Rodin Global Property Trust Changes Name to Cantor Fitzgerald Income Trust
August 7, 2020 | James Sprow | Blue Vault
On July 30, 2020, Cantor Fitzgerald Income Trust, Inc., formerly known as Rodin Global Property Trust, Inc. (the “Company”), amended its charter to change its name from Rodin Global Property Trust, Inc. to Cantor Fitzgerald Income Trust, Inc.
Changes to Share Classes
The Company also amended the Charter to redesignate its issued and outstanding classes of common stock. As described in the Company’s Articles of Amendment to Second Articles of Amendment and Restatement, the Company has redesignated its currently issued and outstanding Class A shares of common stock, Class T shares of common stock and Class I shares of common stock as “Class AX Shares,” “Class TX Shares” and “Class IX Shares,” respectively. This change has not impacted the rights associated with the Class A shares, Class T shares and Class I Shares. In addition, on July 30, 2020, as set forth in the Charter, as supplemented by Articles Supplementary, the Company has reclassified the authorized but unissued portion of its common stock into four additional classes of common stock: Class T Shares, Class S Shares, Class D Shares, and Class I Shares. The Class AX Shares, Class D Shares, Class I Shares, Class IX Shares, Class S Shares, Class T Shares and Class TX Shares have the same voting rights and rights upon liquidation, although distributions are expected to differ due to the distribution fees payable with respect to Class D Shares, Class S Shares, Class T Shares and Class TX Shares, which will reduce distributions to the holders of such shares.
Blue Vault Commentary
Although all of the share classes will have the same voting rights and rights upon liquidation, it appears the main purpose of the redesignation of the issued and outstanding share classes and the introduction of the new unissued Classes T, S, D and I shares to be issued in the future is to allow for different distribution fees payable with respect to the new classes.
According to the Follow-On Offering announcement:
“We look forward to introducing updated share classes with lower fees, increased liquidity, monthly valuations, and an expanded investment strategy designed to complement the portfolio already assembled and to position the Company for long term success.
The Company’s real estate portfolio exceeds 3.8 million square feet with approximately $233 million of total assets diversified by property type, tenant and geography. We have a presence in growth market MSA’s including San Francisco, Dallas-Fort Worth, Columbus, Phoenix and Charlotte.
The Company has maintained a $1.55 per share distribution since inception resulting in a distribution rate of over 6%1 for the I share. In the first quarter of 2020, the Company’s FFO2 payout ratio was 94%, one of the healthiest in the industry. We have a conservative balance sheet with a net debt to total capitalization ratio of 30.3%3 and no floating rate debt as of March 31, 2020. Our low leverage and approximately $28 million of unrestricted cash as of March 31, 2020, favorably position the Company for new acquisitions and other growth initiatives at what we feel is an opportune moment in time given the uncertainties in today’s market.”
1 As of March 31, 2020. Annualized distribution rate is based on the public offering price of each class of shares effective as of March 31, 2020 and assumes the daily distribution rate of $0.004253787 per share that is maintained for one year. Distributions for Class T shares are calculated based on stockholders of record each day for the quarter ended March 31, 2020 in an amount of $0.003572500 per share, less the distribution fee which is payable with respect to such Class T shares, will vary based on the total amount of distribution fee payable and assumes that such rate will be maintained for one year. Distributions are not guaranteed and may be paid from sources other than cash flow from operations. As of March 31, 2020, 30% of distributions have been paid from such sources.
2 Funds from Operations (“FFO”), as defined by NAREIT, is a computation made by analysts and investors to measure a real estate company’s cash flow generated by operations. The Company computes FFO in accordance with the standards established by NAREIT, as net income or loss (computed in accordance with U.S. GAAP), excluding gains or losses from sales of depreciable properties, the cumulative effect of changes in accounting principles, real estate-related depreciation and amortization, impairment charges on depreciable property owned directly or indirectly and after adjustments for unconsolidated/uncombined partnerships and joint ventures.
3 Net Debt is calculated as loans payable less cash. Capitalization represents investments in real estate and real estate-related assets.
