August 2022 Reported Nontraded REIT Sales Down 3.7% From July

September 21, 2022 | James Sprow | Blue Vault

Blue Vault received August 2022 sales totals for eleven nontraded REIT program offerings as of September 16, 2022. Sales reported by those eleven NTRs totaled $536.8 million, down 3.7% from $557.2 million in July, and up 8% Y-O-Y from the $496.3 million in sales in August 2021. Among reporting nontraded REITs, FS Credit Real Estate Income Trust led the group with $150.8 million in sales, up 62.3% from the sales by the REIT in July. Ares Industrial REIT had sales of $112.5 million, down 16.7% from $135.0 million in July. Hines Global Income Trust reported $93.9 million in sales, up 22.1% from $76.9 million in July. Nuveen Global Cities REIT had sales of $63.4 million, down 3.3% from July’s sales of $65.6 million.

All capital raise figures for these nontraded REITs include DRIP proceeds.

Sales in the chart do not include capital raised by Blackstone REIT, Starwood REIT, Brookfield REIT and Invesco REIT. Those four REITs raised an estimated $8.57 billion in Q2 2022 and raised capital with equity sales in August 2022 but did not report to Blue Vault. Blackstone REIT raised $6.67 billion (including DRIP) in Q2 2022, followed by Starwood REIT with $1.80 billion, Brookfield REIT with $91.7 million and Invesco REIT with $13.4 million.

Y-O-Y NTR Capital Raise Comparisons

Year-over-year comparisons show capital raised by reporting nontraded REITs was up 8%.

Nontraded BDC Capital Raise thru August 2022

Only two nontraded BDCs were raising funds and reported to Blue Vault in August 2022. Blue Owl Capital Inc. (formerly Owl Rock Capital Advisors) had $277.9 million in equity capital raised by two BDCs in August 2022, down 25.6% from the July total of $373.7 million. Blackstone’s nontraded BDC was also raising capital but did not report its sales to Blue Vault. Quarterly capital raise for the three reporting nontraded BDCs since Q1 2021 are shown below along with Q3 2022 totals thru August.

Interval and Tender Offer Fund Sales Reported to Blue Vault for August

Eleven funds reported their capital raise for August 2022 to Blue Vault. Bluerock Total Income+ Real Estate Fund raised $304.8 million, up 10% from the $276.7 total for July. Apollo Diversified Real Estate Fund raised $149.5 million, up 49% from the July total of $100.4 million. The eleven funds that reported had total capital raise of $649.6 million, up 9% from the $596.9 million raised by 12 funds in July 2022.

Listed REITs and BDCs with Nontraded Preferred Stock Issuances

Blue Vault has received sales reports from five listed REITs and a listed BDC that issued nontraded preferred stock in August. Leading the group was listed BDC Prospect Capital with $66.4 million in preferred stock issuances, down 60% from the $165.9 million July total. Braemar Hotels & Resorts issued $32.1 million, down 42.5% from $55.7 million in July. Gladstone Land issued $23.5 million in nontraded preferred stock, down 15.6% from the July total. For all five listed funds that issued nontraded preferred and reported to Blue Vault, the total was $140.3 million, down 50.3% from the July total of $282.4 million reported by the funds that reported.

Sources:  SEC, Blue Vault