DST Distributions - Current State June 2025

[Nick C.]

I've invested in three DST (2021). Two are through Capital Square and one with Inspired Healthcare Capital. A couple months ago, I received communication from Capital Square that they were lowering our distributions from 4.27% to 3.01% on one of the properties outside of Atlanta. Yesterday, I received a very short email from Inspired Healthcare that they were stopping distributions completely (6.0% previously).

Anyone else have experience with this and know what is likely to happen next?

Appreciate any insights you may have.

[Adam Nishikawa]

They aren't the only ones! Many of these DSTs were generating cash flow under interest-only loan structures. However, as they transition to amortizing loans, the increased debt service obligations are compelling sponsors to reduce or temporarily suspend investor distributions to cover principal payments. Inspired Healthcare also cancelled several clients DST's and returned the funds, you can see how this is problematic for the taxpayer if they are past the 45th day to identify alternative investments! Stay away...