The Essential Income REIT Achieves 10.42% Tax-Equivalent Yield on 2025 Distributions

PASADENA, Calif.--(BUSINESS WIRE)--ExchangeRight, one of the nation’s leading providers of diversified real estate REIT and DST investments, is pleased to announce that the Essential Income REIT’s tax-equivalent yield on 2025 distributions was 10.42%, assuming an investment was made for the full year at the current net asset value (“NAV”) per share. Current and historical investor distributions and tax-equivalent yields presented are based on a 37% federal income tax rate, an 8% state income tax rate, and a 3.8% Medicare surtax.

The Essential Income REIT’s 2025 distributions to investors were reported as a 62.05% non-taxable return of capital for federal income tax purposes (1099-DIV), meaning that only 37.95% of the 2025 distributions that investors received from the Essential Income REIT were subject to federal or state income tax. The Section 199A deduction for REITs further decreased the federal income tax for 2025 by 7.59% of the taxable amount.

Based on the current NAV per share, the Essential Income REIT has provided stable distributions that have remained fully covered from operations, with tax-equivalent yields higher than 9.9% since the offering’s inception. The REIT continued to fully cover its distribution from operations with a 103.51% AFFO-to-Distribution Coverage Ratio inception-to-date through December 31, 2025.

Exact tax-equivalent yield will vary depending on an investor’s actual federal and state tax bracket and closing date. ExchangeRight does not provide legal or tax advice. Each investor should consult with their own tax advisor regarding their specific situation. Past performance does not guarantee future results.

About ExchangeRight

ExchangeRight and its affiliates’ vertically integrated platform features more than $7.2 billion in assets under management that are diversified across over 1,400 properties, and 28 million square feet throughout 47 states, as of February 28, 2026. ExchangeRight pursues its passion to empower people to be secure, free, and generous through its Essential Income REIT and 1031 DST portfolios that target secure capital, stable income, and strategic exits, all of which have historically met or exceeded investor projections since ExchangeRight’s inception. On behalf of investors nationwide, the company structures and manages net-leased portfolios of assets backed primarily by investment-grade corporations that have successfully operated in the necessity-based retail and healthcare industries. Past performance does not guarantee future results. Please visit www.exchangeright.com for more information.