FS Credit Real Estate Income Trust Losses?

Soreide Law Group is currently investigating potential investor claims that may arise from sales practice violations by securities brokers and financial advisors. One investment product under review is FS Credit Real Estate Income Trust Inc., a non-traded real estate investment trust that has faced challenges in recent years. Investors should be aware that there is troubling information connected to this offering that could impact account values. The following sections outline key details that every investor should know.

What is FS Credit Real Estate Income Trust?

FS Credit Real Estate Income Trust, often referred to as FS Credit REIT, is sponsored by FS Investments. It is structured as a monthly NAV non-traded REIT and focuses its portfolio on floating-rate senior loans secured by commercial real estate assets. Unlike publicly traded REITs, FS Credit REIT does not trade on an exchange, and investors must rely on limited share repurchase programs if they wish to access liquidity. As of mid-2025, the trust reported net assets close to $3 billion with a per-share NAV of just over $24.

Concerns About FS Credit Real Estate Income Trust

It has been alleged that, despite its stated goals of providing income and diversification, FS Credit REIT has faced a number of investor concerns. Some observers have claimed that the trust has shown declines in net asset value during times of market stress. Reports have also suggested that, in recent months, investor requests for redemptions may have exceeded the program’s limits, which some see as a possible sign of liquidity strain. Because redemptions are reportedly capped at 2% of NAV monthly and 5% quarterly, it has been suggested that investors could face delays or restrictions when trying to withdraw funds.

Leadership developments have also drawn reported attention. In 2025, the company is said to have announced the resignation of its Chief Financial Officer and revisions to its executive stock unit program, which some commentators have described as reflecting internal transitions. When combined with what critics have pointed to as ongoing risks—such as alleged valuation concerns, relatively high fees, and exposure to downturns in commercial real estate—these developments have been characterized by some as indicating elevated risks for shareholders.

Potential Sales Practice Violations

Brokers and financial advisors have a duty to recommend only investments that are suitable for their clients and to fully disclose all associated risks. With products like FS Credit REIT, violations may include:

• Making recommendations without proper risk disclosure
• Placing investors into illiquid products inconsistent with their financial needs
• Misrepresenting the safety or performance expectations of the investment

If such violations occurred, investors may have legal rights to seek recovery through FINRA arbitration or other dispute resolution processes.

Did You Sustain Losses By Investing in FS Credit Real Estate Income Trust?

Did you suffer losses from an investment in FS Credit Real Estate Income Trust Inc. due to the actions of your broker or advisor? If so, contact Soreide Law Group online or by phone at (888) 760-6552 to speak with a securities attorney about your options for recovery. Soreide Law Group has successfully represented investors nationwide, works on a contingency fee basis, and advances all case costs.

If you are concerned about your FS Credit REIT investment, consider speaking with an attorney now to protect your rights.