Certain Investors in ExchangeRight REIT Receive Bonus Distribution, Bringing Total First-Year Return to 9.58%+
ExchangeRight, a sponsor of Delaware statutory trust and non-traded real estate investment trust offerings, has made a bonus distribution to certain investors in the Essential Income REIT’s Class ER shares as a result of their participation in ExchangeRight’s DST fees. This represented a distribution of 3.58% on invested capital. This bonus distribution is for Class ER investors that invested between Dec. 1, 2024, and Jan. 31, 2025.
Investors prior to Dec. 1, 2024, previously received a similar 3.58% bonus on invested capital in their first year of Class ER share ownership.
The distribution is in addition to the current monthly tax-efficient annualized return, which is anchored in the performance and growth of the Essential Income REIT’s $1.3 billion portfolio of properties, net-leased to tenants in sectors historically resilient during economic downturns.
The bonus distribution brings the total distribution rate for these investors’ first full year of ownership in Class ER shares to at least 9.58%, with additional tax-related outcomes varying by investor circumstances.
In addition to this bonus distribution, ExchangeRight said that all Class ER investors can continue to directly benefit from the REIT’s growth potential as it acquires additional net-leased assets. From inception, through its most recently reported period, the REIT has fully covered its dividend with adjusted funds from operations and has collected 100% of scheduled rents.
“This bonus distribution exemplifies how our fee participation structure aligns ExchangeRight’s success directly with our investors’ outcomes,” said Joshua Ungerecht, managing partner at ExchangeRight. “As the REIT continues to grow through disciplined acquisitions, Class ER shareholders can benefit not only from stable income, but also from the potential appreciation and accretive impact those assets generate.”
Previously reported by AltsWire, ExchangeRight Essential Income REIT reported positive performance metrics through September. The company declared and fully covered $29.7 million in cash distributions with net cash from operating activities for the third quarter of 2025 – extending its record of uninterrupted monthly distributions.
Rental revenue rose to $21.76 million, a nearly 9.2% increase from $19.93 million in the same quarter last year. The growth was primarily attributed to net acquisitions over the past year. As of Sept. 30, the REIT’s portfolio consisted of 361 properties with 98.6% occupancy, up from 353 properties and 98.5% occupancy a year earlier.
In July of this year, the REIT announced the launch of subclasses for its ER shares. The subclasses are designed to increase accessibility through custodians and investment platforms while maintaining features ExchangeRight describes as key to the Class ER structure.
ExchangeRight and its affiliates’ vertically integrated platform features more than $6.8 billion in assets under management that are diversified across more than 1,400 properties and 27 million square feet throughout 48 states, as of Sept. 30, 2025.
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