Fundamental Income, index provider and sponsor of NETL - The Net Lease Corporate Real Estate ETF (NYSE arca: NETL), announces that New York-based real estate investment trust Broadstone Net Lease (NYSE: BNL) is being added to its proprietary index, calculated by Nasdaq, The Fundamental Income Net Lease Real Estate Index (NETLXT).
The Fundamental Income Net Lease Index, calculated by NASDAQ, defines and tracks the publicly traded Net Lease real estate sector, which has grown from 11 public REITs in 2008, to over 25 today, representing over $120 billion in cumulative market cap, 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.
“Net lease continues to be one of the fastest growing segments of the real estate market,” said Fundamental Income’s CIO, Alexi Panagiotakopoulos. “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 owning, contributing to the growth of the net lease index, and increasing demand for the strategy as investors hunt for risk-adjusted yield.”
This news comes in the wake of Broadstone’s recent IPO, a move that shows the continued growth in the net-lease sector as businesses across America turn to sale leaseback options to increase liquidity and expand operations more efficiently than if they owned and financed their 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.
Amongst other qualifications, a security must meet the following minimum criteria to be considered for the index by the index selection committee:
- Classified as a Net Lease Real Estate security as specified by Fundamental Income;
- Listed on The Nasdaq Stock Market, the New York Stock Exchange, NYSE American or the CBOE Exchange; and
- Minimum worldwide market capitalization of $200 million.
“While many real estate funds may contain Net Lease REITs as a smaller part of their holdings, the net lease index is a pure-play strategy,” said Panagiotakopoulos, “owning solely Net Lease REITs, allowing investors to target long-term contractual cash flows that track a consistent and common 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. In addition to founding the Net Lease Real Estate Index, the Company also raised $500 million of equity from a fund managed by Brookfield Asset Management (NYSE: BAM) to build a private, net lease platform.
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.