FS Credit Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust sponsored by FS Investments, will soon implement a number of changes to its offering.
The DI Wire reported in June that the company was planning to modify its current offering and switch from a daily NAV REIT to a monthly NAV REIT, thus conducting share valuations and shares repurchases on a monthly basis. The company said that it does not intend to change its investment objectives or strategies.
Additionally, FS Credit Real Estate Income Trust is changing the name of its Class S shares (only available via a private offering) to Class F shares, and changing the name of its Class T-C shares to Class S shares. The company also plans to change the fee structure associated with various share classes in its initial offering.
The company anticipates that these changes will be effective around August 20, 2018 and will begin accepting subscriptions on a monthly basis on September 1, 2018.
Class T shares will have a maximum 3.0 percent sales commission and 0.5 percent dealer manager fee, compared to the current maximum sales commission and dealer manager fee of 3.0 percent and 1.25 percent, respectively.
Class T shares will have an annual 0.85 percent ongoing stockholder servicing fee, compared to the current fee of 1.0 percent annually.
The total underwriting cap associated with Class T shares and Class S (formerly Class T-C) shares will increase to 8.75 percent. Fees and selling commissions for Class T and Class T-C shares are currently capped at 7.25 percent.
The upfront selling commissions for Class S shares (formerly Class T-C) will increase from up to 3.0 percent to up to 3.5 percent.
Class T and Class T-C shares (soon to be Class S shares) are available through brokerage and transactional-based accounts.
FS Credit Real Estate Income Trust, which is advised by FS Real Estate Advisor and sub-advised by Rialto Capital Management, plans to invest in floating-rate mortgage loans that are secured by first-priority mortgages on transitional commercial real estate properties. The offering was declared effective by the SEC in September 2017. As of the first quarter of 2018, the company raised $34 million in investor equity and oversaw a portfolio of six mortgage loans totaling approximately $79 million.