Capital Square Housing Trust Fully Subscribes Preferred Stock Offering

RICHMOND, Va., June 26, 2025 /PRNewswire/ -- Capital Square Housing Trust, a real estate investment trust (REIT) sponsored by Capital Square, announced today that its offering of two million shares of Series 1 Redeemable & Convertible 9.0% Preferred Stock has been fully subscribed. The offering raised $24 million, with proceeds to be used to fund additional acquisitions and UPREIT transactions, in addition to general corporate purposes.

"The proceeds of this preferred stock offering will help fund approximately $200 million in UPREIT transactions," said Louis Rogers, founder and co-chief executive officer of Capital Square. "Capital Square sponsors Delaware statutory trust offerings for investors seeking tax deferral under Section 1031 and offers optional UPREIT transactions when the DST properties mature. Because the majority of DST owners elect the UPREIT option, a relatively small amount of proceeds from this offering will have a substantial impact on Capital Square Housing Trust."

Investors in the preferred stock offering receive a 9.0% annual dividend, paid monthly. Beginning on the fourth anniversary of the offering, the preferred stock may be converted to common stock with a 5% discount, resulting in a favorable price for investors.

Investors may also elect to participate in the Preferred Distribution Reinvestment Plan, or "DRIP," allowing them to reinvest monthly dividends into additional shares at the then-current offering price, free of fees or sales commissions.

"We appreciate the confidence of our Capital Square Housing Trust investors," said Whitson Huffman, co-chief executive officer and chief investment officer of Capital Square. "Our preferred shareholders not only enjoy a strong 9% annual dividend but also have the opportunity to convert their holdings at a 5% discount upon maturity, further enhancing the long-term value of their investment."

Capital Square Housing Trust's growing portfolio is currently comprised of five Class A and Class B multifamily communities with a combined gross asset value exceeding $212 million, based on aggregate purchase price. The company relies on an UPREIT acquisition strategy that affords investors in Capital Square's tax-advantaged DST investment programs the opportunity to exchange their DST interests for operating partnership units in the REIT through a similarly tax-advantaged process under Section 721 of the Internal Revenue Code. This strategy allows real estate owners to diversify and reduce risk by exchanging a single property for units in a REIT that owns a larger, diversified portfolio, while benefiting from tax-advantaged income and other advantages of REIT ownership.

About Capital Square Housing Trust
Capital Square Housing Trust is a real estate investment trust sponsored by Capital Square, a national real estate firm led by a seasoned team of real estate investment professionals with decades of experience. The REIT acquires and manages a range of housing solutions in Southeastern growth markets. To learn more, please visit www.CapitalSquareREIT.com.

About Capital Square
Capital Square is a vertically integrated, national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). The company is also an active developer and manager of multifamily communities. Since 2012, Capital Square has completed more than $7.9 billion in transaction volume. Capital Square's mixed-used development projects total over 2,000 apartment units with a total development value in excess of $800 million, and Capital Square Living, the firm's property management division, now manages over 13,000 apartments across multiple states. Capital Square's related entities provide a range of services – including due diligence, acquisition, loan sourcing, property/asset management and disposition – for a growing number of high-net-worth investors, private equity firms, family offices and institutional investors. The company has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for eight consecutive years. Learn more at CapitalSq.com.

Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Private placements are speculative. Diversification does not guarantee profits or protect against losses. FINRA Broker Check link: https://brokercheck.finra.org/.

SOURCE Capital Square Housing Trust