ExchangeRight Reports Record-Breaking Year in 2020

ExchangeRight, a sponsor of securitized 1031 exchange real estate offerings, has reported that 2020 was a record-breaking year for the company.

ExchangeRight, a sponsor of securitized 1031 exchange real estate offerings, has reported that 2020 was a record-breaking year for the company despite the economic turbulence caused by COVID-19 and the government-imposed shutdowns across the country.

ExchangeRight and its affiliates sponsored 60 offerings, 11 of which were fully subscribed in 2020. Over the course of the year, investors allocated more than $535 million into its offerings, representing 33 percent growth from 2019.

The company grew to more than $3.2 billion in assets under management, becoming the second largest sponsor of privately held 1031-exchangeable real estate investments and one of the top 10 sponsors of non-traded real estate securities in the United States by equity invested, according to reports produced by Mountain Dell Consulting and Robert A. Stanger & Company.

ExchangeRight noted that it collected roughly 99.9 percent of rent due to investors from its net-leased assets and met or exceeded targeted monthly distributions across all of its offerings, which it claims to have done since its inception in 2012.

According to ExchangeRight, the firm brought four offerings full cycle, with total returns ranging from 118 percent to 181 percent including return of capital for investors. The weighted average annualized return across all of its full-cycle offerings to date ranges from 8.16 percent to 10.18 percent, and approximately 20 percent per year to investors for its sister company, Telos Capital.

ExchangeRight purchased more than 180 net-leased properties in 2020, bringing its total number of assets under management to 775 properties across 39 states and covering approximately 13 million square feet as of year-end.

The company noted that the majority of these properties are backed by “investment-grade-credit tenants” and more than 93 percent of the net operating income generated by these properties is from essential businesses.

ExchangeRight serves approximately 4,300 investors and sponsors real estate investment trust, fund, and 1031 Delaware statutory trust offerings. The company invests in net-leased assets in the necessity-based retail and healthcare industries.

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