Sponsored: ExchangeRight Achieves Strong Performance and New Growth in 2024

ExchangeRight, one of the nation’s leading providers of diversified Delaware statutory trusts and real estate investment trusts, has announced that all of the company’s offerings continued to meet or exceed projections throughout 2024, extending an unbroken streak of never missing or reducing a distribution for any offering since ExchangeRight’s inception in 2012.

2024 Performance Highlights

• As of Dec. 31, 2024, ExchangeRight has returned over $2.2 billion of income, returns of capital, and capital gains to investors since its inception. All of the company’s offerings have met or exceeded expectations, with no loss of capital or disruptions to monthly distributions across all 108 offerings that ExchangeRight has provided to serve over 8,900 active investors.
• Net-Leased Portfolio 28 was the 34^th ExchangeRight offering to successfully go full cycle, generating total net annual returns to investors ranging from 6.96% to 9.02%, representing 134.57% to 147.67% total returns including return of capital. The offering’s 23-property portfolio was acquired by ExchangeRight’s Essential Income REIT as part of the company’s aggregation strategy on behalf of investors.
• In Q2 2024, ExchangeRight launched its new ER share class for the Essential Income REIT. In Q4 the Essential Income REIT made its first bonus distribution to ER shares investors as a result of their participation in ExchangeRight’s DST fees, representing a distribution of 3.58% on invested capital. The bonus distribution is in addition to the current 6% tax-efficient annualized return and monthly cash flow for Class ER shares, bringing the total distribution rate for investors’ first full year of ownership in Class ER shares to 9.58%, before factoring in further potential tax efficiency benefits of an investment in the REIT.
• The Essential Income REIT’s net asset value increased three consecutive quarters in 2024, reaching $27.29 per share based in part on an independent real estate valuation of the REIT’s real estate by KPMG and combined with its other assets and liabilities as of Sept. 30, 2024.
• Wells Fargo and Fifth Third became co-lenders in 2024 on the Essential Income REIT’s revolving line of credit, granting a combined credit capacity of $100 million. The credit facility is expandable up to $400 million and enhances ExchangeRight’s control over the REIT’s portfolio composition and financing strategy. In addition to providing increased flexibility for the Essential Income REIT’s ongoing operations, this expansion provides additional capacity for the REIT’s strategy to eventually take advantage of long-term fixed-rate corporate bonds to optimize the REIT’s financing and further enhance the REIT’s potential earnings and growth.
• The Essential Income REIT was the only growth or stabilizing equity non-traded REIT that fully covered its distributions with adjusted funds from operations or modified funds from operations, as reported in Blue Vault’s Q1, Q2, and Q3 Non-Traded REIT Industry Reviews. It was also the only non-traded REIT that ranked in the top quartile for all three key performance metrics that were measured by Blue Vault in their reporting for Q2 and Q3. This represents the REIT’s consistent track record of fully funding its cash distributions solely from its operations instead of from investor equity or financing.
• In 2024, ExchangeRight’s acquisitions team performed thorough analysis for more than 8,000 properties, approving only the top 1% of properties identified for acquisition and inclusion in the company’s assets under management. These rigorously vetted assets represent more than $489 million in closed acquisitions in 2024, which helped to launch 12 new DST offerings in ExchangeRight’s net lease platform. Investors entrusted over $430 million in equity to ExchangeRight’s REIT and DST offerings last year.
• ExchangeRight was named Landlord of the Year in 2024 by Tractor Supply, partly as a result of ExchangeRight’s asset management team’s proactive support. In addition, the company closed a 13-property, 20-year sale-leaseback portfolio with Tractor Supply in the second half of 2024. This transaction produced attractive properties for ExchangeRight’s portfolios and investors while also facilitating the transaction on a timeline that met all of Tractor Supply’s expectations.
• ExchangeRight’s Asset Management team successfully negotiated 19 lease renewals in 2024, bringing the company to 38 lease renewals for 2023 and 2024 combined, representing an average new rent increase of 4.66% compared to prior rents and an average lease extension of 59 months. The proactive work of ExchangeRight’s leasing team has supported the stability and long-term value of the company’s net lease platform on behalf of our investors.

Past performance does not guarantee future results.

ExchangeRight is a sponsor of Alts Wire, and the article was published as part of their standard directory sponsorship package.

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