PHOENIX--(BUSINESS WIRE)--Fundamental Income, a Phoenix-based net lease real estate platform, announces the Net Lease Corporate Real Estate ETF (NYSE Arca: NETL) has surpassed $100 million in assets under management. NETL is the first and only publicly traded ETF to define the net lease sector as a pure play. The fund tracks the Fundamental Income Net Lease Real Estate Index, calculated by NASDAQ, which is comprised of 25 publicly traded equity REITs totaling over $150 billion in market cap and collectively offers investors exposure to all 50 states, 26,000+ properties, 40+ industries, and more than 3,000 tenants.
NETL’s annualized NAV-since-inception total return is 30.23% with a 30-day SEC yield of 3.79%, as of June 30, 2021.
“Reaching this milestone shows investors are seeing the benefits and opportunity associated with net lease real estate in this lower-for-longer interest rate environment where risk-adjusted yield is in high demand,” said Alexi Panagiotakopoulos, Chief Investment Officer of Fundamental Income. “In addition to seeking a consistent total return, we structured the fund to pay monthly dividends, capitalizing on the unique nature of the net lease sector’s long-term contractual cash flows.”
With a growing client base, the firm continues to expand. “As a single-strategy specialist, we are committed to increasing our capabilities to better serve our clients and add value in a sector we truly understand,” said Matt Brudvik, who leads fund distribution.
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Inception Date: 3/21/19
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 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.
