FS Credit Real Estate Income Trust Completes Purchase of $351.8 Million Senior Commercial Real Estate Loan Portfolio from a Commercial Bank

PHILADELPHIA, July 10, 2024 /PRNewswire/ — FS Credit Real Estate Income Trust, Inc. (FS Credit REIT), a monthly NAV REIT that invests primarily in floating rate senior loans secured by commercial real estate (CRE) properties, today announced it has completed the purchase of a $351.8 million portfolio of senior loans from a commercial bank seeking to rebalance its CRE loan holdings.

The portfolio is diversified across 16 performing floating rate loans with an original weighted average loan-to-value of approximately 61%, an in-place debt yield of over 10%, and a weighted average spread that generates an attractive all-in yield.

“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.

Forward-looking statements
This press release may contain certain forward-looking statements, including statements with regard to the complementary qualities of the newly acquired portfolio, future performance and operations of FS Credit Real Estate Income Trust, Inc, (FS Credit REIT), as well as market outlook. Words such as “believes,” “expects,” “projects,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and some of these factors are enumerated in the filings the FS Credit REIT makes with the U.S. Securities and Exchange Commission. FS Credit REIT undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. FS Credit REIT’s investment objective is to generate an alternative source of income, preserve capital and realize long-term appreciation. There can be no assurance that the FS Credit REIT will be able to achieve its investment objective.

Contact Information
Melanie Hemmert
[email protected] 

SOURCE FS Investments

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