“FS Credit REIT entered the current cycle with a strong liquidity position in anticipation of opportunities that might arise as markets adjust to the higher interest rate environment,” said Chris Condelles, Chief Financial Officer of FS Credit REIT. “Periods of dislocation often present opportunities to acquire quality assets at highly attractive terms.”

“This transaction is indicative of the structural opportunity we continue to see in the market for alternative lenders like FS Credit REIT as banks and other lenders remain constrained or seek to rebalance their CRE holdings,” said Rob Lawrence, Global Head of Real Estate at FS Investments. “The loan portfolio is highly complementary to FS Credit REIT’s existing portfolio, and we believe it will help us continue to provide our stockholders with an attractive income stream and consistent total returns.”

Following the purchase, FS Credit REIT managed $9.1 billion in assets across 153 loans comprised predominantly of multi-family, hospitality and industrial properties as of June 30, 2024.

About FS Credit REIT

FS Credit REIT is a public reporting, non-listed real estate investment trust that originates, acquires and manages a portfolio of senior loans secured by commercial real estate primarily in the United States. FS Credit REIT seeks to generate an alternative source of income, preserve capital and realize long-term appreciation by investing in CRE debt.

FS Credit REIT is advised by FS Real Estate Advisor, LLC and sub-advised by Rialto Capital Management, LLC (Rialto), a real estate investment and asset management company. Rialto’s CRE platform, which has, together with its investment management, asset management, loan servicing, special servicing and loan origination affiliates, over 275 associates in 12 offices across the United States and Europe and is one of the largest non-bank underwriters of commercial mortgage loans used in CMBS securitizations.

About FS Investments

FS Investments is a global alternative asset manager dedicated to delivering superior performance and innovative investment and capital solutions. The firm manages over $78 billion in assets for a wide range of clients, including institutional investors, financial professionals and individual investors, as of March 31, 2024. FS Investments provides access to a broad suite of alternative asset classes and strategies through its best-in-class investment teams and partners. With its diversified platform and flexible capital solutions, the firm is a valued partner to general partners, asset owners and portfolio companies. FS Investments is grounded in its high-performance culture and guided by its commitment to building value for its clients, investing in its colleagues and giving back to its communities. The firm has more than 500 employees across offices in the United States, Europe and Asia and is headquartered in Philadelphia.