PASADENA, Calif. - ExchangeRight has brought another net-leased portfolio DST full cycle, generating total returns of over 169% including return of capital for investors who chose to cash out or complete a 1031 exchange. Total returns were equivalent to over 181% including return of capital for investors who chose to complete a tax-deferred 721 exchange into the acquiring REIT, based on an independent valuation performed by KPMG of the acquiring REIT portfolio. ExchangeRight provided each DST investor with the option to perform another 1031 exchange, receive cash, or complete a tax-deferred 721 exchange, or any combination of these options.
Prior to going full cycle, the net-leased portfolio DST provided investors with stable income generated by long-term net-leased properties backed by investment-grade tenants operating essential businesses diversified across nine properties and four states. Due to the financial strength of the DST portfolio’s tenants and their ability to remain open and operating during the COVID-19 crisis, the tenants paid 100% of their rent throughout the pandemic and resulting economic turmoil. The DST portfolio’s strong performance enabled investors to enjoy uninterrupted distributions and made an attractive acquisition target for the acquiring REIT.
The portfolio’s average annualized rate of return for cash and 1031 exchange investors was 9.10%, over 23% higher than the company’s initial projections. For 721 investors who received operating units in the acquiring portfolio, the average annualized returns were equivalent to 10.64%, over 44% higher than the company’s initial projections.
“This is the fifth Net-Leased Portfolio offering we have brought full cycle in just over a year, building on our successful track record of returning profits to investors and meeting or exceeding projections with our DST programs,” said Warren Thomas, a managing partner of ExchangeRight. “Despite the economic downturn, we continue to successfully protect investors’ capital with recession-resilient portfolios while providing stable income and cumulative returns that are among the highest in the industry. We are truly grateful for the trust that many of the industry’s representatives and advisors, together with their investors, have placed in us, which has allowed us to further empower people to be secure, free, and generous.”
ExchangeRight and its affiliates’ vertically integrated platform has over $2.9 billion in assets under management, diversified across more than 700 properties of over 13 million square feet located throughout 38 different states. More than 3,800 investors have trusted ExchangeRight to manage their capital. All 56 of the company’s current and past offerings have met or exceeded targeted cash flow distributions to investors since the company’s founding in 2012.
ExchangeRight pursues its passion to empower people to be secure, free, and generous by providing REIT, fund, and 1031 DST portfolios that target secure capital, stable income, and strategic exits. The company sources, syndicates, and strategically manages long-term, net-leased assets backed by investment-grade corporations that operate essential businesses successfully in the necessity-based retail and healthcare industries. For more information, visit www.exchangeright.com.