Future Standard’s FS Credit REIT Opens $2.5B Raise on Heels of Prior Offering
FS Credit Real Estate Income Trust, Inc. launched a new $2.5 billion continuous public offering after its registration statement went effective June 2, arriving days after the fund reallocated its last available primary shares in a prior $2.75 billion raise – a sequence that marks one of the first nontraded commercial real estate debt programs to roll directly from one near-capacity raise into a successor offering in the current fundraising cycle.
The new offering allows FS Credit REIT to offer up to $2.25 billion in shares through its primary offering and up to $250 million through its distribution reinvestment plan, or DRIP. The fund filed its first prospectus supplement under the new registration on June 3. The prior offering – capped at $2.4 billion in primary shares – had raised $1.89 billion in primary proceeds as of mid-May, when the fund reallocated $15 million in unissued primary shares to the DRIP, compressing the remaining primary capacity to $2.385 billion.
As of April 30, 2026, FS Credit REIT reported a net asset value of approximately $2.98 billion across roughly 122 million shares outstanding, with a $9.7 billion portfolio concentrated in senior floating-rate mortgage loans secured by U.S. commercial real estate. The fund’s annualized distribution rate for Class I shares stands at 7.43% at current transaction prices, the fund said.
The new registration continues a fundraising posture that FS Credit REIT — sponsored by Franklin Square Holdings, L.P., doing business as Future Standard, and sub-advised by Rialto Capital Management, LLC — has sustained through a challenging period for the broader nontraded REIT sector. Trailing 12-month fundraising for publicly registered nontraded REITs reached $6.3 billion through March 2026, a 7.9% year-over-year increase but still well below peak capital-raise years, with Blackstone accounting for roughly 44% of that total. Outside the top tier, sponsors have faced more acute pressure, including at least one fund that restructured its repurchase terms for anchor investors as gross sales compressed.
FS Credit REIT has largely sidestepped that pressure. The fund said it met 100% of repurchase requests in April, its 73rd consecutive month of positive total returns. Its excess income above three-month U.S. Treasury bills has widened by approximately 140 basis points since the second quarter of 2024, reaching roughly 376 basis points as of April 30 – a spread the fund attributed in part to 175 basis points in Federal Reserve rate cuts since that period.
The fund does carry a non-accrual load. Assets on non-accrual represented 3.06% of the total debt portfolio as of April 30, which the fund said it is actively working to reduce through refinancing, property acquisition, or loan sales. The fund described the non-accrual balance as a “select number” of positions and said it remains focused on maximizing shareholder value in resolving them.
New origination activity remained active through April. The fund closed on three loans totaling approximately $360 million during the month, including an $89 million senior loan on a 344-unit multifamily community in Temecula, Calif.; a $36 million senior loan on a 286-unit Class A multifamily property in Rogers, Ark.; and a $235 million senior loan secured by a 95%-leased, 517,000-square-foot office tower two blocks from Grand Central Terminal in Manhattan. The $235 million loan is secured by a LEED Gold-certified building with a weighted average lease term of 7.6 years.
On the liability side, the fund extended two of its credit facilities in April. A master repurchase agreement with Barclays Bank PLC was extended through February 2029, and a facility with Bank of Montreal was extended through April 2028. Approximately 94% of FS Credit REIT’s borrowings are structured through matched-term facilities, with 85% through matched-term, non-mark-to-market facilities – a financing structure the fund said helps stabilize performance across rate environments.
The timing of the offering transition fits a broader pattern in the nontraded commercial real estate debt space. The sector attracted a wave of new entrants beginning in 2024, with Goldman Sachs, Fortress Investment Group, and others launching nontraded debt REITs as banks tightened exposure to transitional real estate and the refinancing wall — roughly $2 trillion in commercial real estate debt maturing by the end of 2027 — kept demand for private credit strong. FS Credit REIT predates that wave, having operated through the rate volatility of 2022 and 2023 without gating redemptions.
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