the chief executive officer or the president of the Trust, but any such removal shall be without prejudice to the contract rights, if any, of the person so removed. Any officer of the Trust may resign at any time by delivering his or her resignation to the Trustee, or to the chief executive officer, president or secretary of the Trust, if one is then appointed. Any resignation shall take effect immediately upon its receipt or at such later time specified in the resignation. The acceptance of a resignation shall not be necessary to make it effective unless otherwise stated in the resignation. Such resignation shall be without prejudice to the contract rights, if any, of the Trust.

Section 3. <u>Compensation</u>. The compensation (if any) of the officers of the Trust shall be fixed from time to time by or under the authority of the Trustee and no officer shall be prevented from receiving such compensation by reason of the fact that he or she is also the Trustee or an officer, employee or agent of the Trustee.

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ARTICLE X

LIABILITY OF SHAREHOLDERS, TRUSTEES, OFFICERS,

EMPLOYEES AND AGENTS; DUTIES OF TRUSTEE AND OFFICERS

Section 1. <u>Limitation of Shareholder Liability</u>. No Shareholder shall be liable for any debt, claim, demand, judgment or obligation of any kind of, against or with respect to the Trust by reason of being a Shareholder, nor shall any Shareholder be subject to any personal liability whatsoever, in tort, contract or otherwise, to any Person in connection with the property or affairs of the Trust.

Section 2. <u>Limitation of Trustee and Officer Liability</u>. To the maximum extent that Maryland law in effect from time to time permits limitation of the liability of trustees and officers of a statutory trust, no Trustee or officer of the Trust shall be liable to the Trust or to any Shareholder for money damages. Neither the amendment nor repeal of this Section 2 of Article X, nor the adoption or amendment of any other provision of this Declaration of Trust inconsistent with this Section 2 of Article X, shall apply to or affect in any respect the applicability of the preceding sentence with respect to any act or failure to act that occurred prior to such amendment, repeal or adoption.

Section 3. <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 To the maximum extent permitted by Maryland law in effect from time to time, the Trust shall indemnify and hold harmless the Trustee, the Investment Manager, any of their respective Affiliates, any officer, director, member, manager, partner, shareholder, employee, consultant or agent of any of the foregoing, and any other person who serves at the request of the Trustee on behalf of the Trust, including without limitation the Independent Client Representative (and any legal counsel, valuation agent or other service provider engaged by or on behalf of the Independent Client Representative) (each, an "<u>Indemnified Person</u>"), from and against any loss or damage incurred by any such Indemnified Person, for any act or omission or any alleged act or omission taken or suffered by each Indemnified Person (including, without limitation, any act or omission performed or omitted by such Indemnified Person in reasonable reliance upon, and in accordance with, the opinion or advice of experts, including, without limitation, legal counsel as to matters of law, accountants as to matters of accounting, or investment bankers or appraisers as to matters of valuation) in connection with the Trust or the Investments, including costs and reasonable attorneys' fees, all judgments and claims and any amount expended in the settlement of, or defense of, any actual or threatened claim, proceeding or action; *provided, however*, that no such indemnification will be provided to any Indemnified Person with respect to any act or omission: (i) with respect to which a court of competent jurisdiction (or other similar tribunal) has issued a final, non-appealable decision, judgment or order or with respect to which such Indemnified Person has entered a plea of nolo contendere or its equivalent, as the case may be, that such Indemnified Person acted with bad faith or active or deliberate dishonesty, received an improper personal benefit in money, property or services, was grossly negligent, engaged in willful misconduct or fraud or, in the case of any criminal proceeding, had reasonable cause to believe that such Indemnified Person's act or omission was unlawful, was grossly negligent, or engaged in willful misconduct or fraud, (ii) by such

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Indemnified Person that constitutes a willful and material breach of this Declaration of Trust (and such breach, if curable, was not cured within thirty (30) days after receipt of notice of such breach or thirty (30) days after such Indemnified Person becomes aware of such breach) and such breach of this Declaration of Trust has or is reasonably likely to have a material adverse effect on the Trust, or (iii) with respect to which a court of competent jurisdiction (or other similar tribunal) has issued a final, non-appealable decision, judgment or order that such Indemnified Person materially violated applicable U.S. federal or state securities laws and such violation has or is reasonably likely to have a material adverse effect on the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Expenses reasonably incurred by an Indemnified Person in defense or settlement of any claim, action or proceeding that may be subject to a right of indemnification hereunder (including, without limitation, attorneys' fees and other costs and expenses) shall be advanced by the Trust promptly (subject to the terms of this Article X) upon receipt of an undertaking by, or on behalf, of such Indemnified Person to repay such amount to the extent that it shall be determined upon final decision, judgment or order that such Indemnified Person is not entitled to be indemnified hereunder. No advances shall be made by the Trust under this Article X without the prior written approval of the Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 The satisfaction of any indemnification obligation pursuant to this Article X shall be from and limited to Trust assets, and no Shareholder shall have any personal liability on account thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 If an Indemnified Person is entitled to indemnification from another source or is entitled to recovery by insurance policies, such Indemnified Person shall diligently pursue such other source, provided that: (i) such obligation shall not in any manner limit such Indemnified Person's right to seek indemnification or advances under this Declaration of Trust; and (ii) such Indemnified Person shall remit to the Trust any funds it recovers from any such other source to the extent it has been fully indemnified by the Trust for all losses it incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 Notwithstanding the foregoing, the Trust shall not indemnify an Indemnified Person in connection with a proceeding initiated by such Indemnified Person with respect to another Indemnified Person or a proceeding initiated by another Indemnified Person (other than a proceeding initiated by such other Indemnified Person in its capacity as a Shareholder) with respect to such Indemnified Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 Notwithstanding any of the foregoing to the contrary, the provisions of this Article X shall not be construed so as to provide for the exculpation and indemnification of the Trustee or any other Indemnified Persons for any liability (including liability under The Employee Retirement Income Security Act of 1974 (ERISA) and U.S. federal securities laws which, under certain circumstances, impose liability even on persons that act in good faith), to the extent (but only to the extent) that such liability may not be waived, modified or limited under applicable law, but shall be construed so as to effectuate the provisions of Article X to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 Neither the amendment nor repeal of this Article X, nor the adoption or amendment of any other provision of this Declaration of Trust inconsistent with this Article X, shall apply to or affect in any respect the applicability of this Article X with respect to any act or failure to act which occurred prior to such amendment, repeal or adoption.

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Section 4. <u>Duties of Trustee, Officers and Affiliates</u>. Subject to any express restrictions in the Certificate or this Declaration of Trust or adopted by the Trustee, the Trustee, the Investment Manager and their respective Affiliates, principals, officers and employees may enter into and engage in any transaction or activity of any kind, including, without limitation, forming, sponsoring, advising, managing or investing in other investment funds, companies, vehicles and firms, including those with investment strategies and objectives similar to or in competition with the Trust's investment strategies and objectives, and shall not be required to refrain from any activity, to disgorge profits from any such activity or to devote all or any particular amount of time or effort to the Trust and its affairs. To the maximum extent permitted by the Act, as in effect from time to time, no Trustee or officer of the Trust shall have any duties, fiduciary or otherwise, to the Trust, any Shareholder or any creditor of the Trust, including any duty or obligation to present or offer any business opportunity to the Trust (other than any business opportunity which is presented to the Trustee or an officer of the Trust solely in such capacity) or to refrain from competing with the Trust, except that the Trustee shall have a duty to perform its obligations under the Act and this Declaration of Trust in good faith. The Trustee and each officer of the Trust shall, in the performance of his, her or its duties with respect to the Trust, be entitled to rely on any information, opinion, report or statement, including any financial statement or other financial data, prepared or presented by an officer or employee of the Trust whom the Trustee or officer reasonably believes to be reliable and competent in the matters presented or by a lawyer, certified public accountant or other person as to a matter which the Trustee or officer reasonably believes to be within the person's professional or expert competence.

ARTICLE XI

AMENDMENT

Section 1. <u>General</u>. The Trust reserves the right from time to time to make any amendment to the Certificate or this Declaration of Trust now or hereafter authorized by law, including any amendment altering the terms or contract rights, as expressly set forth in this Declaration of Trust, of any outstanding Shares. The Certificate or this Declaration of Trust may be amended only as provided in this Article XI. The merger or consolidation of the Trust with another Person, the dissolution of the Trust or any other transaction between the Trust and another Person in which the Trust does not survive as a separate entity shall not be considered an amendment to this Declaration of Trust for purposes of this Article XI.

Section 2. <u>Amendments by Trustee</u>. Except as expressly provided in the Certificate, Section 3 of this Article XI or the terms of any class or series of Shares, this Declaration of Trust may be amended by the Trustee, without any vote, consent or other action by the Shareholders. Except as may otherwise be expressly provided in the Certificate, the Certificate may be amended only by the Trustee, without any vote, consent or other action or approval by the Shareholders. The Trust shall give to each Shareholder notice of any amendment to this Declaration of Trust approved by the Trustee and without Shareholder vote, consent or action not later than ten days after the effective time of such amendment. Without limitation of the foregoing, prior to the occurrence of a Dissolution Event, the Trustee may, in its sole and absolute discretion and without any vote, consent or other action of the Shareholders (subject to Section 3 of this Article XI and Article XII), amend or restate this Declaration of Trust as the Trustee deems necessary or appropriate in connection with a Public REIT Conversion in order to (i) incorporate the terms and conditions required by the NASAA REIT Guidelines into this Declaration of Trust and (ii) allow the Trust to complete the Public REIT Conversion in accordance with all applicable federal and state laws, rules and regulations and prevailing market norms.

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Section 3. <u>Amendments by Shareholders</u>. Amendments to this Declaration of Trust that materially and adversely affect the contract rights of outstanding Shares, but excluding amendments of the type specified in Section 1 of Article VI of this Declaration of Trust (which shall not require approval of any Shareholder), must be approved by the Trustee and Shareholders entitled to cast a majority of the votes entitled to be cast on the matter. If any provision in this Declaration of Trust or under applicable law requires the consent or approval of the Shareholders, a Shareholder shall be conclusively deemed to have given such consent or approval if: (a) the Trustee sends such Shareholder a notice setting forth the matter on which its consent or approval is requested; (b) such notice requests that such Shareholder grant its consent or approval; (c) such notice states that, if such Shareholder fails within twenty (20) days (or such later date as the Trustee may determine) of its receipt of such notice to give a notice of non-consent or non-approval to the Trustee, such Shareholder shall be deemed to have granted such consent or approval; and (d) such Shareholder fails to give the Trustee such notice within such twenty (20) day period (or such later date as the Trustee may determine).

ARTICLE XII

MERGER, CONVERSION, CONSOLIDATION OR SALE OF TRUST PROPERTY

Section 1. <u>Merger, Consolidation or Sale of Trust Property</u>. The Trust may (a) merge with or into another entity, (b) consolidate with one or more other entities into a new entity, or (c) transfer all or substantially all of its assets to another person. Subject to the terms of any series or class of Shares at the time outstanding, any such action must be approved by the Trustee and, unless such action could be taken by a Maryland corporation without the approval of its stockholders pursuant to Subtitle 1 of Title 3 of the MGCL, Shareholders entitled to cast a majority of all of the votes entitled to be cast on the matter.

Section 2. <u>Conversion</u>. The Trust may convert into another form of entity provided that such conversion is approved by the Trustee. No vote of Shareholders is required in connection with any conversion approved by the Trustee.

ARTICLE XIII

TERM AND DISSOLUTION

Section 1. <u>Term</u>. The term of the Trust commenced on the date the Certificate was filed and shall continue until the Trust is dissolved pursuant to Section 2 of this Article XIII or pursuant to any applicable provision of the Act. No Shareholder or other Person shall have any right to petition a court for judicial dissolution of the Trust.

Section 2. <u>Dissolution</u>. Subject to the terms of any class or series of Shares at the time outstanding, the Trust will be dissolved and terminated upon the earliest to occur of the following (each, a "<u>Dissolution Event</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The written election of the Trustee at any time;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) An Event of Withdrawal; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The removal of the Trustee pursuant to Section 6 of Article V, subject to the election of the Shareholders to appoint a replacement Trustee pursuant to the terms of Section 6 of Article V.

ARTICLE XIV

MANAGEMENT FEE; PERMITTED AFFILIATE FEES

Section 1. <u>Management Fee</u>. In consideration of the investment management services provided by the Investment Manager pursuant to the Investment Management Agreement, the Trust shall pay the Investment Manager a management fee (the "<u>Management Fee</u>") in accordance with the terms of the Investment Management Agreement.

Section 2. <u>Permitted Affiliate Fees</u>. The Trust may compensate certain of the Trustee's Affiliates from time to time for services relating to the Trust's investments or operations, which may include property management services, property accounting services and leasing services and fund administration services (collectively, "<u>Permitted Affiliate Fees</u>"). Any such Permitted Affiliate Fees will be paid (or reimbursed) by the Trust and will not reduce the Management Fees otherwise payable to the Investment Manager. The Investment Manager will seek to ensure that any such Permitted Affiliate Fees will be at or below market rates, and any Permitted Affiliate Fees paid with respect to property management services will be at rates usual and customary for comparable property management services rendered to similar properties in the geographic market of the property, as determined by the Investment Manager in its discretion.

ARTICLE XV

EXPENSES

Section 1. <u>Trustee Expenses</u>. The Trustee and its Affiliates shall bear all normal operating costs and expenses incurred in connection with the management of the Trustee, without any right to reimbursement from the Trust for such expenses. Such normal operating costs and expenses to be borne by the Trustee will include, without limitation, expenditures on account of salaries, wages, benefits and other expenses of employees of the Trustee, general overhead, utilities and rentals payable for space used by the Trustee, office supplies, expenses for clerical, bookkeeping services, office equipment expenses, and shall exclude salaries, wages and other personnel costs allocable to employees of the Trustee and the Investment Manager providing legal, tax, accounting and administrative services to the Trust.

Section 2. <u>Organizational and Offering Expenses</u>. The Fund will reimburse the Investment Manager and its Affiliates (including the Trustee) for all O&O Expenses incurred by any such parties in accordance with the terms of the Investment Management Agreement.

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Section 3. <u>Trust Operating Expenses</u>. The Trust shall pay, directly or through reimbursement of the Trustee, the Investment Manager or their respective Affiliates, all costs and expenses relating to the activities, operations and investments of the Trust and the performance by the Trustee, the Investment Manager and their respective Affiliates of their respective obligations to the Trust (excluding any costs and expenses described in Section 1 of Article XV) including but not limited to: (i) the Management Fee and Permitted Affiliate Fees; (ii) all costs and expenses incurred in connection with the evaluation, negotiation, acquisition, operation, maintenance, improvement, leasing, project management, renovation, hedging, financing, refinancing, monitoring or disposition of Investments (whether or not consummated), including, without limitation, broken deal expenses (including for these purposes any expenses that would have been borne by any potential co-investors had such investment been consummated), private placement fees, sales commissions, appraisal fees, taxes, brokerage fees, project management fees, reasonable travel and out-of-pocket expenses, underwriting commissions and discounts, and costs and expenses relating to environmental, property management, engineering and appraisal services, insurance premiums, sales, leasing commissions, loan servicing fees, legal, accounting, investment banking, consulting, information services and professional fees and any other investment or disposition costs or expenses; (iii) all costs and expenses incurred in connection with the carrying of Investments, including, without limitation, custodial fees, trustee fees, maintenance and storage costs of books and records and other administrative fees and expenses; (iv) costs and liabilities (including damages) incurred in connection with any costs and expenses of any litigation, investigation or regulatory, self-regulatory, governmental or legal inquiries involving Trust activities (whether or not threatened or pending) and the amount of any judgment or settlement paid in connection therewith, indemnification expenses (including without limitation indemnification expenses relating to the Independent Client Representative or legal counsel, valuation agents or other service providers engaged by or on behalf of the Independent Client Representative), and insurance expenses (including premiums), and insurance expenses (including premiums); (v) all taxes, fees and other related charges payable by, or otherwise imposed on, the Trust, expenses incidental to the transfer, servicing, management and accounting for the Trust's cash and securities, including all charges of depositories and custodians; (vi) any costs and expenses incurred in connection with the Trust's reports and financial statements, tax returns, and any communications with or reporting to Shareholders, (vii) all principal, interest, expenses and fees incurred in connection with any indebtedness of the Trust or other credit arrangement; (viii) any fees and out-of-pocket expenses of professionals providing services to the Trust, whether to the Trust directly or on behalf of Investments, such as legal, compliance, accounting, audit, administration, consulting, valuation, audit and tax return preparation (including Permitted Affiliate Fees); (ix) any costs and expenses incurred in connection with any restructuring or amendments to the constituent or offering documents of the Trust and its Affiliates, including the Trustee; (x) any costs and expenses in connection with the solicitation of Shareholder votes or consents or meetings of Shareholders; (xi) any costs and expenses incurred in connection with the payment of dividends or other distributions to Shareholders; (xii) any costs and expenses incurred in connection with any valuation of the assets of the Trust; (xiii) salaries, wages and other personnel and employment costs allocable to employees of the Trustee and the Investment Manager providing legal, tax, accounting and administrative services to the Trust, provided that the amount reimbursed with respect thereto does not exceed the cost of such services if they had been performed by independent third parties (as determined by the Trustee in its sole and absolute discretion); (xiv) any costs and expenses incurred in connection with the dissolution, winding up, liquidation or termination of the Trust; (xv) fees (which may include on-going fees or ad-hoc fees for specific engagements) and expenses of the Independent Client Representative and meetings thereof (including any travel expenses and certain fees and expenses with respect to legal counsel valuation agents or other service providers engaged by or on behalf of the Independent Client Representative (if any)); and (xvi) any other extraordinary expenses and all other expenses incidental to the operation of the Trust.

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ARTICLE XVI

REPORTING

Section 1. <u>Financial Statements</u>. The Trustee shall cause to be prepared and transmitted or made available to the Shareholders, within one hundred-twenty (120) days after the end of each fiscal year of the Trust or as soon as is reasonably practicable thereafter, audited financial statements of the Trust prepared in accordance with the terms of United States generally accepted accounting principles consistently applied.

Section 2. <u>Financial Updates</u>. The Trustee shall cause to be prepared and transmitted or made available to the Shareholders, within sixty (60) days after the end of the first three fiscal quarters of each fiscal year of the Trust or as soon as is reasonably practicable thereafter, quarterly financial updates.

Section 3. <u>Tax Forms</u>. The Trust shall provide, by the filing deadline each year for the applicable form, in the case of U.S. Shareholders, an annual Internal Revenue Service ("IRS") Form 1099-DIV or IRS Form 1099-B, if required, and, in the case of non-U.S. Shareholders, an annual IRS Form 1042-S.

Section 4. <u>Electronic Delivery</u>. Unless otherwise restricted by law, all reports, financial statements, and other information to be provided or delivered by the Trust pursuant hereto may be delivered to Shareholders electronically, and each Shareholder hereby agrees to accept such electronic delivery.

ARTICLE XVII

MISCELLANEOUS

Section 1. <u>Defined Terms</u>. As used herein, the following terms shall have the meanings set forth below unless the context requires otherwise:

"<u>Act</u>" shall have the meaning given to such term in Article I.

"<u>Advisers Act</u>" shall mean the Investment Advisers Act of 1940, as amended.

"<u>Affiliate</u>" shall mean, with respect to any Person, any Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by or is under common control with the Person specified.

"<u>Aggregate Share Ownership Limit</u>" shall mean 9.9%, in value or number of shares, whichever is more restrictive, of the aggregate of the outstanding Shares, or such other percentage determined by the Trustee in accordance with Section 1.8 of Article VII.

"<u>Beneficial Ownership</u>" shall mean ownership of Shares by a Person, whether the interest in Shares is held directly or indirectly (including by a nominee), and shall include interests that would be treated as owned through the application of Section 544 of the Code, as modified by Section 856(h)(1)(B) of the Code. The terms "Beneficial Owner," "Beneficially Owns" and "Beneficially Owned" shall have the correlative meanings.

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"<u>Cause Event</u>" shall mean the entry of a final, non-appealable judgment, verdict or order by any court or governmental body of competent jurisdiction that either the Trustee or Investment Manager has committed acts or omissions in connection with the performance of their respective duties under this Declaration of Trust or the Investment Management Agreement, as applicable, that constitute fraud, bad faith, willful misconduct or gross negligence.

"<u>Certificate</u>" shall have the meaning given to such term in Article I.

"<u>Charitable Beneficiary</u>" shall mean one or more beneficiaries of the Charitable Trust as determined pursuant to Section 2.6 of Article VII, provided that each such organization must be described in Section 501(c)(3) of the Code and contributions to each such organization must be eligible for deduction under each of Sections 170(b)(1)(A), 2055 and 2522 of the Code.

"<u>Charitable Trust</u>" shall mean any trust provided for in Section 2.1 of Article VII.

"<u>Charitable Trustee</u>" shall mean the Person unaffiliated with the Trust and a Prohibited Owner that is appointed by the Trust to serve as trustee of the Charitable Trust.

"<u>Code</u>" shall have the meaning given to such term in Article I.

"<u>Common Share Ownership Limit</u>" shall mean 9.9% (in value or in number of Common Shares, whichever is more restrictive) of the aggregate of the outstanding Common Shares, or such other percentage determined by the Trustee in accordance with Section 1.8 of Article VII.

"<u>Constructive Ownership</u>" shall mean ownership of Shares by a Person, whether the interest in Shares is held directly or indirectly (including by a nominee), and shall include interests that would be treated as owned through the application of Section 318(a) of the Code, as modified by Section 856(d)(5) of the Code. The terms "Constructive Owner," "Constructively Owns" and "Constructively Owned" shall have the correlative meanings.

"<u>Declaration of Trust</u>" shall have the meaning given to such term in Article I.

"<u>Dissolution Event</u>" shall have the meaning given to such term in Article XIII, Section 2.

"<u>Event of Withdrawal</u>" shall mean (i) the commencement by the Trustee of any case, proceeding or other action: (a) under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it bankrupt or insolvent, or seeking reorganization, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts; or (b) seeking appointment of a receiver, trustee, custodian or other similar official for it or for all or any substantial part of its assets; (ii) the Trustee making a general assignment for the benefit of its creditors; (iii) any case, proceeding or other action of a nature referred to in clause (i) against the Trustee resulting in the entry of an order for relief or any such adjudication or appointment, or remaining undismissed,

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undischarged or unbonded for a period of one hundred-twenty (120) days; (iv) any case, proceeding or other action seeking issuance of a warrant of attachment, execution or similar process against all or any substantial part of the Trustee's assets resulting in the entry of an order for any such relief which shall not have been vacated, discharged, or stayed or bonded pending appeal within one hundred-twenty (120) days from the entry thereof; (v) the Trustee's consent to, approval of, or acquiescence in, any of the acts or relief described in clause (i), (ii), (iii) or (iv); (vi) the Trustee generally being unable to pay, or admitting in writing its inability to pay, its debts as they become due; (vii) the resignation of the Trustee as the trustee of the Trust, other than withdrawal and substitution of an Affiliate of the Trustee; or (viii) the occurrence of any other event of withdrawal of the Trustee under applicable law.

"<u>Excepted Holder Limit</u>" shall mean, provided that the affected Excepted Holder agrees to comply with the requirements established by the Trust pursuant to Section 1.7 of Article VII and subject to adjustment pursuant to Section 1.8 of Article VII, the percentage limit established by the Trustee pursuant to its authority under Section 1.7 of Article VII and set forth either in this Declaration or a written agreement between the Trustee and the Excepted Holder.

"<u>Fidelity Persons</u>" shall mean the Trustee, the Investment Manager and their respective Affiliates and their respective executives, employees and officers.

"<u>Independent Client Representative</u>" shall have the meaning given to such term in Article XVII, Section 2.

"<u>Initial Date</u>" shall mean the date of this Declaration of Trust; *provided, however*, that following any Restriction Termination Date, the term "Initial Date" shall mean the date on which the Trust files, and the SDAT accepts for record, a Certificate of Notice setting forth the determination of the Trust that it is in the best interests of the Trust to attempt to qualify or requalify as a REIT.

"<u>Indemnified Person</u>" shall have the meaning given to such term in Article X, Section 3.

"<u>Investment</u>" shall mean any investments in real estate or real-estate related assets acquired by the Trust, in accordance with the Trust's investment strategies, objectives and policies as set forth in the Memorandum or as otherwise established by the Trustee.

"<u>Investment Company Act</u>" shall mean the Investment Company Act of 1940, as amended.

"<u>Investment Manager</u>" shall mean Fidelity Diversifying Solutions LLC, a Delaware limited liability company.

"<u>Investment Management Agreement</u>" shall mean the Investment Management Agreement by and among the Investment Manager, the Trust and the Operating Partnership, as it may be amended or restated.

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"<u>Management Fee</u>" shall have the meaning given to such term in Article XIV, Section 1.

"<u>Memorandum</u>" shall mean the confidential private placement memorandum of the Trust related to the Private Offering, as it may be supplemented, amended or restated.

"<u>MGCL</u>" shall mean the Maryland General Corporation Law.

"<u>NASAA REIT Guidelines</u>" shall mean the Statement of Policy Regarding Real Estate Investment Trusts published by the North American Securities Administrators Association on May 7, 2007.

"<u>NAV</u>" shall have the meaning given to such term in Article VI, Section 11.2.

"<u>Operating Partnership</u>" shall mean 2022 Core Real Estate Operating Partnership LP, a Delaware limited partnership.

"<u>O&O Expenses</u>" shall mean any and all costs and expenses related to organizing and establishing the Trust, the Operating Partnership and any subsidiaries thereof and the offer and sale of Common Shares in the Private Offering.

"<u>Permitted Affiliate Fees</u>" shall have the meaning given to such term in Article XIV, Section 3.

"<u>Person</u>" shall mean an individual, corporation, partnership, limited liability company, estate, trust (including a trust qualified under Sections 401(a) or 501(c)(17) of the Code), a portion of a trust permanently set aside for or to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the Code, joint stock company or other legal entity and, for purposes of Article VII herein (and all defined terms used in such Article), also includes a group as that term is used for purposes of Section 13(d)(3) of the Exchange Act and a group to which an Excepted Holder Limit applies.

"<u>Plan Assets</u>" shall have the meaning set forth in Section 3(42) of the Employee Income Retirement Security Act of 1974, as amended.

"<u>Private Offering</u>" shall mean the offer and sale of Common Shares pursuant to the Memorandum in a private offering exempt from registration under the Securities Act.

"<u>Prohibited Owner</u>" shall mean, with respect to any purported Transfer, any Person who, but for the provisions of Article VII herein, would Beneficially Own or Constructively Own Shares in violation of Section 1.1 of Article VII, and, if appropriate in the context, shall also mean any Person who would have been the record owner of Shares that the Prohibited Owner would have so owned.

"<u>Public REIT Conversion</u>" shall mean an election by the Trustee to cause the Trust to take all actions deemed necessary and appropriate by the Trustee and its legal and other professional advisers in order to effect the transition of the Trust into an investment vehicle that intends to, among other things, offer one or more classes of Shares in a continuous public offering registered under the Securities Act and applicable state securities laws.

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"<u>REIT</u>" shall have the meaning given to such term in Article III, Section 1.

"<u>Restriction Termination Date</u>" shall mean the first day after the Initial Date on which the Trustee determines that it is no longer in the best interests of the Trust to attempt to, or continue to, qualify as a REIT or that compliance with the restrictions and limitations on Beneficial Ownership, Constructive Ownership and Transfers of Shares set forth herein is no longer required in order for the Trust to qualify as a REIT.

"<u>Securities Act</u>" shall mean the Securities Act of 1933, as amended.

"<u>Shareholders</u>" shall have the meaning given to such term in Article V, Section 1.

"<u>Shares</u>" shall have the meaning given to such term in Article VI, Section 1.

"<u>Transfer</u>" shall mean any issuance, sale, transfer, gift, assignment, devise or other disposition, as well as any other event that causes any Person to acquire Beneficial Ownership or Constructive Ownership of Shares or the right to vote or receive dividends on Shares, or any agreement to take any such actions or cause any such events, including (i) the granting or exercise of any option (or any disposition of any option), (ii) any disposition of any securities or rights convertible into or exchangeable for Shares or any interest in Shares or any exercise of any such conversion or exchange right and (iii) Transfers of interests in other entities that result in changes in Beneficial Ownership or Constructive Ownership of Shares; in each case, whether voluntary or involuntary, whether owned of record, Constructively Owned or Beneficially Owned and whether by operation of law or otherwise. The terms "Transferring" and "Transferred" shall have the correlative meanings.

"<u>Trustee</u>" shall have the meaning given to such term in Article V, Section 1.

Section 2. <u>Independent Client Representative</u>. The Trust shall have the authority to appoint one or more representatives, or a committee thereof (the "<u>Independent Client Representative</u>"), unaffiliated with the Investment Manager or any of its Affiliates to act as the agent of the Trust to give or withhold any consent of the Trust to a transaction in which the Investment Manager causes the Trust to purchase assets or other instruments, or borrow, from, or sell assets or other instruments, or lend, to, the Investment Manager, an Affiliate of the Investment Manager or another advisory client of the Investment Manager or its Affiliates or in which the Investment Manager or its Affiliates acts as broker for the Trust and a counterparty to the transaction or, from time to time, with respect to other matters. If appointed, the Independent Client Representative may be paid an annual or *ad hoc* fee by the Trust, the Trust may reimburse expenses of the Independent Client Representative, the Independent Client Representative will receive an indemnity from the Trust, and the Trust may also pay fees and expenses, and provide an indemnity, with respect to legal counsel, valuation agents other service providers engaged by or on behalf of the Independent Client Representative. The Trust shall have the right to change the Independent Client Representative, if appointed. Any consent of the Trust which may be required under the Advisers Act may be effectively given by (i) the Independent Client Representative, (ii) Shareholders not affiliated with the Trustee or the Investment Manager or their Affiliates holding a majority of the Shares held by such unaffiliated Shareholders or (iii) in the event the Independent Client Representative is not appointed and there is no other conflicts or similar committee to provide consent on behalf of the Trust, the Trustee shall be authorized to provide its consent on behalf of the Trust with respect to "principal transactions" under the Advisers Act.

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Section 3. <u>Notice</u>. Notice of any matter required to be given hereunder may be delivered personally or by telephone (only with respect to notice being given by the Trust to other persons), electronic transmission, United States mail or courier, if to the Trust, to the address of its principal office, attention to the Trustee, chief executive officer or president, and if to any other person, to any address, electronic address, telephone number (only with respect to notice being given by the Trust to other persons) or facsimile number provided by such person to the Trust in accordance with the provisions of this Section 2 of Article XVI. Telephone notice shall be deemed to be given when the recipient or his, her or its agent is personally given such notice in a telephone call to which the recipient or his, her or its agent is a party. Notice by electronic transmission shall be deemed to be given upon transmission of the message to the electronic mail address, facsimile number or other electronic address given to the Trust by the recipient and, if transmitted by facsimile, upon receipt of a completed answer-back indicating receipt. Notice by United States mail shall be deemed to be given when deposited in the United States mail properly addressed, with postage thereon prepaid. Notice by courier shall be deemed to be given when deposited with or delivered to a courier properly addressed.

Section 4. <u>Waiver of Notice</u>. Whenever any notice of any meeting is required to be given hereunder or pursuant to law, a waiver thereof, given by the person or persons entitled to such notice in writing or by electronic transmission, whether before or after the time stated therein, shall be equivalent to the giving of such notice. Neither the business to be transacted at nor the purpose of any meeting need be set forth in a waiver of notice of any meeting. The attendance of any person at any meeting shall constitute a waiver of notice of such meeting, except where such person attends a meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened.

Section 5. <u>Certificate of Trust</u>. In the event of any conflict between the provisions of the Certificate and this Declaration of Trust, the provisions of the Certificate shall control.

Section 6. <u>Inspection</u>. Any Shareholder shall be entitled to examine the Trust's books and records to the extent permitted by Section 12-305 of the Act, but only if, and to the extent, approved by the Trustee.

Section 7. <u>Rights of Objecting Shareholders; Derivative Claims</u>. Shareholders shall not be entitled to exercise any appraisal rights or rights analogous to those of an objecting stockholder provided for under Title 3, Subtitle 2 of the MGCL or any successor statute. A Shareholder shall not be entitled to recover a judgment in favor of the Trust, assert any claim in the name of the Trust or bring any other action that is derivative in nature without the approval of the Trustee.

Section 8. <u>Governing Law</u>. The rights of all parties and the validity, construction and effect of every provision of this Declaration of Trust shall be subject to and construed according to the laws of the State of Maryland, without regard to conflicts of laws provisions thereof.

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Section 9. <u>Third Party Beneficiary</u>. The Investment Manager is an express third-party beneficiary of the terms of Article X, Section 3 hereof and Article XIV and Article V hereof.

- *Signature page follows* -

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IN WITNESS WHEREOF, this Declaration of Trust has been executed as of the date and year first above written, by the undersigned Trustee.

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| | |
|:---|:---|
| Fidelity CRET Trustee LLC,<br> a Delaware limited liability company | Fidelity CRET Trustee LLC,<br> a Delaware limited liability company |
| By: | /s/ Brian C. McLain |
| Name: | Brian C. McLain |
| Title: | Authorized Person |

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## Exhibit 4.1

**EXHIBIT 4.1** 

**<u>DISTRIBUTION REINVESTMENT PLAN</u>**

This Distribution Reinvestment Plan (the "<u>Plan</u>") is adopted by Fidelity Core Real Estate Fund (the "<u>Fund</u>") pursuant to its Declaration of Trust (as amended or restated from time to time, the "<u>Declaration of Trust</u>"). Unless otherwise defined herein, capitalized terms shall have the same meaning as set forth in the Declaration of Trust.

1. ***Distribution Reinvestment.*** As agent for the shareholders of the Fund (the "<u>Shareholders</u>") who purchase the shares of beneficial interest of the Fund (collectively, "<u>Shares</u>") pursuant to the Fund's private offering of Shares pursuant to the applicable exemption from registration under the Securities Act (the "<u>Private Placement</u>") and who elect to participate in the Plan (the "<u>Participants</u>"), the Fund will apply all dividends and distributions declared and paid in respect of the Shares held by each Participant and attributable to the Shares purchased by such Participant (the "<u>Distributions</u>"), including Distributions paid with respect to any full or fractional Shares acquired under the Plan, to the purchase of additional Shares for such Participant.

2. ***Effective Date.*** The effective date of the Plan shall be the date that the Private Placement commences, as determined by the Fund.

3. ***Procedure for Participation.*** Any Shareholder who has received a copy of the Fund's confidential private placement memorandum with respect to the Private Placement (as amended, supplemented or restated, the "<u>Memorandum</u>"), will become a Participant if they elect to become a Participant by noting such election on their subscription agreement. If any Shareholder initially elects not to be a Participant, they may later become a Participant by subsequently completing and executing an enrollment form or any appropriate authorization form as may be available from the Fund, the Fund's transfer agent, the placement agent or dealer manager for the Private Placement or any broker-dealer or investment adviser participating in the distribution of Shares in the Private Placement.

Participation in the Plan will begin with the next Distribution payable after acceptance of a Participant's subscription, enrollment or authorization. Shares will be purchased under the Plan on the date that Distributions are paid by the Fund.

4. ***Suitability.*** Each Participant is required to promptly notify the Fund in writing if the Participant experiences a material change in his, her or its financial condition, including without limitation the failure to continue to qualify as an "accredited investor" (as defined by Rule 501(a) of the Securities Act) or any other investment suitability standards imposed by the Fund and set forth in the Memorandum. Further, each Participant will provide any periodic certifications of its continued qualification as an accredited investor as may be reasonably requested by the Fund.

***5. Purchase of Shares.*** Participants will acquire Shares from the Fund at a price equal to the net asset value ("<u>NAV</u>") per Share applicable to the Shares purchased by the Participant on the date that the Distribution is payable (calculated as of the most recent month end). No upfront placement agent fees or selling commissions will be payable with respect to Shares issued pursuant to the Plan. Participants in the Plan may purchase fractional Shares so that 100% of the Distributions will be used to acquire Shares. However, a Participant will not be able to acquire Shares pursuant to the Plan and such Participant's participation in the Plan will be terminated to the extent that a reinvestment of such Participant's Distributions in Shares would cause the percentage ownership or other limitations contained in the Declaration of Trust to be violated.

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6. ***Taxes.*** THE REINVESTMENT OF DISTRIBUTIONS DOES NOT RELIEVE A PARTICIPANT OF ANY INCOME TAX LIABILITY THAT MAY BE PAYABLE THEREON. INFORMATION REGARDING POTENTIAL TAX INCOME LIABILITY OF PARTICIPANTS MAY BE FOUND IN THE MEMORANDUM.

7. ***Share Certificates.*** The ownership of the Shares purchased through the Plan will be in book-entry form unless and until the Fund issues certificates for its outstanding Shares.

8. ***Reports.*** On a quarterly basis, the Fund shall provide each Participant a statement of account describing, as to such Participant: (i) the Distributions reinvested during the quarter; (ii) the number of Shares purchased pursuant to the Plan during the quarter; (iii) the per Share purchase price for such Shares; and (iv) the total number of Shares purchased on behalf of the Participant under the Plan. On an annual basis, tax information with respect to income earned on Shares under the Plan for the calendar year will be provided to each Participant.

9. ***Termination by Participant.*** A Participant may terminate participation in the Plan at any time, without penalty, by delivering ten (10) business days' prior written notice to the Fund. This notice must be received by the Fund prior to the last day of a month in order for a Participant's termination to be effective for such month (*i.e*., a timely termination notice will be effective as of the last day of a month in which it is timely received and will not affect participation in the Plan for any prior month). Any transfer of Shares by a Participant to a non-Participant will terminate participation in the Plan with respect to the transferred Shares. If a Participant requests that the Fund repurchase a portion of the Participant's Shares, the Participant's participation in the Plan will continue with respect to the Participant's Shares that were not repurchased. If a Participant requests that the Fund repurchase all of the Participant's Shares, the Participant's participation in the Plan will be automatically terminated, whether or not all of the Participant's Shares are actually repurchased. If a Participant terminates Plan participation, the Fund may, at its option, ensure that the terminating Participant's account will reflect the whole number of Shares in such Participant's account and provide a check for the cash value of any fractional share in such account. Upon termination of participation in the Plan for any reason, all future Distributions will be distributed to the former Participant in cash.

10. ***Amendment, Suspension or Termination by the Fund.*** The Trustee may amend any aspect of the Plan; *provided, however*, that the Plan cannot be amended to eliminate a Participant's right to terminate participation in the Plan and notice of any such amendment will be provided to the Shareholders. The Trustee may suspend the Plan for any reason, provided that notice of any such suspension will be provided to the Shareholders.

11. ***Liability of the Fund.*** The Fund shall not be liable for any act done in good faith, or for any good faith omission to act, including, without limitation, any claims or liability with respect to the time and the prices at which Shares are purchased or sold for a Participant's account.

## Exhibit 4.2

**EXHIBIT 4.2** 

**FIDELITY CORE REAL ESTATE FUND** 

**SHARE REPURCHASE PLAN** 

Effective as of February 1, 2026

**Definitions** 

*Business Day –* shall mean any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions in New York are authorized or required by law, regulation or executive order to close.

*Code –* shall mean the Internal Revenue Code of 1986, as amended.

*Company* – shall mean Fidelity Core Real Estate Fund, a Maryland statutory trust.

*Incentive Fee* – shall mean the incentive fee payable to the Investment Manager pursuant to the Investment Management Agreement between the Company, the Operating Partnership and the Investment Manager.

*Investment Manager* – shall mean Fidelity Diversifying Solutions LLC, a Delaware limited liability company.

*Management Fee* – shall mean the management fee payable to the Investment Manager pursuant to the Investment Management Agreement between the Company, the Operating Partnership and the Investment Manager.

*Memorandum* – shall mean the Company's confidential private placement memorandum with respect to the offer and sale of the Shares, as may be supplemented or amended from time to time.

*NAV* – shall mean the net asset value of the Company attributable to its Shareholders or the net asset value of a class of its Shares, as the context requires, determined in accordance with the Company's net asset value calculation guidelines as set forth in the Memorandum.

*Operating Partnership* – shall mean Fidelity Core Real Estate Operating Partnership LP, a Delaware limited partnership.

*OP Units* – shall mean units of limited partner interest in the Operating Partnership.

*Plan* – shall mean this share repurchase plan of the Company.

*Shares* – shall mean shares of beneficial interest of the Company.

*Shareholders* – shall mean the holders of Shares of all classes.

*Transaction Price* – shall mean the repurchase price per Share for each class of Shares, which shall generally be equal to the most recently determined NAV per Share as of the applicable Repurchase Date.

*Trustee* – shall mean Fidelity CRET Trustee LLC, a Delaware limited liability company.

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**Share Repurchase Plan** 

Shareholders may request that the Company repurchase Shares through their financial intermediary or directly through Fidelity's online portal or the Company's transfer agent. The procedures relating to the repurchase of Shares are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial intermediaries will require that their clients process repurchases through such financial intermediary,
which may impact the time necessary to process such repurchase request, impose more restrictive deadlines than described under this Plan, impact the timing of a Shareholder receiving repurchase proceeds and require different paperwork or process
than described in this Plan. Please contact your financial intermediary or financial advisor for additional instructions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under this Plan, to the extent the Company chooses to repurchase Shares in any particular quarter, the Company
will only repurchase Shares as of the opening of the last calendar day of that quarter (a "**Repurchase Date** "). To have Shares repurchased, a Shareholder's repurchase request and required documentation must be received by the
Company's transfer agent in good order by 4:00 p.m. (Eastern time) on the second to last Business Day of the applicable quarter. Settlements of Share repurchases will generally be made within five Business Days of the Repurchase Date.
Repurchase requests received and processed by the Company's transfer agent will be effected on each Repurchase Date at a repurchase price equal to the Transaction Price applicable to such Repurchase Date, subject to any Early Repurchase
Deduction (as defined below). A Shareholder will not be entitled to receive any distributions declared with respect to any Shares that are repurchased prior to the applicable time of the record date for such distributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A Shareholder may withdraw such Shareholder's repurchase request by utilizing Fidelity's online
portal or notifying the Company's transfer agent, directly or through the Shareholder's financial intermediary. Repurchase requests must be cancelled before 4:00 p.m. (Eastern time) on the last Business Day of the applicable quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If a repurchase request is received by the Company's transfer agent after 4:00 p.m. (Eastern time) on the
second to last Business Day of the applicable quarter, the repurchase request will be executed, if at all, on the next quarter's Repurchase Date at the Transaction Price applicable to that quarter (subject to any Early Repurchase Deduction),
unless such request is withdrawn prior to the repurchase. Repurchase requests received and processed by the Company's transfer agent on a Business Day, but after the close of business on that day or on a day that is not a Business Day, will be
deemed received on the next Business Day. All questions as to the form and validity (including time of receipt) of repurchase requests and notices of withdrawal will be determined by the Company, in its sole discretion, and such determination shall
be final and binding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shareholders may make repurchase requests by contacting the Shareholder's financial intermediary.
Repurchase requests will be subject to the terms of this Plan. A Shareholder's financial intermediary may require the Shareholder to execute a repurchase authorization form and provide certain other documentation or information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Corporate investors and other non-individual entities must have an
appropriate certification on file authorizing repurchases.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shareholders that hold Shares directly through their Fidelity brokerage account will generally have the
repurchase proceeds credited to their brokerage account.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shareholders may also receive repurchase proceeds via wire transfer, provided that wiring instructions for their
brokerage account or designated U.S. bank account are provided. For all repurchases paid via wire transfer, the funds will be wired to the account on file with the transfer agent or, upon instruction, to another financial institution provided that
the Shareholder has made the necessary funds transfer arrangements. Call your Fidelity advisor or the financial intermediary for detailed instructions on establishing funding arrangements and designating a bank or brokerage account on file. Funds
will be wired only to U.S. financial institutions (ACH network members).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If a Shareholder has made multiple purchases of Shares, any repurchase request will be processed (i) for
Shareholders who hold their Shares directly through their Fidelity brokerage account, on the basis specified on the Shareholder's Fidelity brokerage account, and (ii) for Shareholders who hold their Shares via a different financial
intermediary, on a first in/first out basis unless otherwise requested in the repurchase request. Notwithstanding the foregoing, any repurchase by any Shareholder that is subject to the Early Repurchase Deduction will be processed on a first
in/first out basis.

***Minimum Account Repurchases***

In the event that any Shareholder holds less than a single Share, the Company may repurchase the remaining percentage of such partial Share held by that Shareholder at the repurchase price in effect on the date the Company determines that such Shareholder has failed to meet the single Share ownership requirement, less any Early Repurchase Deduction if applicable. In the event that a Shareholder submits a partial repurchase request that would result in such Shareholder holding less than one full Share, the Company may in its discretion request that such Shareholder request a complete redemption of all of its Shares or modify the repurchase request such that the Shareholder holds at least a single full Share.

***Sources of Funds for Repurchases***

The Company may fund repurchase requests from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds (including from sales of Shares or OP Units), and there is no limit on the amount the Company may pay from such sources.

***Repurchase Limitations***

The Company may repurchase fewer Shares than have been requested in any particular quarter to be repurchased under this Plan, or none at all, in its discretion at any time. In addition, the aggregate NAV of total repurchases of Shares of all classes under this Plan will be limited to no more than 5% of the Company's aggregate NAV per calendar quarter (measured using the average aggregate NAV attributable to Shareholders as of the end of the immediately preceding three months) (the "**Quarterly Limit**"). For example, such Quarterly Limit for a June 30<sup>th</sup> Repurchase Date will be based upon the average of the Company's March 31<sup>st</sup>, April 30<sup>th</sup> and May 31<sup>st</sup> NAVs.

In the event that the Company determines to repurchase some but not all of the Shares submitted for repurchase during any quarter under this Plan, Shares submitted for repurchase during such quarter will be repurchased on a pro rata basis. All unsatisfied repurchase requests must be resubmitted by the Shareholder, or upon the recommencement of this Plan, as applicable.

If the Transaction Price applicable to a quarter is not made available by the tenth Business Day prior to the last Business Day of such quarter (or is changed after such date), then no repurchase requests will be accepted for such quarter and Shareholders who wish to have their Shares repurchased the following quarter must resubmit their repurchase requests. The Transaction Price applicable to each quarter will be made available on the Company's website at *institutional.fidelity.com*.

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Should repurchase requests, in the Trustee's judgment, place an undue burden on the Company's liquidity, adversely affect the Company's operations or impose an adverse impact on the Company as a whole, or should the Trustee otherwise determine that investing the Company's liquid assets in real properties or other investments rather than repurchasing Shares is in the best interests of the Company as a whole, the Trustee may determine to repurchase fewer Shares in any particular quarter than have been requested to be repurchased (including relative to the Quarterly Limit), or none at all. Further, the Trustee may, in certain circumstances, make exceptions to such repurchase limitations (or repurchase fewer Shares than such repurchase limitations), or modify or suspend this Plan if, in its reasonable judgment, it deems such action to be in the best interest of the Company and its Shareholders. Shareholders will be promptly notified of any material modifications to and suspensions of this Plan. In addition, the Company may disclose such material amendments to or suspensions of this Plan in a supplement to the Memorandum or in a special or periodic report filed by the Company with the Securities and Exchange Commission (once the Company is subject to public reporting obligations under the Securities Exchange Act of 1934, as amended). In addition, the Company may determine to suspend this Plan due to regulatory changes, changes in law or if the Company becomes aware of undisclosed material information that it believes should be disclosed before Shares are repurchased. Upon the determination by the Trustee to (i) suspend this Plan or (ii) materially modify this Plan in a manner that reduces liquidity available to the Shareholders, the Trustee will consider, at least quarterly, whether continuing to restrict repurchases or resuming repurchases at the original repurchase limits set forth in this Plan would be in the best interests of the Company and its Shareholders. The Trustee must affirmatively authorize the recommencement of this Plan if it is suspended before Shareholder requests will be considered again. The Trustee cannot terminate this Plan absent a liquidity event which results in Shareholders receiving cash or securities listed on a national securities exchange or where otherwise required by law.

Shares held by the Investment Manager acquired as payment of the Management Fee or the Incentive Fee will not be subject to this Plan, including with respect to any repurchase limits or the Early Repurchase Deduction.

Shareholders who are exchanging a class of Shares for an equivalent aggregate NAV of another class of Shares will not be subject to, and will not be treated as repurchases for the calculation of, the Quarterly Limit on repurchases and will not be subject to the Early Repurchase Deduction.

*Early Repurchase Deduction* 

There is no minimum holding period for Shares and Shareholders can request that the Company repurchase their Shares at any time. However, subject to limited exceptions, Shares that have not been outstanding for at least one year will be repurchased at 98% of the applicable Transaction Price (an "**Early Repurchase Deduction**") on the applicable Repurchase Date. The Early Repurchase Deduction will generally apply to minimum account repurchases. The Early Repurchase Deduction will not apply to Shares acquired through the Company's distribution reinvestment plan.

The one-year holding period is measured as of the first calendar day immediately following the prospective Repurchase Date (for example, Shares repurchased as of a June 30<sup>th</sup> Repurchase Date will not be subject to the Early Repurchase Deduction if, as of July 1<sup>st</sup> (the calendar day immediately following the Repurchase Date), such Shares have been issued and outstanding for at least 365 days).

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Shares repurchased will be treated as having been repurchased on a "first-in–first-out" basis for purposes of determining whether and to what extent the Early Repurchase Deduction is applicable. Therefore, the portion of Shares repurchased will be deemed to have been taken from the earliest Shares purchased by such Shareholder for purposes of determining whether and to what extent the Early Repurchase Deduction is applicable, except that in all cases Shares issued pursuant to the Company's distribution reinvestment plan will be treated as having been repurchased first.

The Company may waive the Early Repurchase Deduction due to a trade or operational error.

***Items of Note***

When Shareholders make a request to have Shares repurchased, Shareholders should note the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under applicable anti-money laundering regulations and other federal regulations, repurchase requests may be
suspended, restricted or canceled and the proceeds may be withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• IRS regulations require the Company to determine and disclose on Form 1099-B the adjusted cost basis for Shares sold or repurchased. For Shareholders who hold their Shares directly through their Fidelity brokerage account, the Company will utilize the basis specified on the
Shareholder's Fidelity brokerage account. For Shareholders who hold their Shares via a different financial intermediary, the Company will utilize the first in/first out basis unless otherwise requested in the repurchase request.
Notwithstanding the foregoing, for any repurchase by any Shareholder that is subject to the Early Repurchase Deduction, the Company will utilize the first in/first out basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All Shares requested to be repurchased must be beneficially owned by the Shareholder of record making the request
or his or her estate, heir or beneficiary, or the party requesting the repurchase must be authorized to do so by the Shareholder of record of the Shares or his or her estate, heir or beneficiary, and such Shares must be fully transferable and not
subject to any liens or encumbrances. In certain cases, the Company may ask the requesting party to provide evidence satisfactory to the Company that the Shares requested for repurchase are not subject to any liens or encumbrances. If the Company
determines that a lien exists against the Shares, the Company will not be obligated to repurchase any Shares subject to the lien.

## Exhibit 10.1

**EXHIBIT 10.1** 

<u>SECOND AMENDED AND RESTATED</u> 

<u>INVESTMENT MANAGEMENT AGREEMENT</u> 

THIS SECOND AMENDED AND RESTATED INVESTMENT MANAGEMENT AGREEMENT (this "<u>Agreement</u>") is executed as of December 19, 2024, and effective as of January 1, 2025, by and among Fidelity Core Real Estate Fund, a Maryland statutory trust (the "<u>Fund</u>"), Fidelity Core Real Estate Operating Partnership LP, a Delaware limited partnership (the "<u>Operating Partnership</u>"), and Fidelity Diversifying Solutions LLC, a Delaware limited liability company (the "<u>Investment Manager</u>"). The Fund, the Operating Partnership and the Investment Manager are collectively referred to herein as "<u>Parties</u>," and each, a "<u>Party</u>."

<u>RECITALS</u> 

WHEREAS, the Parties previously entered into the Amended and Restated Investment Management Agreement, dated March, 2024 (the "<u>Prior Agreement</u>"); and

WHEREAS, the Parties now desire to amend and restate the Prior Agreement pursuant to the terms hereof.

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Defined Terms</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Capitalized terms not otherwise defined herein shall have the meanings given to such terms in the Declaration of Trust of the Fund (as amended or restated and from time to time in effect, the "<u>Declaration of Trust</u>"). If any term hereof conflicts with the terms of the Declaration of Trust, the terms of the Declaration of Trust shall govern and control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As used in this Agreement, the following terms have the definitions hereinafter indicated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Excess Profits</u>" has the meaning given to such term in Section 6(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "<u>Fund Documents</u>" has the meaning given to such term in Section 2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "<u>Fund Incentive Fee</u>" has the meaning given to such term in Section 6(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "<u>Hurdle Amount</u>" for any period during a calendar year means that amount that results in a five percent (5.0)% annualized internal rate of return on the NAV of the Shares outstanding at the beginning of the then-current calendar year and all Shares issued since the beginning of the then-current calendar year, taking into account the timing and amount of all distributions accrued or paid (without duplication) on all such Shares and all issuances of Shares over the period and calculated in accordance with recognized industry practices. The ending NAV of the Shares used in calculating the internal rate of return will be calculated before giving effect to any allocation or accrual to the Fund Incentive Fee, provided that the calculation of the Hurdle Amount for any period will exclude any Shares repurchased during such period, which Shares will be subject to the Incentive Fee upon such repurchase as described in Section 6(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "<u>Incentive Fee</u>" has the meaning given to such term in Section 6(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) "<u>Indemnified Person</u>" has the meaning given to such term in Section 10(b).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) "<u>Investment Guidelines</u>" has the meaning given to such term in Section 2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) "<u>Loss Carryforward Amount</u>" shall initially equal zero and shall cumulatively increase by the absolute value of any negative annual Total Return and decrease by any positive annual Total Return, provided that the Loss Carryforward Amount shall at no time be less than zero and provided further that the calculation of the Loss Carryforward Amount will exclude the Total Return related to any Shares repurchased during such year, which Shares will be subject to the Fund Incentive Fee upon such repurchase as described in Section 6(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) "<u>Management Fee</u>" has the meaning given to such term in Section 6(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "<u>Memorandum</u>" has the meaning given to such term in Section 2(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) "<u>NAV</u>" means the Fund's net asset value, calculated as set forth in the Fund Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) "<u>OP Excess Profits</u>" has the meaning given to such term in Section 6(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) "<u>OP Hurdle Amount</u>" for any period during a calendar year means that amount that results in a five percent (5.0%) annualized internal rate of return on the OP NAV of the OP Incentive Units outstanding at the beginning of the then current calendar year and all OP Incentive Units issued since the beginning of the then-current calendar year, taking into account the timing and amount of all distributions accrued or paid (without duplication) on all such OP Incentive Units and all issuances of OP Incentive Units over the period and calculated in accordance with recognized industry practices. The ending OP NAV of the OP Incentive Units used in calculating the internal rate of return will be calculated before giving effect to any allocation or accrual to the OP Incentive Fee, provided that the calculation of the OP Hurdle Amount for any period will exclude any OP Incentive Units repurchased during such period, which OP Incentive Units will be subject to the OP Incentive Fee upon such repurchase as described in Section 6(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) "<u>OP Incentive Fee</u>" has the meaning given to such term in Section 6(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) "<u>OP Incentive Units</u>" means OP Units held by unitholders other than the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) "<u>OP Loss Carryforward Amount</u>" shall initially equal zero and shall cumulatively increase by the absolute value of any negative annual OP Total Return and decrease by any positive annual OP Total Return, provided that the OP Loss Carryforward Amount shall at no time be less than zero and provided further that the calculation of the OP Loss Carryforward Amount will exclude the OP Total Return related to any OP Incentive Units repurchased during such year, which OP Incentive Units will be subject to the OP Incentive Fee upon such repurchase as described in Section 6(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) "<u>OP NAV</u>" means the Operating Partnership's net asset value, calculated as set forth in the Fund Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) "<u>OP Total Return</u>" for any period since the end of the prior calendar year shall equal the sum of: (i) all distributions accrued or paid (without duplication) on the OP Incentive Units outstanding at the end of such period since the beginning of the then-current calendar year plus (ii) the change in aggregate OP NAV of such OP Incentive Units since the beginning of such year, before giving effect to (x) changes resulting solely from the proceeds of issuances of OP

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Incentive Units, and (y) any allocation or accrual to the OP Incentive Fee. For the avoidance of doubt, the calculation of OP Total Return will (i) include any appreciation or depreciation in the OP NAV of OP Incentive Units issued during the then-current calendar year but (ii) exclude the proceeds from the initial issuance of such OP Incentive Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) "<u>OP Units</u>" means units of limited partnership interest in the Operating Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) "<u>Operating Partnership Agreement</u>" means the Second Amended and Restated Limited Partnership Agreement of the Operating Partnership, dated January 1, 2025, as it may be amended or restated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) "<u>Share Repurchase Plan</u>" has the meaning given to such term in Section 6(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii) "<u>Total Return</u>" for any period since the end of the prior calendar year shall equal the sum of: (i) all distributions accrued or paid (without duplication) on the Shares outstanding at the end of such period since the beginning of the then-current calendar year, plus (ii) the change in aggregate NAV of such Shares since the beginning of such year, before giving effect to (x) changes resulting solely from the proceeds of issuances of Shares, and (y) any allocation or accrual to the Fund Incentive Fee. For the avoidance of doubt, the calculation of Total Return will (i) include any appreciation or depreciation in the NAV of Shares issued during the then-current calendar year but (ii) exclude the proceeds from the initial issuance of such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Appointment of the Investment Manager</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms and conditions of this Agreement, the Fund and the Operating Partnership hereby appoint the Investment Manager to serve as their investment adviser and to provide the services to the Fund and the Operating Partnership provided for in this Agreement, and the Investment Manager hereby accepts such appointment. Except as otherwise provided in this Agreement, the Investment Manager hereby agrees to use its commercially reasonable efforts to perform the duties set forth herein. In the performance of its duties hereunder, the Investment Manager will comply with the provisions of the Declaration of Trust, the Operating Partnership Agreement and the Fund's investment objectives, guidelines and restrictions (hereinafter the "<u>Investment Guidelines</u>"), as described in the Fund's Confidential Private Placement Memorandum (as revised from time to time, the "<u>Memorandum</u>" and together with the Declaration of Trust and the Operating Partnership Agreement, the "<u>Fund Documents</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Investment Manager will at all times be an independent contractor and nothing in this Agreement shall be construed to constitute the Investment Manager an agent, employee, officer, or general partner of the Fund or the Operating Partnership. The Investment Manager may, at its sole cost, engage sub-managers and consultants, including Affiliates of the Investment Manager, to assist it in the performance of its duties hereunder on such terms and conditions as it shall determine in its sole discretion, including, without limitation, the delegation of the powers and duties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Authority of Investment Manager</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Pursuant to the terms of this Agreement, and subject to the continuing and exclusive authority of the Trustee over the management of the Fund (and the authority of the Fund as the general partner of the Operating Partnership), the Trustee hereby (i) delegates to the Investment Manager the authority to take, or cause to be taken, any and all actions and to execute and deliver any and all agreements, certificates, assignments, instruments or other documents and to do any and all things that, in

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the judgment of the Investment Manager, may be necessary or advisable in connection with the Investment Manager's duties hereunder, including the making of any Investment that fits within the Investment Guidelines and (ii) constitutes and appoints the Investment Manager as the Fund's, the Trustee's, and the Operating Partnership's true and lawful representative and attorney-in-fact, in the Fund's, the Trustee's, and the Operating Partnership's name, place and stead to negotiate, make, execute and sign documents on behalf of the Fund, the Trustee and the Operating Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Investment Manager shall refrain from any action that, in its sole judgment made in good faith, (i) is not in compliance with the Investment Guidelines, (ii) would adversely and materially affect the qualification of the Fund as a REIT under the Code or the Fund's or the Operating Partnership's status as entities excluded from investment company status under the Investment Company Act of 1940, as amended, or (iii) would materially violate any law, rule or regulation of any governmental body or agency having jurisdiction over the Fund and the Operating Partnership or that would otherwise not be permitted by the Fund Documents. If the Investment Manager is ordered to take any action by the Trustee, the Investment Manager shall seek to notify the Trustee if it is the Investment Manager's reasonable judgment that such action would adversely and materially affect such status or violate any such law, rule or regulation or any Fund Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Duties of the Investment Manager</u>. Subject in each case to the Investment Guidelines, the Fund Documents, applicable law and the ultimate oversight of the Trustee, the Investment Manager shall perform (or cause to be performed through one or more of its Affiliates or third parties or any designated committee of the Investment Manager) such services and activities relating to the selection of Investments and rendering investment advice to the Fund and the Operating Partnership as may be appropriate or otherwise mutually agreed from time to time, which may include, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) serving as an advisor to the Fund and the Operating Partnership with respect to the establishment and periodic review of the Investment Guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) sourcing, evaluating and monitoring the Fund's and Operating Partnership's investment opportunities and executing the acquisition, management, financing and disposition of the Fund's and Operating Partnership's assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to prospective acquisitions, purchases, sales, exchanges or other dispositions of Investments, conducting negotiations on the Fund's and Operating Partnership's behalf with sellers, purchasers, and other counterparties and, if applicable, their respective agents, advisors and representatives, and determining the structure and terms of such transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) providing portfolio management and other related services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) advising with respect to decisions regarding any of the Fund's or the Operating Partnership's financings, hedging activities or borrowings undertaken by the Fund or the Operating Partnership, including (1) assisting in the development of criteria for debt and equity financing that is specifically tailored to the Fund's investment objectives, and (2) advising the Fund and the Operating Partnership with respect to obtaining appropriate financing for the Investments and (3) negotiating and entering into, on the Fund's and Operating Partnership's behalf, financing arrangements (including one or more credit facilities), repurchase agreements, interest rate or currency swap agreements, hedging arrangements, foreign exchange transactions, derivative transactions, and other agreements and instruments required or appropriate in connection with the Fund's and Operating Partnership's activities;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) engaging and supervising, on the Fund's and Operating Partnership's behalf and at the Fund's and Operating Partnership's expense, independent contractors, advisors, consultants, attorneys, accountants, administrators, auditors, appraisers, independent valuation agents, escrow agents and other service providers (which may include Affiliates of the Investment Manager) that provide various services with respect to the Fund and Operating Partnership, including, without limitation, on-site managers, building and maintenance personnel, investment banking, securities brokerage, mortgage brokerage, credit analysis, risk management services, asset management services, loan servicing, other financial, legal or accounting services, due diligence services, underwriting review services, and all other services (including custody and transfer agent and registrar services) as may be required relating to Investments (or potential Investments);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) coordinating and managing operations of any joint venture or co-investment interests held by the Fund or Operating Partnership and conducting matters with the joint venture or co-investment partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) purchasing, selling, investing, trading, holding, receiving, mortgaging, pledging, transferring, exchanging, or otherwise acquiring or disposing of or realizing upon securities, derivative instruments and investments of any and all kinds, to the extent consistent with the Investment Guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) taking all reasonable actions which the Investment Manager in good faith believes are appropriate to facilitate the ongoing operation of the Fund's and the Operating Partnership's assets in emergencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) granting options and exercising all rights, powers, privileges and other incidents of ownership or possession with respect to all assets or investments held or owned by the Fund and the Operating Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) holding all or any part of the assets or investments of the Fund and the Operating Partnership in cash or cash equivalents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) lending any of the Fund's and the Operating Partnership's assets or investments, including any securities, either with or without security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) opening, maintaining and closing accounts, including margin and discretionary accounts, with brokers and/or dealers, and paying commissions, fees and other charges applicable to transactions in all such accounts including to utilize brokerage accounts to obtain other services and benefits for the Fund and the Operating Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) reviewing and confirming the NAV per Share and overseeing the process around the calculation of the NAV per Share as performed by the Fund's administrator, and in connection therewith, among other things, obtaining appraisals performed by independent third party appraisal firms of the value of the Fund's real properties, all in accordance with the valuation guidelines set forth in the Memorandum; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) doing such other acts and providing such other services as the Trustee may reasonably request or that the Investment Manager may deem necessary or advisable under the particular circumstances or that are contemplated by the terms of the Fund Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Expenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Investment Manager shall bear all normal operating costs and expenses incurred in connection with the management of the Investment Manager, without any right to reimbursement from the Fund for such expenses. Such normal operating expenses to be borne by the Investment Manager shall include, without limitation, expenditures on account of salaries, wages, benefits and other expenses of employees of the Investment Manager, general overhead, utilities and rentals payable for space used by the Investment Manager, office supplies, expenses for clerical, bookkeeping services, office equipment expenses, and expenses for complying with the Investment Advisers Act of 1940, as amended (the "<u>Advisers Act</u>"), and shall exclude salaries, wages and other personnel costs allocable to employees of the Investment Manager providing legal, tax, accounting and administrative services to the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Investment Manager and its Affiliates advanced and paid on the Fund's behalf all O&O Expenses through the first anniversary of the Initial Closing. The Fund will reimburse the Investment Manager and its Affiliates for all of such advanced O&O Expenses in one or more payments following the first anniversary of the Initial Closing. Following the first anniversary of the Initial Closing, the Fund will reimburse the Investment Manager and its Affiliates for all O&O Expenses incurred on the Fund's behalf as and when such expenses are incurred. As used herein, "<u>Initial Closing</u>" shall mean the date upon which the Fund first accepted subscriptions for, and sells, Shares in the Private Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Pursuant to Article XV, Section 3 of the Declaration of Trust, the Fund will pay, directly or through reimbursement of the Investment Manager, the Trustee or their respective Affiliates, all costs and expenses relating to the activities, operations and investments of the Fund and the performance by the Investment Manager, the Trustee and their respective Affiliates of their respective obligations to the Fund (excluding any costs and expenses described in Section 5(a) above).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For the avoidance of doubt, the Investment Manager shall not be obligated to pay any expenses of or for the Fund not contemplated to be paid by the Investment Manager pursuant to Section 5(a). The Investment Manager is entitled to use "soft" or commission dollars generated by the Fund to pay certain expenses which would otherwise be payable by the Investment Manager. It is the intent of the Investment Manager with respect to such use of "soft" or commission dollars to stay within the parameters of Section 28(e) of the Securities Exchange Act of 1934, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Compensation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Management Fee*. As compensation for the services rendered and the expenses borne by the Investment Manager pursuant to this Agreement, the Fund shall pay the Investment Manager a management fee (the "<u>Management Fee</u>") equal to one percent (1.0%) of the NAV per annum, calculated monthly and payable quarterly in arrears. The Management Fee shall cease to be payable upon any termination of this Agreement; *provided, however*, that upon any such termination of this Agreement, the Fund shall promptly pay the Investment Manager any Management Fee on a pro-rated basis for such quarter though the effective date of such termination.

The Management Fee may be paid, at the Investment Manager's election, in either (i) cash, (ii) Shares with an aggregate value equivalent to the cash fee otherwise payable (based upon the then-current NAV per Share), or (iii) any combination of cash and Shares (with such Shares valued based upon the then-current NAV per Share). If the Investment Manager elects to receive any portion of its Management Fee in Shares, the Investment Manager may elect to have the Fund repurchase such Shares from the Investment Manager at a later date. Shares held by the Investment Manager will not be subject to any repurchase limits, minimum holding periods or reduction or penalty for an early repurchase otherwise applicable pursuant to the terms of the of the Funds' share repurchase plan (as such plan is set forth in the Fund Documents) (the "<u>Share Repurchase Plan</u>").

The Investment Manager may, in its sole discretion, elect to waive all or a portion of the Management Fee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Fund Incentive Fee.* The Fund will pay or cause its Subsidiaries to pay the Investment Manager an incentive fee (the "<u>Fund Incentive Fee</u>") promptly following the end of each calendar year (which shall accrue on a monthly basis) in an amount equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) First, if the Total Return for the applicable period exceeds the sum of (A) the Hurdle Amount for that period and (B) the Loss Carryforward Amount (any such excess, "<u>Excess Profits</u>"), 100% of such Excess Profits until the total amount payable to the Investment Manager equals 12.5% of the sum of (x) the Hurdle Amount for that period and (y) any amount allocated to the Investment Manager pursuant to this clause; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Second, to the extent there are remaining Excess Profits, 12.5% of such remaining Excess Profits.

Any amount by which Total Return falls below the Hurdle Amount and that does not constitute Loss Carryforward Amount will not be carried forward to subsequent periods.

With respect to all Shares that are repurchased at the end of any month in connection with repurchases of Shares pursuant to the Share Repurchase Plan, the Investment Manager shall be entitled to such Fund Incentive Fee in an amount calculated as described above with respect to the portion of the year for which such Shares were outstanding, and proceeds for any such Shares repurchased will be reduced by the amount of any such Fund Incentive Fee.

The measurement of the change in NAV per Share for the purpose of calculating the Total Return is subject to adjustment by the Investment Manager to account for any dividend, split, recapitalization or any other similar change in the Fund's capital structure or any distributions deemed to be a return of capital if such changes are not already reflected in the Fund's net assets.

The Investment Manager will not be obligated to return any portion of the Fund Incentive Fee paid due to the subsequent performance of the Fund.

The Fund Incentive Fee may be paid, at the Investment Manager's election, in (i) cash, (ii) Shares with an aggregate value equivalent to the cash fee otherwise payable (based upon the then-current NAV per Share), or (iii) any combination of cash and Shares (with such Shares valued based upon the then-current NAV per Share). If the Investment Manager elects to receive any portion of its Fund Incentive Fee in Shares, the Investment Manager may elect to have the Fund repurchase such Shares from the Investment Manager at a later date. Such Shares held by the Investment Manager will not be subject to any repurchase limits, minimum holding periods or reduction or penalty for an early repurchase otherwise applicable pursuant to the terms of the Share Repurchase Plan.

The Investment Manager may, in its sole discretion, elect to waive all or a portion of the Fund Incentive Fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *OP Incentive Fee*. The Fund will pay or cause its Subsidiaries to pay the Investment Manager an incentive fee (the "<u>OP Incentive Fee</u>" and, together with the Fund Incentive Fee, the "<u>Incentive Fee</u>") promptly following the end of each calendar year (which shall accrue on a monthly basis) in an amount equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) First, if the OP Total Return for the applicable period exceeds the sum of (A) the OP Hurdle Amount for that period and (B) the OP Loss Carryforward Amount (any such excess, "<u>OP Excess Profits</u>"), 100% of such OP Excess Profits until the total amount allocated to the Investment Manager equals 12.5% of the sum of (x) the OP Hurdle Amount for that period and (y) any amount allocated to the Investment Manager pursuant to this clause; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Second, to the extent there are remaining OP Excess Profits, 12.5% of such remaining OP Excess Profits.

Any amount by which OP Total Return falls below the OP Hurdle Amount and that does not constitute OP Loss Carryforward Amount will not be carried forward to subsequent periods.

With respect to all OP Incentive Units that are repurchased pursuant to the Operating Partnership Agreement, the Investment Manager shall be entitled to such OP Incentive Fee in an amount calculated as described above with respect to the portion of the year for which such OP Incentive Units were outstanding, and proceeds for any such OP Incentive Units repurchased will be reduced by the amount of any such OP Incentive Fee.

The measurement of the change in OP NAV per OP Incentive Unit for the purpose of calculating the OP Total Return is subject to adjustment by the Investment Manager to account for any dividend, split, recapitalization or any other similar change in the Operating Partnership's capital structure or any distributions deemed to be a return of capital if such changes are not already reflected in the Operating Partnership's net assets.

The Investment Manager will not be obligated to return any portion of the OP Incentive Fee paid due to the subsequent performance of the Operating Partnership.

The OP Incentive Fee may be paid, at the Investment Manager's election, in (i) cash, (ii) OP Units with an aggregate value equivalent to the cash fee otherwise payable (based upon the then-current OP NAV), or (iii) any combination of cash and OP Units (with such units valued based upon the then-current OP NAV). If the Investment Manager elects to receive any portion of the OP Incentive Fee in OP Units, the Investment Manager may elect at a later date to have the Operating Partnership repurchase such OP Units for cash unless the Trustee determines that any such repurchase for cash would be prohibited by applicable law or the Fund Documents, in which case such OP Units will be repurchased for Shares with an equivalent aggregate NAV.

The Investment Manager may, in its sole discretion, elect to waive all or a portion of the OP Incentive Fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Incentive Fee shall cease to be payable upon any termination of this Agreement; *provided, however*, that the Investment Manager will be entitled to receive its prorated Incentive Fee through the date of such termination. Such pro rata Incentive Fee will be determined in the same manner as described in Sections 6(b) and 6(c) above but only for the portion of the year through the date of such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Offset Fees*. Subject to this Section 6(e), each installment of the Management Fees otherwise payable pursuant to Section 6(a) shall be reduced (but not below zero) by an amount (the "<u>Offset Amount</u>") equal to one hundred percent (100%) of any Offset Fees received by the Trustee, the Investment Manager, any of their respective Affiliates or any of their respective members, partners, shareholders, directors, principals and employees during the preceding fiscal quarter. If any such Offset Amounts exceeds the amount of the Management Fees then payable, then the amount of the excess shall be carried forward and shall reduce future installments of the Management Fees in accordance with this Section; provided that upon dissolution of the Fund, any Offset Amount that has not been applied to offset shall be distributed by the Fund to the Shareholders. As used herein, "<u>Offset Fees</u>" shall mean any

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loan origination fees, collateral agent fees, directors fees, consulting fees, advisory fees, management fees, transaction fees, work fees, monitoring fees, closing fees, break-up fees, commitment fees, extension fees, exit fees or any other similar fees or remuneration of any kind or nature, whether in cash or in-kind, received from third parties in connection with an Investment or potential Investment; *provided, however*, that Offset Fees shall not include (i) any Permitted Affiliate Fees and (ii) any management or similar fees received by an affiliate of the Investment Manager in connection with the Fund's investments in money market funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Permitted Affiliate Fees*. The Fund may compensate certain of the Investment Manager's or Trustee's Affiliates from time to time for services relating to the Fund's investments or operations, which may include property management services, property accounting services and leasing services and fund administration services (collectively, "<u>Permitted Affiliate Fees</u>"). Any such Permitted Affiliate Fees will be paid (or reimbursed) by the Fund and will not reduce the Management Fees otherwise payable to the Investment Manager. The Investment Manager will seek to ensure that any such Permitted Affiliate Fees will be at or below market rates, and any Permitted Affiliate Fees paid with respect to property management services will be at rates usual and customary for comparable property management services rendered to similar properties in the geographic market of the property, as determined by the Investment Manager in its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Representations, Warranties, Covenants and Agreements of the Investment Manager</u>. The Investment Manager hereby represents, warrants, covenants and agrees to and with the Fund and the Operating Partnership as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It is a limited liability company duly organized and validly existing under the laws of the State of Delaware and is qualified to do business and is in good standing in each other jurisdiction in which the nature or conduct of its business requires such qualification and in which the failure to so qualify would materially adversely affect its ability to conduct its business activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It has full power and authority to perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investment Manager and is a valid and binding agreement of the Investment Manager enforceable against the Investment Manager in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) None of the execution and delivery of this Agreement, the incurring of the obligations set forth in this Agreement or the performance of such obligations will violate, or constitute a breach of or default under, the governing instruments of the Investment Manager or any agreement or instrument by which it is bound or any order or, to the best of the Investment Manager's knowledge, rule, law or regulation applicable to the Investment Manager of any court or any governmental body or administrative agency or self-regulatory authority having jurisdiction over the Investment Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) There is no action, suit or proceeding before or by any court or other governmental or self-regulatory authority to which the Investment Manager is a party that will result in any material adverse change in its ability to perform the services set out in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) It shall promptly notify the Fund and the Operating Partnership of any material changes in any of the foregoing representations and warranties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Representations, Warranties, Covenants and Agreements of the Fund and the Operating Partnership</u>. The Fund and the Operating Partnership hereby represent, warrant, covenant and agree to and with the Investment Manager as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Fund is a statutory trust duly organized and validly existing under the laws of the State of Maryland and is qualified to do business and is in good standing in each other jurisdiction in which the nature or conduct of its business requires such qualification and in which the failure to so qualify would materially adversely affect its ability to conduct its business activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Operating Partnership is a limited partnership duly organized and validly existing under the laws of the State of Delaware and is qualified to do business and is in good standing in each other jurisdiction in which the nature or conduct of its business requires such qualification and in which the failure to so qualify would materially adversely affect its ability to conduct its business activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Fund and the Operating Partnership have full power and authority to perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This Agreement has been duly and validly authorized, executed and delivered on behalf of the Fund and the Operating Partnership and is a valid and binding agreement of the Fund and the Operating Partnership enforceable against the Fund and the Operating Partnership in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) None of the execution and delivery of this Agreement, the incurring of the obligations set forth in this Agreement or the performance of such obligations will violate, or constitute a breach of or default under, the governing instruments of the Fund, the Operating Partnership or any agreement or instrument by which the Fund or the Operating Partnership is bound or any order or, to the best of the Fund's and the Operating Partnership's knowledge, rule, law or regulation applicable to the Fund or the Operating Partnership of any court or any governmental body or administrative agency or self-regulatory authority having jurisdiction over the Fund or the Operating Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) There is no action, suit or proceeding before or by any court or other governmental or self-regulatory authority to which either the Fund or the Operating Partnership is a party that will result in any material adverse change in the Fund's or the Operating Partnership's ability to perform services set out in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Fund and the Operating Partnership shall promptly notify the Investment Manager of any material changes in any of the foregoing representations and warranties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Other Interests and Activities</u>. The Fund and the Operating Partnership acknowledge and agree that the Investment Manager and its employees and Affiliates render, and in the future will render, investment advice and other services to entities other than the Fund and the Operating Partnership. The Fund and the Operating Partnership further acknowledge and agree that the Investment Manager and its employees and Affiliates may have conflicts of interests in allocating time and other resources among the Fund and the Operating Partnership and other projects and clients of the Investment Manager or such Affiliates, and that the Investment Manager is not obligated to refer all suitable investment opportunities to the Fund and the Operating Partnership. The engagement of the Investment Manager pursuant to this Agreement shall not be exclusive and, except as provided in the Fund Documents, the Investment Manager and its employees and Affiliates shall be free to render investment advice and other services to entities other than the Fund and the Operating Partnership and to engage independently or with others in other business ventures of every nature and description, including the ownership, management, financing, refinancing or sale of debt or equity securities of any companies. Neither the Fund nor the Operating Partnership thereof shall have any right or interest in any such ventures or any income or profits from any such services and/or ventures. Nothing in this Agreement shall restrict the ability of the Investment Manager and its employees and Affiliates from making investments or receiving fees or other compensation for services, including those that may be adverse to the interests of the Fund and the Operating Partnership.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Exculpation and Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the fullest extent permitted by applicable law, no Indemnified Person (as defined below) shall be liable, in damages or otherwise, to the Fund, the Trustee, the Operating Partnership, any Shareholder or any of their Affiliates for any act or omission performed or omitted by any of them (including, without limitation, any act or omission performed or omitted by any of them in reasonable reliance upon and in accordance with the opinion or advice of experts, including, without limitation, of legal counsel as to matters of law, of accountants as to matters of accounting, or of investment bankers or appraisers as to matters of valuation), except with respect to any Indemnified Person, any act or omission: (A) with respect to which a court of competent jurisdiction (or other similar tribunal) has issued a final, non-appealable decision, judgment or order that such Indemnified Person was grossly negligent, or engaged in willful misconduct or fraud; (B) by such Indemnified Person that constitutes a willful and material breach of this Agreement (and such breach, if curable, was not cured within thirty (30) days after receipt of notice of such breach from the Trustee or thirty (30) days after such Indemnified Person becomes aware of such breach) and such breach of this Agreement has or is reasonably likely to have a material adverse effect on the Fund or the Operating Partnership; or (C) with respect to which a court of competent jurisdiction (or other similar tribunal) has issued a final, non-appealable decision, judgment or order that such Indemnified Person materially violated applicable U.S. federal securities laws and such violation has or is reasonably likely to have a material adverse effect on the Fund or the Operating Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the fullest extent permitted by applicable law, the Fund and the Operating Partnership shall and do hereby agree to jointly and severally indemnify and hold harmless and pay all judgments and claims against the Investment Manager and any of its respective Affiliates, officers, directors, members, managers, partners, shareholders, employees, consultants or agents (each, an "<u>Indemnified Person</u>") from and against any loss or damage incurred by them, for any act or omission or any alleged act or omission taken or suffered by each Indemnified Person (including, without limitation, any act or omission performed or omitted by any Indemnified Person in reasonable reliance upon, and in accordance with, the opinion or advice of experts, including, without limitation, of legal counsel as to matters of law, of accountants as to matters of accounting, or of investment bankers or appraisers as to matters of valuation) in connection with the Fund, the Operating Partnership, or the Investments (including, without limitation, acting as a director, officer, manager or member of an issuer of an Investment), including costs and reasonable attorneys' fees and any amount expended in the settlement of, or defense of, any actual or threatened claim, proceeding or action, except with respect to any Indemnified Person, any act or omission: (A) with respect to which a court of competent jurisdiction (or other similar tribunal) has issued a final, non-appealable decision, judgment or order or upon entering a plea of nolo contendere or its equivalent, as the case may be, that such Indemnified Person was grossly negligent, or engaged in willful misconduct or fraud; (B) by such Indemnified Person that constitutes a willful and material breach of this Agreement (and such breach, if curable, was not cured within thirty (30) days after receipt of notice of such breach from the Trustee or thirty (30) days after such Indemnified Person becomes aware of such breach) and such breach of this Agreement has or is reasonably likely to have a material adverse effect on the Fund or the Operating Partnership; or (C) with respect to which a court of competent jurisdiction (or other similar tribunal) has issued a final, non-appealable decision, judgment or order that such Indemnified Person materially violated applicable U.S. federal or state securities laws and such violation has or is reasonably likely to have a material adverse effect on the Fund or the Operating Partnership.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Expenses reasonably incurred by an Indemnified Person in defense or settlement of any claim, action or proceeding that may be subject to a right of indemnification hereunder (including, without limitation, attorneys' fees and other costs and expenses) shall be advanced by the Fund promptly (subject to the terms of the Declaration of Trust) upon receipt of an undertaking by, or on behalf, of such Indemnified Person to repay such amount to the extent that it shall be determined upon final, non-appealable decision, judgment or order that such Indemnified Person is not entitled to be indemnified hereunder. No advances shall be made by the Fund without the prior written approval of the Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding the foregoing, the Fund shall not indemnify an Indemnified Person in connection with a proceeding initiated by such Indemnified Person with respect to another Indemnified Person or a proceeding initiated by another Indemnified Person with respect to such Indemnified Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If an Indemnified Person is entitled to indemnification from another source or is entitled to recovery by insurance policies, such Indemnified Person shall diligently pursue such other source, <u>provided</u> that: (1) such obligation shall not in any manner limit such Indemnified Person's right to seek indemnification or advances under this Agreement; and (2) such Indemnified Person shall remit to the Fund any funds it recovers from any such other source to the extent it has been fully indemnified by the Fund for all losses it incurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The provisions in this Section 10 shall survive the termination of the Fund or the Operating Partnership and this Agreement and each Indemnified Person shall be a third-party beneficiary of this Agreement for purposes of this Section 10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding any of the foregoing to the contrary, the provisions of this Section 10 shall not be construed so as to provide for the exculpation and indemnification of any Indemnified Persons for any liability (including liability under ERISA and U.S. federal securities laws which, under certain circumstances, impose liability even on persons that act in good faith), to the extent (but only to the extent) that such liability may not be waived, modified or limited under applicable law, but shall be construed so as to effectuate the provisions of this Section 10 to the fullest extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Notwithstanding the foregoing, the Parties acknowledge that the Investment Manager is an "Indemnified Person" for purposes of the Declaration of Trust and is entitled to certain rights and benefits, subject to certain limitations, under Article X, Section 3 of the Declaration of Trust and that the Investment Manager and each other Indemnified Person are intended third-party beneficiaries of the obligations of the Fund under Article X, Section 3 of the Declaration of Trust and are entitled to seek enforcement of those obligations directly against the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Reports</u>. Upon the Trustee's request, the Investment Manager shall prepare, cause to be prepared or assist in the preparation of, any reports required to be delivered by the Fund pursuant to Article XVI of the Declaration of Trust. The Fund shall furnish the Investment Manager with a copy of all financial statements of the Fund, a copy of each report concerning the financial statements prepared by the Fund's independent certified public accountants, and such other information with regard to the Fund's affairs as the Investment Manager may from time to time reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Term; Termination</u>. This Agreement shall become effective upon the effective date set forth in the preamble hereto, and shall remain in effect until the Fund is terminated; <u>provided</u>, <u>however</u>, that either the Fund or the Investment Manager may terminate the Agreement at any time upon not less than seventy-five (75) days' prior written notice to the other party. Notwithstanding the foregoing, this Agreement shall automatically terminate in the event that the Trustee or one of its Affiliates ceases to be the trustee of the Fund.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Amendments; Waivers</u>. The provisions of this Agreement may be altered or amended, and any provisions hereof may be waived, only upon the prior written approval of the Fund, the Operating Partnership and the Investment Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Notices</u>. Any notice, demand or other communication that any Party hereto may be required, or may elect, to give to anyone interested hereunder shall be deemed given if in writing and delivered personally or sent by email, overnight courier, or registered or certified mail, postage prepaid to the business address of the Fund, the Operating Partnership or Investment Manager, as the case may be, and will be deemed given when received at the addresses specified below or at such other address as a Party to receive notice may specify in a notice given in accordance with this provision. The Fund and the Operating Partnership each acknowledge its consent to electronic delivery, including via email or facsimile, of any documents or materials required and/or provided by the Investment Manager related to services provided by the Investment Manager under this Agreement. The Fund or the Operating Partnership may revoke this consent and request any such documents or materials to be mailed, in lieu of electronic delivery, at any time upon reasonable notice to the Investment Manager.

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| | |
|:---|:---|
| If to the Fund | Fidelity Core Real Estate Fund |
| or the Operating | 900 Salem Street |
| Partnership: | Smithfield, RI 02197 |
|  | Attention: Ellen Hall |
|  | Email: alternatives@fmr.com |
| If to the Investment | Fidelity Diversifying Solutions LLC |
| Manager: | 900 Salem Street |
|  | Smithfield, RI 02197 |
|  | Attention: Christopher Rimmer |
|  | Email: chris.rimmer@fmr.com |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Successors and Assigns</u>. This Agreement shall be binding upon and shall inure to the benefit of the Parties hereto and their respective heirs, successors and assigns. The Investment Manager shall be entitled to assign or transfer its rights and obligations under this Agreement to an Affiliate of the Investment Manager without the prior consent of the Fund, the Shareholders, the Operating Partnership or any partners of the Operating Partnership. The Investment Manager may not assign or transfer its rights or obligations under this Agreement to a transferee that is not an Affiliate of the Investment Manager without the prior consent of the Trustee. Any attempted assignment or transfer that is not in compliance with this Section 15 shall be null, void and without effect. Any such assignment of this Agreement by the Investment Manager must comply with the Investment Advisers Act in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Headings</u>. The headings in this Agreement are inserted for convenience of reference only and shall not be a part of or control or affect the meaning hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Entire Agreement</u>. This Agreement supersedes any and all oral or written agreements heretofore made relating to the subject matter hereof, including the Prior Agreement, and constitutes the entire agreement of the Parties relating to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Governing Law</u>. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to any conflict or choice of law provisions that would make applicable the domestic substantive law of any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Form ADV Delivery</u>. The Fund and the Operating Partnership each acknowledge receipt of Part 2A and Part 2B of the Investment Manager's Form ADV prior to entering into this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Survival</u>. The provisions of Sections 6 (solely with respect to any Management Fees or Incentive Fees due and payable as of the termination date in accordance with the terms thereof), 10, 14, 18, and 21 hereof shall survive the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Severability; Waiver.</u> If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect. No failure or delay on the part of any Party hereto in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercising of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy. Any waiver granted hereunder must be in writing and shall be valid only in the specific instance in which given.

*[Remainder of Page Intentionally Left Blank]*

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IN WITNESS WHEREOF, each of the undersigned has caused this Agreement to be duly executed and delivered as an agreement under seal as of the date first above written.

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| | | |
|:---|:---|:---|
| **FUND:** | **FIDELITY CORE REAL ESTATE FUND** | **FIDELITY CORE REAL ESTATE FUND** |
|  | By: Fidelity CRET Trustee LLC, its sole Trustee | By: Fidelity CRET Trustee LLC, its sole Trustee |
|  | By: | /s/ Karen Korn |
|  |  | Name: Karen Korn |
|  |  | Title: Vice President |

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| | | |
|:---|:---|:---|
| **OPERATING PARTNERSHIP:** | **FIDELITY CORE REAL ESTATE OPERATING PARTNERSHIP LP** | **FIDELITY CORE REAL ESTATE OPERATING PARTNERSHIP LP** |
|  | By: Fidelity Core Real Estate Fund, its General Partner | By: Fidelity Core Real Estate Fund, its General Partner |
|  | By: Fidelity CRET Trustee LLC, its sole Trustee | By: Fidelity CRET Trustee LLC, its sole Trustee |
|  | By: | /s/ Karen Korn |
|  |  | Name: Karen Korn |
|  |  | Title: Vice President |

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| | | |
|:---|:---|:---|
| **INVESTMENT MANAGER:** | **FIDELITY DIVERSIFYING SOLUTIONS LLC** | **FIDELITY DIVERSIFYING SOLUTIONS LLC** |
|  | By: | /s/ Christopher Rimmer |
|  |  | Name: Christopher Rimmer |
|  |  | Title: Treasurer |

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*[Signature Page to Second Amended and Restated Investment Management Agreement]*

## Exhibit 10.2

**EXHIBIT 10.2** 

**SECOND AMENDED AND RESTATED** 

**LIMITED PARTNERSHIP AGREEMENT** 

**OF** 

**FIDELITY CORE REAL ESTATE OPERATING PARTNERSHIP LP** 

**A DELAWARE LIMITED PARTNERSHIP** 

**EFFECTIVE AS OF JANUARY 1, 2025** 

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**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
|  |  | **Page** |
| ARTICLE 1 DEFINED TERMS | ARTICLE 1 DEFINED TERMS | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.  | Definitions | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2.  | Interpretation | 9 |
| ARTICLE 2 PARTNERSHIP FORMATION AND IDENTIFICATION; GENERAL PROVISIONS | ARTICLE 2 PARTNERSHIP FORMATION AND IDENTIFICATION; GENERAL PROVISIONS | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.  | Formation | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.  | Name, Office and Registered Agent | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.  | Partners | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.  | Term and Dissolution | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.  | Filing of Certificate and Perfection of Limited Partnership | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6.  | Certificates Representing Partnership Units | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7.  | Warehoused Investments | 11 |
| ARTICLE 3 BUSINESS OF THE PARTNERSHIP | ARTICLE 3 BUSINESS OF THE PARTNERSHIP | 12 |
| ARTICLE 4 CAPITAL CONTRIBUTIONS AND ACCOUNTS | ARTICLE 4 CAPITAL CONTRIBUTIONS AND ACCOUNTS | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.  | Capital Contributions | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.  | Additional Capital Contributions and Issuances of Additional Partnership Interests | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.  | Additional Funding | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.  | Capital Accounts | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5.  | Percentage Interests | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.  | No Interest on Contributions | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.  | Return of Capital Contributions | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8.  | No Third Party Beneficiary | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9.  | No Preemptive Rights | 17 |
| ARTICLE 5 PROFITS AND LOSSES; DISTRIBUTIONS | ARTICLE 5 PROFITS AND LOSSES; DISTRIBUTIONS | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.  | Allocation of Profit and Loss | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.  | Distribution of Cash | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.  | REIT Distribution Requirements | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.  | No Right to Distributions in Kind | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5.  | Limitations on Return of Capital Contributions | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6.  | Distributions Upon Liquidation | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7.  | Partners' Interest in the Partnership | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8.  | Distribution Reinvestment | 24 |
| ARTICLE 6 RIGHTS, OBLIGATIONS AND POWERS OF THE GENERAL PARTNER | ARTICLE 6 RIGHTS, OBLIGATIONS AND POWERS OF THE GENERAL PARTNER | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.  | Management of the Partnership | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.  | Delegation of Authority | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.  | Indemnification and Exculpation of Indemnitees | 28 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.  | Liability and Obligations of the General Partner | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5.  | Reimbursement of General Partner | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6.  | Outside Activities | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7.  | Transactions With Affiliates | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8.  | Title to Partnership Assets | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9.  | Repurchases of REIT Shares | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10. | No Duplication of Fees or Expenses | 33 |
| ARTICLE 7 CHANGES IN GENERAL PARTNER | ARTICLE 7 CHANGES IN GENERAL PARTNER | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.  | Transfer of the General Partner's Partnership Interest | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.  | Admission of a Substitute or Additional General Partner | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3.  | Effect of Bankruptcy, Withdrawal, Death or Dissolution of the sole remaining General Partner | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4.  | Removal of a General Partner | 36 |
| ARTICLE 8 RIGHTS AND OBLIGATIONS OF THE LIMITED PARTNERS | ARTICLE 8 RIGHTS AND OBLIGATIONS OF THE LIMITED PARTNERS | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.  | Management of the Partnership | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.  | Power of Attorney | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3.  | Limitation on Liability of Limited Partners | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4.  | Ownership by Limited Partner of Corporate General Partner or Affiliate | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5.  | Redemption Right | 37 |
| ARTICLE 9 TRANSFERS OF LIMITED PARTNERSHIP INTERESTS | ARTICLE 9 TRANSFERS OF LIMITED PARTNERSHIP INTERESTS | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1.  | Purchase for Investment | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2.  | Restrictions on Transfer of Limited Partnership Interests | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.  | Admission of Substitute Limited Partner | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4.  | Rights of Assignees of Partnership Interests | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5.  | Effect of Bankruptcy, Death, Incompetence or Termination of a Limited Partner | 44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6.  | Joint Ownership of Interests | 44 |
| ARTICLE 10 BOOKS AND RECORDS; ACCOUNTING; TAX MATTERS | ARTICLE 10 BOOKS AND RECORDS; ACCOUNTING; TAX MATTERS | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. | Books and Records | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. | Custody of Partnership Funds; Bank Accounts | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3. | Fiscal and Taxable Year | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4. | Annual Tax Information and Report | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5. | Partnership Representative; Tax Elections; Special Basis Adjustments | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6. | Reports to Limited Partners | 47 |
| ARTICLE 11 AMENDMENT OF AGREEMENT; MERGER | ARTICLE 11 AMENDMENT OF AGREEMENT; MERGER | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. | Partner Consent Requirements | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. | Amendments; No Limited Partner Consent Required | 48 |
| ARTICLE 12 GENERAL PROVISIONS | ARTICLE 12 GENERAL PROVISIONS | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. | Notices | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2. | Survival of Rights | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3. | Additional Documents | 49 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4. | Severability | 49.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5. | Side Letters; Entire Agreement | 49.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6. | Pronouns and Plurals | 50.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7. | Headings | 50.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.8. | Counterparts | 50.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.9. | Governing Law | 50.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.10. | No Rights as Shareholders | 50.0 |

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**<u>EXHIBITS</u>**

EXHIBIT A – Notice of Exercise of Redemption Right

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**SECOND AMENDED AND RESTATED** 

**LIMITED PARTNERSHIP AGREEMENT** 

**OF** 

**FIDELITY CORE REAL ESTATE OPERATING PARTNERSHIP LP** 

This Second Amended and Restated Limited Partnership Agreement (this "Agreement") of Fidelity Core Real Estate Operating Partnership LP (the "Partnership") is entered into as of December 19, 2024, and effective as of January 1, 2025, between Fidelity Core Real Estate Fund, a Maryland statutory trust, as general partner (the "General Partner") and the Limited Partners party hereto from time to time.

**RECITALS:** 

WHEREAS, the Partnership was formed on February 8, 2022, as a limited partnership under the laws of the State of Delaware when a Certificate of Limited Partnership was filed with the Secretary of State of the State of Delaware;

WHEREAS, the General Partner and the other parties thereto entered into a Limited Partnership Agreement, dated June 2, 2022, as amended and restated pursuant to the Amended and Restated Limited Partnership Agreement, dated December 1, 2022 (as amended and restated, the "Prior Partnership Agreement"); and

WHEREAS, the parties hereto desire to amend and restate the Prior Partnership Agreement pursuant to the terms of this Agreement.

NOW, THEREFORE, in consideration of the foregoing, of mutual covenants between the parties hereto, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

**ARTICLE 1** 

**<u>DEFINED TERMS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1.** <u>**Definitions**.</u> The following defined terms used in this Agreement shall have the meanings specified below:

"<u>Act</u>" means the Delaware Revised Uniform Limited Partnership Act, as it may be amended from time to time, or any successor statute thereto.

"<u>Additional Funds</u>" has the meaning set forth in Section 4.3.

"<u>Additional Securities</u>" means any additional REIT Shares (other than REIT Shares issued in connection with a redemption pursuant to Section 8.5) or rights, options, warrants or convertible or exchangeable securities containing the right to subscribe for or purchase REIT Shares, as set forth in Section 4.2(a)(iii).

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"<u>Administrative Expenses</u>" means (i) all administrative and operating costs and expenses incurred by the Partnership and its subsidiaries, (ii) those administrative costs and expenses of the General Partner, including any salaries or other payments to trustees, directors, officers or employees of the General Partner, and any accounting and legal expenses of the General Partner, which expenses are expenses of the Partnership and not the General Partner, and (iii) to the extent not included in clause (ii) above, REIT Expenses; <u>provided</u>, <u>however</u>, that Administrative Expenses shall not include any administrative costs and expenses incurred by the General Partner that are attributable to assets that are not owned directly or indirectly by the Partnership.

"<u>Advisers Act</u>" means the Investment Advisers Act of 1940, as amended.

"<u>Affiliate</u>" means, with respect to any Person, (i) any Person directly or indirectly owning, controlling or holding with the power to vote 10% or more of the outstanding voting securities of such other Person; (ii) any Person 10% or more of whose outstanding voting securities are directly or indirectly owned, controlled or held, with the power to vote, by such other Person; (iii) any Person directly or indirectly controlling, controlled by or under common control with such other Person, including any partnership in which such Person is a general partner; (iv) any executive officer, director, trustee or general partner of such other Person; and (v) any legal entity for which such Person acts an executive officer, director, trustee or general partner.

"<u>Aggregate Share Ownership Limit</u>" has the meaning set forth in the Declaration of Trust.

"<u>Agreed Value</u>" means the fair market value of a Partner's non-cash Capital Contribution as of the date of contribution as agreed to by such Partner and the General Partner, reduced by any liabilities either assumed by the Partnership upon such contribution or to which such Property is subject when contributed, as determined under Section 752(c) of the Code and the Regulations thereunder. The Agreed Value of any non-cash Capital Contributions by a Partner as of the date of contribution are set forth on the Partnership's books and records.

"<u>Agreement</u>" means this Amended and Restated Limited Partnership Agreement, as amended, modified supplemented or restated from time to time, as the context requires.

"<u>Applicable Percentage</u>" has the meaning provided in Section 8.5(b).

"<u>Bankruptcy Code</u>" shall mean 11 U.S.C. §§ 101-1330, as amended from time to time.

"<u>Capital Account</u>" has the meaning provided in Section 4.4.

"<u>Capital Contribution</u>" means the total amount of cash, cash equivalents, and the Agreed Value of any Property or other asset (other than cash or cash equivalents) contributed or deemed to be contributed, as the context requires, to the Partnership by each Partner pursuant to the terms of this Agreement. Any reference to the Capital Contribution of a Partner shall include the Capital Contribution made by a predecessor holder of the Partnership Interest of such Partner.

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"<u>Carrying Value</u>" means, with respect to any asset of the Partnership, the asset's adjusted basis for federal income tax purposes or, in the case of any asset contributed to the Partnership, the fair market value of such asset at the time of contribution, reduced by any amounts attributable to the inclusion of liabilities in basis pursuant to Section 752 of the Code, except that the Carrying Values of all assets may, at the discretion of the General Partner, be adjusted to equal their respective fair market values (as determined by the General Partner), in accordance with the rules set forth in Regulations Section 1.704-1(b)(2)(iv)(f), as provided for in Section 4.4. In the case of any asset of the Partnership that has a Carrying Value that differs from its adjusted tax basis, the Carrying Value shall be adjusted by the amount of depreciation, depletion and amortization calculated for purposes of the definition of Profit and Loss rather than the amount of depreciation, depletion and amortization determined for federal income tax purposes.

"<u>Cash Amount</u>" means an amount of cash per Partnership Unit equal to the applicable Redemption Price per Partnership Unit determined by the General Partner.

"<u>Certificate</u>" means any instrument or document that is required under the laws of the State of Delaware, or any other jurisdiction in which the Partnership conducts business, to be signed and sworn to by any of the Partners of the Partnership (either by themselves or pursuant to the power-of-attorney granted to the General Partner in Section 8.2) and filed for recording in the appropriate public offices within the State of Delaware or such other jurisdiction to perfect or maintain the Partnership as a limited partnership, to effect the admission, withdrawal, or substitution of any Partner of the Partnership, or to protect the limited liability of the Limited Partners as limited partners under the laws of the State of Delaware or such other jurisdiction and shall include, but not be limited to, the Certificate of Limited Partnership.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended, and as hereafter amended from time to time. Reference to any particular provision of the Code shall mean that provision in the Code at the date hereof and any successor provision of the Code.

"<u>Commission</u>" means the U.S. Securities and Exchange Commission.

"<u>Common Share Ownership Limit</u>" has the meaning set forth in the Declaration of Trust.

"<u>Declaration of Trust</u>" means the Amended and Restated Declaration of Trust of Fidelity Core Real Estate Fund, as it may be amended or restated.

"<u>Distributable Cash</u>" shall mean, as of any date and with respect to any period, the excess of (a) the cash and cash equivalents held by the Partnership, but excluding, for the avoidance of doubt, Capital Contributions over (b) the sum of the amount of such items as the General Partner reasonably determines to be necessary for the payment by the Partnership of the Administrative Expenses, liabilities and other obligations (whether fixed or contingent), and for the establishment of appropriate reserves for such expenses, liabilities and obligations as may arise, including the maintenance of adequate working capital for the continued conduct of the Partnership's investment activities and operations.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended.

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"<u>Event of Bankruptcy</u>" as to any Person means the filing of a petition for relief as to such Person as debtor or bankrupt under the Bankruptcy Code or similar provision of law of any jurisdiction (except if such petition is contested by such Person and has been dismissed within 90 days); insolvency or bankruptcy of such Person as finally determined by a court proceeding; filing by such Person of a petition or application to accomplish the same or for the appointment of a receiver or a trustee for such Person or a substantial part of his assets; commencement of any proceedings relating to such Person as a debtor under any other reorganization, arrangement, insolvency, adjustment of debt or liquidation law of any jurisdiction, whether now in existence or hereinafter in effect, either by such Person or by another, provided that if such proceeding is commenced by another, such Person indicates his approval of such proceeding, consents thereto or acquiesces therein, or such proceeding is contested by such Person and has not been finally dismissed within 90 days.

"<u>Excepted Holder Limit</u>" has the meaning set forth in the Declaration of Trust.

"<u>Final Adjustment</u>" has the meaning set forth in Section 10.5(c)(ii).

"<u>GAAP</u>" means U.S. generally accepted accounting principles.

"<u>General Partner</u>" means Fidelity Core Real Estate Fund, a Maryland statutory trust, and any Person who becomes a substitute or additional General Partner as provided herein, and any of their successors as General Partner, in such Person's capacity as a General Partner of the Partnership.

"<u>General Partnership Interest</u>" means any Partnership Interest held by the General Partner, other than any Partnership Interest it holds as a Limited Partner.

"<u>Indemnitee</u>" means (i) any Person made a party to a proceeding by reason of its status as the General Partner or a trustee, director, officer or employee of the General Partner or the Partnership (including, without limitation, the Partnership Representative and any "designated individual," within the meaning of the Regulations promulgated pursuant to Section 6623 of the Code), (ii) the Investment Manager, (iii) Fidelity CRET LP, and (iv) such other Persons (including Affiliates of the General Partner or the Partnership) as the General Partner may designate from time to time, in its sole and absolute discretion.

"<u>Investment Company Act</u>" means the Investment Company Act of 1940, as amended.

"<u>Investment Manager</u>" shall mean Fidelity Diversifying Solutions LLC, a Delaware limited liability company, or any successor named thereto.<u> </u>

"<u>Investment Management Agreement</u>" means the agreement between the General Partner, the Partnership and the Investment Manager pursuant to which the Investment Manager will direct or perform the day-to-day business affairs of the General Partner and the Partnership.

"<u>Joint Venture</u>" means any joint venture or partnership arrangement (other than the Partnership) in which the Partnership or any of its Subsidiaries is a co-venturer or partner established to acquire or hold assets of the Partnership.

"<u>Limited Partner</u>" means the General Partner in its capacity as a Limited Partner, and any other Person identified as a Limited Partner on the Partnership's books and records upon the execution and delivery by such Person of an additional limited partner signature page, and any Person who becomes a Substitute Limited Partner, in such Person's capacity as a Limited Partner in the Partnership.

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"<u>Limited Partnership Interest</u>" means the ownership interest of a Limited Partner in the Partnership at any particular time, including the right of such Limited Partner to any and all benefits to which such Limited Partner may be entitled as provided in this Agreement and in the Act, together with the obligations of such Limited Partner to comply with all the provisions of this Agreement and of such Act. A Limited Partnership Interest may be expressed as a number of Partnership Units.

"<u>Loss</u>" has the meaning provided in Section 5.1(e).

"<u>Memorandum</u>" shall mean the General Partner's confidential private placement memorandum with respect to the offer and sale of REIT Shares in the Private Placement, as it may be supplemented, amended or restated from time to time.

"<u>Net Asset Value</u>" means (i) for any Partnership Units, the net asset value of such Partnership Units, determined as of the last business day of each month as described in the Memorandum and (ii) for any REIT Shares, the net asset value of such REIT Shares, determined as of the last business day of each month as described in the Memorandum; *provided, however*, that until such time as the General Partner and the Partnership have begun periodically determining a net asset value, the Net Asset Value per REIT Share or per Partnership Unit shall be equal to $10.00.

"<u>Net Asset Value Per Unit</u>" means, for Partnership Units, the Net Asset Value per Partnership Unit.

"<u>Net Asset Value Per REIT Share</u>" means, for REIT Shares, the Net Asset Value per REIT Share.

"<u>Notice of Redemption</u>" means the Notice of Exercise of Redemption Right substantially in the form attached as <u>Exhibit A</u>.

"<u>Offer</u>" has the meaning set forth in Section 7.1(b)(ii).

"<u>Public Offering</u>" means an offer and sale of REIT Shares to the public.

"<u>Partner</u>" means any General Partner or Limited Partner.

"<u>Partner Nonrecourse Debt Minimum Gain</u>" means an amount with respect to each Partner's nonrecourse debt (as defined in Regulations Section 1.704-2(b)(4)) equal to the Partnership Minimum Gain that would result if such partner nonrecourse debt were treated as a nonrecourse liability (as defined in Regulations Section 1.752-1(a)(2)) determined in accordance with Regulations Section 1.704-2(i)(3).

"<u>Partnership</u>" means Fidelity Core Real Estate Operating Partnership LP, a Delaware limited partnership.

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"<u>Partnership DRIP</u>" shall have the meaning set forth in Section 5.8(a).

"<u>Partnership DRIP Participant</u>" shall have the meaning set forth in Section 5.8(a).

"<u>Partnership Interest</u>" means an ownership interest in the Partnership held by a Limited Partner or the General Partner and includes any and all benefits to which the holder of such a Partnership Interest may be entitled as provided in this Agreement, together with all obligations of such Person to comply with the terms and provisions of this Agreement.

"<u>Partnership Minimum Gain</u>" has the meaning specified in Regulations Sections 1.704-2(b)(2) and 1.704-2(d).

"<u>Partnership Record Date</u>" means the record date established by the General Partner for the distribution of cash pursuant to Section 5.2, which record date shall be the same as the record date established by the General Partner for a distribution to its stockholders of some or all of its portion of such distribution.

"<u>Partnership Register</u>" has the meaning set forth in Section 4.1.

"<u>Partnership Representative</u>" has the meaning described in Section 10.5(a).

"<u>Partnership Unit</u>" means a fractional, undivided share of the Partnership Interests (other than the General Partnership Interest) of all Partners issued hereunder. The allocation of Partnership Units among the Partners shall be as set forth on the Partnership's books and records.

"<u>Percentage Interest</u>" means the percentage ownership interest in the Partnership of each Partner, as determined by dividing the Partnership Units owned by a Partner by the total number of Partnership Units then outstanding. The Percentage Interest of each Partner shall be as set forth on the Partnership's books and records.

"<u>Performance Allocation</u>" has the meaning set forth in the Prior Partnership Agreement.

"<u>Person</u>" means an individual, corporation, partnership, limited liability company, estate, trust (including a trust qualified under Sections 401(a) or 501(c)(17) of the Code), a portion of a trust permanently set aside for or to be used exclusively for the purposes described in Section 642(c) of the Code, association, private foundation within the meaning of Section 509(a) of the Code, joint stock company or other legal entity.

"<u>Plan Asset Regulations</u>" has the meaning set forth in Article 3.

"<u>Prior Partnership Agreement</u>" has the meaning set forth in the Recitals.

"<u>Private Placement</u>" shall mean the offer and sale of REIT Shares by the General Partner pursuant to the Memorandum in a private offering not registered under the Securities Act.

"<u>Profit</u>" has the meaning provided in Section 5.1(e) hereof.

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"<u>Property</u>" means any Real Property, Real Estate Securities or other investment in which the Partnership holds an ownership interest.

"<u>Real Estate Securities</u>" means equity and debt securities of both publicly traded and private companies, including REITs and pass-through entities, that own Real Property or loans secured by real estate, including investments in commercial mortgage-backed securities, and derivative instruments, owned by the General Partner or the Partnership directly or indirectly through one or more of its Affiliates.

"<u>Real Property</u>" means land, rights in land (including leasehold interests) and any buildings, structures, improvements, furnishings, fixtures and equipment located on or used in connection with land and rights or interests in land.

"<u>Redemption Price</u>" means the Value of the REIT Shares Amount as of the end of the Specified Redemption Date.

"<u>Redemption Right</u>" has the meaning provided in Section 8.5(a).

"<u>Regulations</u>" means the federal income tax regulations promulgated under the Code, as amended and as hereafter amended from time to time. Reference to any particular provision of the Regulations shall mean that provision of the Regulations on the date hereof and any successor provision of the Regulations.

"<u>Regulatory Allocations</u>" has the meaning set forth in Section 5.1(g).

"<u>REIT</u>" means corporation, trust, association or other legal entity (other than a real estate syndication) that is engaged primarily in investing in equity interests in real estate (including fee ownership and leasehold interests) or in loans secured by real estate or both as defined pursuant to Sections 856 through 860 of the Code and any successor or other provisions of the Code relating to real estate investment trusts (including provisions as to the attribution of ownership of beneficial interests therein) and the Regulations promulgated thereunder.

"<u>REIT Expenses</u>" means (i) costs and expenses relating to the formation and continuity of existence and operation of the General Partner and any Subsidiaries thereof (which Subsidiaries shall, for purposes of this defined term, be included within the definition of General Partner), including taxes, fees and assessments associated therewith, any and all costs, expenses or fees payable to any trustee, director, officer, or employee of the General Partner or service providers to the General Partner (including service providers affiliated with the Investment Manager), (ii) costs and expenses relating to the Private Placement and any Public Offering and registration of securities by the General Partner or the Partnership and all filings, statements, reports, fees and expenses incidental thereto, including, without limitation, underwriting discounts and selling commissions applicable to the Private Placement and any such Public Offering of securities, any stockholder servicing fees, and any costs and expenses associated with any claims made by any holders of such securities or any underwriters or placement agents thereof, (iii) costs and expenses associated with any repurchase of any securities by the General Partner, (iv) costs and expenses associated with the preparation and filing of any periodic or other reports and communications by the General Partner under federal, state or local laws or regulations, including filings with the Commission, (v) costs and expenses associated with compliance by the General Partner with laws,

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rules and regulations promulgated by any regulatory body, including the Commission and any securities exchange, (vi) the management fee payable to the Investment Manager under the Investment Management Agreement and other fees and expenses payable to other services providers of the General Partner, (vii) costs and expenses incurred by the General Partner relating to any issuance or redemption of Partnership Interests or REIT Shares, and (viii) all other operating or administrative costs of the General Partner incurred in the ordinary course of its business on behalf of or in connection with the Partnership.

"<u>REIT Requirements</u>" means the requirements for qualifying as a REIT under the Code and Regulations.

"<u>REIT Share</u>" means a common shares of beneficial interest of the General Partner (or successor entity, as the case may be).

"<u>REIT Shares Amount</u>" means a number of REIT Shares equal to the number of Partnership Units offered for exchange by a Tendering Party; provided that in the event the General Partner issues to all holders of REIT Shares rights, options, warrants or convertible or exchangeable securities entitling the stockholders to subscribe for or purchase REIT Shares, or any other securities or property (collectively, the "rights"), and the rights have not expired at the Specified Redemption Date, then the REIT Shares Amount shall also include the rights issuable to a holder of the REIT Shares Amount of REIT Shares on the record date fixed for purposes of determining the holders of REIT Shares entitled to rights.

"<u>Related Party</u>" means, with respect to any Person, any other Person whose ownership of shares of beneficial interest of the General Partner's would be attributed to the first such Person under Code Section 544 (as modified by Code Section 856(h)(1)(B)).

"<u>Securities Act</u>" means the Securities Act of 1933, as amended from time to time, or any successor statute thereto. Reference to any provision of the Securities Act shall mean such provision as in effect from time to time, as the same may be amended, and any successor provision thereto, as interpreted by any applicable regulations as in effect from time to time.

"<u>Service</u>" means the United States Internal Revenue Service.

"<u>Side Letter</u>" has the meaning set forth in Section 12.5.

"<u>Specified Redemption Date</u>" means the first business day of the month following the month of the day that is 45 days after the receipt by the General Partner of the Notice of Redemption or, with respect to a Notice of Redemption delivered by the Investment Manager (or its assignees), such date after the receipt by the General Partner of the Notice of Redemption as may be determined by the General Partner in its sole discretion.

"<u>Subsidiary</u>" means, with respect to any Person, any corporation or other entity of which a majority of (i) the voting power of the voting equity securities or (ii) the outstanding equity interests is owned, directly or indirectly, by such Person.

"<u>Substitute Limited Partner</u>" means any Person admitted to the Partnership as a Limited Partner pursuant to Section 9.3.

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"<u>Successor Entity</u>" has the meaning set forth in Section 4.2(a)(ii).

"<u>Survivor</u>" has the meaning set forth in Section 7.1(c).

"<u>Tax Advances</u>" has the meaning set forth in Section 5.2(c).

"<u>Tax Items</u>" has the meaning set forth in Section 5.1(f).

"<u>Tendered Units</u>" has the meaning provided in Section 8.5(a).

"<u>Tendering Party</u>" has the meaning provided in Section 8.5(a).

"<u>Transaction</u>" has the meaning set forth in Section 7.1(b).

"<u>Transfer</u>" has the meaning set forth in Section 9.2(a).

"<u>Trustee</u>" refers to Fidelity CRET Trustee LLC, a Delaware limited liability company, the sole trustee of the Fidelity Core Real Estate Fund, or any successor or replacement thereto.

"<u>Value</u>" means, for the REIT Shares: (i) if the REIT Shares are listed on a national securities exchange, the average closing price per share for the previous 30 trading days, or (ii) if the REIT Shares are not listed on a national securities exchange, the Net Asset Value Per REIT Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2. <u>Interpretation</u>**. The definitions in Section 1.1 shall apply equally to both the singular and plural forms of the terms defined. Wherever the context may require, any pronoun used in this Agreement shall include the corresponding masculine, feminine and neuter forms. For all purposes of this Agreement, the term "control" and variations thereof shall mean possession of the authority to direct or cause the direction of the management and policies of the specified entity, through the direct or indirect ownership of equity interests therein, by contract or otherwise. As used in this Agreement, the words "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation." As used in this Agreement, the terms "herein," "hereof" and "hereunder" shall refer to this Agreement in its entirety. Any references in this Agreement to "Sections" or "Articles" shall, unless otherwise specified, refer to Sections or Articles, respectively, in this Agreement. Any references in this Agreement to an "Exhibit" shall, unless otherwise specified, refer to an Exhibit attached to this Agreement, as such Exhibit may be amended from time to time. Each such Exhibit shall be deemed incorporated in this Agreement in full.

**ARTICLE 2** 

**<u>PARTNERSHIP FORMATION AND IDENTIFICATION; GENERAL PROVISIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1. <u>Formation</u>**. The Partnership was formed as a limited partnership pursuant to the Act and all other pertinent laws of the State of Delaware, for the purposes and upon the terms and conditions set forth in this Agreement. Except as expressly provided herein to the contrary, the rights and obligations of the Partners and the administration and termination of the Partnership shall be governed by the Act. No Partner has any interest in any Partnership Property, and the Partnership Interest of each Partner shall be personal property for all purposes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2. <u>Name, Office and Registered Agent</u>**. The name of the Partnership is Fidelity Core Real Estate Operating Partnership LP. The specified office and principal place of business of the Partnership shall be c/o Corporate Legal, 245 Summer Street, Boston MA 02210. The General Partner may at any time change the location of such office, provided the General Partner gives notice to the Partners of any such change. The name and address of the Partnership's registered agent is The Corporation Trust Company, Corporation Trust Center, 1209 Orange Street, Wilmington, DE 19801. The sole duty of the registered agent as such is to forward to the Partnership any notice that is served on him as registered agent. The Partnership may maintain offices at such other place or places within or outside the State of Delaware as the General Partner deems advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.3. <u>Partners</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The General Partner of the Partnership is Fidelity Core Real Estate Fund, a Maryland statutory trust. Its principal place of business is the same as that of the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Limited Partners are the General Partner (in its capacity as Limited Partner) and any other Persons identified as Limited Partners on the Partnership's books and records. A Person shall be admitted as a Limited Partner of the Partnership at the time that (i) this Agreement or a counterpart hereof is executed by or on behalf of such Person and (ii) such Person is listed by the General Partner as a Limited Partner of the Partnership in the Partnership Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.4. <u>Term and Dissolution</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Partnership commenced upon the filing for record of the Certificate in the office of the Secretary of State of the State of Delaware on February 8, 2022, and shall continue indefinitely, except that the Partnership shall be dissolved upon the first to occur of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The occurrence of an Event of Bankruptcy as to a General Partner or the dissolution, death, removal or withdrawal of a General Partner unless the business of the Partnership is continued pursuant to Section 7.3(b); provided that if a General Partner is on the date of such occurrence a partnership, the dissolution of such General Partner as a result of the dissolution, death, withdrawal, removal or Event of Bankruptcy of a partner in such partnership shall not be an event of dissolution of the Partnership if the business of such General Partner is continued by the remaining partner or partners, either alone or with additional partners, and such General Partner and such partners comply with any other applicable requirements of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The passage of 90 days after the sale or other disposition of all or substantially all of the assets of the Partnership (provided that if the Partnership receives an installment obligation as consideration for such sale or other disposition, the Partnership shall continue, unless sooner dissolved under the provisions of this Agreement, until such time as such note or notes are paid in full); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The election by the General Partner that the Partnership should be dissolved.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon dissolution of the Partnership (unless the business of the Partnership is continued pursuant to Section 7.3(b)), the General Partner (or its trustee, receiver, successor or legal representative) shall amend or cancel any Certificate(s) and liquidate the Partnership's assets and apply and distribute the proceeds thereof in accordance with Section 5.6. Notwithstanding the foregoing, the liquidating General Partner may either (i) defer liquidation of, or withhold from distribution for a reasonable time, any assets of the Partnership (including those necessary to satisfy the Partnership's debts and obligations), or (ii) distribute the assets to the Partners in kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.5. <u>Filing of Certificate and Perfection of Limited Partnership</u>**. The General Partner shall execute, acknowledge, record and file at the expense of the Partnership, any and all amendments to the Certificate(s) and all requisite fictitious name statements and notices in such places and jurisdictions as may be necessary to cause the Partnership to be treated as a limited partnership under, and otherwise to comply with, the laws of each state or other jurisdiction in which the Partnership conducts business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.6. <u>Certificates Representing Partnership Units</u>**. At the request of a Limited Partner, the General Partner, at its sole and absolute discretion, may issue (but in no way is obligated to issue) a certificate specifying the number of Partnership Units owned by the Limited Partner as of the date of such certificate. Any such certificate (i) shall be in form and substance as approved by the General Partner, (ii) shall not be negotiable and (iii) shall bear a legend to the following effect:

"This certificate is not negotiable. The Partnership Units represented by this certificate are governed by, and transferable only in accordance with, the provisions of the Limited Partnership Agreement of Fidelity Core Real Estate Operating Partnership LP, as amended from time to time."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.7. <u>Warehoused Investments</u>**. In the event that the Investment Manager or any Affiliate acquires investments falling within the General Partner's investment objectives on behalf of the Partnership (each, a "Warehoused Investment") at any time prior to or after the date hereof, the Partnership will, in the Investment Manager's discretion, purchase such Warehoused Investment. The purchase price for any such Warehoused Investment will be equal to the sum of (i) the acquisition cost of such Warehoused Investment (less any disposition proceeds and amounts received from such Warehoused Investment), including any unreimbursed expenses, fees, taxes, and costs incurred in connection with the purchase and holding of such Warehoused Investment, plus interest thereon at a per annum rate equal to the effective federal funds rate plus 175 basis points, and (ii) all fees, taxes, expenses and costs incurred in connection with the transfer of such Warehoused Investment. Each Limited Partner, by executing subscription documents with respect to its investment in the Partnership, consents to the conveyance of any Warehoused Investments to the Partnership according to the terms described in this Section 2.7.

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**ARTICLE 3** 

**<u>BUSINESS OF THE PARTNERSHIP</u>**

The purpose and nature of the business to be conducted by the Partnership is (i) to conduct any business that may be lawfully conducted by a limited partnership organized pursuant to the Act; *provided, however*, that such business shall be limited to and conducted in such a manner as to permit the General Partner at all times to qualify as a REIT, and in a manner such that the General Partner will not be subject to any taxes under Section 857 or 4981 of the Code (to the extent the General Partner determines not being subject to such taxes is desirable), unless the General Partner otherwise ceases to qualify as a REIT, (ii) to enter into any partnership, joint venture or other similar arrangement to engage in any of the foregoing or the ownership of interests in any entity engaged in any of the foregoing and (iii) to do anything necessary or incidental to the foregoing. In connection with the foregoing, and without limiting the General Partner's right in its sole and absolute discretion to qualify or cease qualifying as a REIT, the Partners acknowledge that the General Partner intends to qualify as a REIT for federal income tax purposes and that such qualification and the avoidance of income and excise taxes on the General Partner inures to the benefit of all the Partners and not solely to the General Partner. Notwithstanding the foregoing, the Partners agree that the General Partner may terminate its status as a REIT under the Code at any time to the full extent permitted under the Declaration of Trust. The General Partner, on behalf of the Partnership, shall also be empowered to do any and all acts and things necessary or prudent to ensure that the Partnership will not be classified as a "publicly traded partnership" for purposes of Section 7704 of the Code.

The Partnership shall conduct its affairs in such manner that the Partnership's assets will not be considered "plan assets" within the meaning of ERISA or Department of Labor regulations set forth at 29 C.F.R. Section 2510.3-101(e) or any successor to such regulations (the "Plan Asset Regulations"). In furtherance of the foregoing, to the extent the Partnership intends to qualify as an "operating company" as defined in the Plan Assets Regulations, the Partnership shall (a) have a percentage of its assets invested in operating companies or real estate on the first day it makes an investment (other than short-term investments pending long-term commitment) and on certain specified annual testing dates, and (b) and shall exercise its right to substantially participate in the management and development activities with respect to such investments to the extent required to maintain its status as an "operating company."

**ARTICLE 4** 

**<u>CAPITAL CONTRIBUTIONS AND ACCOUNTS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1. <u>Capital Contributions</u>**. The General Partner and the Limited Partners have made Capital Contributions to the Partnership in exchange for the Partnership Interests set forth opposite their names on the Partnership's books and records. The General Partner may keep the Partnership's books and records which shall include, among other things, a register that contains the name, address, and number and Class of Partnership Units of each Partner (the "Partnership Register") and that reflect periodic changes to the Capital Contributions made by the Partners and redemptions and other purchases of Partnership Units by the Partnership, and corresponding changes to the Partnership Interests of the Partners, without preparing a formal amendment to this Agreement. Any reference in this Agreement to the Partnership Register shall be deemed a reference to the Partnership Register as in effect from time to time. Subject to the terms of this Agreement, the General Partner may take any action authorized hereunder in respect of the Partnership Register without any need to obtain the consent or approval of any other Partner. No action of any Limited Partner shall be required to amend or update the Partnership Register. Except as required by law, no Limited Partner shall be entitled to receive a copy of the information set forth in the Partnership Register relating to any Partner other than itself.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2. <u>Additional Capital Contributions and Issuances of Additional Partnership Interests</u>**. Except as provided in this Section 4.2 or in Section 4.3, the Partners shall have no right or obligation to make any additional Capital Contributions or loans to the Partnership. The General Partner may contribute additional capital to the Partnership, from time to time, and receive additional Partnership Interests in respect thereof, in the manner contemplated in this Section 4.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Issuances of Additional Partnership Interests</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **<u>General</u>**. The General Partner is hereby authorized to cause the Partnership to issue such additional Partnership Interests in the form of Partnership Units for any Partnership purpose at any time or from time to time to the Partners (including the General Partner) or to other Persons for such consideration and on such terms and conditions as shall be established by the General Partner in its sole and absolute discretion, all without the approval of any Limited Partners, including but not limited to, Partnership Units issued in connection with the issuance of REIT Shares of, or other interests in, the General Partner, Partnership Units previously issued with respect to payments made pursuant to the Performance Allocation, and Partnership Units issued to the Investment Manager as a management fee pursuant to the Investment Management Agreement. Without limiting the foregoing, the General Partner is also expressly authorized to cause the Partnership to issue Partnership Units (i) upon the conversion, redemption or exchange of any debt, Partnership Units, or other securities issued by the Partnership, (ii) for such consideration as the General Partner may determine, (iii) in connection with any merger of any other Person into the Partnership or (iv) upon the contribution of property or assets to the Partnership or otherwise in connection with the Partnership's acquisition of a property or assets. Any additional Partnership Interests issued thereby may be issued in one or more classes (including any classes specified in this Agreement or any other classes), or one or more series of any of such classes, with such designations, preferences and relative, participating, optional or other special rights, powers and duties, including rights, voting and other powers and duties senior to Limited Partnership Interests, all as shall be determined by the General Partner in its sole and absolute discretion and without the approval of any Limited Partner, subject to Delaware law, including, without limitation, (i) the allocations of items of Partnership income, gain, loss, deduction and credit to each such class or series of Partnership Interests; (ii) the right of each such class or series of Partnership Interests to share in Partnership distributions; and (iii) the rights of each such class or series of Partnership Interests upon dissolution and liquidation of the Partnership; *provided, however*, that no additional Partnership Interests shall be issued to the General Partner unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the additional Partnership Interests are issued in connection with an issuance of Additional Securities by the General Partner in accordance with Section 4.2(a)(iii);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the additional Partnership Interests are issued in exchange for property owned by the General Partner or in exchange for other consideration with a fair market value, as determined by the General Partner, in good faith, equal to the value of the Partnership Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the additional Partnership Interests are issued upon the conversion, redemption or exchange of debt, Partnership Units or other securities issued by the Partnership; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the additional Partnership Interests are also offered or issued to all Partners holding Partnership Units in proportion to their respective Percentage Interests.

Without limiting the foregoing, the General Partner is expressly authorized to cause the Partnership to issue Partnership Units for less than fair market value, so long as the General Partner concludes in good faith that such issuance is in the best interests of the General Partner and the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **<u>Adjustment Events</u>**. In the event the General Partner (i) declares or pays a dividend on its outstanding REIT Shares in REIT Shares or makes a distribution to all holders of its outstanding REIT Shares in REIT Shares, (ii) subdivides its outstanding REIT Shares, or (iii) combines its outstanding REIT Shares into a smaller number of REIT Shares, then a corresponding adjustment to the number of outstanding Partnership Units necessary to maintain the proportionate relationship between the number of outstanding Partnership Units to the number of outstanding REIT Shares shall automatically be made. Additionally, in the event that any other entity shall become General Partner pursuant to any merger, consolidation or combination of the General Partner with or into another entity (the "Successor Entity"), the number of outstanding Partnership Units shall be adjusted by multiplying such number by the number of shares of the Successor Entity into which one REIT Share is converted pursuant to such merger, consolidation or combination, determined as of the date of such merger, consolidation or combination. Any adjustment to the number of outstanding Partnership Units shall become effective immediately after the effective date of such event retroactive to the record date, if any, for such event; *provided, however*, that if the General Partner receives a Notice of Redemption after the record date, but prior to the effective date of such dividend, distribution, subdivision or combination, or such merger, consolidation or combination, the number of outstanding Partnership Units shall be determined as if the General Partner had received the Notice of Redemption immediately prior to the record date for such dividend, distribution, subdivision or combination or such merger, consolidation or combination. If the General Partner takes any other action affecting the REIT Shares other than actions specifically described above and, in the opinion of the General Partner such action would require an adjustment to the number of Partnership Units to maintain the proportionate relationship between the number of outstanding Partnership Units to the number of outstanding REIT Shares, the General Partner shall have the right to make such adjustment to the number of Partnership Units, to the extent permitted by law, in such manner and at such time as the General Partner, in its sole discretion, may determine to be appropriate under the circumstances.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) **<u>Upon Issuance of Additional Securities</u>**. Upon the issuance by the General Partner of any Additional Securities (including pursuant to the General Partner's distribution reinvestment plan) other than to all holders of REIT Shares, the General Partner shall contribute any net proceeds from the issuance of such Additional Securities and from any exercise of rights contained in such Additional Securities, directly and through the General Partner, to the Partnership in return for, as the General Partner may designate, Partnership Interests or rights, options, warrants or convertible or exchangeable securities of the Partnership having designations, preferences and other rights such that their economic interests are substantially similar to those of the Additional Securities; *provided, however*, that the General Partner is allowed to issue Additional Securities in connection with an acquisition of assets that would not be owned directly or indirectly by the Partnership, but if and only if, such acquisition and issuance of Additional Securities have been approved and determined to be in or not opposed to the best interests of the General Partner and the Partnership; *provided further*, that the General Partner is allowed to use net proceeds from the issuance and sale of such Additional Securities to repurchase REIT Shares pursuant to a share repurchase plan. Without limiting the foregoing, the General Partner is expressly authorized to issue Additional Securities for less than fair market value, and to cause the Partnership to issue to the General Partner corresponding Partnership Interests, so long as the General Partner concludes in good faith that such issuance is in the best interests of the General Partner and the Partnership. Without limiting the foregoing, if the General Partner issues REIT Shares for a cash purchase price and contributes all of the net proceeds of such issuance to the Partnership as required hereunder, the General Partner shall be issued a number of additional Partnership Units equal to the number of such REIT Shares issued by the General Partner the proceeds of which were so contributed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Certain Deemed Contributions of Proceeds of Issuance of REIT Shares</u>**. In connection with any and all issuances of REIT Shares, to the extent that the General Partner shall make Capital Contributions to the Partnership of the proceeds therefrom, if the proceeds actually received and contributed by the General Partner in respect of the REIT Shares the proceeds of which were so contributed are less than the gross proceeds of such issuance as a result of any underwriter's discount or other expenses paid or incurred in connection with such issuance, then the General Partner shall be deemed to have made Capital Contributions to the Partnership in the aggregate amount of the gross proceeds of such issuance and the Partnership shall be deemed simultaneously to have paid such offering expenses in accordance with Section 6.5 and in connection with the required issuance of additional Partnership Units to the General Partner for such Capital Contributions pursuant to Section 4.2(a). In connection with any and all issuances of REIT Shares pursuant to the General Partner's distribution reinvestment plan, the General Partner shall be deemed to have made Capital Contributions to the Partnership in the aggregate amount of the distributions that have been reinvested in respect of the REIT Shares issued by the General Partner in return for an equal number of Partnership Units as the issued REIT Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3. <u>Additional Funding</u>**. If the General Partner determines that it is in the best interests of the Partnership to provide for additional Partnership funds ("Additional Funds") for any Partnership purpose, the General Partner may (i) cause the Partnership to obtain such funds from outside borrowings, (ii) elect to have the General Partner or any of its Affiliates provide such Additional Funds to the Partnership through loans, purchase of additional Partnership Interests or otherwise (which the General Partner or such Affiliates will have the option, but not the obligation, of providing) or (iii) cause the Partnership to issue additional Partnership Interests and admit additional Limited Partners to the Partnership in accordance with Section 4.2.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4. <u>Capital Accounts</u>**. A separate capital account (a "Capital Account") shall be established and maintained for each Partner in accordance with Regulations Section 1.704-1(b)(2)(iv), and a Partner shall have a single Capital Account with respect to all Partnership Interests held by such Partner. If (i) a new or existing Partner acquires an additional Partnership Interest in exchange for more than a *de minimis* Capital Contribution, (ii) the Partnership distributes to a Partner more than a *de minimis* amount of Partnership property or money as consideration for a Partnership Interest, (iii) the Partnership is liquidated within the meaning of Regulation Section 1.704-1(b)(2)(ii)(g), (iv) the Partnership grants a Partnership Interest (other than a *de minimis* interest) as consideration for the provision of services to or for the benefit of the Partnership, or (v) another event occurs pursuant to which the Partnership may revalue its Property, the General Partner may (or shall, if required by the Regulations) revalue the property of the Partnership to its fair market value (as determined by the General Partner, in its sole and absolute discretion, and taking into account Section 7701(g) of the Code) in accordance with Regulations Section 1.704-1(b)(2)(iv)(f) or other applicable Regulation. When the Partnership's property is revalued by the General Partner, the Capital Accounts of the Partners shall be adjusted in accordance with Regulations Sections 1.704-1(b)(2)(iv)(f) and (g), which generally require such Capital Accounts to be adjusted to reflect the manner in which the unrealized gain or loss inherent in such property (that has not been reflected in the Capital Accounts previously) would be allocated among the Partners pursuant to Section 5.1 if there were a taxable disposition of such property for its fair market value (as determined by the General Partner, in its sole and absolute discretion, and taking into account Section 7701(g) of the Code) on the date of the revaluation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5. <u>Percentage Interests</u>**. If the number of outstanding Partnership Units increases or decreases during a taxable year, each Partner's Percentage Interest shall be adjusted by the General Partner effective as of the effective date of each such increase or decrease to a percentage equal to the number of Partnership Units held by such Partner divided by the aggregate number of Partnership Units outstanding after giving effect to such increase or decrease. If the Partners' Percentage Interests are adjusted pursuant to this Section 4.5, the Profits and Losses (or items thereof) for the taxable year in which the adjustment occurs shall be allocated between the part of the year ending on the day when the adjustment occurs and the part of the year beginning on the following day either (i) as if the taxable year had ended on the date of the adjustment or (ii) based on the number of days in each part. The General Partner, in its sole and absolute discretion, shall determine which method shall be used to allocate Profits and Losses (or items thereof) for the taxable year in which the adjustment occurs. The allocation of Profits and Losses (or items thereof) for the earlier part of the year shall be based on the Percentage Interests before adjustment, and the allocation of Profits and Losses (or items thereof) for the later part shall be based on the adjusted Percentage Interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6. <u>No Interest on Contributions</u>**. No Partner shall be entitled to interest on its Capital Contribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.7. <u>Return of Capital Contributions</u>**. No Partner shall be entitled to withdraw any part of its Capital Contribution or its Capital Account or to receive any distribution from the Partnership, except as specifically provided in this Agreement. Except as otherwise provided herein, there shall be no obligation to return to any Partner or withdrawn Partner any part of such Partner's Capital Contribution for so long as the Partnership continues in existence.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.8. <u>No Third Party Beneficiary</u>**. Except as expressly provided in this Agreement, no creditor or other third-party having dealings with the Partnership shall have the right to enforce the right or obligation of any Partner to make Capital Contributions or loans or to pursue any other right or remedy hereunder or at law or in equity, it being understood and agreed that the provisions of this Agreement shall be solely for the benefit of, and may be enforced solely by, the parties hereto and their respective successors and assigns. None of the rights or obligations of the Partners herein set forth to make Capital Contributions or loans to the Partnership shall be deemed an asset of the Partnership for any purpose by any creditor or other third party, nor may such rights or obligations be sold, transferred or assigned by the Partnership or pledged or encumbered by the Partnership to secure any debt or other obligation of the Partnership or of any of the Partners. In addition, it is the intent of the parties hereto that no distribution to any Limited Partner shall be deemed a return of money or other property in violation of the Act. However, if any court of competent jurisdiction holds that, notwithstanding the provisions of this Agreement, any Limited Partner is obligated to return such money or property, such obligation shall be the obligation of such Limited Partner and not of the General Partner. Without limiting the generality of the foregoing, a deficit Capital Account of a Partner shall not be deemed to be a liability of such Partner nor an asset or property of the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.9. <u>No Preemptive Rights</u>**. Except as expressly provided in this Agreement, no person, including, without limitation, any Partner or assignee, shall have any preemptive, preferential, participation or similar right or rights to subscribe for or acquire any Partnership Interest or to otherwise make an additional Capital Contribution.

**ARTICLE 5** 

**<u>PROFITS AND LOSSES; DISTRIBUTIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1. <u>Allocation of Profit and Loss</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>General Partner Gross Income Allocation</u>**. There shall be specially allocated to the General Partner an amount of (i) first, items of Partnership income and (ii) second, items of Partnership gain during each fiscal year or other applicable period, before any other allocations are made hereunder, in an amount equal to the excess, if any, of the cumulative reimbursements made to the General Partner under Section 6.5(b) (other than reimbursements that would properly be treated as "guaranteed payments" or which are attributable to the reimbursement of expenses that would properly be either deductible by the Partnership or added to the tax basis of any Partnership asset) over the cumulative allocations of Partnership income and gain to the General Partner under this Section 5.1(a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>General Allocations</u>**. The items of Profit and Loss of the Partnership for each fiscal year or other applicable period shall be allocated among the Partners in a manner that will, as nearly as possible (after giving effect to the allocations under Section 5.1(a), 5.1(c) and 5.1(g)) cause the Capital Account balance of each Partner at the end of such fiscal year or other applicable period to equal (i) the amount of the hypothetical distribution that such Partner would receive if the Partnership were liquidated on the last day of such period and all assets of the Partnership, including cash, were sold for cash equal to their Carrying Values, taking into account any adjustments thereto for such period, all liabilities of the Partnership were satisfied in full in cash according to their terms (limited with respect to each nonrecourse liability to the Carrying

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Value of the assets securing such liability) and the remaining cash proceeds (after satisfaction of such liabilities) were distributed in full pursuant to Section 5.2, minus (ii) the sum of such Partner's share of Partnership Minimum Gain and Partner Nonrecourse Debt Minimum Gain and the amount, if any and without duplication, that the Partner would be obligated to contribute to the capital of the Partnership, all computed as of the date of the hypothetical sale of assets. Notwithstanding the foregoing, the General Partner may make such allocations as it deems reasonably necessary to give economic effect to the provisions of this Agreement, taking into account facts and circumstances as the General Partner deems reasonably necessary for this purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Regulatory Allocations</u>**. Notwithstanding any other provision of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **<u>Minimum Gain Chargeback</u>**. If there is a net decrease in Partnership Minimum Gain or Partner Nonrecourse Debt Minimum Gain (determined in accordance with the principles of Regulations Sections 1.704-2(d) and 1.704-2(i)) during any Partnership taxable year, the Partners shall be specially allocated items of Partnership income and gain for such year (and, if necessary, subsequent years) in an amount equal to their respective shares of such net decrease during such year, determined pursuant to Regulations Sections 1.704-2(g) and 1.704-2(i)(5). The items to be so allocated shall be determined in accordance with Regulations Section 1.704-2(f). This Section 5.1(c)(i) is intended to comply with the minimum gain chargeback requirements in such Regulations Sections and shall be interpreted consistently therewith, including that no chargeback shall be required to the extent of the exceptions provided in Regulations Sections 1.704-2(f) and 1.704-2(i)(4).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) **<u>Gross Income Allocation</u>**. If one or more Partners has a deficit Capital Account at the end of any fiscal year that is in excess of the sum of (i) the amount each such Partner is obligated to restore, if any, pursuant to any provision of this Partnership Agreement, and (ii) the amount each such Partner is deemed to be obligated to restore pursuant to the penultimate sentences of Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5), each such Partner shall be specially allocated items of Partnership income and gain in the amount of such excess as quickly as possible (in proportion to the amount of such deficit); provided that an allocation pursuant to this Section 5.1(c)(iii) shall be made only if and to the extent that a Partner would have a deficit Capital Account in excess of such sum after all other allocations provided for in this Article 5 have been tentatively made as if Section 5.1(c)(ii) and this Section 5.1(c)(iii) were not in this Partnership Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) **<u>Payee Allocation</u>**. If any payment to any person that is treated by the Partnership as the payment of an expense is recharacterized by a taxing authority as a Partnership distribution to the payee as a partner, such payee shall be specially allocated, in the manner determined by the General Partner, an amount of Partnership gross income and gain as quickly as possible equal to the amount of the distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) **<u>Nonrecourse Deductions</u>**. Nonrecourse Deductions shall be allocated pro rata based on the number of Partnership Units held by each Partner. "Nonrecourse Deductions" has the meaning specified in Regulations Sections 1.704-2(b)(1) and 1.704-2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) **<u>Partner Nonrecourse Deductions</u>**. Partner Nonrecourse Deductions for any taxable period shall be allocated to the Partner who bears the economic risk of loss with respect to the liability to which such Partner Nonrecourse Deductions are attributable in accordance with Regulations Section 1.704-2(j). "Partner Nonrecourse Deductions" has the meaning specified in Regulations Section 1.704-2(i)(2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) **<u>Special Allocations</u>**. Any special allocations of income or gain pursuant to Section 5.1(c)(ii) or Section 5.1(c)(iii) hereof shall be taken into account in computing subsequent allocations pursuant to Section 5.1(b) and this Section 5.1(c)(viii), so that the net amount of any items so allocated and all other items allocated to each Partner shall, to the extent possible, be equal to the net amount that would have been allocated to each Partner if such allocations pursuant to Section 5.1(c)(ii) or Section 5.1(c)(iii) had not occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) **<u>Section 754 Adjustment</u>**. To the extent that an adjustment to the adjusted tax basis of any Partnership asset pursuant to Code Section 734(b) or Code Section 743(b) is required, pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(2) or Regulations Section 1.704-1(b)(2)(iv)(m)(4), to be taken into account in determining Capital Accounts as the result of a distribution to a Partner in complete liquidation of its interest in the Partnership, the amount of such adjustment to the Capital Accounts shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases such basis), and such gain or loss shall be specially allocated to the Partners in accordance with their respective interests in the Partnership in the event that Regulations Section 1.704-1(b)(2)(iv)(m)(2) applies, or to the Partner(s) to whom such distribution was made in the event that Regulations Section 1.704-1(b)(2)(iv)(m)(4) applies.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) **<u>Excess Nonrecourse Liabilities</u>**. The Partnership shall allocate "nonrecourse liabilities" (within the meaning of Regulations Section 1.752-1(a)(2) of the Partnership that are secured by multiple Properties under any reasonable method chosen by the General Partner in accordance with Regulations Section 1.752-3(b). Except as otherwise agreed to between the General Partner and any contributor of Property to the Partnership, the Partnership shall allocate "excess nonrecourse liabilities" of the Partnership within the meaning of Regulations Section 1.752-3(a)(3) under any method chosen by the General Partner, in its sole discretion, that is permitted under Regulations Section 1.752-3(a)(3).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **<u>Allocations Between Transferor and Transferee</u>**. If a Partner Transfers any part or all of its Partnership Interest, the distributive shares of the various items of Profit and Loss allocable among the Partners during such fiscal year of the Partnership shall be allocated between the transferor and the transferee Partner either (i) as if the Partnership's fiscal year had ended on the date of the Transfer, or (ii) based on the number of days of such fiscal year that each was a Partner without regard to the results of Partnership activities in the respective portions of such fiscal year in which the transferor and the transferee were Partners. The General Partner, in its sole and absolute discretion, shall determine which method shall be used to allocate the distributive shares of the various items of Profit and Loss between the transferor and the transferee Partner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **<u>Definition of Profit and Loss</u>**. "Profit" and "Loss" and any items of income, gain, expense, or loss referred to in this Agreement shall be determined in accordance with the accounting method used by the Partnership for U.S. federal income tax purposes with the following adjustments: (i) all items of income, gain, loss or deduction allocated pursuant to Sections 5.1(c)(i) through (iii) shall not be taken into account in computing such taxable income or loss; (ii) any income of the Partnership that is exempt from U.S. federal income taxation and not otherwise taken into account in computing Profit and Loss shall be added to such taxable income or loss; (iii) if the Carrying Value of any asset differs from its adjusted tax basis for U.S. federal income tax purposes, any depreciation, amortization, gain or loss resulting from a disposition of such asset shall be calculated with reference to such Carrying Value; (iv) upon an adjustment to the Carrying Value of any asset pursuant to the definition of Carrying Value (other than an adjustment in respect of depreciation, amortization or cost recovery deductions), the amount of the adjustment shall be included as gain or loss in computing such taxable income or loss; (v) if the Carrying Value of any asset differs from its adjusted tax basis for U.S. federal income tax purposes, the amount of depreciation, amortization or cost recovery deductions with respect to such asset for purposes of Profit and Loss shall be an amount which bears the same ratio to such Carrying Value as the U.S. federal income tax depreciation, amortization or other cost recovery deductions bears to such adjusted tax basis (provided that if the U.S. federal income tax depreciation, amortization or other cost recovery deduction is zero, the Partners may use any reasonable method for purposes of determining depreciation, amortization or other cost recovery deductions in calculating Profit and Loss; and (vi) except for items in (i) above, any expenditures of the Partnership not deductible in computing taxable income or loss, not properly capitalizable and not otherwise taken into account in computing Profit and Loss pursuant to this definition shall be treated as deductible items.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **<u>Tax Allocations</u>**. All items of income, gain, loss, deduction and credit of the Partnership shall be allocated among the Partners for federal, state and local income tax purposes consistent with the manner that the corresponding constituent items of Profit and Loss shall be allocated among the Partners pursuant to this Partnership Agreement in the manner determined by the General Partner, except as may otherwise be provided herein or by the Code. Notwithstanding the foregoing, the General Partner may make such allocations as it deems reasonably necessary to give economic effect to the provisions of this Agreement, taking into account such facts and circumstances as the General Partner deems reasonably necessary for this purpose.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding anything herein to the contrary, for income tax purposes under the Code and the Regulations, each Partnership item of income, gain, loss and deduction (collectively, "Tax Items") with respect to Property that is contributed to the Partnership with an initial Carrying Value that varies from its basis in the hands of the contributing Partner immediately preceding the date of contribution shall be allocated among the Partners for income tax purposes pursuant to Regulations promulgated under Code Section 704(c) so as to take into account such variation under any method approved under Code Section 704(c) and the applicable Regulations as chosen by the General Partner. In the event that the Carrying Value of any Partnership asset is adjusted to equal its respective fair market value, subsequent allocations of Tax Items with respect to such asset shall take account of the variation, if any, between the adjusted basis of such asset and its Carrying Value in the same manner as under Code Section 704(c) and the applicable Regulations and using the method chosen by the General Partner. Except as otherwise agreed to between the General Partner and any contributor of Property to the Partnership, the Partnership will elect to use the traditional method with curative allocations of gain on sale pursuant to Regulations Section 1.704-3(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Allocations pursuant to this Section 5.1(f)(ii) are solely for purposes of federal, state and local income taxes and shall not affect, or in any way be taken into account in computing, any Partner's Capital Account or share of Profit, Loss or any other items or distributions pursuant to any provision of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **<u>Curative Allocations</u>**. The allocations set forth in Section 5.1(c) of this Agreement (the "Regulatory Allocations") are intended to comply with certain requirements of the Regulations. The General Partner is authorized to offset all Regulatory Allocations either with other Regulatory Allocations or with special allocations of other items of Partnership income, gain, loss or deduction pursuant to this Section 5.1(g). Therefore, notwithstanding any other provision of this Section 5.1 (other than the Regulatory Allocations), the General Partner shall make such offsetting special allocations of Partnership income, gain, loss or deduction in whatever manner it deems appropriate so that, after such offsetting allocations are made, each Partner's Capital Account is, to the extent possible, equal to the Capital Account balance such Partner would have had if the Regulatory Allocations were not part of this Agreement and all Partnership items were allocated pursuant to Sections 5.1(a) and (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2. <u>Distribution of Cash</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Partnership shall distribute Distributable Cash on a quarterly basis (or, at the election of the General Partner, in its sole discretion, more or less frequently), in an amount determined by the General Partner in its sole and absolute discretion, to the Partners who are Partners on the Partnership Record Date with respect to such quarter (or other distribution period) in accordance with Section 5.2(b). The Partnership shall be deemed to have distributed cash to the General Partner in an amount equal to the amount of distributions by the General Partner that are reinvested in REIT Shares issued by the General Partner pursuant to the General Partner's distribution reinvestment plan, and the General Partner shall be deemed to have made Capital

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Contributions to the Partnership in the aggregate amount of such distributions in return for an equal number of Partnership Units as the issued REIT Shares. The Partnership shall be deemed to have distributed cash to a Limited Partner in an amount equal to the amount of distributions by the Partnership that are reinvested in Partnership Units issued by the Partnership to such Limited Partner pursuant to Section 5.8, and such Limited Partner shall be deemed to have made Capital Contributions to the Partnership in the aggregate amount of such distributions in return for such Partnership Units issued pursuant to Section 5.8. The number of Partnership Units issued to any such Limited Partner in respect of such reinvested distributions shall equal the amount of such reinvested distributions divided by the most recent Net Asset Value Per Unit of Partnership Units at the time of such distribution (after accounting for any reduction in Net Asset Value Per Unit as a result of such distribution).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except for distributions pursuant to Section 5.6 in connection with the dissolution and liquidation of the Partnership and subject to the provisions of Sections 5.2(c), 5.2(d), 5.3 and 5.4, all distributions of cash (including any deemed distributions pursuant to Section 5.2(a)) shall be made to the Partners in amounts proportionate to the aggregate Net Asset Value of the Partnership Units held by the respective Partners on the Partnership Record Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent the Partnership is required by law to withhold or to make tax payments (including interest and penalties thereon) on behalf of or with respect to any Partner ("Tax Advances"), the General Partner may withhold such amounts and make such tax payments as so required. All Tax Advances made on behalf of a Partner shall, at the option of the General Partner, (i) be promptly paid to the Partnership by the Partner on whose behalf such Tax Advances were made or (ii) be repaid by reducing the amount of the current or next succeeding distribution or distributions which would otherwise have been made to such Partner or, if such distributions are not sufficient for that purpose, by so reducing the proceeds of liquidation otherwise payable to such Partner. Whenever the General Partner selects the option set forth in clause (ii) of the immediately preceding sentence for repayment of a Tax Advance by a Partner, for all other purposes of this Partnership Agreement such Partner shall be treated as having received all distributions unreduced by the amount of such Tax Advance. Each Partner hereby agrees to indemnify and hold harmless the Partnership and the General Partner and any member, trustee, director or officer of the General Partner from and against any liability with respect to Tax Advances required on behalf of or with respect to such Partner. Each Partner shall furnish the General Partner with such information, forms and certifications as it may require and as are necessary to comply with the regulations governing the obligations of withholding tax agents, as well as such information, forms and certifications as are necessary with respect to any withholding taxes imposed by countries other than the United States and represents and warrants that the information and forms furnished by it shall be true and accurate in all respects. The amount of any taxes paid by or withheld from receipts of the Partnership (or any investment in which the Partnership invests that is treated as a flow-through entity for U.S. federal income tax purposes) allocable to a Partner from an Investment shall be deemed to have been distributed to each Partner to the extent that the payment or withholding of such taxes reduced distribution proceeds otherwise distributable to such Partner as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In no event may a Partner receive a distribution of cash with respect to a Partnership Unit if such Partner is entitled to receive a cash distribution as the holder of record of a REIT Share for which all or part of such Partnership Unit has been or will be exchanged.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3. <u>REIT Distribution Requirements</u>**. The General Partner shall use its commercially reasonable efforts to cause the Partnership to distribute amounts sufficient to enable the General Partner to make distributions that will allow the General Partner to (i) meet its distribution requirement for qualification as a REIT as set forth in Section 857 of the Code and (ii) avoid any federal income or excise tax liability imposed by the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.4. <u>No Right to Distributions in Kind</u>.** No Partner shall be entitled to demand property other than cash in connection with any distributions by the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.5. <u>Limitations on Return of Capital Contributions</u>**. Notwithstanding any of the provisions of this Article 5, no Partner shall have the right to receive and the General Partner shall not have the right to make, a distribution that includes a return of all or part of a Partner's Capital Contributions, unless after giving effect to the return of a Capital Contribution, the sum of all Partnership liabilities, other than the liabilities to a Partner for the return of his Capital Contribution, does not exceed the fair market value of the Partnership's assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.6. <u>Distributions Upon Liquidation</u>**. Upon liquidation of the Partnership, after payment of, or adequate provision for, debts and obligations and establishment of reserves of the Partnership, including any Partner loans, and any preferred return owed to any other Partnership Units, any remaining assets of the Partnership shall be distributed to each holder of Partnership Units, ratably with each other holder of Partnership Units, in such proportion as the number of outstanding Partnership Units held by such holder bears to the total number of Partnership Units then outstanding. Notwithstanding any other provision of this Agreement, the amount by which the value, as determined in good faith by the General Partner, of any property other than cash to be distributed in kind to the Partners exceeds or is less than the Carrying Value of such property shall, to the extent not otherwise recognized by the Partnership, be taken into account in computing Profit and Loss of the Partnership for purposes of crediting or charging the Capital Accounts of, and distributing proceeds to, the Partners, pursuant to this Agreement. To the extent deemed advisable by the General Partner, appropriate arrangements (including the use of a liquidating trust) may be made to assure that adequate funds are available to pay any contingent debts or obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.7. <u>Partners</u><u>'</u> <u>Interest in the Partnership</u>**. It is the intent of the Partners that the allocations of Profit and Loss pursuant to this Agreement be consistent with the Partners' interests in the Partnership within the meaning of Section 704(b) of the Code, as interpreted by the Regulations promulgated pursuant thereto. Article 5 and other relevant provisions of this Agreement shall be interpreted in a manner consistent with such intent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.8. <u>Distribution Reinvestment</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject in each case to the written consent of the General Partner (which the General Partner may withhold in its sole discretion), a Limited Partner (excluding the General Partner in its capacity as such) may participate in the Partnership's program to reinvest distributions payable to holders of Partnership Units as established by this Section 5.8(a) (the "Partnership DRIP" and any Limited Partner approved for participation therein, a "Partnership DRIP Participant"). The following provisions shall apply to the Partnership DRIP and any Partnership DRIP Participant:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to Section 5.8(a)(ii)(5), the General Partner shall, on behalf of each Partnership DRIP Participant, reinvest all distributions to be made to such Partnership DRIP Participant with respect to its Partnership Units in exchange for such Partnership DRIP Participant being issued additional Partnership Units. Partnership Units issued pursuant to the Partnership DRIP shall be purchased at the applicable Net Asset Value per Partnership Unit on the date that the distribution is payable (calculated as of the most recent month end).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Partnership DRIP Participant agrees and acknowledges as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Partnership has designated the General Partner to administer the Partnership DRIP and act as agent for the Partnership DRIP Participants. The General Partner shall credit distributions to Partnership DRIP Participants on the basis of whole or fractional Partnership Units, and shall reinvest such distributions in additional Partnership Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) A Partnership DRIP Participant shall remain in the Partnership DRIP until such Partnership DRIP Participant withdraws from the DRIP in accordance with Section 5.8(a)(i)(5) or the General Partner terminates or suspends the Partnership DRIP. The General Partner may suspend or terminate the Partnership DRIP at any time in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) A Partnership DRIP Participant shall be deemed to have made a Capital Contribution, and Partnership Units shall be purchased, on the date that the distribution is payable (at the then-current Net Asset Value per Partnership Unit, calculated as of the most recent month end). No interest shall be paid on cash distributions pending reinvestment under the terms of the Partnership DRIP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) No Partnership DRIP Participant shall have any authorization or power to direct the time or price at which Partnership Units shall be purchased. The total amount to be invested shall depend on the amount of any distributions paid on the number of Partnership Units owned by the Partnership DRIP Participant, as well as any withholding taxes paid on behalf of such Partnership DRIP Participant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Partnership DRIP Participants may elect to withdraw from the Partnership DRIP by providing 10 days' prior written notice of such election to withdraw in a form acceptable to the General Partner, and such election to withdraw shall be effective until rescinded by providing written notice of an election to reinstate participation in the Partnership DRIP in a form acceptable to the General Partner. Such written notice of such election to withdraw or be reinstated, as the case may be, must be received by the General Partner prior to the last business day of the month in order for a Partnership DRIP Participant's termination to be effective for such month. Any Transfer of Partnership Units by a Partnership DRIP Participant to a non-Partnership DRIP Participant will terminate participation in the Partnership DRIP with respect to the transferred Partnership Units. If a Partnership DRIP Participant terminates participation in the Partnership DRIP, the Partnership may, at its option, ensure that the terminating participant's account will reflect the whole number of Partnership Units in such participant's account and provide a check or other instrument of payment for the cash value of any fractional Partnership Unit in such account. Upon a Limited Partner's termination of participation in the Partnership DRIP for any reason, future distributions will be distributed to such Limited Partner in cash (except for allowable in-kind distributions).

This Section 5.8 shall not apply to any distributions to the General Partner or the Investment Manager pursuant to Section 5.2(a).

**ARTICLE 6** 

**<u>RIGHTS, OBLIGATIONS AND</u>**

**<u>POWERS OF THE GENERAL PARTNER</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1.** <u>**Management of the Partnership**.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise expressly provided in this Agreement, the General Partner shall have full, complete and exclusive discretion to manage and control the business of the Partnership for the purposes herein stated, and shall make all decisions affecting the business and assets of the Partnership. Subject to the restrictions specifically contained in this Agreement and without limiting any powers of the Investment Manager pursuant to the Investment Management Agreement, the powers of the General Partner shall include, without limitation, the authority to take the following actions on behalf of the Partnership:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to acquire, purchase, own, operate, lease and dispose of any Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to construct buildings and make other improvements on the properties owned or leased by the Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to authorize, issue, sell, redeem or otherwise purchase any Partnership Interests or any securities (including secured and unsecured debt obligations of the Partnership, debt obligations of the Partnership convertible into any class or series of Partnership Interests, or options, rights, warrants or appreciation rights relating to any Partnership Interests) of the Partnership;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to borrow or lend money for the Partnership, issue or receive evidences of indebtedness in connection therewith, refinance, increase the amount of, modify, amend or change the terms of, or extend the time for the payment of, any such indebtedness, and secure such indebtedness by mortgage, deed of trust, pledge or other lien on the Partnership's assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to pay, either directly or by reimbursement, for all operating costs and general administrative expenses of the Partnership to the Investment Manager, to third parties or to the General Partner or its Affiliates as set forth in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) to guarantee or become a co-maker of indebtedness of the General Partner or any Subsidiary thereof, refinance, increase the amount of, modify, amend or change the terms of, or extend the time for the payment of, any such guarantee or indebtedness, and secure such guarantee or indebtedness by mortgage, deed of trust, pledge or other lien on the Partnership's assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) to use assets of the Partnership (including, without limitation, cash on hand) for any purpose consistent with this Agreement, including, without limitation, payment, either directly or by reimbursement, of all operating costs and general administrative expenses of the General Partner, the Partnership or any Subsidiary of either, to the Investment Manager, to third parties or to the General Partner as set forth in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) to lease all or any portion of any of the Partnership's assets, whether or not any portion of the Partnership's assets so leased are to be occupied by the lessee, or, in turn, subleased in whole or in part to others, for such consideration and on such terms as the General Partner may determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) to prosecute, defend, arbitrate, or compromise any and all claims or liabilities in favor of or against the Partnership, on such terms and in such manner as the General Partner may reasonably determine, and similarly to prosecute, settle or defend litigation, including in all such legal proceedings, administrative proceedings, arbitrations or other forms of dispute resolutions, with respect to the Partners, the Partnership, or the Partnership's assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) to file applications, communicate, and otherwise deal with any and all governmental agencies having jurisdiction over, or in any way affecting, the Partnership's assets or any other aspect of the Partnership business, including the registration of any class or series of the Partnership Units under the Securities Act or the Securities Exchange Act of 1934, as amended, and the listing of any debt securities of the Partnership on any securities exchange or trading forum;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) to make or revoke any election permitted or required of the Partnership by any taxing authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) to maintain such insurance coverage for public liability, fire and casualty, and any and all other insurance for the protection of the Partnership, for the conservation of Partnership assets, or for any other purpose convenient or beneficial to the Partnership, in such amounts and such types, as the General Partner shall determine from time to time;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) to determine whether or not to apply any insurance proceeds for any Property to the restoration of such Property or to distribute the same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) to establish one or more divisions of the Partnership, to hire and dismiss employees of the Partnership or any division of the Partnership, and to retain legal counsel, accountants, consultants, real estate brokers, and such other Persons, as the General Partner may deem necessary or appropriate in connection with the Partnership business and to pay therefor such remuneration as the General Partner may deem reasonable and proper;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) to retain other services of any kind or nature in connection with the Partnership business, and to pay therefor such remuneration as the General Partner may deem reasonable and proper;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) to negotiate and conclude agreements on behalf of the Partnership with respect to any of the rights, powers and authority conferred upon the General Partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) to maintain accurate accounting records and to file all federal, state and local income tax returns on behalf of the Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) to distribute Partnership cash or other Partnership assets in accordance with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) to form or acquire an interest in, and contribute property to, any further limited or general partnerships, joint ventures or other relationships that the General Partner deems desirable (including, without limitation, the acquisition of interests in, and the contributions of Property to, its Subsidiaries and any other Person in which it has an equity interest from time to time);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) to establish Partnership reserves for working capital, capital expenditures, contingent liabilities, or any other valid Partnership purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) to merge, consolidate or combine the Partnership with or into another Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxii) to do any and all acts and things necessary or prudent to ensure that the Partnership will not be classified as a "publicly traded partnership" for purposes of Section 7704 of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii) the exercise of any of the powers of the General Partner enumerated in this Agreement on behalf of or in connection with any Subsidiary of the Partnership, or any other Person in which the Partnership has a direct or indirect interest pursuant to contractual or other arrangements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv) to take such other action, execute, acknowledge, swear to or deliver such other documents and instruments, and perform any and all other acts that the General Partner deems necessary or appropriate for the formation, continuation and conduct of the business and affairs of the Partnership (including, without limitation, all actions consistent with allowing the General Partner at all times to qualify as a REIT unless the General Partner voluntarily terminates its REIT status) and to possess and enjoy all of the rights and powers of a general partner as provided by the Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise provided herein, to the extent the duties of the General Partner require expenditures of funds to be paid to third parties, the General Partner shall not have any obligations hereunder except to the extent that Partnership funds are reasonably available to it for the performance of such duties, and nothing herein contained shall be deemed to authorize or require the General Partner, in its capacity as such, to expend its individual funds for payment to third parties or to undertake any individual liability or obligation on behalf of the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In exercising its authority under this Agreement, the General Partner may, but shall be under no obligation to, take into account the tax consequences to any Partner of any action taken (or not taken) by it, but shall be obligated to take such action as is necessary to ensure satisfaction by it of the REIT Requirements with respect to the General Partner. To the fullest extent permitted by law, the General Partner and the Partnership shall not have liability to a Limited Partner under any circumstances as a result of any income tax liability incurred by such Limited Partner as a result of an action (or inaction) by the General Partner pursuant to its authority under this Agreement. Notwithstanding the foregoing, in connection with the acquisition of properties from persons to whom the Partnership issues Partnership Interests as part of the purchase price, in order to preserve such persons' tax deferral, the Partnership may contractually agree not to sell or otherwise transfer the properties for a specified period of time, or in some instances, not to sell or otherwise transfer the properties without compensating the sellers of the Properties for their loss of the tax deferral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2. <u>Delegation of Authority</u>**. The General Partner may delegate any or all of its powers, rights and obligations hereunder to any Person, and may appoint, employ, contract or otherwise deal with any Person for the transaction of the business of the Partnership, which Person (which may include the Investment Manager) may, under supervision of the General Partner, perform any acts or services for the Partnership as the General Partner may approve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3. <u>Indemnification and Exculpation of Indemnitees</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the fullest extent permitted by law, the Partnership shall indemnify and hereby agrees to indemnify and hold harmless an Indemnitee from and against any and all losses, claims, damages, liabilities, joint or several, costs and expenses (including reasonable legal fees and expenses), judgments, fines, settlements, penalties and other amounts arising from any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative, of any nature whatsoever, known or unknown, liquidated or unliquidated, that are incurred by any Indemnitee and that relate to the operations of the Partnership as set forth in this Agreement in which any Indemnitee may be involved, or is threatened to be involved, as a party or otherwise, unless it is established that: (i) the act or omission of the Indemnitee was material to the matter giving rise to the proceeding and constituted willful misconduct or gross negligence; (ii) the Indemnitee actually received an improper personal benefit in money, property or services; or (iii) in the case of any criminal proceeding, the Indemnitee had reasonable cause to believe that the act or omission was unlawful. The termination of any proceeding by settlement, judgment, order or upon a plea of nolo contendere or its equivalent shall not, of itself, create a presumption that an

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Indemnitee did not act in good faith and in a manner that the Indemnitee believed to be in or not opposed to the best interests of the Partnership or that the Indemnitee's conduct constituted fraud, willful misconduct, gross negligence, a material breach of this Agreement, a breach of its fiduciary duty or, with respect to any criminal action or proceeding, an Indemnitee had no reasonable cause to believe his conduct was unlawful. Any indemnification pursuant to this Section 6.3 shall be made only out of the assets of the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Partnership shall reimburse an Indemnitee for reasonable expenses incurred by an Indemnitee who is a party to a proceeding in advance of the final disposition of the proceeding upon receipt by the Partnership of (i) a written affirmation by the Indemnitee of the Indemnitee's good faith belief that the standard of conduct necessary for indemnification by the Partnership as authorized in this Section 6.3 has been met, and (ii) a written undertaking by or on behalf of the Indemnitee to repay the amount if it shall ultimately be determined that the standard of conduct has not been met.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The indemnification provided by this Section 6.3 shall be in addition to any other rights to which an Indemnitee or any other Person may be entitled under any agreement, pursuant to any vote of the Partners, as a matter of law or otherwise, and shall continue as to an Indemnitee who has ceased to serve in such capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Partnership may, but shall not be obligated to, purchase and maintain insurance, on behalf of the Indemnitees and such other Persons as the General Partner shall determine, against any liability that may be asserted against or expenses that may be incurred by such Person in connection with the Partnership's activities, regardless of whether the Partnership would have the power to indemnify such Person against such liability under the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) For purposes of this Section 6.3, the Partnership shall be deemed to have requested an Indemnitee to serve as fiduciary of an employee benefit plan whenever the performance by it of its duties to the Partnership also imposes duties on, or otherwise involves services by, it to the plan or participants or beneficiaries of the plan; excise taxes assessed on an Indemnitee with respect to an employee benefit plan pursuant to applicable law shall constitute fines within the meaning of this Section 6.3; and actions taken or omitted by the Indemnitee with respect to an employee benefit plan in the performance of its duties for a purpose reasonably believed by it to be in the interest of the participants and beneficiaries of the plan shall be deemed to be for a purpose which is not opposed to the best interests of the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In no event may an Indemnitee subject the Limited Partners to personal liability by reason of the indemnification provisions set forth in this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) An Indemnitee shall not be denied indemnification in whole or in part under this Section 6.3 because the Indemnitee had an interest in the transaction with respect to which the indemnification applies if the transaction was otherwise permitted by the terms of this Agreement and the Declaration of Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The provisions of this Section 6.3 are for the benefit of the Indemnitees, their heirs, successors, assigns and administrators and shall not be deemed to create any rights for the benefit of any other Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.4. <u>Liability and Obligations of the General Partner</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything to the contrary set forth in this Agreement, the General Partner shall not be liable for monetary damages to the Partnership or any Partners for losses sustained or liabilities incurred as a result of errors in judgment or of any act or omission not amounting to willful misconduct or gross negligence. The General Partner shall not be in breach of any duty that the General Partner may owe to the Limited Partners or the Partnership or any other Persons under this Agreement or of any duty stated or implied by law or equity provided the General Partner, acting in good faith, abides by the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Limited Partners expressly acknowledge that the General Partner is acting on behalf of the Partnership, itself and its stockholders collectively, and that neither the General Partner nor its Trustee is under any obligation to consider the separate interests of the Limited Partners (including, without limitation, the tax consequences to Limited Partners or the tax consequences of some, but not all, of the Limited Partners) in deciding whether to cause the Partnership to take (or decline to take) any actions. In the event of a conflict between the interests of its stockholders on one hand and the Limited Partners on the other, the General Partner shall endeavor in good faith to resolve the conflict in a manner not adverse to either its stockholders or the Limited Partners; provided, however, that for so long as the General Partner directly owns a controlling interest in the Partnership, any such conflict that the General Partner, in its sole and absolute discretion, determines cannot be resolved in a manner not adverse to either its stockholders or the Limited Partner shall be resolved in favor of the stockholders. The General Partner shall not be liable for monetary damages for losses sustained, liabilities incurred, or benefits not derived by Limited Partners in connection with such decisions, provided that the General Partner has acted in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to its obligations and duties as General Partner set forth in Section 6.1 hereof, the General Partner may exercise any of the powers granted to it under this Agreement and perform any of the duties imposed upon it hereunder either directly or by or through its agents. The General Partner shall not be responsible for any misconduct or negligence on the part of any such agent appointed by it in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding any other provisions of this Agreement or the Act, any action of the General Partner on behalf of the Partnership or any decision of the General Partner to refrain from acting on behalf of the Partnership, undertaken in the good faith belief that such action or omission is necessary or advisable in order (i) to protect the ability of the General Partner to continue to qualify as a REIT and as a domestically controlled qualified investment entity within the meaning of Section 897(h)(4) of the Code and to continue to not be treated as a "pension held REIT" within the meaning of Section 856(h) or the Partnership to be taxed as a partnership, (ii) to prevent the General Partner from incurring any taxes under Section 857, Section 4981, or any other provision of the Code, (iii) to ensure that the Partnership will not be classified as a "publicly traded partnership" under Section 7704 of the Code, (iv) for the General Partner to otherwise satisfy the REIT Requirements or the Partnership to satisfy the "qualifying income" requirement of Code

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Section 7704(c) or (v) for any Affiliate to continue to qualify as a "qualified REIT subsidiary" within the meaning of Code Section 956(i)(2), is expressly authorized under this Agreement and is deemed approved by all of the Limited Partners (including, without limitation, making prepayments on loans and borrowing money to permit the Partnership to make distributions to the Partners in such amounts as will permit the General Partner to prevent the imposition of any federal income tax on General Partner (including, for this purpose, any excise tax pursuant to Code Section 4981), to make distributions to its stockholders and payments to any taxing authority sufficient to permit the General Partner to maintain REIT status or otherwise to satisfy the REIT Requirements).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any amendment, modification or repeal of this Section 6.4 or any provision hereof shall be prospective only and shall not in any way affect the limitations on the General Partner's liability to the Partnership and the Limited Partners under this Section 6.4 as in effect immediately prior to such amendment, modification or repeal with respect to matters occurring, in whole or in part, prior to such amendment, modification or repeal, regardless of when claims relating to such matters may arise or be asserted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5. <u>Reimbursement of General Partner</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as provided in this Section 6.5 and elsewhere in this Agreement (including the provisions of Articles 5 and 6 regarding distributions, payments, and allocations to which it may be entitled), the General Partner shall not be compensated for its services as general partner of the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The General Partner shall be reimbursed on a monthly basis, or such other basis as the General Partner may determine in its sole and absolute discretion, for all Administrative Expenses incurred by the General Partner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.6. <u>Outside Activities</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Section 6.7 hereof, the Declaration of Trust and any agreements entered into by the General Partner or its Affiliates with the Partnership or any of its Subsidiaries, any trustee, officer, director, employee, agent, trustee, Affiliate or stockholder of the General Partner shall be entitled to and may have, directly or indirectly, business interests and engage in business activities in addition to those relating to the Partnership, including business interests and activities substantially similar or identical to those of the Partnership. Neither the Partnership nor any of the Limited Partners shall have any rights by virtue of this Agreement in any such business ventures, interests or activities. None of the Limited Partners nor any other Person shall have any rights by virtue of this Agreement or the partnership relationship established hereby in any such business ventures, interests or activities, and the General Partner shall have no obligation pursuant to this Agreement to communicate or offer any opportunities or interest in any such business ventures, interests and activities to the Partnership or any Limited Partner, even if such opportunity is of a character which, if presented to the Partnership or any Limited Partner, could be taken by such Person, even if it may raise a conflict of interest with the Limited Partners or the Partnership. The General Partner will not be liable for breach of any fiduciary or other duty by reason of the fact that such party pursues or acquires for, or directs such opportunity or interest to another Person or does not communicate or offer such opportunity or interest to the Partnership.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Limited Partner shall, by reason of being a Limited Partner in the Partnership, have any right to participate in any manner in any profits or income earned or derived by or accruing to the General Partner and its respective Affiliates, or the respective members, partners, officers, trustees, directors, employees, stockholders, agents or representatives thereof from the conduct of any business other than the business of the Partnership or from any transaction in instruments effected by the General Partner and its Affiliates or the respective members, partners, stockholders, officers, trustees, directors, employees or agents thereof for any account other than that of the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.7. <u>Transactions With Affiliates</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Affiliate of the General Partner or the Investment Manager may be employed or retained by the Partnership and may otherwise deal with the Partnership (whether as a buyer, lessor, lessee, manager, furnisher of goods or services, broker, agent, lender or otherwise) and may receive from the Partnership any compensation, price, or other payment therefor which the General Partner determines to be fair and reasonable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Partnership may lend or contribute to its Subsidiaries or other Persons in which it has an equity investment, and such Persons may borrow funds from the Partnership, on terms and conditions established in the sole and absolute discretion of the General Partner. The foregoing authority shall not create any right or benefit in favor of any Subsidiary or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Partnership may transfer assets to Joint Ventures, other partnerships, corporations or other business entities in which it is or thereby becomes a participant, and in which any of its Affiliates may or may not be a participant, upon such terms and subject to such conditions as the General Partner deems are consistent with this Agreement, applicable law, the Declaration of Trust, the Investment Management Agreement, the investment guidelines and policies as established from time to time by the General Partner and the REIT status of the General Partner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except as expressly permitted by this Agreement, neither the General Partner nor any of its Affiliates shall sell, transfer or convey any property to, or purchase any property from, the Partnership, directly or indirectly, except pursuant to transactions that are, in the General Partner's sole discretion, on terms that are fair and reasonable to the Partnership and in compliance with the Declaration of Trust, the Investment Management Agreement and the investment guidelines and policies as established from time to time by the General Partner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.8. <u>Title to Partnership Assets</u>**. Title to Partnership assets, whether real, personal or mixed and whether tangible or intangible, shall be deemed to be owned by the Partnership as an entity, and no Partner, individually or collectively, shall have any ownership interest in such Partnership assets or any portion thereof. Title to any or all of the Partnership assets may be held in the name of the Partnership, the General Partner or one or more nominees, as the General Partner may determine, including Affiliates of the General Partner. The General Partner hereby declares and warrants that any Partnership assets for which legal title is held in the name of the General Partner or any nominee or Affiliate of the General Partner shall be held by the General Partner for the use and benefit of the Partnership in accordance with the provisions of this Agreement; provided, however, that the General Partner shall use its best efforts to cause beneficial and record title to such assets to be vested in the Partnership as soon as reasonably practicable. All Partnership assets shall be recorded as the property of the Partnership in its books and records, irrespective of the name in which legal title to such Partnership assets is held.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.9. <u>Repurchases of REIT Shares</u>**. If the General Partner repurchases or redeems any REIT Shares (other than REIT Shares repurchased with proceeds received from the issuance of other REIT Shares), then the General Partner shall cause the Partnership to purchase from the General Partner an equal number of Partnership Units on the same terms that the General Partner repurchased such REIT Shares (including any applicable discount to Net Asset Value).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.10. <u>No Duplication of Fees or Expenses</u>**. The Partnership may not incur or be responsible for any fee or expense (in connection with the Private Placement, any Public Offering or otherwise) that would be duplicative of fees and expenses paid by the General Partner.

**ARTICLE 7** 

**<u>CHANGES IN GENERAL PARTNER</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1. <u>Transfer of the General Partner</u><u>'</u><u>s Partnership Interest</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The General Partner shall not Transfer all or any portion of its General Partnership Interest or withdraw as General Partner except as provided in, or in connection with a transaction contemplated by, Section 7.1(b), (c) or (d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise provided in this Section 7.1 or Section 7.4 hereof, the General Partner shall not engage in any merger, consolidation or other combination with or into another Person or sale of all or substantially all of its assets (other than in connection with a change in the General Partner's state of incorporation or organizational form), in each case which results in a change of control of the General Partner (a "Transaction"), unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the consent of Limited Partners holding more than 50% of the Percentage Interests of the Limited Partners is obtained; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) as a result of such Transaction all Limited Partners will receive for each Partnership Unit an amount of cash, securities, or other property equal to the greatest amount of cash, securities or other property paid in the Transaction to a holder of one REIT Share in consideration of such REIT Share; provided that if, in connection with the Transaction, a purchase, tender or exchange offer ("Offer") shall have been made to and accepted by the holders of more than 50% of the outstanding REIT Shares, each holder of Partnership Units shall be given the option to exchange its Partnership Units for the greatest amount of cash, securities, or other property which a Limited Partner holding Partnership Units would have received had it (1) exercised its Redemption Right and (2) sold, tendered or exchanged pursuant to the Offer the REIT Shares received upon exercise of the Redemption Right immediately prior to the expiration of the Offer; or the General Partner is the surviving entity in the Transaction and either (A) the holders of REIT Shares do not receive cash, securities, or other property in the Transaction or (B) all Limited Partners receive in exchange for their Partnership Units, an amount of cash, securities, or other property (expressed as an amount per REIT Share) that is no less than the greatest amount of cash, securities, or other property (expressed as an amount per REIT Share) received in the Transaction by any holder of REIT Shares.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding Section 7.1(b), the General Partner may merge with or into or consolidate with another entity if immediately after such merger or consolidation (i) substantially all of the assets of the successor or surviving entity (the "Survivor"), other than Partnership Units held by the General Partner, are contributed, directly or indirectly, to the Partnership as a Capital Contribution in exchange for Partnership Units with a fair market value equal to the value of the assets so contributed as determined by the Survivor in good faith and (ii) the Survivor expressly agrees to assume all obligations of the General Partner, as appropriate, hereunder. Upon such contribution and assumption, the Survivor shall have the right and duty to amend this Agreement as set forth in this Section 7.1(c). The Survivor shall in good faith arrive at a new method for the calculation of the Cash Amount and the REIT Shares Amount after any such merger or consolidation so as to approximate the existing method for such calculation as closely as reasonably possible. Such calculation shall take into account, among other things, the kind and amount of securities, cash and other property that was receivable upon such merger or consolidation by a holder of REIT Shares or options, warrants or other rights relating thereto, and which a holder of Partnership Units could have acquired had such Partnership Units been exchanged immediately prior to such merger or consolidation. Such amendment to this Agreement shall provide for adjustment to such method of calculation, which shall be as nearly equivalent as may be practicable to the adjustments provided for in Section 4.2(a)(ii). The Survivor also shall in good faith modify the definition of REIT Shares and make such amendments to Section 8.5 so as to approximate the existing rights and obligations set forth in Section 8.5 as closely as reasonably possible. The above provisions of this Section 7.1(c) shall similarly apply to successive mergers or consolidations permitted hereunder.

In respect of any transaction described in the preceding paragraph, the General Partner is required to use its commercially reasonable efforts to structure such transaction to avoid causing the Limited Partners to recognize a gain for federal income tax purposes by virtue of the occurrence of or their participation in such transaction, provided such efforts are consistent with the exercise of the Trustee's duties to the stockholders of the General Partner under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding Section 7.1(b), a General Partner may Transfer all or any portion of its General Partnership Interest to (A) a wholly-owned Subsidiary of such General Partner or (B) the owner of all of the ownership interests of such General Partner, and following a Transfer of all of its General Partnership Interest, may withdraw as General Partner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.2. <u>Admission of a Substitute or Additional General Partner</u>**. A Person shall be admitted as a substitute or additional General Partner of the Partnership only if the following terms and conditions are satisfied:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Person to be admitted as a substitute or additional General Partner shall have accepted and agreed to be bound by all the terms and provisions of this Agreement by executing a counterpart thereof and such other documents or instruments as may be required or appropriate in order to effect the admission of such Person as a General Partner, and a certificate evidencing the admission of such Person as a General Partner shall have been filed for recordation and all other actions required by Section 2.5 in connection with such admission shall have been performed;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the Person to be admitted as a substitute or additional General Partner is a corporation or a partnership it shall have provided the Partnership with evidence satisfactory to counsel for the Partnership of such Person's authority to become a General Partner and to be bound by the terms and provisions of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) counsel for the Partnership shall have rendered an opinion (relying on such opinions from other counsel and the state or any other jurisdiction as may be necessary) that (x) the admission of the Person to be admitted as a substitute or additional General Partner is in conformity with the Act and (y) none of the actions taken in connection with the admission of such Person as a substitute or additional General Partner will cause (i) the Partnership to be classified other than as a partnership for federal tax purposes, or (ii) the loss of any Limited Partner's limited liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.3. <u>Effect of Bankruptcy, Withdrawal, Death or Dissolution of the sole remaining General Partner</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon the occurrence of an Event of Bankruptcy as to the sole remaining General Partner (and its removal pursuant to Section 7.4(a)) or the death, withdrawal, removal or dissolution of the sole remaining General Partner (except that, if the sole remaining General Partner is on the date of such occurrence a partnership, the withdrawal, death, dissolution, Event of Bankruptcy as to, or removal of a partner in, such partnership shall be deemed not to be a dissolution of such General Partner if the business of such General Partner is continued by the remaining partner or partners), the Partnership shall be dissolved and terminated unless the Partnership is continued pursuant to Section 7.3(b). The merger of the General Partner with or into any entity that is admitted as a substitute or successor General Partner pursuant to Section 7.2 shall not be deemed to be the withdrawal, dissolution or removal of the General Partner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Following the occurrence of an Event of Bankruptcy as to the sole remaining General Partner (and its removal pursuant to Section 7.4(a) hereof) or the death, withdrawal, removal or dissolution of the sole remaining General Partner (except that, if the sole remaining General Partner is, on the date of such occurrence, a partnership, the withdrawal of, death, dissolution, Event of Bankruptcy as to, or removal of a partner in, such partnership shall be deemed not to be a dissolution of such General Partner if the business of such General Partner is continued by the remaining partner or partners), the Limited Partners, within 90 days after such occurrence, may elect to continue the business of the Partnership by selecting, subject to Section 7.2 and any other provisions of this Agreement, a substitute General Partner by consent of the Limited Partners holding a majority of the Percentage Interests of all Limited Partners. If the Limited Partners elect to continue the business of the Partnership and admit a substitute General Partner, the relationship with the Partners and of any Person who has acquired a Partnership Interest of a Partner in the Partnership shall be governed by this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.4. <u>Removal of a General Partner</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon the occurrence of an Event of Bankruptcy as to, or the dissolution of, a General Partner, such General Partner shall be deemed to be removed automatically; *provided, however*, that if a General Partner is on the date of such occurrence a partnership, the withdrawal, death or dissolution of, Event of Bankruptcy as to, or removal of, a partner in, such partnership shall be deemed not to be a dissolution of the General Partner if the business of such General Partner is continued by the remaining partner or partners. The Limited Partners may not remove the General Partner, with or without cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If a General Partner has been removed pursuant to this Section 7.4 and the Partnership is continued pursuant to Section 7.3, such General Partner shall promptly Transfer and assign its General Partnership Interest in the Partnership to the substitute General Partner approved by the Limited Partners in accordance with Section 7.3(b) and otherwise admitted to the Partnership in accordance with Section 7.2. At the time of assignment, the removed General Partner shall be entitled to receive from the substitute General Partner the fair market value of the General Partnership Interest of such removed General Partner as reduced by any damages caused to the Partnership by such General Partner. Such fair market value shall be determined by an appraiser mutually agreed upon by the General Partner and the Limited Partners holding a majority of the Percentage Interests of all Limited Partners within 10 days following the removal of the General Partner. If the parties are unable to agree upon an appraiser, the removed General Partner and the Limited Partners holding a majority of the Percentage Interests of all Limited Partners each shall select an appraiser. Each such appraiser shall complete an appraisal of the fair market value of the removed General Partner's General Partnership Interest within 30 days of the General Partner's removal, and the fair market value of the removed General Partner's General Partnership Interest shall be the average of the two appraisals; provided, however, that if the higher appraisal exceeds the lower appraisal by more than 20% of the amount of the lower appraisal, the two appraisers, no later than 40 days after the removal of the General Partner, shall select a third appraiser who shall complete an appraisal of the fair market value of the removed General Partner's General Partnership Interest no later than 60 days after the removal of the General Partner. In such case, the fair market value of the removed General Partner's General Partnership Interest shall be the average of the two appraisals closest in value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The General Partnership Interest of a removed General Partner, during the time after default until Transfer under Section 7.4(b), shall be converted to that of a special Limited Partner; *provided, however*, such removed General Partner shall not have any rights to participate in the management and affairs of the Partnership, and shall not be entitled to any portion of the income, expense, profit, gain or loss allocations or cash distributions allocable or payable, as the case may be, to the Limited Partners. Instead, such removed General Partner shall receive and be entitled only to retain distributions or allocations of such items that it would have been entitled to receive in its capacity as General Partner, until the Transfer is effective pursuant to Section 7.4(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All Partners shall have given and hereby do give such consents, shall take such actions and shall execute such documents as shall be legally necessary, desirable and sufficient to effect all the foregoing provisions of this Section.

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**ARTICLE 8** 

**<u>RIGHTS AND OBLIGATIONS OF THE LIMITED PARTNERS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1. <u>Management of the Partnership</u>**. The Limited Partners shall not participate in the management or control of Partnership business nor shall they transact any business for the Partnership, nor shall they have the power to sign for or bind the Partnership, such powers being vested solely and exclusively in the General Partner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2. <u>Power of Attorney</u>**. Each Limited Partner hereby irrevocably appoints the General Partner its true and lawful attorney-in-fact, who may act for each Limited Partner and in its name, place and stead, and for its use and benefit, to sign, acknowledge, swear to, deliver, file or record, at the appropriate public offices, any and all documents, certificates, and instruments as may be deemed necessary or desirable by the General Partner to carry out fully the provisions of this Agreement and the Act in accordance with their terms, which power of attorney is coupled with an interest and shall survive the death, dissolution or legal incapacity of the Limited Partner, or the Transfer by the Limited Partner of any part or all of its Partnership Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3. <u>Limitation on Liability of Limited Partners</u>**. No Limited Partner shall be liable for any debts, liabilities, contracts or obligations of the Partnership. A Limited Partner shall be liable to the Partnership only to make payments of its Capital Contribution, if any, as and when due hereunder. After its Capital Contribution is fully paid, no Limited Partner shall, except as otherwise required by the Act, be required to make any further Capital Contributions or other payments or lend any funds to the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4. <u>Ownership by Limited Partner of Corporate General Partner or Affiliate</u>**. No Limited Partner shall at any time, either directly or indirectly, own any shares of beneficial interest or other interest in the General Partner or in any Affiliate thereof, if such ownership by itself or in conjunction with other stock or other interests owned by other Limited Partners would, in the opinion of counsel for the Partnership, jeopardize the classification of the Partnership as a partnership for federal tax purposes. The General Partner shall be entitled to make such reasonable inquiry of the Limited Partners as is required to establish compliance by the Limited Partners with the provisions of this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.5. <u>Redemption Right</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to this Section 8.5 and the provisions of any agreements between the Partnership and one or more Limited Partners with respect to Partnership Units held by them, each Limited Partner other than the General Partner, after holding any Partnership Units for at least one year (or such shorter period as consented to by the General Partner in its sole discretion), shall have the right (subject to the terms and conditions set forth herein) to require the Partnership to redeem (a "Redemption") all or a portion of such Partnership Units (the "Tendered Units") in exchange (a "Redemption Right") for REIT Shares issuable on, or the Cash Amount payable on, the Specified Redemption Date, as determined by the General Partner in its sole discretion. Any Redemption Right shall be exercised pursuant to a Notice of Redemption delivered to the Partnership (with a copy to the General Partner) by the Limited Partner exercising the Redemption Right (the "Tendering Party"). A Tendering Party shall be deemed to have offered to sell the Tendered Units described in the Notice of Redemption to the General Partner and the General Partner may, in its sole and absolute discretion, elect to purchase directly and acquire such Tendered Units by paying to the Tendering Party either the Cash Amount or the REIT Shares Amount. Within 15 days of receipt of a Notice of Redemption, the Partnership will send to the

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Limited Partner submitting the Notice of Redemption a response stating whether the General Partner has determined the applicable Partnership Units will be redeemed for REIT Shares or the Cash Amount or partially for REIT Shares and partially for a Cash Amount. In either case, the Limited Partner shall be entitled to withdraw the Notice of Redemption if (i) it provides notice to the Partnership that it wishes to withdraw the request and (ii) the Partnership receives the notice no less than two business days prior to the Specified Redemption Date. Notwithstanding the foregoing, the Investment Manager (and its assignees) shall have the right to require the Partnership to redeem all or a portion of its Partnership Units pursuant to this Section 8.5 at any time irrespective of the period the Partnership Units have been held by the Investment Manager or its assignees. The Partnership shall redeem any such Partnership Units of the Investment Manager (or their assignees) for the Cash Amount unless the Trustee of the General Partner determines that any such redemption for cash would be prohibited by applicable law or this Agreement, in which case such Partnership Units will be redeemed for an amount of REIT Shares with an aggregate Net Asset Value equivalent to the aggregate Net Asset Value of such Partnership Units.

No Limited Partner, other than the Investment Manager and its assignees, may deliver more than two Notices of Redemption during each calendar year. A Limited Partner other than the Investment Manager and its assignees, may not exercise the Redemption Right for less than 1,000 Partnership Units or, if such Limited Partner holds less than 1,000 Partnership Units, all of the Partnership Units held by such Partner. The Tendering Party shall have no right, with respect to any Partnership Units so redeemed, to receive any distribution paid with respect to Partnership Units if the record date for such distribution is on or after the Specified Redemption Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the General Partner elects to assume the obligation from the Partnership to redeem Tendered Units and agrees to acquire the Tendered Units for REIT Shares rather than cash, then the Partnership shall direct the General Partner to issue and deliver such REIT Shares to the Tendering Party pursuant to the terms set forth in this Section 8.5(b), in which case, (i) the General Partner, acting as a distinct legal entity, shall assume directly the obligation with respect thereto and shall satisfy the Tendering Party's exercise of its Redemption Right, and (ii) such transaction shall be treated, for federal income tax purposes, as a Transfer by the Tendering Party of such Tendered Units to the General Partner in exchange for REIT Shares. The percentage of the Tendered Units tendered for Redemption by the Tendering Party for which the General Partner elects to issue REIT Shares (rather than the Cash Amount) is referred to as the "Applicable Percentage." In making such election to acquire Tendered Units, the Partnership shall act in a fair, equitable and reasonable manner that neither prefers one group or class of Limited Partners over another nor discriminates against a group or class of Limited Partners. If the General Partner elects to redeem any number of Tendered Units for REIT Shares rather than the Cash Amount, on the Specified Redemption Date, the Tendering Party shall sell such number of the Tendered Units to the General Partner in exchange for a number of REIT Shares equal to the product of the REIT Shares Amount and the Applicable Percentage. The product of the Applicable Percentage and the REIT Shares Amount, if applicable, shall be delivered by the General Partner as duly authorized, validly issued, fully paid and non-assessable REIT Shares free of any pledge, lien, encumbrance or restriction, other than the Aggregate Share Ownership Limit (as calculated in accordance with the Declaration of Trust) and other restrictions provided in the Declaration of Trust, the Securities Act and relevant state securities or "blue sky" laws. Notwithstanding the provisions of Section 8.5(a) and this Section 8.5(b), the Tendering Parties shall have no rights under this Agreement that would otherwise be prohibited under the Declaration of Trust.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In connection with an exercise of Redemption Rights pursuant to this Section 8.5, the Tendering Party shall submit the following to the General Partner, in addition to the Notice of Redemption:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A written affidavit, dated the same date as the Notice of Redemption, (a) disclosing the actual and constructive ownership, as determined for purposes of Code Sections 856(a)(6) and 856(h), of REIT Shares by (i) such Tendering Party and (ii) any Related Party and (b) representing that, after giving effect to the Redemption, neither the Tendering Party nor any Related Party will own REIT Shares in excess of the Aggregate Share Ownership Limit or the Common Share Ownership Limit (or, if applicable the Excepted Holder Limit);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) A written representation that neither the Tendering Party nor any Related Party has any intention to acquire any additional REIT Shares prior to the closing of the Redemption on the Specified Redemption Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) An undertaking to certify, at and as a condition to the closing of the Redemption on the Specified Redemption Date, that either (a) the actual and constructive ownership of REIT Shares by the Tendering Party and any Related Party remain unchanged from that disclosed in the affidavit required by Section 8.5(c)(1) or (b) after giving effect to the Redemption, neither the Tendering Party nor any Related Party shall own REIT Shares in violation of the Aggregate Share Ownership Limit (or, if applicable, the Excepted Holder Limit); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any other documents as the General Partner may reasonably require.

The General Partner, in its sole discretion, may waive any representation or certification required by the Notice of Redemption or any other document or documents provided by the Tendering Party pursuant to this Section 8.5(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any Cash Amount to be paid to a Tendering Party pursuant to this Section 8.5 shall be paid on the Specified Redemption Date; *provided, however*, that the General Partner may elect to cause the Specified Redemption Date to be delayed for up to an additional 180 days to the extent required for the General Partner to cause additional REIT Shares to be issued or to take other actions necessary to provide financing to be used to make such payment of the Cash Amount. Notwithstanding the foregoing, the General Partner agrees to commercially reasonable efforts to cause the closing of the acquisition of Tendered Units hereunder to occur as quickly as reasonably possible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding any other provision of this Agreement, the General Partner shall place appropriate restrictions on the ability of the Limited Partners to exercise their Redemption Rights to prevent, among other things, (a) any person from owning shares in excess of the Common Share Ownership Limit, the Aggregate Share Ownership Limit and the Excepted Holder Limit or the General Partner failing to qualify as a domestically controlled qualified investment entity, (b) the General Partner's shares of beneficial interest from being owned by less than 100 persons, (c) the General Partner from being "closely held" within the meaning of Section 856(h)

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of the Code, (d) as and if deemed necessary to ensure that the Partnership does not constitute a "publicly traded partnership" under Section 7704 of the Code, (d) the Partnership's assets being considered "plan assets" with the meaning of ERISA or any regulations proposed or promulgated thereunder, (e) the violation of the Securities Act or other comparable state law, (f) the registration of the Partnership as an investment company under the Investment Company Act, (g) the registration of the Partnership, the General Partner or any Affiliate thereof (that is not already registered as an investment adviser under the Advisers Act) as an investment adviser under the Advisers Act, (h) the termination of the Partnership's status as a partnership for tax purposes, (i) the violation of any law, rule, regulation by such Limited Partner, the Partnership, the General Partner and their respective officers, directors, employers, shareholders, partners, members or any Affiliate thereof, and (j) a non-exempt prohibited transaction under ERISA. If and when the General Partner determines that imposing such restrictions is necessary, the General Partner shall give prompt written notice thereof to each of the Limited Partners holding Partnership Units, which notice shall be accompanied by a copy of an opinion of counsel to the Partnership which states that, in the opinion of such counsel, restrictions are necessary in order to avoid the foregoing, as applicable. In addition to any other appropriate restrictions placed by the General Partner pursuant to this Section 8.5(e), no Tendering Party (including, without limitation, the Investment Manager and its Affiliates) shall be entitled to consummate a Redemption if the ownership of or delivery of REIT Shares to such Tendering Party on the Specified Redemption Date by the General Partner would (i) cause the occurrence of any of the circumstances described in clauses (a) through (d) of the first sentence of this Section 8.5(e), (ii) cause the General Partner to own, actually or constructively, 10% or more of the ownership interests in a tenant (other than a tenant that is a "taxable REIT subsidiary" (as defined in Section 856(l) of the Code)) of the General Partner's, the Partnership's or a Subsidiary's real property, within the meaning of Section 856(d)(2)(B) of the Code, or (iii) otherwise cause the General Partner to fail to qualify as a REIT under the Code, including, but not limited to, as a result of any "eligible independent contractor" (as defined in Section 856(d)(9)(A) of the Code) that operates a "qualified lodging facility" (as defined in Section 856(d)(9)(D) of the Code) or a "qualified health care property" (as defined in Section 856(e)(6)(D)(i) of the Code) on behalf of a "taxable REIT subsidiary" (as defined in Section 856(l) of the Code) failing to qualify as such. The General Partner, in its sole and absolute discretion, may waive the restriction on redemption set forth in this Section 8.5(e), provided that the Tendering Party has submitted such information, certification or affidavit as the General Partner may reasonably require in connection with the application of the restrictions described in this Section 8.5(e). To the extent any attempted Redemption or exchange for REIT Shares would be in violation of this Section 8.5(e), it shall be null and void ab initio and such Tendering Party shall not acquire any rights or economic interest in any Cash Amount otherwise payable upon such Redemption or the REIT Shares otherwise issuable upon such exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) A redemption fee may be charged (other than to the Investment Manager or its Affiliates or their assignees) in connection with an exercise of Redemption Rights pursuant to this Section 8.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The General Partner, in its sole discretion, may require a Limited Partner to surrender all or any portion of its Partnership Units and withdraw from the Partnership to the extent such redemption is in the best interest of the Partnership, as determined by the General Partner in good faith at any time for any reason or no reason with or without prior notice to such Limited Partner. A notice of mandatory redemption pursuant to this Section 8.5(g) shall have the same effect as a request for redemption by a Limited Partner given pursuant to Section 8.5(a) through (h); provided, that the mandatory redemption of all or any portion of such Limited Partner's Partnership Units shall be effective on the date determined by the General Partner and indicated in such notice.

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**ARTICLE 9** 

**<u>TRANSFERS OF LIMITED PARTNERSHIP INTERESTS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1. <u>Purchase for Investment</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Limited Partner hereby represents and warrants to the General Partner and to the Partnership that the acquisition of its Partnership Interest is made as a principal for its account for investment purposes only and not with a view to the resale or distribution of such Partnership Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Limited Partner agrees that it will not sell, assign or otherwise Transfer its Partnership Interest or any fraction thereof, whether voluntarily or by operation of law or at judicial sale or otherwise, to any Person who does not make the representations and warranties to the General Partner set forth in Section 9.1(a) above and similarly agree not to sell, assign or Transfer such Partnership Interest or fraction thereof to any Person who does not similarly represent, warrant and agree.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2. <u>Restrictions on Transfer of Limited Partnership Interests</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of Section 9.2(b) and (c), no Limited Partner may offer, sell, assign, hypothecate, pledge or otherwise transfer all or any portion of its Limited Partnership Interest, or any of such Limited Partner's economic rights as a Limited Partner, whether voluntarily or by operation of law or at judicial sale or otherwise (collectively, a "Transfer") without the consent of the General Partner and any lender, which consent may be granted or withheld in its sole and absolute discretion; provided that the Investment Manager and any Affiliate or assignee thereof may transfer all or any portion of its Limited Partnership Interest, or any of its economic rights as a Limited Partner, to any of its Affiliates without the consent of the General Partner. Any such purported Transfer undertaken without such consent shall be considered to be null and void ab initio and shall not be given effect. The General Partner may require, as a condition of any Transfer to which it consents, that the transferor assume all costs incurred by the Partnership in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Limited Partner may withdraw from the Partnership other than as a result of a permitted Transfer (*i.e*., a Transfer consented to as contemplated by clause (a) above or clause (c) below or a Transfer pursuant to Section 9.5 below) of all of its Partnership Interest pursuant to this Article 9 or pursuant to a Redemption of all of its Partnership Units pursuant to Section 8.5. Upon the permitted Transfer or Redemption of all of a Limited Partner's Partnership Interest, such Limited Partner shall cease to be a Limited Partner.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Limited Partner may effect a Transfer of its Limited Partnership Interest, in whole or in part, without the consent of the General Partner, which may be withheld in its sole and absolute discretion, if, in the opinion of legal counsel for the Partnership, such proposed Transfer would require the registration of the Limited Partnership Interest under the Securities Act, the registration of the Partnership as an investment company under, or would be in violation of, the Investment Company Act or any rules or regulations promulgated thereunder, the registration of the General Partner or any Affiliate thereof (that is not currently registered as an investment adviser under the Advisers Act, or cause the Partnership to be treated as a "publicly traded partnership" within the meaning of U.S. Code Section 7704(b), or would otherwise violate any applicable federal or state securities or blue sky law (including investment suitability standards).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No Transfer by a Limited Partner of its Partnership Interest, in whole or in part, may be made to any Person without the consent of the General Partner, which may be withheld in its sole and absolute discretion, if (i) in the opinion of legal counsel for the Partnership, the Transfer would result in the Partnership being treated as an association taxable as a corporation (other than a qualified REIT subsidiary within the meaning of Section 856(i) of the Code and the General Partner determines such treatment would be in the best interest of the Partnership), (ii) in the opinion of legal counsel for the Partnership, it would adversely affect the ability of the General Partner to continue to qualify as a REIT or as a domestically controlled qualified investment entity, result in the REIT being treated as a "pension-held REIT" within the meaning of Section 856(h) of the Code, or subject the General Partner to any additional taxes under Section 857 or Section 4981 of the Code, (iii) in the opinion of legal counsel for the Partnership, the Transfer would cause the Partnership not to qualify for the safe harbor described in Regulations Section 1.7704-1(h), (iv) the Transfer would result in the Partnership at any time during its taxable year having more than 100 partners, within the meaning of Section 1.7704-1(h)(1)(ii) of the Regulations (taking into account Section 1.7704-1(h)(3) of the Regulations), or (v) such Transfer is effectuated through an "established securities market" or a "secondary market (or the substantial equivalent thereof)" within the meaning of Section 7704 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No Transfer by a Limited Partner of any Partnership Interest may be made to a lender to the Partnership or any Person who is related (within the meaning of Regulations Section 1.752-4(b)) to any lender to the Partnership whose loan constitutes a nonrecourse liability (within the meaning of Regulations Section 1.752-1(a)(2)), without the consent of the General Partner, which may be withheld in its sole and absolute discretion, provided that as a condition to such consent the lender may be required to enter into an arrangement with the Partnership and the General Partner to exchange or redeem for the Cash Amount any Partnership Units in which a security interest is held simultaneously with the time at which such lender would be deemed to be a Partner in the Partnership for purposes of allocating liabilities to such lender under Section 752 of the Code.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Any Transfer in contravention of any of the provisions of this Article 9 shall be void and ineffectual and shall not be binding upon, or recognized by, the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Prior to the consummation of any Transfer under this Article 9, the transferor and the transferee shall deliver to the General Partner such opinions, certificates and other documents as the General Partner shall request in connection with such Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.3. <u>Admission of Substitute Limited Partner</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the other provisions of this Article 9, an assignee of the Limited Partnership Interest of a Limited Partner (which shall be understood to include any purchaser, transferee, donee, or other recipient of any disposition of such Limited Partnership Interest) shall be deemed admitted as a Limited Partner of the Partnership only with the consent of the General Partner and upon the satisfactory completion of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The assignee shall have accepted and agreed to be bound by the terms and provisions of this Agreement by executing a counterpart or an amendment thereof, and such other documents or instruments as the General Partner may require in order to effect the admission of such Person as a Limited Partner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To the extent required, an amended Certificate evidencing the admission of such Person as a Limited Partner shall have been signed, acknowledged and filed for record in accordance with the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The assignee shall have delivered a letter containing the representation set forth in Section 9.1(a) hereof and the agreement set forth in Section 9.1(b) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If the assignee is a corporation, partnership or trust, the assignee shall have provided the General Partner with evidence satisfactory to counsel for the Partnership of the assignee's authority to become a Limited Partner under the terms and provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The assignee shall have executed a power of attorney containing the terms and provisions set forth in Section 8.2 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The assignee shall have paid all legal fees and other expenses of the Partnership and the General Partner and filing and publication costs in connection with its substitution as a Limited Partner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) The assignee has obtained the prior written consent of the General Partner to its admission as a Substitute Limited Partner, which consent may be given or denied in the exercise of the General Partner's sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For the purpose of allocating Profits and Losses and distributing cash received by the Partnership, a Substitute Limited Partner shall be treated as having become, and appearing in the records of the Partnership as, a Partner upon the filing of the Certificate described in Section 9.3(a)(ii) hereof or, if no such filing is required, the later of the date specified in the transfer documents or the date on which the General Partner has received all necessary instruments of transfer and substitution.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The General Partner shall cooperate with the Person seeking to become a Substitute Limited Partner by preparing the documentation required by this Section and making all official filings and publications. The Partnership shall take all such action as promptly as practicable after the satisfaction of the conditions in this Article 9 to the admission of such Person as a Limited Partner of the Partnership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.4. <u>Rights of Assignees of Partnership Interests</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of Sections 9.1 and 9.2 hereof, except as required by operation of law, the Partnership shall not be obligated for any purposes whatsoever to recognize the assignment by any Limited Partner of its Partnership Interest until the Partnership has received notice thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Person who is the assignee of all or any portion of a Limited Partner's Limited Partnership Interest, but does not become a Substitute Limited Partner and desires to make a further assignment of such Limited Partnership Interest, shall be subject to all the provisions of this Article 9 to the same extent and in the same manner as any Limited Partner desiring to make an assignment of its Limited Partnership Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.5. <u>Effect of Bankruptcy, Death, Incompetence or Termination of a Limited Partner</u>**. The occurrence of an Event of Bankruptcy as to a Limited Partner, the death of a Limited Partner or a final adjudication that a Limited Partner is incompetent (which term shall include, but not be limited to, insanity) shall not cause the termination or dissolution of the Partnership, and the business of the Partnership shall continue if an order for relief in a bankruptcy proceeding is entered against a Limited Partner, the trustee or receiver of his estate or, if he dies, his executor, administrator or trustee, or, if he is finally adjudicated incompetent, his committee, guardian or conservator, shall have the rights of such Limited Partner for the purpose of settling or managing his estate property and such power as the bankrupt, deceased or incompetent Limited Partner possessed to assign all or any part of his Partnership Interest and to join with the assignee in satisfying conditions precedent to the admission of the assignee as a Substitute Limited Partner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.6. <u>Joint Ownership of Interests</u>**. A Partnership Interest may be acquired by two individuals as joint tenants with right of survivorship, provided that such individuals either are married or are related and share the same home as tenants in common. The written consent or vote of both owners of any such jointly held Partnership Interest shall be required to constitute the action of the owners of such Partnership Interest; *provided, however*, that the written consent of only one joint owner will be required if the Partnership has been provided with evidence satisfactory to the counsel for the Partnership that the actions of a single joint owner can bind both owners under the applicable laws of the state of residence of such joint owners. Upon the death of one owner of a Partnership Interest held in a joint tenancy with a right of survivorship, the Partnership Interest shall become owned solely by the survivor as a Limited Partner and not as an assignee. The Partnership need not recognize the death of one of the owners of a jointly-held Partnership Interest until it shall have received notice of such death. Upon notice to the General Partner from either owner, the General Partner shall cause the Partnership Interest to be divided into two equal Partnership Interests, which shall thereafter be owned separately by each of the former owners.

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**ARTICLE 10** 

**<u>BOOKS AND RECORDS; ACCOUNTING; TAX MATTERS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1. <u>Books and Records</u>.** At all times during the continuance of the Partnership, the Partners shall keep or cause to be kept at the Partnership's specified office true and complete books of account in accordance with GAAP, including: (a) a current list of the full name and last known business address of each Partner, (b) a copy of the Certificate of Limited Partnership and all Certificates of amendment thereto, (c) copies of the Partnership's federal, state and local income tax returns and reports, (d) copies of this Agreement and amendments thereto and any financial statements of the Partnership for the three most recent years and (e) all documents and information required under the Act. Any Partner or its duly authorized representative, upon paying the costs of collection, duplication and mailing, shall be entitled to inspect or copy such records during ordinary business hours.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2. <u>Custody of Partnership Funds; Bank Accounts</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All funds of the Partnership not otherwise invested shall be deposited in one or more accounts maintained in such banking or brokerage institutions as the General Partner shall determine, and withdrawals shall be made only on such signature or signatures as the General Partner may, from time to time, determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All deposits and other funds not needed in the operation of the business of the Partnership may be invested in any manner determined by the General Partner in its sole discretion. The funds of the Partnership shall not be commingled with the funds of any other Person except for such commingling as may necessarily result from an investment permitted by this Section 10.2(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3. <u>Fiscal and Taxable Year</u>**. The fiscal and taxable year of the Partnership shall be the calendar year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4. <u>Annual Tax Information and Report</u>**. The General Partner will endeavor to furnish within 180 days after the end of each fiscal year of the Partnership (subject to reasonable delays in the event of the late receipt of any necessary financial statements of the Person in which the Partnership holds an interest), to each person who was a Limited Partner at any time during a fiscal year of the Partnership, the tax information necessary to file such Limited Partner's individual tax returns as required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.5. <u>Partnership Representative; Tax Elections; Special Basis Adjustments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The General Partner shall act as or appoint the "partnership representative" within the meaning of Section 6223(a) of the Code (the "Partnership Representative") and the equivalent for applicable state and local tax purposes. As Partnership Representative, the General Partner (or its appointee) shall have the right and obligation to take all actions authorized and required, respectively, by the Code for the Partnership Representative. The General Partner (or its appointee) shall have the right to retain professional assistance in respect of any audit of the Partnership by the Service and all out-of-pocket expenses and fees incurred by the General Partner (or its appointee) on behalf of the Partnership as Partnership Representative shall constitute Partnership expenses.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All elections required or permitted to be made by the Partnership under the Code or any applicable state, local or foreign tax law shall be made by the General Partner in its sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Partnership Representative is authorized, but not required:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to enter into any settlement with the Service with respect to any administrative or judicial proceedings for the adjustment of Partnership items required to be taken into account by a Partner for income tax purposes (such administrative proceedings being referred to as a "tax audit" and such judicial proceedings being referred to as "judicial review"). In the settlement agreement with respect to any such proceedings, the Partnership Representative may expressly state that such agreement shall bind all Partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the event that a notice of final partnership adjustment (a "Final Adjustment") is mailed to the Partnership Representative, to seek judicial review of such Final Adjustment, including the filing of a petition for readjustment with the United States Tax Court or the United States Claims Court, or the filing of a complaint for refund with the District Court of the United States for the district in which the Partnership's principal place of business is located;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to file a request for an administrative adjustment with the Service at any time and, if any part of such request is not allowed by the Service, to file an appropriate pleading (petition or complaint) for judicial review with respect to such request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to enter into an agreement with the Service to extend the period for assessing any tax that is attributable to any item required to be taken into account by a Partner for tax purposes, or an item affected by such item; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to take any other action on behalf of the Partners or any of them in connection with any tax audit or judicial review proceeding to the extent permitted by applicable law or regulations.

The taking of any action and the incurring of any expense by the Partnership Representative in connection with any such proceeding, except to the extent required by law, is a matter in the sole and absolute discretion of the Partnership Representative and the provisions relating to indemnification of the General Partner set forth in Section 6.3 hereof shall be fully applicable to the Partnership Representative in its capacity as such.

In the case of the payment by the Partnership of an assessed imputed underpayment, the Partnership Representative is authorized to allocate the assessed amount among the Partners in a manner it deems equitable in its sole discretion so that each Partner economically bears any taxes paid by the Partnership allocable to such Partners.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event of a Transfer of all or any part of the Partnership Interest of any Partner, the Partnership, at the option of the General Partner, may elect pursuant to Section 754 of the Code to adjust the basis of the Partnership's assets. Notwithstanding anything contained in Article 5, any adjustments made pursuant to Section 754 of the Code shall affect only the successor in interest to the transferring Partner and in no event shall be taken into account in establishing, maintaining or computing Capital Accounts for the other Partners for any purpose under this Agreement. Each Partner will furnish the Partnership with all information necessary to give effect to such election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.6. <u>Reports to Limited Partners</u>**. As soon as practicable after the close of each fiscal year, the General Partner shall cause to be mailed to each Limited Partner financial statements of the Partnership, or of the General Partner if such statements are prepared solely on a consolidated basis with the General Partner, for such fiscal year, presented in accordance with GAAP. The annual financial statements shall be audited by accountants selected by the General Partner.

**ARTICLE 11** 

**<u>AMENDMENT OF AGREEMENT; MERGER</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.1. Partner Consent Requirements.** 

The General Partner's consent shall be required for any amendment to this Agreement. The General Partner, without the consent of the Limited Partners, may amend this Agreement in any respect or merge or consolidate the Partnership with or into any other partnership or business entity (as defined in Section 17-211 of the Act) in a transaction pursuant to Section 7.1(b), (c) or (d) hereof; *provided, however*, that the following amendments and any other merger or consolidation of the Partnership shall require the consent of Limited Partners holding more than 50% of the Percentage Interests of the Limited Partners:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any amendment affecting the operation of the Redemption Right (except as provided in Section 8.5(d), 7.1(b) or 7.1(c)) in a manner adverse to the Limited Partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any amendment that would adversely affect the rights of the Limited Partners to receive the distributions payable to them hereunder, other than with respect to the issuance of additional Partnership Units pursuant to Section 4.2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any amendment that would alter the Partnership's allocations of Profit and Loss to the Limited Partners, other than with respect to the issuance of additional Partnership Units pursuant to Section 4.2 or as permitted by Section 11.2(7); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any amendment that would impose on the Limited Partners any obligation to make additional Capital Contributions to the Partnership.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.2. Amendments; No Limited Partner Consent Required**.

Notwithstanding the foregoing, the General Partner, without the consent of any Limited Partner, may amend this Agreement for any of the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) to add to the obligations of the General Partner or surrender any right or power granted to the General Partner or any Affiliate of the General Partner for the benefit of the Limited Partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) to reflect the issuance of additional Partnership Units in accordance with the terms of this Agreement, the admission, substitution, termination or withdrawal of Partners, the Transfer of any Partnership Interest in accordance with this Agreement, and to amend the Partnership Register in connection with such admission, substitution, withdrawal, Transfer or adjustment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) to reflect a change that is of an inconsequential nature or does not adversely affect the Limited Partners in any material economic respect, or to cure any ambiguity, correct or supplement any provision in this Agreement not inconsistent with law or with other provisions, or make other changes with respect to matters arising under this Agreement that will not be inconsistent with law or with the provisions of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) to set forth or amend the designations, preferences, conversion or other rights, voting powers, restrictions, limitations as to distributions, qualifications or terms or conditions of redemption of the holders of any additional Partnership Interests issued pursuant to this Agreement, to appropriately reflect the distributions, allocations, partnership rights and rights upon liquidation (including any preference, priority or subordination thereof) of the additional Partnership Interests so issued in accordance with the terms thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) to satisfy any requirements, conditions or guidelines contained in any order, directive, opinion, ruling or regulation of a federal or state agency or contained in federal or state law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) (a) to reflect such changes as are reasonably necessary for the General Partner to maintain its status as a REIT or as a domestically controlled qualified investment entity or to satisfy the REIT Requirements, (b) to reflect the Transfer of all or any part of a Partnership Interest between the General Partner and any Person controlled by the General Partner or (c) to ensure that the Partnership will not be classified as a "publicly traded partnership" under Code Section 7704 or "pension-held REIT" under Code Section 856(h);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) to modify the manner in which items of Profit or Loss are allocated pursuant to Article 5 or the manner in which Capital Accounts are adjusted, computed or maintained (but in each case only to the extent otherwise provided in this Agreement and as may be permitted under applicable law);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) to reflect any modification to this Agreement as is necessary or desirable (as determined by the General Partner in its sole and absolute discretion) in connection with any merger or consolidation of the Partnership with and into the General Partner or any wholly-owned subsidiary of the General Partner, or any Transfer by the General Partner of its interest in the Partnership to any wholly-owned subsidiary of the General Partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) to reflect any other modification to this Agreement as is reasonably necessary for the business or operations of the Partnership or the General Partner; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) to effect or facilitate a Transaction that, in accordance with Section 7.1(b) and/or 7.1(c), does not require the consent of any Limited Partner and, if the Partnership is the Survivor in any Transaction, to modify Section 8.5 or any related definitions to provide that the holders of interests in such Survivor have rights that are consistent with Section 7.1.

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**ARTICLE 12** 

**<u>GENERAL PROVISIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.1. <u>Notices</u>**. All communications required or permitted under this Agreement shall be in writing and shall be deemed to have been given when delivered personally or upon deposit in the United States mail, registered, postage prepaid return receipt requested, to the Partners at the addresses set forth on the Partnership's books and records; *provided, however*, that any Partner may specify a different address by notifying the General Partner in writing of such different address. Notices to the Partnership shall be delivered at or mailed to its specified office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.2. <u>Survival of Rights</u>**. Subject to the provisions hereof limiting Transfers, this Agreement shall be binding upon and inure to the benefit of the Partners and the Partnership and their respective legal representatives, successors, transferees and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.3. <u>Additional Documents</u>**. Each Partner agrees to perform all further acts and execute, swear to, acknowledge and deliver all further documents which may be reasonable, necessary, appropriate or desirable to carry out the provisions of this Agreement or the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.4. <u>Severability</u>**. If any provision of this Agreement shall be declared illegal, invalid, or unenforceable in any jurisdiction, then such provision shall be deemed to be severable from this Agreement (to the extent permitted by law) and in any event such illegality, invalidity or unenforceability shall not affect the remainder hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.5. <u>Side Letters; Entire Agreement</u>**. Notwithstanding anything to the contrary contained herein, it is hereby acknowledged and agreed that the General Partner, on its own behalf or on behalf of the Partnership, and without the approval of any Limited Partner or any other Person, may enter into a side letter or similar agreement (collectively, "Side Letters") with one or more Limited Partners which has the effect of establishing rights under, or altering or supplementing the terms hereof. As a result of such Side Letters, certain Limited Partners may receive additional benefits, which may be more favorable than those offered to any other Partners. The parties hereto agree that any terms contained in a Side Letter with one or more such Persons shall govern with respect to such Persons notwithstanding anything to the contrary contained herein. Except as required by applicable law, the General Partner will not be required to notify all Limited Partners of any such Side Letters or any of the rights or terms or provisions thereof, and will not be required to offer such additional or different rights or terms to all Limited Partners. This Agreement and exhibits attached hereto and any Side Letters constitute the entire Agreement of the Partners and supersede all prior written agreements and prior and contemporaneous oral agreements, understandings and negotiations with respect to the subject matter hereof, including without limitation the Prior Partnership Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.6. <u>Pronouns and Plurals</u>**. When the context in which words are used in the Agreement indicates that such is the intent, words in the singular number shall include the plural and the masculine gender shall include the neuter or female gender as the context may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.7. <u>Headings</u>**. The Article headings or sections in this Agreement are for convenience only and shall not be used in construing the scope of this Agreement or any particular Article.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.8. <u>Counterparts</u>**. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original copy and all of which together shall constitute one and the same instrument binding on all parties hereto, notwithstanding that all parties shall not have signed the same counterpart. For the avoidance of doubt, a Person's execution and delivery of this Agreement by electronic signature and electronic transmission (jointly, an "Electronic Signature"), including via Docusign or other similar method, shall constitute the execution and delivery of a counterpart of this Agreement by or on behalf of such Person and shall bind such Person to the terms of this Agreement. The Partners hereto agree that this Agreement and any additional information incidental hereto may be maintained as electronic records. Any Person executing and delivering this Agreement by Electronic Signature further agrees to take any and all reasonable additional actions, if any, evidencing its intent to be bound by the terms of this Agreement, as may be reasonably requested by the General Partner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.9. <u>Governing Law</u>**. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.10. <u>No Rights as Shareholders</u>**. Nothing contained in this Agreement shall be construed as conferring upon the holders of Partnership Units any rights whatsoever as shareholders of the General Partner, including without limitation any right to receive dividends or other distributions made to shareholders of the General Partner or to vote or to consent or receive notice as shareholders in respect of any meeting of shareholders of the General Partner.

------

IN WITNESS WHEREOF, the parties hereto have hereunder affixed their signatures to this Agreement, all as of the date first set forth above.

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| | |
|:---|:---|
| **GENERAL PARTNER:** | **GENERAL PARTNER:** |
|  Fidelity Core Real Estate Fund | Fidelity Core Real Estate Fund |
| By: Fidelity CRET Trustee LLC, its sole Trustee | By: Fidelity CRET Trustee LLC, its sole Trustee |
| By: | /s/ Karen Korn |
|  | Name: Karen Korn |
|  | Title: Vice President |

---

---

| | |
|:---|:---|
| **LIMITED PARTNERS:** | **LIMITED PARTNERS:** |
| Fidelity Core Real Estate Fund | Fidelity Core Real Estate Fund |
| By: Fidelity CRET Trustee LLC, its sole Trustee | By: Fidelity CRET Trustee LLC, its sole Trustee |
| By: | /s/ Karen Korn |
|  | Name: Karen Korn |
|  | Title: Vice President |

---

---

| | |
|:---|:---|
| Fidelity CRET LP | Fidelity CRET LP |
| By: Fidelity CRET Trustee, LLC, its general partner | By: Fidelity CRET Trustee, LLC, its general partner |
| By: | /s/ Karen Korn |
|  | Name: Karen Korn |
|  | Title: Vice President |

---

*[Signature Page to Second Amended and Restated Limited Partnership Agreement of* 

*Fidelity Core Real Estate Operating Partnership LP]* 

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**<u>EXHIBIT A</u>**

**<u>NOTICE OF EXERCISE OF REDEMPTION RIGHT</u>**

In accordance with Section 8.5 of the Second Amended and Restated Limited Partnership Agreement (the "Agreement") of Fidelity Core Real Estate Operating Partnership LP (the "Partnership"), the undersigned hereby irrevocably (i) presents for redemption Partnership Units (as defined in the Agreement) in the Partnership in accordance with the terms of the Agreement and the Redemption Right (as defined in the Agreement) referred to in Section 8.5 thereof, (ii) surrenders such Partnership Units and all right, title and interest therein, and (iii) directs that the Cash Amount or REIT Shares Amount (each, as defined in the Agreement) as determined by the General Partner deliverable upon exercise of the Redemption Right be delivered to the address specified below, and if REIT Shares (as defined in the Agreement) are to be delivered, such REIT Shares be registered or placed in the name(s) and at the address(es) specified below.

Dated:

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| |
|:---|
|  (Name of Limited Partner) |
|  (Signature of Limited Partner) |
|  (Mailing Address) |
| (City) (State) (Zip Code) |
|  Signature Guaranteed by: |

---

---

| |
|:---|
|  If REIT Shares are to be issued, issue to: |
|  Name: |
|  Social Security or |
|  Tax I.D. Number:  |

---

## Exhibit 10.3

**EXHIBIT 10.3** 

AMENDED AND RESTATED CREDIT AGREEMENT

DATED AS OF MARCH 18, 2026

AMONG

FIDELITY CORE REAL ESTATE OPERATING PARTNERSHIP LP,

as Initial Borrower,

THE ADDITIONAL BORROWERS PARTY HERETO,

AND

FMR LLC,

as Lender

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**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
| SECTION 1. | DEFINITIONS; INTERPRETATION | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 1.1.* | Definitions | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 1.2.* | Interpretation | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 1.3.* | Accounting Terms | 11 |
| SECTION 2. | AMOUNT AND TERMS OF THE LOANS | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 2.1.* | Loans | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 2.2.* | Note | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 2.3.* | Procedure for Borrowing | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 2.4.* | Extension, Reduction, and Termination of the Commitment | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 2.5.* | Increase in Commitments | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 2.6.* | Payments of the Loans | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 2.7.* | Treatment and Application of Payments | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 2.8.* | Use of Proceeds | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 2.9.* | Additional Borrowers | 14 |
| SECTION 3. | INTEREST, FEES, ETC. | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 3.1.* | Interest Rate and Payment Dates | 14 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 3.2.* | Fees | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 3.3.* | Increased Costs | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 3.4.* | Taxes; Net Payments | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 3.5.* | Capital Adequacy | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 3.6.* | Payments; Certificates | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 3.7.* | Records | 17 |
| SECTION 4. | REPRESENTATIONS AND WARRANTIES | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 4.1.* | Organization and Qualification | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 4.2.* | Authorization and Power | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 4.3.* | No Conflicts or Consents | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 4.4.* | Enforceable Obligations | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 4.5.* | Financial Condition; Solvency | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 4.6.* | Full Disclosure | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 4.7.* | No Default | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 4.8.* | No Litigation | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 4.9.* | Material Adverse Change | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 4.10.* | Taxes | 19 |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 4.11.* | Jurisdiction of Formation; Principal Office | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 4.12.* | Fiscal Year | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 4.13.* | Compliance with Law | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 4.14.* | Investment Company Act | 19 |
| SECTION 5. | CONDITIONS PRECEDENT | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 5.1.* | All Credit Events | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 5.2.* | Initial Credit Event | 20 |
| SECTION 6. | AFFIRMATIVE COVENANTS | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 6.1.* | Financial Statements, Reports and Notices | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 6.2.* | Payment of Taxes | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 6.3.* | Maintenance of Existence and Rights | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 6.4.* | Notice of Default and Other Notices | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 6.5.* | Compliance with Loan Documents and Constituent Documents | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 6.6.* | Operations and Investments | 21 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 6.7.* | Books and Records; Access | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 6.8.* | Compliance with Law | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 6.9.* | Authorizations and Approvals | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 6.10.* | Further Assurances | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 6.11.* | Use of Proceeds | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 6.12.* | Solvency | 22 |
| SECTION 7. | NEGATIVE COVENANTS | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 7.1.* | Mergers; Dissolution | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 7.2.* | [Reserved] | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 7.3.* | Fiscal Year and Accounting Method | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 7.4.* | Constituent Documents | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 7.5.* | Limitations on Dividends and Distributions | 23 |
| SECTION 8. | EVENTS OF DEFAULT AND REMEDIES | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 8.1.* | Events of Default | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 8.2.* | Non-Bankruptcy Defaults | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 8.3.* | Bankruptcy Defaults | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 8.4.* | Post-Default Collections | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 8.5.* | Performance by the Lender | 26 |

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| | | |
|:---|:---|:---|
| SECTION 9. | MISCELLANEOUS | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 9.1.* | Notices | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 9.2.* | Assignments and Participations | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 9.3.* | Amendments and Waivers | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 9.4.* | No Waiver, Cumulative Remedies | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 9.5.* | Right of Setoff | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 9.6.* | Limitation of Liability; Disclosure | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 9.7.* | Survival of Representations and Certain Obligations | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 9.8.* | Cost and Expenses; Indemnification | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 9.9.* | Counterparts | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 9.10.* | Integration | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 9.11.* | Headings Descriptive | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 9.12.* | Severability | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 9.13.* | Construction | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 9.14.* | No Advisory or Fiduciary Responsibility | 31 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 9.15.* | Governing Law; Consent to Jurisdiction; Service of Process | 32 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 9.16.* | Waiver of Trial by Jury | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 9.17.* | Confidentiality | 33 |
| &nbsp;&nbsp;&nbsp;&nbsp; *Section 9.18.* | Joint and Several Liability | 34 |

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-iii-

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**AMENDED AND RESTATED CREDIT AGREEMENT** 

This Amended and Restated Credit Agreement is entered into as of March XX, 2026, by and among FIDELITY CORE REAL ESTATE OPERATING PARTNERSHIP LP, a Delaware limited partnership (the "*Initial Borrower*"), the ADDITIONAL BORROWERS from time to time party hereto, and FMR LLC, a Delaware limited liability company, as lender (the *"Lender"*).

**RECITALS** 

WHEREAS, the Initial Borrower has requested, and the Lender has agreed to, amend and restate in its entirety that certain Credit Agreement, dated as of January 27, 2023 (as amended, the "Existing Credit Agreement") as set forth in this Agreement; and

WHEREAS, effective as of the date hereof, the Existing Credit Agreement shall be replaced in its entirety by this Agreement;

NOW, THEREFORE, in consideration of the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

SECTION 1. DEFINITIONS; INTERPRETATION.

*Section 1.1. Definitions.* The following terms when used herein shall have the following meanings:

*"Additional Borrower*" means each Person that becomes a Borrower under this Agreement pursuant to Section 2.9.

*"Affiliate"* means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, Controls, is Controlled by or is under common Control with such Person; *provided* that, with respect to any Borrower, Portfolio Companies (and portfolio companies of any Related Funds) shall not be deemed to be "Affiliates" of such Borrower.

*"Agreement"* means this Credit Agreement, as the same may be amended, restated, supplemented or otherwise modified from time to time pursuant to the terms hereof.

*"Applicable Margin"* means 1.75% per annum.

*"Borrower Joinder"* means a countersignature to this Agreement executed and delivered by the Additional Borrower assuming any and all interests, obligations, rights, duties and liabilities in its capacity as a Borrower under this Agreement, and to the extent necessary, such Borrower Joinder may provide for additional representations, warranties, affirmative covenants and negative covenants, as well as such revisions to the terms of this Agreement as may be needed in order to account for the jurisdiction, structure or Partnership Agreement of such Additional Borrower, as may be required by the Lender or as may otherwise be agreed to by such Additional Borrower and Lender.

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"*Borrowers*" means, collectively, the Initial Borrower and the Additional Borrowers, each, individually, a "*Borrower*".

*"Borrowing"* means the total of Loans of a single type advanced by the Lender, and *"Borrowings"* means the plural thereof.

*"Borrowing Date"* means any date upon which a Loan is made hereunder.

*"Borrowing Request"* means a written request (including by email) for Loans delivered to the Lender.

*"Business Day"* means any day (other than a Saturday or Sunday) on which banks are not authorized or required to close in New York, New York.

*"Capital Lease Obligation"* means as to any Person, the obligations of such Person to pay rent or other amounts under a lease of (or other agreement conveying the right to use) real and/or personal property which obligations are required to be classified and accounted for as a capital lease on a balance sheet of such Person under U.S. GAAP and, for purposes of this Agreement, the amount of such obligations shall be the capitalized amount thereof, determined in accordance with U.S. GAAP.

*"Change of Control"* means the General Partner or the Investment Manager shall have been removed or otherwise ceases to be the sole general partner or investment manager, as applicable, of a Borrower, unless the entity replacing the General Partner or Investment Manager, as applicable, is an Affiliate of the General Partner or Investment Manager.

*"Closing Date"* means the date of this Agreement.

*"Code"* means the Internal Revenue Code of 1986, as amended, and any successor statute thereto.

*"Commitment"* means, the obligation of the Lender to make Loans hereunder in an aggregate principal amount at any one time outstanding not to exceed $50,000,000, as such amount may be reduced, increased or modified from time to time in accordance with Section 2.4 or Section 2.5, as applicable.

*"Constituent Documents"* means, for any entity, its constituent or organizational documents, including: (a) in the case of any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or registration with the secretary of state or other department in the state of its formation, as amended from time to time; (b) in the case of any limited liability company, the articles or certificate of formation and its operating agreement or limited liability company agreement; (c) in the case of a corporation, the certificate or articles of incorporation and its bylaws; and (d) in the case of a trust, the declaration of trust and its bylaws.

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"*Contingent Acquisition Consideration*" means, with respect to any Designated Investment, the balance of the aggregate consideration to be paid pursuant to the terms of the applicable purchase or acquisition agreement entered into in respect of such Designated Investment upon consummation of the transactions contemplated thereby; *provided* that any Contingent Acquisition Consideration that has been designated by the Lender in writing as to be funded with equity contributions or with the net cash proceeds of the issuance of any Equity Interests shall be disregarded for purposes of determining compliance with <u>Sections 2.6(b)</u>, <u>5.1(c)</u> and <u>7.5(c)</u>.

"*Control*" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. "*Controlling*" and "*Controlled*" have meanings correlative thereto.

*"Credit Event"* means the advancing of any Loan.

*"Debtor Relief Laws"* means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect.

*"Default"* means any event or condition which constitutes an Event of Default or any event or condition the occurrence of which would, with the passage of time or the giving of notice, or both, constitute an Event of Default.

*"Designated Investment"* means any investment in a Real Property Asset permitted by the Partnership Agreement or applicable Constituent Document of the applicable Borrower that is identified and designated to be funded with the proceeds of any Loan and to be made by such Borrower. 

*"Environmental Laws"* means: (a) the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. §9601 *et seq*.; (b) the Resource Conservation and Recovery Act of 1976, as amended by the Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. §6901 *et seq*.; (c) the Clean Air Act, 42 U.S.C. §7401 *et seq*., as amended by the Clean Air Act Amendments of 1990; (d) the Clean Water Act of 1977, 33 U.S.C. §1251 *et seq*.; (e) the Toxic Substances Control Act, 15 U.S.C.A. §2601 *et seq*.; (f) all other foreign, federal, state, provincial and local laws, ordinances, regulations or policies relating to pollution or protection of human health or the environment including without limitation, air pollution, water pollution, noise control, or the use, handling, discharge, disposal or release or recovery of onsite or offsite hazardous materials, as each of the foregoing may be amended from time to time, applicable to any Borrower and its Portfolio Companies; and (g) any and all regulations promulgated under or pursuant to any of the foregoing statutes.

"*Equity Interests*" means shares of common stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity interest.

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"*ERISA*" means the U.S. Employee Retirement Income Security Act of 1974, and the rules and regulations promulgated thereunder, as each of the foregoing may be amended from time to time.

*"Event of Default"* means any of the events specified in Section 8.1, *provided* that any requirement for the giving of notice, the lapse of time or any other condition has been satisfied.

*"Facility"* means the Commitment and the extensions of credit made thereunder.

*"Fee"* is defined in Section 2.7.

"*Facility Fee*" means, with respect to any quarterly period, 0.0375% of the Commitment as in effect as of the start of such quarterly period.

*"Fidelity REIT"* means Fidelity Core Real Estate Fund, a Maryland statutory trust.

*"General Partner"* means, collectively, (a) with respect to the Initial Borrower, the Fidelity REIT, and such other Person or Persons as may be a general partner of the Initial Borrower from time to time as permitted under the terms of this Agreement, and (b) with respect to any Additional Borrower, its general partner, manager, managing member, sole member or sole shareholder, and such other Person or Persons as may be a general partner, manager, managing member, sole member or sole shareholder of such Additional Borrower from time to time as permitted under the terms of this Agreement. Any one of the foregoing, being a "*General Partner*".

*"Governmental Authority"* means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).

*"Gross Asset Value" means* as of the date of determination, the gross asset value of the Property of Fidelity REIT and its Subsidiaries as determined in good faith by the Investment Manager in accordance with the Valuation Guidelines.

*"Guarantee"* means of or by any Person (the "*guarantor*"), any obligation, contingent or otherwise, of the guarantor guaranteeing or in effect guaranteeing any return on any investment made by another Person, or any Indebtedness, lease, dividend or other obligation (a "*primary obligation*") of any other Person (a "*primary obligor*") in any manner, whether directly or indirectly, including any obligation of the guarantor, direct or indirect,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to purchase any primary obligation or any property constituting direct or indirect security therefor,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to advance or supply funds (i) for the purchase or payment of any primary obligation or (ii) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of a primary obligor,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to purchase property, securities or services primarily for the purpose of assuring the beneficiary of any primary obligation of the ability of a primary obligor to make payment of a primary obligation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) otherwise to assure or hold harmless the beneficiary of a primary obligation against loss in respect thereof, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in respect of the liabilities of any partnership in which a secondary obligor is a general partner, except to the extent that such liabilities of such partnership are nonrecourse to such secondary obligor and its separate property,

*provided, however,* that the term "*Guarantee*" shall not include the endorsement of instruments for deposit or collection in the ordinary course of business. The amount of any Guarantee shall be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guarantor in good faith.

"*Increase*" is defined in Section 2.5.

*"Indebtedness"* means, as to any Person, on any date of determination, all items which constitute, without duplication,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) indebtedness for borrowed money (including the Obligations) or the deferred purchase price of Property (other than trade payables incurred in the ordinary course of business),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) indebtedness evidenced by notes, bonds, debentures or similar instruments,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) obligations with respect to any conditional sale or title retention agreement,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) indebtedness arising under acceptance and letter of credit facilities and the amount available to be drawn under all letters of credit issued for the account of such Person,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all liabilities secured by any Lien on any Property owned by such Person (other than carriers', warehousemen's, mechanics', repairmen's or other like non-consensual statutory Liens arising in the ordinary course of business with respect to obligations which are not past due),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all Guarantees or other liabilities with respect to any Indebtedness of any other Person,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all Capital Lease Obligations, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) all net obligations (determined as of any time based on the termination value thereof) of such Person under any Swap Contract.

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*provided* that, for the avoidance of doubt, Indebtedness shall not include any obligation of a Borrower to make capital contributions or loan money to any Portfolio Company or to otherwise acquire a Portfolio Investment.

*"Indemnified Taxes"* means Taxes and Other Taxes.

*"Initial Borrower"* is defined in the introductory paragraph of this Agreement.

"*Initial Acquisition Consideration*" means, with respect to any Designated Investment, the amount of consideration paid, directly or indirectly, by the Initial Borrower or any Affiliate thereof upon entering into, or pursuant to the terms of, the applicable purchase or acquisition agreement in respect of such Designated Investment prior to the consummation of the transactions contemplated thereby.

*"Interest Period"* means each successive period of three months commencing on the Borrowing Date of a Loan and each three-month anniversary thereafter; provided that if any date on which an Interest Period is scheduled to end is not a Business Day, such Interest Period shall end on the next succeeding Business Day unless such day falls in the next calendar month, in which case such Interest Period shall end on the immediately preceding Business Day; provided, further, that the final Interest Period shall end on the applicable Payment Date.

*"Investment Manager"* means, with respect to a Borrower, the applicable investment manager or other similar manager or advisor, or any successor investment manager or advisor appointed by the General Partner on behalf of such Borrower.

*"Lender"* is defined in the introductory paragraph of this Agreement.

*"Lien"* means any mortgage, lien, security interest, pledge, charge or encumbrance of any kind in respect of any Property, including the interests of a vendor or lessor under any conditional sale, Capital Lease Obligation or other title retention arrangement.

*"Loans"* means the loans and advances made by the Lender from time to time to the Borrowers pursuant to this Agreement.

*"Loan Commitment Period"* means the period commencing on the Closing Date and ending on the Stated Maturity Date, *provided, however* that if the Maturity Date occurs prior to such date, then the Loan Commitment Period shall terminate on the Maturity Date.

*"Loan Documents"* means this Agreement, the Notes (if any) and each other instrument or document to be delivered hereunder or thereunder or otherwise in connection therewith.

"*Material Adverse Effect*" means any circumstances or events which: (i) has a material adverse effect upon the validity or enforceability of any of the Loan Documents against the Borrowers and the General Partners, taken as a whole; (ii) has a material adverse effect upon the Lender's rights and remedies under any of the Loan Documents; (iii) materially impairs the ability of the Borrowers and the General Partners, taken as a whole, to perform their obligations under any of the Loan Documents to which they are a party or any of their Constituent Documents; or (iv) has a material adverse effect upon the operations, business, properties, liabilities (actual or contingent) or condition (financial or otherwise) of the applicable Borrower, the applicable General Partner and their Subsidiaries, taken as a whole.

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*"Maturity Date"* means the earliest of: (a) the Stated Maturity Date; (b) the date upon which the Lender declares the Obligations due and payable after the occurrence of an Event of Default; or (c) the date upon which the Borrower terminates the Commitments pursuant to Section 2.4(b) hereof or otherwise.

*"Memorandum"* means Fidelity REIT's Confidential Private Placement Memorandum, dated as of November 17, 2022*.*

*"Note"* is defined in Section 2.2.

*"Obligations"* means all obligations of any Borrower, to pay principal and interest on the Loans, all Fees and charges payable hereunder, and all other payment obligations of such Borrower arising under or in relation to any Loan Document, in each case whether now existing or hereafter arising, due or to become due, direct or indirect, absolute or contingent, and howsoever evidenced, held or acquired.

*"Other Taxes"* is defined in Section 3.4(a)(ii).

*"Partnership Agreements"* means, collectively, (i) that certain Amended and Restated Limited Partnership Agreement of the Initial Borrower dated as of December 1, 2022, as it may be amended, restated, supplemented or otherwise modified from time to time in accordance with the terms of this Agreement, and (ii) with respect to any Additional Borrower, the limited partnership agreement, limited liability company agreement, operating agreement or by-laws, as applicable, for such Additional Borrower, as such agreement may be amended, restated, supplemented or otherwise modified from time to time in accordance with the terms of this Agreement. Any one of the foregoing, being a "*Partnership Agreement*".

*"Person"* means an individual, sole proprietorship, joint venture, association, trust, estate, business trust, corporation, nonprofit corporation, partnership, sovereign government or agency, instrumentality, or political subdivision thereof, or any similar entity or organization.

*"Portfolio Company"* means any entity in which a Portfolio Investment is directly or indirectly held by a Borrower, including, where applicable, a Person formed to hold one or more Portfolio Investments.

*"Portfolio Investment"* means each portfolio investment of a Borrower as contemplated in such Borrower's Partnership Agreement or offering memorandum, including, any Real Property Assets.

*"Principal Obligation"* means the aggregate outstanding principal balance of the Loans.

*"Property"* means, as to any Person, all types of real, personal, tangible, intangible or mixed property owned by such Person whether or not included in the most recent balance sheet of such Person and its Subsidiaries under U.S. GAAP.

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"*Real Estate Securities*" means equity and debt securities of both publicly traded and private companies, including REITs and pass-through entities, that own Real Property or loans secured by real estate, including investments in commercial mortgage-backed securities, and derivative instruments, owned by the General Partner or any Borrower directly or indirectly through one or more of its Affiliates.

"*Real Property*" means land, rights in land (including leasehold interests) and any buildings, structures, improvements, furnishings, fixtures and equipment located on or used in connection with land and rights or interests in land.

"*Real Property Assets*" means any Real Property, Real Estate Securities or other investment in which a Borrower holds an ownership interest.

*"REIT"* means a "real estate investment trust" under Section 856 of the Code.

*"Related Funds"* means other funds or accounts managed or advised by Affiliates of the Investment Manager.

*"Responsible Officer"* of any person means any executive officer, director or financial officer of such Person and any other officer, general partner, manager or managing member or similar official thereof with responsibility for the administration of the obligations of such person in respect of this Agreement.

*"Securities Exchange Act"* means the Securities Exchange Act of 1934, as amended to the date hereof and from time to time hereafter, and any successor statute.

"*Solvent*" means, with respect to any Borrower, as of any date of determination, that as of such date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the fair value of the assets of such Borrower, its General Partner and their Subsidiaries, taken as a whole, are greater than the total amount of liabilities, including contingent liabilities, of such Borrower, its General Partner and their Subsidiaries, taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the fair value of the assets of such Borrower, its General Partner and their Subsidiaries, taken as a whole, are not less than the amount that will be required to pay the probable liability of such Borrower, its General Partner and their Subsidiaries on their debts as they become absolute and matured, taken as a whole;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) such Borrower, its General Partner and their Subsidiaries do not intend to, and do not believe that it will, incur debts or liabilities beyond its ability to pay as such debts or liabilities become absolute and matured; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) such Borrower, its General Partner and their Subsidiaries are not engaged in a business or transaction, and are not about to engage in a business or transaction, for which its assets, taken as a whole, would constitute unreasonably small capital.

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For the purposes of this definition, the amount of contingent liabilities (such as litigation, guarantees, and pension plan liabilities) at any time shall be computed as the amount which, in light of all the facts and circumstances existing at the time, represents the amount which can be reasonably expected to become an actual or matured liability and are determined as contingent liabilities in accordance with applicable federal and state laws governing determinations of insolvency.

*"Stated Maturity Date"* means the date that is the third (3<sup>rd</sup>) anniversary of the Closing Date, or such later date pursuant to an extension under Section 2.4 hereof.

"*Subsidiary*" means, with respect to any Person (the "<u>parent</u>") at any date, any corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent's consolidated financial statements if such financial statements were prepared in accordance with U.S. GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, directly or indirectly owned, Controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more Subsidiaries of the parent or by the parent and one or more Subsidiaries of the parent. Unless otherwise specified, "Subsidiary" means a Subsidiary of a Borrower.

*"Swap Contract"* means: (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement; and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement, including any such obligations or liabilities under any such master agreement.

*"Taxes"* is defined in Section 3.4(a)(i).

*"Taxes on Income"* means, as to any Person, a Tax imposed by one of the following jurisdictions or by any political subdivision or taxing authority thereof: (a) the United States, (b) the jurisdiction in which such Person is organized, (c) the jurisdiction in which such Person's principal office is located, or (d) in the case of the Lender, the jurisdiction in which the Lender's lending office with respect to the Loans is located; which Tax is an income tax or franchise tax imposed on all or part of the net income or net profits of such Person or which Tax represents interest, fees, or penalties for late payment of such an income tax or franchise tax.

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"*Term SOFR*" means the three-month forward-looking term SOFR rate published by CME Group (https://www.cmegroup.com) two SIFMA trading days prior to the commencement of the applicable Interest Period. (The SIFMA holiday schedule is available at https://www.sifma.org). If Term SOFR is less than zero, it shall be deemed to be zero.

*"Unused Fee"* means a fee equal to 0.15% per annum on the actual daily amount by which the Commitment exceeds the outstanding Principal Obligations, calculated on the basis of the actual number of days in the year and the actual days elapsed.

*"U.S. Dollars"* and *"$"* each means the lawful currency of the United States of America.

*"U.S. GAAP"* means generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the U.S. accounting profession), which are applicable to the circumstances as of the date of determination.

"*Valuation Guidelines*" means the valuation guidelines and calculation methods referenced in the section of the Memorandum titled "Net Asset Value Calculation".

*Section 1.2. Interpretation.* The foregoing definitions are equally applicable to both the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation." The word "will" shall be construed to have the same meaning and effect as the word "shall". Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person's successors and assigns, (c) the words "herein," "hereof" and "hereunder," and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles and Sections shall be construed to refer to Articles and Sections of this Agreement, (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (f) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights. All references to time of day herein are references to New York, New York, time unless otherwise specifically provided. Where the character or amount of any asset or liability or item of income or expense is required to be determined or any consolidation or other accounting computation is required to be made for the purposes of this Agreement, it shall be done in accordance with U.S. GAAP.

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*Section 1.3. Accounting Terms.* As used in the Loan Documents and in any certificate, opinion or other document made or delivered pursuant thereto, accounting terms not defined in Section 1.1, and accounting terms defined in Section 1.1, to the extent not defined, shall have the respective meanings given to them under U.S. GAAP . If any change in U.S. GAAP would affect the computation of any requirement set forth in this Agreement, such requirement shall continue to be computed in accordance with U.S. GAAP, prior to such change

*Section 1.4. Term SOFR Unavailability,* Inadequacy or Illegality. If the Lender determines that Term SOFR has ceased to be published or is otherwise unavailable, the Lender shall promptly notify the Borrowers and the parties shall negotiate in good faith to agree on a replacement rate. Until a replacement rate is agreed, Loans shall bear interest at the last available Term SOFR plus the Applicable Margin.

SECTION 2. AMOUNT AND TERMS OF THE LOANS.

*Section 2.1. Loans.* Subject to the terms and conditions of this Agreement, the Lender agrees to make Loans to the Borrowers from time to time during the Loan Commitment Period; *provided* that the aggregate principal amount of the Loans at any one time outstanding shall not exceed the Commitment at such time. During the Loan Commitment Period, the Borrowers may borrow, prepay in whole or in part in accordance with Section 2.6(a) and reborrow under the Commitment, all in accordance with the terms and conditions hereof. The aggregate outstanding principal balance of the Loans, and all accrued and unpaid interest, fees, expenses and other amounts due under this Agreement and other Loan Documents shall be due and payable in full on the earlier of (i) one hundred eighty (180) days following the Borrowing Date of such Loans and (ii) the Maturity Date; *provided* that, subject to the satisfaction of the conditions set forth in Section 5.1, any outstanding Loan may be refinanced, in whole or in part, with a new Borrowing hereunder and the Loan(s) comprising such new Borrowing shall accrue interest as determined in accordance with Section 3.1(a). All Loans shall be made in U.S. Dollars and all payments on Loans (whether for principal, interest and fees) shall be made in U.S. Dollars.

*Section 2.2. Note.* (a) Upon request by the Lender, the Loans shall be evidenced by a promissory note of the Borrowers, in a form reasonably satisfactory to the Lender, with appropriate insertions therein as to date and principal amount (as indorsed or modified from time to time, including all replacements thereof and substitutions therefor, the "*Note*"), payable to the Lender and representing the obligation of the Borrowers to pay the aggregate outstanding principal balance of the Loans, in each case with interest thereon as prescribed in Section 3.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Lender is hereby authorized to record (i) the date and amount of each Loan made by the Lender and (ii) the date and amount of each payment and prepayment of principal of any Loans on the schedule (and any continuations thereof) annexed to and constituting a part of the Note. No failure so to record or any error in so recording shall affect the obligation of the Borrowers to repay the Loans, with interest thereon, as herein provided.

*Section 2.3. Procedure for Borrowing.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A Borrower may borrow Loans during the Loan Commitment Period, *provided* that the requesting Borrower shall notify the Lender by the delivery of a Borrowing Request, which shall be irrevocable, no later than 3:00 p.m., one (1) Business Day prior to the requested Borrowing Date, which Borrowing Request shall specify (x) the aggregate principal amount to be borrowed and (y) the requested Borrowing Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the satisfaction of the terms and conditions of this Agreement, as reasonably determined by the Lender, the Lender shall disburse the proceeds of each Loan as the requesting Borrower directs.

*Section 2.4. Extension, Reduction, and Termination of the Commitment.* (a) The Stated Maturity Date shall be extended automatically for one (1) three (3) year period, unless prior to the date that is thirty (30) days before the then current Stated Maturity Date, either a Borrower or the Lender notifies the other party that it intends not to extend this Agreement past the then current Stated Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Commitment Termination and Reductions.* The Borrowers shall have the right, upon at least three (3) Business Days' prior written notice to the Lender, at any time, to permanently reduce the Commitment, *provided, however, that* any such reduction shall be in the amount of $500,000 or an integral multiple of $500,000 in excess thereof. Simultaneously with each reduction of the Commitment under this Section, the Borrowers shall prepay the Loans as required by Section 2.6(b).

*Section 2.5. Increase in Commitments.* The Borrowers may, on any Business Day during the Loan Commitment Period, with the written consent of the Lender in its sole and absolute discretion, increase the Commitments (an *"Increase"*) by delivering a written request (including by email) to the Lender at least fifteen (15) Business Days prior to the desired effective date of such Increase, which Increase shall be subject to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the aggregate amount of all such Increases shall not exceed $5,000,000 and any such Increase shall be in an amount not less than $500,000 (or such lesser amount then agreed to by the Lender);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no Default or Event of Default shall have occurred and be continuing at the time of the request or the effective date of the Increase; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) each of the representations and warranties set forth in SECTION 4 hereof and in the other Loan Documents shall be and remain true and correct in all material respects on the effective date of such Increase (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date.

The effective date of the Increase shall be designated by the Borrowers in consultation with the Lender. Notwithstanding anything herein to the contrary, the Lender shall have no obligation to increase its Commitment and its Commitment shall not be increased without its consent thereto, and the Lender may at its option, unconditionally decline to increase its Commitment.

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*Section 2.6. Payments of the Loans.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Voluntary Prepayments.* The Borrowers shall have the right at any time and from time to time to prepay all or any portion of the Loans without premium or penalty by delivering to the Lender an irrevocable written notice thereof at least three (3) Business Days prior to the proposed prepayment date, specifying (i) the amount to be prepaid and (ii) the date of prepayment, whereupon the amount specified in such notice shall be due and payable on the date specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Mandatory Prepayments of Loans*. Simultaneously with each reduction of the Commitment under Section 2.4(b), the Borrowers shall prepay the outstanding Loans by the amount, if any, by which the aggregate outstanding Principal Obligation exceeds the Commitment minus the aggregate principal amount of any outstanding Contingent Acquisition Consideration after giving effect to such reduction. If, at any other time, the Principal Obligation exceeds the Commitment minus the aggregate principal amount of any outstanding Contingent Acquisition Consideration, then, upon the earlier of (i) demand by the Lender or (ii) a Borrower obtaining actual knowledge thereof, the Borrowers shall prepay the Loans within two (2) Business Days following such demand or actual knowledge thereof in an aggregate amount equal to such excess.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *In General*. Simultaneously with each prepayment of the Loans, the Borrowers shall prepay all accrued interest on the amount prepaid through the date of prepayment.

*Section 2.7. Treatment and Application of Payments.* (a) Each payment, including each prepayment, of principal and interest on the Loans and of any fees to be paid to the Lender in connection with this Agreement (the "*Fees*") shall be made by the Borrowers prior to 4:00 p.m. on the date such payment is due, at the Lender's principal office in Boston, Massachusetts, in lawful money of the United States, in funds immediately available to the Lender and without set-off or counterclaim. The failure of the Borrowers to make any such payment by 4:00 p.m. on the due date shall not constitute a Default so long as such payment is made on the due date after 4:00 p.m., *provided, however, that* such payment made after 4:00 p.m. on such due date shall be deemed to have been made prior to 4:00 p.m. on the next Business Day for the purpose of calculating interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any payment shall be due and payable on a day which is not a Business Day, the due date thereof shall be extended to the next Business Day and interest shall be payable at the applicable rate specified herein during such extension, *provided, however,* that if such next Business Day is after the Maturity Date, any such payment shall be due on the immediately preceding Business Day.

*Section 2.8. Use of Proceeds.* Each Borrower agrees that the proceeds of the Loans shall be used only for purposes permitted by the applicable Partnership Agreement. Notwithstanding anything to the contrary contained in any Loan Document, each Borrower agrees that no part of the proceeds of the Loans will be used, directly or indirectly, for a purpose which violates any law, rule or regulation of any Governmental Authority, including, without limitation, the provisions of Regulations T, U or X of the Board of Governors of the Federal Reserve System, as amended.

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*Section 2.9. Additional Borrowers.* A Person (other than a natural Person) may become a Borrower under this Agreement, and in each case will be bound by and entitled to the benefits and obligations of this Agreement as a Borrower hereunder to the same extent as any other Borrower, upon the fulfillment of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Approval.* Approval by the Lender of the addition of such Person as a Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Joinder of New Borrower.* The new Borrower shall provide to the Lender a Borrower Joinder and such other documents as the Lender may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Borrower Note.* To the extent requested by the Lender, the Lender shall have received a duly executed Note of each new Borrower executed in favor of the Lender and otherwise in compliance with the provisions of Section 2.2.

SECTION 3. INTEREST, FEES, ETC.

*Section 3.1. Interest Rate and Payment Dates.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Loans*. Each Loan shall bear interest at a rate per annum equal to the Term SOFR *plus* the Applicable Margin and shall reset quarterly until the date of payment of such Loan in accordance with Section 2.1 or Section 2.6, as applicable, or a refinancing of such Loan in accordance with the proviso to Section 2.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Default Rate*. Notwithstanding the foregoing, after the occurrence and during the continuance of an Event of Default, upon notice from the Lender, the outstanding principal balance of the Loans shall bear interest at a rate per annum equal to 2.00% *plus* the rate otherwise applicable to such Loans as provided in subsection (a) above. All interest, payable under this subsection shall be payable on demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Payment of Interest*. Except as otherwise provided in subsection (b) above, interest shall be calculated quarterly and payable in arrears on the Maturity Date, *provided* that, any Borrower, in its sole discretion, may make payments of all or any portion of the then accrued and unpaid interest at any time. For the avoidance of doubt, in no event shall any accrued and unpaid interest be capitalized or added to the outstanding principal amount of the Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Computations*. Interest on the Loans shall be calculated on the basis of a 360-day year, for the actual number of days elapsed. Each determination of Term SOFR by the Lender pursuant to the Loan Documents shall be conclusive and binding on all parties hereto absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *Highest Lawful Rate*. At no time shall the interest rate payable on the Loans, together with the Fees and all other amounts payable under the Loan Documents to the Lender, to the extent the same are construed to constitute interest, exceed the maximum rate of interest that at any time may be contracted for, taken, charged or received by the Lender under the Loan Documents under applicable law. If for any period during the term of this Agreement, any amount paid to the Lender under the Loan Documents, to the extent the same shall (but for the provisions of this Section) constitute or be deemed to constitute interest, would exceed the maximum amount of interest permitted during such period, then such excess amount shall be applied or shall be deemed to have been applied as a prepayment of the Loans in such order as the Lender shall determine.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Rates*. The parties hereto agree that the relevant interest rates and any other applicable charges in this Agreement shall be at arm's length and in compliance with all applicable laws, orders, codes and regulations.

*Section 3.2. Fees.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrowers shall pay the Lender an Unused Fee quarterly in arrears on each quarterly anniversary of the Closing Date and on the Stated Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrowers shall pay the Lender a quarterly Facility Fee during the Loan Commitment Period which, with respect to each quarterly period, shall be fully earned as of the first day of such quarterly period. Quarterly periods shall commence on the Closing Date (and, if the Stated Maturity Date is extended pursuant to Section 2.4, on the date that each such extension becomes effective) and on each of the three-month anniversaries following the Closing Date (and following the effective date of any such extension, as applicable), provided that no quarterly period shall commence on or after the Maturity Date. The Facility Fee with respect to any quarterly period shall be payable in arrears on the date that is the three-month anniversary of the start of such quarterly period or, if earlier, on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Fees paid in connection with this Agreement shall not be refundable under any circumstances.

*Section 3.3. Increased Costs.* If, after the date of this Agreement, any change in applicable law or regulation or in the interpretation or administration thereof by any governmental authority charged with the interpretation or administration thereof (whether or not having the force of law), and which change is applicable generally to other financial institutions, shall change the basis of taxation of payments to the Lender of the principal of or interest on the Loans made by the Lender hereunder or any Fees or other amounts payable hereunder (other than changes in respect of Taxes on Income of the Lender), or shall impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the account of or credit extended by the Lender or shall impose on the Lender any other condition affecting this Agreement or the Loans hereunder, and the result of any of the foregoing shall be to increase the cost to the Lender of making or maintaining the Loans hereunder or to reduce the amount of any sum received or receivable by the Lender hereunder (whether of principal, interest or otherwise), then the Borrowers shall pay to the Lender such additional amount or amounts as will compensate the Lender for such additional costs incurred or reduction suffered.

*Section 3.4. Taxes; Net Payments.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that the Borrowers (or any of them), or any payment under this Agreement or the Note, becomes subject to any Taxes or Other Taxes (hereafter defined):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any and all payments by the Borrowers under this Agreement or the Note shall be made free and clear of and without deduction for any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and any interest, additions to tax, penalties and all liabilities arising therefrom or with respect thereto (all collectively being hereinafter referred to as "*Taxes*").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Borrower shall pay any present or future stamp, documentary, excise, property or similar taxes, charges or levies that arise from any payment made under this Agreement or the Note or from the execution, delivery or registration of, or otherwise with respect to, this Agreement or the Note relating to Loans made to such Borrower (all collectively being hereinafter referred to as "*Other Taxes*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each Borrower shall indemnify the Lender for the full amount of Taxes and Other Taxes relating to Loans made to such Borrower, and for the full amount of Taxes imposed by any jurisdiction on amounts payable under this Section 3.4, paid by the Lender relating to such Loans. All indemnification payments shall be made within thirty (30) days from the date the Lender makes written demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) without prejudice to the survival of any other agreement of the Borrowers under this Agreement, the agreements and obligations of the Borrowers contained in this Section 3.4 shall survive the payment in full of principal and interest under this Agreement and the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that a Borrower is prohibited by law from making payments under the Loan Documents free of deductions or withholdings of amounts which constitute Indemnified Taxes, such Borrower shall pay such additional amounts to the Lender as may be necessary in order that the actual amounts received by the Lender in respect of interest and any other amounts payable under the Loan Documents by such Borrower after such deduction or withholding (and after payment of any additional taxes or other charges due as a consequence of the payment of such additional amounts) shall equal the amount which would have been received if such deduction or withholding were not required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Taxes and Other Taxes shall not include Taxes on Income of the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the extent that the Lender (or any permitted assign or participant) is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document, the Lender (or any permitted assign or participant) shall deliver to the Borrower at the time or times reasonably requested by the Borrower, such properly completed and executed documentation reasonably requested by the Borrower as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, the Lender (or any permitted assign or participant), if reasonably requested by the Borrower shall deliver such other documentation prescribed by applicable law or reasonably requested by Borrower as will enable the Borrower to determine whether or not the Lender (or such permitted assign or participant) is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than the submission of an IRS Form W-8 or IRS Form W-9, as applicable) shall not be required if in the Lender's (or any permitted assign's or participant's) reasonable judgment such completion, execution or submission would subject the Lender (or any permitted assign or participant) to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of the Lender (or any permitted assign or participant).

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*Section 3.5. Capital Adequacy.* If (a) the enactment or promulgation of, or any change or phasing in, any United States or foreign law or regulation or in the interpretation thereof by any Governmental Authority charged with the administration thereof, (b) compliance with any directive or guideline from any central bank or United States or foreign Governmental Authority (whether having the force of law) promulgated or made after the date hereof, or (c) compliance with the Risk Rated Capital Guidelines of the Board of Governors of the Federal Reserve System as set forth in 12 CFR Parts 208 and 225, or of the Comptroller of the Currency, Department of the Treasury, as set forth in 12 CFR Part 3, or similar legislation, rules, guidelines, directives or regulations under any applicable United States or foreign Governmental Authority affects or would affect the amount of capital required to be maintained by the Lender (or any lending or issuing office of the Lender) or any corporation directly or indirectly owning or controlling the Lender or imposes any restriction on or otherwise adversely affects the Lender (or any lending or issuing office of the Lender) or any corporation directly or indirectly owning or controlling the Lender and the Lender shall have determined that such enactment, promulgation, change or compliance has the effect of reducing the rate of return on the Lender's capital or the asset value to the Lender of any Loan made by the Lender as a consequence, directly or indirectly, of its obligations to make and maintain the funding of the Loans at a level below that which the Lender could have achieved but for such enactment, promulgation, change or compliance (after taking into account the Lender's policies regarding capital adequacy), then, upon demand by the Lender, each Borrower shall promptly pay to the Lender such additional amount or amounts as shall be sufficient to compensate the Lender for such reduction in such rate of return or asset value relating to Loans made to such Borrower. The Lender shall provide the Borrowers with a statement setting forth the calculations of any additional amounts payable pursuant to this Section, which statement shall be conclusive absent manifest error.

*Section 3.6. Payments; Certificates.* Each payment pursuant to Sections 3.2, 3.3, 3.4 or 3.5 above shall be made within ten (10) days after demand therefor, which demand shall be accompanied by a certificate of the Lender setting forth in reasonable detail the calculations of the additional amounts payable pursuant thereto. Each such certificate shall be conclusive absent manifest error. No failure by the Lender to demand, and no delay in demanding, compensation for any increased cost shall constitute a waiver of its right to demand such compensation at any time.

*Section 3.7. Records.* The Lender's records with respect to the Loans, the interest rates applicable thereto, each payment and prepayment by a Borrower of principal and interest on the Loans and Fees, expenses and any other amounts due and payable in connection with this Agreement shall be presumed correct absent manifest error.

SECTION 4. REPRESENTATIONS AND WARRANTIES.

Each Borrower, as applicable, represents and warrants to the Lender as follows:

*Section 4.1. Organization and Qualification.* Each of the Borrowers and the General Partners is duly registered, formed or organized, validly existing, and in good standing under the laws of the jurisdiction in which it is registered, formed or organized, has full and adequate power to own its Property and conduct its business as now conducted, and is duly licensed or qualified and in good standing in each jurisdiction in which the nature of the business conducted by it or the nature of the Property owned or leased by it requires such licensing or qualifying, except where the failure to do so would not have a Material Adverse Effect.

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*Section 4.2. Authorization and Power.* Each of the Borrowers and the General Partners has the limited partnership, limited liability company, corporate or other entity, as applicable, power and requisite authority to execute, deliver, and perform its respective obligations under each Loan Document executed by it. Each of the Borrowers and the General Partners is duly authorized to, and has taken all partnership, limited liability company, corporate or other organizational, as applicable, action necessary to authorize it to execute, deliver, and perform its respective obligations under each Loan Document to which it is a party, and is and will continue to be duly authorized to perform its respective obligations under each Loan Document to which it is a party.

*Section 4.3. No Conflicts or Consents.* None of the execution and delivery of this Agreement and the other Loan Documents, the consummation of any of the transactions herein or therein contemplated, or the compliance with the terms and provisions hereof or with the terms and provisions thereof, will contravene or conflict, in any material respect, with any provision of law, statute, or regulation to which any Borrower or any General Partner is subject or any judgment, license, order, or permit applicable to any Borrower or any General Partner or any indenture, mortgage, deed of trust, or other material agreement or instrument to which any Borrower or any General Partner is a party or by which any Borrower or any General Partner may be bound, or to which any Borrower or any General Partner may be subject. No consent, approval, authorization, or order of any court or Governmental Authority or third party is required in connection with the execution and delivery by any Borrower of the Loan Documents or to consummate the transactions contemplated hereby or thereby.

*Section 4.4. Enforceable Obligations.* This Agreement and the other Loan Documents to which any Borrower or any General Partner is a party are the legal, valid and binding obligations of such Borrower or such General Partner, enforceable in accordance with their respective terms, subject to Debtor Relief Laws and equitable principles.

*Section 4.5. Financial Condition; Solvency.* Any financial statement delivered to the Lender by a Borrower pursuant to Section 6.1 hereof fairly presents, in all material respects, the financial condition of such Borrower as of the applicable date of delivery, and has been prepared in accordance with U.S. GAAP, except as provided therein. The Borrowers and the General Partners, taken as a whole, are Solvent.

*Section 4.6. Full Disclosure.* There is no material fact that any Borrower or any General Partner has not disclosed to the Lender in writing which could reasonably be expected to result in a Material Adverse Effect. No written information heretofore furnished, taken as a whole, by any Borrower or any General Partner in connection with this Agreement, the other Loan Documents or any transaction contemplated hereby or thereby contains any untrue statement of a material fact that could reasonably be expected to result in a Material Adverse Effect.

*Section 4.7. No Default.* No event has occurred and is continuing which constitutes a Default or an Event of Default.

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*Section 4.8. No Litigation.* There are no actions, suits, investigations or legal, equitable, arbitration or administrative proceedings pending, or to the knowledge of any Borrower or any General Partner, threatened in writing, against any Borrower or any General Partner that could reasonably be expected to result in a Material Adverse Effect.

*Section 4.9. Material Adverse Change.* There has not been a Material Adverse Effect since the date of the most recent financial statements submitted to the Lender.

*Section 4.10. Taxes.* All tax returns required to be filed by any Borrower in any jurisdiction have been filed and all Taxes (including mortgage recording taxes), assessments, fees, and other governmental charges upon any Borrower or upon any of its respective Properties, income or franchises have been paid, except (i) where such Borrower has made adequate reserves in accordance with U.S. GAAP for the payment of such Taxes and (ii) for any material amounts, the validity or amount thereof are being contested in good faith by appropriate proceedings. There is no proposed tax assessment against any Borrower or any basis for such assessment which is material and is not being contested in good faith and for which appropriate reserves therefor have been established.

*Section 4.11. Jurisdiction of Formation; Principal Office.* The jurisdiction of formation of the Initial Borrower is Delaware and its General Partner is formed in Maryland and the principal executive office and the principal place of business of the Initial Borrower and its General Partner is 245 Summer Street, Boston, MA 02210. The jurisdiction of formation of any Additional Borrower and its General Partner and their principal executive office and principal place of business is set forth in the applicable Borrower Joinder.

*Section 4.12. Fiscal Year.* The fiscal year of each Borrower is the calendar year.

*Section 4.13. Compliance with Law.* Each Borrower is in compliance in all material respects with all material laws, rules, regulations, orders, and decrees which are applicable to such Borrower or its Properties, including, without limitation, Environmental Laws and, if applicable, ERISA.

*Section 4.14. Investment Company Act.* Each Borrower is exempt from registration as an "*investment company*" within the meaning of the Investment Company Act of 1940, as amended.

SECTION 5. CONDITIONS PRECEDENT.

*Section 5.1. All Credit Events.* At the time of each Credit Event hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) each of the representations and warranties set forth herein and in the other Loan Documents shall be and remain true and correct in all material respects as of said time (where not already qualified by materiality, otherwise in all respects), except to the extent the same expressly relate to an earlier date, in which case they shall be true and correct in all material respects (where not already qualified by materiality, otherwise in all respects) as of such earlier date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Default or Event of Default shall have occurred and be continuing or would occur as a result of such Credit Event;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) after giving effect to such extension of credit, the outstanding Principal Obligation shall not exceed the Commitment then in effect minus the aggregate principal amount of any outstanding Contingent Acquisition Consideration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Lender shall have received a Borrowing Request; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the outstanding Principal Obligation aggregated with other Indebtedness does not exceed 66.67% of the Gross Asset Value of Fidelity REIT and its Subsidiaries, calculated on a pro forma basis after giving effect to such extension of credit.

Each request for a Borrowing hereunder shall be deemed to be a representation and warranty by the requesting Borrower on the date on such Credit Event as to the facts specified in subsections (a) through (e) of this Section; *provided, however,* that the Lender may continue to make advances hereunder, in the sole discretion of the Lender, notwithstanding the failure of the requesting Borrower to satisfy one or more of the conditions set forth above and any such advances so made shall not be deemed a waiver of any Default or other condition set forth above that may then exist.

*Section 5.2. Initial Credit Event.* Before or concurrently with the initial Credit Event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Lender shall have received this Agreement duly executed by the Initial Borrower and the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent requested by the Lender, the Lender shall have received a duly executed Note of the Initial Borrower in favor of the Lender dated the date hereof and otherwise in compliance with the provisions of Section 2.2; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no Material Adverse Effect shall have occurred.

SECTION 6. AFFIRMATIVE COVENANTS.

Each Borrower agrees that, so long as any credit is available to or in use by such Borrower hereunder, except to the extent compliance in any case or cases is waived in writing pursuant to the terms of Section 9.3:

*Section 6.1. Financial Statements, Reports and Notices.* Upon reasonable request by the Lender from time to time and to the extent available, each Borrower shall deliver, or shall cause to be delivered, to the Lender the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Annual Statements.* Within one hundred eighty (180) days after the end of each fiscal year of Fidelity REIT, audited consolidated financial statements of Fidelity REIT, including audited balance sheets of Fidelity REIT and statement of operations for such year, according to U.S. GAAP consistently applied; provided that, upon the written request of the Lender, the Borrowers will furnish unaudited consolidated financial statements of the Initial Borrower in lieu of Fidelity REIT;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Quarterly Statements and Reports.* Within ninety (90) days after the end of each of the first three fiscal quarters of each fiscal year of Fidelity REIT, an unaudited consolidated balance sheet of Fidelity REIT as of the end of such quarter and the related unaudited statement of operations for such quarter and for the portion of Fidelity REIT's fiscal year ended at the end of such quarter; provided that, upon the written request of the Lender, the Borrowers will furnish quarterly unaudited consolidated financial statements of the Initial Borrower in lieu of Fidelity REIT; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Other Information*. Such other information concerning the business, Properties, or financial condition of such Borrowers or its General Partner.

*Section 6.2. Payment of Taxes.* Each Borrower will pay and discharge all Taxes, assessments, and governmental charges or levies imposed upon it, upon its income or profits, or upon any Property belonging to it before delinquent, except as could not reasonably be expected to result in a Material Adverse Effect; *provided, however*, that such Borrower shall not be required to pay any such Tax, assessment, charge, or levy if and so long as the amount, applicability, or validity thereof shall currently be contested in good faith by appropriate proceedings and appropriate reserves therefor have been established.

*Section 6.3. Maintenance of Existence and Rights.* The Borrowers will, and will cause the General Partners to, preserve and maintain its existence. The Borrowers shall, and shall cause the General Partners to, further preserve and maintain all of its rights, privileges, and franchises necessary in the normal conduct of its business and in accordance with all valid regulations and orders of any Governmental Authority the failure of which could reasonably be expected to have a Material Adverse Effect.

*Section 6.4. Notice of Default and Other Notices.* The Borrowers will, and will cause the General Partners to, provide the Lender with written notice promptly upon a Responsible Officer becoming aware of the existence of (i) any material litigation or governmental proceeding involving a Borrower or a General Partner, (ii) notice of any event or condition which could reasonably be expected to result in a Material Adverse Effect, (iii) any condition or event which constitutes a Default or an Event of Default, together with a written notice specifying the nature and period of existence thereof and the action which the Borrower is taking or proposes to take with respect thereto, or (iv) any Change of Control.

*Section 6.5. Compliance with Loan Documents and Constituent Documents.* Unless otherwise approved in accordance with the terms of this Agreement, the Borrowers will, and will cause the General Partners to, promptly comply with any and all covenants and provisions of this Agreement and all of the other Loan Documents executed by it. The Borrowers will, and will cause the General Partners to, use the proceeds of any Funding Notices only for such purposes as are permitted by the requesting Borrower's Constituent Documents. Each Borrower's Portfolio Investments shall be made in accordance with its Constituent Documents.

*Section 6.6. Operations and Investments.* The Borrowers will, and will cause the General Partners to, act prudently and in accordance with customary industry standards in managing or operating its assets, Properties, business, and investments so as not to incur a Material Adverse Effect.

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*Section 6.7. Books and Records; Access.* Upon reasonable prior notice to the applicable Borrower, such Borrower will, and will cause its General Partner to, give any representative of the Lender access during all business hours to, and permit representative to examine, copy, or make excerpts from, any and all books, records, and documents in the possession of such Borrower, its General Partner or the Investment Manager and relating to its affairs, and to inspect any of the Properties of such Borrower and its General Partner; *provided* that excluding any such visits and inspections during the continuation of an Event of Default, the Lender shall not exercise such rights more often than one (1) time during any calendar year.

*Section 6.8. Compliance with Law.* The Borrowers will, and will cause the General Partners to, comply in all material respects with all material laws, rules, regulations, and all orders of any Governmental Authority which are applicable to such Borrower or its Properties, including, without limitation, Environmental Laws and, if applicable, ERISA.

*Section 6.9. Authorizations and Approvals.* The Borrowers will promptly obtain, from time to time at its own expense, all such governmental licenses, authorizations, consents, permits and approvals as may be required to enable the Borrowers and the General Partners to comply with their respective obligations hereunder, under the other Loan Documents and their respective Constituent Documents.

*Section 6.10. Further Assurances.* The Borrowers will, and will cause the General Partners to make, execute or endorse, and acknowledge and deliver or file or cause the same to be done, all such vouchers, invoices, notices, certifications, and additional agreements, undertakings, conveyances, transfers, assignments, or other assurances, and take any and all such other action, as the Lender may, from time to time, reasonably deem necessary in connection with this Agreement or any of the other Loan Documents, the obligations of the Borrowers hereunder or thereunder.

*Section 6.11. Use of Proceeds.* The proceeds of the Loans shall be used pursuant to Section 2.8. The Lender shall not have any liability, obligation, or responsibility whatsoever with respect to the requesting Borrower's use of the proceeds of the Loans, and the Lender shall not be obligated to determine whether or not such Borrower's use of the proceeds of the Loans are for purposes permitted under the Constituent Documents of such Borrower. Nothing, including, without limitation, any Borrowing, or acceptance of any other document or instrument, shall be construed as a representation or warranty, express or implied, to any party by the Lender as to whether any Portfolio Investment by a Borrower is permitted by the terms of such Borrower's Constituent Documents.

*Section 6.12. Solvency.* The Borrowers and the General Partners, taken as a whole, shall remain Solvent at all times during the term of this Agreement.

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SECTION 7. NEGATIVE COVENANTS.

Each Borrower agrees that, so long as any credit is available to or in use by such Borrower hereunder, except to the extent compliance in any case or cases is waived in writing pursuant to the terms of Section 9.3:

*Section 7.1. Mergers; Dissolution.* No Borrower will (i) merge or consolidate with or into any Person, unless such Borrower is the surviving entity, or (ii) take any action to dissolve, terminate, merge or consolidate such Borrower, including, without limitation, any action to sell or dispose of all or substantially all of the Property of such Borrower.

*Section 7.2. [Reserved].*

*Section 7.3. Fiscal Year and Accounting Method.* Without the prior written notice to the Lender, no Borrower will change its fiscal year or method of accounting.

*Section 7.4. Constituent Documents.* Unless the Lender provides its prior written consent thereto, no Borrower shall alter, amend, modify, terminate, or change any provision of its Constituent Documents, if such alteration, amendment, modification, termination or change would amend any debt limitation provisions in such Constituent Documents in a manner adverse to the Lender.

*Section 7.5. Limitations on Dividends and Distributions.* No Borrower shall declare or pay any dividends or distributions except as permitted under its Constituent Documents; *provided that* no dividend or distribution (other than the payment of management or advisory fees to the Investment Manager under the investment management agreement between such Borrower and the Investment Manager) shall be made if at the time such dividend or distributions is made and after giving effect thereto and any Borrowing made in connection therewith, (a) an Event of Default has occurred and is continuing or (b) the Principal Obligation then outstanding exceeds the Commitment then in effect minus the aggregate principal amount of any outstanding Contingent Acquisition Consideration. Notwithstanding the foregoing, for so long as Fidelity REIT has elected to be treated as a REIT, the Borrowers shall have the right to declare or pay any dividends or distributions in order to ensure Fidelity REIT's qualification as a REIT.

SECTION 8. EVENTS OF DEFAULT AND REMEDIES.

*Section 8.1. Events of Default.* Any one or more of the following shall constitute an *"Event of Default"* hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (i) a default in the payment of principal at the stated maturity thereof or at any other time provided for in this Agreement, or (ii) a default in the payment of interest, Fees or other Obligation when due and payable hereunder or under any other Loan Document, which continues unremedied for five (5) Business Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) a default in the observance or performance of the covenants set forth in Sections 6.1, 6.10 or 6.11 which continues unremedied for ten (10) Business Days, (ii) a default in the observance or performance of the covenant set forth in Sections 2.6(b), 6.3, 6.4, 6.5, 6.7, 6.12 or Section 7 of this Agreement or (iii) a default in the observance or performance of any other covenant set forth in Section 6 which continues unremedied for thirty (30) days;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) default in the observance or performance of any other provision hereof or of any other Loan Document which is not remedied within thirty (30) days after the earlier of (i) the date on which such failure shall first become known to any Responsible Officer of a Borrower or a General Partner or (ii) written notice thereof is given to the Borrowers by the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any representation or warranty made herein or in any other Loan Document or in any certificate furnished to the Lender pursuant hereto or thereto or in connection with any transaction contemplated hereby or thereby proves untrue in any material respect as of the date of the issuance or making or deemed making thereof, and, if the adverse effect of the failure of such representation or warranty is susceptible to cure, the Borrowers shall fail to cure such adverse effect within thirty (30) days after the earlier of (i) the date on which such failure shall first become known to any Responsible Officer of a Borrower or a General Partner or (ii) written notice thereof is delivered to the Borrowers by the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) (i) any event occurs or condition exists (other than those described in subsections (a) through (d) above) which is specified as an event of default under any of the other Loan Documents, subject to any notice and/or cure periods contained therein, or (ii) any of the Loan Documents shall for any reason not be or shall cease to be in full force and effect or is declared to be null and void, or (iii) any Borrower or any General Partner takes any action for the purpose of terminating, repudiating or rescinding any Loan Document executed by it or any of its obligations thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) default beyond any applicable grace periods shall occur in the payment of recourse Indebtedness of any Borrower (other than the Obligations) in an aggregate amount greater than or equal to $10,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) (i) any final judgment or judgments, writ or writs or warrant or warrants of attachment, or any similar process or processes, for the payment of money shall be entered or filed against any Borrower or any General Partner, or against any of their respective Property, in an aggregate amount for all such Persons in excess of $10,000,000 (except to the extent fully covered by insurance pursuant to which the insurer has not denied coverage), and which remains undischarged, unvacated, unbonded or unstated for a period of thirty (30) days, and either (x) enforcement proceedings shall have been legally taken by a judgment creditor to attach or levy upon any Property of such Borrower or such General Partner to enforce any such judgment, or (y) a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect for any period of sixty (60) consecutive days, or (ii) any Borrower or any General Partner shall fail within thirty (30) days to discharge one or more non-monetary judgments or orders which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect, which judgments or orders, in any such case, are not stayed on appeal or otherwise being appropriately contested in good faith by proper proceedings diligently pursued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) an event or series of events (whether related or not) occurs which has a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [reserved];

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the termination or expiration of any Partnership Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the occurrence of a Change of Control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) any Borrower or any General Partner shall (i) have entered involuntarily against it an order for relief under the United States Bankruptcy Code, as amended, and such order continues undischarged or such proceeding continues undismissed or unstayed for a period of sixty (60) days, (ii) not pay, or admit in writing its inability to pay, its debts generally as they become due, (iii) make an assignment for the benefit of creditors, (iv) apply for, seek, consent to or acquiesce in, the appointment of a receiver, custodian, trustee, examiner, liquidator or similar official for it or any substantial part of its Property, (v) institute any proceeding seeking to have entered against it an order for relief under the United States Bankruptcy Code, as amended, to adjudicate it insolvent, or seeking dissolution, winding up, liquidation, reorganization, arrangement, adjustment or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors and such action continues undischarged or such proceeding continues undismissed or unstayed for a period of sixty (60) days, (vi) take any corporate or similar action in furtherance of any matter described in parts (i) through (v) above, or (vii) fail to contest in good faith any appointment or proceeding described in Section 8.1(m)(m); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) a custodian, receiver, trustee, examiner, liquidator or similar official shall be appointed for any Borrower or any General Partner, or any substantial part of any of its Property and such appointment continues undischarged or such proceeding continues undismissed or unstayed for a period of sixty (60) days.

*Section 8.2. Non-Bankruptcy Defaults.* When any Event of Default (other than those described in subsection (n) or (o) of Section 8.1) has occurred and is continuing, the Lender may, by written notice to the Borrowers: (a) terminate the remaining Commitments and all other obligations of the Lender hereunder on the date stated in such notice (which may be the date thereof) and (b) declare the principal of and the accrued interest on all outstanding Loans to be forthwith due and payable and thereupon all outstanding Loans, including both principal and interest thereon, shall be and become immediately due and payable together with all other amounts payable under the Loan Documents without further demand, presentment, protest or notice of any kind. In addition, the Lender may exercise all rights and remedies available to it under the Loan Documents or applicable law or equity when any such Event of Default has occurred and is continuing.

*Section 8.3. Bankruptcy Defaults.* When any Event of Default described in subsections (n) or (o) of Section 8.1 has occurred and is continuing, then all outstanding Loans shall immediately become due and payable together with all other amounts payable under the Loan Documents without presentment, demand, protest or notice of any kind, the obligation of the Lender to extend further credit pursuant to any of the terms hereof shall immediately terminate. In addition, the Lender may exercise all rights and remedies available to it under the Loan Documents or applicable law or equity when any such Event of Default has occurred and is continuing.

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*Section 8.4.* Post-Default Collections. Anything contained herein or in the other Loan Documents to the contrary notwithstanding, all payments and collections received in respect of the Obligations by the Lender after acceleration or the final maturity of the Obligations or termination of the Commitments as a result of an Event of Default shall be remitted to the Lender and distributed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) first, to the payment of any outstanding costs and expenses incurred by the Lender in protecting, preserving or enforcing rights under the Loan Documents, and in any event including all costs and expenses of a character which any Borrower has agreed to pay the Lender under Section 9.8;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) second, to the payment of any outstanding interest and fees due under the Loan Documents to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) third, to the payment of principal on the Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) fourth, to the payment of all other unpaid Obligations and all other indebtedness, obligations, and liabilities of the Borrowers under the Loan Documents to be allocated pro rata in accordance with the aggregate unpaid amounts owing to each holder thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) finally, to the Borrowers or whoever else may be lawfully entitled thereto.

*Section 8.5. Performance by the Lender.* Should any Borrower fail to perform any covenant, duty, or agreement contained herein or in any of the Loan Documents, and such failure continues beyond any applicable cure period, the Lender may, but shall not be obligated to, perform or attempt to perform such covenant, duty, or agreement on behalf of such Borrower. In such event, the Borrowers shall, at the request of the Lender promptly pay any reasonable amount expended by the Lender in such performance or attempted performance to the Lender at the Lender's office in Boston, Massachusetts, together with interest thereon at the default rate provided for in Section 3.1(b) of this Agreement from the date of such expenditure until paid. Notwithstanding the foregoing, it is expressly understood that Lender shall not assume any liability or responsibility for the performance of any duties of any Borrower, or any related Person hereunder or under any of the Loan Documents or other control over the management and affairs of any Borrower, or any related Person, nor by any such action shall the Lender be deemed to create a partnership arrangement with any Borrower or any related Person.

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SECTION 9. MISCELLANEOUS.

*Section 9.1. Notices.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as expressly provided to the contrary herein, any communication, notice or demand to be given hereunder shall be delivered by hand-delivery, mailed by certified or registered mail, or sent by facsimile or as a PDF attachment to an email as follows:

The Borrowers:

Fidelity Core Real Estate Operating Partnership LP

245 Summer Street

Boston, MA 02210

Attention: Jessica Taylor

Email: Jessica.Taylor@fmr.com

The Lender:

FMR LLC

245 Summer Street

Boston, Massachusetts 02210

Attention: John Slyconish

Email: john.slyconish@fmr.com

Notices, requests and demands shall be deemed to have been duly given or made (a) when delivered by hand, (b) five days after having been deposited with the United States Postal Service as certified or registered mail, return receipt requested, with first-class postage and fees prepaid, (c) on the next Business Day after being consigned for next business day delivery, to Federal Express or another comparable overnight courier service, or (d) when sent by facsimile transmission, by email or as a PDF attachment to an email upon electronic confirmation of receipt. Any party to a Loan Document may change its address for notices by giving notice to each of the other parties as provided in this Section, but such notice shall not be effective against any such party until actually received. Any party to a Loan Document may rely on signatures thereon which are transmitted by fax or other electronic means (including DocuSign or other forms of electronic signature) as fully as if manually signed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Borrower agrees that the Lender is authorized (but is not obliged) to act upon facsimile or e-mail instructions which are received by the Lender from persons purported to be, or which instructions appear to be, authorized by such Borrower and such Borrower further agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a facsimile instruction, the facsimile or the instruction attached to the facsimile is to be signed by a person or persons purporting to be authorized by such Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of an e-mail instruction or an instruction in the form of a PDF (or equivalent) such instruction is from a person or persons purporting to be authorized by such Borrower; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Lender shall have no liability for not acting upon any email or facsimile instructions.

Each Borrower further agrees to indemnify and hold the Lender harmless from any claims arising by virtue of the Lender's acting upon such instructions as such instructions were understood by the Lender except to the extent that such claims arise solely as a result of the Lender's gross negligence or willful misconduct.

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*Section 9.2. Assignments and Participations.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement, the Note and the other Loan Documents to which any Borrower is a party shall be binding upon and inure to the benefit of such Borrower and the Lender, all future holders of the Note and their respective successors and assigns, provided, however, that no Borrower may delegate its liabilities and obligations, nor assign its rights and benefits, under any Loan Document to any Person. The Lender shall have the right at any time, upon written notice to the Borrowers, to grant and sell participations in all or any part of the Lender's rights and obligations with respect to the Loans. The Lender shall also have the right at any time to sell, assign and transfer all or any part of the Lender's rights and obligations with respect to Loans to one or more banks, financial institutions, trusts, funds or other entity which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities of other financial assets; *provided* that, so long as no Event of Default is continuing, no sale, assignment or transfer may be made by the Lender without any Borrower's prior written consent which shall not to be unreasonably withheld, conditioned or delayed. The Lender may at any time assign or pledge all or any part of its rights under the Loan Documents, including a pledge to a Federal Reserve Bank, *provided, however,* a pledge to the Federal Reserve Bank shall not release the Lender from its obligations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Borrower shall transfer, grant security over or declare a trust over any of its rights arising under any Loan Document without the Lender's prior written consent.

*Section 9.3. Amendments and Waivers.* No amendment or waiver of any provision of this Agreement or any Loan Document shall in any event be effective unless the same shall be in writing and signed by all parties, and such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. Notwithstanding the foregoing, subject to the consent of the Lender, but without the consent of any other Borrower an Additional Borrower may join this Agreement by signing a Borrower Joinder.

*Section 9.4. No Waiver, Cumulative Remedies.* No delay or failure on the part of the Lender, or on the part of the holder or holders of any of the Obligations, in the exercise of any power or right under any Loan Document shall operate as a waiver thereof or as an acquiescence in any default, nor shall any single or partial exercise of any power or right preclude any other or further exercise thereof or the exercise of any other power or right. The rights and remedies hereunder of the Lender and of the holder or holders of any of the Obligations are cumulative to, and not exclusive of, any rights or remedies which any of them would otherwise have.

*Section 9.5. Right of Setoff.* In addition to any rights and remedies of the Lender provided by law, upon the occurrence and during the continuance of an Event of Default, the Lender shall have the right, without prior notice to the Borrowers, any such notice being expressly waived by each Borrower to the extent not prohibited by applicable law, to set off and apply against any indebtedness, whether matured or unmatured, of the Borrowers to the Lender, any amount owing from the Lender to the Borrowers, at, or at any time after, the

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happening of any of the above-mentioned events. To the extent not prohibited by applicable law, the aforesaid right of set-off may be exercised by the Lender against any Borrower or against any trustee in bankruptcy, custodian, debtor in possession, assignee for the benefit of creditors, receiver, or execution, judgment or attachment creditor of any Borrower or against anyone else claiming through or against any Borrower or such trustee in bankruptcy, custodian, debtor in possession, assignee for the benefit of creditors, receiver, or execution, judgment or attachment creditor, notwithstanding the fact that such right of set-off shall not have been exercised by the Lender prior to the making, filing or issuance, or service upon the Lender of, or of notice of, any such petition, assignment for the benefit of creditors, appointment or application for the appointment of a receiver, or issuance of execution, subpoena, order or warrant. The Lender agrees promptly to notify the applicable Borrower after any such set-off and application made by the Lender, *provided* that the failure to give such notice shall not affect the validity of such set-off and application.

*Section 9.6. Limitation of Liability; Disclosure.* (a) No claim may be made by any Borrower or any other Person against the Lender or any directors, officers, employees or agents of the Lender for any special, indirect, consequential or punitive damages in respect of any claim for breach of contract or any other theory of liability arising out of or related to the transactions contemplated by any Loan Document, or any act, omission or event occurring in connection therewith, and each Borrower hereby waives, releases and agrees not to sue upon any claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Lender may disclose any "know your customer" information obtained by the Lender as required by law or any regulator, and the Lender shall have no liability in connection with any such disclosure. Each Borrower waives any claim to confidentiality or other rights regarding such "know your customer" information which could otherwise be the basis for blocking such disclosure.

*Section 9.7. Survival of Representations and Certain Obligations.* (a) All representations and warranties made under the Loan Documents and in any document, certificate or statement delivered pursuant thereto or in connection therewith shall survive the execution and delivery of the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The obligations of the Borrowers under Sections 3.3, 3.4, 3.5 and 9.8 shall survive the payment of the Loans and all other amounts payable under the Loan Documents. The Lender's determination of any amount or amounts owed by the Borrowers to the Lender under any such Section shall be presumed correct absent manifest error.

*Section 9.8. Cost and Expenses; Indemnification.* (a) The Borrowers shall pay all reasonable expenses incurred by the Lender (including the reasonable fees, charges and disbursements of any outside counsel for the Lender) in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section, or (B) in connection with the Loans made hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrowers agree to indemnify and hold harmless the Lender and its affiliates, directors, officers, employees, attorneys and agents (each an "*Indemnified Person*") from and against any loss, cost, liability, damage or expense (including the reasonable fees and disbursements of counsel of such Indemnified Person, including all local counsel hired by any such counsel) incurred by such Indemnified Person in investigating, preparing for, defending against, or providing evidence, producing documents or taking any other action in respect of, any commenced or threatened litigation, administrative proceeding or investigation under any federal securities law or any other statute of any jurisdiction, or any regulation, or at common law or otherwise, which is alleged to arise out of or is based upon (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, or, in the case of the Lender and any Indemnified Person, the administration and enforcement of this Agreement and the other Loan Documents, (ii) any Loan or the use or proposed use of the proceeds therefrom, (iii) any untrue statement or alleged untrue statement of any material fact by any Borrower in any document or schedule executed or filed with any Governmental Authority by or on behalf of any Borrower; (iv) any omission or alleged omission to state any material fact required to be stated in such document or schedule, or necessary to make the statements made therein, in light of the circumstances under which made, not misleading; (v) any acts, practices or omissions or alleged acts, practices or omissions of any Borrower or its agents relating to the use of the proceeds of the Loans, or in violation of any federal securities law, anti-money laundering laws, sanctions, Environmental Law or of any other statute, regulation or other law of any jurisdiction applicable thereto; or (vi) any acquisition or proposed acquisition by any Borrower of all or a portion of the stock, or all or a portion of the assets, of any Person whether such Indemnified Person is a party thereto. The indemnity set forth herein shall be in addition to any other obligations or liabilities of the Borrowers to each Indemnified Person under this Agreement or any other Loan Document or at common law or otherwise, and shall survive any termination of this Agreement or any other Loan Document and the payment of all indebtedness of the Borrowers under the Loan Documents, *provided* that the Borrowers shall have no obligation under this Section to an Indemnified Person with respect to any of the foregoing to the extent determined in a final judgment of a court having jurisdiction to have resulted primarily out of the gross negligence or willful misconduct of such Indemnified Person.

*Section 9.9. Counterparts.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Counterparts.* Each Loan Document (other than the Note) may be executed by one or more of the parties thereto on any number of separate counterparts and all of said counterparts taken together shall be deemed to constitute one and the same document. It shall not be necessary in making proof of any Loan Document to produce or account for more than one counterpart signed by the party to be charged. A counterpart of any Loan Document, and of any an amendment, modification, consent or waiver to or of any Loan Document, transmitted by facsimile, by email as a PDF attachment or by other electronic means shall be deemed to be an originally executed counterpart. A set of the copies of the Loan Documents signed by all the parties thereto shall be deposited with the Borrowers and the Lender. Any party to a Loan Document may rely upon the signatures of any other party thereto which are transmitted by facsimile, by email as a PDF attachment or by other electronic means (including DocuSign or other forms of electronic signature) to the same extent as if originally signed. Any party to a Loan Document who provides signatures to any other party thereto by facsimile, by email as a PDF attachment or by other electronic means (including DocuSign or other forms of electronic signature) shall promptly provide an original thereof to such other party (but the failure to do so shall not negate such other party's entitlement to rely upon such transmitted signatures as originals thereof).

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*Section 9.10. Integration.* All exhibits to a Loan Document shall be deemed to be a part thereof. The Loan Documents embody the entire agreement and understanding between the Borrowers and the Lender with respect to the subject matter thereof and supersede all prior agreements and understandings between the Borrowers and the Lender with respect to the subject matter thereof.

*Section 9.11. Headings Descriptive.* Section headings have been inserted in the Loan Documents for convenience only and shall not be construed to be a part thereof.

*Section 9.12. Severability.* Every provision of the Loan Documents is intended to be severable, and if any term or provision thereof shall be invalid, illegal or unenforceable for any reason, the validity, legality and enforceability of the remaining provisions thereof shall not be affected or impaired thereby, and any invalidity, illegality or unenforceability in any jurisdiction shall not affect the validity, legality or enforceability of any such term or provision in any other jurisdiction.

*Section 9.13. Construction.* Each Borrower represents that it has been represented by counsel in connection with the Loan Documents and the transactions contemplated thereby and that the principle that agreements are to be construed against the party drafting the same shall be inapplicable.

*Section 9.14. No Advisory or Fiduciary Responsibility.* In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document), each Borrower acknowledges and agrees, and acknowledges its Affiliates' understanding, that: (a) (i) no fiduciary, advisory or agency relationship between such Borrower and its Subsidiaries and the Lender is intended to be or has been created in respect of the transactions contemplated hereby or by the other Loan Documents, irrespective of whether the Lender has advised or is advising the Borrower or any of its Subsidiaries on other matters, (ii) the arranging and other services regarding this Agreement provided by the Lender are arm's-length commercial transactions between such Borrower and its Affiliates, on the one hand, and the Lender, on the other hand, (iii) such Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent that it has deemed appropriate and (iv) such Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents; and (b) (i) the Lender is and has been acting solely as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for such Borrower or any of its Affiliates, or any other Person; (ii) the Lender has no obligation to such Borrower or any of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; and (iii) the Lender and its Affiliates may be engaged, for their own accounts or the accounts of customers, in a broad range of transactions that involve interests that differ from those of such Borrower and its Affiliates, and the Lender has no obligation to disclose any of such interests to such Borrower or its Affiliates. To the fullest extent permitted by law, each Borrower hereby waives and releases any claims that it may have against the Lender with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

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*Section 9.15. Governing Law; Consent to Jurisdiction; Service of Process.* (a) THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE COMMONWEALTH OF MASSACHUSETTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) EACH BORROWER IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST THE LENDER, OR ANY RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN THE COURTS OF THE COMMONWEALTH OF MASSACHUSETTS SITTING IN SUFFOLK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE DISTRICT OF MASSACHUSETTS, AND ANY APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH MASSACHUSETTS STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE LENDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) EACH BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN CLAUSE (b) OF THIS Section 9.15. EACH BORROWER IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN Section 9.1. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

*Section 9.16. Waiver of Trial by Jury.* EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (a) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (b) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS Section 9.16.

*Section 9.17. Confidentiality.* The Lender agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential); (b) to the extent required or requested by any regulatory authority purporting to have jurisdiction over such Person (including any self-regulatory authority, such as the National Association of Insurance Commissioners); (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process; (d) to any other party hereto; (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder; (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or participant in, or any prospective assignee of or participant in, any of its rights and obligations under this Agreement, or (ii) any actual or prospective party to any swap, derivative or other transaction under which payments are to be made by reference to a Borrower and its obligations, this Agreement or payments hereunder; (g) with the consent of a Borrower; or (h) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section, or (y) becomes available to the Lender, or any of its Affiliates on a nonconfidential basis from a source other than a Borrower. For purposes of this Section, *"Information"* means all information received from a Borrower or any of its Subsidiaries relating to the Borrower or any of its Subsidiaries or any of their respective businesses, other than any such information that is available to the Lender on a nonconfidential basis prior to disclosure by a Borrower or any of its Subsidiaries. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

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*Section 9.18. Joint and Several Liability.* Each Borrower is jointly and severally liable for the Obligations as a primary obligor in respect thereof. The Obligations of each Borrower are independent of the Obligations of each other Borrower, and a separate action or actions may be brought and prosecuted against any Borrower to enforce this Agreement, irrespective of whether any action has been brought against any other Borrower or whether any other Borrower is joined in any such action.

[SIGNATURE PAGES TO FOLLOW]

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This Credit Agreement is entered into between us for the uses and purposes hereinabove set forth as of the date first above written.

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| | |
|:---|:---|
| **BORROWER:** | **BORROWER:** |
| FIDELITY CORE REAL ESTATE OPERATING PARTNERSHIP LP | FIDELITY CORE REAL ESTATE OPERATING PARTNERSHIP LP |
| By: | Fidelity Core Real Estate Fund, its General Partner |
| By: | Fidelity CRET Trustee, its sole Trustee |
| By: | /s/ Mark Lochiatto |
|  | Name: Mark Lochiatto |
|  | Title: Secretary |

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[SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT -

FIDELITY CORE REAL ESTATE OPERATING PARTNERSHIP LP]

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| | |
|:---|:---|
| **LENDER:** | **LENDER:** |
| FMR LLC | FMR LLC |
| By: | /s/ John Slyconish |
|  | Name: John Slyconish |
|  | Title: Treasurer |

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[SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT -

FIDELITY CORE REAL ESTATE OPERATING PARTNERSHIP LP]

## Exhibit 21.1

**EXHIBIT 21.1** 

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| | |
|:---|:---|
| **Name of Subsidiary** | **Jurisdiction** |
| Fidelity Core Real Estate Operating Partnership LP | Delaware |
| FCREF 85 Exchange GP LLC | Delaware |
| FCREF 85 Exchange LP | Delaware |
| FCREF 3200 Washington LLC | Delaware |
| FCREF Chandler I LLC | Delaware |
| FCREF Chandler II LLC | Delaware |
| FCREF Creekstone GP LLC | Delaware |
| FCREF Creekstone LP | Delaware |
| FCREF Gold Star LLC | Delaware |
| FCREF Independence Square GP LLC | Delaware |
| FCREF Independence Square LP | Delaware |
| FCREF Liquidity Vehicle LLC | Delaware |
| FCREF MA Holdco LLC | Delaware |
| FCREF Millside LLC | Delaware |
| FCREF Northmark GP LLC | Delaware |
| FCREF Northmark LP | Delaware |
| FCREF Riverway LLC | Delaware |
| FCREF Sylva JV General Partner LLC | Delaware |
| FCREF Sylva Joint Venture LP | Delaware |
| FCREF Sylva JV Limited Partner LLC | Delaware |
| FCREF Sylva Property Owner GP, LLC | Delaware |
| FCREF Sylva Property Owner LP | Delaware |
| FCREF Sylva TRS, LLC | Delaware |
| FCREF Texas GP LLC | Delaware |
| FCREF Texas LP | Delaware |
| FCREF Thurmon Tanner A LLC | Delaware |
| FCREF TRS LLC | Delaware |
| FCREF Vineyard Towne I LLC | Delaware |
| FCREF Vineyard Towne II LLC | Delaware |
| Silverdale Joint Venture Managing Member, LLC | Delaware |
| Silverdale Joint Venture, LLC | Delaware |
| Silverdale Property Owner, LLC | Washington |

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