Dave Bulger

Vice President

O (855) 378-3443|C (561) 715-3235

E dbulger@carmonawealth.com

W carmonawealth.com

18 Formero Street, Rancho Mission Viejo, CA 92694

Investment underwriting report

Essential Income 12 DST

Complete offering, sponsor, fee and comparative analysis

Prepared

August 26, 2026

Offering Summary

Offering summary

Essential Income 12 DST is a single-tenant industrial offering sponsored by ExchangeRight Real Estate, LLC, backed by one property located in Republic, MO. The asset is leased to Amazon, which had 1,576,000 employees in 2025, operating under an Amazon Distribution sector focus. The offering price and total offering equity are both $123,530,000, structured with an Offering LTV of 100% and a reported DSCR of 3.02x. Projected investor returns indicate an Income % (Yr. 1) of 5.2% and an Avg. Income (Full Term) of 5.25%, alongside a Syndicated Cap Rate of 6.15%. Total acquisition cost is reported at $112,088,036, or $116,151,730 including reserves, with total offering expenses and total front-end fees of $7,378,270. ExchangeRight brings extensive track record to the platform, managing $7,400,000,000 in total AUM and $5,600,000,000 in DST net-leased assets under management.

Capital raise

0.0% of the offering is closed

$123,530,000 still available

Closed$0 Reservations$0 Available$123,530,000

$0 of $123,530,000 placed

Total offering equity

$123,530,000

Closed equity

0.0% of offering

Current reservations

Pending subscription

Available equity

$123,530,000

Open for subscription

The total capital raise target is $123,530,000 in offering equity. The transaction is structured with an Offering LTV of 100% and 100 units. Syndication costs include $7,378,270 in total front-end fees and offering expenses.

Offering terms

Sector

Amazon Distribution - Republic

Investment Category

DST

Projected First Year Cashflow

5.2%

Avg. 5.25% over term

Min. Cash Investment

—

Min. 1031 Investment

—

Total Offering Price

$123,530,000

$1,235,300 per unit

Offering Debt

—

All-equity offering

LTV

—

On acquisition price

Units / Tenants

100

Republic, MO

Property Age

—

The offering features a single industrial property leased to Amazon in Republic, MO, representing an offering equity and purchase capitalization of $123,530,000. Underwriting metrics reflect a Year 1 income rate of 5.2%, full-term average income of 5.25%, and a syndicated cap rate of 6.15%. The capital structure notes an offering LTV of 100% with a 3.02x DSCR.

Strengths & considerations

Key strengths

Tenant Credit & Coverage
3.02x DSCR
The asset is 100% occupied by Amazon, supporting a robust debt service coverage ratio of 3.02x.
Sponsor Track Record
$5,600,000,000
ExchangeRight manages over $5.6B in DST assets across 86 tenants in 45 states, maintaining a 100% occupancy record.
Targeted Distribution Profile
5.2% / 5.25%
Offers a Year 1 projected income rate of 5.2% and a full-term average projected income rate of 5.25%.

Key considerations

Single-Asset Concentration
1 Property
The trust is concentrated entirely in a single distribution facility located in Republic, MO.
Undisclosed Asset Vintage
Not Disclosed
The construction year and physical age of the property are not disclosed in the provided offering documents.
Front-End Load & Syndication Fees
$7,378,270
Front-end offering expenses and fees total $7,378,270, including a $2,436,404 acquisition fee.

Credit quality is anchored by tenant Amazon, supporting strong operational coverage evidenced by a 3.02x DSCR. ExchangeRight Real Estate, LLC provides seasoned management oversight, with $5,600,000,000 in DST AUM that maintains a 100% leased track record across its net-leased portfolios. Initial distributions offer predictable yield starting at 5.2% in Year 1 and averaging 5.25% across the full term.

Sources, uses & fee assessment

Capital Sources

Offering Equity
100.0% of offering
$123.53M

Where the Capital Goes

Acquisition Cost
90.7% of offering
$112.09M
Offering Expenses
6.0% of offering
$7.38M
Unallocated / other uses
3.3% of offering
$4.06M

Total Offering

$123.53M

All equity — no mortgage debt

Acquisition Cost

$112.09M

90.7% of offering to the property

Total Fees & Expenses

$7.38M

5.97% of offering

Reserves

—

— of offering

Sources comprise $123,530,000 in offering equity. Uses include total acquisition cost of $112,088,036 ($116,151,730 including reserves), total front-end fees and offering expenses of $7,378,270 (comprising a $2,436,404 acquisition fee and $6,485,325 BD due diligence allowance), financing expenses of $2,656,000, third-party DD of $15,000, and DST admin & accounting fees of $432,355.

Risk read

Tone reflects relative strength, not a rating

Asset Concentration

Single-Tenant Risk

Essential Income 12 DST holds a single property, concentrating operational risk in one facility in Republic, MO.

Tenant Strength

High Credit Quality

Amazon occupies the distribution asset, backed by global scale and 1,576,000 employees.

Sponsor Execution

Extensive Track Record

ExchangeRight manages $5,600,000,000 in DST net-leased portfolios with a 100% leased track record.

Physical Due Diligence

Information Gap

Property vintage and construction date are not disclosed in the offering materials.

The offering presents single-tenant concentration risk, as the DST is entirely dependent on one Amazon distribution asset in Republic, MO. Property age and construction year are not disclosed in the offering materials, limiting physical asset vintage assessment. Additionally, front-end syndication fees and offering expenses total $7,378,270 of the $123,530,000 raise.

Calculated underwriting metrics

Syndicated Cap Rate

6.15%

NOI ÷ offering price

Upfront Load

5.97%

Total fees ÷ offering price (all-equity offering)

Premium / Discount

—

Offering price vs. appraised value

Offering vs. Acquisition

—

Offering price ÷ acquisition price

Price per Unit

$1,235,300

Offering price ÷ 100 units

Projected distribution rate

Avg 5.22%

Yr 1Term avg.

Yr 1 5.20%Term avg. 5.25%

Distribution rates as extracted from the offering materials.

The spread between the total acquisition cost of $112,088,036 ($116,151,730 with reserves) and the $123,530,000 offering price reflects total front-end fees and offering expenses of $7,378,270. Financing expenses stand at $2,656,000, alongside an acquisition fee of $2,436,404 and broker-dealer due diligence allowance of $6,485,325. Reserves account for a Less Reserves % of 1.07% within the total capital structure.

Sponsor

ExchangeRight Real Estate, LLC

ExchangeRight Real Estate, LLC is an experienced net-lease syndicator with $7,400,000,000 in total AUM and $5,600,000,000 in DST net-leased portfolios. Their managed portfolios comprise 86 tenants across 45 states and 17 industries, all operating at 100% occupancy.

Net-Lease Specialist$7.4B Total AUM100% Leased Track RecordAmazon Tenant

Portfolio

• The Essential Income REIT is currently invested in a diversified portfolio of 397 properties in 37 states. • ExchangeRight's DST net-leased portfolios under management total 86 tenants across 45 states and 17 industries and are 100% leased. • The Essential Income 12 DST itself is a single-tenant offering backed by one property in Republic, Missouri.

Properties owned or managed

AUM

$7,400,000,000

Across all programs

DST programs

—

Prior DST offerings

AUM in DSTs

—

DST-held assets

Team

Amazon, the tenant for the Essential Income 12 DST property, had 1,576,000 employees in 2025.

Disclosed headcount

Sector focus

Amazon Distribution - Republic

Stated strategy

View Sponsor Dossier

ExchangeRight Real Estate, LLC manages $7,400,000,000 in total assets under management, including $5,600,000,000 in DST net-leased portfolios. The sponsor's broader platform encompasses 86 tenants across 45 states and 17 industries, operating at 100% occupancy. Furthermore, the sponsor's Essential Income REIT holds a diversified portfolio of 397 properties across 37 states.

Sponsor strengths

Manages $5,600,000,000 in net-leased DST portfolios
100% occupancy maintained across 86 tenants in 45 states
Essential Income REIT platform includes 397 properties in 37 states

Sponsor concerns

Single-asset DST structure exposes investors to location-specific risk

The Property

The property

One asset, Republic, MO submarket

— acquisition price

Essential Income 12 DST

Industrial

Republic, MO

100 unitsIndustrial

—

100.0% of portfolio

Seller: —
Property manager: ExchangeRight Real Estate, LLC

Financing Terms

The offering utilizes 0% leverage with no debt encumbering the properties. This all-equity structure eliminates mortgage amortization, debt service obligations, and maturity refinancing risk.

Leverage profile

All-cash offering — no mortgage debt, so there is no leverage to chart.

Loan Amount

—

Term

—

Interest Rate

—

Fixed / Variable

—

Prepayment Penalty

—

DSCR

3.02x

Acquisition LTV

—

Offering LTV

100%

Strengths

High coverage ratio with DSCR at 3.02x

Concerns

Offering LTV listed at 100%
Finance expenses total $2,656,000

Transaction Metrics

The properties were acquired for $48,433,606 at a 6.66% cap rate, at a discount exceeding $1,350,000 to appraised value. Total acquisition costs including closing expenses and carry reach $52,476,257.

Valuation ladder

Offering price$123.53M

Cap rate spread & load

Syndicated cap rate6.15%

Upfront load (all-equity)5.97%equity = offering price

Acquisition Price

—

Offering Price

$123,530,000

Appraised Value

—

Upfront Load

—

Load on Equity

—

Load on Offering Price

—

Acquisition Cap Rate

—

Syndicated Cap Rate

6.15%

Premium / Discount

—

Appraisal / Offering %

—

Less Reserves %

1.07%

Strengths

Syndicated cap rate established at 6.15%

Concerns

Front-end load of $7,378,270 between offering expenses and fees

Use of Proceeds

Gross offering proceeds of $60,051,084 are allocated to the $48,433,606 purchase, $5,674,827 in fees and offering expenses, $1,046,823 in carry costs, and $1,750,000 in reserves.

Total Fees & Expenses

$7,378,270

% of offering

5.97%

All-equity offering — load on equity equals load on offering price.

Where the offering proceeds go

Acquisition Cost$112.09M90.7%

Offering Expenses$7.38M6.0%

Unallocated / other uses$4.06M3.3%

Total fees & expenses

$7.38M

5.97% of offering

Offering expenses

$7.38M

5.97% of offering

Reserves held

—

— of offering

Cost of Acquisition

Item	Amount	% Equity	% Offering
Acquisition Fee	$2,436,404	1.97%	1.97%
Finance Expenses	$2,656,000	2.15%	2.15%
Total Acquisition Cost	$112,088,036	90.74%	90.74%
Total Acq. Cost (Reserves)	$116,151,730	94.03%	94.03%

Offering Expenses

Item	Amount	% Equity	% Offering
BD Due Diligence Allowance	$6,485,325	5.25%	5.25%
Third Party DD	$15,000	0.01%	0.01%
Total Offering Expenses	$7,378,270	5.97%	5.97%

Strengths

Fully equity-funded syndication raise of $123,530,000
Dedicated reserves structured at 1.07%

Concerns

BD due diligence allowance accounts for $6,485,325

Sponsor Compensation

Sponsor-related compensation and third-party fees include an acquisition fee of $1,331,924, a 0.40% annual asset management fee, a $750,639 dealer fee, and $1,591,354 in BD allowances.

Front-end fee composition

Acquisition Fee$2.44M1.97%

DST Admin & Accounting$0.43M0.35%

Total front-end sponsor compensation$7,378,270 5.97% of acq. cost

Acquisition Fee

$2,436,404

1.97%

DST Admin & Accounting

$432,355

0.35%

Total Front-end Fees

$7,378,270

5.97%

Strengths

Annual asset management fee is low at $26,780

Concerns

Acquisition fee of $2,436,404 paid at closing

Operating & Disposition Fees

Operations are structured around a master tenant lease with $1,750,000 in dedicated master tenant and improvement reserves. Base Year 1 distributions are set at 4.97%, scaling to an average of 6.12% across the 10-year term.

Ongoing fee rates

Asset Mgmt Fee (annual)

$26,780

Master Tenant Income

$721

Strengths

Tenant Amazon employs over 1,576,000 individuals globally
Sponsor DST portfolio maintains 100% occupancy

Concerns

Entire operational performance is reliant on a single tenant

Comparative Analysis

64Composite

Standing

5 of 57

Blended percentile across 8 extracted metrics.

Pricing

61st pct

Leverage

96th pct

Cost

61st pct

Ongoing

0th pct

Structure

50th pct

Percentile profile

Pricing

Price per unitMin $24KMed $284KMax $3290K$1235K5th

Avg. distribution (term)Min 0.00%Med 5.05%Max 7.00%5.25%67th

Syndicated cap rateMin 4.02%Med 5.49%Max 9.74%6.15%81st

Year 1 distributionMin 0.00%Med 4.51%Max 6.75%5.20%91st

Leverage

DSCRMin 1.00xMed 1.99xMax 3.38x3.02x96th

Cost

Total upfront loadMin 1.96%Med 7.50%Max 12.05%5.97%51st

Acquisition feeMin 0.00%Med 2.65%Max 12.07%1.97%71st

Ongoing

Structure

Equity share of capitalMin 6.09%Med 97.50%Max 100.00%100.00%50th

Bar spans the cohort minimum (Min) to maximum (Max), labelled beneath with the cohort median (Med). Shaded band is the 25th–75th percentile, the tick is the median, and the dot is this offering.

Where the headline metrics fall in the cohort

Year 1 distribution

91st pct

5.20%median 4.51%

Min 0.00%Med 4.51%Max 6.75%

DSCR

96th pct

3.02xmedian 1.99x

Min 1.00xMed 1.99xMax 3.38x

Total upfront load

51st pct

5.97%median 7.50%

Min 1.96%Med 7.50%Max 12.05%

Metric-by-metric comparison

Metric	This offering	Cohort median	25th–75th	Difference	Percentile
Syndicated cap ratePricing	6.15%	5.49%	4.84% – 5.82%	+0.66%	81st
Price per unitPricing	$1235K	$284K	$180K – $418K	+$951K	5th
Year 1 distributionPricing	5.20%	4.51%	4.40% – 5.00%	+0.69%	91st
Avg. distribution (term)Pricing	5.25%	5.05%	4.75% – 5.32%	+0.20%	67th
DSCRLeverage	3.02x	1.99x	1.73x – 2.10x	+1.03x	96th
Total upfront loadCost	5.97%	7.50%	4.89% – 9.50%	−1.53%	51st
Acquisition feeCost	1.97%	2.65%	1.74% – 3.77%	−0.68%	71st
Equity share of capitalStructure	100.00%	97.50%	52.74% – 100.00%	+2.50%	50th

Closest comparables

Offering	Sponsor	Cap rate	LTV	DSCR	Load	Hold	Match
NREX II DST	Nuveen Real Estate Exchange LLC	—	0.00%	—	—	20 yrs	99%
AX Diversified Retail Portfolio DST	Apollo RE Exchange, LLC	6.00%	—	—	7.50%	—	90%
Inland Alt Senior Living II DST	Inland	7.53%	—	3.00x	—	12 yrs	88%
Inland Mokena Senior Living DST	Inland Private Capital Corporation (IPC)	—	—	—	8.40%	31 yrs	86%
MDI Overland Park Net Lease DST	MDI Sponsor, LLC	—	—	—	9.00%	2.0 yrs	86%
BR Diversified Industrial Portfolio 7 DST	BIGR Exchange 7 TRS, LLC	6.66%	0.00%	—	9.45%	10 yrs	85%
Madison Waterstar Orlando DST	Madison Capital Group	5.30%	40.00%	—	7.55%	—	85%
BR Diversified Industrial Portfolio 8 DST	BIGR Exchange 8 TRS, LLC	6.32%	—	—	9.45%	—	84%

Match score is a normalised distance across the full extracted metric set — asset type, pricing, leverage, cost and structure all weighted equally.

Figures on this page are generated from automated extraction of offering documents and may contain errors or omissions. Verify every metric against the sponsor's offering materials before relying on it for an investment decision.