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.
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,” Joshua Ungerecht, a managing partner at ExchangeRight, said. “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.”
