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 September 30, 2020.
Class S shares had an NAV per share of $25.3623 as of September 30, 2020, compared to $25.3554 per share last month.
Class T shares had an NAV per share of $25.1568, compared to $25.1516 per share last month.
Class D shares had an NAV per share of $25.1806, compared to $25.1746 per share last month.
Class M shares had an NAV per share of $25.2450, compared to $25.2385 per share last month.
Class I shares had an NAV per share of $24.6524, compared to $24.6491 per share last month.
Class F shares had an NAV per share of $25.0904, compared to $25.0375 per share last month.
Class Y shares had an NAV per share of $24.6850, compared to $24.6818 per share last month.
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 September 30, 2020, our portfolio continues to perform, generating consistent current income with low volatility,” the company said in a filing with the Securities and Exchange Commission. “Further, we had not recorded any impairments or non-accruals in our private loan portfolio.”
Since the onset of the COVID-19 pandemic, the REIT has worked with four borrowers to exercise extension options, resulting in additional fee and interest income.
FS Credit REIT indicated that two loans were repaid in full in August and September, each of which was structured with exit fees that accrued to the benefit of stockholders. One of the loans was repaid during its minimum interest period, which resulted in additional interest income.
The company said that some of its borrowers have experienced negative business consequences from the COVID-19 pandemic and requested temporary interest deferral or forbearance, or other modifications of their loans.
The REIT recently agreed to loan modifications on two loans and temporarily deferred all or a portion of interest payments for a specified period. The REIT anticipates collecting all of the deferred interest payments in accordance with the terms of each modification, resulting in both loans remaining on accrual status.
The REIT also agreed to a non-monetary modification of one loan that provided a short-term extension of the outside completion date for an on-going renovation that had been disrupted by the COVID-19 pandemic.
For the month of September, the REIT said that all loans remained current with the exception of one that did not make its debt service payment. The REIT is in “active discussions” with the borrower to bring the loan current and expects to come to a solution in the near term.
“Overall, we have been encouraged by our borrowers’ response to the COVID-19 pandemic’s impacts on their properties,” the REIT stated. “In general, we believe our borrowers are committed to supporting assets collateralizing our loans, and that we will benefit from our core business model of originating senior loans collateralized by high quality assets in desirable markets with experienced, well-capitalized borrowers.”
The REIT’s investment portfolio had a weighted-average loan-to-value of 69 percent as of September 30, 2020.
FS Credit REIT invests primarily in floating rate senior loans secured by commercial real estate properties and had an investment portfolio of 33 loans with a net book value of $616.7 million, as of June 30, 2020. The REIT, which is advised by FS Real Estate Advisor LLC and sub-advised by Rialto Capital Management LLC, raised $240 million in investor equity as of June 30, 2020. FS Credit REIT registered a $2.75 billion follow-on offering in August.