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FS Credit REIT Declares Monthly NAV Per Share, Reaches $1 Billion in Assets

FS Credit Real Estate Income Trust Inc., a monthly NAV REIT sponsored by FS Investments, has declared a monthly net asset value per share as of March 31, 2021.

FS Credit Real Estate Income Trust Inc., a monthly NAV REIT sponsored by FS Investments, has declared a monthly net asset value per share as of March 31, 2021. Separately, the REIT reported that it reached $1 billion in assets in early April.

  • Class S shares had an NAV per share of $25.29, compared to $25.30 per share the previous month.
  • Class T shares had an NAV per share of $25.08, compared to $25.09 per share the previous month.
  • Class D shares had an NAV per share of $25.11, compared to $25.12 per share the previous month.
  • Class M shares had an NAV per share of $25.17, compared to $25.18 per share the previous month.
  • Class I shares had an NAV per share of $24.56, compared to $24.58 per share the previous month.
  • Class F shares had an NAV per share of $25.08, compared to $25.08 per share the previous month.
  • Class Y shares had an NAV per share of $24.59, compared to $24.61 per share the previous month.

*Dollar amounts have been rounded to the nearest cent.

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.

The REIT closed on $150 million in new investments in March and reached $1 billion in assets in early April.

Investment highlights in March 2021 include originating loans for four multifamily properties, an office property zoned for research and development, and a grocery-anchored retail property.

Three of the multifamily properties are located in the Atlanta, Phoenix and Dallas-Fort Worth metro areas, and the fourth is located in Brooklyn, New York. The office property in located in the San Francisco central business district and is undergoing renovations for future tenants. The property is zoned for research and development/laboratory use. The grocery-anchored retail property is located in the Dallas-Fort Worth suburbs.

The REIT indicated that there were no paydowns during March 2021 and they have not recorded any impairments or non-accruals in its loan portfolio as of March 31, 2021. In addition, 97 percent of its loan portfolio was current as of March 31, 2021.

Multifamily and industrial representing 38.8 percent of the REIT’s portfolio compared to 14.9 percent for hospitality and retail as of March 31, 2021. The REIT noted that “the pipeline for new deal activity remains strong, backed by a diverse mix of property types.”

“Broadly, our lending strategy focused on originating short-term (2–3 years), floating-rate, senior loans has helped preserve investor capital while providing a natural turnover of the portfolio,” the REIT stated in a filing with the Securities and Exchange Commission. “The short-term nature of our typical loans allows us to regularly adjust the portfolio to current market conditions.”

As of March 31, 2021, approximately 41 percent of the portfolio consisted of investments sourced after July 2020.

FS Credit REIT invests primarily in floating rate senior loans secured by commercial real estate properties and had an investment portfolio of 35 loans with a net book value of $699.3 million, as of December 31, 2020. The REIT, which is advised by FS Real Estate Advisor LLC and sub-advised by Rialto Capital Management LLC, raised $371.9 million in its public offering as of February 2021. The REIT’s $2.75 billion follow-on offering was declared effective in March 2021.

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