FS Credit Real Estate Income Trust–I

Share class: Class I shares are generally only available through registered investment advisors or for fee-based or institutional accounts.

NAV REIT

Investment objective

Generate an alternative source of income, preserve capital and realize long-term appreciation

Overview

FS Credit Real Estate Income Trust (FS Credit REIT) is a NAV REIT investing primarily in floating rate senior loans secured by commercial real estate properties.

Adviser

FS Real Estate Advisor, LLC
An affiliate of FS Investments

Sub-adviser

Rialto Capital Management, LLC


Fund information

Transaction price 1 (for 10/1/2019) $24.69
Distribution rate (at NAV) 2 (as of 8/31/2019) 6.56%


View Pricing Disclosure For Footnotes 12
1

The above share class information represents the transaction price for each share class of our common stock for subscriptions accepted as of the date listed above (and repurchases as of date one day prior to the date listed above). The transaction price presented is rounded to two decimal places.

The per share purchase (or repurchase) price is equal to the transaction price plus, for purchases of Class T shares, selling commissions of up to 3.0% and dealer manager fees of up to 0.5% of the transaction price, and, for purchases of Class S shares, selling commissions of up to 3.5% of the transaction price. Stockholders will not pay selling commissions or dealer manager fees on Class D, Class M or Class I shares. Class T, Class S, Class D and Class M shares are also subject to on-going stockholder servicing fees equal to 0.85%, 0.85%, 0.3% and 0.3% per annum of the aggregate NAV of such share class, respectively. Class I shares are not subject to stockholder servicing fees. See the prospectus for additional information.

2Reflects the current month’s distribution annualized and divided by the prior month’s net asset value, which is inclusive of all fees and expenses. For the six months ended June 30, 2019, 100% of FS Credit REIT’s distributions were funded through net investment income.

Performance – returns


STOCKHOLDER RETURNS 1 As of 8/31/2019 Annualized
Distribution Rate 2
QTD YTD 1 YR SINCE INCEPTION 1/5/2018 CUMULATIVE
TOTAL RETURN
since inception
Class I 6.56% 1.13% 4.57% 6.86% 5.84% 9.8%
Performance quoted is past performance and cannot guarantee future results. Current performance may be higher or lower. Returns less than one year are cumulative; all others are annualized. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
VIEW RETURNS DISCLOSURE Footnotes 12
1Stockholder returns are the total returns an investor received for the highlighted period taking into account all distributions paid during such period. The calculation is net of any ongoing stockholder servicing fees and assumes that the investor purchased shares at NAV or the transaction price (which generally equals the prior month’s NAV), as applicable, at the beginning of the applicable period and reinvested all cash distributions pursuant to FS Credit REIT’s distribution reinvestment plan ("DRP"). Valuation as of the end of each period is the transaction price pursuant to FS Credit REIT’s share repurchase program on such date.
2Reflects the current month’s distribution annualized and divided by the prior month’s net asset value, which is inclusive of all fees and expenses. For the six months ended June 30, 2019, 100% of FS Credit REIT’s distributions were funded through net investment income. The annualized distribution rate may be rounded.

Key facts

CUSIP 302950407
NAV 1 $24.69
Share class inception date 1/5/2018
Min. initial investment amount 2 $1 million
Sponsor commitment
(as of 3/31/2019) 3
$47.6 million
Distributions 4 Monthly
Tax reporting Form 1099-DIV
Share repurchase program 5 Monthly; no more than 2% or 5% quarterly of shares outstanding
View key facts disclosure for Footnotes 12345
1NAV is determined as of the last calendar day of each month by FS Real Estate Advisor in accordance with FS Credit REIT’s valuation guidelines. There is no rule, regulation or industry practice that requires the NAV be calculated in a certain way and, FS Credit REIT’s board of directors may adopt changes to the valuation guidelines.
2Any minimum initial investment requirement may be waived in FS Credit REIT’s sole discretion.
3The sponsor commitment represents the aggregate investments in the fund made by individuals and entities affiliated with FS Investments and Rialto Capital Management, LLC, including certain members of the fund’s board of directors. FS Investments and Rialto, individually and/or through affiliated individuals and entities, have collectively committed to investment at least $50 million in the fund.
4The payment of future distributions on FS Credit REIT’s shares is subject to the discretion of FS Credit REIT’s board of directors and applicable legal restrictions and, therefore, there can be no assurance as to the amount or timing of any such future distributions. Distributions may be paid from sources other than cash flow from operations.
5No secondary market is expected to develop for FS Credit REIT’s shares; however, on a monthly basis shareholders may request that all or a portion of their shares be repurchased through FS Credit REIT’s share repurchase program. Repurchases are limited to no more than 2% of FS Credit REIT’s NAV per month and no more than 5% of FS Credit REIT’s NAV per calendar quarter. FS Credit REIT’s board of directors may modify, suspend or terminate the share repurchase plan if it deems such action to be in our best interest and the best interest of stockholders. As a result, shares should be considered as having only limited liquidity and at times may be illiquid.
View risk factors disclosure

Investing in FS Credit REIT involves significant risk, including the risk of a substantial loss of investment. The following are some of the risks an investment in FS Credit REIT's common stock involves; however, you should carefully consider all of the information found in the section of FS Credit REIT’s prospectus entitled “Risk Factors” before deciding to invest in shares of FS Credit REIT’s common stock.

  • FS Credit REIT has a limited operating history and no established financing sources, other than the WF-1 Facility and the GS-1 Facility, and will rely on FS Real Estate Advisor to conduct its operations. FS Real Estate Advisor has a limited operating history and has limited experience operating a public company.
  • This is a “blind pool” offering. FS Credit REIT has only made limited investments to date and you will not have the opportunity to evaluate future investments before it makes them.
  • The purchase and repurchase price for shares of FS Credit REIT’s common stock is generally based on the prior month’s NAV (subject to material changes as described herein), and is not based on any public trading market. Because the valuation of investments is inherently subjective, the NAV may not accurately reflect the actual price at which its assets could be liquidated on any given day.
  • Since there is no public trading market for shares of FS Credit REIT’s common stock, repurchase of shares by FS Credit REIT will likely be the only way to dispose of your shares. FS Credit REIT’s share repurchase plan will provide stockholders with the opportunity to request that FS Credit REIT repurchases their shares on a monthly basis. However, FS Credit REIT is not obligated to repurchase any shares and may choose to repurchase only some, or even none, of the shares that have been requested to be repurchased in any particular month in its discretion. In addition, repurchases will be subject to available liquidity and other significant restrictions. Further, FS Credit REIT’s board of directors may modify, suspend or terminate the share repurchase plan if it deems such action to be in its best interest and the best interest of its stockholders. As a result, shares should be considered as having only limited liquidity and at times may be illiquid. Finally, FS Credit REIT is not obligated by its charter or otherwise to effect a liquidity event at any time.
  • FS Credit REIT cannot guarantee that it will make distributions, and if it does such distributions may come from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and we have no limits on the amounts we may pay from such sources. Funding distributions from sources other than cash flow from operations is likely to occur in early stages of the offering before proceeds from the offering are fully invested.
  • FS Credit REIT has no employees and is dependent on its adviser and the sub-adviser to conduct its operations. FS Credit REIT’s adviser and the sub-adviser will face conflicts of interest as a result of, among other things, the obligation to allocate investment opportunities among us and other investment vehicles, the allocation of time of their investment professionals and the substantial fees and expenses that it will pay to the adviser and its affiliates.
  • This is a “best efforts” offering. If FS Credit REIT is not able to raise a substantial amount of capital in the near term, its ability to achieve its investment objectives could be adversely affected.
  • There are limits on the ownership and transferability of FS Credit REIT’s shares. 
  • FS Credit REIT’s failure to qualify or remain qualified to be taxed as a REIT would adversely affect the NAV and the amount of cash available for distribution to stockholders.

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