Capital Square Housing Trust Announces Series 2 Preferred Stock Offering

Capital Square Housing Trust, a real estate investment trust (REIT) sponsored by Capital Square, has announced the offering of up to four million shares of its Series 2 Class A and Class I Redeemable and Convertible Preferred Stock at $10 per share, targeting accredited investors. The initiative seeks to raise $40 million, with a potential increase to $45 million, to finance acquisitions, UPREIT transactions, preferred stock redemptions, and other real estate-related investments alongside general corporate purposes.

Louis Rogers, founder and co-chief executive officer of Capital Square, highlighted the success of the Series 1 offering as the impetus for launching Series 2. The new offering includes Class A shares for broker-dealer sales and Class I shares for registered investment advisor sales, with projected annual dividends of 9.0% and 9.75%, respectively, paid monthly. Minimum investments are set at $10,000 for Class A and $5,000,000 for Class I investors.

After four years, the preferred stock can be converted by the REIT or shareholders at a discounted price, offering a 5% discount on common stock shares for those who choose to convert. Additionally, investors have the option to participate in the Preferred Distribution Reinvestment Plan (DRIP), allowing them to reinvest dividends into additional shares without fees or commissions.

Whitson Huffman, co-chief executive officer and chief investment officer of Capital Square, emphasized the offering's benefits, including attractive yields, monthly income, and growth participation through conversion, aligning with the REIT's strategic expansion and long-term portfolio development goals.