FS Credit Real Estate Income Trust, Inc, a monthly NAV REIT sponsored by FS Investments that invests primarily in floating rate senior loans secured by commercial real estate properties, has declared a higher net asset value per share as of April 30, 2020.
The REIT noted that it had not recorded any impairments or non-accruals in its loan portfolio, which represented approximately 97 percent of total investments, as of April 30, 2020. More than 75 percent of its senior secured loan portfolio had reserves equal to three months or more of debt service, and the company did not make any new loans in April.
Class S shares had an NAV per share of $25.20 as of April 30, 2020, compared to $25.15 per share last month (all values are rounded to the nearest hundredth).
Class T shares had an NAV per share of $25.00, compared to $24.96 per share last month.
Class D shares had an NAV per share of $25.03, compared to $24.98 per share last month.
Class M shares had an NAV per share of $25.09, compared to $25.04 per share last month.
Class I shares had an NAV per share of $24.51, compared to $24.47 per share last month.
Class F shares had an NAV per share of $24.84, compared to $24.81 per share last month.
Class Y shares had an NAV per share of $24.54, compared to $24.51 per share last month.
“The change in our NAV per share during April 2020 was driven primarily by unrealized appreciation in our commercial mortgage-backed securities,” FS Credit Real Estate Income Trust said in a filing with the Securities and Exchange Commission. “Our CMBS, all of which are investment grade and held on an unlevered basis, represented approximately 3 percent of our total investments as of April 30, 2020.”
The company also noted that its net income has increased year-to-date due to the fall in LIBOR, which year-to-date through April 30, 2020, fell from 1.76 percent to 0.33 percent. One-month LIBOR is currently 0.20 percent.
As of April 30, 2020, all of the senior secured floating-rate loans in the REIT’s portfolio included LIBOR floors, with a weighted average floor of 1.75 percent, while 76 percent of the borrowings under its financing arrangements had no floor and the remainder (approximately 24 percent) had an average LIBOR floor of 0.74 percent.
Class S shares are available through brokerage and transactional-based accounts, while Class D, Class M and Class I shares are generally available through fee-based programs. Class I shares are available for purchase by endowments, foundations, pension funds and other institutional investors.
Class F and Class Y shares were offered via private offerings and are only available in the public offering through the distribution reinvestment plan.
As of December 31, 2019, FS Credit REIT had a portfolio of 24 loans with a net book value of $406.6 million. The REIT, which is advised by FS Real Estate Advisor LLC and sub-advised by Rialto Capital Management LLC, raised $200.3 million in investor equity as of the fourth quarter of 2019.