The pace of nontraded REIT offering closings has accelerated significantly over the past six months. In fact, through June 2013, there have been a total of ten offerings that have closed to new investments compared to eight offerings that closed during all of 2012. While some might have their concerns about this recent trend, these…
REIT Industry Update
The FFO and MFFO Debates
Ask anyone in the real estate investment industry and they will tell you that the metric known as “Funds from Operations,” or FFO, is not perfect. In fact, there has been an ongoing debate within the publicly traded REIT community for years on this very topic. The FFO metric was originally adopted by the National…
The New Kids on the Block
As we welcome in a new year, last week the nontraded REIT industry welcomed its newest member and the eighth offering to incorporate a daily pricing model. Continuing with a trend that began in 2011 and maintained momentum throughout 2012, as of January 8th, daily priced nontraded REITs represent more than a third of all…
One Bad Apple Doesn’t Always Spoil the Whole Bunch
Nontraded REITs continue to get a bad reputation as a result of fines and sanctions like the one just handed down by FINRA against David Lerner Associates. On the whole however, sponsors of nontraded REITs and the broker/dealers that distribute them are among the most highly regulated groups operating in the securities industry today. For example,…
Corporate Property Associates 15 Completes its Full-Cycle Event
After a quiet 2011, the nontraded REIT industry has responded with several full-cycle events such as the listing of American Realty Capital Trust (NASDAQ: ARCT), Healthcare Trust of America (NYSE: HTA) and Retail Properties of America (NYSE: RPAI). With the merger of Corporate Property Associates 15 Inc. (CPA 15), into W.P. Carey & Co., LLC,…
Welcome to the Blue Vault Blog
Since the beginning of 2009, the industry has introduced 45 new nontraded REIT offerings, seen seven full-cycle events, and has grown to an almost $80 billion industry. In addition, sponsors of new offerings continue to improve investment strategies, introduce innovative product designs, and provide fee enhancements for the benefit of investors. And throughout this period,…
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