Aalaya: Proposed Investment Approach and Methodology.

Version 0.2 · 4 October 2026 · Status: proposed approach, prelaunch

This paper describes how Aalaya proposes to invest. It is not an offer to sell an investment, and nothing described here is available to buy. It does not show that any process, model or portfolio is operating today. Terms that are not final are marked as such.

1. Summary and status

Aalaya is developing an investment offering in U.S. rental housing. The plan has two parts:

• Five REITs. Each would hold all four of Aalaya's housing strategies in a different mix.
• A managed multi-REIT fund. It would invest in all five REITs, with Aalaya's management setting the weight of each.

Investors would buy an interest in one or more REITs, in the fund, or in both. Aalaya's team would choose the underlying investments. Planned AI analysis would inform those choices. People would make them.

What exists today is a plan and an investor waitlist. The legal entities, the offering documents, the investment team's full membership and the operating systems are still being put in place. Section 11 lists what is undecided.

2. Product structure

Who does what

Aalaya and its affiliated entities are intended to act as sponsor and manager. This paper does not name those entities, because they are not yet established in a form that can be cited.

The two routes

Route A: individual REITs
Investor → shares or units in the chosen Aalaya REITs
         → property investments selected by Aalaya's team

Route B: managed multi-REIT fund
Investor → interest in the fund
         → all five Aalaya REITs, weighted by Aalaya's management
         → those REITs' property investments

What the investor would own

An investor would own the investment interest: REIT shares or units, or a fund interest. An investor would not hold title to a specific building. The exact rights attached to each interest will be defined in the offering documents.

The fund adds a level of ownership. It is not a fifth housing category or a sixth REIT. An investor who held both the fund and individual REITs would be exposed to the same REITs twice. Holding five REITs spreads exposure across strategies but does not remove concentration risk: all five invest in U.S. rental housing.

Planned minimum

The planned minimum is US$55,555 as a total initial investment, which could be split across individual REITs and the fund. It is not a minimum for each REIT, not a balance that must be maintained, and not a payment to join the waitlist. Rules for later contributions have not been set.

3. The rental-housing thesis and four strategies

Aalaya's thesis is that a portfolio of U.S. rental housing, spread across four different kinds of housing, can be assembled and managed as REIT investments. Existing rental properties lead the plan.

Each investment would be counted under one primary strategy so that nothing is counted twice. The detailed classification rules are still to be defined by the investment team.

Research behind each strategy

This version sets out which public sources the research would draw on. It does not yet report findings, and Aalaya has no data integrations with these sources.

• Demand and households: U.S. Census Bureau housing and demographic data.
• Employment: U.S. Bureau of Labor Statistics data.
• Student housing: National Center for Education Statistics enrollment data.
• LIHTC: U.S. Department of Housing and Urban Development and Internal Revenue Service program material, and state housing agencies.
• Individual properties: property-level records and diligence material, when an opportunity is under review.

Each finding added in a later version will be recorded with its source, the period the data covers, the date it was accessed, its geographic scope and its limitations.

How the co-operative strategy relates to resident ownership

In a housing co-operative, residents typically own shares in an entity that owns the building. A REIT cannot simply "own" those residents' homes. The intended forms of investment are therefore interests in property, lending to co-operative entities, and interests in related entities. Which of these Aalaya uses, and what rights residents and investors would each have, will be set out in the offering documents. Until then this paper does not assume one model.

4. Capital deployment and eligible activities

Each REIT would state a strategy and raise capital for it before selecting investments. Capital would then be invested over time. Investors would be committing to a strategy, not to a list of identified properties.

The activities intended to be in scope are:

1. Existing rental properties. These lead the plan.
2. Interests in property-owning entities and joint ventures.
3. Real estate debt.
4. Substantial renovation and redevelopment.
5. Brownfield and greenfield development.

Items 2 to 5 support the first. They carry additional risks, covered in Section 11. No limits on how much of a portfolio each activity could represent have been approved.

5. Proposed sourcing, diligence, valuation and financing analysis

This section describes an intended process. None of it is an operating control today.

• Sourcing. Opportunities would be compared against each REIT's stated strategy and the four housing categories.
• Diligence. For equity investments: the property's condition, tenancy, rent and cost history, and local demand and supply. For joint ventures and entity interests: the partner, the governing terms and the rights attached to the interest. For debt: the borrower, the collateral and the repayment source. For redevelopment and development: cost, schedule, permits and the contractor.
• Valuation. Proposed analysis would test the asking price against rent, occupancy, cost and exit assumptions. The valuation basis Aalaya will use for reporting has not been chosen.
• Financing. Proposed analysis would compare debt terms and test how results change when rates, occupancy or costs move. Planned borrowing is up to 40% of asset value.

6. Planned AI analysis and human authority

The seven planned areas

For each area the table gives the proposed inputs, what the analysis would produce, and its main limitation.

Ongoing AI monitoring of portfolios is not part of this plan.

What would need to be true before relying on it

• Data quality. Inputs can be stale, missing or wrong. Each analysis would need to state the age and source of its data.
• Uncertainty. Outputs would need to be ranges with stated assumptions, not single figures.
• Bias. Housing data can reflect historical patterns that should not drive decisions. Analyses would need review for this.
• Validation. No model, dataset, score or backtest has been built or tested. Until one is, there are no results to report.

The NIST AI Risk Management Framework is used here as a reference for organizing these questions. Citing it does not mean Aalaya has implemented or been certified against it.

Who decides

Aalaya's investment team or committee would hold final authority over every investment decision. AI analysis would be one input to that decision.

7. Portfolio construction

• Four strategies in every REIT. The five REITs differ in mix, not in which strategies they hold.
• One primary strategy per investment. This avoids double counting. The hierarchy for borderline cases is still to be defined.
• Illustrative mixes. The percentages shown on the Aalaya site illustrate a mix of property investments. They exclude cash and other holdings. They are not returns, targets or current holdings, and they do not imply a valuation basis such as net asset value or cost.
• Manager discretion. Aalaya's team could change allocations within each REIT's strategy.
• Fund weights. The fund would hold all five REITs at weights set by Aalaya's management. No weights have been set, so no combined mix can be calculated.
• Overlap. Direct REIT holdings and the fund would overlap.
• Unresolved. The valuation basis, concentration limits and fund weights.

The five planned REITs currently carry the provisional names Campus, Affordability, Community, Multifamily and Urban mix. A name such as "Campus" or "Multifamily" does not mean the REIT holds a single strategy.

8. Planned operations

Investment analysis, portfolio management and property operations are separate functions. Cura belongs to property operations. It is not what an investor would buy.

How conflicts of interest between Aalaya, its affiliates and investors would be handled is a matter to be defined in the offering documents.

9. How returns could arise, and reporting

Returns could come from three sources:

1. Net rental income: rent collected, less operating costs.
2. Changes in property value, and sales.
3. Financing income: income from real estate debt.

What a portfolio earns and what investors receive are different things. Distributions are planned quarterly and are not guaranteed. All three sources vary and none is guaranteed. This paper gives no return targets or projections.

Aalaya plans to report to investors on each REIT's strategy and mix, the underlying investments, the roles of AI analysis and the team, responsibilities, fees and financing, performance and distributions, and documents and risks. The format and frequency have not been set.

10. Planned terms, fees and expenses

These terms are planned. They could change before launch, and the offering documents would govern.

How these were chosen

Aalaya's owner selected these terms from structures commonly used by private and non-traded real estate offerings. They have not been checked against the current filings of comparable offerings. That comparison is still planned, and the terms may be revised once it is done.

The comparison would record, for each offering: its structure and share class; the management fee and what it is charged on; any performance fee and its conditions; acquisition, disposition, development and property-management fees; distribution and servicing costs; fund administration; expense reimbursements and waivers.

Still open on fees

• Whether the multi-REIT fund charges fees at both the fund level and the REIT level.
• Acquisition, disposition, development, property-management and administration charges.
• How net asset value is calculated, which the management fee and repurchases both depend on.

11. Risks and unresolved decisions

Risks

• Loss of capital. Property values can fall, and an investor could lose money.
• Income. Rents and occupancy can drop, and costs can rise.
• Liquidity. Repurchases are planned quarterly, capped at 5% of net asset value a quarter and at the manager's discretion. They are not guaranteed and could be limited or suspended. Investors should not assume they could withdraw on demand.
• Borrowing. Debt increases both gains and losses, and refinancing may not be available on acceptable terms.
• Development and redevelopment. Projects can run late, over budget, or fail to lease as planned.
• Debt investments. Borrowers can default, and collateral may not cover the loan.
• Concentration. All five REITs invest in U.S. rental housing.
• Program risk. LIHTC properties depend on program rules and compliance.
• Reliance on the manager. Investors would not select investments.
• Analysis risk. The AI analysis is planned and unvalidated.
• Layered costs. The fund route may bear costs at two levels.

Undecided

Statements about REIT qualification, investor eligibility and tax treatment need legal and tax review before they can be presented as facts about Aalaya.

12. References, glossary and scope

References

Checked on 4 October 2026. These sources inform vocabulary and research. They are not evidence of Aalaya's legal status or capabilities.

• U.S. Securities and Exchange Commission, Office of Investor Education and Advocacy, Investor Bulletin: Real Estate Investment Trusts (REITs). Used for REIT vocabulary.
• Internal Revenue Service, Instructions for Form 1120-REIT. A starting point for specialist review of REIT qualification. It does not establish that any Aalaya entity qualifies.
• Internal Revenue Service, Instructions for Form 8609. LIHTC program research.
• U.S. Securities and Exchange Commission, Division of Corporation Finance, CF Disclosure Guidance: Topic No. 6. Staff guidance on non-traded REIT disclosure, used as a prompt for fee, valuation, distribution and redemption topics. It does not determine Aalaya's offering category.
• National Institute of Standards and Technology, AI Risk Management Framework. Voluntary guidance used to organize the AI risk discussion.

Glossary

• REIT: real estate investment trust, a company that owns or finances real estate and meets specific tax-law requirements.
• PBSA: purpose-built student accommodation.
• LIHTC: the U.S. Low-Income Housing Tax Credit program.
• Co-operative housing: housing owned by an entity whose shares are held by its residents.
• Joint venture (JV): an investment made together with another party through a shared entity.
• Leverage: borrowing used to finance investments.
• Underwriting: the analysis used to decide whether and at what price to invest.

Version history

• 0.2, 4 October 2026. Adds the planned terms in Section 10: eligibility, fees, distributions, holding period, leverage and repurchases.
• 0.1, 4 October 2026. First public version. Sets out the proposed structure, strategies and method, and the open decisions. Contains no research findings, fee comparison or model results.

Scope

This is a public, investor-facing description of a proposed approach. It is not an internal operating manual, an offering document, or legal, tax or investment advice.