PASADENA, Calif., July 29,
2024 /PRNewswire/ -- ExchangeRight, one of the
nation's leading providers of diversified real estate DST and REIT
investments, has announced that Fifth Third Bank has joined Wells
Fargo as a co-lender on ExchangeRight's Essential Income REIT's
revolving line of credit and has increased the current credit
capacity to $100 million. This
closing strategically expands the REIT's credit access, adding to
the recently announced Credit Facility with Wells Fargo
for $75 million. This Credit Facility
may be increased to $400 million upon
request of the REIT, subject to receipt of commitments for the
increased amount.
This Credit Facility may be increased to
$400 million upon request of the
REIT, subject to receipt of commitments.
Expanding the Essential Income REIT's Credit Facility with
this commitment from Fifth Third Bank on behalf of the REIT further
enhances ExchangeRight's control over the REIT's portfolio
composition and financing strategy. In addition to providing
increased flexibility for the Essential Income REIT's ongoing
operations, this expansion provides additional capacity for the
REIT to eventually take advantage of long-term fixed-rate corporate
bonds to optimize the REIT's financing and further enhance the
REIT's potential Adjusted Funds from Operations ("AFFO").
"We are grateful to have Fifth Third, a top-20 bank nationally
as measured by total assets, as another trusted lending partner for
ExchangeRight's Essential Income REIT," said Joshua Ungerecht, a managing partner at
ExchangeRight. "This recognition of the quality of ExchangeRight's
REIT platform by another large bank known for its rigorous analysis
is a testament to the stability and value that our REIT has
provided its investors through its diversification and focus on
historically recession-resilient industries and tenants. As we look
forward, we are excited for the added efficiencies afforded by this
expanded credit access as we continue to execute our aggregation
strategy in order to grow the REIT's assets, diversification,
scale, and value on behalf of investors." 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 for accredited investors
only, formed on January 11, 2019,
that 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
national primarily 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 and ExchangeRight
does not guarantee future results.
Media Contact
Lindsey Thompson
Senior Media Relations Officer
lthompson@exchangeright.com
(626) 773-3448
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SOURCE ExchangeRight