ExchangeRight Enhances REIT Access with Consolidated PPM and Class D Share Launch

PASADENA, Calif.--(BUSINESS WIRE)--ExchangeRight, one of the nation’s leading providers of diversified REIT and DST investments, has announced the launch of new Class D shares for its Essential Income REIT and the consolidation of its Class I, D, S, and A share classes in a single Private Placement Memorandum (PPM) along with the launch of a new consolidated webpage. These enhancements are designed to improve accessibility, streamline transactions, and expand availability across major custodial platforms.

In contrast to the Essential Income REIT’s Class I, D, S, and A share classes, which provide access to a quarterly redemption program, the REIT’s ER shares provide profit participation in addition to the underlying cash flow and growth potential of the REIT in exchange for a 5-year hold. Class ER shares will continue to have their own separate PPM and offering documents. Each updated PPM will also have only one set of subscription documents for their respective share classes for ease of reference and transaction processing.

The newly launched Class D shares are specifically designed for registered investment advisors and custodial platforms and offer one of the lowest fee structures in the industry. The Class D shares feature a current monthly net tax-efficient income of 6.10% annualized and will allow for a more streamlined transaction and ongoing investment tracking experience across custodial platforms.

The REIT’s Class I shares will continue to serve as the REIT’s institutional share class, but now with a new minimum investment amount of $25,000,000, geared toward larger institutional allocations intended to accelerate the REIT’s acquisition opportunities and aggregation strategy. This updated minimum will have no impact on current Class I investors.

“These enhancements represent our continued commitment to operational excellence and investor-centered offerings,” said Joshua Ungerecht, a managing partner at ExchangeRight. “With streamlined documentation and broader platform access, we’re excited to empower representatives and advisors to more easily connect investors with our historically recession-resilient net-leased real estate strategy.”

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% 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. The Company has elected and is qualified to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes. Please visit the REIT’s webpage to learn more. The past performance of the REIT and ExchangeRight does not guarantee future results.