FS Credit REIT Expands Financing Capacity to $750M, Accelerates Loan Deployments
FS Credit Real Estate Income Trust expanded a Capital One financing facility to a maximum of $750 million and extended its availability through November 2027, as the Philadelphia-based nontraded real estate investment trust reported a sharp increase in new loan originations during the first quarter. The move is the latest in a financing build-out that has included three facility actions in roughly two months.
The trust, which manages a real estate credit portfolio of approximately $9.5 billion, originated $657 million in new loans in the three months ended March 31, up from $438 million in the same period a year earlier – a roughly 50% increase. The company also issued $897 million in collateralized loan obligations during the quarter, expanding its CLO book from $2.5 billion at year-end 2025 to $3.35 billion at March 31, as it rotated financing toward longer-term structures and paid down shorter-term repo facilities, the company said.
The company said the Capital One facility, held through an indirect subsidiary, provides financing for its real estate credit investments. The expansion follows two credit facility extensions in April – a master repurchase agreement with Barclays Bank PLC extended through February 2029, and a facility with Bank of Montreal extended through April 2028. Approximately 96% of the trust’s borrowings are now financed through matched-term facilities, up from 94% as of late April.
The financing activity coincides with the launch of the trust’s new $2.5 billion continuous public offering, which went effective June 2 on the heels of a prior $2.75 billion raise. The trust said it met 100% of repurchase requests in April, its 73rd consecutive month of positive total returns.
Net income for the first quarter was $48.1 million, compared with $42.6 million in the first quarter of 2025. The trust declared $53.9 million in distributions during the quarter.
As of May 31, FS Credit REIT reported total net asset value of approximately $2.97 billion across 121.6 million shares outstanding. NAV per share for Class I shares was $23.86; Class S shares were valued at $24.78. The annualized distribution rate for Class I shares stood at 7.4% based on the July 1 transaction price, unchanged from the prior period following a 30-basis-point reduction across all share classes in January.
The trust closed two loans in May totaling $172.2 million, including a $112 million industrial senior loan and a $60.2 million loan on a townhome community. Assets on non-accrual represented 3.18% of the portfolio as of May 31, up slightly from 3.06% as of April 30.
FS Credit Real Estate Income Trust is externally managed by FS Real Estate Adviser, sponsored by Franklin Square Holdings, L.P. – doing business as Future Standard – and sub-advised by Rialto Capital Management, LLC.
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