FS Credit REIT Reports Positive Total Returns, Updates Distribution Rates
FS Credit Real Estate Income Trust Inc., a non-traded monthly net asset value real estate investment trust, released a performance and market update, highlighting a streak of 71 consecutive months of positive total returns through February 2026.
The company’s total net asset value was approximately $3.01 billion as of the end of February, a minor 0.3% decrease from the previous month’s nearly $3.02 billion.
The REIT, sponsored by Future Standard and sub-advised by Rialto Capital Management, continues to navigate a volatile interest rate environment with a debt-focused strategy that management believes is at an “inflection point” for the commercial real estate market.
Despite positive total returns across all share classes in February, the REIT’s NAV per share saw a modest decline of approximately $0.04 during the month. This was primarily driven by unrealized depreciation in select equity positions and non-cash expenses, which offset the positive contributions from monthly distributions.
New Distribution Rates
Effective with the February 2026 distribution, the REIT’s board of directors approved a 30-basis point (bps) decrease in the distribution rate across all share classes. Management noted this adjustment is intended to ensure the long-term sustainability of the distribution while still delivering income significantly above risk-free rates.
The current annualized distribution rate is 7.43% for Class I shares, 6.9% for Class D shares, 6.88% for Class M shares, 6.29% for Class S shares, 6.36% for Class T shares, 8.28% for Class F shares and 8.74% for Class Y shares based on the April 1, 2026, transaction price.
FS Credit REIT remained active in February, closing five loans totaling $294.4 million. Key originations included a $66.4 million senior loan for a new Class A industrial facility in New Jersey and a $52 million senior loan for a supply-constrained multifamily property in Mount Pleasant, S.C.
Assets on non-accruals represented 2.5% of the portfolio as of the end of February. The company said it was actively working to reduce the non-accruals in a way that it believes “can help maximize shareholder value, whether through refinancing the loans, taking ownership of the property, or selling the loan to a new buyer.”
The REIT continues to meet 100% of repurchase requests, maintaining a strong liquidity profile to capitalize on a “robust new origination pipeline.”
Commercial Real Estate Market Outlook
With roughly $2 trillion in commercial real estate debt maturing by the end of 2027, management believes FS Credit REIT is well-positioned to serve as a disciplined lender in a high-demand refinancing environment.
Approximately 87% of the trust’s portfolio consists of private senior loans held to maturity, which management argues anchors the NAV to fundamental value rather than volatile market sentiment.
As of March 17, 2026, the REIT had issued and sold in the offering approximately 74.7 million shares of its common stock in the primary offering for total proceeds of more than $1.85 billion and approximately 13.7 million shares of its common stock pursuant to its distribution reinvestment plan for a total value of $337.3 million.
For more Future Standard news, visit its directory page.
