ExchangeRight has announced that the Essential Income REIT was one of only two Growth and Stabilizing Non-Traded equity REITs (“NTRs”) to receive the highest rating across all three Performance Profiles in Blue Vault’s Q2 2025 Non-Traded REIT Industry Review: Operating Performance, Financing Outlook, and Cumulative MFFO. The Essential Income REIT earned a top-quartile grade for Operating Performance in part because its 12-month average return is above the median return on assets for all NTRs for the previous four quarters, reflecting ExchangeRight’s commitment to operational and financial excellence.
In Q2 2025, the Essential Income REIT was also one of only three NTRs that fully covered its distributions with Adjusted Funds from Operations (“AFFO”) or Modified Funds from Operations (“MFFO”). This represents the REIT’s ability to fully fund its cash distributions solely from its operations instead of from investor equity or financing. The Essential Income REIT’s AFFO to distribution coverage inception-to-date is 103.99% as of June 30, 2025.
Additionally, the REIT recorded one of the five lowest redemption rates in Q2 2025, with redemptions totaling 1.28% of weighted average shares outstanding. In contrast, the other 14 NTRs averaged 2.50%, nearly 2 times the rate experienced by the Essential Income REIT, per Blue Vault’s report.
The Essential Income REIT was one of only five NTRs that have an interest coverage ratio greater than 2.25x, with an interest coverage ratio of 2.3x in Q2 2025. This underscores the REIT’s resilient ability to cover its financing costs with a robust margin in order to protect investors’ income and capital.
The past performance of the REIT does not guarantee future results. All comparative claims about growth or stabilizing equity non-traded REITs are based on Blue Vault’s Q2 2025 Non-traded REIT Industry Review, Non-Traded REIT Fee Study (4th ed.), pp. 50-103.
About ExchangeRight’s Essential Income REIT
The Essential Income REIT, a Maryland statutory trust, is a self-administered real estate company, formed on January 11, 2019. The REIT is available to accredited investors only and focuses on investing in single-tenant, primarily investment-grade net-leased real estate. The REIT has fully covered its dividend with Adjusted Funds From Operations since its inception and through its most recently reported period. The past performance of the REIT is no guarantee of future results. The Company, through its operating partnership, ExchangeRight Income Fund Operating Partnership, LP, owns 359 properties in 34 states (collectively, the “Trust Properties”) as of June 30, 2025. The Trust Properties are occupied by 39 different primarily national investment-grade necessity-based retail tenants and are additionally diversified by industry, geographic region, and lease term. The Company has elected and is qualified to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. Please visit the REIT’s webpage to learn more. The past performance of the REIT and ExchangeRight does not guarantee future results.
Media Contact
Lindsey Thompson
Senior Media Relations Officer
lthompson@exchangeright.com
