May 2021 Nontraded REIT Capital Raise Increases 6.0% for Reporting Offerings
June 11, 2021 | James Sprow | Blue Vault
Blue Vault received May sales totals for 11 effective nontraded REIT program offerings as of June 10, 2021. Sales reported by those 11 NTRs totaled $380.25 million compared to $358.58 million for the 10 reporting REITs in April, an increase of $21.67 million, or 6.0%. Five additional nontraded REITs have previously suspended their offerings or did not report sales for April (Cottonwood Communities, Griffin Capital Essential Asset REIT, Moody National REIT II, and Strategic Storage Trust IV).
Black Creek Industrial REIT IV’s offering again led the 11 reporting NTRs with sales of $189.24 million, up 14% from $165.90 million in April. FS Credit Real Estate Income Trust raised $51.46 million, up 1.2% from April’s $50.86 million. Hines Global Income Trust raised $46.92 million, up 43% from $32.80 million in April. Jones Lang LaSalle Income Property Trust raised $29.64 million, up 5.5% from April when it raised $28.10 million. Nuveen Global Cities REIT raised $27.38 million in May, down 39% from $45.14 million in April. 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 May 2021.
Table II shows May Y-O-Y comparisons for 12 nontraded REITs that have reported sales either in May 2020 or May 2021 or both. The most significant Y-O-Y increases were for FS Credit Real Estate Income Trust (+1657%), Hines Global Income Trust (1186%), Black Creek Industrial REIT IV (+610%), and Nuveen Global Cities REIT (+575%). Other REITs with significant Y-O-Y increases were Black Creek Diversified Property Fund (+368%), Cantor Fitzgerald Income Trust (+367%), Jones Lang LaSalle Income Property Trust (+186%), and RREEF Property Trust (+47%).
Nontraded BDC Sales
Just one nontraded BDC was raising funds in May 2021 and reported sales to Blue Vault. Owl Rock Core Income Fund raised $45.77 million in May, down 16% from $54.49 million in April. Owl Rock Capital Corporation II closed its offering in April 2021 after sales of $17.46 million that month. MacKenzie Realty Capital last reported nontraded BDC sales in October 2020 of $48,700 and closed its offering in December 2020. MacKenzie recently changed its legal structure to a nontraded REIT. Prospect Flexible Income Fund last reported sales for October 2020 of $25,000 and closed its offering in February 2021. The total capital raise reported for the one nontraded BDC for May 2021 was $45.77 million, sponsored by Owl Rock Capital Advisors, compared to $71.96 million reported by their two BDCs for April 2021, a decrease of 36.4%.
On a quarterly basis, Owl Rock BDCs raised a five-quarter total of $468.68 million from Q1 2020 through Q1 2021. Table III and the accompanying chart show quarterly totals for reporting nontraded BDCs.
Nontraded Preferred Stock Issued by Reporting Sponsors
Four listed REITs reported their nontraded preferred stock issuances in May 2021 to Blue Vault. The four listed REITs reported total sales of nontraded preferred in May of $110.34 million, up 25.9% from $87.65 million in April. Bluerock Residential Growth REIT issued $75.23 million of its preferred stock in May, up 73.6% from $43.34 million in April. Preferred Apartment Communities issued just $9.81 million in May after raising $28.06 million in April. Prospect Capital issued $20.57 million of nontraded preferred in May, up 50.4% from $13.67 million issued in April. Gladstone LAND issued $4.68 million in nontraded preferred in February 2021, and that increased 18% in March to $5.51 million, but the company has not yet reported sales for April or May. Altogether, the four reporting companies issued $110.34 million in nontraded preferred shares in May, up 25.9% from the total for the four listed REITs of $87.65 million in April. In May 2020 four listed REITs reported sales of $30.03 million in nontraded preferred stock, for a same-month Y-O-Y increase of 267% to the May 2021 total of $110.34 million.
Table IV shows April and May sales of nontraded preferred stock by reporting listed REITs.
Source: Blue Vault
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.