Expanding the Essential Income REIT’s Credit Facility further enhances ExchangeRight’s control over the REIT’s portfolio composition and financing strategy.

ExchangeRight, one of the nation’s leading providers of diversified real estate REIT and DST investments, has announced Renasant Bank’s $15 million commitment to ExchangeRight’s Essential Income REIT’s revolving line of credit, raising the REIT’s committed capacity for its Credit Facility from $135 million to $150 million. The credit has been provided by Wells Fargo, Fifth Third, and now Renasant Bank. This closing strategically expands the REIT’s credit access, adding to the previously announced increased Credit Facility with Fifth Third Bank for $35 million. The REIT’s Credit Facility may be increased up to $400 million in total credit, subject to receipt of commitments for the increased amount.

Expanding the Essential Income REIT’s Credit Facility with this commitment from Renasant 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 appreciate Renasant Bank’s confidence in the Essential Income REIT’s conservative investment strategy and proven track record,” said Joshua Ungerecht, a managing partner at ExchangeRight. “This Credit Facility expansion supports our ongoing efforts to acquire high-quality assets, broaden the REIT’s diversification, lock in lower rates when the time is right, and deliver long-term value for our 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, formed on January 11, 2019. The REIT is available to accredited investors only and 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 6.35% for its Class I shares, 6.10% for its Class D shares, 5.28% for its Class S shares, 5.97% for its Class A shares, and 6.00–6.38% monthly tax-efficient income 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 past performance of the REIT is no guarantee of future results. The Company, through its operating partnership, ExchangeRight Income Fund Operating Partnership, LP, owns 364 properties in 34 states (collectively, the “Trust Properties”) as of March 31, 2025. The Trust Properties are occupied by 39 different primarily national investment-grade necessity-based retail tenants and are additionally diversified by industry, geographic region, and lease term. “Investment-grade” applies to tenants whose long-term corporate debt rating is considered investment grade by Standard & Poor’s, Moody’s, and/or Fitch. An investment-grade rating is a rating that indicates that a corporate bond has a relatively lower risk of default than a corporate bond with a speculative grade. The Company has elected and is qualified to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes.

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This article originally appeared on BlueVault. For more information, please visit ExchangeRight's website.