May 2023 Reported Nontraded REIT Sales Up 11.3% from April 2023
June 26, 2023 | James Sprow | Blue Vault
Blue Vault received April 2023 sales totals for ten nontraded REIT program offerings as of June 25, 2023. Sales reported by those ten NTRs totaled $198.4 million, up 11.3% from $178.2 million in April for the same ten NTRs, and down 68% Y-O-Y from the $627.9 million in sales in May 2022. FS Credit Real Estate Income Trust led the reporting REITs once again with $91.4 million in May, up 42% from $64.3 million in April. Next was Nuveen Global Cities REIT with $32.5 million, up 86% from the REIT’s April sales of $17.4 million. Hines Global Income Trust posted sales of $23.7 million in May, down 18% from the REIT’s April total of $29.0 million. Ares Industrial REIT raised $20.5 million, down 28.5% from $28.7 million in April. Nuveen Global Cities REIT and FS Credit REIT were the only two NTRs with increases in sales from April.
Table I
All capital raise figures for these nontraded REITs include DRIP proceeds.
Chart I NTR Sales
Sales in the chart do not include capital raised by Apollo Realty Income Solutions, Blackstone REIT, Starwood REIT, Brookfield REIT, and Invesco REIT. Those five REITs raised an estimated $5.487 billion in Q1 2023 and raised capital with equity sales in April 2023 but did not report to Blue Vault. Blackstone REIT raised $5.29 billion (including DRIP) in Q1 2023, followed by Starwood REIT with $157.6 million, Brookfield REIT with $30.3 million and Invesco REIT with $13.0 million.
Estimated Common Stock Issuances by Blackstone REIT and Starwood REIT
Using the monthly 424b3 filings by Blackstone REIT and Starwood REIT, we can plot the estimated number of common shares issued by the two nontraded REITs. The data bridge two offerings for each REIT, so some discontinuity in the monthly totals may show up in the series. Blackstone REIT appears to have issued the most shares over the time period in March 2022, while Starwood REIT issued its highest total in December 2021. Both REITs reported significant drops in common share issuances over the last eight to twelve months. Both REITs have also been subject to a large volume of redemptions requests, reaching their monthly limits of 2% of total NAV in November and December 2022 and pro-rating the number of share redemptions fulfilled in November 2022 thru May 2023 in the case of Blackstone REIT. Shareholders who wished to redeem shares in May 2023 will have to re-submit their redemption requests each month as the pro-rated fulfillments reach monthly limits. The REIT received redemption requests totaling $4.4 billion in May, down 4% from April.
Chart II Blackstone REIT Stock Issuances
Chart III Starwood REIT Stock Issuances
Y-O-Y NTR Capital Raise Comparisons
Year-over-year comparisons show capital raised by same-store reporting nontraded REITs was down 68%.
Table II
Nontraded BDC Capital Raise thru May 2023
Only one nontraded BDC was raising funds and reported to Blue Vault for May 2023. Blue Owl Capital Inc. (formerly Owl Rock Capital Advisors) reported $270.5 million in equity capital raised by one BDC in May 2023, up 3.8% from the April total of $260.6 million for Owl Rock Core Income Corp. Blackstone’s nontraded BDC, Blackstone Private Credit Fund, was also raising capital but did not report its sales to Blue Vault. As of May 31, 2023, the Blackstone BDC’s aggregate NAV was $24.0 billion. Quarterly capital raise for the two Owl Rock nontraded BDCs since Q1 2022 are shown below thru May 2023 totals.
Chart IV Nontraded BDC Sales
Interval and Tender Offer Fund Sales Reported to Blue Vault for May
A total of fourteen Interval Funds and Tender Offer Funds reported their capital raise for May 2023 to Blue Vault. Bluerock Total Income+ Real Estate Fund led the group, raising $58.6 million, up 14% from the $51.6 million total for April. The 14 funds that reported had total capital raise of $231.7 million, up 5% from the $221.1 million raised by 14 funds in April 2023. The total raised by these funds exceeded the $198.4 million raised by the reporting NTRs.
Table III
Listed REITs and BDCs with Nontraded Preferred Stock Issuances
Blue Vault has received sales reports from four listed REITs and a listed BDC that issued nontraded preferred stock in May 2023. Leading the group was the listed BDC Prospect Capital with $38.1 million in preferred stock issuances, up 6.8% from the $35.6 million April total. Ashford Hospitality Trust issued $12.9 million, up 60.0% from $8.1 million in April. Creative Media & Community Trust Corp decreased their issuances 68.6% to $4.3 million from $13.7 million in April. For all five listed funds that issued nontraded preferred and reported to Blue Vault, the total was $57.6 million, down 1.1% from the the April total of $58.2 million reported by the same funds.
Table IV
Sources
SEC, Blue Vault
