FS Credit REIT Closes on $148.6 Million of Originations in February 2024

FS Credit Real Estate Income Trust Inc., a monthly net asset value real estate investment trust sponsored by FS Investments, generated positive total returns across all share classes in February driven by distributions paid during the month and appreciation in net asset value.

Its declared monthly NAV per share as of Feb. 29, 2024, was as follows (calculations based on full figures in filing, percentages rounded to the nearest hundredth):

Class S shares had a NAV per share of $25.07, compared to $25.06 per share the previous month, a 0.05% increase.

Class T shares had a NAV per share of $24.84, compared to $24.83 per share the previous month, a 0.05% increase.

Class D shares had a NAV per share of $24.89, compared to $24.88 per share the previous month, a 0.05% increase.

Class M shares had a NAV per share of $24.94, compared to $24.93 per share the previous month, a 0.04% increase.

Class I shares had a NAV per share of $24.20, compared to $24.19 per share the previous month, a 0.01% increase.

Class F shares had a NAV per share of $25.25, compared to $25.22 per share the previous month, a 0.11% increase.

Class Y shares had an NAV per share of $24.16, compared to $24.15 per share the previous month, a 0.02% increase.

The current annualized distribution rate is 7.63% for Class I shares, 7.12% for Class D shares, 7.11% for Class M shares, 6.52% for Class S shares and 6.58% for Class T shares, based on the April 1, 2024, transaction price.

The REIT noted that it met 100% of repurchase requests tendered in February, and highlighted the long-term nature of its borrowings, as approximately 95% are financed through match-term, non-mark-to-market facilities.

The REIT closed on $148.6 million of originations in February 2024, including:

• $114.3 million in loans backed by a diversified mix of Class A industrial assets totaling 1.8 million square feet. Each of the properties is in regions where industrial has thrived, including Memphis, Tenn.; Inland Empire, Calif.; Atlanta; Dallas-Fort Worth; and the Indianapolis metropolitan statistical area. All the properties are 100% occupied with weighted average lease terms between 4.1 and 6.3 years.
• A $34.3 million loan backed by a 269,000-square-foot, Class A industrial park, comprised of nine buildings located on a major highway that traverses the Phoenix metropolitan statistical area. The property is 92.1% occupied by a mix of high-quality tenants.

As of Feb. 29, 2024, the portfolio was weighted to multifamily (57%), and followed by hospitality (13%) and industrial (11%). The portfolio’s allocation reflects its view that these sectors are well-positioned to benefit from long-term structural trends.

The number of shares outstanding totaled 121.5 million as of Feb. 29, 2024, compared to 121.8 million the previous month. The company’s total net asset value equaled approximately $3 billion at month’s end, compared to $3.01 billion in January.

FS Credit REIT invests primarily in floating rate senior loans secured by commercial real estate properties. The REIT is currently offering up to $2.75 billion in shares of common stock on a continuous basis, consisting of up to $2.5 billion in shares in its primary offering and up to $250 million in shares pursuant to its distribution reinvestment plan. As of March 14, it had issued and sold in the offering approximately 40.4 million shares of its common stock in the primary offering for total proceeds of $999.49 million and approximately 5 million shares of its common stock pursuant to its distribution reinvestment plan for a total value of $124.12 million.

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