Fundamental Income, Net Lease Fund Sponsor & Index Provider, Adds New REIT IPO to Index Fund

Nachrichtenquelle: Business Wire (engl.)
30.09.2020, 20:20  |  101   |   |   

Fundamental Income, index provider and sponsor of NETL - The Net Lease Corporate Real Estate ETF (NYSE arca: NETL), announces that Dallas-based real estate investment trust NETSREIT Corp. (NYSE: NTST) is being added to The Fundamental Income Net Lease Real Estate Index (NETLXT).

This news comes in the wake of NETSREIT’s recent initial public offering (IPO), a move that shows the continued growth in the net-lease sector as businesses across America are turning to sale leaseback options as a way to increase liquidity and expand operations more efficiently than if they owned the real estate themselves.

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.

“Net lease is one of the fastest growing segments of the real estate market,” said Fundamental Income’s CEO, Chris Burbach. “As businesses across the country recover from Covid-19, many are choosing to unlock static capital by selling and leasing their real estate back rather than simply owning, contributing to the growth of the net lease index.”

NETLXT, calculated by NASDAQ, defines and tracks the publicly traded Net Lease real estate sector, comprised of 24 companies publicly traded on the NYSE and NASDAQ. Fundamental Income is the Index Provider to the NETLease Corporate Real Estate ETF, (NYSEArca: NETL), launched by Exchange Traded Concepts.

In order for a security to be considered for the index by the index selection committee, the following must be true:

  • must be classified as a Net Lease Real Estate security as specified by Fundamental Income;
  • must be listed on The Nasdaq Stock Market, the New York Stock Exchange, NYSE American or the CBOE Exchange;
  • have a minimum worldwide market capitalization of $200 million;

While many REIT funds may contain Net Lease REITs as a part of their holdings, NETL is a pure-play in the Net Lease real estate sector, allowing investors the option to target a consistent and understandable business model.

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.

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.

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.

Investing involves risk; Principal loss is possible.

Quasar Distributors, LLC, distributor.



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