FS Credit REIT Acquires $352M Loan Portfolio

FS Credit REIT acquired a $351.8 million portfolio of senior loans, enhancing its holdings with 16 performing loans primarily secured by commercial real estate in the U.S.

July 15, 2024

FS Credit Real Estate Income Trust Inc. (FS Credit REIT), a real estate investment trust focusing on floating rate senior loans secured by commercial properties, has acquired a $351.8 million portfolio from a commercial bank.

The portfolio includes 16 performing floating rate loans with an original loan-to-value ratio of 61%, an in-place debt yield over 10%, and a weighted average spread offering an attractive yield.

“FS Credit REIT entered the current cycle with a strong liquidity position in anticipation of opportunities that might arise as markets adjust to the higher interest rate environment,” said Chris Condelles, CFO of FS Credit REIT. “Periods of dislocation often present opportunities to acquire quality assets at highly attractive terms.”

Following this acquisition, FS Credit REIT manages $9.1 billion in assets across 153 loans, mainly in multifamily, hospitality, and industrial properties as of June 30, 2024. FS Credit REIT is a non-listed REIT that focuses on senior loans secured by U.S. commercial real estate, aiming to provide alternative income, capital preservation, and long-term appreciation.

The REIT is offering up to $2.75 billion in shares of common stock, including $2.5 billion in its primary offering and $250 million through a distribution reinvestment plan. As of June 13, it had raised $1.129 billion through its primary offering and over $151 million via the reinvestment plan.

FS Investments manages over $78 billion in assets globally for a diverse client base, including institutional and individual investors. The firm, headquartered in Philadelphia, employs over 500 people across offices in the U.S., Europe, and Asia.