Capital Square Housing Trust Successfully Completes Preferred Stock Offering with Full Subscription
On June 26, 2025, Capital Square Housing Trust, an esteemed real estate investment trust (REIT) backed by Capital Square, proudly reported that its recent offering of two million shares of Series 1 Redeemable Convertible 9.0% Preferred Stock was fully subscribed. This initiative raised a commendable $24 million, with the funds earmarked for further acquisitions and various UPREIT (Umbrella Partnership Real Estate Investment Trust) transactions, along with general corporate purposes.
Louis Rogers, the founder and co-CEO of Capital Square, expressed excitement regarding the impact of this offering. He highlighted that the proceeds would facilitate approximately $200 million in UPREIT transactions. "Capital Square specializes in Delaware statutory trust offerings, which allow investors to benefit from tax deferral under Section 1031. Furthermore, the option of UPREIT transactions becomes feasible as DST properties mature. Given that most DST owners choose the UPREIT path, the funds from this offering will significantly enhance the operations of Capital Square Housing Trust," he remarked.
Investment in the preferred stock is particularly appealing, presenting investors with an attractive annual dividend of 9.0%, distributed monthly. On the fourth anniversary of the offering, holders have the option to convert their preferred stock into common stock at a 5% discount, providing potential for increased value.
Additionally, a Preferred Distribution Reinvestment Plan, known as "DRIP" is offered, allowing investors to reinvest their monthly dividends into extra shares at the current offering price, with no fees or sales commissions attached.
Whitson Huffman, co-CEO and chief investment officer of Capital Square, expressed gratitude for their investors’ confidence, mentioning, "Our preferred shareholders benefit from a robust 9% annual return along with the opportunity to convert their investments at a discount, thereby significantly elevating the long-term potential of their resources."
Currently, the portfolio of Capital Square Housing Trust is impressive, comprising five Class A and Class B multifamily communities boasting a combined asset value over $212 million, calculated based on the initial purchase price. Their strategy relies on UPREIT acquisitions that offer individuals involved in Capital Square’s tax-advantaged DST investment programs a chance to swap their DST interests for operational partnership units in the REIT, creating a tax-advantaged process under Internal Revenue Code Section 721. This approach allows property owners to diversify and manage risk while transitioning a single unit for interests in a REIT that commands a broader, diversified portfolio, all while enjoying tax benefits and the perks of REIT ownership.
About Capital Square Housing Trust
Capital Square Housing Trust operates as a REIT sponsored by Capital Square, a reputable national real estate firm led by a skilled team of real estate investment experts with extensive experience. The REIT focuses on acquiring and managing diverse housing solutions within high-growth markets in the Southeastern United States. (For more information, visit www.CapitalSquareREIT.com)
About Capital Square
Capital Square employs a vertically integrated, nationwide model specializing in tax-advantaged real estate investments, which include Delaware statutory trusts for Section 1031 exchanges and opportunity zone funds for tax deferral and exclusions, in addition to operating a REIT. The firm is also actively involved in developing and managing multifamily communities. Since its inception in 2012, Capital Square has successfully completed more than $7.9 billion in transactions and is recognized by Inc. 5000 as one of the fastest-growing companies in the country for eight consecutive years. For further details, please check CapitalSq.com.
Disclosures:
Investing in DST properties and real estate securities is associated with various risks, including lack of liquidity, tenant vacancies, and competitions among others. It’s crucial to consult with a financial advisor regarding investment decisions, especially concerning tax-related matters. This information should not be construed as an offer to sell securities. Before proceeding, review the Private Placement Memorandum (PPM) thoroughly, especially the risk section.
Louis Rogers, the founder and co-CEO of Capital Square, expressed excitement regarding the impact of this offering. He highlighted that the proceeds would facilitate approximately $200 million in UPREIT transactions. "Capital Square specializes in Delaware statutory trust offerings, which allow investors to benefit from tax deferral under Section 1031. Furthermore, the option of UPREIT transactions becomes feasible as DST properties mature. Given that most DST owners choose the UPREIT path, the funds from this offering will significantly enhance the operations of Capital Square Housing Trust," he remarked.
Investment in the preferred stock is particularly appealing, presenting investors with an attractive annual dividend of 9.0%, distributed monthly. On the fourth anniversary of the offering, holders have the option to convert their preferred stock into common stock at a 5% discount, providing potential for increased value.
Additionally, a Preferred Distribution Reinvestment Plan, known as "DRIP" is offered, allowing investors to reinvest their monthly dividends into extra shares at the current offering price, with no fees or sales commissions attached.
Whitson Huffman, co-CEO and chief investment officer of Capital Square, expressed gratitude for their investors’ confidence, mentioning, "Our preferred shareholders benefit from a robust 9% annual return along with the opportunity to convert their investments at a discount, thereby significantly elevating the long-term potential of their resources."
Currently, the portfolio of Capital Square Housing Trust is impressive, comprising five Class A and Class B multifamily communities boasting a combined asset value over $212 million, calculated based on the initial purchase price. Their strategy relies on UPREIT acquisitions that offer individuals involved in Capital Square’s tax-advantaged DST investment programs a chance to swap their DST interests for operational partnership units in the REIT, creating a tax-advantaged process under Internal Revenue Code Section 721. This approach allows property owners to diversify and manage risk while transitioning a single unit for interests in a REIT that commands a broader, diversified portfolio, all while enjoying tax benefits and the perks of REIT ownership.
About Capital Square Housing Trust
Capital Square Housing Trust operates as a REIT sponsored by Capital Square, a reputable national real estate firm led by a skilled team of real estate investment experts with extensive experience. The REIT focuses on acquiring and managing diverse housing solutions within high-growth markets in the Southeastern United States. (For more information, visit www.CapitalSquareREIT.com)
About Capital Square
Capital Square employs a vertically integrated, nationwide model specializing in tax-advantaged real estate investments, which include Delaware statutory trusts for Section 1031 exchanges and opportunity zone funds for tax deferral and exclusions, in addition to operating a REIT. The firm is also actively involved in developing and managing multifamily communities. Since its inception in 2012, Capital Square has successfully completed more than $7.9 billion in transactions and is recognized by Inc. 5000 as one of the fastest-growing companies in the country for eight consecutive years. For further details, please check CapitalSq.com.
Disclosures:
Investing in DST properties and real estate securities is associated with various risks, including lack of liquidity, tenant vacancies, and competitions among others. It’s crucial to consult with a financial advisor regarding investment decisions, especially concerning tax-related matters. This information should not be construed as an offer to sell securities. Before proceeding, review the Private Placement Memorandum (PPM) thoroughly, especially the risk section.
Topics Financial Services & Investing）
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