A Delaware Statutory Trust (DST) is a legal entity that allows multiple investors to own fractional interests in large, professionally managed real estate. DSTs are frequently used by 1031 exchange investors who want to keep the tax deferral benefits of a like‑kind exchange but prefer a passive inve

 The property manager handles leasing, financing, and maintenance — investors simply collect proportionate income distributions. 

  DSTs often hold Class‑A properties such as multifamily complexes, healthcare facilities, storage portfolios, and logistics centers. 

 Investors can allocate smaller amounts across multiple DSTs and markets, reducing single‑property risk. 

  Minimum investment thresholds typically range from $100,000 to $500,000, depending on the trust offering. 

 DSTs generally have a hold period of 5 to 10 years. Net annual cash‑flow distributions often range around 4 % – 7 % (after fees), depending on the property type, funding structure, and market conditions. When the property is sold, investors may realize additional capital appreciation — all while 

deferring taxes through 1031 rules if they 

re‑exchange into another DST or property. 

DST interests qualify as “like‑kind” real estate 

under IRS Revenue Ruling 2004‑86, making 

them eligible for 1031 exchanges. 

Investors are able to Exchange from Direct property ownership into a DST for tax deferral and passive income. Also exchange from DST to DST. Exchange from DST into another stand- alone property.