Major Stakeholders Adjust Holdings in Fortress Net Lease REIT

Reporting entities indicate increased shares through acquisitions and conversions.

December 13, 2024

Fortress Net Lease REIT Stakeholders Expand Equity Holdings

Fortress Net Lease REIT's latest SEC filing highlights notable activity in share acquisitions by its major stakeholders, reflecting strategic financial maneuvers. The report detailed changes in Class D common shares of beneficial interest held by Tiedemann Advisors, LLC and its affiliates.

The primary transactions occurred in May and June 2024, with Tiedemann Advisors acquiring over 586,000 Class D shares in multiple phases. In the first acquisition on May 1, the firm purchased approximately 258,537 shares at an average price of $10.06 per share. Subsequent acquisitions in June added an additional 327,960 shares to its holdings.

These transactions reflect a consolidated ownership increase, culminating in over 5.1 million Class D shares held as of June 3. Certain shares were also acquired through an automatic conversion tied to the issuer's fee waiver mechanism, with no direct financial consideration required for this portion of the acquisition.

Consolidated Ownership Strategy

Tiedemann Advisors, operating alongside several affiliated entities under the umbrella of AlTi Global, Inc., maintains a direct and indirect ownership structure. While Tiedemann Advisors is the primary reporting party, other affiliated entities like AlTi Global Capital, LLC and AlTi Wealth Management Holdings, LLC were also disclosed as beneficiaries in the transactions.

The filing clarifies that none of the reporting entities paid additional consideration for the converted shares, which stemmed from pre-existing ownership rights. All entities collectively disclaim beneficial ownership except where explicitly stated to align with federal securities law.

This increased equity stake underscores the stakeholders' confidence in Fortress Net Lease REIT's performance and its strategic positioning within the real estate investment trust sector. Observers will likely view these moves as part of a broader effort to enhance stakeholder value and consolidate influence within the REIT.