ExchangeRight, one of the nation’s leading providers of diversified real estate REIT and DST investments, has announced the launch of new subclasses for the ER shares of the Essential Income REIT. These subclasses are designed to increase accessibility through custodians and investment platforms while preserving the distinct benefits that make Class ER a compelling option for investors looking for tax-efficient income and growth, as well as participation in ExchangeRight’s profits.
Class ER Shares are structured to provide investors with the REIT’s tax-efficient monthly income and long-term growth potential, a year-one bonus distribution, and participation in ExchangeRight’s performance fee after a targeted five-year hold. Existing ER share investors who invested shortly after this new share class was launched have enjoyed year-one tax-equivalent yields ranging between 13-14% for 2024. Past performance does not guarantee future results.
To support these enhancements and provide broader access via custodians and platforms, ExchangeRight has consolidated all ER share subclasses into a single Private Placement Memorandum and set of offering and subscription documents. This update aligns with the recent consolidation of the Class I, D, S, and A shares and reflects the company’s broader commitment to improving the investor experience through increased access and operational efficiency.
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 6.00–6.38% 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. “Investment-grade” applies to tenants whose long-term corporate debt rating is considered investment grade by Standard & Poor’s, Moody’s, and/or Fitch. An investment-grade rating is a rating that indicates that a corporate bond has a relatively lower risk of default than a corporate bond with a speculative grade. 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
