Fortress Net Lease REIT Raises $38.3 Million in Equity Sale

The firm declared quarterly distributions for multiple share classes and detailed key financial updates.

February 10, 2025

Equity Sale Raises $38.3 Million

Fortress Net Lease REIT recently completed an unregistered sale of equity securities, raising $38.3 million in gross proceeds. The sale, executed on February 3, 2025, resulted in the issuance of 3,761,534 common shares. Pricing was based on the net asset value per share as of December 31, 2024.

The breakdown of the equity sale showed strong investor interest in Class F-I shares, which accounted for $20.9 million from 2,051,153 shares sold. Class F-S and Class I shares followed, generating $9.31 million and $8.08 million, respectively. These sales were conducted under exemptions outlined in the Securities Act of 1933, specifically through Regulation D and Regulation S.

Quarterly Distributions Announced

Alongside the equity sale, Fortress Net Lease REIT declared quarterly distributions for its common shareholders on January 31, 2025. Most share classes received a gross distribution of $0.0552 per share, except for Class F-S, which had a net distribution of $0.0480 per share due to a shareholder servicing fee. Shareholders of record at the close of business on January 31, 2025, will receive these distributions on or about February 4, 2025, in either cash or reinvested shares.

Class D-X Fee Waivers Detailed

Fortress Net Lease REIT also provided specific information regarding Class D-X shares, which are eligible for temporary fee waivers. The company’s adviser and special limited partner have waived management fees and performance participation for six months for certain investors, based on the date of purchase or release from escrow. This initiative aims to provide added value to early-stage investors.

By raising additional capital and maintaining regular distributions, Fortress Net Lease REIT continues to focus on growing its portfolio while delivering consistent returns to its investors. The recent developments signal the company’s strategic emphasis on strengthening its capital base and supporting long-term growth initiatives.