The return on your investment consists of 2 parts:
1. Annual interest
The annual interest rate is determined based on the net rent of the linked property at the time of the initial offering. This interest rate remains constant throughout the entire duration of the investment, until the maturity of the notes. Interest payments are disbursed quarterly, on a pro-rata basis, for the duration of your note ownership.
2. Potential bonus interest
In addition to your Fixed Interest, you may also receive Bonus Interest, consisting of two main components:
- Rental Surplus Bonus Interest: During the holding period of BRXS notes, income and expenses related to the linked property may fluctuate. If rental income growth surpasses associated costs, a surplus may accumulate in the collective BRXS cash reserve. If this surplus exceeds operational needs, BRXS may distribute it as Rental Surplus Bonus Interest, shared proportionally among all noteholders based on the number of notes they hold. Noteholders must hold notes at the time of bonus interest payouts to benefit.
- Appreciation Surplus Bonus Interest: At the conclusion of the holding period, BRXS sells the associated investment property and matures the notes. After deducting costs, taxes, and fees, any surplus represents net property appreciation. If this net appreciation is positive, it is distributed proportionally among noteholders of the matured notes linked to the specific property. Noteholders must hold notes at the time of maturity to benefit.
You can read more about this bonus interest here.
