FS Credit REIT Registers Second $2.75 Billion Follow-On Offering
FS Credit Real Estate Income Trust Inc., a monthly net asset value REIT sponsored by FS Investments, has registered a second follow-on offering.
FS Credit Real Estate Income Trust Inc., a monthly net asset value REIT sponsored by FS Investments, has registered a second follow-on offering, comprised of $2.5 billion in shares of common stock and $250 million in distribution reinvestment plan shares.
The REIT’s offerings have raised a total of $1.67 billion in investor equity, as of March 2022. The initial public offering launched in September 2017 and closed in March 2021 after raising $388.3 million, and the second launched immediately afterwards.
FS Credit REIT invests in senior loans secured by commercial real estate primarily in the United States. As of March 1, 2022, it held loans and other investments with a value of $4.5 billion, comprised primarily of senior secured floating rate loans.
The portfolio was diversified 57.5 percent in multifamily, 11.9 percent in office, 8.1 percent in industrial, 1.5 percent in mixed use, 6.2 percent in hospitality, 7 percent in retail, 5.3 percent in self-storage and 2.5 percent in various other property types.
The REIT offers five classes of common stock: Class T, Class S, Class D, Class M and Class I. In addition, the company plans to sell Class F and Class Y shares through the distribution reinvestment plan.
The company issues shares equal to the prior month’s NAV per share for each class, plus applicable upfront selling commissions and dealer manager fees.
As of March 31, 2021, the NAV per share for each class were $24.98 per Class T share, $25.21 per Class S share, $25.02 per Class D share, $25.09 per Class M share, and $24.45 per Class I share.
Class T shares include selling commissions of up to 3.0 percent of the transaction price, dealer manager fees of 0.5 percent, and an annual stockholder servicing fee of 0.85 percent. The stockholder servicing fee for Class T shares will be comprised of an advisor stockholder servicing fee of 0.65 percent per year, and a dealer stockholder servicing fee of 0.20 percent per year.
For Class S shares sold in the primary offering, investors pay selling commissions of up to 3.5 percent and an annual stockholder servicing fee of 0.85 percent.
Class D shares have a 0.3 percent stockholder servicing fee, but no selling commission or dealer-manager fee.
Class M shares have a 0.3 percent stockholder servicing fee, but no selling commission or dealer-manager fee.
Class I shares have no selling commission, dealer-manager fees, or stock stockholder servicing fees.
The minimum initial investment is $5,000 for Class T, Class S, Class D and Class M shares and $1 million for Class I shares.
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.
FS Credit REIT is advised by FS Real Estate Advisor LLC and sub-advised by Rialto Capital Management LLC.
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