FS Credit Real Estate Income Trust Inc., a monthly net asset value REIT sponsored by FS Investments, provided a quarterly update for the third quarter of 2023.
At of the end of the quarter, FS Credit’s portfolio of commercial real estate debt totaled $8.54 billion, 91.9% of which was comprised of private senior floating rate loans. The company is invested in a range of asset types throughout the U.S., with the largest segments composed of 57.9% multifamily, 12.5% hospitality, 10.9% office, and 7.4% industrial properties.
The company’s net income increased approximately 54% year-over-year, from $36.3 million at the close of the third quarter 2022 to $56 million as of Sept. 30, 2023. Funds from operations totaled $57.8 million, compared to $38.2 million in 2022, representing an increase of approximately 51.4%. Modified funds from operations were up approximately 59.9% year-over-year, to $57.4 million as of Sept. 30, 2023 versus $35.9 million the year prior.
The company had one risk-rated five senior office loan located in Seattle, Washington, originated in December 2021, with an outstanding principal balance and amortized costs of approximately $36.5 million and an unfunded commitment of $9.6 million as of Sept. 30, 2023. The company says the property experienced “slower than anticipated leasing activity due to softness in the overall Seattle market office trends.”
The company reported a net asset value of $2.95 billion at the close of the third quarter, with the NAV per share of its various share classes ranging from $24.20 to $25.18 each. The company pays an annualized distribution rate ranging from 6.51% to 7.62%, dependent on share class. Distributions were paid entirely with net investment income.
FS Credit REIT invests primarily in floating rate senior loans secured by commercial real estate properties. The REIT is currently offering up to $2.75 billion in shares of common stock on a continuous basis and has received gross offering proceeds of approximately $883.6 million as of Oct. 17, 2023.