Cantor Fitzgerald Income Trust, Inc. Reports Quarterly Results for the Period Ended March 31, 2024

Overview

Cantor Fitzgerald Income Trust, Inc. (the “Company”) is a Maryland corporation that has elected and qualified to be taxed as a real estate investment trust (REIT) for U.S. federal income tax purposes. The Company is externally managed by Cantor Fitzgerald Investment Advisors, L.P. (the “Advisor”), a Delaware limited liability company and wholly owned subsidiary of the Company’s sponsor, Cantor Fitzgerald, L.P. (“CFI”).

The Company was incorporated in 2016 and initially focused on acquiring single-tenant net leased commercial properties located in the United States, United Kingdom and other European countries. In 2020, the Company expanded its investment strategy to include a diversified portfolio of income-producing commercial real estate, multifamily properties, and debt secured by commercial real estate located primarily in the United States.

As of March 31, 2024, the Company had made investments in 19 real properties and a plot of land across various property types and geographic regions. The portfolio includes retail, office, flex industrial, multifamily, and life sciences properties. The Company has also invested in preferred equity, mezzanine debt, and commercial mortgage-backed securities.

Revenue and Profit Trends

For the three months ended March 31, 2024, the Company generated:

• Rental revenues of $18.0 million, up from $17.0 million in the prior year period, due to the acquisition of new income-producing properties.
• Preferred return income of $0.2 million, up from $0.2 million in the prior year period, due to an increase in the rate of return on the Company’s preferred equity investment.
• Income from mezzanine loan investment of $0.3 million, up from $0.3 million in the prior year period, due to an increase in the interest rate on the Company’s mezzanine loan.
• Net gain from investment in debt securities of $1.4 million, compared to $0 in the prior year period, due to the Company’s investment in commercial mortgage-backed securities.

The Company reported a net loss of $1.3 million for the three months ended March 31, 2024, compared to a net loss of $6.6 million in the prior year period. This improvement was primarily due to higher rental revenues, preferred return income, and gains on debt securities, partially offset by higher interest expense and property operating expenses.

Strengths and Weaknesses

Strengths:

• Diversified portfolio of income-producing commercial real estate, multifamily properties, and debt investments
• Experienced external manager with access to Cantor Fitzgerald’s resources and deal pipeline
• Conservative leverage profile with debt-to-tangible assets ratio of 52% as of March 31, 2024
• Steady growth in rental revenues, preferred return income, and gains on debt investments

Weaknesses:

• Reliance on external management and potential conflicts of interest with the Advisor and its affiliates
• Exposure to market and economic conditions affecting the commercial real estate and debt markets
• Concentration risk in certain property types, geographic regions, and tenants
• Inability to fully control operating expenses, which are subject to the 2%/25% guidelines

Outlook

The Company’s future performance will depend on its ability to continue growing its diversified portfolio of income-producing real estate and debt investments, while managing operating expenses and leverage levels. The commercial real estate and debt markets remain subject to economic and market uncertainties, which could impact the Company’s ability to source attractive investment opportunities and maintain high occupancy and rental rates.

The Company’s non-traded REIT structure and external management model also present ongoing challenges in terms of aligning the interests of shareholders and the Advisor. Careful oversight by the board of directors and adherence to the Company’s investment and operational policies will be critical to navigating these issues.

Overall, the Company appears to be making progress in executing its diversified investment strategy and generating stable cash flows, but it will need to continue to adapt to market conditions and manage its risks effectively to deliver long-term value for shareholders.