ExchangeRight Launches New ER Shares for Essential Income REIT
ExchangeRight, a Pasadena-based provider of real estate DST and REIT investments, launched a new share class for its Essential Income REIT, a Maryland statutory trust, exclusively for broker-dealer representatives and their clients.
The REIT currently pays an annualized distribution rate on new investments of 6.41% for its Class I shares and 6.02% for its Class A shares, and targets 6% monthly tax-efficient income with a 10% total annual internal rate of return for its Class ER shares.
The Class ER shares’ return target is anchored by the performance of the Essential Income REIT’s $1.2 billion real estate portfolio, which is diversified across 353 properties, 34 states, and 36 “historically recession-resilient” and primarily investment-grade credit tenants as of May 31, 2024.
“Our new ER shares are structured to achieve a special win-win arrangement for the Essential Income REIT’s investors and ExchangeRight,” said Joshua Ungerecht, a managing partner at ExchangeRight. “In exchange for providing longer-term capital to accelerate the REIT’s acquisitions and value enhancement, Class ER investors may directly share in the additional potential profits resulting from these acquisitions.”
