--- title: "RealtyMogul Income REIT Marks NAV Down to $6.85, Halves the Distribution and Says Its Columbus Office Equity Is Worth Nothing" url: https://altstreet.investments/news/realtymogul-income-reit-1h-2026-update-nav-6-85-distribution-halved-2026-09-09 kind: news-article updated: 2026-09-11 description: "RealtyMogul Income REIT's 1H 2026 update filed Sept. 9: NAV $6.85, distribution cut to 1.5% annualized, repurchases suspended after demand exceeded the cap, and a $7.8M Columbus office JV written to zero." publisher: AltStreet (https://altstreet.investments) license: Public factual pages may be read, quoted and cited with attribution and a link. Bulk redistribution is not permitted. --- # RealtyMogul Income REIT Marks NAV Down to $6.85, Halves the Distribution and Says Its Columbus Office Equity Is Worth Nothing A first-half 2026 investor communication filed September 9 puts the Reg A REIT's share value 31.5% below its $10 offering price, cuts the annualized distribution to 1.5%, confirms that repurchase demand exceeded the program's cap before the suspension, and writes off a $7.8 million office joint venture, all before the August sale of three Pacific Northwest apartment communities at deep losses is reflected in NAV. Published September 11, 2026. Platform: RealtyMogul (https://altstreet.investments/platforms/reviews/realtymogul). Entity: RealtyMogul Income REIT, Inc. (CIK 1669664, https://altstreet.investments/edgar/1669664). RealtyMogul Income REIT, Inc. told its roughly 7,700 stockholders in a first-half 2026 update that net asset value has fallen to $6.85 per share, that the quarterly distribution was cut in half to a 1.5% annualized rate for the second quarter, and that the REIT no longer believes any equity value remains in its $7.8 million Columbus office investment. The 32-page communication, dated September 8, was filed as Exhibit 99.1 to a Form 1-U on September 9, 2026. The deck gathers in one place a sequence of decisions the REIT had disclosed piecemeal across 2026 filings: the NAV markdown announced June 1, the distribution reduction declared March 31, the suspension of the share repurchase program and distribution reinvestment plan in April, and the August 20 sale of three Pacific Northwest apartment communities at roughly 0.3x to 0.6x of invested equity. It adds the manager's own account of why, including an acknowledgment that repurchase requests had exceeded the program's annual limits and were being filled pro rata before the board suspended the program. ## What the communication shows The Form 1-U itself (accession 0001493152-26-041825) is a one-page Item 9 current report incorporating the communication. The deck is signed by RM Adviser, LLC, the REIT's manager, and states that its data are as of March 31, 2026 unless noted, with investment counts as of July 31, 2026. - NAV per share: $6.85 as of March 31, 2026, announced June 1 and in effect as the offering price. The prior marks were $7.49 as of December 31, 2025 (announced January 26) and $7.67 as of September 30, 2025, so the March quarter alone took 8.5% off the share value. No NAV as of June 30, 2026 had been announced in any filing as of September 9. - Distributions: the board set an annualized rate of 3.0% of NAV for the first quarter of 2026 and 1.5% for the second. The daily rate fell from $0.0006156164 per share in February and March to $0.0003078082 in April and May and $0.0002815068 in June, per the July 17 Form 1-U. The rate was 6% until the fourth quarter of 2024 and 3% through 2025. - Liquidity: management writes that share repurchase requests 'have exceeded the annual limits under the share repurchase program and consequently have been fulfilled on a pro rata basis,' and that the board approved suspending the program 'to support the REIT's stabilization strategy and preserve liquidity.' The DRIP was suspended by the manager on April 21, 2026, per the April 29 Form 1-U. - Columbus Office Portfolio (Columbus, Ohio; $7,826,619 of joint-venture equity acquired November 5, 2019): occupancy ended the first quarter at 74%, the property loan matured in December 2025, one building (855 Grandview) was sold with proceeds applied to the senior loan, and the manager states: 'We do not believe there is any equity value remaining in this deal.' Any future sale of 500 S Front is expected to go to the senior lender and property obligations. - Kings Landing (Creve Coeur, Missouri; $11,609,066): floating-rate debt was refinanced with fixed-rate agency debt plus preferred equity 'to provide more time to stabilize the asset.' The REIT has also made member loans to the joint venture of $291,566, $3,200,000 and $117,500 (June 2023, August 2024 and September 2024) that rank ahead of common equity distributions. - The Hamptons Apartments (Virginia Beach; $10,452,966): sold November 18, 2025 'in light of significant anticipated capital requirements, allowing the REIT to recoup most of its invested equity.' The Lubbock Medical Office Building ($2,926,477) was sold January 6, 2026. In 2025, 100% of distributions were classified as capital gains because of the La Privada and Hamptons sales. - Portfolio: total asset value of $479 million as of March 31, 2026, stated before the August 20 sale of Minnehaha Meadows, Roosevelt Commons and Edison Apartments; 16 investments (15 joint ventures and one preferred equity position) with $95,038,860 of invested capital as of July 31, 2026, of which the three sold Pacific Northwest positions accounted for $12,064,130. Multifamily is 62% of the book and the Midwest 52%. - Operations: average occupancy across the joint-venture equity investments was 92.1% in the first quarter of 2026. Across six renovation programs, 544 of 658 units had been renovated at a weighted average rent premium of $218 per month, or 16.8% over prior rents. The Texas retail preferred equity position ($2,764,738 at 14%, maturing July 6, 2027) and the two FedEx Ground industrial buildings are current. - History: 42 investments totaling over $174 million since August 2016, of which 26 have gone full cycle with over $76 million of principal returned, per the deck. Every figure in the communication is the manager's own; the first-half financial statements will arrive with the Form 1-SA, which last year was filed September 30. ## Background RealtyMogul Income REIT, formerly MogulREIT I, LLC, is a non-traded Regulation A REIT that began selling shares in August 2016 at $10.00 per share to accredited and non-accredited investors with a $5,000 minimum. It converted from a Delaware LLC to a Maryland corporation on April 27, 2026. A January 2026 filing reported approximately $148.2 million of gross offering proceeds from roughly 7,700 investors as of November 30, 2025. Its second follow-on offering expired in May 2025, and the REIT has not been open to new capital since; the DRIP suspension in April closed the last channel through which shares were being issued. The distribution history the manager cites in the deck, more than 110 consecutive periods, is real, but the rate has stepped down three times in eighteen months: from 6% to 3% for the fourth quarter of 2024, from monthly to quarterly cadence effective December 2025, and to 1.5% for the second quarter of 2026. The deck's own footnote states that distributions have been paid in part from sources other than operating cash flow, including offering proceeds, manager advances, fee waivers, borrowings and share issuance. The NAV trajectory the deck describes as having 'declined to $6.85' runs from $10.05 to $8.26 during 2024 according to the FY2024 annual report, to $7.67 at September 30, 2025, $7.49 at December 31, 2025 and $6.85 at March 31, 2026. The manager attributes the decline 'primarily' to 'the performance of our real estate investments amid persistent macroeconomic and sector-specific challenges,' and names weakness in multifamily specifically. NAV is calculated quarterly by the manager's internal accountants or asset managers, not by an independent valuer, a point the deck's own risk factors repeat. ## The pattern in AltStreet's data AltStreet published on August 28 when the Form 1-U disclosed the sale of Edison Apartments, Roosevelt Commons and Minnehaha Meadows at equity multiples of roughly 0.3x, 0.6x and 0.5x against underwriting of 1.9x to 2.6x. That filing gave sale prices and multiples but no NAV impact. The new deck confirms that the sales were not in the March 31 NAV of $6.85 and not in the $479 million total asset value figure, so the first mark to reflect them will be the June 30 or September 30 NAV, neither of which has been announced. AltStreet's RealtyMogul review, built from the FY2024 and FY2025 annual reports, recorded the $7.49 NAV, the 3% distribution, the April 21 suspension of both REITs' repurchase programs and the gap between the $485 million total asset value shown on the product page and the $288.7 million of audited total assets at December 31, 2025. The deck's $479 million figure is the same manager-calculated property value, not a balance-sheet number. The review flagged the size of the redemption queue as undisclosed; the deck does not disclose it either, but it is the first company document to state that requests exceeded the program's annual limits. The Columbus Office Portfolio statement is the first explicit write-off language in the REIT's 2026 communications. AltStreet's tracking of the Income REIT's 42 investments shows this is the second office position to be worked out with a lender after the loan matured; the sister Apartment Growth REIT recorded a foreclosure and a realized loss on sale in its FY2025 annual report. ## Why it matters For the REIT's stockholders, three numbers in this deck describe their position more precisely than any 2026 filing before it. The share is marked at $6.85, 31.5% below the $10.00 at which most of the $148 million was raised, and that mark predates the August sales that returned roughly a third to a half of the equity in three assets carried at $12.1 million of invested capital. The cash yield on that mark is 1.5% annualized, half of what it was in the first quarter and a quarter of the 2024 rate. And there is no exit: the repurchase program is suspended after demand exceeded its annual cap, the DRIP is closed, and the shares do not trade. The Columbus disclosure matters beyond its $7.8 million size because of how it is phrased. Management is not reporting a sale or an appraisal; it is telling investors in advance that a position still carried in the portfolio table is expected to return nothing to the REIT's equity. Under the manager's quarterly NAV process, that expectation should already be in the $6.85 mark or in the next one. The deck does not say which, and the Form 1-U does not add anything. Kings Landing is the position to watch next. It is the REIT's largest investment at $11.6 million, it needed a refinancing with preferred equity behind agency debt to buy time, and the REIT has lent the joint venture a further $3.6 million that ranks ahead of the common equity. Renovation metrics there are strong on the deck's own numbers, with a 20.4% premium on 112 renovated units and 92% occupancy, so the question is whether operating performance can carry the new capital stack. The manager's letter describes the changes as 'a difficult development for investors' and 'the more prudent approach in the current environment,' and frames the reduced distribution as a level 'that can be sustained through the stabilization period.' Whether the 1.5% rate holds for the third quarter will be visible in the distribution declaration the REIT files with each payment, the next of which would fall in mid-October. ## What the filings do not show The communication is an investor letter, not a financial statement. It does not give first-half revenue, net income, cash, debt or the number of shares outstanding; those will come in the Form 1-SA for the six months ended June 30, 2026, due by the end of September. It does not give a June 30 NAV, the volume of unfilled repurchase requests, the pro rata fill rate before the suspension, or the NAV effect of the August 20 sales or of the Columbus write-down. It does not name the lender in the Columbus workout, the preferred equity provider at Kings Landing, or the terms of either. The occupancy and renovation figures are the manager's, as of March 31, 2026, and cover only joint-venture equity investments. The $479 million total asset value is the manager's internal valuation of properties owned or underlying loans, on which NAV is based, and is not comparable to audited total assets. The $174 million and $76 million investment-history totals are the manager's tallies of principal invested and returned and say nothing about gains or losses on the 26 completed positions. AltStreet read the deck from the 32 page images filed with the Form 1-U; figures were transcribed from those images. AltStreet has not reviewed the REIT's joint-venture agreements, loan documents or the Columbus workout terms. Nothing in this article is investment advice or a recommendation regarding any security. ## Key facts - Form 1-U filed September 9, 2026 (accession 0001493152-26-041825) attaches a 32-page investor communication dated September 8 covering the six months ended June 30, 2026. - NAV per share $6.85 as of March 31, 2026 (announced June 1), down from $7.49 at December 31, 2025 and $7.67 at September 30, 2025; no June 30 NAV announced as of September 9. - Distributions set at 3.0% of NAV annualized for Q1 2026 and 1.5% for Q2 2026 (daily rate $0.0003078082 April to May, $0.0002815068 in June), per the July 17 Form 1-U; the rate was 6% until Q4 2024. - Management states share repurchase requests exceeded the program's annual limits and were filled pro rata before the board suspended the program; the DRIP was suspended April 21, 2026. - Columbus Office Portfolio ($7,826,619 JV equity, acquired November 5, 2019): 74% occupancy, loan matured December 2025, one building sold to pay down the senior loan; management does not believe any equity value remains. - Kings Landing ($11,609,066): refinanced with fixed-rate agency debt plus preferred equity; REIT member loans of $291,566, $3,200,000 and $117,500 rank ahead of common equity distributions. - Total asset value $479 million as of March 31, 2026, before the August 20 sales; 16 investments with $95,038,860 invested as of July 31, 2026; JV equity occupancy 92.1% in Q1 2026; 544 of 658 renovation units complete at a 16.8% rent premium. - Since August 2016: 42 investments totaling over $174 million, 26 gone full cycle returning over $76 million of principal, per the manager. ## Sources - RealtyMogul Income REIT, Inc. Form 1-U with Exhibit 99.1 investor communication dated September 8, 2026 (filed September 9, 2026): https://www.sec.gov/Archives/edgar/data/1669664/000149315226041825/ - Form 1-U: NAV per share of $6.85 as of March 31, 2026 (June 1, 2026): https://www.sec.gov/Archives/edgar/data/1669664/000149315226026620/form1-u.htm - Form 1-U: second-quarter 2026 distributions at 1.5% annualized (July 17, 2026): https://www.sec.gov/Archives/edgar/data/1669664/000149315226033775/form1-u.htm - Form 1-U: first-quarter 2026 distributions at 3.0% annualized (April 15, 2026): https://www.sec.gov/Archives/edgar/data/1669664/000149315226016745/form1-u.htm - Form 1-U: conversion to a Maryland corporation and DRIP suspension (April 29, 2026): https://www.sec.gov/Archives/edgar/data/1669664/000149315226019655/form1-u.htm - Form 1-U: NAV per share of $7.49 as of December 31, 2025 (January 28, 2026): https://www.sec.gov/Archives/edgar/data/1669664/000149315226004042/form1-u.htm - Form 1-U: sale of Edison Apartments, Roosevelt Commons and Minnehaha Meadows (August 27, 2026): https://www.sec.gov/Archives/edgar/data/1669664/000149315226040457/form1-u.htm - RealtyMogul Income REIT Sells Three Pacific Northwest Multifamily Assets at Deep Losses to Underwriting: https://altstreet.investments/news/realtymogul-income-reit-pacific-northwest-multifamily-sale-2026-2026-08-27 - RealtyMogul review: https://altstreet.investments/platforms/reviews/realtymogul ## SEC accession numbers - 0001493152-26-041825 --- Source page: https://altstreet.investments/news/realtymogul-income-reit-1h-2026-update-nav-6-85-distribution-halved-2026-09-09 Machine index: https://altstreet.investments/llms.txt AltStreet reads what platforms, funds and issuers file with the SEC and what they tell investors, and publishes the difference. Figures are as filed or as captured on the date stated; nothing here is investment advice.