U.S. markets closed
  • S&P 500

    +6.50 (+0.15%)
  • Dow 30

    +33.20 (+0.10%)
  • Nasdaq

    -4.50 (-0.03%)
  • Russell 2000

    -10.97 (-0.49%)
  • Crude Oil

    +0.65 (+0.89%)
  • Gold

    +0.80 (+0.05%)
  • Silver

    -0.26 (-1.16%)

    -0.0029 (-0.25%)
  • 10-Yr Bond

    +0.0500 (+3.55%)

    -0.0040 (-0.29%)

    +0.3840 (+0.35%)

    +580.33 (+1.36%)
  • CMC Crypto 200

    -35.86 (-3.25%)
  • FTSE 100

    -26.87 (-0.38%)
  • Nikkei 225

    +609.41 (+2.06%)

Monthly Cash Dividend Announced by Fundamental Income for the Only Net Lease Corporate Real Estate ETF (NYSE Arca: NETL)

  • Oops!
    Something went wrong.
    Please try again later.
·5 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Fundamental Income, a Phoenix-based net lease real estate platform, announces its NETLease Corporate Real Estate ETF, traded on the New York Stock Exchange Arca as NETL, will move from a quarterly dividend schedule to monthly. The Fund is expected to pay a monthly dividend of $0.09 per share with any additional accumulated dividends paid at year-end.

"We are excited to operate in a space which offers the opportunity for consistent absolute returns to investors. Increasing the dividend frequency of NETL is just another way we seek to add value from the long-term contractual cash flows provided by net lease real estate," said Alexi Panagiotakopoulos, Chief Investment Officer of Fundamental Income. "The triple net lease model has continued to provide consistent income that may not be available in other areas of real estate, credit and alternatives in today’s market."

As of 3/31/2021, NETL’s annualized NAV-since-inception is 8.36% with a 30-day SEC yield of 4.08%.

Inception Date: 3/22/19

Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Returns less than one year are not annualized. For current month end standard performance and expenses, visit https://www.netleaseetf.com/netl

Dividend Income is not guaranteed and is subject to change.

NETL, which tracks a NASDAQ calculated index, owns 25 public net lease REITs, traded on the NYSE or NASDAQ, which collectively own 26,364 properties throughout all 50 United States, with exposure to over 40 industries and over 3,000 tenants. As of 3/31/21, the average remaining lease term for tenants is 12.7 years, and the occupancy rate is 98.7%. Net lease REITs strive to offer risk-adjusted benefits to investors seeking income, an inflation hedge, and growth, and may be appropriate for those looking for real estate exposure or a total return equity strategy.

Net lease REITs are equity REITs that own properties leased to single tenants under long-term, net lease agreements which specify that, in addition to rent, the tenant is responsible for most, if not all, property expenses. The most common net lease is a "triple-net lease" which requires the tenant pay property taxes, insurance, and maintenance - the three nets in a lease agreement.

NETL is administered by U.S. Bank Global Fund Services and is distributed by Quasar Distributors, LLC.

About Fundamental Income

Led by seven investment partners with over 50 years and $15 billion of cumulative transaction history, Fundamental Income is a net lease platform, 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. Fundamental Income provides real estate capital solutions and sale-leasebacks to businesses and business owners with established and growing operations across the United States. In addition to founding the Net Lease Real Estate Index, the Company also raised $500 million of equity from a fund managed by Brookfield Asset Management (NYSE: BAM) to build a private, net lease platform.

For more information, please visit www.fundamentalincome.com

About the Fundamental Income Net Lease Real Estate Index (NETLXT)

NETLXT is a rules-based, passive index that, for the first time, defines and tracks the performance of the rapidly expanding Net Lease real estate sector in a diversified manner. The Index uniquely defines a sector not by the underling property types, e.g., industrial, retail, office, etc., but rather by the controlling legal document known as a "net lease," which can be used with any property type. The Index includes only equity REITs which derive the majority of their revenue from net leases, i.e., "Net Lease REITS." The Index also places important limitations on concentration in any one constituent or tenant which aims to create a diversified portfolio spanning multiple companies, investment teams, tenant industries, property types, geographic locations, and, most importantly, tenants. It is not possible to invest directly in an index.

Investments involve risk. Principal loss is possible. The fund may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The Index, and consequently the Fund, is expected to concentrate its investments in real estate companies. As a result, the value of the Fund’s shares may rise and fall more than the value of shares of a fund that invests in securities of companies in a broader range of industries.

Investments in real estate companies and REITs involve unique risks, including limited financial resources, they may trade less frequently and in limited volume, and they may be more volatile than other securities. In addition, securities in the real estate sector are subject to certain risks associated with direct ownership of real estate and the risk that the value of their underlying real estate may go down. Companies in the Net Lease Real Estate sector may be affected by unique factors related to leasing properties to single tenants including dependence on the financial performance of its tenants and lease terms related to rent escalations based on economic measurements. The fund may invest in foreign securities which involves political, economic and currency risks, differences in accounting methods and greater volatility. Investments in small and mid-sized companies have historically been subject to greater investment risk than large company stocks.

Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund’s prospectus, which may be obtained by visiting www.netleaseetf.com. Read the prospectus carefully before investing.

Quasar Distributors, LLC, distributor.

The 30-Day Yield represents net investment income earned by the Fund over the 30-Day period expressed as an annual percentage rate based on the Fund’s share price at the end of the 30-Day period.

NAV: The dollar value of a single share, based on the value of the underlying assets of the fund minus its liabilities, divided by the number of shares outstanding. Calculated at the end of each business day.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210506005947/en/


Fundamental Income Media Contact:
Alexi Panagiotakopoulos
Chief Investment Officer