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SEC Filings Part 2: A Closer Look at Some Key Issues

SEC Filings Part 2: A Closer Look at Some Key Issues

November 16, 2017

SEC Filings Part 2: A Closer Look at Some Key Issues November 15, 2017 | by Beth Glavosek | Blue Vault The Securities and Exchange Commission (SEC) aims to make it as easy as possible for investors to fully research companies before they invest in them. You can use the SEC’s EDGAR database to find answers …

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SEC Filings: What are All of Those Forms?

November 9, 2017

SEC Filings: What are All of Those Forms?  November 10, 2017 | Beth Glavosek | Blue Vault Reading companies’ Securities and Exchange Commission filings probably doesn’t rank as high on the fun factor as say, watching a good movie or going to a concert. However, they do serve an important purpose. Finding valuable information The SEC …

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America’s Data Centers Deliver Results

October 17, 2017

America’s Data Centers Deliver Results October 13, 2017 | Beth Glavosek | Blue Vault Given the destruction caused by recent hurricanes, it’s impressive to learn that internet service and the cloud remained intact and resilient, even as millions of people lost power or saw their homes and businesses flooded.[1] What makes this connectivity possible, even after catastrophic …

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Do We Need to Re-Think Inflation Expectations?

October 13, 2017

Do We Need to Re-Think Inflation Expectations? October 12, 2017 | James Sprow | Blue Vault One big question that Fed officials and economists generally are grappling with is “What’s happened to inflation?” The standard benchmark that Federal Reserve policy makers have used is an annual consumer price index rising at 2%. The persistence of …

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SEC Working Toward a Proposal on a New Fiduciary Rule

October 5, 2017

On Wednesday, October 4, in a Capitol Hill appearance, Securities and Exchange Commission (SEC) Chairman Jay Clayton told lawmakers that the agency is drafting its own proposal for a fiduciary rule, according to Investment News.

The Art of Wholesaling

September 28, 2017

In an upcoming blog series, Blue Vault is going to examine the role of the wholesaler in the financial services industry.

It’s been said that wholesalers are the ‘muscle’ behind the billions of dollars of fund shares sold through advisors and bought by investors each year. A wholesaler is someone who represents a product sponsor and its offerings. Known for being ‘road warriors’ who travel the country, wholesalers visit advisors and Broker Dealers to educate them about the benefits of the sponsor’s offerings and the unique value they bring to the marketplace of investments.

How Are Markets Rebounding from Harvey?

September 21, 2017

As the city of Houston continues its recovery after Hurricane Harvey and its catastrophic flooding, analysts are starting to size up the long-term implications on the real estate market, real estate investments, and the overall economy.

How Commercial Real Estate Mitigates Disasters

September 15, 2017

How Commercial Real Estate Mitigates Disasters September 15, 2017 | Beth Glavosek | Blue Vault Whenever a natural disaster strikes, investors in commercial properties may wonder how their assets are being managed and protected. According to the Whole Building Design Guide, a program of the National Institute of Building Sciences, “the most successful way to …

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Emergency Preparedness: Some Best Practices for Property Managers

September 7, 2017

As we saw last week with Hurricane Harvey and now with Irma headed toward south Florida, Mother Nature can be relentless. When it comes to protecting property – whether personal or business-related – having a current emergency preparedness plan in place helps preserve human life and minimize damage as much as possible.

When it comes to protecting commercial real estate (CRE), property managers usually have the responsibility for preparing emergency plans. Such plans protect the safety of employees who work in the buildings as well as the buildings themselves as much as possible.

What’s Next for Houston’s Downtown Business District?

August 31, 2017

What’s Next for Houston’s Downtown Business District? August 31, 2017 | Beth Glavosek | Blue Vault As the nation witnesses the historic and catastrophic flooding in the city of Houston, one question on the minds of many is, “What will it take to recover and rebuild?” According to the Houston Downtown Management District (HDMD), the …

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Have You Been Tracking Sales Lately?

August 25, 2017

If you’ve been following sales trends in alternative investments, you’ve likely noticed that sales are down. After reporting sales of $350.9 million in June, nontraded REIT (NTR) sponsors’ monthly total for July fell to $245.8 million – a difference of 30%.

Business Development Companies (BDCs), nonlisted Interval Funds, and nonlisted Closed-End Funds were also down in the month of July. Private Placement sales declined as well, albeit only by a very modest -0.7%.

Who’s Who in Alternative Investment Offerings?

August 17, 2017

Investors looking at prospectuses for nontraded REITs (NTRs), Business Development Companies (BDCs), and other alternative investments might see a diagram, organization chart, or other explanation of the entities involved in the offering. But, how can the reader make sense of their roles, especially if some of those entities have the same name or are the same company?

The Latest on the DOL Fiduciary Rule

August 11, 2017

It looks like there’s yet another reprieve on the final implementation of the Department of Labor (DOL) Fiduciary Rule. After sitting on the back burner while President Trump called for a reassessment of the ruling, the DOL earlier this year said that it wouldn’t start full enforcement until January 1, 2018. Now the date has moved to July 1, 2019 – a full 18 months later. Investment News reported on August 9 that the DOL submitted this proposal to the Office of Management and Budget (OMB), and the OMB must review and approve the proposal before it can go into effect. The delay itself could require its own rule making process, according to the article.

Sector Focus: Necessity Retail

August 4, 2017

Despite the huge rise and popularity of online shopping, there’s still a need for bricks and mortar stores. According to a recent study, by 2025, the share of online grocery spending could reach 20% of the total market, representing $100 billion in sales. However, as one supermarket executive puts it, “You can’t forsake the 80% of consumers who are shopping in your physical stores.”

Sector Focus: A Look at Senior Adult Housing

July 27, 2017

It’s no secret that Baby Boomers make up a significant portion of the U.S. population. Born between 1946 and 1964, Baby Boomers are now reaching the ages of 53 to 71. As this group continues to age, the number of Americans ages 65 and older is projected to more than double from 46 million today to over 98 million by 2060, and the 65-and-older age group’s share of the total population will rise to nearly 24% from 15%.

What’s in Store for Self-Storage?

July 20, 2017

What’s in Store for Self-Storage? July 21, 2017 | by Beth Glavosek | Blue Vault Whether it’s for extra space for a college kid returning home or it’s finding temporary storage for grandma’s estate, it’s clear that self-storage is a need that’s here to stay. Currently, about one in every 10 households rents a self-storage unit …

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A Primer on Student Housing

July 13, 2017

A Primer on Student Housing July 14, 2017 | by Beth Glavosek | Blue Vault Did you know that student housing is a robust and still-developing sector of real estate? Some real estate operators are acquiring older student housing developments and modernizing them, while others are building brand-new housing that meets the expectations of today’s students. …

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A Basic Overview of Commercial Real Estate Leases

July 7, 2017

A Basic Overview of Commercial Real Estate Leases July 7, 2017 | by Beth Glavosek | Blue Vault Occupancy and tenant relationships are an important part of commercial real estate ownership. The structures of tenant leases can vary, depending upon who is expected to bear certain costs. According to Certified Commercial Investment Member (CCIM) authors, versions …

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What are Cap Rates?

June 29, 2017

What are Cap Rates? June 30, 2017 | by Beth Glavosek | Blue Vault If you spend any time around commercial real estate professionals, chances are good that you’ll hear the term ‘cap rate.’ Short for capitalization rate, the term offers a metric for a real estate asset’s performance. Cap rates’ ups and downs are a …

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What’s New with the DOL Fiduciary Rule?

June 23, 2017

What’s New with the DOL Fiduciary Rule? June 23, 2017 | by Beth Glavosek | Blue Vault  Have you been keeping up with the status of the Department of Labor’s (DOL) Fiduciary Rule? After years of contentious debate between government regulators and financial industry professionals, the controversial ruling basically went dormant for a while after President …

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Advisors’ Perspectives: What are the Cons to Alternatives?

June 16, 2017

Advisors’ Perspectives: What are the Cons to Alternatives? June 16, 2017 | by Beth Glavosek | Blue Vault We’ve been looking at the pros and cons of nontraded REITs and other alternative investments from advisors’ viewpoints. We heard from several independent Broker Dealer (IBD) sales and marketing executives that alternative investments are showing a lot of …

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Advisor's Perspectives: What are the Pros to Alternatives?

June 9, 2017

Advisor's Perspectives: What are the Pros to Alternatives? June 9, 2017 | by Beth Glavosek | Blue Vault We’ve been looking at the pros and cons of nontraded REITs and other alternative investments from an investor’s standpoint. But, how are advisors and Broker Dealers feeling about them these days? We spoke with independent Broker Dealer …

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Nontraded REIT Pros and Cons – Putting it All Together

May 26, 2017

Nontraded REIT Pros and Cons – Putting it All Together May 26, 2017 | by Beth Glavosek | Blue Vault We’ve been looking at the pros and cons of nontraded REITs for individual investors. To sum things up, nontraded REITs may be appropriate for investors who can set aside a portion of their investment holdings (usually …

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What are Some ‘Cons’ to Owning Nontraded REITs?

May 19, 2017

What are Some ‘Cons’ to Owning Nontraded REITs? May 19, 2017 | by Beth Glavosek | Blue Vault We’ve been looking at the merits of nontraded REITs for individual investors, including the opportunity for potentially higher yields, dividend distributions, diversification, a potential inflation hedge, and owning high quality, commercial grade, professionally managed properties. However, as with …

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The $19.5 Billion Dollar Industry No One Was Paying Attention To:

May 16, 2017

The $19.5 Billion Dollar Industry No One Was Paying Attention To: Interval and Closed-End Funds May 16, 2017 | by Jared Schneider | Blue Vault Recent headlines have continued to talk about the decline in sales of some alternative investment types, but what is not discussed is the growth in other alternative investments. For example, the …

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Benefits of Nontraded REITs

May 11, 2017

Benefits of Nontraded REITs May 12, 2017 | by Beth Glavosek | Blue Vault Last week, we discussed the features of nontraded REITs that make them an attractive consideration for investors, including potentially higher yields and dividend opportunities. They also can give investors a chance to diversify into a different sector than traditional asset classes, …

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New Series: Why Nontraded REITs?

May 5, 2017

New Series: Why Nontraded REITs? May 5, 2017 | by Beth Glavosek | Blue Vault If you’re new to the concept of nontraded alternative investments, you may be wondering why financial advisors turn to these products as part of their investment recommendations. The following are some of the features that set nontraded REITs apart:  Potentially …

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NTR and BDC March Sales Recover

April 27, 2017

NTR and BDC March Sales Recover April 28, 2017 | by by Beth Glavosek | Blue Vault In March, we witnessed a significant one-month recovery in sales of nontraded REITs (NTRs) and Business Development Companies (BDCs). NTR sales in March were $622.6 million and BDC sales were $94.1 million, according to Blue Vault research. What accounts …

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Crowdfunding—a Viable Source of Capital?

April 13, 2017

Crowdfunding—a Viable Source of Capital? April 14, 2017 | by Beth Glavosek | Blue Vault In October 2015, the U.S. Securities and Exchange Commission (SEC) adopted final rules to permit companies to offer and sell securities through “crowdfunding.” Mary Jo White, SEC Chair at the time, stated, “There is a great deal of enthusiasm in …

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What are Subordinated Investments?

April 6, 2017

What are Subordinated Investments? April 6, 2017 | by Beth Glavosek | Blue Vault The topic of fiduciary responsibility is on everyone’s minds this year. One unique approach to protecting investors’ interests is subordinated co-investing. It’s one possible way to address the mandates for transparency and fiduciary responsibility imposed by FINRA’s 15-02 rule and the …

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Traditional vs. Daily NAV REITs

March 30, 2017

Traditional vs. Daily NAV REITs March 30, 2017 | by Beth Glavosek | Blue Vault Traditionally, nontraded REITs have been designed to follow a predictable life cycle. These investments move through distinct developmental stages over time as they grow from inception to maturity. The nontraded REIT’s ultimate goal is to create a liquidity event for …

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NAV in the Nontraded REIT World

March 24, 2017

NAV in the Nontraded REIT World March 24, 2017 | by Beth Glavosek | Blue Vault Important regulatory changes have led the nontraded REIT industry to improve its reporting of net asset values (NAV) per share. It’s a relatively new concept for nontraded investments. NAV reporting has increased as a result of FINRA Regulatory Notice …

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What’s in Store at Summit 2017?

February 28, 2017

What’s in Store at Summit 2017? February 28, 2017 | by Beth Glavosek | Blue Vault   The 2017 Blue Vault Broker Dealer Educational Summit is just around the corner now that March is here. Have you marked your calendar for March 13-15, 2017? The Summit will be held at the Ritz-Carlton in downtown Atlanta. Broker …

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NASAA Guidelines

February 23, 2017

NASAA Guidelines February 23, 2017 | by Beth Glavosek | Blue Vault In July 2016, the North American Securities Administrators Association (NASAA) issued a request for public comment regarding an amendment to its policy on REITs. The proposal would add a uniform concentration limit of 10% of an individual’s liquid net worth, applicable to their aggregate …

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It’s a Fiduciary World After All

February 16, 2017

It’s a Fiduciary World After All February 16, 2017 | by Beth Glavosek | Blue Vault   The Department of Labor (DOL) Fiduciary rule conversation appears far from over now that new executive orders have potentially halted the rule’s implementation. As reported last week, President Donald Trump ordered the Labor Department to sideline the fiduciary rule …

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“Usually change is good, and that’s a good thing...”

January 30, 2017

“Usually change is good, and that’s a good thing...” Blue Vault’s 3rd Annual Summit January 30, 2017 | Stacy Chitty | Blue Vault Blue Vault’s 3rd annual educational Summit will be held March 13-15. The purpose of the meeting is to give leading alternative investment product sponsors, including those offering nontraded REITs, nontraded BDCs, Interval Funds, …

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Common Questions about IFCEFs

January 26, 2017

Common Questions about IFCEFs January 26, 2017 | by Beth Glavosek | Blue Vault Over the past year, Blue Vault has more closely tracked the sales of Interval Funds and nontraded Closed-End Funds (IFCEFs) and now includes their data in its research reports.   The following are common questions we hear about these types of investments:  …

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DOL Fiduciary Rule Challenged Again

January 18, 2017

DOL Fiduciary Rule Challenged Again January 20, 2017 | by Beth Glavosek | Blue Vault The Department of Labor’s long-debated Fiduciary Rule is once again being challenged by a group of lawmakers who say that the regulation is burdensome and costly. Congressman Joe Wilson (R-SC) with support from several national organizations has introduced a new …

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Nontraded REIT Industry Review - LifeStage™ Summary

January 12, 2017

Nontraded REIT Industry Review - LifeStage™ Summary January 12, 2017 | by Laurie Brescia | Blue Vault In each quarter's Nontraded REIT Industry Review you will find... a host of Nontraded REIT Industry data and charts preceding the individual REIT pages. Some of the data is in the "LifeStage™ Summary". In the Q3 2016 Review: Five REITs were Emerging …

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Nontraded BDCs Post Annualized Return of 14.7%

December 9, 2016

Nontraded BDCs Post Annualized Return of 14.7% December 9, 2016 | Blue Vault Nontraded BDCs this year have produced a median annualized return of 14.7%. Through the end of September 2016, BDCs have performed exceptionally well despite the slowest capital raise in four years. "Unfortunately, many investors are missing out on these returns because financial …

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Understanding Asset Management Fees

December 1, 2016

Understanding Asset Management Fees December 1, 2016 | by Beth Glavosek | Blue Vault Asset management fees (also known as Advisory Fees) are ongoing fees charged to investors in nontraded REIT programs. These fees accrue monthly or quarterly and are based on the sponsor’s definition of asset totals. While Blue Vault’s recent Fee Study found …

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ICYMI

November 22, 2016

In Case You Missed It... November 25, 2016 On November 9th, Blue Vault released it's first Nontraded REIT Fee Study. In the weeks leading up to and during the time of release, Blogs were posted to compliment this new study as well some timely commentary on current events. Here is a look at those posts: …

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Curious about Secondary Markets?

November 18, 2016

Curious about Secondary Markets? November 18, 2016 | by Beth Glavosek | Blue Vault One of the aspects of nontraded investments that investors must understand is the issue of illiquidity. That is, the intention of most nontraded programs is that investors will commit their money to the long-term and be able to give up access …

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The Future of Acquisition and Disposition Fees

November 16, 2016

The Future of Acquisition and Disposition Fees November 16, 2016 | by Beth Glavosek | Blue Vault Acquisition and disposition fees have long been a part of many nontraded REIT sponsors’ programs. The fees presumably cover costs related to acquisition and disposition activity. One sponsor, for example, states in its prospectus that it will pay …

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What’s Next for the DOL Fiduciary Rule?

November 11, 2016

What’s Next for the DOL Fiduciary Rule? October 11, 2016 | by Beth Glavosek | Blue Vault With the results of the U.S. election in, there’s already speculation about the future of the Department of Labor (DOL) fiduciary rule that was finalized last year. Some are defending the rule, while others are hoping it will …

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Different Types of Fees and How They Impact Shareholders – Part 3

November 3, 2016

Different Types of Fees and How They Impact Shareholders – Part 3 November 3, 2016 | by Beth Glavosek | Blue Vault The following descriptions and definitions can help both financial advisors and investors alike to understand the various fees that impact shareholders in nontraded REITs, from the initial public offering of common shares until …

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Different Types of Fees and How They Impact Shareholders – Part 2

October 27, 2016

Different Types of Fees and How They Impact Shareholders – Part 2 October 28, 2016 | by Beth Glavosek | Blue Vault The following descriptions and definitions can help both financial advisors and investors alike to understand the various fees that impact shareholders in nontraded REITs, from the initial public offering of common shares until …

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Different Types of Fees and How They Impact Shareholders

October 20, 2016

Different Types of Fees and How They Impact Shareholders October 20, 2016 | by Beth Glavosek | Blue Vault The following descriptions and definitions can help both financial advisors and investors alike to understand the various fees that impact shareholders in nontraded REITs, from the initial public offering of common shares until the full-liquidity event. …

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What’s Up (or Down) with Fees?

October 12, 2016

What’s Up (or Down) with Fees? October 12, 2016 | by Beth Glavosek | Blue Vault The introduction of Class T shares has had an interesting impact on the nontraded REIT industry from a sales perspective and distribution yield perspective. As we’ve discussed previously, the T share was introduced in response to investor concerns about …

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Blue Vault’s Second Quarter Report – What’s New?

September 30, 2016

Blue Vault’s Second Quarter Report – What’s New? Blue Vault has released its Second Quarter 2016 Nontraded REIT Industry Review. Here are some key findings from our research: Sales by nontraded REITs totaled an estimated $1.09 billion, down from the $2.35 billion recorded in Q1 2016. This number is more than 57% below the average …

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Essential Documents in the Due Diligence Process

September 23, 2016

Essential Documents in the Due Diligence Process September 23, 2016 | by Beth Glavosek and Alan Royalty | Blue Vault and Blue Vault Due Diligence In the world of investments, due diligence describes the duty of care and review to be exercised in connection with evaluating public offerings of securities.[1] With regard to alternative investments, …

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Getting Started with the Due Diligence Process

September 15, 2016

Getting Started with the Due Diligence Process September 16, 2016 | by Beth Glavosek, in collaboration with Alan Royalty and Scott Brown | Blue Vault and Blue Vault Due Diligence Services In a previous blog post, we highlighted the importance of using due diligence to make informed decisions. For Independent Broker Dealers in particular, due …

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Due Diligence Basics

September 9, 2016

Due Diligence Basics The first in a series of blog posts and other educational content produced as a collaboration with Blue Vault Staff writer, Beth Glavosek, and Blue Vault Due Diligence partners, Alan Royalty and Scott Brown. September 9, 2016 | By Beth Glavosek | Blue Vault According to Merriam-Webster, the term ‘due diligence’ has …

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A Closer Look at Today’s 1031 Exchanges – Part 2

August 24, 2016

A Closer Look at Today’s 1031 Exchanges – Part 2 August 24th, 2016 | by Beth Glavosek | Blue Vault   In last week’s post, we discussed how 1031 exchanges can benefit investors looking to defer a sizable tax burden on appreciated investment property. 1031s allow taxes on gains to be deferred when the proceeds …

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A Closer Look at Today’s 1031 Exchanges – Part 1

August 19, 2016

A Closer Look at Today’s 1031 Exchanges – Part 1 August 19, 2016 | by Beth Glavosek | Blue Vault Editor’s note: Last week, we reported that most 1031s are structured as a Tenants-in-Common (TIC) arrangement. TICs were popular at one time; however, the Delaware Statutory Trust (DST) is a more favored structure today. As …

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1031 Exchanges – What are They and How Do They Work?

August 10, 2016

1031 Exchanges – What are They and How Do They Work? Part two in a series on private placements. August 09, 2016 | by Beth Glavosek | Blue Vault 1031 exchanges can be helpful for people selling a piece of business or investment property. If they expect to sell the property for more than they …

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Brushing Up on Private Placements

August 3, 2016

Brushing Up on Private Placements August 3, 2016 | by Beth Glavosek | Blue Vault Although private investments into companies have existed for hundreds of years, the Securities Act of 1933 set the rules for modern-day private placements. Depending on net worth and risk tolerance, private placements can be a good choice for investors seeking capital …

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Sales of T Shares May be Bright Spot in Nontraded REIT Market

July 27, 2016

Sales of T Shares May be Bright Spot in Nontraded REIT Market Share Classes Blog Series - Part Four July 27, 2016 | By Beth Glavosek | Blue Vault It’s no secret that nontraded REIT sales have slowly tapered off since hitting a high of $6.5 billion in the third quarter of 2013. In the …

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Understanding the World of Share Classes

July 6, 2016

Understanding the World of Share Classes Part One in a Four-Part Series on Share Classes From ABC to Z, the variety of share classes in the investment world seems to have proliferated across the entire alphabet. The differences in share classes really boil down to one thing: fees and expenses that provide compensation for those …

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Interactive Banking – How Digital Banking Will Affect Branch Bank Real Estate

March 1, 2016

Guest Blog - Written By Ira Bellinkoff ira@edgerealtyadvisors.com Banks are modernizing by embracing technology, providing more interactive customer experiences and conducting the same amount of work in a branch with a smaller footprint. Large, regional, and local banks are updating the traditional teller counter to provide a more self-service experience, opting instead for multiple kiosk-type stations …

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Traded REIT Premiums and Discounts to NAVs – Reading the Tea Leaves

March 19, 2015

Full-cycle events within the nontraded REIT sector provide interesting and potentially valuable insights.  Whenever a nontraded REIT lists its shares on a public exchange, or merges with a listed company, the market valuation of its shares is revealed after years of reporting share prices based upon the original issue price or subsequent “NAV” reports based …

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What’s MFFO and Why Should I Care?

October 23, 2014

In investing as in sports, a few people tend to focus on statistics while most don’t, but we all care about winning and losing. There are some numbers that reveal a lot about whether we’re winning or losing, and some numbers that only the “stats geeks,” or in the case of investing, the analysts, seem …

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In a League of Their Own

October 10, 2014

Real estate cycles and the stock market do not move in lockstep with one another. And while there may be a few good reasons to use publicly traded REIT indexes as a comparison for nontraded REIT performance, the values of nontraded REITs are more closely tied to the real estate cycle. As a result, direct …

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Blue Vault Questions Investment News Article

September 24, 2014

In the article written by Bruce Kelly of InvestmentNews on September 17, 2014, titled “Nontraded REITs stack up well compared with traded REITs,” he states that an August 2014 Green Street Advisors study is the “first to track nontraded REIT performance in comparison with their traded counterparts.” Unfortunately, Mr. Kelly forgot to check his facts …

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Blue Vault LifeStages 101

August 7, 2014

When considering an investment in nontraded REITs, both investors and financial advisors need to be aware that these investment vehicles move through distinct developmental stages over time as they grow from inception to maturity. As a result, their performance characteristics more closely mirror those of direct property investments, private equity, and other illiquid vehicles. In …

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Franklin Square to List First Nontraded BDC on the NYSE

March 13, 2014

Franklin Square recently announced that it will be listing its first nontraded BDC, FS Investment Corp., on the New York Stock Exchange under the symbol “FSIC.. It is expected to list in April 2014. FSIC was the first nontraded business development company (BDC) product in existence. Launched in 2009, FS Investment Corp. is a partnership …

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Fundraising Does Not Equal Performance

November 26, 2013

Pick any article published about, nontraded REITs within the past year and most likely the primary focus of the article will be about how much money the industry has raised. Over and over again, we continue to see a significant amount of emphasis placed on this topic and are troubled by the suggestion that fundraising …

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BDCs - A Primer

August 22, 2013

Blue Vault has formed a strategic alliance with Blue Springs Capital to launch a new report that will  monitor and analyze the performance of nontraded Business Development Companies (BDC). Created for the purpose of providing education and enhanced transparency for the nontraded REIT industry, Blue Vault is expanding the firm’s research of nontraded investment products …

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When One Door Closes....

June 27, 2013

The pace of nontraded REIT offering closings has accelerated significantly over the past six months.  In fact, through June 2013, there have been a total of ten offerings that have closed to new investments compared to eight offerings that closed during all of 2012. While some might have their concerns about this recent trend, these …

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The FFO and MFFO Debates

February 13, 2013

Ask anyone in the real estate investment industry and they will tell you that the metric known as “Funds from Operations,” or FFO, is not perfect.  In fact, there has been an ongoing debate within the publicly traded REIT community for years on this very topic. The FFO metric was originally adopted by the National …

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The New Kids on the Block

January 9, 2013

As we welcome in a new year, last week the nontraded REIT industry welcomed its newest member and the eighth offering to incorporate a daily pricing model.  Continuing with a trend that began in 2011 and maintained momentum throughout 2012, as of January 8th, daily priced nontraded REITs represent more than a third of all …

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One Bad Apple Doesn’t Always Spoil the Whole Bunch

October 23, 2012

Nontraded REITs continue to get a bad reputation as a result of fines and sanctions like the one just handed down by FINRA against David Lerner Associates.  On the whole however, sponsors of nontraded REITs and the broker/dealers that distribute them are among the most highly regulated groups operating in the securities industry today. For example, …

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Corporate Property Associates 15 Completes its Full-Cycle Event

October 10, 2012

After a quiet 2011, the nontraded REIT industry has responded with several full-cycle events such as the listing of American Realty Capital Trust (NASDAQ: ARCT), Healthcare Trust of America (NYSE: HTA) and Retail Properties of America (NYSE: RPAI). With the merger of Corporate Property Associates 15 Inc. (CPA 15), into W.P. Carey & Co., LLC, …

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Welcome to the Blue Vault Blog

September 27, 2012

Since the beginning of 2009, the industry has introduced 45 new nontraded REIT offerings, seen seven full-cycle events, and has grown to an almost $80 billion industry.  In addition, sponsors of new offerings continue to improve investment strategies, introduce innovative product designs, and provide fee enhancements for the benefit of investors.  And throughout this period, …

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The time (at Blue Vault's 2nd Annual Broker Dealer Educational Summit) proved extremely informative.

Derek Hayes Analyst, Cambridge Investment Research Broker Dealer Educational Summit 2016 May 30, 2016