CNSREIT-AR-2024 Final - Flipbook - Page 109
We will reimburse the Advisor for certain out-of-pocket expenses in connection with our operations. The Advisor has
agreed to advance all of our organization and offering expenses on our behalf (including legal, accounting and other
expenses attributable to our organization, but excluding upfront selling commissions, dealer manager fees and stockholder
servicing fees) through the earlier of (i) December 31, 2025 or (ii) the month that our aggregate NAV is at least $1.0
billion. We will reimburse the Advisor for all such advanced expenses ratably over the 60 months following such date.
After the earlier of (i) December 31, 2025 or (ii) the month that our aggregate NAV is at least $1.0 billion, we will
reimburse the Advisor for any organization and offering expenses that it incurs on our behalf as and when incurred. As of
December 31, 2024 and December 31, 2023, the Advisor had incurred approximately $8.4 million and $7.0 million,
respectively, of organization and offering expenses on our behalf.
Pursuant to an Expense Limitation and Reimbursement Agreement, the Advisor has contractually agreed to waive its
fees and/or reimburse expenses on our behalf so that the Specified Expenses (as defined below) will not exceed 0.5% of net
assets (annualized). We agreed to repay these amounts, when and if requested by the Advisor, but only if and to the extent
that Specified Expenses are less than 0.5% of net assets (annualized) (or, if a lower expense limit is then in effect, such
lower limit) within three years after the date the Advisor waived or reimbursed such fees or expenses. Any Excess Expense
(as defined in the Expense Limitation and Reimbursement Agreement) will not be recognized as an expense until it is
probable that we will reimburse the Advisor for such cost. This arrangement cannot be terminated prior to December 31,
2025 without the consent of our Board, including a majority of independent directors.
