ExchangeRight Expands Portfolio with Key Acquisitions

The company declares consistent dividends while progressing with a significant private offering and property acquisitions.

December 23, 2024

Dividend Distribution Reflects Stable Performance

On November 30, 2024, ExchangeRight declared dividends amounting to $0.1449 per share for its common shares, reflecting stability in shareholder returns. Eligible shareholders received the dividends in cash or had them reinvested through the company’s Dividend Reinvestment and Direct Share Purchase Plan (DRIP). Over 10% of shareholders opted for reinvestment, signaling strong confidence in the company's long-term value.

Cumulatively, the DRIP has facilitated the reinvestment of approximately $4.6 million, reinforcing the company’s strategy to sustain shareholder engagement and liquidity. This approach not only retains capital within the enterprise but also aligns with investors' objectives for compounding returns over time.

Ongoing Private Offering Garners Robust Interest

The company is actively pursuing a private placement offering of up to $2.165 billion in common shares. As of the reporting date, ExchangeRight had raised $476.8 million through the issuance of over 17.4 million shares across different classes. The offering encompasses Class I, Class A, Class ER, and Class S shares, with Class A shares contributing the lion’s share of the raised capital.

These funds reflect investor confidence in ExchangeRight's strategic direction and its ability to leverage proceeds for growth-oriented initiatives.

Strategic Acquisitions Drive Portfolio Growth

One of the highlights of the recent period is ExchangeRight’s acquisition of 23 properties for $118.7 million through a merger with ExchangeRight Net Leased Portfolio 28 DST. This deal involved the assumption of a $63.9 million fixed-rate mortgage loan and included a tax-deferred exchange of ownership interests by former investors.

This acquisition expands the company’s holdings to 362 properties across 34 states, illustrating a well-diversified real estate portfolio. By focusing on e-commerce-resistant and recession-resilient assets, ExchangeRight aligns its strategy with market demands, reducing risk exposure while enhancing stability.

Looking Ahead

While ExchangeRight has demonstrated a solid trajectory, the company acknowledges risks inherent in its sector, such as market fluctuations, tenant defaults, and regulatory changes. Despite these challenges, its commitment to disciplined acquisitions, consistent dividends, and strategic capital allocation positions it favorably for future growth.

With an expanding portfolio and sustained investor confidence, ExchangeRight is setting benchmarks in the REIT space, combining resilience and innovation to meet evolving market dynamics.