AT COGENT BAY, OUR BUSINESS PLAN IS SIMPLE.

Cogent Bay Realty Inc., a California based corporation formed in 2024 and is in Fairfield, California and is managed by David Sowels. As a new REIT, you have the option to invest early at start up and take advantage of early value.

COGENT BAY REALTY INC. was formed to create an Income and Growth Fund, which may become a publicly traded REIT in the near future and to give the smaller investor the power to invest in high value properties as a member of a Real Estate Trust. Management’s goal is to increase investor profits through positive cash flow and growth in the value of its holdings and from high returns on the sale of quality real estate projects.

 REITs provide investors with many benefits. First, due to their relatively attractive dividend yields, REITs are a good source of income for an investment portfolio. Second, as the REIT raises rents and acquires more investment properties, the REIT can increase the dividend. And finally, as the dividend grows over time, the stock price will likely also grow. However, we note that REIT common dividends can be reduced should earnings decline.  

 Funds From Operations (FFO) are essentially net income prior to non-cash and non-recurring items such as depreciation expense and amortization, and gains and losses from property sales. Unlike buying a computer, which declines in value in a matter of months, well-maintained real estate tends to appreciate over time. As a result, REIT analysts look at net income prior to depreciation and other non-cash and non-recurring items to determine the amount of cash available for the company to pay dividends. 

There are many reasons investing in a REIT is great for the individual hard working investor.

The first is U.S. REITs are required to pay at least 90% of their taxable income in dividends. However, investors should be aware that taxable income is after depreciation expense. So even though a REIT may pay more than 90% of its taxable income in dividends, the typical REIT will pay out only 65% to 90% of the cash it generates (after paying expenses), or Funds From Operations (FFO). 

The second reason is investing in a REIT provides investors with exposure to a diversified portfolio of properties across different sectors (such as residential, commercial, industrial, or retail) in various locations. This process is called geographic diversification. This diversification helps spread risk because the performance of one property or sector is less likely to significantly impact the overall performance of the REIT. It also allows investors to benefit from the potential growth and stability of multiple real estate markets simultaneously, enhancing the risk-adjusted returns of their investment portfolio.

Finally, the additional benefits are hard to pass up. They are:

1. The potential for steady rental income generated by the properties within the REIT portfolio.

2.  Investors can buy and sell shares of the REIT providing liquidity compared to owning individual properties.

3.  You do not have to worry about managing rental properties. Our REIT has a management team on staff, experienced in managing and optimizing properties, which will lead to better returns for investors.

4. There are tax advantages with investing in REITs, such as potential tax deductions and favorable tax treatment of dividends. Contact us for more details. We recommend that you also work with your tax professional to discuss this benefit. 

5. Cogent Bay Realty Inc. REIT's goal is to build trust with our investors by reporting financial performance and property information.

No. Unfortunately not everyone is qualified to receive units.  Therefore the Securities ACT of 1933 was put in place to protect investors that don’t qualify.  Only qualified investors can receive these shares. This Act also requires that the REIT have the first right of refusal to buy your shares from you when you are ready to sell.

This document is only available from the Fund Manager, David Sowels. If you are interested in investing, let's chat. David and his team are available anytime at (707) 694-0221. You can also click on the INVESTOR PORTAL link to look at our fundraise performance.

Our Management Team has planned and budgeted for an exit strategy for the Class A Unit-holders  in the form of an exchange listing for free trading of the units / shares.

Reach out to our entire management team at info@cogentbay.com