REICI Corp Bond Offering

This new way is based on the combination of a “Corporate Bond” and a structured “Real Estate Credit Facility”, made possible by the “Portfolio Debt Exception” recorded on the blockchain as a “Digital Asset Security.” (aka: STO)

The REICI Bonds will provide the Debt financing for portfolio acquisitions and adhere to the following underwriting requirements.  Adherence to Underwriting standards is essential to establishing confidence with bond investors.

• REICI will maintain an average Loan to Value Ratio (LTV) of between  65% – 70%. Where the “value” is the acquisition price. An LTV ratio is calculated by dividing the amount borrowed by the lesser of the appraised value or purchase price of the property, expressed as a percentage. The balance of the capital required for acquisitions will be from Equity Investors. For commercial real estate the financial institutional standard is 75% or less.

• REICI will maintain an average Debt Service Coverage ratio (DSCR) of 1.25x. The DSCR is a measurement of the cash flow available to pay current debt obligations. The ratio states net operating income as a multiple of debt obligations due within one year, including interest and principal. For commercial real estate the financial institutional minimum standard is between 1.15x and 1.5x

• REICI will obtain an appraisal from a nationally recognized appraisal firm (i.e. CBRE) prior to closing on any acquisition and will not pay a price above the appraised value.

No U.S. commercial real estate firm has ever offered an International Bond like this before.