Fundamental Income Announces Closing of Upsized $314.9 Million Securitization to Fund Continued Growth of $1.5 Billion Net Lease Portfolio

Rhea-AI Summary

Fundamental Income Properties has announced the issuance of $314.9 million of long-term, fixed-rate notes designated as Fundamental Income Net-Lease Mortgage Notes, Series 2023-2. This is the second issuance under Fundamental Income’s dedicated structured debt vehicle, FI Master Trust. The notes were issued in a private placement to a diverse set of institutional investors in two classes.

Successful financing transaction underscores quality of portfolio, durable pipeline and strong institutional investor demand for single-tenant, net lease real estate

PHOENIX--(BUSINESS WIRE)-- Fundamental Income Properties (“Fundamental Income” or the “Company”), a Phoenix-based net lease investment firm that has acquired and financed approximately $1.5 billion of single-tenant properties across 43 states and 44 industries since 2020, today announced the issuance of $314.9 million of long-term, fixed-rate notes designated as Fundamental Income Net-Lease Mortgage Notes, Series 2023-2. This is the second issuance under Fundamental Income’s dedicated structured debt vehicle, FI Master Trust. The Company launched the vehicle with a $328.9 million inaugural issuance in March of this year.

The notes were issued in a private placement to a diverse set of institutional investors in two classes comprised of $247.4 million of 5-year Class A-1 notes rated ‘AA’ by Standard & Poor’s Ratings Services (S&P) and $67.5 million of 5-year Class A-2 notes rated ‘A’ by S&P.

“We are excited to announce the successful execution of the second note issuance under our FI Master Trust securitization program. The capital raised in this transaction, which was upsized due to strong institutional investor demand, allows us to continue supporting middle-market businesses at a time when both the availability and cost of other forms of capital are challenging,” said Chris Burbach, Chief Executive Officer of Fundamental Income. “The ability to access capital in an efficient and repeatable manner is a key differentiator for our firm in this market and a testament to the quality of our team and the portfolio we have created.”

“As traditional financing sources have continued to dry up, a substantial void has been left in the marketplace at a time when operators need cash the most,” said Alexi Panagiotakopoulos, Chief Investment Officer of Fundamental Income. “Against this backdrop, sale leaseback financing is an especially compelling alternative for business owners looking to unlock the value of their static real estate holdings to efficiently finance their businesses. We continue to see very strong demand from companies across a variety of industries, and we are well-positioned to fulfill our mission of providing business owners across North America with a reliable and accretive source of capital to grow and transform their businesses.”

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 the United States absent registration or an applicable exemption from the registration requirements. The notes were offered and will be sold in the United States in accordance with Rule 144A under the Securities Act and outside the United States in accordance with Regulation S under the Securities Act.

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 Phoenix-based net lease real estate company backed by Brookfield Corporation (NYSE: BN), an $850 billion global asset manager. Fundamental Income Properties serves as a dedicated real estate capital partner to businesses and business owners across North America providing companies with accretive, predictable capital through sale leasebacks, build-to-suit financing and 100 percent financing for expansion capital for operating companies with established and growing operations. Led by seven investment partners with over 100 years and $16 billion of cumulative transaction history, the Company is focused on investing in single-tenant commercial properties, net leased to middle-market businesses operating in a wide variety of industries that directly or indirectly serve the US consumer. For more information, please visit www.fundamentalincome.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231101470079/en/

Financial Profiles, Inc.

Juanita Gutierrez

jgutierrez@finprofiles.com

310-622-8235

Moira Conlon

mconlon@finprofiles.com

310-478-2700

Source: Fundamental Income Properties

FAQ

What is the name of the company that issued the notes?

The company that issued the notes is Fundamental Income Properties.

What is the total value of the notes issued?

The total value of the notes issued is $314.9 million.

What is the name of the structured debt vehicle used for the issuance?

The structured debt vehicle used for the issuance is FI Master Trust.

Who were the investors in the private placement?

The private placement was made to a diverse set of institutional investors.

What are the ratings of the Class A-1 and Class A-2 notes?

The Class A-1 notes are rated 'AA' by Standard & Poor's Ratings Services, and the Class A-2 notes are rated 'A' by S&P.

Are the notes registered under the Securities Act?

No, the notes will not be registered under the Securities Act of 1933.