ExchangeRight, a sponsor of diversified real estate DST and REIT investments, has announced the ExchangeRight Essential Income REIT has become a publicly reporting company as of June 26, 2023.
This launches the REIT’s public reporting track record that will include quarterly 10-Q reports, annual 10-K reports, and periodic 8-K reports among others, and supports the execution of the offering’s aggregation strategy on behalf of its investors.
“The Essential Income REIT was designed for security and stability during recessionary times like these by investing in properties net-leased to tenants primarily with investment-grade credit that are successfully operating in the necessity-based retail and healthcare industries,” Warren Thomas, a founder and managing partner of ExchangeRight. “This accomplishment empowers us to be able to serve more registered representatives, advisors and their investors who are seeking secure capital, stable income and strategic exits. When our investors succeed, we succeed. We are pleased to take this next step in our aggregation strategy to enhance long-term value on behalf of investors, helping them face challenges in this unprecedented market with a historically recession-resilient strategy, targeting the protection and growth of their hard-earned wealth.”
This registration does not result in the listing of the REIT’s shares on any securities exchange, nor will it establish the shares of the Essential Income REIT as freely tradeable or generate a public market.
The company says that ExchangeRight Essential Income REIT is a self-administered real estate company, formed on January 11, 2019, focusing on investing in single-tenant, primarily investment-grade net-leased real estate. The REIT pays an annualized distribution rate on new investments of 6.27% for its Class I shares and 5.89% for Class A shares and has fully covered its dividend with adjusted funds from operations since its inception and through its most recently reported period.
The company owned 337 properties in 34 states as of March 31, 2023. ExchangeRight says the properties are occupied by 37 different national primarily investment-grade necessity-based retail tenants and are additionally diversified by industry, geographic region, and lease term. The company has elected and is qualified to be taxed as a real estate investment trust for U.S. federal income tax purposes.
ExchangeRight and its affiliates’ platform has more than $5.6 billion in assets under management that are diversified across more than 1,200 properties and over 22 million square feet throughout 47 states. The company invests in net-leased properties in the necessity-based retail and healthcare industries, as well as value-add inline and outparcel retail spaces shadow-anchored by grocery tenants.