Fortress Net Lease Reports $79.1M Equity Sale

The company’s strategic equity moves aim to bolster its growth while maintaining steady shareholder returns.

January 10, 2025

Equity Sale Drives New Capital

Fortress Net Lease REIT has announced a significant equity transaction, issuing 7.8 million common shares for gross proceeds of $79.1 million. This strategic move, finalized on January 2, 2025, reflects the company's effort to strengthen its financial position. The sale was conducted under exemptions from certain registration requirements, involving primarily Class F-I and Class F-S shares. Class F-I accounted for over $64.2 million in proceeds, with Class F-S contributing approximately $14.9 million.

Stable Distributions Across Share Classes

On December 31, 2024, the company declared consistent distributions for its various share classes, set at $0.0529 per share. Shareholders in Class F-I and Class D-S received the full gross distribution, while Class F-S holders experienced a net payout of $0.0457 per share after deducting shareholder servicing fees. These payments, scheduled for January 3, 2025, can be received in cash or reinvested through Fortress’s distribution reinvestment plan.

Class D-X Shares and Fee Waivers

The company highlighted its Class D-X shares, which benefit from a temporary waiver on management and performance fees. This incentive, applicable to select early investors, enhances returns during the initial six months of ownership. The initiative demonstrates Fortress's commitment to rewarding early participation and fostering investor loyalty.

Positioning for Growth

These developments underscore Fortress Net Lease REIT’s strategy to align capital raising with shareholder value. By focusing on equity-driven funding and efficient financial management, the company positions itself for growth in a competitive real estate market. With robust capital inflows and steady payouts, Fortress appears poised to navigate the evolving investment landscape effectively.

The company operates out of its headquarters at 1345 Avenue of the Americas, New York, NY, 10105. For inquiries, Fortress can be reached at (212) 798-6100.