Resource Reinstates Distributions, DRP, and Completes $500 Million of Financings
The board of Resource REIT Inc., a publicly registered non-traded real estate investment trust, has authorized a distribution of $0.07 per share for the first quarter of 2021.
The board of Resource REIT Inc., a publicly registered non-traded real estate investment trust, has authorized a distribution of $0.07 per share for the first quarter of 2021, payable on March 31, 2021 to stockholders of record on March 30, 2021.
Resource REIT was created by the recent merger Resource Real Estate Opportunity REIT, Resource Real Estate Opportunity REIT II, and Resource Apartment REIT III to create a $3 billion self-managed REIT.
The board also reinstated the company’s distribution reinvestment plan. Former stockholders of Resource Real Estate Opportunity REIT I and Resource Apartment REIT III must complete and submit new distribution reinvestment forms for the DRIP.
In addition, Resource entered into a structured credit facility transaction with CBRE Multifamily Capital Inc. Financings totaled $495 million at an average interest rate of 2.68 percent and proceeds from the initial advance were used to refinance or pay off $462 million of the REIT’s debt. Interest on $470 million of the financing is fixed at a blended 2.71 percent rate on a 7- to 10-year maturity schedule.
Resource REIT said that this transaction simultaneously allowed it to create an unencumbered pool of five properties that will provide additional balance sheet flexibility.
“We have reinstated this quarterly distribution for our stockholders for a few reasons,” said Alan Feldman, chairman and chief executive officer of Resource. “First, we experienced solid performance from our assets throughout a challenging 2020 with occupancies ending the year at approximately 95 percent and 30-day collections approximately 96 percent. Second, the new loans’ fixed interest rate provides greater certainty of expenses, and finally, the REIT’s liquidity and leverage positions are secure.”
He added, “We commence 2021 with optimism for our country’s continued recovery from the pandemic and an equal dose of optimism for the continued performance of our properties due to the resiliency of the asset class, the specific communities we own, and our keen focus on operations and management.”
Resource REIT owns approximately $3 billion of multifamily properties across 15 states as of December 31, 2020.
