Prospect Credit REIT Outperforms Stanger Composite Net Asset Value REIT Index in 2025 with 13.14% Annualized Total Return and 9.00% Annualized Distribution Rate
NEW YORK, Feb. 13, 2026 (GLOBE NEWSWIRE) -- Since closing its first investment on February 6, 2025, through December 31, 2025, Prospect Credit REIT, LLC ("PCRED"), a non-traded real estate credit fund, achieved an annualized total return of 13.14% to investors.
PCRED's annualized return outperformed the 1-year annualized return of the Robert A. Stanger ("Stanger") Composite NAV REIT Index by 2.01x. The Stanger tracked index, which includes 33 non-traded net asset value real estate investment trusts ("NAV REITs"), returned 6.50% in 2025. Total return is calculated based on total distributions paid to investors for the period plus the change in net asset value attributable to investment operations, divided by ending net asset value and less fees.
As of January 2026, PCRED's current shareholder distribution rate is 9.00% per annum based on the most recent quarterly net asset value ("NAV"). PCRED has now since inception declared eleven months of consecutive shareholder distributions fully covered by net investment income achieved from its investments.
Investors in PCRED's current limited availability private offering do not bear management or performance fees for the life of their investment.
| Commencement Date | 1 - Year (Annualized) | 3 - Year (Annualized) | 5 - Year (Annualized) | Since Inception (Annualized) | |
| PCRED | 2/6/2025 | 13.14% | -- | -- | 13.14% |
| Stanger Composite NAV REIT Index | 12/31/2015 | 6.50% | 1.90% | 7.20% | 7.06% |
The NAV REITs tracked by Stanger are primarily equity-focused NAV REITs, which take first-loss common equity positions generally seeking returns with a greater emphasis on potential capital appreciation than on contractual income. By contrast, PCRED focuses on higher-priority, less-volatile credit investments with returns driven primarily by income from current and contractual coupons.
PCRED may have a shorter operating history than and differ in its fee and expense arrangements from some of the NAV REITs tracked by Stanger. Credit NAV REITs like PCRED also generally have lower management and performance fees than equity NAV REITs.
For more information on Prospect Credit REIT, please call (888) 212-2032 or email: [email protected].
About Prospect Capital Management L.P. ("Prospect")
PCRED is managed by Prospect Credit REIT Advisor, LLC, which is led by a team of investment professionals from 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 is the investment adviser to Prospect Capital Corporation (NASDAQ:PSEC). For more information, call (212) 448-0702 or visit https://www.prospectcap.com.
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 December 31, 2025, Prospect and its affiliates have invested in over 32,000 multifamily units with initial property value of $3.9 billion and have realized 39 multifamily investments.
Disclosures
Total return is calculated based on total distributions paid to investors for the period plus the change in net asset value attributable to investment operations, divided by net asset value attributable to new investor subscriptions. Past performance is not indicative of future returns, and returns are not guaranteed.
Distribution rates are calculated by dividing total cash distributions to investors on a per share basis by the current net asset value per share. Distributions paid to date have all been covered by Net Investment Income. Past performance is not indicative of future returns, and distributions are not guaranteed.
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 non-traded REITs are based on data from Stanger's Non-Listed REIT + Other Alts publication on February 3, 2025. The data presented comes exclusively from the subset of NAV REITs that Stanger tracks therein and through the Stanger Composite NAV REIT Total Return Index. Stanger tracks "Private Placement REITs" that have indicated intent (by filing a Form D or otherwise) to engage in a private offering of securities under Rule 506 or another available exemption under the Securities Act of 1933. Stanger also tracks SEC registered REITs that are not listed on an exchange. These are tracked through Form D filings, Form 10 filings, other public filings with regulatory authorities, and public-facing websites of the issuer or sponsor. The Stanger Composite NAV REIT Total Return Index is composed of 33 of such REITs as of Q4 2025.
Other NAV REITs tracked by Stanger did not commence investment in February of 2025, 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 entire 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.
Investing in the Fund during a private placement is speculative and involves a high degree of risk, including the risk that you may receive little or no return on your investment or that you may lose part or all of your investment. A private placement has a relative lack of liquidity and is suitable only for persons of substantial financial means who have no need for liquidity. There can be no assurance that PCRED's investment objectives will be met. An investor should carefully consider the fees and expenses, and other information found in the PPM, including the "Risk Factors" section, before making an investment decision.
Ultimus Fund Distributors LLC (Member FINRA/SIPC) is the Dealer Manager for Prospect Credit REIT, LLC. Ultimus Fund Distributors LLC is not associated with Prospect Capital Management L.P.
