FS Credit REIT Has CFO Change, Closes $32 Million Senior Loan in Vegas
Christopher Condelles recently resigned from his role as chief financial officer of FS Credit Real Estate Income Trust, a monthly net asset value real estate investment trust sponsored by FS Investments. The company stated that the resignation was not due to any disagreement with the company and that Edward T. Gallivan Jr. would serve as his replacement, effective immediately.
Gallivan previously held the same position at the REIT from 2018 to 2023 and brings a wealth of experience in the financial services industry. Gallivan, age 62, has also served as the chief financial officer of other funds sponsored by FS Investments.
Prior to joining FS Investments, he was director of mutual fund financial reporting at BlackRock and was the mutual funds assistant treasurer at State Street Research & Management Company. Gallivan began his career at the global accounting firm PricewaterhouseCoopers LLP, where he practiced as a certified public accountant. He received his bachelor’s degree in business administration (accounting) from Stonehill College in Massachusetts.
The company has also entered into an indemnification agreement with Gallivan, which is standard practice for executive officers.
According to the REIT, Condelles remains employed at FS Investments and maintains other positions with FS Investments and its affiliates, including FS Investments’ chief strategy and corporate development officer.
In other REIT news, according to the company, it has delivered 54 consecutive months of positive total returns across varying macroeconomic conditions and financial markets and met 100% of repurchase requests in September 2024.
The company reported a total NAV of approximately $2.99 billion at the end of September. This was a 1.13% decrease compared to August’s total NAV of approximately $3.03 billion.
During the reporting month, the REIT closed on a $32 million senior loan backed by a newly delivered Class A multifamily property totaling 172 units in North Las Vegas, Nev. The company said that the property had seen strong leasing velocity since opening, with multiple modern amenities and proximity to newly constructed retail, such as Walmart, Smith’s and Shake Shack, among others.
Its declared monthly NAV per share as of Nov. 1, 2024, was as follows (calculations based on full figures in filing, percentages rounded to the nearest hundredth):
Class S shares had a NAV per share of $25.0716, compared to $25.0766 per share the previous month, a 0.02% decrease.
Class T shares had a NAV per share of $24.8313, compared to $24.8374 per share the previous month, a 0.03% decrease.
Class D shares had a NAV per share of $24.8886, compared to $24.8932 per share the previous month, a 0.02% decrease.
Class M shares had a NAV per share of $24.9376, compared to $24.9427 per share the previous month, a 0.02% decrease.
Class I shares had a NAV per share of $24.1693, compared to $24.1719 per share the previous month, a 0.01% decrease.
Class F shares had a NAV per share of $25.3464, compared to $25.3474 per share the previous month, a minute decrease when rounded.
Class Y shares had an NAV per share of $24.1389, compared to $24.1410 per share the previous month, a 0.01% decrease.
The current annualized distribution rate is 7.64% for Class I shares, 7.12% for Class D shares, 7.11% for Class M shares, 6.52% for Class S shares, and 6.58% for Class T shares – the same as last month though now based on the Nov. 1 transaction price.
As of Sept. 30, the portfolio was weighted to multifamily (52%), followed by hospitality (14%), and industrial (11%). The portfolio’s allocation reflects its view that these sectors are well-positioned to benefit from long-term structural trends such as the record-high cost of homeownership, strong demand for business and leisure travel, and continued demand for technologically advanced warehouse space.
The number of shares outstanding totaled approximately 121.1 million at the end of September compared to nearly 122.5 million the previous month.
FS Credit REIT invests primarily in floating rate senior loans secured by commercial real estate properties. The REIT is currently offering up to $2.75 billion in shares of common stock on a continuous basis, consisting of up to $2.5 billion in shares in its primary offering and up to $250 million in shares pursuant to its distribution reinvestment plan. As of Oct. 17, it had issued and sold approximately 50.56 million shares of its common stock in the primary offering for total proceeds of $1.251 billion and approximately 7.55 million shares of its common stock pursuant to its distribution reinvestment plan for a total value of $186.5 million.
As previously reported by AltsWire, the REIT also recently completed the purchase of a $352 million portfolio of senior loans, diversified across 16 performing floating rate loans.
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