CNSREIT-AR-2024 Final - Flipbook - Page 23
Risks Related to Our Organizational Structure
We have a limited operating history, and there is no assurance that we will be able to successfully achieve our
investment objectives.
We are a recently formed entity with a limited operating history and may not be able to achieve our investment
objectives. We made our first investment in real estate and commenced principal operations in January 2024. We cannot
assure you that the past experiences of the Advisor or its affiliates will be sufficient to allow us to successfully achieve our
investment objectives. Further, our Sponsor and our Advisor have not previously offered a non-traded REIT. As a result, an
investment in our shares of common stock may entail more risk than the shares of common stock of a REIT with a
substantial operating history.
We have held our current investments for only a short period of time and our stockholders will not have the opportunity
to evaluate our investments before we make them, which makes an investment in our common stock more speculative.
We have held our current investments for a limited period of time, and we are not able to provide any information
relating to any future properties or real estate-related investments that we may acquire. Because we have not held our
current investments for a long period of time, it may be difficult for investors to evaluate our success in achieving our
investment objectives. Because stockholders will be unable to evaluate the economic merit of our investments before we
make them, stockholders will have to rely entirely on the ability of the Advisor to select suitable and successful investment
opportunities. The Advisor will have broad discretion in selecting the types of properties we will invest in and the tenants
of those properties. These factors increase the risk that your investment may not generate returns comparable to other real
estate investment alternatives.
The Advisor manages our portfolio pursuant to very broad investment guidelines and generally is not required to seek
the approval of our Board for each investment, financing or asset allocation decision made by it, which may result in
our making riskier investments and which could adversely affect our results of operations and financial condition.
Our Board approved very broad investment guidelines that delegate to the Advisor the authority to execute
acquisitions and dispositions of real estate and real estate-related investments on our behalf, in each case so long as such
investments are consistent with the investment guidelines and our charter. The Advisor implements on our behalf the
strategies and discretionary approaches it believes from time to time may be best suited to prevailing market conditions in
furtherance of that purpose, subject to the limitations under our investment guidelines and our charter. There can be no
assurance that the Advisor will be successful in implementing any particular strategy or discretionary approach to our
investment activities.
Furthermore, the diversification and type of investments may differ substantially from our prior investments. For
example, future investments may focus on different sectors of real estate or different geographic areas than is the case for
our current investment portfolio. Our Board reviews our investment guidelines on an annual basis (or more often as it
deems appropriate) and reviews our investment portfolio periodically. The prior approval of our Board or a committee of
independent directors will be required only as set forth in our charter (including for transactions with affiliates of the
Advisor) or for the acquisition or disposition of assets that are not in accordance with our investment guidelines. In
addition, in conducting periodic reviews, our directors rely primarily on information provided to them by the Advisor.
Furthermore, transactions entered into on our behalf by the Advisor may be costly, difficult or impossible to unwind when
they are subsequently reviewed by our Board.
There is no public trading market for shares of our common stock. Therefore, your ability to dispose of your shares will
likely be limited to repurchase by us. If you do sell your shares to us, you may receive less than the price you paid.
There is no current public trading market for shares of our common stock, and we do not expect that such a market will
ever develop. Therefore, repurchase of shares by us will likely be the only way for you to dispose of your shares. We will
repurchase shares at a price equal to the NAV per share of the class of shares being repurchased on the date of repurchase,
and not based on the price at which you initially purchased your shares. Subject to limited exceptions, shares repurchased
within one year of the date of purchase by such holder will be repurchased at 95% of NAV per share. As a result, you may
receive less than the price you paid for your shares when you sell them to us pursuant to our share repurchase plan. Further,
we are 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 month in our discretion.
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