Fundamental Income Issues AAA Rated Debt
Fundamental Income Properties, a Phoenix-based net lease real estate company, has closed a $241.0 million long-term fixed-rate note issuance, designated as Fundamental Income Net-Lease Mortgage Notes, Series 2024-1. This marks the company's third note issuance under its FI Master Trust program and its first to achieve a 'AAA' rating from Standard & Poor's (S&P) on the senior class of notes.
The issuance comprises three classes of 5-year notes: $144.6 million of Class A-1 notes rated 'AAA', $72.3 million of Class A-2 notes rated 'AA', and $24.1 million of Class A-3 notes rated 'A'. Additionally, S&P upgraded $178.6 million of outstanding A-1 'AA' notes from the Series 2023-1 to 'AAA'.
This successful offering reflects investor confidence in Fundamental Income, which has acquired and financed over $1.6 billion of single-tenant properties across 43 states and 51 industries since 2020.
Fundamental Income Properties, una società di immobili a canone netto con sede a Phoenix, ha completato un'emissione di note a lungo termine a tasso fisso di $241,0 milioni, denominata Fundamental Income Net-Lease Mortgage Notes, Series 2024-1. Questo segna la terza emissione di note della società nell'ambito del suo programma FI Master Trust e la prima a ottenere un rating 'AAA' da Standard & Poor's (S&P) per la classe senior delle note.
L'emissione comprende tre classi di note a 5 anni: $144,6 milioni di note di Classe A-1 con rating 'AAA', $72,3 milioni di note di Classe A-2 con rating 'AA' e $24,1 milioni di note di Classe A-3 con rating 'A'. Inoltre, S&P ha aggiornato $178,6 milioni di note A-1 'AA' in sospeso della Serie 2023-1 a 'AAA'.
Questa offerta di successo riflette la fiducia degli investitori in Fundamental Income, che ha acquisito e finanziato oltre $1,6 miliardi di proprietà a inquilino singolo in 43 stati e 51 settori dal 2020.
Fundamental Income Properties, una empresa de bienes raíces de arrendamiento neto con sede en Phoenix, ha cerrado una emisión de notas a largo plazo a tasa fija de $241.0 millones, designada como Fundamental Income Net-Lease Mortgage Notes, Serie 2024-1. Esto marca la tercera emisión de notas de la compañía bajo su programa FI Master Trust y la primera en obtener una calificación 'AAA' de Standard & Poor's (S&P) en la clase senior de notas.
La emisión comprende tres clases de notas a 5 años: $144.6 millones de notas de Clase A-1 calificadas como 'AAA', $72.3 millones de notas de Clase A-2 calificadas como 'AA' y $24.1 millones de notas de Clase A-3 calificadas como 'A'. Además, S&P mejoró $178.6 millones de notas A-1 'AA' pendientes de la Serie 2023-1 a 'AAA'.
Esta oferta exitosa refleja la confianza de los inversores en Fundamental Income, que ha adquirido y financiado más de $1.6 mil millones de propiedades de inquilinos únicos en 43 estados y 51 industrias desde 2020.
파닉스에 본사를 둔 순 임대 부동산 회사인 펀더멘탈 인컴 프로퍼티스가 $241.0 백만의 장기 고정 금리 노트 발행을 완료했습니다. 이 발행은 펀더멘탈 인컴 넷 리스 모기지 노트 시리즈 2024-1로 명명되었습니다. 이는 회사의 세 번째 노트 발행이며, 구Senior class에서 스탠다드 앤드 푸어스(S&P)로부터 'AAA' 등급을 최초로 획득한 것입니다.
이번 발행은 5년 만기 노트의 세 가지 클래스으로 구성됩니다: $144.6 백만의 A-1 클래스 노트가 'AAA'등급을 받고, $72.3 백만의 A-2 클래스 노트가 'AA'등급을 받으며, $24.1 백만의 A-3 클래스 노트가 'A'등급을 받습니다. 또한 S&P는 $178.6 백만의 미지급 A-1 'AA' 노트를 시리즈 2023-1에서 'AAA'로 올렸습니다.
이번 성공적인 공모는 투자자들의 펀더멘탈 인컴에 대한 신뢰를 반영하며, 이 회사는 2020년 이후 43개 주와 51개 산업에 걸쳐 16억 달러 이상의 단일 세입자 부동산을 인수하고 자금을 조달했습니다.
Fundamental Income Properties, une société immobilière à bail net basée à Phoenix, a conclu une émission de billets à long terme à taux fixe de $241,0 millions, désignée sous le nom de Fundamental Income Net-Lease Mortgage Notes, Série 2024-1. Cela marque la troisième émission de billets de l'entreprise dans le cadre de son programme FI Master Trust et la première à obtenir une note 'AAA' de Standard & Poor's (S&P) pour la classe senior des billets.
L'émission comprend trois classes de billets de 5 ans : $144,6 millions de billets de Classe A-1 notés 'AAA', $72,3 millions de billets de Classe A-2 notés 'AA' et $24,1 millions de billets de Classe A-3 notés 'A'. De plus, S&P a amélioré $178,6 millions de billets A-1 'AA' en circulation de la Série 2023-1 à 'AAA'.
Cette offre réussie reflète la confiance des investisseurs dans Fundamental Income, qui a acquis et financé plus de $1,6 milliard de propriétés à locataire unique dans 43 États et 51 secteurs depuis 2020.
Fundamental Income Properties, ein in Phoenix ansässiges Unternehmen für Nettomietimmobilien, hat eine langfristige, festverzinsliche Note in Höhe von $241,0 Millionen ausgegeben, die als Fundamental Income Net-Lease Mortgage Notes, Serie 2024-1 bezeichnet wird. Dies stellt die dritte Notenausgabe des Unternehmens im Rahmen seines FI Master Trust-Programms dar und ist die erste, die eine 'AAA'-Bewertung von Standard & Poor's (S&P) für die Senior-Klasse der Noten erhält.
Die Ausgabe besteht aus drei Klassen von 5-Jahres-Noten: $144,6 Millionen von A-1 Noten mit der Bewertung 'AAA', $72,3 Millionen von A-2 Noten mit der Bewertung 'AA' und $24,1 Millionen von A-3 Noten mit der Bewertung 'A'. Darüber hinaus hat S&P $178,6 Millionen an ausstehenden A-1 'AA' Noten aus der Serie 2023-1 auf 'AAA' hochgestuft.
Dieses erfolgreiche Angebot spiegelt das Vertrauen der Investoren in Fundamental Income wider, die seit 2020 über $1,6 Milliarden an Einmietimmobilien in 43 Bundesstaaten und 51 Branchen erworben und finanziert haben.
- Secured $241.0 million in long-term fixed-rate notes
- Achieved 'AAA' rating from S&P for senior class of notes
- Upgraded $178.6 million of outstanding A-1 'AA' notes to 'AAA'
- Diversified investor base for the note issuance
- Expanded portfolio to over $1.6 billion in single-tenant properties
- None.
Insights
Fundamental Income's successful
Key points to consider:
- The diversification of the note classes (
$144.6 million AAA,$72.3 million AA and$24.1 million A-rated) allows for a balanced risk profile. - The upgrade of previously issued AA-rated notes to AAA further strengthens the company's financial position.
- This issuance enhances Fundamental Income's ability to provide efficient real estate capital to businesses, potentially driving growth and expanding their portfolio.
For investors, this development signals improved creditworthiness and potentially lower borrowing costs for Fundamental Income, which could translate to enhanced profitability and stability in the long term.
Fundamental Income's latest securitization is noteworthy in the net lease real estate sector. With a portfolio spanning 43 states and 51 industries, the company has demonstrated impressive diversification, which likely contributed to the AAA rating.
The structured debt financing vehicle, FI Master Trust, appears to be a successful innovation, now on its third issuance. This approach allows Fundamental Income to tap into institutional investor capital efficiently, potentially enabling faster portfolio growth compared to traditional financing methods.
The upgrade of previous notes and the new AAA rating could attract more conservative investors, potentially lowering the company's overall cost of capital. This advantage may allow Fundamental Income to be more competitive in acquiring new properties, potentially accelerating their growth in the net lease market.
Investors should monitor how Fundamental Income deploys this capital, as efficient use could lead to increased market share and improved returns in the competitive net lease real estate sector.
Closes
This is the third note issuance under Fundamental Income’s FI Master Trust program, its proprietary structured debt financing vehicle, and its first issuance to achieve a ‘AAA’ rating from Standard & Poor’s Ratings Services (S&P) on the senior class of notes. In addition to the new issuance, S&P also upgraded the outstanding A-1 Notes from FI Master Trust Net-Lease Mortgage Notes, Series 2023-1 from ‘AA’ to ‘AAA’ and affirmed the outstanding ratings for the Series 2023-1 A-2 Notes and the Series 2023-2 A-1 and A-2 Notes.
Chris Burbach, Chief Executive Officer of Fundamental Income, commented, “We are thrilled to announce the latest issuance from our FI Master Trust. Achieving the ‘AAA’ rating from S&P is a testament to the strength of both our team and portfolio and we are immensely proud of this accomplishment. The success of our offering further reflects the trust and confidence our investors have placed in us, and we are grateful for their continued support.”
The notes were issued to a diverse set of institutional investors in three classes of 5-year notes comprised of
In conjunction with the issuance, S&P also upgraded
“The ability to issue AAA rated debt allows us to better support operating businesses and business owners with efficient real estate capital along with the operational control and flexibility required in today’s business environment,” said Alexi Panagiotakopoulos, Chief Investment Officer of Fundamental Income.
The notes will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in
This press release does not constitute an offer to sell or the solicitation of any offer to buy the notes described herein nor shall there be any sale of the notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
ABOUT FUNDAMENTAL INCOME
Fundamental Income Properties is a
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Financial Profiles, Inc.
Moira Conlon
mconlon@finprofiles.com
310-622-8220
Source: Fundamental Income Properties
FAQ
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