Fundamental Income Announces Securitization Closing of $328.9 Million

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Fundamental Income, a Phoenix-based net lease real estate company that has acquired and financed over $1.2 billion in single-tenant properties across 40 states and 39 industries since 2020, announced today the issuance of $328.9 million in long-term, fixed-rate notes dubbed Fundamental Income Net-Lease Mortgage Notes, Series 2023-1. Fundamental Income’s dedicated structured debt financing vehicle, FI Master Trust, has issued its first note. Brookfield Asset Management (NYSE: BAM), a global asset manager with approximately $800 billion in assets under management, made an initial equity commitment to Fundamental Income in April 2020.

The notes were issued in two classes in a private placement to premier institutional investors: $182.2 million of 5-year Class A-1 notes rated ‘AA’ by Standard & Poor’s Ratings Services (S&P) and $146.7 million of 5-year Class A-2 notes rated ‘A’ by S&P.

The notes will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and will not be offered or sold in the United States unless registered or exempt from registration requirements. The notes were offered and will be sold in the United States in accordance with Securities Act Rule 144A and outside the United States in accordance with Securities Act Regulation S.

Fundamental Income Properties is a net lease real estate company based in Phoenix that is backed by Brookfield Asset Management (NYSE: BAM). Fundamental Income Properties is a dedicated real estate capital partner to businesses and business owners across North America, providing accretive, predictable capital through sale leasebacks, build-to-suit financing, and 100 percent financing for expansion capital for established and growing operations.

The Company, led by seven investment partners with a combined transaction history of over 60 years and $16 billion, is focused on investing in single-tenant commercial properties net leased to middle-market businesses operating in a wide range of industries that directly or indirectly serve the US consumer.

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