S1 DNK

S1 REIT is an investment company that provides everyone with access to professionally managed prime real estate in the capital.

We combine the expertise of full-cycle developer Standard One and property management firm S1 Ukraine. This allows you to co-own large-scale rental businesses and generate stable passive income in hard currency.

We invest in and manage income-generating residential and commercial real estate in the capital, ensuring reliability and high returns on your investment at every stage.

You invest in residential and commercial income-producing properties. S1 REIT manages these assets professionally, while you simply collect your passive income.

Your investment return consists of two complementary components:

1. Dividends (Regular Passive Income)
These are earnings generated from property rentals and professional asset management. The fund's monthly profit is distributed among investors as dividends, proportional to the number of units held.

2. Capital Appreciation (Asset Value Growth)
This is the income derived from the increase in the market value of your investment units. The value of income-producing real estate tends to rise over time, particularly after project commissioning. Consequently, the price of the units backed by these assets increases.

You can realize capital gains by selling your units or upon the fund's maturity.

It is the target yield calculated for the fund based on its financial model using the IRR (Internal Rate of Return) method. This represents the annual return of the fund as a portfolio of assets, accounting for all cash flows tied to specific dates: negative flows at the moment of capital investment in construction or property acquisition (capital expenditures and operating costs), and positive flows at the moment of net operating income receipt (rental payments and government bond coupon payments), including the final positive cash flow from asset sale. This is why IRR provides a fair annual performance rate that does not merely average returns but mathematically weights every hryvnia based on the time it is actively deployed within the fund.

Real estate acquired by the Fund will be leased upon construction completion, generating rental income. Additionally, this real estate may appreciate, creating a secondary source of income for the Fund through an increase in the market value of the corporate rights of the entity owning the property. The Fund also expects to generate income from investing in government debt securities. Fund income, net of expenses, constitutes the Fund's profit.

Our calculations are based on three "pillars" of our strategy:

1. Wholesale Purchase Price: The Fund acquires properties at a discount to market value, profiting from the margin.

2. Asset Appreciation: Over the fund's term, properties appreciate; at maturity, they are sold at market value, and the profit is distributed among investors.

3. USD-Indexed Rent: Properties are leased at rates indexed to the USD exchange rate.

All fund yield metrics are disclosed on our website and in the fund's registration documents.

In simple terms: projected profit is the result of professional management of your real estate, where every percentage point is supported by real rental income and the appreciation of square meters in USD equivalent.

We strive for maximum transparency, which is why we use the widely accepted IRR calculation model. This represents the annual internal rate of return for the fund as a portfolio of assets, accounting for all cash flows tied to specific dates: negative flows at the moment of investment in construction or property acquisition (capital expenditures and operating costs), and positive flows at the moment of net operating income receipt (rental payments and government bond coupon payments), including the final positive cash flow from asset sale. This is why IRR provides a fair annual performance rate that does not merely average returns but mathematically weights every hryvnia based on the time it is actively deployed within the fund.

The price of your unit is not static; it reflects real market conditions. It is important to distinguish between two indicators:

1. Calculated Value (Net Asset Value): This is the unit value determined by dividing the fund's net assets by the number of units in circulation. The value of assets on the Fund's balance sheet is revalued in accordance with legal requirements, regulations, and the accounting policies of S1 REIT and IFRS.

Why does it increase? If the real estate owned by the fund appreciates in the market (e.g., due to construction completion or rising prices in Kyiv), the calculated value of the unit automatically rises. This is your capital gain.

2. Market Value (Trading Price): This is the price at which a unit can be bought or sold "here and now." It depends on market demand.

Why does it change? If there is high market interest in a specific asset, the market price of the unit may exceed the calculated value. It also tends to rise leading up to dividend payouts: the closer the payment date, the higher the valuation of the unit.

In simple terms: the unit value grows in tandem with the market price of Kyiv real estate. You earn not only from rent but also because your real estate holdings increase in value over time.

S1 REIT, similar to banks regarding deposits, acts as a tax agent for individual and non-resident investors in accordance with applicable legislation. When dividends are accrued, the fund withholds and pays taxes on behalf of the investor.

The tax rate on investor income depends on the type of income (dividends or capital gains), whether the investor is a legal entity or an individual, and their country of tax residence.

For individual residents, the tax rate depends on the income type:
• For dividends: 14% (9% Personal Income Tax + 5% Military Duty) of the accrued dividend amount.
• For capital gains from the sale of certificates: 23% (18% Personal Income Tax + 5% Military Duty) of the profit amount.

Resident legal entities must pay taxes independently. Please note that if capital gains are realized, investors are obligated to independently file an annual tax return regarding their financial status by May 1st of the following year.

For funds generating income from their inception, dividends will be paid out at a rate of at least 90% of the fund's actual profit. For funds that do not distribute dividends during the construction phase, payments will begin once the property is commissioned and occupied by tenants, also on a monthly basis.

This allows investors to choose their strategy: whether they prefer to receive dividends sooner but in smaller amounts, or later with higher potential returns.

You can recover your investment in two ways:

1. Scheduled (Upon fund maturity). Each fund has a specific term. Once it expires, the fund sells its assets (real estate) and distributes the proceeds among investors proportional to their shares. As a result, you receive both your principal investment and the profit from asset appreciation.

2. Early Exit (If you need funds sooner). You are not required to wait for the fund to close. You can sell your certificates at any time:
• How to do it: In your investor dashboard, click the "Sell Asset" button.
• Buyback Price: It is calculated automatically based on the current sale price, minus 1%.
• Timeline: Certificate buybacks are processed within 3 business hours.
• No Commissions: We cover all brokerage fees, so you receive the net buyback amount.

Important Note: If you wish to remain a fund investor, your account balance must maintain a minimum of 122 certificates (equivalent to the initial entry threshold). If you intend to withdraw more and your balance would fall below this threshold, you must sell all of your certificates entirely.