FS Credit RE Income (FSREI) lowers monthly distributions
FS Credit Real Estate Income Trust, Inc. reported that its board, following the adviser’s recommendation, approved a reduction in the monthly distribution on its common stock starting with the distribution to holders of record on February 26, 2026. The February distribution, payable on February 27, 2026, will be $0.1479 per Class I share, $0.1415 per Class D and Class M share, $0.1300 per Class S and Class T share, $0.1736 per Class F share and $0.1739 per Class Y share.
Based on these February amounts and net asset values as of December 31, 2025, the annualized distribution rates are 7.42% for Class I, 6.89% for Class D, 6.87% for Class M, 6.28% for Class S, 6.34% for Class T, 8.27% for Class F and 8.73% for Class Y. The adviser and board plan to continue evaluating the distribution level in light of interest rates, leverage, capital flows and portfolio activity, and future distributions remain at the board’s discretion.
Positive
- None.
Negative
- Monthly distribution cut: Board-approved reduction in the common stock distribution, resetting annualized yields across share classes to approximately 6.28%–8.73% based on December 31, 2025 NAVs.
Insights
FS Credit REIT is cutting its monthly distribution and resetting yields by share class.
FS Credit Real Estate Income Trust, Inc. has approved a reduction in its monthly common stock distribution, effective for holders of record on February 26, 2026. The new February payments range from $0.1300 per share for Class S and Class T to $0.1739 for Class Y, with intermediate levels for other classes. This reflects management’s response to current and projected base rates, market spreads, leverage and capital flows.
Using net asset values as of December 31, 2025, the updated annualized distribution rates span from 6.28% for Class S to 8.73% for Class Y. That repricing suggests lower ongoing cash yields than previously implied, which many income-focused investors are likely to view as unfavorable. Actual future distributions will depend on interest rates, portfolio originations, paydowns and prepayments, as the board has emphasized that timing and amounts remain fully discretionary.
8-K Event Classification
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FAQ
What change did FS Credit Real Estate Income Trust (FSREI) make to its distributions?
The board of FS Credit Real Estate Income Trust, Inc., following the adviser’s recommendation, approved a reduction in the monthly distribution on its common stock, effective with the distribution to holders of record on February 26, 2026.
What are the new February 2026 monthly distribution amounts per share class for FSREI?
For the February 2026 distribution, the company will pay $0.1479 per Class I share, $0.1415 per Class D and Class M share, $0.1300 per Class S and Class T share, $0.1736 per Class F share and $0.1739 per Class Y share.
What are the updated annualized distribution rates by share class for FSREI?
Based on the February distribution and net asset values as of December 31, 2025, annualized distribution rates are 7.42% for Class I, 6.89% for Class D, 6.87% for Class M, 6.28% for Class S, 6.34% for Class T, 8.27% for Class F and 8.73% for Class Y.
When will the new FSREI distribution be paid and to whom?
The February distribution will be paid on February 27, 2026 to stockholders of record as of February 26, 2026.
Why did FS Credit Real Estate Income Trust adjust its distribution rate?
The adviser and board considered factors such as current and projected base rates, market spreads, portfolio leverage, capital inflows and the expected timing of new originations, paydowns and prepayments when deciding to reduce the distribution.
Are FSREI’s future distributions guaranteed at the new rates?
No. The company states that the timing and amount of distributions are at the discretion of the board of directors, and there can be no assurance regarding future distribution amounts.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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Item 8.01 Other Items.
Distribution Recommendation
At the recommendation of the adviser, the board of directors of FS Credit Real Estate Income Trust, Inc. (the “Company”) approved a reduction in the monthly distribution paid by the Company for the Company’s common stock commencing with the distribution to holders of record as of February 26, 2026. The advisor and the board of directors considered a range of factors in making this determination, including current and projected base rates, market spreads, portfolio leverage, the pace of capital inflows and the expected timing of potential new originations, paydowns and prepayments, among other considerations. The February distribution will be paid on February 27, 2026 to holders of record as of February 26, 2026, in the following amounts: $0.1479 for Class I shares, $0.1415 for Class D shares, $0.1415 for Class M shares, $0.1300 for Class S Shares, $0.1300 for Class T shares, $0.1736 for Class F shares and $0.1739 for Class Y shares. As a result, based on the February distribution and the respective net asset values as of December 31, 2025, the annualized distribution rate is 7.42% for Class I shares, 6.89% for Class D shares, 6.87% for Class M shares, 6.28% for Class S shares, 6.34% for Class T shares. 8.27% for Class F shares and 8.73% for Class Y shares. The adviser and the board of directors will continue to evaluate the Company’s distribution rate based on market conditions and the potential impact of interest rates on the portfolio. The timing and amount of distributions are at the discretion of the Company’s board of directors and, as such, no assurance can be made as to the amount of any future distributions.
Cautionary Note Regarding Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), regarding, among other things, our business, including, in particular, statements about our distributions, financings and the market for our investments. You can generally identify forward-looking statements by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue” or other similar words. These statements include our plans and objectives for future operations, including the payment of distributions, and are based on current expectations that involve numerous risks and uncertainties. Assumptions relating to these statements involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to accurately predict and many of which are beyond our control. Although we believe the assumptions underlying the forward-looking statements, and the forward-looking statements themselves, are reasonable, any of the assumptions could be inaccurate and, therefore, there can be no assurance that these forward-looking statements will prove to be accurate and our actual results, performance and achievements may be materially different from that expressed or implied by these forward-looking statements. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of this information should not be regarded as a representation by us or any other person that our objectives and plans, which we consider to be reasonable, will be achieved. We undertake no duty to update or revise forward-looking statements, except as required by law.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FS Credit Real Estate Income Trust, Inc. | ||
| Date: January 15, 2026 | By: | /s/Stephen S. Sypherd |
| Stephen S. Sypherd | ||
| Vice President, Treasurer & Secretary | ||