ExchangeRight Launches Class D Shares for RIAs

The new Class D shares in the Essential Income REIT offer 0% net upfront commissions and are designed for RIAs and custodial platforms.

June 23, 2025

This article was originally published on ExchangeRight by Lindsey Thompson.

Launch of Class D Shares for Essential Income REIT

ExchangeRight, a sponsor of Delaware statutory trusts and non-traded real estate investment trusts, has introduced a new share class—Class D—for its Essential Income REIT. These shares feature one of the industry’s lowest fee structures and are specifically tailored for registered investment advisors (RIAs) and custodial platforms.

Key Features of Class D Shares

0% net upfront commissions

No placement agent fee

No advisory, financing, or disposition fees

These terms provide a compelling option for RIAs seeking efficient, low-cost exposure to real estate investments on behalf of their clients. Investors can find a full breakdown of the features, structure, and fees on the REIT’s official website.

Income and Platform Integration

The Class D shares offer a current monthly net tax-efficient income of 6.10% annualized, making them an attractive income-generating asset. Their structure allows for a more streamlined transaction and tracking process across custodial platforms, enhancing convenience and administrative efficiency for both advisors and investors.

Consistent Performance and Tax Efficiency

Since inception, the Essential Income REIT has delivered consistent tax-efficient distributions , with over 69% of distributions in 2024 being tax-deferred. These distributions have been fully covered by operations, which has helped to generate strong total returns while reducing volatility for investors.

Strategic Consolidation of Share Classes

With the launch of Class D shares, ExchangeRight is consolidating Class I, D, S, and A share classes into a single Private Placement Memorandum (PPM). This move aims to:

Improve accessibility

Streamline transaction processes

Expand the availability of the Essential Income REIT across major custodial platforms

Leadership Commentary

“We are continually seeking ways to enhance our offerings and make our historically recession-resilient net-leased real estate strategy more accessible for advisors and their clients,” said Joshua Ungerecht, a managing partner at ExchangeRight. “The introduction of our Class D shares, with their distinctly low fee structure and streamlined access, underscores our commitment to empowering RIAs to efficiently integrate our conservative real estate investments into client portfolios.”