PASADENA, Calif., July 22,
2024 /PRNewswire/ -- ExchangeRight, one of the
nation's leading providers of diversified real estate DST and REIT
investments, has announced that the Net Asset Value ("NAV") of the
Essential Income REIT has increased again to $27.26 per share, based on an independent real
estate valuation of the REIT's real estate by KPMG combined with
its other assets and liabilities as of June
30, 2024.
This favorable valuation is further
evidence of the strength and economic resilience of our REIT -
ExchangeRight
As of June 30, 2024, the Essential
Income REIT's portfolio includes 353 properties net leased to 36
primarily investment-grade tenants successfully operating in the
necessity-based retail and healthcare industries and diversified
across 34 states, providing added value for investors through
ExchangeRight's aggregation strategy.
The Essential Income REIT's monthly distributions to investors
have remained stable and consistent since its 2019 launch and
throughout unprecedented economic volatility. The REIT's Adjusted
Funds From Operations continue to fully cover its current
annualized net distribution of 6.38% for Class I shares and 6.00%
for Class A shares. The REIT's AFFO-to-distribution coverage is
105.95% since inception through March 31,
2024, its most recently reported period. This healthy
distribution coverage helps to ensure that investors are paid
exclusively from its operations and not from financing, forced
sales, or investors' capital. The past performance of the REIT is
no guarantee of future results.
Joshua Ungerecht, a managing
partner at ExchangeRight, shared that this additional NAV increase
is a result of the REIT's investor-centric design, which is
structured to provide stable cash flow and preservation of capital,
even through times of economic and market volatility, making the
REIT's strong performance stand out in the market.
"We are excited to achieve this consecutive increase in the
REIT's Net Asset Value on behalf of the Essential Income REIT's
investors, especially in an economic environment that has been so
incredibly volatile," said Ungerecht. "This favorable valuation is
further evidence of the strength and economic resilience of our
REIT, which we credit largely to the enhanced diversification and
risk mitigation created by aggregating together high-quality assets
with historically recession-resilient tenants that successfully
operate in necessity-based industries." The past performance of the
REIT is not a guarantee of future results.
About ExchangeRight's Essential Income REIT
The Essential Income REIT, a Maryland statutory trust, is a
self-administered real estate company, formed on January 11, 2019. The REIT is available to
accredited investors only and focuses on investing in
single-tenant, primarily investment-grade net-leased real estate.
The REIT currently pays an annualized distribution rate on new
investments of 6.38% for its Class I shares and 6.00% for its Class
A shares, and targets 6.00% monthly tax-efficient income with a 10%
total annual internal rate of return for its Class ER shares. The
REIT has fully covered its dividend with Adjusted Funds from
Operations since its inception and through its most recently
reported period. The Company, through its operating partnership,
ExchangeRight Income Fund Operating Partnership, LP, owns 353
properties in 34 states (collectively, the "Trust Properties") as
of June 30, 2024. The Trust
Properties are occupied by 36 different primarily national
investment-grade necessity-based retail tenants and are
additionally diversified by industry, geographic region, and lease
term. The Company has elected and is qualified to be taxed as a
real estate investment trust ("REIT") for U.S. federal income tax
purposes. Please visit the REIT's website to learn more about
its Class ER, Class A, and Class I shares.
The past performance of the REIT, its tenants, and ExchangeRight
does not guarantee future performance. "Investment-grade" refers to
tenants whose long-term corporate debt rating is considered
investment grade by Standard & Poor's, Moody's, and/or Fitch.
An investment-grade rating is a rating that indicates that a
corporate bond has a relatively lower risk of default than a
corporate bond with a speculative grade. Adjusted Funds From
Operations (AFFO) as defined by NAREIT measures a real estate
company's recurring/normalized FFO after deducting recurring
capital improvement funding that is typically capitalized by REITs
and the adjustment to GAAP revenue related to "straight-line"
rents. There is no guarantee that the REIT's objectives will
continue to be achieved. The REIT is subject to the regular risks
associated with real estate. Please review the offering memorandum
to understand the REIT's business plan, risks, and potential
benefits.
Media Contact
Lindsey Thompson
Senior Media Relations Officer
lthompson@exchangeright.com
(626) 773-3448
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SOURCE ExchangeRight