M&A - USQ Core Real Estate Fund

Form Type: N-CSR

Filing Date: 2025-06-06

Corporate Action: Acquisition

Type: New

Accession Number: 000139834425011467

Filing Summary: The USQ Core Real Estate Fund presents its annual report for the fiscal year ending March 31, 2025. The report details the Fund’s performance, including an acquisition of the net assets of a similar interval fund during a reorganization event, which is expected to enhance the Fund’s asset base, reduce the expense ratio, and broaden distribution opportunities. Despite challenges in the commercial real estate market over the past three years, the Fund’s annualized return was +2.37%, with a small positive return of +0.43% in the last six months of the reporting period. The Fund's investment strategy aims to deliver income and capital appreciation with moderate volatility. The Fund continues to maintain low correlation with broader markets and a well-diversified portfolio, with particular strengths in industrial and retail properties. The report also discusses macroeconomic factors, including interest rate changes by the Federal Reserve, and reflects on the resilient fundamentals of core real estate. The Fund’s distribution policy includes quarterly distributions, with specific amounts indicated for each share class, and notes on the treatment of distributions for tax purposes are provided as well. Overall, the managing team expresses optimism for the Fund's future performance amidst a challenging market environment.