UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 
WASHINGTON, D.C. 20549
 
FORM N-CSR
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
 
Fundrise Income Real Estate Fund, LLC
 
Investment Company Act file number 811-23745
 
11 Dupont Circle NW, 9th Floor
Washington, D.C. 20036
(Address of Principal Executive Offices)
 
(202) 584-0550
(Registrant’s Area Code and telephone number)
 
 
 
Bjorn J. Hall
Rise Companies Corp.
11 Dupont Circle NW, 9th Floor
Washington, D.C. 20036
(Name and Address of Agent for Service)
 
Copies to:
 
Paul J. Delligatti, Esq.
Kirkland & Ellis LLP
1301 Pennsylvania Avenue, N.W.
Washington, D.C. 20004
 
Date of fiscal year end: December 31
 
Date of reporting period: January 1, 2025 through June 30, 2025
 
 
 
Item 1.  Reports to Stockholders.
 
(a)
Fundrise
Income
Real
Estate
Fund,
LLC
Semi-Annual
Report
For
the
Six
Months
Ended
June
30,
2025
TABLE
OF
CONTENTS
Schedule
of
Investments
(Unaudited)
3
Statement
of
Assets
and
Liabilities
(Unaudited)
6
Statement
of
Operations
(Unaudited)
7
Statements
of
Changes
in
Net
Assets
8
Statement
of
Cash
Flows
(Unaudited)
9
Financial
Highlights
10
Notes
to
Financial
Statements
(Unaudited)
11
Additional
Information
(Unaudited)
25
Fundrise
Income
Real
Estate
Fund,
LLC
Schedule
of
Investments
(UNAUDITED)
June
30,
2025
3
See
accompanying
notes
to
financial
statements.
(Amounts
in
thousands)
Par/Shares
Description
Acquisition
Date
Value
as
of
June
30,
2025
Private
Real
Estate
-
75.1%
Equity
-
21.1%
Development
-
13.5%
N/A
Income
1
TRS,
LLC
|
Various
locations
(Cost
$66,899)
(1)(2)(3)(4)
03/31/22
$
83,764‌
Land
-
1.0%
N/A
FR
Fairfax,
LLC
|
Los
Angeles,
CA
(Cost
$3,787)
(1)(2)(3)(4)
01/10/24
$
3,250‌
N/A
FR
La
Brea,
LLC
|
Los
Angeles,
CA
(Cost
$3,300)
(1)(2)(3)(4)
04/30/25
3,300‌
Total
Land
(Cost
$7,087
)
$
6,550‌
Multifamily
-
6.6%
N/A
FR
MP
Brandon
Glen
JV,
LLC
|
Conyers,
GA
(Cost
$8,657)
(2)(3)(4)
03/31/22
$
13,610‌
N/A
Fundrise
Insight
Two
LLC
|
Arlington,
VA
(Cost
$1)
(1)(2)(3)(4)
03/31/22
1‌
N/A
Liberty
Hills
JV,
LP
|
Houston,
TX
(Cost
$7,031)
(2)(3)
03/31/22
7,479‌
N/A
Luxe
JV,
LP
|
Tampa,
FL
(Cost
$7,670)
(2)(3)
03/31/22
7,791‌
N/A
Presley
JV,
LP
|
Charlotte,
NC
(Cost
$4,852)
(2)(3)
03/31/22
5,118‌
N/A
The
View
JV
LP
|
Lewisville,
TX
(Cost
$6,105)
(2)(3)
03/31/22
6,507‌
Total
Multifamily
(Cost
$34,316
)
$
40,506‌
Total
Equity
(Cost
$108,302)
$
130,820‌
Mezzanine
Debt
-
2.7%
Multifamily
-
2.7%
$
7,067‌
RSE
Boat
Club
Investor,
LLC
|
Fort
Worth,
TX,
10.25%
+
SOFR,
14.54%
PIK,
09/27/25
(Cost
$9,799)
(2)(3)(5)(6)
09/27/22
$
9,799‌
2,691‌
RSE
Palomino
Investor,
LLC
|
Glendale,
AZ,
10.25%
+
SOFR,
14.54%
PIK,
08/28/26
(Cost
$3,273)
(2)(3)(5)(6)
02/28/23
3,265‌
3,017‌
RSE
Vista
Norte
Investor,
LLC
|
Anthem,
AZ,
10.25%
+
SOFR,
14.54%
PIK,
06/23/26
(Cost
$3,627)
(2)(3)(5)(6)
12/23/22
3,623‌
Total
Multifamily
(Cost
$16,699
)
$
16,687‌
Total
Mezzanine
Debt
(Cost
$16,699)
$
16,687‌
Preferred
Equity
-
29.5%
Hospitality
-
0.4%
$
2,229‌
Y
Hotel
Leveraged
Lender,
LLC
|
Pittsburgh,
PA,
15.50%,
11/13/19
(Cost
$2,229)
(2)(3)(4)(7)
03/31/22
$
2,150‌
Multifamily
-
29.1%
$
4,500‌
Breckenridge
Group
Springfield
Missouri,
LLC
|
Springfield,
MO,
13.50%,
01/01/26
(Cost
$4,500)
(2)(3)
03/31/22
$
4,500‌
16,393‌
Encore
Narcoossee,
LLC
|
Orlando,
FL,
9.85%,
9.85%
PIK,
12/29/25
(Cost
$20,947)
(2)(3)(6)
06/29/22
20,948‌
6,835‌
Fort
Myers
Reef
Holdings,
LLC
|
Fort
Myers,
FL,
10.90%,
4.07%
PIK,
09/01/28
(Cost
$9,825)
(1)(2)(3)(6)
03/31/22
9,841‌
10,787‌
Fundrise
Busbee
Investor,
LLC
|
Asheville,
NC,
15.00%,
11.00%
PIK,
01/10/29
(Cost
$12,194)
(1)(2)(3)(6)
12/04/23
12,233‌
1,538‌
Fundrise
East
Village
Investor
I,
LLC
|
Roswell,
GA,
14.25%,
14.25%
PIK,
04/23/27
(Cost
$1,823)
(1)(2)(3)(6)
04/24/24
1,825‌
9,161‌
Fundrise
Gainesville
Investor
I,
LLC
|
Gainesville,
FL,
13.00%,
13.00%
PIK,
09/21/25
(Cost
$11,397)
(2)(3)(6)
11/01/23
11,397‌
1,547‌
Fundrise
Highlands
Investor
I,
LLC
|
Knoxville,
TN,
15.50%,
11.50%
PIK,
02/09/27
(Cost
$1,743)
(1)(2)(3)(6)
02/09/24
1,745‌
15,359‌
Fundrise
Lemon
Creek
Investor
I,
LLC
|
Boerne,
TX,
13.50%,
13.50%
PIK,
10/15/28
(Cost
$16,039)
(2)(3)(6)
10/15/24
16,128‌
15,434‌
Fundrise
Mont
Belvieu
Investor
I,
LLC
|
Baytown,
TX,
13.50%,
13.50%
PIK,
09/26/28
(Cost
$16,328)
(2)(3)(6)
09/26/24
16,368‌
14,000‌
Fundrise
NoDa
Investor
I,
LLC
|
Charlotte,
NC,
13.00%,
13.00%
PIK,
07/02/28
(Cost
$14,415)
(2)(3)(6)
07/02/24
14,446‌
8,403‌
Fundrise
PB
Investor
I,
LLC
|
Palm
Bay,
FL,
13.00%,
13.00%
PIK,
10/08/26
(Cost
$10,503)
(1)(2)(3)(6)
10/19/23
10,509‌
2,263‌
Fundrise
Pelican
Investor
I,
LLC
|
Myrtle
Beach,
SC,
16.00%,
12.00%
PIK,
11/17/28
(Cost
$2,449)
(1)(2)(3)(6)
10/08/24
2,458‌
600‌
Fundrise
Providence
Commons
Investor
l,
LLC
|
Aubrey,
TX,
14.00%,
14.00%
PIK,
04/10/29
(Cost
$619)
(2)(3)(6)
04/10/25
621‌
10,960‌
Fundrise
PSL
Investor
I,
LLC
|
Port
St.
Lucie,
FL,
13.00%,
13.00%
PIK,
08/05/26
(Cost
$13,567)
(1)(2)(3)(6)
11/15/23
13,573‌
7,286‌
Fundrise
VB
Investor
I,
LLC
|
Vero
Beach,
FL,
13.00%,
13.00%
PIK,
01/0
5/27
(Cost
$9,019)
(1)(2)(3)(6)
11/15/23
9,025‌
Fundrise
Income
Real
Estate
Fund,
LLC
Schedule
of
Investments
(UNAUDITED)
(CONTINUED)
June
30,
2025
4
See
accompanying
notes
to
financial
statements.
Par/Shares
Description
Acquisition
Date
Value
as
of
June
30,
2025
Multifamily
-
29.1%
(continued)
$
4,160‌
RSE
Daytona
Investor
I,
LLC
|
Daytona
Beach,
FL,
13.50%,
13.50%
PIK,
02/05/26
(Cost
$5,330)
(1)(2)(3)(6)
02/09/23
$
5,331‌
1,800‌
RSE
Thompson
Reserve
Investor
I,
LLC
|
Scottsdale,
AZ,
13.85%,
10.35%
PIK,
05/11/26
(Cost
$2,129)
(1)(2)(3)(6)
05/09/23
2,130‌
14,570‌
SFR
Reflections
I,
LLC
|
Sunrise,
FL,
10.10%,
12/01/30
(Cost
$14,570)
(2)(3)
03/31/22
14,602‌
10,730‌
WP
Walcott
Hackensack
Sub,
LLC
|
Hackensack,
NJ,
14.00%,
14.00%
PIK,
01/29/26
(Cost
$12,492)
(2)(3)(6)
03/31/22
12,493‌
Total
Multifamily
(Cost
$179,889
)
$
180,173‌
Total
Preferred
Equity
(Cost
$182,118)
$
182,323‌
Promissory
Notes
-
17.0%
Development
-
17.0%
$
22,660‌
FR
Beeson,
LLC
|
Katy,
TX,
8.50%,
08/27/29
(Cost
$22,660)
(1)(2)(3)
03/31/22
$
22,696‌
8,224‌
FR
Cade's
Bluff,
LLC
|
Mt.
Juliet,
TN,
9.50%,
09/23/30
(Cost
$8,224)
(1)(2)(3)
09/23/22
8,226‌
7,694‌
FR
Castlewood,
LLC
|
Taylor,
TX,
9.00%,
05/02/30
(Cost
$7,694)
(1)(2)(3)
05/02/22
7,630‌
10,482‌
FR
Legacy
Hills,
LLC
|
Celina,
TX,
8.50%,
07/29/30
(Cost
$10,482)
(1)(2)(3)
07/29/22
10,390‌
11,462‌
FR
Meadow
Park,
LLC
|
Melissa,
TX,
9.50%,
09/01/29
(Cost
$11,462)
(1)(2)(3)
03/31/22
11,430‌
5,847‌
FR
Providence
Gardens,
LLC
|
Davenport,
FL,
8.50%,
02/24/30
(Cost
$5,847)
(1)(2)(3)
03/31/22
5,829‌
18,344‌
FR
Tom
Miller,
LLC
|
Bethlehem,
GA,
9.00%,
06/14/30
(Cost
$18,344)
(1)(2)(3)
06/15/22
18,253‌
7,868‌
FR
Trailside,
LLC
|
Mount
Dora,
FL,
8.50%,
08/22/30
(Cost
$7,868)
(1)(2)(3)
08/22/22
7,805‌
13,126‌
FR
Willow
Landing,
LLC
|
Nashville,
TN,
9.50%,
09/13/30
(Cost
$13,126)
(1)(2)(3)
09/13/22
13,129‌
193‌
FR
Wilsons
Walk,
LLC
|
Clayton,
NC,
9.00%,
10/04/29
(Cost
$193)
(1)(2)(3)
03/31/22
192‌
Total
Development
(Cost
$105,900
)
$
105,580‌
Total
Promissory
Notes
(Cost
$105,900)
$
105,580‌
Senior
Debt
-
4.8%
Land
-
4.8%
$
29,905‌
The
Station
East
Owner
II,
LLC
|
Union
City,
CA,
13.00%,
05/20/27
(Cost
$29,905)
(2)(3)
05/19/25
$
29,931‌
Total
Senior
Debt
(Cost
$29,905)
$
29,931‌
Total
Private
Real
Estate
(Cost
$442,924)
$
465,341‌
Common
Stock
-
1.5%
Mortgage
Real
Estate
Investment
Trust
-
1.5%
1,061
AGNC
Investment
Corp.
REIT
$
9,753‌
Total
Mortgage
Real
Estate
Investment
Trust
(Cost
$9,
92
2
)
$
9,753‌
Total
Common
Stock
(Cost
$9,922)
$
9,753‌
Commercial
Mortgage-Backed
Securities
-
20.0%
Non-U.S.
Government
Agency
Issues
-
20.0%
$
4,200‌
ACREC
2025
FL3
LLC
(D
Class),
3.04%
+
SOFR,
01/18/27
(5)(8)
$
4,189‌
2,500‌
ACREC
2025
FL3
LLC
(E
Class),
3.79%
+
SOFR,
01/18/27
(5)(8)
2,494‌
10,000‌
ARES
Commercial
Mortgage
Trust
2024-IND
(D
Class),
2.89%
+
SOFR,
07/15/26
(5)(8)
10,049‌
10,000‌
ARES
Commercial
Mortgage
Trust
2024-IND
(E
Class),
3.94%
+
SOFR,
07/15/26
(5)(8)
10,033‌
10,000‌
ARES
Commercial
Mortgage
Trust
2024-IND2
(E
Class),
3.44%
+
SOFR,
10/15/29
(5)(8)
10,037‌
5,740‌
ARES
Commercial
Mortgage
Trust
2025-IND3
(D
Class),
2.55%
+
SOFR,
04/15/27
(5)(8)
5,740‌
5,120‌
ARES
Commercial
Mortgage
Trust
2025-IND3
(E
Class),
3.55%
+
SOFR,
04/15/27
(5)(8)
5,125‌
2,000‌
BMP
2024-MF23
(D
Class),
2.39%
+
SOFR,
06/15/26
(5)(8)
2,007‌
2,878‌
BX
Commercial
Mortgage
Trust
2024-AIR2
(D
Class),
2.79%
+
SOFR,
10/15/26
(5)(8)
2,892‌
14,817‌
BX
Commercial
Mortgage
Trust
2024-AIRC
(D
Class),
3.09%
+
SOFR,
08/15/26
(5)(8)
14,910‌
4,000‌
BX
Commercial
Mortgage
Trust
2024-GPA2
(E
Class),
3.54%
+
SOFR,
11/15/26
(5)(8)
4,012‌
10,000‌
DBGS
Mortgage
Trust
2024-SBL
(C
Class),
2.99%
+
SOFR,
08/15/26
(5)(8)
10,014‌
2,100‌
GSAT
Trust
2025-BMF
(D
Class),
2.50%
+
SOFR,
07/15/30
(5)(8)
2,105‌
5,000‌
GSAT
Trust
2025-BMF
(E
Class),
3.30%
+
SOFR,
07/15/30
(5)(8)
5,018‌
16,100‌
GSAT
Trust
2025-BMF
(F
Class),
4.15%
+
SOFR,
07/15/30
(5)(8)
16,169‌
3,500‌
LBA
Trust
2024-7IND
(D
Class),
2.64%
+
SOFR,
10/15/26
(5)(8)
3,515‌
3,000‌
MF1
2025-FL17
LLC
(E
Class),
3.49%
+
SOFR,
07/18/26
(5)(8)
2,992‌
12,500‌
SWCH
Commercial
Mortgage
Trust
2025-DATA
(E
Class),
3.34%
+
SOFR,
02/15/27
(5)(8)
12,417‌
Total
Commercial
Mortgage-Backed
Securities
(Cost
$123,232)
$
123,718‌
Residential
Mortgage-Backed
Securities
-
3.8%
Non-U.S.
Government
Agency
Issues
-
3.8%
$
17,000‌
New
Residential
Mortgage
Loan
Trust
2022-SFR2
(F
Class),
4.00%,
09/04/27
(8)
$
15,916‌
7,745‌
Progress
Residential
2022-SFR7
Trust
(E1
Class),
6.75%,
10/27/27
(8)
7,813‌
Total
Residential
Mortgage-Backed
Securities
(Cost
$22,830)
$
23,729‌
Fundrise
Income
Real
Estate
Fund,
LLC
Schedule
of
Investments
(UNAUDITED)
(CONTINUED)
June
30,
2025
5
See
accompanying
notes
to
financial
statements.
Par/Shares
Description
Acquisition
Date
Value
as
of
June
30,
2025
Short-Term
Investment
-
5.0%
31,015‌
JP
Morgan
U.S.
Treasury
Plus
Money
Market
Fund,
Capital
Shares,
4.29%
(9)
$
31,015‌
Total
Short-Term
Investment
(Cost
$31,015)
$
31,015‌
Total
investments,
at
value
-
105.4%
(Cost
$629,923)
$
653,556‌
Liabilities
in
excess
of
other
assets
-
(5.4)%
(33,709‌)
Total
Net
Assets
-
100.0%
$
619,847‌
LLC
Limited
Liability
Company
LP
Limited
Partnership
PIK
Payment
in
Kind
REIT
Real
Estate
Investment
Trust
SOFR
Secured
Overnight
Financing
Rate
(1)
Investment
in
an
affiliate.
See
Note
6,
Investment
Manager
and
Other
Related
Party
Transactions
for
additional
information.
(2)
Investments
classified
as
Level
3
within
the
three-tier
fair
value
hierarchy.
See
the
accompanying
notes
to
the
financial
statements
for
an
explanation
of
this
hierarchy,
as
well
as
a
list
of
significant
unobservable
inputs
used
in
the
valuation
of
these
instruments.
(3)
Restricted
security.
The
aggregate
value
of
restricted
securities
at
June
30,
2025
is
approximately
$465,341
(amount
in
thousands)
and
represents
approximately
75.1%
of
net
assets.
See
Note
2,
Summary
of
Significant
Accounting
Policies
for
additional
information.
(4)
Non-income
producing
investment.
(5)
This
investment
has
a
floating
interest
rate.
Coupon
rate,
reference
index
and
spread
shown
at
June
30,
2025.
(6)
A
portion
of
the
interest
on
the
investment
is
PIK.
A
separate
rate
is
disclosed
for
the
PIK
interest
component.
See
Note
2,
Summary
of
Significant
Accounting
Policies
for
additional
information.
(7)
As
of
June
30,
2025,
this
investment
had
incurred
an
event
of
default
due
to
non-payment
of
outstanding
principal
and
contractual
interest,
and
is
non-accrual.
The
real
estate
investment
is
secured
by
the
underlying
property.
(8)
Security
is
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
to
qualified
institutional
buyers
in
transactions
exempt
from
registration.
The
aggregate
value
of
these
securities
at
June
30,
2025
is
approximately
$147,447
(amount
in
thousands)
and
represents
approximately
23.8%
of
net
assets.
(9)
Rate
disclosed
is
representative
of
the
seven-day
effective
yield
as
of
June
30,
2025.
Geographic
Composition
as
of
June
3
0
,
202
5
Percent
of
Total
Investments
Florida
17.9‌
%
Texas
16.7‌
%
California
5.6‌
%
Georgia
5.1‌
%
North
Carolina
4.9‌%
Tennessee
3.5‌%
New
Jersey
1.9‌%
Arizona
1.4‌%
Missouri
0.7‌%
South
Carolina
0.4‌%
Pennsylvania
0.3‌%
Virginia
0.0‌%
(1)
Other
41.6‌%
100.0‌%
(1)
Value
is
less
than
0.05%
of
Total
Investments.
Fundrise
Income
Real
Estate
Fund,
LLC
STATEMENT
OF
ASSETS
AND
LIABILITIES
(UNAUDITED)
June
30,
2025
6
See
accompanying
notes
to
financial
statements.
(Amounts
in
thousands,
except
share
and
per
share
data)
Assets
Investments
in
unaffiliated
entities,
at
fair
value
(Cost
$381,454)
$
388,991‌
Investments
in
non-controlled
affiliated
entities,
at
fair
value
(Cost
$174,483)
174,251‌
Investments
in
majority
owned
subsidiaries,
at
fair
value
(Cost
$73,986)
90,314‌
Cash
1,927‌
Interest
and
dividend
receivable
from
unaffiliated
investments
1,149‌
Interest
and
dividend
receivable
from
non-controlled
affiliated
investments
910‌
Prepaid
expenses
188‌
Total
Assets
$
657,730‌
Liabilities
Payable
for
investments
purchased
$
23,200‌
Distributions
payable
11,242‌
Marketing
expense
payable
885‌
Interest
received
in
advance
from
unaffiliated
investments
578‌
Settling
subscriptions
538‌
Accounts
payable
and
accrued
expenses
519‌
Management
fees
payable
429‌
Interest
received
in
advance
from
non-controlled
affiliated
investments
270‌
Redemptions
payable
140‌
Real
estate
operating
fees
payable
82‌
Total
Liabilities
$
37,883‌
Total
Net
Assets
$
619,847‌
Components
of
Net
Assets
Paid-in
capital
$
610,431‌
Distributable
earnings
9,416‌
Total
Net
Assets
$
619,847‌
Net
Asset
Value
Net
assets
$
619,847‌
Common
shares
outstanding
as
of
June
30,
2025;
unlimited
shares
authorized
61,971,919‌
Net
Asset
Value
Per
Share
$
10.00‌
Fundrise
Income
Real
Estate
Fund,
LLC
STATEMENT
OF
OPERATIONS
(UNAUDITED)
FOR
THE
SIX
MONTHS
ENDED
JUNE
30,
2025
7
See
accompanying
notes
to
financial
statements.
(Amounts
in
thousands)
Investment
Income
Interest
income
from
unaffiliated
investments
$
7,632‌
Interest
income
from
non-controlled
affiliated
investments
6,591‌
Interest
income
–
PIK
from
unaffiliated
investments
5,465‌
Interest
income
–
PIK
from
non-controlled
affiliated
investments
3,878‌
Dividend
income
from
unaffiliated
investments
2,461‌
Total
Investment
Income
$
26,027‌
Expenses
Management
fees
$
2,547‌
Marketing
expenses
1,485‌
Miscellaneous
expenses
467‌
Real
estate
operating
fees
428‌
Professional
fees
275‌
Custody
fees
220‌
Directors’
fees
85‌
Transfer
agent
fees
62‌
Interest
expense
41‌
Total
Expenses
$
5,610‌
Net
Investment
Income
(Loss)
$
20,417‌
Net
Realized
and
Unrealized
Gain
(Loss)
from
Investments
Net
realized
gain
(loss)
from
unaffiliated
investments
$
3,362‌
Net
change
in
unrealized
appreciation/depreciation
from
unaffiliated
investments
(3,400‌)
Net
change
in
unrealized
appreciation/depreciation
from
majority
owned
subsidiaries
2,848‌
Net
change
in
unrealized
appreciation/depreciation
from
non-controlled
affiliated
investments
(267‌)
Total
Net
Realized
and
Unrealized
Gain
(Loss)
from
Investments
$
2,543‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
22,960‌
Fundrise
Income
Real
Estate
Fund,
LLC
STATEMENTS
OF
CHANGES
IN
NET
ASSETS
8
See
accompanying
notes
to
financial
statements.
(Amounts
in
thousands)
For
the
Six
Months
Ended
June
30,
2025
(Unaudited)
For
the
Year
Ended
December
31,
2024
Operations:
Net
investment
income
(loss)
$
20,417‌
$
37,940‌
Net
realized
gain
(loss)
from
investments
3,362‌
(454‌)
Net
change
in
unrealized
appreciation/depreciation
from
investments
(819‌)
10,119‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
22,960‌
$
47,605‌
Distributions
to
Common
Shareholders
From:
Distributable
earnings
$
(22,500‌)
$
(45,997‌)
Net
Decrease
in
Net
Assets
from
Distributions
to
Common
Shareholders
$
(22,500‌)
$
(45,997‌)
Capital
Share
Transactions:
Proceeds
from
sale
of
shares
$
57,713‌
$
98,925‌
Distributions
reinvested
6,576‌
11,364‌
Repurchase
of
shares
(49,951‌)
(112,834‌)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
$
14,338‌
$
(2,545‌)
Net
Increase
(Decrease)
in
Net
Assets
$
14,798‌
$
(937‌)
Net
Assets:
Beginning
of
Period
$
605,049‌
$
605,986‌
End
of
Period
$
619,847‌
$
605,049‌
Fundrise
Income
Real
Estate
Fund,
LLC
STATEMENT
OF
CASH
FLOWS
(UNAUDITED)
FOR
THE
SIX
MONTHS
ENDED
JUNE
30,
2025
9
See
accompanying
notes
to
financial
statements.
(Amounts
in
thousands)
Operating
Activities:
Net
increase
(decrease)
in
net
assets
resulting
from
operations
$
22,960‌
Adjustments
to
reconcile
net
increase
(decrease)
in
net
assets
resulting
from
operations
to
net
cash
provided
by
(used
in)
operating
activities:
Investments
in
unaffiliated
entities
(100,690‌)
Investments
in
non-controlled
affiliated
entities
(4,428‌)
Net
change
in
investments
in
short-term
investments
21,373‌
Accretion
of
discounts
(387‌)
PIK
interest
from
unaffiliated
investments
(5,465‌)
PIK
interest
from
non-controlled
affiliated
investments
(3,878‌)
Net
realized
(gain)
loss
from
unaffiliated
investments
(3,362‌)
Net
change
in
unrealized
appreciation/depreciation
from
unaffiliated
investments
3,400‌
Net
change
in
unrealized
appreciation/depreciation
from
non-controlled
affiliated
investments
267‌
Net
change
in
unrealized
appreciation/depreciation
from
majority
owned
subsidiaries
(2,848‌)
Proceeds
from
sale
of
unaffiliated
investments
39,697‌
Proceeds
from
sale
of
non-controlled
affiliated
investments
41,754‌
Changes
in
assets
and
liabilities:
Net
(increase)
decrease
in
interest
and
dividend
receivable
from
non-controlled
affiliated
investments
331‌
Net
(increase)
decrease
in
interest
and
dividend
receivable
from
unaffiliated
investments
(237‌)
Net
(increase)
decrease
in
prepaid
expenses
(97‌)
Net
increase
(decrease)
in
management
fees
payable
(3‌)
Net
increase
(decrease)
in
marketing
expense
payable
885‌
Net
increase
(decrease)
in
settling
subscriptions
(747‌)
Net
increase
(decrease)
in
interest
received
in
advance
from
unaffiliated
investments
(666‌)
Net
increase
(decrease)
in
interest
received
in
advance
from
non-controlled
affiliated
investments
(78‌)
Net
increase
(decrease)
in
accounts
payable
and
accrued
expenses
(3‌)
Net
increase
(decrease)
in
real
estate
operating
fees
payable
18‌
Net
cash
provided
by
(used
in)
operating
activities
$
7,796‌
Financing
Activities:
Proceeds
from
sale
of
shares
$
57,713‌
Cash
paid
for
shares
repurchased
(49,945‌)
Distributions
paid
(15,756‌)
Net
cash
provided
by
(used
in)
financing
activities
$
(7,988‌)
Net
increase
(decrease)
in
cash
$
(192‌)
Cash,
beginning
of
period
2,119‌
Cash,
end
of
period
$
1,927‌
Supplemental
Disclosure
of
Non-Cash
Activity:
Distributions
reinvested
$
6,576‌
Purchase
of
private
real
estate
equity
through
restructuring
of
investment
in
affiliated
entity
3,445‌
Sale
of
private
real
estate
debt
through
restructuring
of
investment
in
unaffiliated
entity
3,298‌
Fundrise
Income
Real
Estate
Fund,
LLC
FINANCIAL
HIGHLIGHTS
10
See
accompanying
notes
to
financial
statements.
These
financial
highlights
reflect
selected
data
for
a
share
outstanding
throughout
each
period.
For
the
Six
Months
Ended
June
30,
2025
For
the
Years
Ended
December
31,
February
3,
2022
(1)
Through
(Unaudited)
2024
2023
December
31,
2022
Net
Asset
Value,
Beginning
of
Period
$
10.00‌
$
9.97‌
$
10.00‌
$
10.00‌
Income
from
Investment
Operations
Net
investment
income
(loss)
(2)
$
0.34‌
$
0.65‌
$
0.69‌
$
0.42‌
Net
realized
and
unrealized
gain
(loss)
on
investments
0.03‌
0.16‌
0.08‌
0.04‌
Total
Income
(Loss)
from
Investment
Operations
$
0.37‌
$
0.81‌
$
0.77‌
$
0.46‌
Distributions
to
Common
Shareholders
From:
Net
investment
income
$
(0.37‌)
$
(0.78‌)
$
(0.80‌)
$
(0.40‌)
Net
realized
gain
–‌
–‌
–‌
(0.06‌)
Total
Distributions
to
Common
Shareholders
$
(0.37‌)
$
(0.78‌)
$
(0.80‌)
$
(0.46‌)
Net
Asset
Value,
End
of
Period
$
10.00‌
$
10.00‌
$
9.97‌
$
10.00‌
Total
Investment
Return
Based
on
Net
Asset
Value
(3)
3.76‌%
(4)
8.40‌%
7.93‌%
4.60‌%
(5)
Ratios
and
Supplemental
Data
Net
assets
at
end
of
period
(thousands)
$
619,847‌
$
605,049‌
$
605,986‌
$
535,285‌
Including
interest
expense:
Ratio
of
gross
expenses
to
average
net
assets
(6)(7)
1.87‌%
(8)
2.00‌%
1.33‌%
1.42‌%
(9)
Ratio
of
net
expenses
to
average
net
assets
(7)
1.87‌%
(8)
2.00‌%
1.33‌%
1.49‌%
(9)(10)
Ratio
of
net
investment
income
to
average
net
assets
(7)
6.81‌%
(8)
6.48‌%
6.96‌%
5.61‌%
(9(10)
Excluding
interest
expense:
Ratio
of
gross
expenses
to
average
net
assets
(6)(7)
1.85‌%
(8)
2.00‌%
1.33‌%
1.42‌%
(9)
Ratio
of
net
expenses
to
average
net
assets
(7)
1.85‌%
(8)
2.00‌%
1.33‌%
1.49‌%
(9)(10)
Ratio
of
net
investment
income
to
average
net
assets
(7)
6.83‌%
(8)
6.48‌%
6.96‌%
5.61‌%
(9(10)
Portfolio
turnover
rate
14‌%
(4)(11)
31‌%
(11)
27‌%
13‌%
(12)
(1)
Effective
date
of
the
Fund's
Registration
Statement.
(2)
Based
on
average
shares
outstanding
during
each
period.
(3)
Total
investment
return
based
on
net
asset
value
is
based
upon
the
change
in
net
asset
value
per
share
between
the
opening
and
ending
net
asset
values
per
share
in
the
period
indicated
and
assumes
that
dividends
are
reinvested
in
accordance
with
the
Fund’s
dividend
reinvestment
policy.
Returns
shown
do
not
reflect
the
deduction
of
taxes
that
a
Shareholder
would
pay
on
Fund
distributions
or
the
repurchase
of
Fund
shares.
(4)
Not
annualized.
(5)
Total
investment
return
based
on
net
asset
value
was
calculated
from
the
date
the
Fund
commenced
investment
operations,
April
1,
2022,
and
is
not
annualized.
(6)
Reflects
the
expense
ratio
excluding
any
waivers
and/or
reimbursements.
(7)
Expenses
do
not
include
operating
expenses
of
the
underlying
investments
or
expenses
of
investment
companies.
(8)
Annualized.
(9)
Ratios
were
calculated
from
the
date
the
Fund
commenced
investment
operations,
April
1,
2022,
and
are
annualized.
(10)
Ratio
is
net
of
a
waiver
of
0.02%
and
is
inclusive
of
fee
recoupment
of
0.07%.
(11)
Excludes
the
impact
of
in-kind
transactions.
(12)
Portfolio
turnover
rate
was
calculated
from
the
date
the
Fund
commenced
investment
operations,
April
1,
2022,
and
is
not
annualized.
This
alternative
presents,
in
all
material
aspects,
the
most
accurate
portrayal
of
portfolio
turnover.
Fundrise
Income
Real
Estate
Fund,
LLC
Notes
to
Financial
Statements
(UNAUDITED)
June
30,
2025
11
1.
Formation
and
Organization
Fundrise
Income
Real
Estate
Fund,
LLC
(the
“Fund”
or
the
“Registrant”)
is
a
Delaware
limited
liability
company
and
has
elected
to
be
taxed
as
a
real
estate
investment
trust
(a
“REIT”)
for
U.S.
federal
income
tax
purposes
under
Part
II
of
Subchapter
M
of
Chapter
1
of
the
Internal
Revenue
Code
of
1986,
as
amended
(the
“Code”),
commencing
with
its
taxable
year
ended
December
31,
2022,
and
intends
to
continue
to
qualify
as
a
REIT.
The
Fund
is
organized
as
a
continuously
offered,
non-diversified,
closed-end
management
investment
company
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
that
operates
as
an
interval
fund.
The
Fund’s
registration
statement
was
declared
effective
on
February
3,
2022.
The
Fund
commenced
investment
operations
on
April
1,
2022,
following
a
tax-free
reorganization
on
March
31,
2022.
The
Fund’s
investment
objective
is
to
seek
current
income
from
which
to
pay
attractive,
consistent
cash
distributions
while
preserving
capital.
Under
normal
circumstances,
the
Fund’s
investment
strategy
is
to
invest
at
least
80%
of
its
net
assets
(plus
the
amount
of
any
borrowings
for
investment
purposes)
in
residential
and
commercial
real
estate,
the
securities
of
real
estate
and
real
estate-related
issuers,
and
real
estate-related
loans
or
other
real
estate-related
debt
securities.
The
investment
adviser
to
the
Fund
is
Fundrise
Advisors,
LLC
(the
“Adviser”),
an
investment
adviser
registered
with
the
U.S.
Securities
and
Exchange
Commission
(“SEC”)
under
the
Investment
Advisers
Act
of
1940,
as
amended.
The
Adviser
is
a
wholly-
owned
subsidiary
of
Rise
Companies
Corp.
(“Rise
Companies”
or
the
“Sponsor”),
the
Fund’s
sponsor.
Subject
to
the
supervision
of
the
Board
of
Directors
of
the
Fund
(the
“Board”),
the
Adviser
is
responsible
for
directing
the
management
of
the
Fund’s
business
and
affairs,
managing
the
Fund’s
day-to-day
affairs,
and
implementing
the
Fund’s
investment
strategy.
2.
Summary
of
Significant
Accounting
Policies
Basis
of
Presentation
The
accompanying
financial
statements
of
the
Fund
are
prepared
in
accordance
with
accounting
principles
generally
accepted
in
the
United
States
(“U.S.
GAAP”).
The
Fund
is
an
investment
company
and
follows
the
accounting
and
reporting
guidance
in
the
Financial
Accounting
Standards
Board
(“FASB”)
Accounting
Standards
Codification
(“ASC”)
Topic
946,
Financial
Services
-
Investment
Companies
(“ASC
946”).
The
Fund
maintains
its
financial
records
in
U.S.
dollars
and
follows
the
accrual
basis
of
accounting.
The
estimates
and
assumptions
underlying
these
financial
statements
are
based
on
information
available
as
of
June
30,
2025,
including
judgments
about
the
financial
market
and
economic
conditions
which
may
change
over
time.
Estimates
The
preparation
of
financial
statements
in
conformity
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
revenues
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
Interest
Received
in
Advance
When
a
real
estate
debt
investment
is
funded
net
of
an
interest
reserve
holdback
and
the
holdback
is
held
by
the
Fund,
the
Fund
accounts
for
the
holdback
funds
by
classifying
them
as
interest
received
in
advance.
As
interest
is
incurred
by
the
borrower,
the
Fund
recognizes
interest
income
and
reduces
the
interest
received
in
advance
until
such
time
that
the
reserve
is
exhausted
or
the
real
estate
debt
investment
is
redeemed.
Any
remaining
interest
received
in
advance
will
be
applied
to
the
real
estate
debt
investment
balance
upon
redemption.
Valuation
Oversight
Pursuant
to
SEC
Rule
2a-5
under
the
1940
Act,
the
Board
has
approved
the
Adviser
as
the
Fund’s
Valuation
Designee
(“Valuation
Designee”),
to
provide
administration
and
oversight
of
the
Fund’s
valuation
policies
and
procedures.
The
Fund
values
its
investments
in
accordance
with
such
procedures.
Generally,
portfolio
securities
and
other
assets
for
which
market
quotations
are
readily
available
are
valued
at
market
value,
which
is
ordinarily
determined
on
the
basis
of
official
closing
prices
or
the
last
reported
sales
prices.
If
Fundrise
Income
Real
Estate
Fund,
LLC
Notes
to
Financial
Statements
(UNAUDITED)(Continued)
June
30,
2025
12
market
quotations
are
not
readily
available
or
are
deemed
unreliable,
the
Fund
will
use
the
fair
value
of
the
securities
or
other
assets
as
determined
by
the
Adviser
in
good
faith,
taking
into
consideration
all
available
information
and
other
factors
that
the
Adviser
deems
pertinent,
in
each
case
subject
to
the
overall
supervision
and
responsibility
of
the
Board.
In
calculating
the
Fund’s
net
asset
value
(“NAV”),
the
Adviser,
subject
to
the
oversight
of
the
Board,
uses
various
valuation
methodologies.
To
the
extent
practicable,
the
Adviser
generally
endeavors
to
maximize
the
use
of
observable
inputs
and
minimize
the
use
of
unobservable
inputs
by
requiring
that
the
most
observable
inputs
are
to
be
used
when
available.
The
availability
of
valuation
techniques
and
observable
inputs
can
vary
from
investment
to
investment
and
are
affected
by
a
wide
variety
of
factors.
When
valuation
is
based
on
models
or
inputs
that
are
less
observable
or
unobservable
in
the
market,
the
determination
of
fair
value
requires
more
judgment,
and
may
involve
alternative
methods
to
obtain
fair
values
where
market
prices
or
market-based
valuations
are
not
readily
available.
As
a
result,
the
Adviser
may
exercise
a
higher
degree
of
judgment
in
determining
fair
value
for
certain
securities
or
other
assets.
Fair
Value
Measurement
The
following
is
a
current
summary
of
certain
methods
generally
used
to
value
investments
of
the
Fund
under
the
Fund’s
valuation
procedures:
The
Fund
applies
FASB
ASC
Topic
820,
Fair
Value
Measurement,
as
amended,
which
establishes
a
framework
for
measuring
fair
value
in
accordance
with
U.S.
GAAP
and
required
disclosures
of
fair
value
measurement.
U.S.
GAAP
defines
the
fair
value
as
the
price
that
the
Fund
would
receive
to
sell
an
asset
or
pay
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
Fund
determines
the
fair
value
of
certain
investments
in
accordance
with
the
fair
value
hierarchy
that
requires
an
entity
to
maximize
the
use
of
observable
inputs.
The
fair
value
hierarchy
includes
the
following
three
levels
based
on
the
objectivity
of
the
inputs,
which
were
used
for
categorizing
the
assets
or
liabilities
for
which
fair
value
is
being
measured
and
reported:
Level
1
–
Quoted
market
prices
in
active
markets
for
identical
assets
or
liabilities.
Level
2
–
Significant
other
observable
inputs
(e.g.,
quoted
prices
for
similar
items
in
active
markets,
quoted
prices
for
identical
or
similar
items
in
markets
that
are
not
active,
inputs
other
than
quoted
prices
that
are
observable
such
as
interest
rate
and
yield
curves,
and
market-corroborated
inputs).
Level
3
–
Valuation
generated
from
model-based
techniques
that
use
inputs
that
are
significant
and
unobservable
in
the
market.
These
unobservable
assumptions
reflect
estimates
of
inputs
that
market
participants
would
use
in
pricing
the
asset
or
liability.
Valuation
techniques
may
include
use
of
discounted
cash
flow
methodologies
or
similar
techniques,
which
incorporate
management’s
own
estimates
of
assumptions
that
market
participants
would
use
in
pricing
the
instrument
or
other
valuation
assumptions
that
require
significant
management
judgment
or
estimation.
The
Fund’s
real
estate
equity
investments
are
generally
fair
valued
based
on
a
discounted
cash
flow
analysis,
direct
capitalization
method
or
other
income
approach,
or
by
a
sales
comparison
or
cost
approach.
The
Adviser
accounts
for
properties
at
the
individual
property
level
and
such
assets
are
fair
valued
using
inputs
that
consider
property-level
data
that
is
gathered
and
evaluated
periodically
to
reflect
new
information
(e.g.,
rental
payment
history)
regarding
the
property
or
the
appreciation
interest,
if
any.
Properties
held
through
joint
ventures
generally
will
be
valued
in
a
manner
that
is
consistent
with
the
methods
described
above.
Once
the
value
of
a
property
held
by
the
joint
venture
is
determined,
the
Adviser
will
separately
determine
the
fair
value
of
any
other
assets
and
liabilities,
including
notes
payable,
of
the
joint
venture.
The
fair
values
of
notes
payable
are
generally
determined
by
the
yield
or
equity
method
via
discounted
cash
flow
analysis
using
current
market
rates
derived
from
observable
market
data.
The
Fund’s
ownership
interests
are
valued
based
on
the
Fund’s
ownership
interest
in
the
joint
venture’s
net
assets,
including
the
fair
value
of
the
underlying
real
estate.
The
initial
value
of
the
Fund’s
real
estate
debt
investments
in
loans,
including
senior
mortgage
loans,
subordinated
mortgage
loans
(also
referred
to
as
B-Notes)
and
mezzanine
loans,
will
generally
be
the
par
value
acquisition
price
of
such
instrument.
The
Adviser
Fundrise
Income
Real
Estate
Fund,
LLC
Notes
to
Financial
Statements
(UNAUDITED)(Continued)
June
30,
2025
13
will
generally
determine
subsequent
revaluations
of
the
Fund’s
real
estate
debt
investments
by
the
yield
or
equity
method
via
a
discounted
cash
flow
analysis
that
uses
current
market
rates
derived
from
observable
market
data.
Fixed
income
securities
are
valued
by
an
independent
pricing
service
overseen
by
the
Valuation
Designee.
The
pricing
service
employs
a
pricing
model
that
takes
into
account,
among
other
things,
bids,
yield
spreads
and/or
other
market
data
and
specific
security
characteristics.
In
the
event
prices
or
quotations
are
not
readily
available
or
that
the
application
of
these
valuation
methods
results
in
a
price
for
an
investment
that
is
deemed
to
be
not
representative
of
the
fair
value
of
such
investment,
fair
value
will
be
determined
in
good
faith
by
the
Valuation
Designee,
in
accordance
with
the
valuation
policy
and
procedures
approved
by
the
Board.
These
securities
are
generally
classified
in
Level
2
of
the
fair
value
hierarchy.
Investments
in
registered
investment
companies,
including
money
market
funds,
are
valued
at
the
NAV
as
of
the
close
of
each
business
day.
These
securities
are
generally
classified
in
Level
1
of
the
fair
value
hierarchy.
Common
stock
securities
are
valued
as
of
the
close
of
the
regular
session
of
trading
on
the
New
York
Stock
Exchange
(“NYSE”)
(currently
4:00
p.m.,
Eastern
Time
or
at
the
time
as
of
which
the
NYSE
establishes
official
closing
prices).
Common
stock
securities
traded
on
stock
exchanges
are
valued
at
the
last
reported
sale
price,
official
close
price,
or
last
bid
price
if
no
sales
are
reported.
To
the
extent
these
securities
are
actively
traded,
they
are
categorized
in
Level
1
of
the
fair
value
hierarchy.
Due
to
the
inherent
uncertainty
of
determining
the
fair
value
of
investments
that
do
not
have
a
readily
available
market
value,
the
fair
value
of
the
Fund’s
investments
may
differ
significantly
from
the
values
that
would
have
been
used
had
a
readily
available
market
value
existed
for
such
investments,
and
the
differences
could
be
material.
The
following
is
a
summary
of
the
Fund’s
assets
measured
at
fair
value
on
a
recurring
basis
as
of
June
30,
2025
,
and
indicates
the
fair
value
hierarchy
of
the
inputs
utilized
by
the
Fund
to
determine
such
fair
value
(amounts
in
thousands)
:
Level
1
Level
2
Level
3
Total
Private
Real
Estate
Equity
$
–‌
$
–‌
$
130,820‌
$
130,820‌
Private
Real
Estate
Mezzanine
Debt
–‌
–‌
16,687‌
16,687‌
Private
Real
Estate
Preferred
Equity
–‌
–‌
182,323‌
182,323‌
Private
Real
Estate
Promissory
Notes
–‌
–‌
105,580‌
105,580‌
Private
Real
Estate
Senior
Debt
–‌
–‌
29,931‌
29,931‌
Common
Stock
9,753‌
–‌
–‌
9,753‌
Commercial
Mortgage-Backed
Securities
–‌
123,718‌
–‌
123,718‌
Residential
Mortgage-Backed
Securities
–‌
23,729‌
–‌
23,729‌
Short-Term
Investments
31,015‌
–‌
–‌
31,015‌
Total
Investments
$
40,768‌
$
147,447‌
$
465,341‌
$
653,556‌
Fundrise
Income
Real
Estate
Fund,
LLC
Notes
to
Financial
Statements
(UNAUDITED)(Continued)
June
30,
2025
14
The
following
is
a
summary
of
quantitative
information
about
the
significant
unobservable
inputs
used
to
determine
the
fair
value
of
the
Fund’s
Level
3
investments
as
of
June
30,
2025
(amounts
in
thousands)
.
The
weighted
average
range
of
unobservable
inputs
is
based
on
the
fair
value
of
investments.
Various
valuation
techniques
were
used
in
the
valuation
of
certain
investments
and
weighted
based
on
the
level
of
significance.
The
tables
are
not
intended
to
be
all-inclusive
but
instead
capture
the
significant
unobservable
inputs
relevant
to
the
Fund’s
determination
of
fair
value.
The
following
is
a
reconciliation
of
investments
in
which
significant
unobservable
inputs
(Level
3)
were
used
in
determining
fair
value
(amounts
in
thousands)
:
Restricted
Securities
The
Fund
may
purchase
securities
for
which
there
is
a
limited
trading
market
or
which
are
subject
to
restrictions
on
resale
to
the
public.
Restricted
securities
and
securities
for
which
there
is
a
limited
trading
market
may
be
significantly
more
difficult
to
value
due
to
the
unavailability
of
reliable
market
quotations
for
such
securities,
and
investment
in
such
securities
may
have
an
adverse
impact
on
NAV.
The
Fund
may
purchase
Rule
144A
securities
for
which
there
may
be
a
secondary
market
of
qualified
institutional
buyers
Investment
Fair
Value
Valuation
Technique
Unobservable
Input
Range
(Weighted
Average)
Impact
to
Valuation
from
an
Increase
in
Input
(1)
Private
Real
Estate
Equity
$
130,820
Direct
Capitalization
Capitalization
Rate
(2)
5.2%
-
5.8%
(5.3%)
Decrease
Discounted
Cash
Flow
Discount
Rate
(2)
8.5%
-
11.5%
(10.2%)
Decrease
Sales
Comparison
Approach
Price
Per
Unit
($)
$55
-
$156
($95)
Increase
Private
Real
Estate
Mezzanine
Debt
16,687
Discounted
Cash
Flow
Discount
Rate
15.5%
Decrease
Private
Real
Estate
Preferred
Equity
182,323
Discounted
Cash
Flow
Discount
Rate
9.9%
-
16.0%
(12.7%)
Decrease
Liquidation
Approach
Discount
Rate
10.5%
Decrease
Liquidation
Approach
Capitalization
Rate
8.5%
Decrease
Private
Real
Estate
Promissory
Notes
105,580
Discounted
Cash
Flow
Discount
Rate
8.5%
-
10.5%
(9.4%)
Decrease
Private
Real
Estate
Senior
Debt
29,931
Discounted
Cash
Flow
Discount
Rate
13.0%
Decrease
Total
Investments
$
465,341
(1)
Represents
the
expected
directional
change
in
the
fair
value
of
the
Level
3
investments
that
would
result
from
an
increase
in
the
corresponding
unobservable
input.
A
decrease
to
the
unobservable
input
would
have
the
opposite
effect.
Significant
changes
in
these
inputs
could
result
in
significantly
higher
or
lower
fair
value
measurements.
(2)
Represents
the
significant
unobservable
input
used
to
fair
value
the
underlying
real
estate
properties
of
the
joint
ventures.
The
fair
value
of
such
financial
instruments
is
the
largest
component
of
the
valuation
of
each
joint
venture
as
a
whole.
Private
Real
Estate
Equity
Private
Real
Estate
Mezzanine
Debt
Private
Real
Estate
Preferred
Equity
Private
Real
Estate
Promissory
Notes
Private
Real
Estate
Senior
Debt
Total
Balance
as
of
December
31,
2024
$
132,458‌
$
15,068‌
$
142,486‌
$
147,410‌
$
24,390‌
$
461,812‌
Purchases
3,300‌
(1)
470‌
41,737‌
–‌
29,905‌
75,412‌
PIK
interest
–‌
1,171‌
8,172‌
–‌
–‌
9,343‌
Realized
gain
(loss)
3,504‌
–‌
–‌
–‌
(143‌)
3,361‌
Net
change
in
unrealized
appreciation/
depreciation
(706‌)
(22‌)
(63‌)
(76‌)
21‌
(846‌)
Sales
(7,736‌)
–‌
(10,009‌)
(41,754‌)
(24,242‌)
(1)
(83,741‌)
Transfers
into
Level
3
–‌
–‌
–‌
–‌
–‌
–‌
Transfers
out
of
Level
3
–‌
–‌
–‌
–‌
–‌
–‌
Balance
as
of
June
30,
2025
$
130,820‌
$
16,687‌
$
182,323‌
$
105,580‌
$
29,931‌
$
465,341‌
Net
change
in
unrealized
appreciation/
depreciation
for
the
six
months
ended
June
30,
2025
related
to
Level
3
investments
held
at
June
30,
2025
$
2,523‌
$
(22‌)
$
(63‌)
$
(211‌)
$
26‌
$
2,253‌
(1)
Includes
in-kind
transactions.
Fundrise
Income
Real
Estate
Fund,
LLC
Notes
to
Financial
Statements
(UNAUDITED)(Continued)
June
30,
2025
15
as
contemplated
by
Rule
144A
under
the
Securities
Act.
Rule
144A
provides
an
exemption
from
the
registration
requirements
of
the
Securities
Act
for
the
resale
of
certain
restricted
securities
to
qualified
institutional
buyers.
Restricted
securities
held
at
June
30,
2025
are
identified
within
the
Schedule
of
Investments.
Reverse
Repurchase
Agreements
The
Fund
may
use
leverage
to
provide
additional
funds
to
support
its
investment
activities.
The
Fund
may
enter
into
reverse
repurchase
agreements
from
a
bank
or
dealer
at
a
specified
maturity
date,
under
which
the
Fund
will
effectively
pledge
its
assets
as
collateral
to
secure
a
short-term
loan.
Generally,
the
other
party
to
the
agreement
makes
the
loan
in
an
amount
equal
to
a
percentage
of
the
market
value
of
the
pledged
collateral.
At
the
maturity
of
the
reverse
repurchase
agreement,
the
Fund
will
be
required
to
repay
the
loan
and
correspondingly
receive
back
its
collateral.
While
used
as
collateral,
the
assets
continue
to
pay
principal
and
interest
which
are
for
the
benefit
of
the
Fund.
Interest
expense
on
reverse
repurchase
agreements
is
recorded
as
a
component
of
interest
expense
on
the
Statement
of
Operations.
As
of
June
30,
2025
there
were
no
open
reverse
repurchase
agreements
held
by
the
Fund.
Income
Taxes
The
Fund
has
elected
and
has
qualified
to
be
taxed
as
a
REIT
under
the
Code
beginning
with
the
taxable
year
ended
December
31,
2022,
and
intends
to
continue
to
qualify
as
a
REIT.
To
qualify
as
a
REIT,
the
Fund
must
meet
and
continue
to
meet
the
requirements
relating
to
the
Fund’s
organization,
ownership,
sources
of
income,
nature
of
assets
and
distributions
of
income
to
shareholders
of
the
Fund
(“Shareholders”),
including
a
requirement
to
distribute
at
least
90%
of
the
Fund’s
annual
REIT
taxable
income
to
the
Shareholders
(which
is
computed
without
regard
to
its
deduction
for
dividends
paid
and
its
net
capital
gains).
As
a
REIT,
the
Fund
generally
will
not
be
subject
to
U.S.
federal
income
tax
on
the
income
that
it
distributes
to
its
Shareholders
if
it
meets
the
applicable
REIT
distribution
and
other
requirements
for
qualification.
Even
if
the
Fund
qualifies
and
maintains
the
tax
status
as
a
REIT,
it
may
become
subject
to
certain
U.S.
federal
income
taxes
and
related
state
and
local
taxes
on
its
income
and
assets,
on
taxable
income
that
the
Fund
does
not
distribute
to
its
Shareholders,
on
net
income
from
certain
“prohibited
transactions”
and
on
income
from
some
activities
conducted
as
a
result
of
a
foreclosure,
and
state
or
local
income,
property
and
transfer
taxes.
The
tax
period
for
the
taxable
year
ending
December
31,
2022
and
all
tax
periods
following
remain
open
to
examination
by
the
major
taxing
authorities
in
all
jurisdictions
where
we
are
subject
to
taxation.
For
the
open
tax
periods,
the
Fund
has
no
uncertain
tax
positions
that
would
require
recognition
in
the
financial
statements.
Income
tax
and
related
interest
and
penalties
would
be
recognized
by
the
Fund
as
tax
expense
in
the
Statement
of
Operations
if
the
tax
positions
were
deemed
to
not
meet
the
more-likely-than-not
threshold.
For
the
six
months
ended
June
30,
2025,
the
Fund
did
not
incur
any
income
tax,
interest,
or
penalties.
Issuance
of
Shares
The
Fund
offers
its
shares
on
a
continuous
basis
through
the
Fundrise
Platform,
an
investment
platform
available
both
online
at
www.fundrise.com
and
through
various
mobile
applications
owned
and
operated
by
the
Sponsor.
The
price
a
Shareholder
pays
for
shares
is
based
on
the
Fund’s
NAV.
The
NAV
of
the
Fund’s
shares
is
calculated
daily
on
each
day
that
the
NYSE
is
open
for
business.
Cash
received
for
investor
subscriptions
is
recorded
as
Settling
Subscriptions
in
the
Statement
of
Assets
and
Liabilities
until
settlement
occurs
and
shares
are
issued.
Distributions
To
Shareholders
The
Fund
intends
to
make
distributions
necessary
to
maintain
qualification
for
taxation
as
a
REIT.
The
Fund
expects
that
it
will
declare
daily
distributions
to
Shareholders
of
record
as
of
close
of
business
on
each
day,
paid
on
a
quarterly
basis,
or
more
or
less
frequently
as
determined
by
the
Board,
in
arrears.
The
Board
may
authorize
distributions
in
shares
or
in
excess
of
those
required
for
the
Fund
to
maintain
REIT
tax
status
depending
on
the
Fund’s
financial
condition
and
such
other
factors
as
the
Board
may
deem
relevant.
The
distribution
rate
may
be
modified
by
the
Board
from
time
to
time.
The
Board
reserves
the
right
to
change
or
suspend
the
distribution
policy
from
time
to
time.
Distributions
to
shareholders
of
the
Fund
are
recorded
on
the
ex-dividend
date.
Fundrise
Income
Real
Estate
Fund,
LLC
Notes
to
Financial
Statements
(UNAUDITED)(Continued)
June
30,
2025
16
Dividend
Reinvestment
The
Fund
operates
under
a
dividend
reinvestment
policy
administered
by
the
Adviser.
Pursuant
to
the
policy,
a
Shareholder’s
income
dividends,
capital
gains
or
other
distributions,
net
of
any
applicable
U.S.
withholding
tax,
can
be
reinvested
in
the
shares
of
the
Fund,
provided
that,
if
a
Shareholder
participates
in
an
investment
plan
offered
by
the
Adviser,
such
distributions
will
be
reinvested
in
accordance
with
such
investment
plan.
Unless
a
Shareholder
elects
to
“opt
in”
to
the
Fund’s
dividend
reinvestment
policy,
any
dividends
and
other
distributions
paid
to
the
Shareholder
by
the
Fund
will
not
be
reinvested
in
additional
shares
of
the
Fund
under
the
policy.
When
the
Fund
declares
a
distribution
payable
in
cash,
the
Shareholders
enrolled
in
the
dividend
reinvestment
plan
will
receive
an
equivalent
amount
in
shares
from
the
Fund
either
newly
issued
or
repurchased
from
Shareholders
by
the
Fund
or
according
to
their
investment
plan,
if
applicable.
The
number
of
shares
to
be
received
when
distributions
are
reinvested
will
be
determined
by
dividing
the
amount
of
the
distribution
(or
the
percentage
of
the
distribution
allocable
to
the
Fund
under
the
terms
of
the
investment
plan,
if
applicable)
by
the
Fund’s
NAV
per
share
when
the
distribution
is
paid.
Shareholders
who
do
not
participate
in
the
Fund’s
dividend
reinvestment
policy
will
receive
all
dividends
in
cash.
Investment
Income
and
Securities
Transactions
Securities
transactions
are
accounted
for
on
the
date
the
securities
are
purchased
or
sold
(trade
date).
Realized
gains
and
losses
on
sales
of
investments
are
determined
on
a
specific
identification
basis.
Dividend
income
and
distributions
from
investments
are
recorded
on
the
ex-dividend
date.
Interest
income
is
recorded
on
an
accrual
basis
and
includes,
where
applicable,
the
amortization
of
premiums
and
accretion
of
discounts.
Distributions
received
from
investments
generally
are
comprised
of
ordinary
income
and/
or
return
of
capital.
The
Fund
estimates
the
allocation
of
distributions
between
investment
income
and
return
of
capital
based
on
historical
information
or
regulatory
filings.
These
estimates
may
subsequently
be
revised
based
on
actual
allocations
received
from
investments
after
their
tax
reporting
periods
are
concluded,
as
the
actual
character
of
these
distributions
is
not
known
until
after
the
reporting
period
of
the
Fund.
The
Fund
currently
holds,
and
expects
to
hold
in
the
future,
some
debt
investments
in
its
portfolio
that
contain
Payment-in-Kind
(“PIK”)
interest
provisions.
The
PIK
interest,
computed
at
the
contractual
rate
specified
in
each
loan
agreement,
is
added
to
the
principal
balance
of
the
investment,
rather
than
being
paid
in
cash,
and
is
recognized
as
interest
income
when
earned.
Thus,
the
actual
collection
of
PIK
interest
may
be
deferred
until
the
time
of
principal
repayment.
PIK
interest,
which
is
a
non-cash
source
of
income
at
the
time
of
recognition,
is
included
in
the
Fund’s
taxable
income
and
therefore
affects
the
amount
the
Fund
is
required
to
distribute
to
its
shareholders
to
maintain
its
qualification
as
a
REIT
for
federal
income
tax
purposes,
even
though
the
Fund
has
not
yet
collected
the
cash.
Generally,
when
interest
and/or
principal
payments
on
an
investment
become
past
due,
or
if
the
Fund
otherwise
does
not
expect
the
borrower
to
be
able
to
service
its
debt
and
other
obligations,
the
Fund
will
place
the
investment
on
non-accrual
status
and
will
cease
recognizing
interest
income
on
that
investment
for
financial
reporting
purposes
until
all
principal
and
interest
have
been
brought
current
through
payment
or
through
a
restructuring
such
that
the
interest
income
is
deemed
to
be
collectible.
The
Fund
writes
off
any
accrued
and
uncollected
interest
when
it
is
determined
that
the
interest
is
no
longer
collectible.
As
of
June
30,
2025,
the
Fund
held
one
non-accrual
asset.
The
investment
is
past
maturity
and
has
failed
to
repay
outstanding
principal
and
contractual
interest.
The
investment
is
secured
by
the
underlying
property
and
the
Fund
expects
to
collect
its
outstanding
balance
by
remedies
outlined
in
the
loan
agreement.
The
Fund
has
determined
contractual
interest
after
default
to
be
uncollectible
and
has
classified
the
investment
as
non-accrual.
3.
Concentration
of
Risk
Investing
in
the
Fund
involves
risks,
including,
but
not
limited
to,
those
set
forth
below.
The
risks
described
below
are
not,
and
are
not
intended
to
be,
a
complete
enumeration
or
explanation
of
the
risks
involved
in
an
investment
in
the
Fund.
For
a
more
complete
discussion
of
the
risks
of
investing
in
the
Fund,
see
the
section
entitled
“Principal
Risks”
in
the
Fund’s
Prospectus
and
Statement
of
Additional
Information
filed
on
April
25,
2025,
effective
May
1,
2025,
and
the
Fund’s
other
filings
with
the
SEC.
Non-Listed
Closed-End
Interval
Fund;
Liquidity
Risk.
The
Fund
is
a
non-diversified,
closed-end
management
investment
company
operating
as
an
“interval
fund”
and
is
designed
primarily
for
long-term
investors.
Closed-end
funds
differ
from
open-end
management
Fundrise
Income
Real
Estate
Fund,
LLC
Notes
to
Financial
Statements
(UNAUDITED)(Continued)
June
30,
2025
17
investment
companies
(commonly
known
as
mutual
funds)
because
investors
in
a
closed-end
fund
do
not
have
the
right
to
redeem
their
shares
on
a
daily
basis.
Unlike
many
closed-end
funds,
which
typically
list
their
shares
on
a
securities
exchange,
the
Fund
does
not
currently
intend
to
list
the
shares
for
trading
on
any
securities
exchange,
and
the
Fund
does
not
expect
any
secondary
market
to
develop
for
the
shares
in
the
foreseeable
future.
Therefore,
an
investment
in
the
Fund,
unlike
an
investment
in
a
typical
closed-end
fund,
is
not
a
liquid
investment.
The
Fund
is
not
intended
to
be
a
typical
traded
investment.
Shareholders
are
also
subject
to
transfer
restrictions
and
there
is
no
guarantee
that
they
will
be
able
to
sell
their
shares.
If
a
secondary
market
were
to
develop
for
the
shares
in
the
future,
and
a
Shareholder
is
able
to
sell
his
or
her
shares,
the
Shareholder
will
likely
receive
less
than
the
purchase
price
and
the
then-current
NAV
per
share.
Although
the
Fund,
as
a
fundamental
policy,
will
make
quarterly
offers
to
repurchase
at
least
5%
and
up
to
25%
of
its
outstanding
shares
at
NAV,
the
number
of
shares
tendered
in
connection
with
a
repurchase
offer
may
exceed
the
number
of
shares
the
Fund
has
offered
to
repurchase,
in
which
case
not
all
of
a
Shareholder’s
shares
tendered
in
that
offer
will
be
repurchased.
In
connection
with
any
given
repurchase
offer,
it
is
likely
that
the
Fund
may
offer
to
repurchase
only
the
minimum
amount
of
5%
of
its
outstanding
shares.
Hence,
a
Shareholder
may
not
be
able
to
sell
their
shares
when
or
in
the
amount
that
they
desire.
Non-Diversification
Risk.
As
a
“non-diversified”
fund,
the
Fund
may
invest
more
than
5%
of
its
total
assets
in
the
securities
of
one
or
more
issuers
.
Therefore,
the
Fund
may
be
more
susceptible
than
a
diversified
fund
to
being
adversely
affected
by
events
impacting
a
single
borrower,
geographic
location,
security
or
investment
type.
Further,
a
non-diversified
fund
is
more
vulnerable
than
a
more
broadly
diversified
fund
to
fluctuations
in
the
values
of
the
securities
it
holds.
For
these
reasons,
an
investment
in
the
Fund
may
fluctuate
in
value
and
have
a
greater
degree
of
risk.
Investment
and
Market
Risk.
An
investment
in
the
Fund
is
subject
to
investment
risk,
including
the
possible
loss
of
the
entire
amount
that
a
Shareholder
invests.
The
value
of
the
Fund’s
investments
may
move
up
or
down
due
to
adverse
market
conditions,
sometimes
rapidly
and
unpredictably.
At
any
point
in
time,
shares
may
be
worth
less
than
the
original
investment,
even
after
taking
into
account
the
reinvestment
of
Fund
dividends
and
distributions.
Market
risk
also
includes
the
risk
that
domestic,
geopolitical
and
other
events
such
as
war,
terrorism,
market
manipulation,
government
defaults,
government
shutdowns,
political
changes,
diplomatic
developments
or
the
imposition
of
sanctions
and
other
similar
measures,
public
health
emergencies
(such
as
the
spread
of
infectious
diseases,
pandemics
and
epidemics),
natural/environmental
disasters,
or
other
disruptive
events
negatively
impacting
the
securities
markets,
which
may
adversely
affect
the
Fund’s
business,
results
of
operations
and
financial
condition
and
cause
the
Fund
to
lose
value.
Real
Estate
Investment
Risks
Generally.
The
Fund’s
investments
are
subject
to
the
risks
typically
associated
with
real
estate,
which
may
affect
the
Fund’s
operations
or
investments,
including
but
not
limited
to:
changes
in
certain
economic,
demographic
or
capital
market
conditions,
a
prolonged
economic
slowdown,
recession
or
declining
real
estate
values;
future
adverse
national
real
estate
trends;
the
leases
on
the
properties
underlying
the
Fund’s
investments
may
not
be
renewed
on
favorable
terms,
or
the
occupancy
rate
of,
or
lease
rates
charged,
at
properties
may
change;
change
in
supply
of
or
demand
for
similar
properties
in
a
given
market;
risks
of
cost
overruns
and
non-completion
of
the
construction
or
renovation
of
properties;
changes
in
interest
rates
and/or
credit
spreads;
lack
of
liquidity
in
real
estate
assets;
property
locations
and
conditions,
ongoing
operating
costs,
and
expense
of
leasing,
renovation
or
constructions;
bankruptcies,
financial
difficulties
or
defaults
by
tenants,
real
estate
operators,
property
managers
or
other
parties
involved
in
the
Fund’s
operations;
costs
of
compliance
with
laws
and
regulations
applicable
to
real
estate
investments,
including
changes
in
such
laws
or
regulations;
environmental
liabilities
of
properties
in
which
the
Fund
invests;
and
unforeseeable
events
such
as
civil
disturbance,
terrorism,
natural
disasters
or
general
downturns
in
the
real
estate
industry,
value
of
properties,
or
public
health
crisis
such
as
pandemics
or
endemics.
Commercial
Real
Estate
Industry
Risk.
Commercial
real
estate
is
dependent
on
the
commercial
real
estate
industry
generally,
which
in
turn
is
dependent
upon
broad
economic
conditions.
Challenging
economic
and
financial
market
conditions
may
cause
the
Fund
to
experience
an
increase
in
the
number
of
commercial
real
estate
investments
that
result
in
losses,
including
delinquencies,
non-
performing
assets
and
a
decrease
in
the
value
of
the
property
or,
in
the
case
of
Publicly
Traded
Real
Estate
Securities,
collateral
which
secures
its
investments,
all
of
which
could
adversely
affect
the
Fund’s
results
of
operations.
Risks
Related
to
Specific
Residential
and
Commercial
Real
Estate
Property
Types.
The
Fund
intends
to
invest
in
a
variety
of
residential
and
commercial
real
estate
property
types,
which
will
expose
the
Fund
to
risks
associated
with
residential
and
commercial
real
estate,
including
general
risks
affecting
all
types
of
residential
and
commercial
real
estate
property.
Fundrise
Income
Real
Estate
Fund,
LLC
Notes
to
Financial
Statements
(UNAUDITED)(Continued)
June
30,
2025
18
Risk
of
Investing
Through
Real
Estate
Investment
Vehicles.
By
investing
in
Real
Estate
Investment
Vehicles
(a
“Vehicle”),
the
Fund
is
indirectly
exposed
to
risks
associated
with
such
Vehicles
investments
in
residential
and
commercial
real
estate
investments.
Such
investments
may
involve
risks
not
otherwise
present
with
other
methods
of
investment,
including:
the
Fund
may
not
have
sole
decision-making
authority
with
respect
to
such
an
investment,
and
a
co-investor,
joint
venture
partner
or
other
investor
(collectively,
“other
investors”)
in
the
Vehicle
could
take
actions
that
decrease
the
value
of
the
investment;
other
investors
in
the
Vehicle
may
have
economic
or
other
interests
or
goals
that
are
inconsistent
with
the
Fund’s
interests
or
goals;
other
investors
in
the
Vehicle
that
control
its
management
could
become
insolvent
or
bankrupt,
or
be
subject
to
fraud
or
other
misconduct
that
may
have
a
material
adverse
effect
on
the
Fund’s
investment;
under
circumstances
when
no
party
has
the
power
to
control
the
Vehicle,
an
impasse
could
result
regarding
cash
distributions,
reserves
or
a
proposed
sale
or
refinancing
of
the
investment,
which
could
adversely
impact
the
operations
and
profitability
of
the
Vehicle;
other
investors
in
the
Vehicle
may
be
structured
differently
than
the
Fund
for
tax
purposes,
which
could
risk
the
Fund’s
ability
to
qualify
as
a
REIT
for
tax
purposes;
other
investors
managing
the
Vehicle
may
experience
a
change
in
control,
which
could
result
in
new
management;
and
the
terms
of
a
Vehicle
could
restrict
the
Fund’s
ability
to
sell
or
transfer
its
interest
to
a
third-party
when
it
desires
on
advantageous
terms,
which
may
result
in
reduced
liquidity.
New
Construction
and
Real
Estate
Development
Risk
.
The
Fund
expects
to
engage
in
the
strategy
of
acquiring,
holding
and
financing
land
for
future
development.
The
risks
inherent
in
financing,
purchasing,
owning,
selling,
and
developing
land
increase
as
the
demand
for
new
homes
and
rentals
decreases.
Real
estate
markets
are
highly
uncertain,
and
the
value
of
undeveloped
land
has
fluctuated
significantly
and
may
continue
to
fluctuate.
The
Fund’s
investments
are
subject
to
risks
inherent
in
residential
and
commercial
real
estate
generally
as
well
as
risks
inherent
to
new
construction
and
development,
such
as
the
risk
that
there
will
be
insufficient
tenant
demand
to
occupy
newly
developed
properties,
the
risk
that
costs
of
construction
materials
or
construction
labor
may
rise
materially
during
the
development,
overbuilding
and
price
competition,
decreased
availability
of
suitable
land,
and
changing
government
regulations
(including
zoning,
usage
and
tax
laws).
In
addition,
land
carrying
costs
can
be
significant
and
can
result
in
losses
or
reduced
profitability.
As
a
result,
the
Fund
may
hold
certain
land,
and
may
acquire
or
finance
additional
land,
in
its
development
pipeline
at
a
cost
that
the
Fund
may
not
be
able
to
fully
recover
or
at
a
cost
which
precludes
profitable
development.
Valuation
Risk.
The
Fund
is
subject
to
valuation
risk,
which
is
the
risk
that
one
or
more
of
the
assets
in
which
the
Fund
invests
are
priced
incorrectly,
due
to
factors
such
as
incomplete
data,
market
instability
or
human
error.
If
the
Fund
ascribes
a
higher
value
to
assets
and
their
value
subsequently
drops
or
fails
to
rise
because
of
market
factors,
returns
on
the
Fund’s
investment
may
be
lower
than
expected
and
could
experience
losses.
Interest
Rate
Risk.
Changes
in
interest
rates,
including
changes
in
expected
interest
rates
or
“yield
curves,”
may
affect
the
Fund’s
business
in
a
number
of
ways.
Changes
in
the
general
level
of
interest
rates
can
affect
the
Fund’s
net
interest
income,
which
is
the
difference
between
the
interest
income
earned
on
the
Fund’s
interest-earning
assets
and
the
interest
expense
incurred
in
connection
with
its
interest-bearing
borrowings
and
hedges.
Changes
in
the
level
of
interest
rates
also
can
affect,
among
other
things,
the
Fund’s
ability
to
acquire
certain
of
the
Publicly
Traded
Real
Estate
Securities
at
attractive
prices,
acquire
or
originate
certain
of
the
residential
and
commercial
real
estate
debt
investments
at
attractive
prices,
and
enter
into
hedging
transactions.
Generally,
as
interest
rates
increase,
the
value
of
the
Fund’s
fixed
rate
securities
decreases,
which
will
decrease
the
book
value
of
the
Fund’s
equity.
In
addition,
changes
in
monetary
policy
may
exacerbate
the
risks
associated
with
changing
interest
rates.
It
is
difficult
to
predict
the
magnitude,
timing
or
direction
of
interest
rate
changes
and
the
impact
these
changes
will
have
on
the
markets
in
which
the
Fund
invests.
Leverage
Risk.
The
Fund
may
use
leverage
in
connection
with
its
investments.
The
Fund
may
employ
leverage
of
not
more
than
33
⅓%
of
total
assets
as
it
is
limited
to
33
⅓%
of
the
Fund’s
total
assets
(less
all
liabilities
and
indebtedness
not
represented
by
1940
Act
leverage),
in
order
to
provide
more
funds
available
for
investment.
Leverage
may
result
in
greater
volatility
of
the
NAV
of,
and
distributions
on,
the
Shares
because
changes
in
the
value
of
the
Fund’s
portfolio
investments,
including
investments
purchased
with
the
proceeds
from
Borrowings
or
the
issuance
of
Preferred
Stock,
if
any,
are
borne
entirely
by
holders
of
Shares.
Risks
Related
to
the
Fund’s
Tax
Status
as
a
REIT.
The
Fund
has
elected
to
be
taxed
and
has
qualified
for
treatment
each
year
as
a
REIT
under
the
Internal
Revenue
Code
of
1986,
as
amended
(defined
above
as
the
"Code")
beginning
with
its
taxable
year
ended
December
31,
2022
and
intends
to
continue
to
qualify
as
a
REIT.
However,
qualification
as
a
REIT
for
tax
purposes
involves
the
application
of
highly
technical
and
complex
Code
provisions
for
which
only
a
limited
number
of
judicial
or
administrative
interpretations
exist.
Notwithstanding
the
availability
of
cure
provisions
in
the
Code,
various
compliance
requirements
could
be
failed
and
could
jeopardize
the
Fund’s
REIT
tax
status.
Failure
to
qualify
for
taxation
as
a
REIT
would
cause
the
Fund
to
be
taxed
Fundrise
Income
Real
Estate
Fund,
LLC
Notes
to
Financial
Statements
(UNAUDITED)(Continued)
June
30,
2025
19
as
a
regular
corporation,
which
would
substantially
reduce
funds
available
for
distributions
to
Shareholders.
In
addition,
complying
with
the
requirements
to
maintain
its
REIT
tax
status
may
cause
the
Fund
to
forego
otherwise
attractive
opportunities
or
to
liquidate
otherwise
attractive
investments,
adversely
affect
the
Fund’s
liquidity
and
force
the
Fund
to
borrow
funds
during
unfavorable
market
conditions,
and/or
limit
the
Fund’s
ability
to
hedge
effectively
and
cause
the
Fund
to
incur
tax
liabilities.
4.
Share
Transactions
Below
is
a
summary
of
transactions
with
respect
to
the
Fund’s
common
shares
for
the
six
months
ended
June
30,
2025
and
the
year
ended
December
31,
2024
(all
tabular
amounts
are
in
thousands
except
share
data)
:
As
of
June
30,
2025,
the
Sponsor
held
13,100
of
the
Fund’s
common
shares.
During
the
year
ended
December
31,
2024,
Fundrise
L.P.,
an
affiliate
of
the
Sponsor,
fully
redeemed
its
previously
held
150,400
common
shares.
For
the
six
months
ended
June
30,
2025,
total
distributions
declared
to
the
Sponsor
were
approximately
$5,000.
5.
Repurchase
Offers
The
Fund
operates
as
an
interval
fund
under
Rule
23c-3
of
the
1940
Act
and,
as
such,
provides
a
limited
degree
of
liquidity
to
Shareholders.
As
an
interval
fund,
the
Fund
has
adopted
a
fundamental
policy
to
offer
to
repurchase
at
quarterly
intervals
a
specified
percentage
of
its
outstanding
shares
at
NAV
(the
“Repurchase
Offer
Policy”).
The
Repurchase
Offer
Policy
provides
that,
once
each
quarter,
the
Fund
will
offer
to
repurchase
at
NAV
no
less
than
5%
and
no
more
than
25%
of
the
outstanding
shares
of
the
Fund,
unless
suspended
or
postponed
in
accordance
with
regulatory
requirements.
The
Repurchase
Offer
Policy
is
a
fundamental
policy
that
may
not
be
changed
without
the
vote
of
the
holders
of
a
majority
of
the
Fund’s
outstanding
voting
securities
(as
defined
in
the
1940
Act).
To
conduct
a
repurchase
offer,
the
Fund
will
send
a
repurchase
offer
notice
to
Shareholders
no
less
than
21
days
and
no
more
than
42
days
before
the
date
(the
“Repurchase
Request
Deadline”)
by
which
the
Fund
announces
that
Shareholders
must
tender
their
shares
in
response
to
such
repurchase
offer
notice.
The
Fund
must
receive
repurchase
requests
submitted
by
Shareholders
in
response
to
the
Fund’s
repurchase
offer
on
or
before
the
Repurchase
Request
Deadline.
The
Repurchase
Offer
Policy
provides
that
the
repurchase
pricing
occurs
no
later
than
the
14th
day
after
the
Repurchase
Request
Deadline
or
the
next
business
day
if
the
14th
day
is
not
a
business
day
(the
“Repurchase
Pricing
Date”).
The
repurchase
price
of
the
shares
will
be
the
Fund’s
NAV
as
of
the
close
of
the
Repurchase
Pricing
Date.
The
Board,
in
its
sole
discretion,
will
determine
the
number
of
shares
that
the
Fund
will
offer
to
repurchase
(“Repurchase
Offer
Amount”)
for
a
given
Repurchase
Request
Deadline.
If
Shareholders
tender
for
repurchase
more
than
the
Repurchase
Offer
Amount
for
a
given
repurchase
offer,
the
Fund
may,
but
is
not
required
to,
repurchase
an
additional
number
of
shares
not
to
exceed
2%
of
the
outstanding
shares
of
the
Fund
on
the
Repurchase
Request
Deadline.
If
the
Fund
determines
not
to
repurchase
more
than
the
Repurchase
Offer
Amount,
or
if
Shareholders
tender
shares
in
an
amount
exceeding
the
Repurchase
Offer
Amount
plus
2%
of
the
outstanding
shares
on
the
Repurchase
Request
Deadline,
the
Fund
will
repurchase
the
shares
on
a
pro
rata
basis.
However,
the
Fund
may
accept
all
shares
tendered
for
repurchase
by
Shareholders
who
own
less
than
one
hundred
shares
and
who
tender
all
of
their
shares,
before
prorating
other
amounts
tendered.
In
addition,
if
a
repurchase
offer
is
oversubscribed,
the
Fund
may
offer
to
repurchase
outstanding
shares
that
are
tendered
by
the
descendants
or
estate
of
a
deceased
shareholder
(a
“Legacy
Repurchase”)
in
an
additional
amount
approved
by
the
Board,
taking
into
account
the
liquidity
of
the
Fund’s
assets.
In
the
event
a
Legacy
Repurchase
by
a
Fund
is
oversubscribed,
the
Fund
will
repurchase
the
Shares
tendered
on
a
pro
rata
basis.
For
the
Six
Months
Ended
June
30,
2025
For
the
Year
Ended
December
31,
2024
Common
Shares
Shares
Amount
Shares
Amount
Proceeds
from
sale
of
shares
5
,
777
,
266‌
$
57
,
713‌
9,923,779‌
$
98,925‌
Reinvestment
of
distributions
658,991‌
6,576‌
1,140,032‌
11,364‌
Total
gross
proceeds
6
,
436
,
257‌
64,289‌
11,063,811‌
110,289‌
Repurchase
of
shares
(
4
,
998
,
428‌
)
(
49,951‌
)
(11,320,437‌)
(112,834‌)
Net
Proceeds
from
Common
Shares
1,437
,
829‌
$
14,338‌
(256,626‌)
$
(2,545‌)
Fundrise
Income
Real
Estate
Fund,
LLC
Notes
to
Financial
Statements
(UNAUDITED)(Continued)
June
30,
2025
20
The
Fund
may
not
condition
a
repurchase
offer
upon
the
tender
of
any
minimum
number
of
shares.
The
Fund
does
not
currently
charge
a
repurchase
fee,
and
it
does
not
currently
expect
to
impose
a
repurchase
fee.
However,
the
Fund
may
in
the
future
charge
a
repurchase
fee
of
up
to
2.00%,
subject
to
approval
of
the
Board.
The
following
table
presents
the
repurchase
offers
that
were
completed
during
the
six
months
ended
June
30,
2025
(all
tabular
amounts
are
in
thousands
except
share
data)
:
6.
Investment
Manager
Fees
and
Other
Related
Party
Transactions
The
Fund
entered
into
an
Investment
Management
Agreement
with
the
Adviser.
Pursuant
to
the
Investment
Management
Agreement,
and
in
consideration
of
the
services
provided
by
the
Adviser
to
the
Fund,
the
Adviser
is
entitled
to
a
management
fee
(the
“Management
Fee”)
of
0.85%
of
the
Fund’s
average
daily
net
assets.
The
Management
Fee
will
be
calculated
and
accrued
daily
and
payable
monthly
in
arrears.
The
Adviser
or
its
affiliates
may
be
entitled
to
certain
fees
as
permitted
by
the
1940
Act
or
as
otherwise
permitted
by
applicable
law
and
regulation.
These
may
include
fees
and
expenses
associated
with
the
selection,
acquisition,
or
origination,
monitoring
or
management
of
real
estate
properties,
construction,
real
estate
development,
special
servicing
of
non-performing
assets
(including,
but
not
limited
to,
reimbursement
of
non-ordinary
expenses
and
employee
time
required
to
special
service
a
non-performing
asset)
whether
or
not
the
Fund
ultimately
acquires
or
originates
the
investment,
and
the
sale
of
equity
investments
in
real
estate.
No
such
fees
were
incurred
or
paid
by
the
Fund
to
the
Adviser
or
its
affiliates
for
the
six
months
ended
June
30,
2025.
The
Adviser
and
Rise
Companies
entered
into
a
Shared
Services
Agreement
where
Rise
Companies
will
provide
the
Adviser
with
the
personnel,
services
and
resources
necessary
for
the
Adviser
to
comply
with
its
obligations
and
responsibilities
under
the
Second
Amended
and
Restated
Operating
Agreement
(“Operating
Agreement”)
and
Investment
Management
Agreement,
which
includes
responsibility
for
operations
of
the
Fund
and
performance
of
such
services
and
activities
relating
to
the
investments
and
operations
of
the
Fund
as
may
be
appropriate,
including
without
limitation
those
services
and
activities
listed
in
the
Operating
Agreement
and
Investment
Management
Agreement.
The
Fund
will
reimburse
the
Adviser
for
out-of-pocket
expenses
paid
to
third
parties
in
connection
with
providing
services
to
the
Fund.
This
does
not
include
the
Adviser’s
overhead,
employee
costs
borne
by
the
Adviser,
or
utilities
costs.
Expense
reimbursements
payable
to
the
Adviser
also
may
include
expenses
incurred
by
the
Sponsor
in
the
performance
of
services
pursuant
to
a
shared
services
agreement
between
the
Adviser
and
the
Sponsor,
including
any
increases
in
insurance
attributable
to
the
management
or
operation
of
the
Fund.
During
the
six
months
ended
June
30,
2025,
there
were
approximately
$90,000
of
expenses
reimbursed
to
the
Adviser
pursuant
to
the
shared
services
agreement.
Fundrise
Real
Estate,
LLC
The
Fund
entered
into
a
Real
Estate
Services
Agreement
(the
“Agreement”)
with
Fundrise
Real
Estate,
LLC
(“the
Vendor”),
a
wholly-
owned
subsidiary
of
our
Sponsor.
Pursuant
to
the
Agreement,
the
Vendor
is
entitled
to
Real
Estate
Operating
Fees
for
performing
certain
real
estate
operating
services
for
the
Fund.
Pursuant
to
the
agreement,
the
Vendor
is
also
entitled
to
reimbursement
of
third-
Repurchase
Offers
Fourth
Quarter
Repurchase
Commencement
Date
December
6,
2024
Repurchase
Request
Deadline
December
31,
2024
Repurchase
Pricing
Date
January
2,
2025
Amount
Repurchased
$
22,645‌
Shares
Repurchased
2,264,566‌
Repurchase
Offers
First
Quarter
Repurchase
Commencement
Date
March
6,
2025
Repurchase
Request
Deadline
March
31,
2025
Repurchase
Pricing
Date
April
1,
2025
Amount
Repurchased
$
27,306‌
Shares
Repurchased
2,733,862‌
Fundrise
Income
Real
Estate
Fund,
LLC
Notes
to
Financial
Statements
(UNAUDITED)(Continued)
June
30,
2025
21
party
costs
and
overhead
associated
with
the
performance
of
certain
services
outlined
in
the
Agreement,
paid
no
less
frequently
than
quarterly.
Affiliated
Investments
The
Fund
invests
in
one
or
more
affiliated
entities.
As
of
June
30,
2025,
the
investments
in
affiliated
entities
consist
of
investments
in
real
estate
investment
vehicles
used
to
acquire,
hold,
and
finance
multifamily
properties
and
land
for
future
development.
The
affiliated
investment
vehicles
have
not
been
registered
under
the
Securities
Act
of
1933,
as
amended,
and
thus
are
subject
to
restrictions
on
resale.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Majority
Owned
Subsidiary”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
50%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
During
the
six
months
ended
June
30,
2025,
investments
in
affiliated
entities
were
as
follows
(amounts
in
thousands)
:
Majority
Owned
Subsidiary
Investments
Balance
as
of
December
31,
2024
Purchases
at
Cost
Proceeds
from
Sales
Net
Realized
Gain
(Loss)
and
Capital
Gain
Distributions
PIK
Interest
Income
Change
in
Unrealized
Appreciation/
Depreciation
Balance
as
of
June
30,
2025
Total
Dividend
Income
Equity
Income
1
TRS,
LLC
$
80,766
$
–
$
–
$
–
$
–
$
2,998
$
83,764
$
–
FR
Fairfax,
LLC
3,400
–
–
–
–
(150)
3,250
–
FR
La
Brea,
LLC
–
3,300
(1)
–
–
–
–
3,300
–
Total
$
84,166
$
3,300
$
–
$
–
$
–
$
2,848
$
90,314
$
–
(1)
Includes
in-kind
transactions.
Non-Controlled
Affiliated
Investments
Balance
as
of
December
31,
2024
Purchases
at
Cost
Proceeds
from
Sales
Net
Realized
Gain
(Loss)
and
Capital
Gain
Distributions
PIK
Interest
Income
Change
in
Unrealized
Appreciation/
Depreciation
Balance
as
of
June
30,
2025
Total
Interest
Income
Equity
Fundrise
Insight
Two,
LLC
(1)
$
1
$
–
$
–
$
–
$
–
$
–
$
1
$
–
Preferred
Equity
Fort
Meyers
Reef
Holdings,
LLC
(1)
9,549
–
–
–
295
(3)
9,841
536
Fundrise
Busbee
Investor,
LLC
(1)
7,873
3,869
–
–
672
(181)
12,233
896
Fundrise
East
Village
Investor
I,
LLC
(1)
1,701
–
–
–
125
(1)
1,825
126
Fundrise
Highlands
Investor
I,
LLC
(1)
1,646
–
–
–
100
(1)
1,745
132
Fundrise
PB
Investor
I,
LLC
(1)
9,842
–
–
–
661
6
10,509
712
Fundrise
Pelican
Investor
I,
LLC
(1)
1,775
559
–
–
145
(21)
2,458
192
Fundrise
PSL
Investor
I,
LLC
(1)
12,713
–
–
–
854
6
13,573
918
Fundrise
VB
Investor
I,
LLC
(1)
8,452
–
–
–
568
5
9,025
613
RSE
Daytona
Investor
I,
LLC
(1)
4,985
–
–
–
347
(1)
5,331
347
RSE
Thompson
Reserve
Investor
I,
LLC
(1)
2,019
–
–
–
111
–
2,130
144
Promissory
Notes
FR
Beeson,
LLC
28,560
–
(5,500)
–
–
(364)
22,696
1,179
FR
Berry
Creek,
LLC
6,522
–
(6,558)
–
–
36
–
167
FR
Cade’s
Bluff,
LLC
8,237
–
–
–
–
(11)
8,226
391
FR
Castlewood,
LLC
7,615
–
–
–
–
15
7,630
346
FR
Crescent
Mills,
LLC
7,969
–
(8,019)
–
–
50
–
141
FR
Eastwood,
LLC
2,414
–
(2,422)
–
–
8
–
50
FR
Holmes,
LLC
2,756
–
(2,789)
–
–
33
–
63
FR
Legacy
Hills,
LLC
12,844
–
(2,500)
–
–
46
10,390
543
FR
Meadow
Park,
LLC
11,408
–
–
–
–
22
11,430
544
FR
Providence
Gardens,
LLC
5,829
–
–
–
–
–
5,829
249
FR
Tom
Miller,
LLC
26,188
–
(8,000)
–
–
65
18,253
1,032
FR
Trailside,
LLC
8,976
–
(1,200)
–
–
29
7,805
377
FR
Washington
Street,
LLC
2,758
–
(2,766)
–
–
8
–
51
Fundrise
Income
Real
Estate
Fund,
LLC
Notes
to
Financial
Statements
(UNAUDITED)(Continued)
June
30,
2025
22
7.
Investments
The
Fund
gains
exposure
to
commercial
and
residential
real
estate
through
a
diversified
portfolio
of
investments
in
real
property;
real
estate
loans;
real
estate-related
debt
and
equity
securities,
and
other
real
estate-related
assets.
The
cost
of
purchases
and
proceeds
from
the
sale
of
investments,
other
than
short-term
securities
and
in-kind
transactions,
for
the
six
months
ended
June
30,
2025
amounted
to
$128,318
and
$81,451,
respectively
(amounts
in
thousands)
.
For
the
six
months
ended
June
30,
2025,
the
cost
of
purchases
and
proceeds
from
sales
of
in-kind
transactions
were
$3,445
and
$3,298,
respectively
(amounts
in
thousands).
As
of
June
30,
2025,
Income
1
TRS,
LLC
is
deemed
to
be
a
significant
subsidiary
of
the
Fund
in
accordance
with
the
definition
of
a
“significant
subsidiary”
as
defined
by
Regulation
S-X
1-02(w)(2),
Definitions
of
terms
used
in
Regulation
S-X
(amendment
effective
January
1,
2021).
Pursuant
to
Regulation
S-X
4-08(g),
Summarized
financial
information
of
subsidiaries
not
consolidated
and
50
percent
or
less
owned
persons
,
summarized
financial
information
for
Income
1
TRS
LLC
is
included
below:
8.
Tax
Basis
Information
The
timing
and
characterization
of
certain
income,
capital
gains,
and
return
of
capital
distributions
are
determined
annually
in
accordance
with
federal
tax
regulations,
which
may
differ
from
GAAP.
As
a
result,
the
net
investment
income
(loss)
and
net
realized
gain
(loss)
on
investment
transactions
for
a
reporting
period
may
differ
significantly
from
distributions
during
such
period.
These
book/tax
differences
may
be
temporary
or
permanent
in
nature.
To
the
extent
these
differences
are
permanent,
they
are
charged
or
Non-Controlled
Affiliated
Investments
(continued)
Balance
as
of
December
31,
2024
Purchases
at
Cost
Proceeds
from
Sales
Net
Realized
Gain
(Loss)
and
Capital
Gain
Distributions
PIK
Interest
Income
Change
in
Unrealized
Appreciation/
Depreciation
Balance
as
of
June
30,
2025
Total
Interest
Income
Promissory
Notes
(continued)
FR
Willow
Landing,
LLC
$
15,143
$
–
$
(2,000)
$
–
$
–
$
(14)
$
13,129
$
711
FR
Wilsons
Walk,
LLC
191
–
–
–
–
1
192
9
Total
$
207,966
$
4,428
$
(41,754)
$
–
$
3,878
$
(267)
$
174,251
$
10,469
(1)
Investment
represents
a
co-investment
arrangement,
in
which
the
Fund
co-invested
alongside
an
affiliate
of
the
Fund,
including
those
of
the
Adviser
(“Real
Estate
Co-Investment
Joint
Ventures”).
This
arrangement
is
pursuant
to
the
terms
and
conditions
of
the
exemptive
order
issued
by
the
SEC
to
the
Fund,
allowing
the
Fund
to
co-invest
alongside
certain
entities
affiliated
with
or
managed
by
the
Adviser.
The
Fund’s
investments
in
real
estate
through
the
securities
of
a
Real
Estate
Co-Investment
Joint
Ventures
with
its
affiliates
is
subject
to
the
requirements
of
the
1940
Act
and
terms
and
conditions
of
an
exemptive
order
the
Fund
received
from
the
SEC
allowing
the
Fund
and/or
the
Real
Estate
Co-Investment
Joint
Ventures
to
co-invest
alongside
certain
entities
affiliated
with
or
managed
by
the
Adviser
(REITs
(each,
an
“
eREIT
®”)
or
other
non-REIT
compliant
real
estate-related
funds).
The
exemptive
order
from
the
SEC
imposes
extensive
conditions
on
the
terms
of
any
co-investment
made
by
an
affiliate
of
the
Fund.
The
Fund
has
adopted
procedures
reasonably
designed
to
ensure
compliance
with
the
exemptive
order
and
the
Board
also
oversees
risk
relative
to
such
compliance.
Summary
Statement
of
Assets
and
Liabilities
(1)
As
June
30,
2025
Total
Assets
$
246,571‌
Total
Liabilities
173,000‌
Total
Net
Assets
$
73,571‌
Summary
Statement
of
Operations
(1)
For
the
Six
Months
Ended
June
30,
2025
Total
revenue
$
89,666‌
Operating
expenses
(78,821‌)
Operating
Income
$
10,845‌
Interest
expense
(7,615‌)
Income
tax
expense
(926‌)
Net
Income
(Loss)
$
2,304‌
(1)
The
unconsolidated
subsidiary
noted
reports
in
accordance
with
U.S.
GAAP,
but
does
not
fall
within
the
scope
of
the
accounting
and
reporting
guidance
in
the
ASC
946.
The
subsidiary
is
therefore
not
required
to
and
has
elected
not
to
fair
value
its
investments.
Accordingly,
the
summarized
income
statement
information
shown
for
the
unconsolidated
subsidiary
does
not
reflect
fair
value
adjustments.
Fundrise
Income
Real
Estate
Fund,
LLC
Notes
to
Financial
Statements
(UNAUDITED)(Continued)
June
30,
2025
23
credited
to
paid-in
capital,
accumulated
net
investment
income
(loss)
or
accumulated
net
realized
gain
(loss),
as
appropriate,
in
the
period
in
which
the
differences
arise.
As
of
December
31,
2024
,
the
tax
basis
of
distributable
earnings
(accumulated
deficit)
was
as
follows
(amounts
in
thousands)
:
As
of
December
31,
2024
,
the
capital
loss
carryforwards
were
as
follows
(amounts
in
thousands)
:
During
the
tax
years
presented
below,
the
tax
character
of
distributions
paid
by
the
Fund
was
as
follows
(amounts
in
thousands)
:
As
of
June
30,
2025
,
the
unrealized
appreciation
and
depreciation
of
investments,
based
on
cost
for
federal
income
tax
purposes,
were
as
follows
(amounts
in
thousands)
:
The
difference
between
book-basis
and
tax-basis
unrealized
appreciation
is
attributable
to
the
book/tax
differences
in
the
treatment
of
flow
through
income
on
certain
investments.
9.
Segment
Reporting
The
Fund
adopted
FASB
Accounting
Standards
Update
2023-07
Segment
Reporting
(Topic
280)
-
Improvement
to
Reportable
Segment
Disclosure
(“ASU
2023-07”).
Adoption
of
the
new
standard
impacted
financial
statement
disclosures
only
and
did
not
affect
the
Fund’s
financial
position
or
its
results
of
operations.
The
intent
of
ASU
2023-07
is,
through
improved
segment
disclosures,
to
enable
investors
to
better
understand
an
entity’s
overall
performance
and
to
assess
its
potential
future
cash
flows.
The
management
committee
of
Fundrise
Advisors,
LLC,
the
Fund’s
Adviser,
acts
as
the
Fund’s
chief
operating
decision
maker
(“CODM”)
assessing
performance
and
making
decisions
about
resource
allocation.
The
CODM
has
determined
that
the
Fund
has
a
single
operating
segment
based
on
the
fact
that
the
CODM
monitors
the
operating
results
of
the
Fund
as
a
whole
and
that
the
Fund’s
long-term
strategic
asset
allocation
is
pre-determined
in
accordance
with
the
terms
of
its
prospectus,
based
on
a
defined
investment
strategy
which
is
executed
by
the
Fund’s
portfolio
managers
as
a
team.
The
financial
information
provided
to
and
reviewed
by
the
CODM
is
consistent
with
that
presented
within
the
Fund’s
financial
statements.
Undistributed
ordinary
income
(loss)
$
–‌
Undistributed
long-term
capital
gain
(loss)
–‌
Tax
accumulated
earnings
(loss)
$
–‌
Accumulated
capital
and
other
losses
(2,726‌)
Other
book/tax
temporary
differences
(1)
(13,164‌)
Net
unrealized
gain
(loss)
on
investments
(2)
24,846‌
Total
Distributable
Earnings
$
8,956‌
(1)
Other
book/tax
differences
are
attributable
to
deductibility
of
various
expenses.
(2)
The
difference
between
book-basis
and
tax-basis
unrealized
appreciation
(depreciation)
is
attributable
to
the
book/tax
differences
in
the
treatment
of
flow
through
income
on
certain
investments.
Short-term
$
2,726‌
Long-term
–‌
Total
Capital
Loss
Carryforwards
(1)
$
2,726‌
(1)
To
the
extent
the
Fund
recognizes
capital
gains
in
future
periods,
they
will
be
offset
by
unused
capital
loss
carryforwards
subject
to
IRC
limitations.
For
the
Tax
Year
Ended
December
31,
2024
For
the
Tax
Year
Ended
December
31,
2023
Ordinary
income
$
45,997‌
$
45,010‌
Long-term
capital
gain
–‌
–‌
Return
of
capital
–‌
–‌
Total
Distributions
Paid
$
45,997‌
$
45,010‌
Cost
of
investments
for
tax
purposes
$
629
,
529‌
Gross
tax
unrealized
appreciation
$
24,886‌
Gross
tax
unrealized
depreciation
(859‌)
Net
Tax
Unrealized
Appreciation
$
24
,
027‌
Fundrise
Income
Real
Estate
Fund,
LLC
Notes
to
Financial
Statements
(UNAUDITED)(Continued)
June
30,
2025
24
10.
Subsequent
Events
In
connection
with
the
preparation
of
the
accompanying
financial
statements,
the
Fund
has
evaluated
events
and
transactions
occurring
after
the
date
of
this
report
and
through
the
date
at
which
these
financial
statements
were
available
to
be
issued
and
determined
that
no
events
have
occurred
that
require
disclosure
other
than
the
following.
Share
Transactions
Following
the
date
of
this
report,
the
following
repurchase
offers
have
occurred
(all
tabular
amounts
are
in
thousands
except
share
data)
:
Repurchase
Offers
Second
Quarter
Repurchase
Commencement
Date
May
30,
2025
Repurchase
Request
Deadline
June
30,
2025
Repurchase
Pricing
Date
July
1,
2025
Amount
Repurchased
$
23,579‌
Shares
Repurchased
2,358,652‌
Fundrise
Income
Real
Estate
Fund,
LLC
Additional
Information
(UNAUDITED)
June
30,
2025
25
1.
Disclosure
of
Portfolio
Holdings
The
Fund
files
its
complete
schedule
of
portfolio
holdings
with
the
SEC
for
the
first
and
third
quarters
of
each
fiscal
year
as
an
exhibit
to
its
reports
on
Form
N-PORT.
The
Fund’s
Form
N-PORT
reports
will
be
available
without
charge,
upon
request,
by
calling
(202)
584-0550
or
on
the
SEC’s
website
at
http://www.sec.gov
.
2.
Proxy
Voting
Policies
and
Procedures
A
description
of
the
policies
and
procedures
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities
and,
once
available,
information
regarding
how
the
Fund
voted
those
proxies
(if
any)
during
the
year
ended
June
30,
2025,
is
available
(1)
without
charge,
upon
request,
by
calling
(202)
584-0550,
(2)
on
the
Fund’s
website
at
www.fundriseincomerealestatefund.com
and
(3)
on
the
SEC’s
website
at
http://www.sec.gov
.
3.
Compensation
of
Directors
The
Fund’s
Statement
of
Additional
Information
includes
additional
information
about
the
Directors
and
is
available
(1)
without
charge,
upon
request,
by
calling
(202)
584-0550,
(2)
on
the
Fund’s
website
at
www.fundriseincomerealestatefund.com
and
(3)
on
the
SEC’s
website
at
http://www.sec.gov
.
The
following
table
sets
forth
information
regarding
the
total
compensation
to
be
paid
to
the
Independent
Directors
for
their
services
as
Independent
Directors
for
the
Fund’s
fiscal
year
ending
December
31,
2025.
As
an
Interested
Director,
Mr.
Miller
receives
no
compensation
from
the
Fund
for
his
service
as
a
Director.
No
other
compensation
or
retirement
benefits
are
received
by
any
Director
or
officer
from
the
Fund.
Name
Aggregate
Compensation
from
the
Fund
Aggregate
Compensation
from
the
Fund
and
Fund
Complex
(1)
Paid
to
Directors
Jeffrey
R.
Deitrich
$
42,500
$
130,000
Glenn
R.
Osaka
42,500
130,000
Gayle
P.
Starr
42,500
85,000
Mark
D.
Monte
42,500
85,000
(1)
The
“Fund
Complex”
consists
of
the
Fund,
Fundrise
Growth
Tech
Fund,
LLC,
Fundrise
Real
Estate
Interval
Fund,
LLC
and
Fundrise
Real
Estate
Interval
Fund
II,
LLC.
FOR
MORE
INFORMATION
Investment
Adviser
Fundrise
Advisors,
LLC
11
Dupont
Circle
NW,
9th
Floor
Washington,
DC
20036
Fundrise
Income
Real
Estate
Fund,
LLC
11
Dupont
Circle
NW,
9th
Floor
Washington,
DC
20036
(202)
584-0550
This
report
is
submitted
for
the
general
information
of
the
shareholders
of
the
Fund.
It
is
not
authorized
for
distribution
to
prospective
investors
unless
preceded
or
accompanied
by
an
effective
prospectus,
which
includes
information
regarding
the
Fund’s
risks,
objectives,
fees
and
expenses,
experience
of
its
management,
and
other
information.
(b) Not applicable.
 
Item 2. Code of Ethics
 
Not applicable for the semi-annual reporting period.
 
Item 3. Audit Committee Financial Expert
 
Not applicable for the semi-annual reporting period.
 
Item 4. Principal Accountant Fees and Services
 
Not applicable for the semi-annual reporting period.
 
Item 5. Audit Committee of Listed Registrants
 
Not applicable for the semi-annual reporting period.
 
Item 6. Investments
 
(a) The schedule of investments is included as part of the report to Shareholders filed under Item 1(a) of this form.
 
(b) There were no divestments of securities (as defined by Section 13(c) of the 1940 Act) for this semi-annual reporting period.
 
Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies
 
Not applicable.
 
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies
 
Not applicable.
 
Item 9. Proxy Disclosures for Open-End Management Investment Companies
 
Not applicable.
 
Item 10. Remuneration Paid to Directors, Officers and Ohers of Open-End Management Investment Companies.
 
Not applicable.
 
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
 
Not applicable.
 
Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
 
Not applicable for the semi-annual reporting period.
 
 
Item 13. Portfolio Managers of Closed-End Management Investment Companies
 
(a) Not applicable for the semi-annual reporting period.
 
(b) As of August 20, 2025, there have been no changes in portfolio managers since the most recent
annual report.
 
Item 14. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
 
There were no purchases of the Registrant’s equity securities by the Sponsor or other affiliated purchasers for this semi-annual reporting period.
 
Item 15. Submission of Matters to a Vote of Security Holders
 
As of August 20, 2025, there have been no material changes in the procedures by which Shareholders may recommend nominees to the Board of Directors.
 
Item 16. Controls and Procedures
 
(a) The Registrant’s principal executive officer and principal financial officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the 1940 Act) are effective as of a date within 90 days of the filing date of this Report, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.
 
(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
 
Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
 
Not applicable.
 
Item 18. Recovery of Erroneously Awarded Compensation
 
Not applicable.
 
Item 19. Exhibits
 
(a)(1) Not applicable.
 
(a)(2) Not applicable.
 
(a)(3) A separate certification for each of the Registrant’s Principal Executive Officer and Principal Financial Officer as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) and Section 302 of the Sarbanes-Oxley Act of 2002 is filed herewith.
 
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are filed herewith.
 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
Fundrise Income Real Estate Fund, LLC
 
By
/s/ Benjamin S. Miller
 
 
Name: Benjamin S. Miller
 
 
Title: President
 
 
 
 
Date
August 20, 2025
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
 
By
/s/ Benjamin S. Miller
 
 
Name: Benjamin S. Miller
 
 
Title: Principal Executive Officer
 
 
 
 
Date
August 20, 2025
 
 
By
/s/ Alison A. Staloch
 
 
Name: Alison A. Staloch
 
 
Title: Treasurer and Principal Financial Officer
 
 
 
 
Date
August 20, 2025
 
 
 
ATTACHMENTS / EXHIBITS

ATTACHMENTS / EXHIBITS

cert302.htm

section906.htm