JER Investors Trust seeks to create a diversified portfolio

JER Investors Trust seeks to create a diversified portfolio

JER Investors Trust seeks to maintain broad investment diversity. Currently, the JER Investors Trust Board of Directors has established the following guidelines for JER Investors Trust’s investments and borrowings and we will follow such guidelines unless waived or changed, subject to approval by the Board of Directors.

JER Investors Trust’s Board of Directors has adopted the following general guidelines for JER Investors Trust’s investments and borrowings:

  • No investment shall be made that would cause JER Investors Trust to fail to qualify as a REIT for federal income tax purposes.
  • No investment shall be made that would cause JER Investors Trust to be regulated as an investment company under the Investment Company Act of 1940.
  • No more than 20% of JER Investors Trust’s equity, determined as of the date of each investment, shall be invested in any single asset, unless waived by the independent members of the JER Investors Trust Board of Directors.
  • JER Investors Trust’s debt-to-equity ratio shall generally be between four-to-one and six-to-one, depending on the characteristics of JER Investors Trust’s portfolio.
  • JER Investors Trust shall not co-invest with J.E. Robert Companies or any of its affiliates unless (i) such co-investment is otherwise in accordance with these guidelines and (ii) the terms of such co-investment are at least as favorable to JER Investors Trust as to J. E. Robert Companies or its affiliate making such co-investment.
  • No more than 10% of JER Investors Trust’s equity, determined as of the date of the applicable investment, shall be invested in assets outside of the United States or in non-U.S. dollar denominated securities.
  • The approval of the independent members of the JER Investors Trust Board of Directors is required before JER Investors Trust engages in any material transaction with J.E. Robert Companies or any of its affiliates.

These investment guidelines may be changed by the JER Investors Trust Board of Directors without stockholder approval.