FS Credit REIT Continues Streak of Positive Returns Across Share Classes, Pays All Repurchase Requests

FS Credit Real Estate Income Trust Inc., a monthly net asset value real estate investment trust sponsored by FS Investments, reported that it generated positive total returns across all share classes in August. According to the REIT, it has delivered 53 consecutive months of positive total returns across varying macroeconomic conditions and financial markets.

Its declared monthly NAV per share as of Oct. 1, 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 $25.0766, compared to $25.1043 per share the previous month, a 0.11% decrease.

Class T shares had a NAV per share of $24.8374, compared to $24.8682 per share the previous month, a 0.12% decrease.

Class D shares had a NAV per share of $24.8932, compared to $24.9245 per share the previous month, a 0.13% decrease.

Class M shares had a NAV per share of $24.9427, compared to $24.9703 per share the previous month, a 0.11% decrease.

Class I shares had a NAV per share of $24.1719, compared to $24.2043 per share the previous month, a 0.13$ decrease.

Class F shares had a NAV per share of $25.3474, compared to $25.3694 per share the previous month, a 0.09% decrease.

Class Y shares had an NAV per share of $24.1410, compared to $24.1684 per share the previous month, a 0.11% decrease.

The current annualized distribution rate is 7.64% 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.

The REIT experienced a total NAV of approximately $3.025 billion at the end of August. This was a 1.18% decrease compared to July’s total NAV of approximately $3.062 billion.

The REIT also noted that it met 100% of repurchase requests tendered in August. Along these lines, the REIT also stated that its share repurchase plan normally limits monthly repurchases to 2% of the total NAV value of all eligible shares at the end of the prior month. However, in August 2024, repurchase requests exceeded this limit, reaching 2.24% of the NAV.  The REIT’s board of directors unanimously approved exceeding the 2% limit for August to fulfill all timely repurchase requests.

As of Aug. 31, 2024, the portfolio was weighted to multifamily (52%), followed by hospitality (14%), and industrial (11%). The portfolio’s allocation reflects its view that these sectors are well-positioned to benefit from long-term structural trends such as the record-high cost of homeownership, strong demand for business and leisure travel, and continued demand for technologically advanced warehouse space.

The number of shares outstanding totaled approximately 122.5 million at the end of August compared to nearly 123.9 million the previous month.

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 Sept. 16, it had issued and sold approximately 49.2 million shares of its common stock in the primary offering for total proceeds of $1.216 billion and approximately 7.2 million shares of its common stock pursuant to its distribution reinvestment plan for a total value of $177.71 million.

As previously reported by The DI Wire, the REIT also recently completed the purchase of a $352 million portfolio of senior loans, diversified across 16 performing floating rate loans.

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