ExchangeRight’s Pasadena-Based REIT Sweeps Blue Vault’s Top Third Quarter Ratings

ExchangeRight’s Essential Income REIT, headquartered in Pasadena, “has achieved a top-tier sweep in Blue Vault’s Q3 Non-Traded REIT Industry Review (Tuesday, January 27, 2026),” the company announced.

The REIT “was one of only two Growth and Stabilizing Non-Traded equity REITS (‘NTRs’) to earn the highest rating possible across all three Performance Profiles: Operating Performance, Financing Outlook, and Cumulative MFFO.” The Essential Income REIT also reported “an increase in NAV per share to $27.30 in Q3.”

“In Q3, the Essential Income REIT was also one of only three NTRs to fully cover its distributions with Adjusted Funds from Operations (‘AFFO’) or Modified Funds from Operations (‘MFFO’). This represents the REIT’s ability to fully fund its cash distributions solely from its operations rather than from investor equity or financing.” As of Sept. 30, “the Essential Income REIT’s inception-to-date AFFO to distribution coverage was 103.74%.”

The REIT was also “one of only three NTRs that received the highest Financing Outlook rating in Q3.” Blue Vault’s criteria require “an interest coverage ratio over 2.0x and… less than 20% of its debt needing to be refinanced.” ExchangeRight reported “an interest coverage ratio of 2.3x, well exceeding the 2.0x benchmark, signifying its ability to cover its financing costs with a strong margin, in order to protect investors’ income and capital.”

“Additionally, the REIT recorded one of the five lowest redemption rates in Q3, with redemptions totaling 1.34% of weighted average shares outstanding. In contrast, the other 14 NTRs averaged 2.58%, nearly double the rate experienced by the Essential Income REIT, according to Blue Vault’s report.”

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 Company, through its operating partnership, ExchangeRight Income Fund Operating Partnership, LP, owns 361 properties in 35 states (collectively, the ‘Trust Properties’) as of September 30. 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.”

Blue Vault’s comparative claims are based on “its Q3 Non-traded REIT Industry Review, Non-Traded REIT Fee Study (4th ed.), pp. 53-106.” ExchangeRight noted in its release that “the past performance of the REIT does not guarantee future results.”