ExchangeRight Reports $698.9M NAV
The real estate investment trust adjusts share pricing and announces dividends for Q4 2024.
January 27, 2025
Strong Asset Valuation and Updated NAV
ExchangeRight Income Fund, operating as ExchangeRight Essential Income REIT, has disclosed its net asset value (NAV) as of December 31, 2024, at $698.9 million, translating to $27.37 per share/unit across its Class I, Class A, and Class S common shares, as well as the OP Units in its operating partnership. The valuation reflects the midpoint assessment of its real estate assets by an independent valuation firm, combined with cash, receivables, and liabilities.
The NAV is updated quarterly and reflects the company’s holdings in over $1.3 billion in real estate investments, complemented by affiliate notes receivable and cash reserves. The company’s mortgage loans payable amount to $584.8 million, with an additional $82.5 million drawn from a revolving credit facility.
Private Offering Adjustments
ExchangeRight is actively engaged in a private placement offering aimed at raising up to $2.165 billion, offering multiple share classes. Following the new NAV determination, pricing for Class I, Class A, and Class S shares has been updated, with Class I shares at $27.37, Class A at $29.10, and Class S at $28.36. The Class ER shares remain priced at $28.97 under their fixed structure.
To date, the private placement has raised approximately $477.5 million, issuing a total of 17.53 million common shares. Class A shares represent the bulk of the issuance, accounting for 10.66 million shares and $296.5 million in capital, followed by Class I shares at 6.61 million shares and $173.6 million. Class ER shares have a significantly smaller footprint, with 258,454 shares issued, raising $7.47 million. No Class S shares have been issued so far.
As of December 31, 2024, the company has $1.43 billion in shares remaining for future issuance under the private offering.
Dividend Declaration and Reinvestment Plan
ExchangeRight declared a quarterly dividend of $0.1449 per share for its common shares as of December 31, 2024, with payments distributed on January 15, 2025. The dividend was either paid in cash or reinvested into additional common shares under its Dividend Reinvestment and Direct Share Purchase Plan (DRIP).
Shareholders opted to reinvest 10.8% of the declared dividends through the DRIP, amounting to 184,676 additional common shares issued. Class A shareholders reinvested $2.57 million, while Class I shareholders reinvested $2.40 million.
Outlook and Market Position
ExchangeRight positions itself as a recession-resistant, e-commerce-resilient real estate investment trust, focusing on essential businesses. Its financial stability and consistent asset valuation updates support its capital-raising strategy. While macroeconomic conditions remain uncertain, the firm aims to maintain its trajectory through disciplined asset management and strategic capital allocation.
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