PASADENA, Calif. — 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.
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