Increased Dividend for Capital Square Apartment REIT
May 15, 2023 | Capital Square Apartment REIT
Capital Square Apartment REIT announced that its board of directors has authorized a daily distribution rate of $0.00138 per day per share on its outstanding common stock for the period commencing on April 1, 2023 and ending on June 30, 2023. Distributions payable to each stockholder of record during a month are payable in arrears the following month.
This is the second quarter in which the board of directors has authorized a daily distribution rate of $0.00138. Previously, the board of directors had authorized a daily distribution rate of $0.00137 per day per share, equal to an annualized rate of 5.0%, since the initial sale of shares in its private placement offering in April 2021. For investors who purchased shares pursuant to the early investor discount described in the “PLAN OF DISTRIBUTION” section of the private placement memorandum, the previous annualized distribution rate was 5.56%. To date, the company has paid 100% of distributions from cash flow from operations.1
“Actual in-place rents at Capital Square Apartment REIT’s Sapphire at Centerpointe property have increased by 17.2% since the second quarter of 2021,” said Louis J. Rogers, chief executive officer and chairman of the board. “With the recent addition of Saltmeadow Bay Apartments in the first DST/UPREIT transaction, we expect Capital Square Apartment REIT’s financial condition to be even stronger in the future as we grow the portfolio with well-performing, income producing multifamily properties.”
On March 30, 2023, Capital Square Apartment REIT acquired Saltmeadow Bay Apartments, a 229-unit Class A multifamily property in Virginia Beach, Virginia for a total purchase price of $72 million, which was structured as a tax-free UPREIT contribution under Section 721 of the Internal Revenue Code. The owners of over 85% of the DST interests in Saltmeadow Bay Apartments exchanged their DST interests for OP units in an UPREIT transaction.
About Capital Square Apartment REIT
Capital Square Apartment REIT Inc. is a real estate investment trust that buys and manages a mixture of Class A and Class B multifamily properties in the Southeast and Texas for both income and growth. The company is 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. 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). In recent years the company has become an active developer of mixed-use multifamily properties in the southeastern U.S., with eight current projects totaling approximately 2,000 apartment units with a total development cost in excess of $600 million. Since 2012, Capital Square has completed more than $7.5 billion in transaction volume. 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. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for six consecutive years. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense’s list of fastest growing companies. Additionally, Capital Square was listed by Virginia Business on their “Best Places to Work in Virginia” report in 2019 and their “Fantastic 50” reports in 2019 and 2020. In 2023, Capital Square was recognized by the Richmond Times-Dispatch as one of the region’s “Top Workplaces.” To learn more, visit www.CapitalSq.com.
1. Future distributions are at the sole discretion of the Capital Square Apartment REIT board of directors and are not guaranteed.
Disclaimer: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities.
Some of the statements in this release may contain forward-looking statements or statements of future expectations based on currently available information. Such statements are naturally subject to risks and uncertainties. Factors such as (i) future market conditions, (ii) our inability to generate sufficient cash flows due to unfavorable economic and market conditions, changes in supply and/or demand, competition, uninsured losses, changes in tax and housing laws, or other factors, and (iii) disease outbreaks and other public health events, such as the COVID-19 pandemic, and measures that are taken by federal, state, and local governmental authorities in response to such outbreaks and events may cause the actual events or results to be materially different from those anticipated by such statements. We do not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such statements. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. The forward-looking statements made herein speak only as of the date of this press release and we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
There are numerous risk factors associated with our offering. See the “Risk Factors” section in the private placement memorandum. These risks include, but are not limited to, the following: No public market currently exists for our Shares, and we have no current plans to list our Shares on a national securities exchange; We have limited prior operating history and financing sources, and the prior performance of real estate investment programs sponsored by our Sponsor and its affiliates may not be an indication of our future results; This is a “best efforts” offering and some or all of our Shares may not be sold; Because we are a “blind pool”, you will not have the opportunity to evaluate the investments we will make with the proceeds of our offering before you purchase our Shares; We established the offering prices of our Shares, including the early investor discounts, arbitrarily. These prices are unrelated to the book or net value of our assets or to our expected operating income; There is a dilutive effect to investors who purchase our Shares after the termination of any of our early investor discounts; We do not intend to conduct a net asset valuation (“NAV”) or provide an estimated NAV per share; We may return a portion of your capital if our Advisor is unable to quickly identify suitable properties or if such properties do not generate sufficient cash to make anticipated distributions; If we raise substantially less than the maximum offering, we may not be able to invest in a diversified portfolio of properties and your investment will be more susceptible to fluctuations in the values of specific properties; We have no employees and are dependent upon our Advisor, Property Manager and their affiliates; Our officers, directors, and the officers and employees of our Advisor and its affiliates may have substantial conflicts of interest because they also serve similar programs sponsored by our Sponsor; We will pay substantial fees and expenses to our Advisor and its affiliates, our Dealer Manager, and our Participating Dealers, which may increase the risk that you will not earn a profit on your investment; The income from any of our properties will be dependent on the ability of our Property Manager to successfully manage such properties; Our rental revenues will be significantly influenced by the conditions of the markets in which we operate and by demand for multifamily housing properties generally; If we do not qualify as a REIT, we will be treated as a corporation for federal income tax purposes; Our Advisor may face conflicts of interest relating to the purchase of properties, and such conflicts may not be resolved in our favor, which could adversely affect our investment opportunities; We may incur substantial debt, which could hinder our ability to pay distributions to our stockholders or could decrease the value of your investment; There are limits on the ownership, transferability and redemption of Shares. Private Placements are speculative.
