ACD Core Plus Commercial Fund
BECOME AN INVESTORTTM Net Total Return
Net Distribution Yield
NAV / PI
FUND OVERVIEW
The Core Plus Fund is designed for investors seeking a balanced approach to income and long-term growth. Focused on stabilized, income-generating real estate, the Fund targets a diversified portfolio of commercial spaces that fulfill essential daily necessities and local commerce in select, high-growth markets across the Intermountain West.
Predictable Income
The Fund seeks to pair steady appreciation with consistent, quarterly cash distributions while leveraging tax advantaged strategies to enhance overall returns.
Active Asset Management
The Fund seeks to optimize investment performance by leveraging ACD’s deep industry expertise, local presence and integrated asset and property management platform.
Risk Mitigation
The Fund seeks to reduce risk through diversification, stabilized assets, conservative leverage, and active management, with a focus on long-term stability and capital protection.
TAX ADVANTAGED DISTRIBUTIONS
The Fund seeks to maximize after-tax returns and enhance overall tax efficiency for investors by leveraging real estate tax benefits such as depreciation.
Over the most current tax year, the Fund delivered a net tax equivalent distribution yield of
11.59%.(4,5)
FUND PERFORMANCE
Quarterly Net Total Return (1)
| Q1 | Q2 | Q3 | Q4 | YTD | |
|---|---|---|---|---|---|
| 2024 | 1.82% | 4.15% | 2.77% | 2.16% | 11.06% |
| 2023 | 1.49% | 1.75% | 1.90% | 4.23% | 9.36% |
| 2022 | 2.07% | 1.59% | 3.02% | 3.83% | 10.61% |
| 2021 | - | - | 1.52% | 7.54% | 9.06% |
Quarterly Net Distribution Rate (2)
| Q1 | Q2 | Q3 | Q4 | YTD | |
|---|---|---|---|---|---|
| 2024 | 1.61% | 1.79% | 1.83% | 1.95% | 7.30% |
| 2023 | 1.57% | 1.72% | 2.02% | 2.42% | 7.72% |
| 2022 | 1.41% | 1.58% | 1.98% | 2.23% | 7.20% |
| 2021 | - | - | 1.50% | 2.26% | 3.76% |
Price / Partnership Interest (3)
| Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|
| 2024 | $11.55 | $11.83 | $11.94 | $12.16 |
| 2023 | $11.18 | $11.18 | $11.17 | $11.53 |
| 2022 | $10.74 | $10.74 | $10.85 | $11.19 |
| 2021 | - | $10.00 | $10.00 | $10.67 |
Representative Assets
Denver, Colorado
700 W 48TH AVE
Conifer, Colorado
BRITELOCK STORAGE AT CONIFER
Phoenix, Arizona
SHOPS AT LAVEEN VILLAGE
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As of December 31, 2024. TTM means trailing twelve months. The Net Total Return is the sum of the Net Distribution and Net Appreciation rates. See footnote 2 for distribution and appreciation performance methodology..
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The Net Distribution Rate is calculated by dividing (i) the net distribution per partnership interest after the reduction for management fees by (ii) the net asset value per partnership interest as of (A) October 1, 2024 with respect to the Q4 2024 rate and (B) December 31, 2023 with respect to the TTM rate. Management fees reduce distributions received by limited partners. The Net Appreciation Rate reflects, over the applicable appreciation period, the change in net asset value per partnership interest net of fund-level management fees, expenses and performance participation paid by each partner. Fair value of real estate assets are marked-to-market quarterly (which is based upon updates performed by the general partner of Core Plus Fund and third-party appraisals at year end).
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As of December 31, 2024. This is not the net asset value per partnership interest for trading purposes upon making future capital contributions, which will be calculated in accordance with the limited partnership agreement of Core Plus Fund.
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As of December 31, 2024. Based on ACD’s estimate of Core Plus Fund’s after-tax net distribution rate of 7.30%. The net tax- equivalent distribution yield reflects the pre-tax rate an investor in a theoretical fully taxable investment would need to receive to match the after-tax rate of an investment in Core Plus Fund assuming that (i) the investor qualifies to utilize the benefit of the qualified business income deduction, which is currently 20% of net rental income, (ii) all income earned on the theoretical fully taxable investment is taxed at the maximum U.S. federal income tax rate applicable to ordinary income for U.S. taxable individuals, which is currently 37%, without taking into account any other taxes, including the 3.8% net investment income tax or state or local taxes (which would vary by investor and will be significant for residents of certain states) and (iii) the investor is unable to utilize Core Plus Fund’s portfolio deductions, including management fees, and fund level legal fees (the deductibility of which would vary by investor). Actual effective tax rates will vary based on each investor’s income, exemptions and deductions and may change in the future. A lower effective tax rate will result in a lower tax-equivalent rate.
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Undue reliance should not be placed on the after-tax rate or the tax-equivalent rate because (i) they have not been experienced by any investor and are based on assumptions that may not apply to any particular investor, (ii) the taxable income for 2024 is being compared to the distribution rate for 2024. In addition, the after-tax rate and the tax-equivalent rate do not take into account, and would therefore be reduced by, other taxes that may be owed when an asset is sold or an investor redeems its interests in Core Plus Fund, including to take into account deferred capital gains tax and depreciation recapture via a reduction in the investor’s tax basis. While investors may initially recognize taxable income that is less than the cash distributions they receive, that is only reflective of a particular tax year and in the future investors may recognize taxable income that represents an increasing percentage of, or exceeds, the cash distributions they receive. Furthermore, if an investor sells or redeems its interest in Core Plus Fund, the investor will recognize a gain or loss equal to the difference between the amount realized and the investor’s tax basis in its interest. Cash distributions received by an investor in excess of the taxable income allocated to the investor will cause the tax basis in the investor’s interest in Core Plus Fund to be reduced by the amount of such excess. This reduction in tax basis will, in effect, become taxable income to the investor if the interest is sold or redeemed at a price greater than the tax basis in that interest, even if the price the investor receives is less than the original cost of the interest. Cash distributions that exceed the tax basis of an investor’s interest in Core Plus Fund will result in the recognition of taxable gain by the investor. Investors should consult their own tax advisors.