Closed DSTs: The 10 Largest Reported Distribution-Rate Gaps
A comparison of projected and actual distribution rates, including sponsor, property type and equity raised
How closely do reported DST distribution rates track their projections?
Blue Vault reviewed its closed-DST dataset and identified the ten largest absolute differences between projected and actual distribution rates among offerings with nonzero reported rates. All sponsors in the dataset were eligible for inclusion.
The ranking includes differences in both directions. One offering reported an actual distribution rate above projection; the remaining nine reported rates below projection.
The 10 Largest Reported Distribution-Rate Gaps
| Rank | DST Offering | Sponsor | Property Type | Projected Rate |
Actual Rate |
Gap (Percentage Points) |
Equity Raised |
|---|---|---|---|---|---|---|---|
| 1 | National Multifamily Portfolio I DST | Inland | Multifamily | 5.00% | 10.11% | +5.11 | $120,096,882 |
| 2 | NREA Southeast Portfolio Three, DST | NexPoint | Multifamily | 7.99% | 4.64% | −3.35 | $72,403,877 |
| 3 | Sea Glass | Passco | Multifamily | 4.63% | 1.67% | −2.96 | $30,600,000 |
| 4 | Self-Storage Portfolio XV DST | Inland | Self-Storage | 3.75% | 0.83% | −2.92 | $120,065,295 |
| 5 | Tribute at the Rim | Passco | Multifamily | 4.48% | 1.71% | −2.77 | $47,650,000 |
| 6 | Midwest Senior Living Portfolio DST | Inland | Senior Living | 5.75% | 3.00% | −2.75 | $80,925,660 |
| 6 | CF Industry Multifamily DST | Cantor Fitzgerald | Multifamily | 4.25% | 1.50% | −2.75 | $42,020,000 |
| 8 | Lakeside on Riverwatch Apartments, DST10 | Capital Square | Not provided | 4.11% | 1.45% | −2.66 | $26,800,000 |
| 9 | NexPoint Flamingo DST | NexPoint | Multifamily | 6.79% | 4.20% | −2.59 | $58,277,704 |
| 10 | NREA Southeast Portfolio One, DST | NexPoint | Multifamily | 7.63% | 5.14% | −2.49 | $98,108,244 |
How to Read the Table
The gap equals the actual distribution rate minus the projected distribution rate, expressed in percentage points.
A plus sign indicates an actual rate above projection. A minus sign indicates an actual rate below projection. Rankings reflect the absolute size of the difference, regardless of direction. Equal gaps share a rank.
For example, a projected rate of 7.99% and an actual rate of 4.64% produce a gap of −3.35 percentage points.
Equity raised provides offering-size context. It does not explain the distribution gap or establish investment quality.
What Advisors Should Ask Next
A distribution-rate difference provides a starting point for further due diligence. Advisors should ask:
- What reporting period does the actual distribution rate reflect?
- Does the rate include recurring distributions, special distributions or a return of capital?
- What explains the departure from projection?
- What supports the sustainability of distributions?
This is a distribution-rate comparison. Distribution rates are not cumulative cash paid or total returns. The table does not rank sponsor quality, overall investment performance or suitability.
Source, Methodology & Limitations
Source: Blue Vault’s supplied closed-DST workbook. Offering names, sponsor names, equity raises and distribution rates are reproduced as recorded.
Of 441 records, 391 had populated, nonzero projected and actual distribution rates and were eligible for ranking. We excluded 27 records with zero actual distribution rates and 23 missing one or both rates.
All eligible records were ranked by the absolute percentage-point difference between actual and projected distribution rates. No sponsor-specific selection criteria were applied. This is a ranking within the eligible dataset, not across all closed DSTs.
Property types use the workbook’s classifications where populated. Where the field was blank, classifications were assigned from explicit references to “Multifamily,” “Self-Storage” or “Senior Living” in the offering name. “Not provided” indicates that neither the property-type field nor those name-based rules supplied a classification.
The supplied workbook does not identify an as-of date or distribution measurement period. The table therefore reports recorded values without establishing that they represent the same reporting period. “Closed” does not necessarily mean that an investment has completed its full cycle.
Projections are not guarantees, and historical results do not predict future results. This information is provided for educational purposes and is not an investment recommendation.
