ExchangeRight has announced that the Essential Income REIT was the only Growth and Stabilizing Non-Traded REIT (“NTR”) that fully covered its distributions with Adjusted Funds from Operations (“AFFO”) or Modified Funds from Operations (“MFFO”) for the entirety of 2024, as reported in Blue Vault’s 2024 Q1, Q2, Q3, and Q4 Non-Traded REIT Industry Reviews. This represents the REIT’s consistent inception-to-date track record of fully funding its cash distributions solely from its operations instead of from investor equity or financing. The Essential Income REIT’s Adjusted Funds from Operations (“AFFO”) to distribution coverage inception-to-date is 104.28% as of March 31, 2025.
In Q4 2024, the Essential Income REIT was one of only two NTRs with redemptions less than 1.00%, with redemptions totaling 0.81% of weighted average shares outstanding. In contrast, the other 12 NTRs averaged 2.89%, more than 3.5 times the rate experienced by the Essential Income REIT, per Blue Vault’s report.
The Essential Income REIT was also one of only three NTRs that have an interest coverage ratio greater than 2.25x, with a 2024 interest coverage ratio of 2.3x. This represents the REIT’s resilient ability to cover its financing costs with a robust margin in order to protect investors’ income and capital. Past performance is no guarantee of future results.
Essential Income REIT’s NAV per share is $27.37 based in part on an independent real estate valuation of the REIT’s real estate by KPMG combined with its other assets and liabilities as of March 31, 2025.
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 Q4 2024 Non-traded REIT Industry Review, Non-Traded REIT Fee Study (4th ed.), pp. 51-102.
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 currently pays an annualized distribution rate on new investments of 6.35% for its Class I shares, 6.10% for its Class D shares, 5.28% for its Class S shares, 5.97% for its Class A shares, and 6.00% monthly tax-efficient income for its Class ER shares. 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 364 properties in 34 states (collectively, the “Trust Properties”) as of March 31, 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
