PASADENA, Calif. - ExchangeRight has brought its Net-Leased Portfolio 13 DST portfolio full cycle, generating total returns of over 130% including return of capital for investors who chose to cash out or complete a 1031 exchange. Total returns were equivalent to over 141% 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 Net-Leased Portfolio 13 DST investor with the option to perform another 1031 exchange, receive cash, complete a tax-deferred 721 exchange, or any combination of these options.
Prior to this profitable sale, Net-Leased Portfolio 13 DST provided investors with stable income generated by long-term net-leased properties backed primarily by investment-grade tenants operating essential businesses diversified across 20 properties and 8 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 have paid 100% of their rent throughout the pandemic and resulting economic turmoil. The DST portfolio’s strong performance enabled investors to achieve stable uninterrupted distributions and made an attractive acquisition target for the acquiring REIT.
The DST portfolio’s average annualized rate of return for cash and 1031 exchange investors was 7.31%, over 10% 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 9.88%, over 48% higher than the company’s initial projections.
“This is ExchangeRight’s fifteenth full cycle offering and the sixth net-leased portfolio that we have brought full cycle as part of our aggregated exit strategy, adding to our track record of providing total returns that have been at or in excess of investor return projections,” said Warren Thomas, a managing partner of ExchangeRight. “We are pleased to have been able to protect our investors’ capital, to have provided them with stable and secure income, and to deliver strong total returns above our original projections, even in the midst of the economic turmoil caused by the pandemic.”
ExchangeRight and its affiliates’ vertically integrated platform has over $3.1 billion in assets under management, diversified across more than 750 properties, over 13 million square feet, and throughout 38 different states. More than 4,000 investors have trusted ExchangeRight to manage their capital. All 58 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.