February 2022 Reported Nontraded REIT Sales Up 14.7% from January
March 14, 2022 | James Sprow | Blue Vault
Blue Vault received February 2022 sales totals for ten nontraded REIT program offerings as of March 11, 2022. Sales reported by those ten NTRs totaled $609.4 million, up 14.7% from $531.3 million in January, and up 395% Y-O-Y from the $123.2 million in sales in February 2021. Among reporting nontraded REITs, FS Credit Real Estate Income Trust led the group with $185.8 million in sales, up 38.9% from the sales by the REIT in January. Nuveen Global Cities REIT was next with $118.2 million in February sales, up 59.0% from $74.4 million in January. Hines Global Income Trust reported $103.5 million in sales, up 13.0% from $91.6 million in January. Ares Industrial Real Estate Income Trust (formerly Black Creek Industrial REIT IV) was next with $69.7 million, down 34.8% from $106.9 million in January. Jones Lang LaSalle was fifth with $64.1 million compared to $57.5 million in January, an increase of 11.6%.
All capital raise figures for these nontraded REITs include DRIP proceeds.
Year-over-year comparisons show capital raised by reporting nontraded REITs was up 395%.
Y-O-Y NTR Capital Raise Comparisons
Sales by Blackstone REIT and Starwood REIT Estimated
Although neither Blackstone REIT nor Starwood REIT are reporting monthly sales to Blue Vault, 424b3 SEC filings by these two continuously offered nontraded REITs give data on the status of their public offerings. Using these data, we can estimate their common stock issuances both from the offerings and DRIP reinvestments. By far the largest nontraded REIT is Blackstone, raising a large majority of all capital being raised in the sector. The charts below show the shares issued in their offering. Because the capital raised is reported only in billions, the monthly totals are inexact, but the overall magnitude of their capital raise is evident. For the reports filed 1/18/21 through 2/14/22, Blackstone REIT raised approximately $1.8 billion through the issuance of approximately 129.5 million shares. For reports dated 1/18/22 through 2/11/22, Starwood REIT issued over 23 million shares, raising approximately $615 million.
Nontraded BDC Capital Raise thru February, 2022
Only one nontraded BDC was raising funds and reported to Blue Vault in February 2022. Owl Rock Core Income Corp. had $345.4 million in equity capital raised in February 2022, down 11.8% from the January total of $391.7 million. Blackstone’s nontraded BDC was also raising capital but did not report its sales to Blue Vault.
Listed REITs with Nontraded Preferred Stock Issuances
Blue Vault has received sales reports from seven listed REITs that issue nontraded preferred stock in February. Leading the group was Prospect Capital with $50.2 million in preferred stock issuances, up 76.2% from the $28.5 million January total. Gladstone Land issued $13.8 million in nontraded preferred stock, up 33.2% from the January total. Braemar Hotels & Resorts issued $7.0 million, down 60% from $17.4 million in January. For all seven listed REITs that issued nontraded preferred and reported to Blue Vault, the total was $76.1 million, up 17.8% from the January total of $64.6 million.
Sources: SEC, Blue Vault
