Fifth Third Bank Joins Wells Fargo to Increase ExchangeRight REIT Credit Facility to $100 Million

PASADENA, Calif., July 29, 2024 /PRNewswire/ -- ExchangeRight, one of the nation's leading providers of diversified real estate DST and REIT investments, has announced that Fifth Third Bank has joined Wells Fargo as a co-lender on ExchangeRight's Essential Income REIT's revolving line of credit and has increased the current credit capacity to $100 million. This closing strategically expands the REIT's credit access, adding to the recently announced Credit Facility with Wells Fargo for $75 million. This Credit Facility may be increased to $400 million upon request of the REIT, subject to receipt of commitments for the increased amount.

Expanding the Essential Income REIT's Credit Facility with this commitment from Fifth Third Bank on behalf of the REIT further enhances ExchangeRight's control over the REIT's portfolio composition and financing strategy. In addition to providing increased flexibility for the Essential Income REIT's ongoing operations, this expansion provides additional capacity for the REIT to eventually take advantage of long-term fixed-rate corporate bonds to optimize the REIT's financing and further enhance the REIT's potential Adjusted Funds from Operations ("AFFO").

"We are grateful to have Fifth Third, a top-20 bank nationally as measured by total assets, as another trusted lending partner for ExchangeRight's Essential Income REIT," said Joshua Ungerecht, a managing partner at ExchangeRight. "This recognition of the quality of ExchangeRight's REIT platform by another large bank known for its rigorous analysis is a testament to the stability and value that our REIT has provided its investors through its diversification and focus on historically recession-resilient industries and tenants. As we look forward, we are excited for the added efficiencies afforded by this expanded credit access as we continue to execute our aggregation strategy in order to grow the REIT's assets, diversification, scale, and value on behalf of investors." The past performance of the REIT is not a guarantee of future results.

About ExchangeRight's Essential Income REIT

The Essential Income REIT, a Maryland statutory trust, is a self-administered real estate company for accredited investors only, formed on January 11, 2019, that focuses on investing in single-tenant, primarily investment-grade net-leased real estate. The REIT currently pays an annualized distribution rate on new investments of 6.38% for its Class I shares and 6.00% for its Class A shares, and targets 6.00% monthly tax-efficient income with a 10% total annual internal rate of return for its Class ER shares. The REIT has fully covered its dividend with Adjusted Funds from Operations since its inception and through its most recently reported period. The Company, through its operating partnership, ExchangeRight Income Fund Operating Partnership, LP, owns 353 properties in 34 states (collectively, the "Trust Properties") as of June 30, 2024. The Trust Properties are occupied by 36 different national primarily investment-grade necessity-based retail tenants and are additionally diversified by industry, geographic region, and lease term. The Company has elected and is qualified to be taxed as a real estate investment trust ("REIT") for U.S. federal income tax purposes. Please visit the REIT's website to learn more about its Class ER, Class A, and Class I shares. The past performance of the REIT and ExchangeRight does not guarantee future results.

Media Contact
Lindsey Thompson
Senior Media Relations Officer
lthompson@exchangeright.com
(626) 773-3448