Prospect Credit REIT Achieves 14.2% Annualized Year-to-Date Total Return Versus 8.7% for Peers
NEW YORK, Sept. 08, 2025 (GLOBE NEWSWIRE) -- For the six months ended June 30, 2025, 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”), has achieved an annualized total return of 14.16% to investors. Inception-to-date, PCRED has achieved an annualized total return of 13.01% to investors.1
PCRED’s total return performance has been higher than the performance of the Robert A. Stanger & Company, Inc. (“Stanger”) complete coverage universe of 14 privately traded net asset value ("NAV") REITs over the same period.
The NAV REITs tracked by Stanger are primarily equity-focused NAV REITs, which take lower-priority, common equity positions with a targeted focus more on capital appreciation than contractual income. By contrast, PCRED focuses on higher-priority and coupon-generating credit investments with a targeted, and typically less volatile, focus on cash yields plus contractual growth in NAV. Equity REITs generally have higher management and performance fees than credit REITs. Investors in PCRED’s private offering do not bear management or performance fees for the life of their investment.
For the six months ended June 30, 2025, PCRED has generated an 8.02% annualized return from cash flow and a 6.14% annualized return from NAV per share appreciation.
As of August 31, 2025, PCRED has declared 6 months of consecutive cash dividends at an annualized rate of 7.0% of NAV paid from operating cash flows from underlying investments.
To date, PCRED has invested in two Class A cash-flowing stabilized multifamily properties located in Scottsdale, AZ and Brooklyn, NY.
PCRED’s Scottsdale investment, Roadrunner on McDowell, is a highly amenitized 356-unit stabilized multifamily asset which Prospect views as a desirable market with strong population and job growth. Amenities include a resort-style pool, lap pool, two pet parks, a fully equipped gym, entertainment rooms, and an 11,000 square-foot co-working space. The property was 94.4% leased as of 8/25/2025.
PCRED’s Brooklyn investment, The Frederick, is another highly amenitized asset located in what Prospect views as one of New York City’s highest occupancy submarkets. The property is equipped with a 24-hour doorman, package room, tenant lounge, fitness/yoga center, roof deck with grilling stations, and covered/uncovered parking. The property was 97.4% leased as of 7/31/2025.
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 140 professionals and offer investment solutions across credit, private equity, and real estate. Prospect, together with its affiliates, has $7.5 billion of regulatory assets under management as of June 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 June 30, 2025, Prospect and its affiliates have invested in over 32,000 multifamily units with initial property value of $3.8 billion and have realized 36 multifamily investments.
Disclosures
The past performance of PCRED does not guarantee future results. 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.
All statements about the average NAV growth of privately traded REITs are based on data from Stanger’s Private Placement REITs & BDCs publication of August 22, 2025, and derived exclusively from the subset of NAV REITs that Stanger tracks therein. Other NAV REITs tracked by Stanger did not commence operations in December 2024, as PCRED did, and therefore entered the market at a time that may have been more or less favorable. There is no guarantee that PCRED objectives will be met or that PCRED will qualify as a REIT. The NAV REITs tracked by Stanger do not comprise the universe of NAV REITs; other NAV REITs not tracked by Stanger may have materially outperformed or underperformed the reporting data and/or PCRED.
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.
1 The performance data quoted herein represents past performance. Current performance may be lower or higher than the performance data quoted herein. Past performance is no guarantee of future results.
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