424B3 1 d95437d424b3.htm 424B3 424B3

Filed Pursuant to Rule 424(b)(3)
Registration No. 333-237327

CANTOR FITZGERALD INCOME TRUST, INC.

SUPPLEMENT NO. 1 DATED AUGUST 17, 2020

TO THE PROSPECTUS DATED AUGUST 10, 2020

This Supplement No. 1 supplements, and should be read in conjunction with, our prospectus dated August 10, 2020. Defined terms used in this Supplement shall have the meaning given to them in the prospectus unless the context otherwise requires. The purposes of this Supplement are as follows:

 

   

to update the transaction price for each class of our common stock as of September 1, 2020;

 

   

to disclose the calculation of our July 31, 2020 net asset value (“NAV”) per share, as determined in accordance with our valuation procedures, for each of our share classes;

 

   

to update information regarding our investments;

 

   

to otherwise update the prospectus; and

 

   

to include our Quarterly Report on the Form 10-Q for the quarter ended June 30, 2020.

September 1, 2020 Transaction Price

The transaction price for each share class of our common stock for subscriptions accepted as of September 1, 2020 (and repurchases as of August 31, 2020) is as follows:

 

     Transaction Price
(per share)
 

Class S

   $ 23.66  

Class I

   $ 23.66  

Class T

   $ 23.66  

Class D

   $ 23.66  

 

   

As we did not have any Class S, Class I, Class T or Class D shares outstanding as of July 31, 2020, the September 1 transaction price for each of our Class S, Class I, Class T and Class D shares is equal to our NAV per share for Class AX and Class IX shares as of July 31, 2020. A detailed calculation of the NAV per share is set forth below. The purchase price of our common stock for each share class equals the transaction price of such class, plus applicable upfront selling commissions and dealer manager fees. The repurchase price for each share class equals the transaction price of such class.

July 31, 2020 NAV per Share

We calculate NAV per share in accordance with the valuation guidelines that have been approved by our board of directors. Our NAV per share, which is updated as of the last calendar day of each month, is posted on our website at www.cfincometrust.com and is made available on our toll-free, automated telephone line at 855-9-CANTOR. Please refer to “Net Asset Value Calculation and Valuation Guidelines” in the prospectus for how our NAV is determined. We have engaged Robert A. Stanger & Co., Inc. (“Stanger”) to serve as our independent valuation firm. Our advisor is ultimately responsible for determining our NAV.

As of July 31, 2020, we owned the following investments:

 

   

A retail property located in Grand Rapids, Michigan (the “GR Property”).

 

   

An office property located in Fort Mill, South Carolina (the “FM Property”).

 

   

An office property located in Columbus, Ohio (the “CO Property”).

 

   

A flex industrial property located in Lewisville, TX (the “Lewisville Property”).

 

   

A Delaware Statutory Trust, CF Net Lease Portfolio IV DST (the “DST”), which owns seven properties (individually, a “DST Property”, and collectively, the “DST Properties”).


   

CF Albertsons Lancaster, LLC (the “Pennsylvania SPE”), which made a preferred equity investment (the “Lancaster PE”) through a joint venture agreement pursuant to which an interest in a cold storage and warehouse distribution facility located in Denver, Pennsylvania is held.

 

   

CF Albertsons Chicago, LLC (the “Illinois SPE”), which owns a fixed rate, subordinate mezzanine loan (the “Chicago Jr Mezz”) backed by an interest in a cold storage and warehouse distribution facility located in Melrose Park, Illinois.

 

   

A majority interest in an office property located in San Francisco, California (the “SF Property”) through a joint venture with an unrelated third party (the “Battery Street SF JV”).

 

   

An industrial property located in Phoenix, Arizona (the “Buchanan Property”).

The following table provides a breakdown of the major components of our NAV:

 

Components of NAV

   July 31, 2020      June 30, 2020  

Investment in real estate

   $ 178,120,000      $ 178,120,000  

Investments in real estate-related assets

     23,672,240        23,661,895  

Cash and cash equivalents(1)

     36,312,466        33,193,408  

Other assets

     1,436,164        982,456  

Debt obligations

     (87,569,313      (87,391,203

Due to related parties(2)

     (435,994      (429,103

Accounts payable and other liabilities

     (2,047,462      (2,536,960

Distribution fee payable the following month(3)

     (25,159      (24,194

Non-controlling interests in subsidiaries

     (3,154,921      (3,143,307

Sponsor Support repayment / special unit holder interest in Liquidation

     —          —    
  

 

 

    

 

 

 

Net Asset Value

     146,308,021        142,432,992  
  

 

 

    

 

 

 

Number of outstanding shares

     6,185,390        6,003,176  
  

 

 

    

 

 

 

 

Note:

(1) Net of a reserve of $160,000 for anticipated near-term capital needs at our SF Property that was not deducted in its appraised value.

(2) Excluding $540,579 due to our advisor for reimbursement of organization and offering costs ($608,151 less the current liability due of $67,572).

(3) Distribution fee only relates to Class TX shares of common stock.

 

July 31, 2020 NAV Per Share

   Class AX
Shares
     Class TX
Shares
     Class IX
Shares
     Total  

Total Gross Assets at Fair Value

   $ 135,411,294      $ 57,203,942      $ 46,925,634      $ 239,540,870  

Distribution fees due and payable

     —          (25,159      —          (25,159

Debt obligations

     (49,502,508      (20,912,131      (17,154,674      (87,569,313

Due to related parties

     (246,465      (104,118      (85,411      (435,994

Accounts payable and other liabilities

     (1,157,420      (488,948      (401,094      (2,047,462

Non-controlling interests in subsidiaries

     (1,783,462      (753,416      (618,043      (3,154,921
  

 

 

    

 

 

    

 

 

    

 

 

 

Quarterly NAV

   $ 82,721,439      $ 34,920,170      $ 28,666,412      $ 146,308,021  

Number of outstanding shares

     3,496,571        1,477,112        1,211,707        6,185,390  
  

 

 

    

 

 

    

 

 

    

NAV per share

   $ 23.66      $ 23.64      $ 23.66     
  

 

 

    

 

 

    

 

 

    


The following table reconciles stockholders’ equity per our unaudited consolidated balance sheet to our NAV:

 

Reconciliation of Stockholders’ Equity to NAV

   July 31, 2020  

Stockholders’ equity under U.S. GAAP

   $ 144,560,976  

Adjustments:

  

Unrealized depreciation of real estate

     (670,153

Unrealized depreciation of real estate-related assets

     (727,760

Organization and offering costs

     540,579  

Acquisition costs

     (1,179,154

Deferred financing costs, net

     (796,838

Accrued distribution fee(1)

     851,408  

Accumulated depreciation and amortization

     9,061,622  

Fair value adjustment of debt obligations

     (3,424,129

Deferred rent receivable

     (1,560,530

Deferred maintenance

     (160,000

Non-controlling interests in subsidiaries

     (188,000
  

 

 

 

NAV

   $ 146,308,021  
  

 

 

 

 

Note:

(1) Accrued distribution fee only relates to Class TX shares of common stock.

Summary of Methodology

In accordance with our current valuation procedures, our NAV was based in part upon: (i) the most recent appraised value of the GR Property, the FM Property, the CO Property, the Lewisville Property, the DST Properties, the SF Property and the Buchanan Property; (ii) the fair market value of our Debt Investments (as defined below); (iii) the fair market value of our loans payable; (iv) the estimated non-controlling interest held in our consolidated Battery Street SF JV; and (v) the net tangible assets and liabilities of the Company as of July 31, 2020, as outlined in more detail below.

Appraisal of Consolidated Real Estate

Pursuant to our valuation guidelines we engaged Stanger to provide its appraised market value of the FM Property, the CO Property, the Lewisville Property and the Buchanan Property, all as of June 30, 2020, and the GR Property, the DST Properties and the SF Property, all as of March 31, 2020 (collectively the “Appraised Properties”). Pursuant to our engagement agreement with Stanger, the appraisals of the Appraised Properties were prepared utilizing the income approach to value, specifically using a direct capitalization analysis for the GR Property and the DST Properties and both a direct capitalization analysis and discounted cash flow analysis (“DCF”) for the FM Property, the CO Property, the Lewisville Property, the SF Property and the Buchanan Property. In addition, a sales comparison approach was conducted for the SF Property, given the size of the SF Property. The direct capitalization analysis is based upon the estimated net operating income of the Appraised Properties capitalized at an appropriate capitalization rate considering property characteristics and competitive position, the credit profile of the tenant/guarantor under the leases encumbering the Appraised Properties, the terms of the leases encumbering the Appraised Properties, and market conditions as of the date of value. The DCF analysis is based upon multi-year cash flow projections for each applicable property prepared in accordance with the lease which currently encumbers each property. Each property was assumed to be sold after the expiration of the initial lease term and any renewal terms deemed materially favorable to the tenant, or for which exercise was deemed likely based on other factors. The reversion value of the property which can be realized upon sale is calculated based on the current economic rental rate deemed reasonable for the property, escalated at a rate indicative of current expectations in the marketplace for the property. The projected market rate net operating income of the property for the year following the year of sale is then capitalized at an appropriate capitalization rate reflecting the age and anticipated functional and economic obsolescence and competitive position of the property to determine its reversion value. Net proceeds of sale are determined by deducting


estimated costs incurred at the time of sale, estimated at 2% of the gross reversion value. Finally, the discounted present value of the cash flow stream from operations (including any estimated releasing costs at the end of the assumed current lease term) and the discounted present value of the net proceeds from sale are summed to arrive at a total estimated value for the property. The capitalization rates applied to the Appraised Properties ranged from 5.00% to 6.50%, with a weighted average of approximately 6.02%. The discount rates applied to the estimated net cash flow from operations of the Appraised Properties for which a DCF analysis was conducted ranged from 5.25% to 7.50%, with a weighted average of approximately 6.78%. The discount rates applied to the estimated residual value of the Appraised Properties for which a DCF analysis was conducted ranged from 6.50% to 7.50%, with a weighted average of approximately 7.28%. The residual capitalization rates applied to the Appraised Properties for which a DCF analysis was conducted ranged from 5.75% to 6.75%, with a weighted average of approximately 6.53%. Where both a direct capitalization analysis and DCF was utilized, the indicated value from each approach was reviewed and a final appraised value was concluded. While a sales comparison approach was not conducted, other than for the SF Property, Stanger reviewed regional property sale data for each Appraised Property in order to assist in the selection of capitalization rates applied in the appraisals and to observe transaction prices per square foot in the Appraised Properties’ regional markets. For the SF Property, the sales comparison approach conducted utilized the price per square foot from recent market sales and adjusted such indicated price per square foot to a price per square foot deemed reasonable for the SF Property, taking into account factors such as property size, location, tenancy/occupancy and condition/quality and the date of sale. The aggregate appraised value of the Appraised Properties was $178,120,000. The appraised values of the Appraised Properties are subject to the general assumptions and limiting conditions set forth in the appraisal reports rendered to the Company by Stanger.

Debt Investments

In accordance with our valuation procedures, the Lancaster PE and the Chicago Jr Mezz (individually a “Debt Investment” and collectively the “Debt Investments”) were included in the determination of NAV at their estimated fair market value as of July 30, 2020, as determined by Stanger, adjusted to reflect the Company’s interest in the Debt Investments. The Debt Investments estimated value was based upon taking, for each Debt Investment, the loan payments over the remaining anticipated term and discounting such payments to present value at a discount rate range equal to the current estimated market interest rate on financing similar to the applicable Debt Investments. To provide their opinion of value of the Debt Investments, Stanger first reviewed the terms of each of the Debt Investments as contained in the loan documents. Stanger then reviewed mezzanine loan market terms at or around July 31, 2020 to ascertain current market interest rate levels for loans similar to the Debt Investments. This review was conducted by (i) recent interviews of participants in the mezzanine / preferred equity market, (ii) reviewing recent mezzanine loan transactions, as available, and (iii) reviewing published surveys available at or around July 31, 2020. Based on Stanger’s reviews above and taking into consideration the Debt Investments’ unique factors, including, but not limited to, loan-to-value (based on the appraised value of the collateral), debt service coverage/debt yield, collateral property type, age and location, financial information pertaining to the lessee of the collateral properties, prepayment terms, and loan origination date, maturity date and extension terms, a market interest rate range was determined for each Debt Investment to utilize in the determination of the fair market value of the Debt Investments. The discount rate applied to the future payments of our Debt Investments was 8.90% for both facilities. The aggregate fair value of the Debt Investments was approximately $23,672,000.

Estimated Market Value of the Non-Controlling Interest in the Battery Street SF JV

In order to determine the net asset value attributable to the non-controlling interest and promote interest in the Battery Street SF JV, Stanger utilized the appraisal of the SF Property, and then, based on the July 31, 2020 Battery Street SF JV balance sheet provided, added tangible assets and deducted tangible liabilities of the Battery Street SF JV, including an adjustment for anticipated near term capital repairs at the SF Property not considered in the property appraisal, and determined any promote due to the Company’s Battery Street SF JV partner. This net asset value was then multiplied by the ownership interest held by parties other than us (25%) to determine the non-controlling interest adjustment related to the Battery Street SF JV utilized in the Company’s July 31, 2020 NAV.


Fair Value of Long Term Debt

Stanger performed a valuation of the property-level debt by reviewing available market data for comparable liabilities and applying a selected discount rate to the stream of future debt payments. The discount rate was selected based on several factors including U.S. Treasury yields as of the valuation date, as well as loan-specific items such as loan-to-value ratio, debt service coverage ratio, collateral property location, age, type, lease term and lessee credit quality, prepayment terms, and maturity and loan origination date. The discount rates applied to the future debt payments of our long-term debt ranged from 3.55% to 4.15%, with a weighted average of approximately 3.94%. Stanger’s valuation of the long-term debt is based in part on the appraised values of the encumbered Appraised Properties, which represent the collateral associated with the long-term debt as well as certain other assumptions and limiting conditions, including: (i) Stanger was provided with loan documents and other factual loan information by the Advisor and has relied upon and assumed that such information is correct in all material respects and no warranty is given by Stanger as to the accuracy of such information; (ii) each collateral property is assumed to be free and clear of liens (other than the mortgage being valued); (iii) information furnished by others, upon which all or portions of Stanger’s value opinion is based, is believed to be reliable but has not been verified, and no warranty is given as to the accuracy of such information; (iv) no material change has occurred in the value of the collateral properties from the date of last appraisal through the loan valuation date and (v) each mortgage is assumed to be salable, transferable or assumable between parties and is further assumed not to be in default. Stanger’s opinion of the long-term debt value was predicated on the above assumptions.

Sensitivity Analysis

Assuming all other factors remain unchanged, the table below presents the estimated increase or decrease to our July 31, 2020 NAV for a change in the going-in capitalization rate and, where a DCF analysis was utilized, discount rates and terminal capitalization rates used in the Appraised Properties’ appraisals, a 5% change in the discount rates used to value our Debt Investments and a 5% change in the discount rates used to value our long-term debt:

 

Sensitivity Analysis

   Range of NAV (Class A & I)     Range of NAV (Class T)  
     Low     Concluded     High     Low     Concluded     High  

Estimated Per Share NAV

   $ 21.94     $ 23.66     $ 25.52     $ 21.93     $ 23.64     $ 25.50  

Capitalization Rate - Appraised Properties

     6.32     6.02     5.72     6.32     6.02     5.72

Cash Flow Discount Rate - Appraised Properties

     7.12     6.78     6.44     7.12     6.78     6.44

Residual Discount Rate - Appraised Properties

     7.64     7.28     6.92     7.64     7.28     6.92

Terminal Capitalization Rate - Appraised Properties

     6.86     6.53     6.20     6.86     6.53     6.20

Discount Rate - Debt Investments

     9.35     8.90     8.46     9.35     8.90     8.46

Discount Rate - Long-Term Debt Consolidated

     3.74     3.94     4.14     3.74     3.94     4.14

Our Investments Overview

As of June 30, 2020, our portfolio consisted of interests in 13 real properties with an aggregate contract purchase price of $173,613,150, interests in a preferred equity investment in the amount of $11,805,000 and an interest in a mezzanine loan in the principal amount of $12,595,000. We own 100% of our real properties with the exception of our San Francisco property of which we own a 75% interest. In addition, we own 100% of our investments in the preferred equity investment and the mezzanine loan, respectively.

As of June 30, 2020, our portfolio consisted of the following property types: 24.1% single tenant necessity, 47.9% single tenant office and 28.0% of single tenant industrial. As of June 30, 2020, our portfolio had the following geographic concentration: Ohio – 33.2%, South Carolina – 16.8%, Michigan – 10.5%, Arizona – 9.6%, Oklahoma – 7.9%, Illinois – 6.6%, Pennsylvania – 6.2%, Texas – 5.6%, Arkansas – 2.8%, California – 0.6%. In addition, 87.1% of our portfolio consisted of common equity, 6.6% consisted of mezzanine loan and 6.2% consisted of preferred equity. 46.5% of our tenants were investment grade, 12.9% were non-investment grade and 40.7% were unrated. The investment grade tenants include Daimler Trucks North America, LLC, which is not


rated. Daimler AG, the parent company for Daimler Trucks North America, LLC, which does not guarantee the lease, is rated A3 by Moody’s. The portfolio information set forth above is based on straight-line rents or investment income for each asset at 100% ownership.

Updates to the Prospectus

Correction to the Disclosure of the Sales Information in Our Initial Public Offering

The disclosure on the cover page, page viii and page 1 of the prospectus with regard to the gross offering proceeds raised from our initial public offering is hereby corrected to reflect that we had raised $159.4 million in gross offering proceeds in our initial public offering prior to its termination.

Update to the Suitability Standards Section

The fifth sentence of the second paragraph on page iii of the prospectus is deleted in its entirety and replaced with the following: “Regulation Best Interest enhances the broker-dealer standard of conduct beyond existing suitability obligations.”

Update to the Class T Distribution Fee Disclosure

All references to the “advisor distribution fee” on the cover page, pages 3, 9, 89, 106, 198, 226 and 227 of the prospectus are hereby deleted in their entirety and replaced with references to “dealer distribution fee.” All references to “dealer distribution fee” on the cover page and pages 3, 9, 89, 106, 198, 226 and 227 of the prospectus are hereby deleted in their entirety and replaced with references to “dealer manager distribution fee.”

Quarterly Report on the Form 10-Q for the Quarter Ended June 30, 2020

On August 13, 2020, we filed with the Securities and Exchange Commission our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, a copy of which is attached to this Supplement as Appendix A (without exhibits).


APPENDIX A


 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

                                                                For the transition period from                      to                     

 

Commission file number: 000-56043

 

Cantor Fitzgerald Income Trust, Inc.

(Exact name of registrant as specified in its charter)

 

 

Maryland

 

81-1310268

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification No.)

 

 

 

110 E. 59th Street, New York, NY

 

10022

(Address of principal executive offices)

 

(Zip Code)

(Registrant’s telephone number, including area code) (212) 938-5000

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

None

N/A

N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes        No   

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes        No   

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

 

 

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

 

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes       No   

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

The aggregate market value of the common stock held by non-affiliates of the Registrant: No established market exists for the Registrant’s common stock.

As of August 11, 2020, the registrant had 3,503,457 Class AX shares, 1,213,904 Class IX shares and 1,479,864 Class TX shares of $0.01 par value common stock outstanding.

 

 

 

 

 


CANTOR FITZGERALD INCOME TRUST, INC.

TABLE OF CONTENTS

 

 

 

Page

 

 

 

PART I - FINANCIAL INFORMATION

 

3

 

 

 

Item 1. Financial Statements (Unaudited)

 

3

 

 

 

Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019

 

3

 

 

 

Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2020 and June 30, 2019

 

4

 

 

 

Consolidated Statements of Changes in Equity for the Three and Six Months Ended June 30, 2020 and June 30, 2019

 

5

 

 

 

Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2020 and June 30, 2019

 

7

 

 

 

Notes to Consolidated Financial Statements

 

8

 

 

 

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

 

38

 

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

63

 

 

 

Item 4. Controls and Procedures.

 

64

 

 

 

PART II - OTHER INFORMATION

 

66

 

 

 

Item 1. Legal Proceedings.

 

66

 

 

 

Item 1A. Risk Factors.

 

66

 

 

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

68

 

 

 

Item 3. Defaults Upon Senior Securities.

 

69

 

 

 

Item 4. Mine Safety Disclosures.

 

70

 

 

 

Item 5. Other Information.

 

70

 

 

 

Item 6. Exhibits.

 

70

 

 

 

Signatures

 

72

 

 

 


PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

CANTOR FITZGERALD INCOME TRUST, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

June 30, 2020

 

 

December 31, 2019

 

Assets

 

 

 

 

 

 

 

Investment in real estate, net of accumulated depreciation of $6,433,313 and $4,275,639, respectively

$

156,947,725

 

 

$

159,105,399

 

Cash and cash equivalents

 

33,403,408

 

 

 

17,305,001

 

Investments in real estate-related assets

 

24,400,000

 

 

 

24,400,000

 

Intangible assets, net of accumulated amortization of $2,993,739 and $1,876,930, respectively

 

19,692,926

 

 

 

20,809,735

 

Deferred rent receivable

 

1,512,721

 

 

 

1,225,863

 

Prepaid expenses and other assets

 

525,938

 

 

 

461,251

 

Due from related party

 

310,255

 

 

 

49,910

 

Accrued preferred return receivable

 

77,323

 

 

 

 

Accrued income from mezzanine loan investment

 

68,940

 

 

 

 

Stock subscriptions receivable

 

 

 

 

261,038

 

Total assets

$

236,939,236

 

 

$

223,618,197

 

Liabilities and Equity

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

Loans payable, net of deferred financing costs of $803,302 and $841,615, respectively

$

83,341,882

 

 

$

83,303,569

 

Intangible liabilities, net of accumulated amortization of $840,519 and $416,574, respectively

 

8,224,797

 

 

 

8,648,742

 

Due to related parties

 

1,861,062

 

 

 

2,057,181

 

Distributions payable

 

733,307

 

 

 

668,092

 

Accounts payable and accrued expenses

 

686,864

 

 

 

16,384

 

Deferred revenue

 

473,395

 

 

 

561,056

 

Restricted reserves

 

380,745

 

 

 

33,124

 

Accrued interest payable

 

262,649

 

 

 

273,200

 

Total liabilities

 

95,964,701

 

 

 

95,561,348

 

Stockholders' equity

 

 

 

 

 

 

 

Controlling interest

 

 

 

 

 

 

 

Preferred stock, $0.01 par value per share, 50,000,000 shares authorized,

   and 0 issued and outstanding at each June 30, 2020 and December 31, 2019

 

 

 

 

 

Class A common stock, $0.01 par value per share, 160,000,000 shares authorized,

   and 3,410,823 and 3,158,796 issued and outstanding at June 30, 2020 and

   December 31, 2019, respectively

 

34,108

 

 

 

31,580

 

Class T common stock, $0.01 par value per share, 200,000,000 shares authorized,

  and 1,440,760 and 1,327,819 issued and outstanding at June 30, 2020 and

   December 31, 2019, respectively

 

14,408

 

 

 

13,278

 

Class I common stock, $0.01 par value per share, 40,000,000 shares authorized,

   and 1,151,593 and 853,734 issued and outstanding at June 30, 2020 and

   December 31, 2019, respectively

 

11,516

 

 

 

8,537

 

Additional paid-in capital

 

151,842,791

 

 

 

135,507,823

 

Accumulated deficit and cumulative distributions

 

(13,906,459

)

 

 

(10,543,287

)

Total controlling interest

 

137,996,364

 

 

 

125,017,931

 

Non-controlling interests in subsidiaries

 

2,978,171

 

 

 

3,038,918

 

Total stockholders' equity

 

140,974,535

 

 

 

128,056,849

 

Total liabilities and stockholders' equity

$

236,939,236

 

 

$

223,618,197

 

See accompanying notes to consolidated financial statements

3

 


CANTOR FITZGERALD INCOME TRUST, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

For the Three Months

 

 

For the Six Months

 

 

Ended June 30,

 

 

Ended June 30,

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenues

$

3,069,548

 

 

$

2,282,406

 

 

$

6,139,095

 

 

$

4,205,626

 

Preferred return income

 

234,545

 

 

 

62,899

 

 

 

469,091

 

 

 

62,899

 

Income from mezzanine loan investment

 

250,241

 

 

 

 

 

 

500,483

 

 

 

 

Tenant reimbursement income

 

456,666

 

 

 

219,082

 

 

 

877,825

 

 

 

594,995

 

Total revenues

 

4,011,000

 

 

 

2,564,387

 

 

 

7,986,494

 

 

 

4,863,520

 

Operating expenses (income):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

33,439

 

 

 

61,824

 

 

 

88,204

 

 

 

205,052

 

Depreciation and amortization

 

1,629,666

 

 

 

1,158,291

 

 

 

3,259,334

 

 

 

2,144,443

 

Management fees

 

443,370

 

 

 

540,126

 

 

 

866,125

 

 

 

1,067,900

 

Property operating expenses

 

545,230

 

 

 

219,082

 

 

 

978,194

 

 

 

594,995

 

Total operating expenses

 

2,651,705

 

 

 

1,979,323

 

 

 

5,191,857

 

 

 

4,012,390

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from investments in real estate-related assets

 

 

 

 

322,904

 

 

 

 

 

 

701,222

 

Interest income

 

6,268

 

 

 

70,382

 

 

 

52,352

 

 

 

90,889

 

Interest expense

 

(979,354

)

 

 

(781,268

)

 

 

(1,958,704

)

 

 

(1,395,502

)

Total other income (expense)

 

(973,086

)

 

 

(387,982

)

 

 

(1,906,352

)

 

 

(603,391

)

Net income (loss)

$

386,209

 

 

$

197,082

 

 

$

888,285

 

 

$

247,739

 

Net income (loss) attributable to non-controlling interest

 

(17,978

)

 

 

 

 

 

(16,747

)

 

 

 

Net income (loss) attributable to common stockholders

$

404,187

 

 

$

197,082

 

 

$

905,032

 

 

$

247,739

 

Weighted average shares outstanding

 

5,938,547

 

 

 

4,275,839

 

 

 

5,737,510

 

 

 

4,008,580

 

Net income (loss) per common share - basic and diluted

$

0.07

 

 

$

0.05

 

 

$

0.16

 

 

$

0.06

 

See accompanying notes to consolidated financial statements

4

 


 

CANTOR FITZGERALD INCOME TRUST, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited)

 

Controlling Interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Additional

 

 

Deficit and

 

 

Non-

 

 

Total

 

 

Class A

 

 

Class T

 

 

Class I

 

 

Paid-In

 

 

Cumulative

 

 

controlling

 

 

Stockholders'

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Distributions

 

 

interest

 

 

Equity

 

Balance as of January 1, 2019

 

2,116,562

 

 

$

21,166

 

 

 

939,185

 

 

$

9,392

 

 

 

401,639

 

 

$

4,016

 

 

$

84,467,731

 

 

$

(4,737,537

)

 

$

179,950

 

 

$

79,944,718

 

Common stock

 

263,629

 

 

 

2,636

 

 

 

113,727

 

 

 

1,137

 

 

 

148,278

 

 

 

1,483

 

 

 

13,599,025

 

 

 

 

 

 

 

 

 

13,604,281

 

Common stock repurchased

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distribution reinvestment

 

12,509

 

 

 

125

 

 

 

4,570

 

 

 

46

 

 

 

1,573

 

 

 

16

 

 

 

468,239

 

 

 

 

 

 

 

 

 

468,426

 

Offering costs, commissions and fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(643,788

)

 

 

 

 

 

 

 

 

(643,788

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

50,657

 

 

 

(70

)

 

 

50,587

 

Distributions declared on common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,368,762

)

 

 

 

 

 

(1,368,762

)

Acquired non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of March 31, 2019

 

2,392,700

 

 

$

23,927

 

 

 

1,057,482

 

 

$

10,575

 

 

 

551,490

 

 

$

5,515

 

 

$

97,891,207

 

 

$

(6,055,642

)

 

$

179,880

 

 

$

92,055,462

 

Common stock

 

274,447

 

 

 

2,745

 

 

 

88,364

 

 

 

884

 

 

 

111,436

 

 

 

1,115

 

 

 

12,359,412

 

 

 

 

 

 

 

 

 

12,364,156

 

Common stock repurchased

 

(18,774

)

 

 

(188

)

 

 

(3,037

)

 

 

(30

)

 

 

 

 

 

 

 

 

(542,663

)

 

 

 

 

 

 

 

 

(542,881

)

Distribution reinvestment

 

14,013

 

 

 

140

 

 

 

5,038

 

 

 

50

 

 

 

2,059

 

 

 

20

 

 

 

533,057

 

 

 

 

 

 

 

 

 

533,267

 

Offering costs, commissions and fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(598,424

)

 

 

 

 

 

 

 

 

(598,424

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

197,082

 

 

 

 

 

 

197,082

 

Distributions declared on common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,582,417

)

 

 

 

 

 

(1,582,417

)

Acquired non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,476,918

 

 

 

 

 

 

80,898

 

 

 

4,557,816

 

Balance as of June 30, 2019

 

2,662,386

 

 

$

26,624

 

 

 

1,147,847

 

 

$

11,479

 

 

 

664,985

 

 

$

6,650

 

 

 

114,119,507

 

 

$

(7,440,977

)

 

$

260,778

 

 

$

106,984,061

 

See accompanying notes to consolidated financial statements

5

 


 

 

 

CANTOR FITZGERALD INCOME TRUST, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Unaudited)

 

Controlling Interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Additional

 

 

Deficit and

 

 

Non-

 

 

Total

 

 

Class A

 

 

Class T

 

 

Class I

 

 

Paid-In

 

 

Cumulative

 

 

controlling

 

 

Stockholders'

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Distributions

 

 

interest

 

 

Equity

 

Balance as of January 1, 2020

 

3,158,796

 

 

$

31,580

 

 

 

1,327,819

 

 

$

13,278

 

 

 

853,734

 

 

$

8,537

 

 

$

135,507,823

 

 

$

(10,543,287

)

 

$

3,038,918

 

 

$

128,056,849

 

Common stock

 

150,441

 

 

 

1,512

 

 

 

66,220

 

 

 

662

 

 

 

215,102

 

 

 

2,151

 

 

 

11,035,494

 

 

 

 

 

 

 

 

 

11,039,819

 

Common stock repurchased

 

(17,256

)

 

 

(173

)

 

 

(8,028

)

 

 

(80

)

 

 

 

 

 

 

 

 

(620,406

)

 

 

 

 

 

 

 

 

(620,659

)

Distribution reinvestment

 

17,854

 

 

 

179

 

 

 

6,722

 

 

 

67

 

 

 

3,808

 

 

 

38

 

 

 

711,122

 

 

 

 

 

 

 

 

 

711,406

 

Offering costs, commissions and fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(381,233

)

 

 

 

 

 

 

 

 

(381,233

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

500,845

 

 

 

1,231

 

 

 

502,076

 

Distributions declared on common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,058,381

)

 

 

 

 

 

(2,058,381

)

Acquired non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16,500

)

 

 

(16,500

)

Balance as of March 31, 2020

 

3,309,835

 

 

$

33,098

 

 

 

1,392,733

 

 

$

13,927

 

 

 

1,072,644

 

 

$

10,726

 

 

$

146,252,800

 

 

$

(12,100,823

)

 

$

3,023,649

 

 

$

137,233,377

 

Common stock

 

144,689

 

 

 

1,447

 

 

 

49,180

 

 

 

492

 

 

 

89,113

 

 

 

892

 

 

 

7,113,748

 

 

 

 

 

 

 

 

 

7,116,579

 

Common stock repurchased

 

(62,524

)

 

 

(625

)

 

 

(8,544

)

 

 

(85

)

 

 

(15,887

)

 

 

(159

)

 

 

(2,021,342

)

 

 

 

 

 

 

 

 

(2,022,211

)

Distribution reinvestment

 

18,823

 

 

 

188

 

 

 

7,391

 

 

 

74

 

 

 

5,723

 

 

 

57

 

 

 

785,939

 

 

 

 

 

 

 

 

 

786,258

 

Offering costs, commissions and fees

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(288,354

)

 

 

 

 

 

 

 

 

(288,354

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

404,187

 

 

 

(17,978

)

 

 

386,209

 

Distributions declared on common stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,209,823

)

 

 

 

 

 

(2,209,823

)

Acquired non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(27,500

)

 

 

(27,500

)

Balance as of June 30, 2020

 

3,410,823

 

 

$

34,108

 

 

 

1,440,760

 

 

$

14,408

 

 

 

1,151,593

 

 

$

11,516

 

 

$

151,842,791

 

 

$

(13,906,459

)

 

$

2,978,171

 

 

$

140,974,535

 

See accompanying notes to consolidated financial statements

6

 


CANTOR FITZGERALD INCOME TRUST, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

For the Six Months

 

 

 

Ended June 30,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

888,285