Capital Square Apartment REIT Increases Dividend
Capital Square Apartment REIT Inc., a Regulation D real estate investment trust sponsored by Capital Square, announced that its board of directors has authorized a daily distribution rate of $0.00138 per day per share on its outstanding common stock for the period commencing on April 1, 2023, and ending on June 30, 2023. The company says distributions payable to each stockholder of record during a month are payable in arrears the following month.
Capital Square says this is the second quarter in which the board of directors has authorized a daily distribution rate of $0.00138. Previously, the board of directors had authorized a daily distribution rate of $0.00137 per day per share, equal to an annualized rate of 5.0%, since the initial sale of shares in its private placement offering in April 2021. According to the company, 100% of distributions have been paid from cash flow from operations since inception.
“Actual in-place rents at Capital Square Apartment REIT’s Sapphire at Centerpointe property have increased by 17.2% since the second quarter of 2021,” said Louis J. Rogers, chief executive officer and chairman of the board. “With the recent addition of Saltmeadow Bay Apartments in the first DST/UPREIT transaction, we expect Capital Square Apartment REIT’s financial condition to be even stronger in the future as we grow the portfolio with well-performing, income producing multifamily properties.”
On March 30, 2023, Capital Square Apartment REIT acquired Saltmeadow Bay Apartments, a 229-unit Class A multifamily property in Virginia Beach, Virginia for a total purchase price of $72 million, which was structured as a tax-free UPREIT contribution under Section 721 of the Internal Revenue Code. The owners of over 85% of the DST interests in Saltmeadow Bay Apartments exchanged their DST interests for OP units in an UPREIT transaction.
Capital Square Apartment REIT Inc. is a real estate investment trust that buys and manages a mixture of Class A and Class B multifamily properties in the Southeast and Texas for both income and growth. The company is sponsored by Capital Square, a national real estate firm that is led by a seasoned team of real estate investment professionals with decades of experience.
Capital Square is a real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges and qualified opportunity zone funds for tax deferral and exclusion. Since 2012, the company has completed more than $3 billion in transaction volume. Capital Square’s related entities provide due diligence, acquisition, loan sourcing, property/asset management, and disposition, for high-net-worth investors, private equity firms, family offices and institutional investors.
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