FS Credit REIT to Change Offering from a Daily to Monthly NAV REIT
June 26, 2018 | James Sprow | Blue Vault
In a filing with the SEC on June 22, 2018, FS Credit REIT announced that it is planning to change its NAV frequency from daily to monthly. This change would mean the REIT will have NAVs estimated on a monthly basis for determining share purchase prices and share redemption prices, similar to the NAV policies of other recent nontraded REIT offerings from Blackstone, Nuveen, Oaktree and Starwood.
The announcement stated:
Based on, among other things, the current competitive landscape, we believe that it is in the best interest of our stockholders to modify our public offering and certain other features of our company from a daily to a monthly NAV REIT. We believe this change will result in greater access to capital to execute on our investment strategy. We expect this access to capital will help us to better achieve our investment objectives by driving growth and diversification within the portfolio, creating a stronger balance sheet and enhancing liquidity for the benefit of all stockholders. Any modification of our offering is subject to regulatory approval.
As part of the change from a daily to a monthly NAV REIT, we intend to, among other things: (1) change the frequency of our NAV calculations from daily to monthly and make certain other related changes to our valuation policies; and (2) adopt an amended share repurchase plan that would provide for repurchases on a monthly basis. As a monthly NAV REIT, we expect that investors’ subscriptions will be accepted on the first day of each month and the purchase price of each class of shares would generally equal the prior month’s NAV, plus applicable selling commissions and dealer manager fees, if any. There would be no changes to our investment objectives or strategies, or the overall amount of liquidity to be offered under our share repurchase plan.
Subject to the SEC’s review and approval, we currently anticipate that the transition from a daily to a monthly NAV REIT will take place in September or October 2018.
As of March 31, 2018, FS Credit Real Estate Income Trust, Inc. had total assets of $83.5 million, with $79.1 million in loans receivable, consisting of six loans with a weighted-average all-in yield of 6.40% and a weighted-average maximum maturity of 3.6 years.
As of May 11, 2018, the Company has issued 1,796,077 shares of common stock (consisting of 1,559,212 shares of Class S common stock, 192,626 shares of Class Y common stock, 42,150 shares of Class I common stock, 689 shares of Class T common stock, 600 shares of Class D common stock, 400 Class T-C common stock and 400 shares of Class M common stock), including shares issued pursuant to its distribution reinvestment plan, for gross proceeds of $44.7 million.
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