Capital Square Housing Trust Launches $20 Million Preferred Stock Offering

RICHMOND, Va., June 10, 2024 /PRNewswire/ -- Capital Square Housing Trust, a real estate investment trust sponsored by Capital Square, announced today the offering of up to two million shares of Series 1 Redeemable & Convertible 9.0% Preferred Stock at $10 per share available to accredited investors.

Capital Square Housing Trust seeks to raise $20 million, subject to an increase to $25 million, to fund acquisitions and UPREIT transactions, as well as for general corporate purposes.

"Capital Square is pleased with the results of two UPREIT transactions in which over 85% and 71% of investors elected to exchange their Delaware statutory trust (DST) interests for operating partnership units on a tax-advantaged basis under Section 721 of the Internal Revenue Code," said Louis Rogers, founder and co-chief executive officer of Capital Square. "UPREIT transactions allow real estate owners to diversify and reduce risk by exchanging their single property for operating partnership units in a REIT that owns a much larger portfolio along with many REIT benefits, including liquidity options. Future Capital Square Housing Trust UPREIT transactions will be funded with a portion of the proceeds of this preferred offering."

Investors in the preferred stock offering are projected to receive a 9.0% annual dividend, paid monthly.  Following the fourth anniversary of the offering, the preferred stock will be convertible by either the REIT or the shareholders at a discounted price of the lesser of 95% of the per share liquidation price, and 95% of the net asset value per share, if the REIT is calculating NAV at that time. This 5% discount on the price per share of REIT common stock results in a premium to holders upon conversion.

Investors in the preferred stock offering may also elect to purchase shares through the Preferred Distribution Reinvestment Plan, or "DRIP," rather than receive their monthly cash dividend payments. DRIP participants will acquire additional shares in the offering at the then current purchase price, free of any fees or sales commissions.

"Investors in the Capital Square Housing Trust preferred offering receive an outstanding 9% preferred return and a 5% discount in a future conversion to common stock, creating a powerful one-two punch," said Whitson Huffman, co-chief executive officer of Capital Square.

About Capital Square Housing Trust
Capital Square Housing Trust is a real estate investment trust sponsored by Capital Square, a national real estate firm that is led by a seasoned team of real estate investment professionals with decades of experience. Capital Square Housing Trust acquires and manages a range of housing solutions, including Class A and B multifamily as well as build-for-rent communities in growth markets to mitigate risks while providing long-term capital appreciation for our stakeholders. To learn more, please visit www.CapitalSquareREIT.com.

About Capital Square
Capital Square is a vertically integrated national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). The company is also an active developer and manager of multifamily communities. Since 2012, Capital Square has completed more than $7.8 billion in transaction volume. Capital Square's eight most recent mixed-used development projects total approximately 2,000 apartment units with a total development cost in excess of $590 million, and Capital Square Living, the firm's property management division, now manages over 7,000 apartments across multiple states. Capital Square's related entities provide a range of services – including due diligence, acquisition, loan sourcing, property/asset management and disposition – for a growing number of high-net-worth investors, private equity firms, family offices and institutional investors. Recognized by Inc. 5000 as one of the fastest growing companies in the nation for seven consecutive years, Capital Square raises capital, buildings and expectations. Learn more at CapitalSq.com.

Disclaimers
Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square Housing Trust is a tradename of Capital Square Apartment REIT, Inc. Capital Square Apartment REIT, Inc. and WealthForge Securities are not affiliated. Capital Square Apartment REIT, Inc. and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in private real estate investment trusts and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. This is not a solicitation or an offer to sell any securities. Please read the private placement memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. PPMs are speculative. FINRA Broker Check link: https://brokercheck.finra.org/.

SOURCE Capital Square Housing Trust

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