FS Credit Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust sponsored by FS Investments, is planning to modify its current offering to switch from a daily NAV REIT to a monthly NAV REIT.
By changing from a daily to a monthly NAV REIT, the company would issue monthly share valuations and repurchase shares on a monthly basis. The company does not plan to change its investment objectives or strategies, or the overall amount of liquidity to be offered under its share repurchase plan.
The company believes that the change is in the best interest of its stockholders and will allow greater access to capital to execute on its investment strategy.
“We expect this access to capital will help us to better achieve our investment objectives by driving growth and diversification within the portfolio, creating a stronger balance sheet and enhancing liquidity for the benefit of all stockholders,” said the company in a filing with the Securities and Exchange Commission.
Any modification of the offering is subject to regulatory approval. If approved, the transition will take place in September or October 2018.
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 in September 2017, and as of the first quarter of 2018, the company had raised $34 million in investor equity and oversaw a portfolio of six mortgage loans totaling approximately $79 million.
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