ExchangeRight's Essential Income REIT Achieves Top Rankings in Blue Vault's Report on Non-Traded REITs

Introduction In a recent analysis by Blue Vault, ExchangeRight's Essential Income REIT has made headlines by being the sole non-traded REIT (NTR) to achieve the highest ratings across all three critical performance categories. These include 'Operating Performance', 'Financing Outlook', and 'Cumulative MFFO Payout' for the second quarter of 2024. This evaluation underscores the REIT's robust operational health and promising outlook in the competitive landscape of non-traded real estate investment trusts. ### Key Performance Metrics The Essential Income REIT's outstanding performance in Blue Vault's review is particularly evidence in its 'Cumulative MFFO Payout' ranking. According to the report, the REIT has successfully surpassed its cumulative cash distributions owed to shareholders since its inception. This means that the cash generated from its real estate operations was sufficient to fully cover the distributions paid to investors, highlighting the REIT's financial resilience. As of September 30, 2024, the REIT's Adjusted Funds from Operations (AFFO) to distribution coverage was impressively measured at 104.99%. Moreover, the Essential Income REIT has also demonstrated strong debt service coverage, positioning itself as one of the top two NTRs in its peer group with an interest coverage ratio exceeding 2.0. With less than 20% of its debt set to mature within the next two years at unsecured variable rates, the REIT shows a strong ability to manage its financing costs without impacting investor income or diminishing their capital. The REIT's cash interest coverage ratio was recorded at a solid 2.52 times for the trailing twelve months ending September 30, 2024. ### NAV and Redemption Stability Another highlight from the Blue Vault report is the Essential Income REIT's stability in Net Asset Value (NAV). Unlike its peers, which struggled in this aspect, the Essential Income REIT's NAV per share has shown growth for three consecutive quarters, reaching $27.29 per share as of June 2024. This increase reflects a thorough independent valuation of the properties owned by the REIT, showcasing its stable investment value. Additionally, the REIT continued to demonstrate minimal redemptions, with redemption totals being significantly lower than those of its competitors. In Q2 2024, the REIT saw redemptions amount to only 0.62% of weighted average shares, compared to a staggering average of 3.99% across other NTRs. Such a low redemption rate indicates investor confidence in the performance and stability of the Essential Income REIT. ### Statement from ExchangeRight Warren Thomas, managing partner at ExchangeRight, expressed pride in the Essential Income REIT's accolades, stating, "We are thrilled to acknowledge that the Essential Income REIT is the only NTR ranked in the top categories for Operating Performance, Financing Outlook, and Cumulative MFFO Payout, according to Blue Vault. Their independent analysis reaffirms the stability of the Essential Income REIT and how it consistently stands out among its peers in the non-traded REIT sector." ### About the Essential Income REIT ExchangeRight's Essential Income REIT, established on January 11, 2019, is a Maryland statutory trust that is self-administered. This REIT targets accredited investors and focuses on investing in primarily investment-grade, single-tenant net-leased real estate. Currently, it offers annualized distribution rates of 6.37% for Class I shares, 5.99% for Class A shares, and 6.00% for Class ER shares. Notably, the REIT has consistently covered its dividends with ARR over its lifecycle. As of September 30, 2024, it holds a diverse portfolio consisting of 353 properties across 34 states, which are primarily occupied by 37 national investment-grade tenants. The Essential Income REIT has elected to be treated as a real estate investment trust (REIT) for U.S. federal tax purposes. For further information, potential investors can visit the REIT's official website to learn more about its investment offerings and properties. ### Conclusion The impressive performance of ExchangeRight's Essential Income REIT as highlighted by Blue Vault serves as a testament to its responsible management and stable returns. However, past performances do not guarantee future results, and potential investors should remain vigilant and thorough when assessing the opportunities within this market.