ExchangeRight Makes Bonus Distribution in Essential Income REIT Class ER Shares
ExchangeRight announced its first bonus distribution in the Essential Income REIT’s Class ER shares as a result of investor participation in ExchangeRight’s DST fees, representing 3.58% distribution on invested capital. The distribution is in line with the company’s underwriting targets and comes ahead of schedule, generated by Sponsor DST fees earned in connection with the REIT’s acquisition of its Net-Leased Portfolio 28 DST’s 23-property portfolio.
The bonus distribution is in addition to the current 6.00% annualized return for Class ER shares, which is anchored in the performance and growth of the Essential Income REIT’s $1.3 billion portfolio. The total distribution rate for investors’ first full year of ownership in Class ER shares is now 9.58%.
In return for providing the Essential Income REIT with capital to accelerate acquisitions and growth, Class ER shares are eligible to participate in a first-year bonus from the Sponsor’s DST fees as well as other potential growth and sponsor fee participation at the end of a targeted five-year hold period.
“Not only are ER Shares investors receiving a bonus distribution generated by the REIT’s acquisitions, but these newly acquired properties also create additional diversification for the REIT and are anticipated to be accretive to its Net Asset Value and Adjusted Funds from Operations dividend coverage ratio,” said Joshua Ungerecht, a managing partner at ExchangeRight.
Pasadena, CA-based ExchangeRight and its affiliates’ vertically integrated platform features over $6.3 billion in assets under management across more than 1,300 properties, and 25 million square feet throughout 47 states, as of November 30.
