The Fortress-managed mortgage REIT raised $1.2 billion in cumulative share proceeds and funded all distributions from operating cash flows during fiscal 2025.

March 25, 2026

Rapid Growth in Year One

Fortress Credit Realty Income Trust, the privately placed perpetual-life mortgage REIT managed by an affiliate of Fortress Investment Group, reported significant growth during its first full fiscal year, expanding its investment portfolio to approximately $2.6 billion and raising $1.2 billion in cumulative share proceeds since inception. The Maryland-based trust, formed in June 2024 and operational since August of that year, disclosed these results in its annual report for the year ended December 31, 2025.

The trust focuses on senior floating-rate commercial real estate loans and diversified residential real estate assets, positioning itself at the senior end of the capital structure. As of year-end, Fortress Investment Group, the company’s sponsor, managed approximately $54 billion in assets globally.

Portfolio Composition and Growth

Commercial real estate loans represented the largest share of the portfolio at roughly $2.18 billion, or 82% of total fair value. Tax lien investments accounted for about $369 million (14%), while mortgage servicing rights and residential bridge loans made up the remaining 3% and 1%, respectively.

During the year, the company grew its CRE loan portfolio from 19 to 92 loans. The CRE portfolio carried a weighted average interest rate of SOFR plus 3.71% and a weighted average maximum maturity of approximately four years. Multifamily properties secured about 68% of CRE investments, followed by hospitality at 11%, retail at nearly 9%, industrial at 7%, and senior housing at about 5%. Geographically, the eastern United States accounted for roughly 38% of CRE investments, with the west and south contributing about 33% and 29%, respectively.

The tax lien portfolio spanned 13 states, with Florida representing the largest concentration at approximately $214 million in fair value. The trust also held an equity investment in a mortgage servicing rights portfolio representing approximately $5.6 billion in unpaid principal balance on residential mortgage loans, along with 64 residential bridge loans.

Financial Performance

Total revenues reached approximately $145.5 million for fiscal 2025, driven almost entirely by interest income, compared to $9.9 million in the prior stub period from formation through December 2024. Net income attributable to common shareholders was approximately $68.8 million, or $1.46 per share.

Total expenses rose to $27.7 million, reflecting growth-related costs. General and administrative expenses climbed to $18.1 million, while management fees of $8.4 million and performance participation allocations of roughly $1 million were recognized for the first time as fee waivers expired. Interest expense increased significantly to $53.1 million as the company drew on its expanding suite of financing facilities.

The trust declared net distributions totaling $70.9 million during 2025, all funded from operating cash flows. Approximately 60% of distributions were paid in cash, with the remaining 40% reinvested through the distribution reinvestment plan. Inception-to-date total returns ranged from approximately 3.6% for Class S shares to 9.1% for Class E shares, with Class B shares returning about 8.6%.

As previously reported, the trust also issued approximately 1.45 million shares in early March 2026 for roughly $29.2 million in gross proceeds and declared distributions across all eight share classes.

Capital Structure and Financing

The company substantially expanded its borrowing capacity during the year. As of December 31, 2025, total outstanding borrowings stood at approximately $1.69 billion across multiple repurchase facilities and a revolving credit facility, against a combined maximum facility size of $2.15 billion.

Key financing milestones during the year included expanding the Goldman Sachs repurchase facilities to an aggregate $1 billion, increasing the Atlas repurchase facility to $300 million, establishing a new $250 million Morgan Stanley repurchase facility, adding a $200 million Goldman Sachs-backed residential mortgage facility, and expanding the JPMorgan revolving credit facility to $400 million.

Subsequent to year-end, the Atlas facility was further increased to $450 million and the Morgan Stanley facility was doubled to $500 million. The company reported full compliance with all loan covenants as of year-end and through the filing date.

Share Activity and NAV

The trust had approximately 61.9 million common shares outstanding across eight active share classes as of December 31, 2025. NAV per share ranged from approximately $19.92 for Class J-2 shares to $20.15 for Class J-4 shares, with total net asset value at roughly $1.24 billion.

During fiscal 2025, approximately 50.4 million new shares were sold for about $1 billion in proceeds. Share repurchases were minimal at roughly 62,500 shares for $1.3 million, with no unfulfilled repurchase requests. Subsequent to year-end, an additional 4.3 million shares were issued for approximately $86.2 million. The company disclosed 3,210 total holders of record across share classes as of March 24, 2026.

Outlook and Recent Activity

The trust acknowledged ongoing macroeconomic headwinds including elevated inflation, interest rate uncertainty, geopolitical instability, and potential impacts from evolving U.S. trade and fiscal policy. The company noted that its floating-rate loan focus provides some inflation-mitigating characteristics but cautioned that market volatility, rising defaults, and liquidity constraints could adversely affect performance.

Since year-end, the company originated 15 additional CRE loans totaling approximately $339 million in loan amounts and received $74.3 million from the repayment of five CRE loans. The trust remains classified as an emerging growth company and has no employees, relying entirely on the Adviser and Fortress affiliates for management and operations.