ABOUT US
TAX-ADVANTAGE QUARTERLYDIVIDENDS
KM Realty Investment Trust, Inc., a privately-held REIT, is an owner and operator of smaller,unanchored shopping centers. Its assets can be categorized as high-quality and well-located,
with a mix of internet-resistant service tenants, medical practices, and restaurants. These assetsare concentrated in or near areas of affluent growth in major metropolitan areas in the
Southwestern United States. Since its formation in 2018, the REIT has grown its property count by63%. KM Realty Investment Trust exercises corporate governance through a Board of Directors
chaired by Randall D. Keith, a 31-year industry veteran.
KM Realty owns or manages over 60+ shopping centers. We take on the responsibility of allproperty management and tenant relations, from our in-house team of leasing and
management experts. Our marketing team promotes the company, properties, and tenantstraditionally and through dedicated media outreach. Our accounting team consistently ensures
accurate reporting and prompt payments.
www.kmrealty.net 7500 San Felipe Street, Suite 750, Houston, TX 77063
UPREIT stands for Umbrella Partnership Real Estate Investment Trust. UPREIT transactions providemultiple benefits for property owners that lessen responsibility while sustaining income. The KM REIT has
acquired shopping centers through both traditional means purchasing either marketed or off-marketproperties as well as growing through these UPREIT Transactions.
OP Units can be exchanged intocommon shares on a 1-to-1 basis,which can be traded if the REIT is
public.
OP Units can easily be transferredto multiple beneficiaries. Upon
death, Units can be “stepped up”,allowing beneficiaries to tenderUnits without the possibility ofincurring tax on built-in gain.
Exchange partners diversifyholdings in UPREIT transactions byreceiving an interest in the entireREIT, mitigating the impact of a
potential decline in value.
EXCHANGE
Securities (OP Units) are offered ona tax-deferred basis, allowing
contributor to defer tax on built-ingains.
OP (Operating Partnership) Unitownership with KM Realty providesholders with income in the form ofan annual dividend, paid quarterly.
ESTATE PLANNINGDIVERSIFICATION
UPREIT TRANSACTIONS
OP Units are allocated their shareof income/expense like otherlimited partnerships via a K1.
TAX REPORTING
BENEFITS OF AN UPREIT TRANSACTION
www.kmrealty.net 7500 San Felipe Street, Suite 750, Houston, TX 77063
An expanding network ofinfluential industry leaders
along with the proactive andinnovational environment that
cultivates an unyieldingposition to excel and enhance
the value for everyone
Suburban areas of majormarkets with a focus on
higher average householdincome
WHY INVEST WITH US?
GEOGRAPHICDIVERSITY
A diversified portfolio withunanchored internet-resistant
shopping centers
An exclusive opportunity totransact with tax-deferment
and no closing costs
EXCHANGEBENEFITS
UNIQUE TENANT BASE
POSITIONEDFOR GROWTH
AVERAGE HOUSEHOLDINCOME
$109,585
14.12%5 YEAR GROWTH
Minimal real estate risk andannual dividend paid quarterly
CASH FLOW
116 %ANNUAL
DIVIDENDPRICE PER
SHARE
GROSS LEASABLE AREA764,000
PROPERTIES35
1 23
The primary agreement in which the seller agrees to contributeassets to OP
Contribution Agreement
www.kmrealty.net 7500 San Felipe Street, Suite 750, Houston, TX 77063
Median HH IncomeMedian Home ValueFive Year Growth
*Medians Based on 3-Mile Radius Data Courtesy of Costar**Averages Based on Market Medians Courtesy of DataUSA.io
$109,585
$275,818
14.12% 5.35%
$207,900
$58,405KM REIT* Market**
KM REALTY INVESTMENT TRUST, INC. MODEL
Additional Considerations
Buda Town Center – A single individual’s wholly-controlled entity was the ownerof an 11,397 SF eight-tenant shopping center. The individual chose to exchangethe equity in the shopping center for shares of the KM Realty OperatingPartnership. In doing so the individual elected for the shares to be in the nameof a living trust, which it had established, making the living trust the recipient ofthe quarterly dividend.
1
Morton & Fry Business Center – Two partners withequal shares chose to terminate their partnership ina 36,150 SF seventeen-tenant shopping center whichthey had developed. Neither partner wanted to giveup the steady cash flow; however, they did want toboth diversify and hand over the managementresponsibilities.
Aliana II – A developer, funded by a group of limitedpartners, ad constructed an 8,400sf shoppingcenter. After refinancing the shop-ping center, thedeveloper had returned the original principal pluspreferred return to the investors and, with theadded value created, the individual investors werepleased to defer their gain and begin to receivequarterly distributions.
REIT(GENERAL PARTNER)
Operating Partnership
Limited Partners
PropertyOwning
Subsidiary
PropertyOwning
Subsidiary
PropertyOwning
Subsidiary
OP Units
OP Units
100%
Agreements for Contributing to the OP
2
3
GEOGRAPHY DEMOGRAPHICS & CASE STUDIES
Partnership Agreement
Each OP Unit equals the value of one REIT shareOP Units can be converted to REIT common shares anytimeOP Unites are restricted securities and not freely tradeable
OP Unit Value & Selling
Set forth the rights and obligations of the OP and its limitedpartners
