Capital Square Housing Trust Launches Series 2 Preferred Stock Offering

Strategic Insights -

Capital Square Housing Trust, a real estate investment trust (REIT) sponsored by Capital Square, has launched a new preferred stock offering to raise up to $45 million. The offering, which is limited to accredited investors, involves the sale of up to four million shares of Series 2 Class A and Class I Redeemable and Convertible Preferred Stock at $10 per share. The funds raised will be used to acquire new properties, finance UPREIT transactions, redeem and convert existing preferred stock, and support general corporate purposes.

Key Takeaways:

  • The Series 2 preferred stock offering is limited to accredited investors and offers a 9.0% annual dividend for Class A shares and a 9.75% annual dividend for Class I shares, both paid monthly.
  • Investors in Class A shares must have a minimum investment of $10,000, while investors in Class I shares must have a minimum investment of $5,000,000.
  • The preferred stock is convertible into common stock after the fourth anniversary of the offering, with shareholders receiving a 5% discount on the price per share of common stock.
  • Investors may elect to purchase shares through the Preferred Distribution Reinvestment Plan (DRIP), acquiring additional shares at the current purchase price without fees or sales commissions.
  • The offering supports Capital Square Housing Trust's strategic growth, including accretive acquisitions, credit solutions, and UPREIT transactions that align with its long-term vision for building a best-in-class portfolio of housing communities.
  • Capital Square Housing Trust is a real estate investment trust that acquires and manages a range of housing solutions, including Class A and B multifamily and build-for-rent communities in growth markets.

Statistics:

  • Up to four million shares of Series 2 Class A and Class I Redeemable and Convertible Preferred Stock will be sold at $10 per share.
  • The offering seeks to raise up to $45 million, which will be used to fund acquisitions, UPREIT transactions, preferred stock redemptions, and other real estate-related investments and working capital.
  • The preferred stock offers a 9.0% annual dividend for Class A shares and a 9.75% annual dividend for Class I shares, both paid monthly.
  • Investors in Class A shares must have a minimum investment of $10,000, while investors in Class I shares must have a minimum investment of $5,000,000.
  • The preferred stock is convertible into common stock after the fourth anniversary of the offering, with shareholders receiving a 5% discount on the price per share of common stock.

Sources:

  • "Capital Square Housing Trust Launches Offering of Series 2 Class A and Class I Redeemable and Convertible Preferred Stock," PRNewswire, July 14, 2025.
  • "About Capital Square Housing Trust," Capital Square Housing Trust website.
  • "Risk Factors," Capital Square Housing Trust private placement memorandum (PPM).
  • FINRA Broker Check link:
  • Private placements are speculative.