March 2021 Nontraded REIT Capital Raise Increases 116% for Reporting Offerings
April 12, 2021 | James Sprow | Blue Vault
Blue Vault received March sales totals for 10 effective nontraded REIT program offerings as of April 12, 2021. Sales reported by those 10 NTRs totaled $260.96 million compared to $123.21 million for the 10 reporting REITs in February, an increase of $137.76 million, or 112%. Cottonwood Communities did not have sales in March. Four additional nontraded REITs have previously suspended their offerings or did not report sales for March (Griffin Capital Essential Asset REIT, Hartman vREIT XXI, Moody National REIT II, and Strategic Storage Trust IV).
Black Creek Industrial REIT IV’s offering led the 10 reporting NTRs with sales of $89.79 million, up 168% from $33.52 million in February. Nuveen Global Cities REIT raised $53.87 million in March, up 77% from $30.52 million in February. Hines Global Income Trust raised $41.91 million, up 341% from $9.51 million in February. Jones Lang LaSalle Income Property Trust raised $30.69 million, up 60% from February when it raised $19.14 million. All sales reported include distributions reinvested in shares of the REIT (DRIP).
Table I shows month-to-month comparisons for those REITs reporting sales for March 2021.
Table II shows March Y-O-Y comparisons for 15 nontraded REITs that have reported sales either in March 2020 or March 2021, or both. The most significant Y-O-Y increase was for Nuveen Global Cities REIT, with almost 19 times the capital raised in March 2020. Other REITs with significant Y-O-Y increases were FS Credit Real Estate Income Trust (+72%), Hines Global Income Trust (+41%), and Black Creek Diversified Property Fund (+24%).
Nontraded BDC Sales
Two nontraded BDCs were raising funds in March 2021 and reported sales to Blue Vault. Owl Rock Capital Corporation II raised $51.88 million, up 163% from $19.68 million in February. Owl Rock Core Income Fund raised $13.88 million in March, up 69% from $8.24 million in February. MacKenzie Realty Capital last reported nontraded BDC sales in October 2020 of $48,700 but did not report sales for November thru March. Triton/Prospect’s TP Flexible Income Fund reported sales for October 2020 of $25,000 but did not report sales for November thru March. The total capital raise reported for the only two nontraded BDCs for March 2021 was $65.76 million, all by Owl Rock Capital Advisor’s BDCs, compared to $27.92 million reported by those two BDCs for February 2020, an increase of 136%.
Nontraded Preferred Stock Issued by Reporting Sponsors
Four listed REITs reported their nontraded preferred stock issuances in March 2021 to Blue Vault. Bluerock Residential Growth REIT issued $37.34 million of its preferred stock in March, up 20% from $31.01 million in February. Preferred Apartment Communities issued $21.73 million in two series of preferred shares in February, but did not report sales for March. Prospect Capital issued $43.28 million of nontraded preferred in March, up 559% from $6.57 million issued in February. Gladstone LAND issued of $4.68 million in nontraded preferred in February 2021, and that increased 18% in March to $5.51 million. Altogether, the four companies reported issuing $88.11 million in nontraded preferred shares in March, up 33% from the total for the six listed REITs of $66.07 million in February. In March 2020 five listed REITs reported sales of $62.89 million in nontraded preferred stock, for a Y-O-Y increase of 33% to the March 2021 total of $88.11 million, despite only four listed REITs reporting their nontraded preferred sales in March.
Source: Blue VaultGo Back
I have been using Blue Vault Partners for the past five years. I have found them to be a valuable, unbiased resource when it comes to evaluating and comparing non-traded REITs. The reports help me analyze which sponsors are doing a responsible job of managing their offerings. This allows me to limit my REIT recommendations to only the most competitive products, and then track those REITs throughout their life cycle.