Prospect Credit REIT Raises Distribution for Sixth Straight Quarter

Prospect Credit REIT, or PCRED, has increased its per-share distribution for a sixth consecutive quarter. The private real estate credit fund invests in stabilized multifamily properties and is managed by an affiliate of Prospect Capital Management LP.

PCRED’s monthly distribution has grown approximately 39% since the fund’s first full month of distributions, to $0.2023 per share in August 2026 from $0.1453 in April 2025. The fund calculates its distribution rate against the most recent quarter-end net asset value per share, which has risen 5.9% since inception, according to the company. PCRED currently pays a 9% annualized distribution rate on NAV.

All distributions to date have been covered by cumulative net investment income, without the use of offering proceeds or borrowings, and the fund carries no fund-level leverage, according to Prospect.

PCRED’s portfolio consists of three preferred equity investments, each originated alongside agency senior loans on stabilized, cash-flowing multifamily properties totaling 1,137 apartment units, two in the New York metropolitan area and one in Scottsdale, Ariz. The properties were a weighted average 91.6% occupied as of June 30, and portfolio borrowers have made 100% of contractually obligated payments since the fund’s inception, the company said.

The fund has generated a 13.2% annualized total return since its December 2024 inception, with a positive total return in every month over that span, according to Prospect. The portfolio carries a weighted average last-dollar loan-to-value of 69.3%.

Prospect Capital Management, PCRED’s sponsor, has nearly 40 years of experience investing in and managing debt and equity investments through both private partnerships and publicly traded closed-end structures, according to the firm. The firm and its affiliates had $7 billion in regulatory assets under management as of June 30, employed more than 145 professionals, and had invested in more than 32,000 multifamily units with an initial property value of $4.5 billion through their real estate platform.

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