FS Credit Real Estate Income Trust–D

ZFREDX

Share class: Class D shares are generally only available through independent broker-dealers for fee-based accounts.

NAV REIT

Investment objective

Generate an alternative source of income, preserve capital and realize long-term appreciation

Overview

FS Credit Real Estate Income Trust (FS Credit REIT) is a NAV REIT investing primarily in floating rate senior loans secured by commercial real estate properties.

Adviser

FS Real Estate Advisor, LLC
An affiliate of FS Investments

Sub-adviser

Rialto Capital Management, LLC


Fund information

Transaction price 1 (for 10/1/2018) $25.05
Distribution rate (at NAV) 2 -


View Pricing Disclosure For Footnotes 12
We are not yet qualified as a REIT. We intend to elect and qualify to be taxed as a REIT for U.S. federal income tax purposes for the taxable year 2017. So long as we qualify as a REIT, we generally will not be subject to U.S. federal income tax on net taxable income that we distribute annually to our stockholders.
1

The above share class information represents the transaction price for each share class of our common stock for subscriptions accepted as of October 1, 2018 (and repurchases as of September 30, 2018). The transaction price presented is rounded to two decimal places.

The per share purchase (or repurchase) price is equal to the transaction price plus, for purchases of Class T shares, selling commissions of up to 3.0% and dealer manager fees of up to 0.5% of the transaction price, and, for purchases of Class S shares, selling commissions of up to 3.5% of the transaction price. Stockholders will not pay selling commissions or dealer manager fees on Class D, Class M or Class I shares. Class T, Class S, Class D and Class M shares are also subject to on-going stockholder servicing fees equal to 0.85%, 0.85%, 0.3% and 0.3% per annum of the aggregate NAV of such share class, respectively. Class I shares are not subject to stockholder servicing fees. See the prospectus for additional information.

2Reflects the current month’s distribution annualized and divided by the prior month’s net asset value, which is inclusive of all fees and expenses. For the six months ended June 30, 2018, 65% of FS Credit REIT’s distributions were funded through net investment income and 35% through return of capital. The annualized distribution rate may be rounded.

Key facts

Ticker ZFREDX
CUSIP 302950209
NAV 1 -
Share class inception date 4/17/2018
Min. initial investment amount 2 $5 thousand
Sponsor commitment
(as of 6/30/2018) 3
$34.8 million
Distributions 4 Monthly
Tax reporting Form 1099-DIV
Share repurchase program 5 Monthly; no more than 2% or 5% quarterly of shares outstanding
View key facts disclosure for Footnotes 12345
1NAV is determined as of the last calendar day of each month by FS Real Estate Advisor in accordance with FS Credit REIT’s valuation guidelines. There is no rule, regulation or industry practice that requires the NAV be calculated in a certain way and, FS Credit REIT’s board of directors may adopt changes to the valuation guidelines.
2Any minimum initial investment requirement may be waived in FS Credit REIT’s sole discretion.
3The sponsor commitment represents the aggregate investments in the fund made by individuals and entities affiliated with FS Investments and Rialto Capital Management, LLC, including certain members of the fund’s board of directors. FS Investments and Rialto, individually and/or through affiliated individuals and entities, have collectively committed to investment at least $50 million in the fund.
4The payment of future distributions on FS Credit REIT’s shares is subject to the discretion of FS Credit REIT’s board of directors and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such future distributions. Distributions may be paid from sources other than cash flow from operations.
5No secondary market is expected to develop for FS Credit REIT’s shares; however, on a monthly basis shareholders may request that all or a portion of their shares be repurchased through FS Credit REIT’s share repurchase program. Repurchases are limited to no more than 2% of FS Credit REIT’s NAV per month and no more than 5% of FS Credit REIT’s NAV per calendar quarter. FS Credit REIT’s board of directors may modify, suspend or terminate the share repurchase plan if it deems such action to be in our best interest and the best interest of stockholders. As a result, shares should be considered as having only limited liquidity and at times may be illiquid.
View risk factors disclosure

Investing in FS Credit REIT involves significant risk, including the risk of a substantial loss of investment. The following are some of the risks an investment in FS Credit REIT's common stock involves; however, you should carefully consider all of the information found in the section of FS Credit REIT’s prospectus entitled “Risk Factors” before deciding to invest in shares of FS Credit REIT’s common stock.

  • FS Credit REIT has no prior operating history and there is no assurance that FS Credit REIT will achieve its investment objectives.
  • This is a “blind pool” offering and thus you will not have the opportunity to evaluate FS Credit REIT’s future investments before it makes them.
  • Since there is no public trading market for shares of FS Credit REIT’s common stock, repurchase of shares by FS Credit REIT will likely be the only way to dispose of your shares. FS Credit REIT’s share repurchase plan will provide stockholders with the opportunity to request that FS Credit REIT repurchase their shares on a monthly basis, subject to certain limitation. Further, FS Credit REIT’s board of directors may modify, suspend or terminate our share repurchase plan if it deems such action to be in our best interest and the best interest of stockholders. Finally, FS Credit REIT is not obligated by its charter or otherwise to effect a liquidity event at any time. As a result, shares should be considered as having only limited liquidity and at times may be illiquid.
  • The purchase and repurchase price for shares of FS Credit REIT’s common stock will be based on NAV and will not be based on any public trading market. Because the valuation of FS Credit REIT’s investments is inherently subjective, the NAV of FS Credit REIT’s common stock may not accurately reflect the actual price at which assets could be liquidated on any given day.
  • Valuations and appraisals of real estate-related debt and investments are estimates of fair value and may not necessarily correspond to realizable value, which could adversely affect the value of an investment.
  • FS Credit REIT's business and operations are currently dependent on the commercial real estate industry. Adverse conditions in the commercial real estate industry can have a significant
    negative effect on FS Credit REIT's business and financial condition.
     
  • FS Credit REIT cannot guarantee that it will make distributions, and if it does such distributions may be funded from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and there are no limits on the amounts that may be paid from such sources.
  • FS Credit REIT has no employees and is dependent on its adviser and sub-adviser to conduct operations. FS Credit REIT’s adviser and sub-adviser will face conflicts of interest as a result of, among other things, the obligation to allocate investment opportunities among FS Credit REIT and other investment vehicles, the allocation of time of their investment professionals and the substantial fees and expenses that we will pay to the adviser and its affiliates.
  • This is a "best efforts" offering. If FS Credit REIT is not able to raise a substantial amount of capital in the near term, its ability to achieve its investment objectives could be adversely affected.
  • There are limits on the ownership and transferability of FS Credit REIT’s shares.
  • FS Credit REIT’s failure to qualify or remain qualified to be taxed as a REIT would adversely affect the NAV of its shares and the amount of cash available for distribution to stockholders. 

If you want to learn more, contact us at: Support