FS Credit REIT Adjusts Monthly Distribution Rates

FS Credit Real Estate Income Trust, Inc. has announced a downward adjustment to its monthly distribution for all common stock share classes, starting with payments issued to shareholders of record as of February 26, 2026. The changes follow a recommendation from the company’s adviser and were approved by the board of directors after an internal review of several key financial and market conditions.

The February 2026 distribution, payable on February 27, introduces reduced payout rates across the fund’s various share classes. Annualized based on the most recent net asset values as of December 31, 2025, the updated yields now range from 6.28% to 8.73%. Class I shares, for example, will reflect an annualized rate of 7.42%, while the highest return— 8.73% —will apply to Class Y shares.

The decision was driven by a combination of factors, including:

• Shifts in base interest rates


• Spreads in the credit markets


• Levels of leverage within the portfolio


• Expectations around new loan originations


• Anticipated paydowns or prepayments

These considerations led the board to reassess the sustainability and competitiveness of the distribution levels.

While the adjustment provides a more responsive alignment to current market conditions, the company emphasized that future distribution amounts and schedules remain at the discretion of the board. Ongoing evaluations will continue, particularly in light of the evolving interest rate landscape and its potential impact on portfolio performance.

The company also included forward-looking statements in its announcement, acknowledging that actual future results may differ from current projections due to unpredictable market forces and operational decisions. FS Credit REIT reiterated that no guarantees can be made regarding future distributions, and any changes will depend on ongoing assessments of financial and economic developments.