Blue Vault Releases Its 6th Edition Nontraded REIT Full-Cycle Performance Study
March 18, 2020
ATLANTA (March 18, 2020) – Blue Vault, a leading independent alternative investments research and education firm, has released its 6th Edition Nontraded REIT Full-Cycle Performance Study to assess the performance of nontraded real estate investment trusts (REITs) that have provided shareholders with full liquidity.
“We’re pleased to provide this full-cycle study — the only one of its kind in the alternative investment industry — to help financial advisors and investors make more informed investment decisions and understand how their investments perform in relation to other benchmarks,” said Stacy Chitty, managing partner of Blue Vault. Since publishing its first edition in June 2012, Blue Vault’s analysis of full-cycle events in the nontraded REIT (NTR) industry now totals 66 REITs covering the period between April 1997 to December 2019.
This sixth-edition study includes 10 full-cycle events that were completed between Jan. 1, 2018 and Dec. 31, 2019. Full-cycle events in the NTR industry occur when a REIT completes a listing of its common stock on a public exchange, is acquired by or merges with another entity, or completely liquidates its real estate portfolio.
“A full-cycle event is extremely important to take note of, because it provides shareholders with the opportunity to completely liquidate their common stock holdings for the first time,” explained James Sprow, senior vice president of research at Blue Vault and co-author of the study. “While nontraded REITs typically offer above-average distribution yields, their performance can’t be fully assessed until their shareholders experience a full-cycle exit event that provides them with full liquidity.”
The study updates results from the 2018 fifth edition study, utilizes custom benchmarks designed to match the individual REIT portfolios in asset type and geographic diversification, and answers questions like:
• How did the average returns to shareholders in all NTRs that have completed full-cycle events differ between those who did not reinvest distributions and those who invested all distributions in additional shares of common stock?
• How did the average returns to shareholders in all NTRs that have completed full-cycle events compare with the returns to shareholders in traded REITs over matched holding periods, adjusted for asset types, leverage and costs of debt?
• How did the average returns to shareholders in all NTRs that have completed full-cycle events compare with total returns on the S&P 500 Index and yields on intermediate-term Treasury bonds over matched holding periods?
• Did the average returns to NTR shareholders differ significantly depending on the timing of their investments made during their respective public offering periods?
• How did shareholders who redeemed shares via share redemption programs fare compared with investors who held shares until the full-cycle event?
The 6th Edition Nontraded REIT Full-Cycle Study is available to Blue Vault annual subscribers at no additional cost. Click here to view the study.
About Blue Vault
Blue Vault is the premier educational center for alternative investments. Its mission is to help educate wealth advisors and protect investors. Since 2009, Blue Vault has been trusted by financial advisors, wealth managers, broker-dealers, asset managers, investment bankers, and other industry participant affiliates to provide the financial profession’s most in-depth and thorough research and analysis available on alternative investments, including nontraded REITs, nontraded BDCs, closed-end funds, interval funds, and private offerings. To learn more, visit BlueVaultPartners.com.
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