ExchangeRight Expands Essential Income REIT Credit Line to $135M with Fifth Third Bank
ExchangeRight has announced that Fifth Third Bank has increased its commitment to the firm’s Essential Income REIT’s revolving line of credit by $35 million, bringing the total to $135 million. This expansion strengthens the REIT’s credit access, supplementing its previously announced $75 million credit facility with Wells Fargo, which has the potential to grow to $400 million.
The expanded credit facility bolsters ExchangeRight’s ability to manage portfolio composition and financing strategies, providing increased flexibility for ongoing operations. Additionally, the additional capacity positions the REIT to capitalize on long-term fixed-rate corporate bonds, optimizing financing and improving potential Adjusted Funds from Operations (AFFO).
“This increased credit facility enhances our ability to scale the REIT efficiently, pursue value-accretive acquisitions, and continue growing the REIT’s diversification and value on behalf of investors,” said Joshua Ungerecht, a managing partner at ExchangeRight.
Formed on January 11, 2019, the Essential Income REIT is a Maryland statutory trust and self-administered real estate company, available exclusively to accredited investors. It focuses on single-tenant, primarily investment-grade net-leased properties. The REIT currently offers an annualized distribution rate of 6.35% for Class I shares, 5.97% for Class A shares, and 6.00% monthly tax-efficient income for Class ER shares.
