NEW YORK, Nov. 20, 2025 (GLOBE NEWSWIRE) -- Prospect Credit REIT, LLC (“PCRED”), a non-traded real estate fund focused on real estate credit and managed by an affiliate of Prospect Capital Management L.P. (“Prospect”), announced today a 9% shareholder distribution rate per annum for October 2025 based on the most recent quarterly net asset value (“NAV”).
In addition to this 9% per annum shareholder distribution fully covered by taxable net income of 13% per annum, achieved with a combination of contractual cash and accrual coupon returns from property-level investments, PCRED NAV has increased by 3.4% since the fund commenced operations.
PCRED has generated a 13.75% annualized total return since operations commenced.
This increased distribution comes shortly after the successful completion of a third preferred equity investment by PCRED into a cash flowing multifamily asset.
Shareholder distributions to date have been fully covered by net income, and borrowers have made 100% of contractual payments.
For more information on Prospect Credit REIT, please call (888) 212-2032 or email: investorservices@pcredreit.com.
About Prospect Capital Management L.P. (“Prospect”)
Prospect is an SEC-registered investment adviser headquartered in New York City that, along with its predecessors and affiliates, has 38 years of experience investing in and managing debt and equity investments using both private partnerships and publicly traded closed-end structures. Prospect and its affiliates employ a team of over 150 professionals and offer investment opportunities across credit, private equity, and real estate. Prospect, together with its affiliates, has $7.3 billion of regulatory assets under management as of September 30, 2025.
Prospect and its affiliates’ real estate platform invests in U.S. commercial real estate including senior mortgages, subordinated loans, preferred and other equity investments. As of September 30, 2025, Prospect and its affiliates have invested in over 32,000 multifamily units with initial property value of $3.9 billion and have realized 38 multifamily investments.
Definitions
Net Asset Value – Value of fund that's determined by subtracting liabilities from assets. The market value of the REIT's investments subtracted by any liabilities it has.
Disclosures
Prospective investors should read the Confidential Private Placement Memorandum of PCRED in its entirety before making a decision to invest.
There is no guarantee that PCRED’s objectives will be met or that PCRED will qualify as a REIT.
The performance data quoted herein represents past performance. Current performance may be lower or higher than the performance data quoted herein. The past performance of PCRED does not guarantee future results. Distributions are not guaranteed and may be funded from sources other than cash flow from operations, including borrowings, offering proceeds, the sale of our assets and repayments of our real estate debt investments. We have no limits on the amounts we may fund from such sources.
An investor should carefully consider the fees and expenses and other information found in the Confidential Private Placement Memorandum (PPM), including the “Risk Factors” section, before making an investment decision.
These and other risks may impact PCRED’s financial condition, operating results, returns to investors, and ability to make distributions as stated in the PPM. This investment is for Accredited Investors only and a PPM can be provided to those Accredited Investors upon request. The Internal Revenue Code of 1986, as amended, imposes numerous constraints on the operations of REITs that do not apply to other investment vehicles. Failure to comply with certain constraints could have a material adverse impact on the Fund. For example, if we fail to qualify as a REIT and no relief provisions apply, our NAV and cash available for distribution to our stockholders could materially decrease.
Many competitors are not subject to the operating constraints associated with REIT compliance.
A number of factors may prevent each of the Fund’s investments from generating sufficient net cash flow or may adversely affect their value, or both. These factors include, but are not limited to, national economic conditions, regional and local economic conditions (which may be adversely impacted by plant closings, business layoffs, industry slow-downs, weather conditions, natural disasters, and other factors), local real estate conditions (such as over-supply of or insufficient demand), changing demographics, perceptions by prospective tenants of the convenience, services, safety, and attractiveness of a property, the ability of property managers to provide capable management and adequate maintenance, the quality of a property’s construction and design, increases in costs of maintenance, insurance, and operations (including energy costs and real estate taxes), changes in applicable laws or regulations (including tax laws, zoning laws, or building codes), potential environmental and other legal liabilities, potential instability, default or bankruptcy of tenants in the properties owned by PCRED, and the relative illiquidity of real estate investments in general.
PCRED has a limited operating history.
Ultimus Fund Distributors (Member FINRA/SIPC) is the Dealer Manager for Prospect Credit REIT.
