NTR Sales Up 3.4% in October While BDC Sales Fall 35%

November 15, 2017 | James Sprow | Blue Vault

Sales by nontraded REITs were up 3.4% in October compared to September. October sales of $291.9 million reported to Blue Vault by nontraded REIT sponsors were up from $282.2 million in September. October sales were 3% below the trailing six-month average for nontraded REIT sales of $300.9 million. When compared to October 2016, the October 2017 sales were down 16% year-over-year.

BDC sales reported in October were $31.5 million, down from $48.6 million in September, and below the $56.9 million trailing six-month average for BDCs. On a year-over-year basis, BDC sales were down 61% in October 2017 compared to October 2016.

Blackstone REIT’s reported sales in October were $142.9 million, up 4.8% from the $136.3 million in September. The Blackstone REIT sales constituted 49% of reported nontraded REIT sales in October, up from the 48% share of nontraded REIT industry sales in September. Blackstone’s share of total nontraded REIT sales was 41% for the trailing six months.

Blue Vault’s Managing Partner, Stacy Chitty, commented, “While Blackstone’s sales continue to shine the brightest, it’s still not fully known how much of their capital raise is attributed to independent BDs yet, so it’s a bit of an apples to oranges comparison right now.  What is not in dispute is that REIT and BDC sales are still much lower than in previous years.  I think the industry would love to know whether sales will ever experience a turnaround even to the more modest capital raise numbers of $6-8 million annually.  And if so, when.“

Among leading sponsors in the nontraded REIT sector in October following Blackstone’s $142.9 million were:

·  Carter Validus $46.0 million
·  Cole Capital $24.3 million
·  Griffin Capital $22.5 million
·  Jones Lang LaSalle $13.4 million

Leading sponsors in the BDC sector for October sales were FS Investments ($9.7 million) and Owl Rock Capital Advisors ($8.4 million). CION Investments had $4.7 million in sales, followed by Terra Capital Partners ($2.9 million) and CNL Financial Group ($2.6 million).

Blue Vault is the leading alternative investment research firm in the independent Broker Dealer industry, covering nontraded REITs, BDCs, and Closed-End Funds, Interval Funds and Private Placement Offerings.