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Which two nontraded REITs repurchased the highest percentage of weighted average shares outstanding in Q2 2018?

How many nontraded REITs reported an increase in EBITDA between Q1 2018 and Q2 2018?

September 18, 2018

Answer:  Of the 63 nontraded REITs reporting EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for Q2 2018, 42 reported increases. The 63 REITs had total EBITDA of $1.32 billion for Q2 2018, up about 2% from the $1.29 billion for Q1 2018. The REIT reporting the highest EBITDA for Q2 2018 was Hines Global REIT, Inc., with $88.92 million, followed by Blackstone REIT with $82.04 million.

How many nontraded REITs have acquired light industrial properties since January 2018?

August 30, 2018

Answer: Five nontraded REITs have completed ten transactions to acquire warehouse/distribution centers encompassing a combined 25.3 million square feet of leasable area. The REITs and the number of transactions include Black Creek Industrial REIT IV (3), RREEF Property Trust (3), Griffin Capital Essential Asset REIT (2), Cole Real Estate Income Strategy (Daily NAV) (1), and Blackstone REIT (1).

Which nontraded REIT had the highest percentage of its distributions reinvested pursuant to its distribution reinvestment program in Q2 2018?

August 28, 2018

Answer:  JLL Income Property Trust Inc. had the highest percentage of its distributions reinvested in Q2 2018 at 65%.  Other REITs with a high percentage of distributions reinvested:  Hartman vREIT XXI, Inc. (63%), Blackstone REIT, Inc. (62%), Resource Real Estate Opportunity REIT, Inc. (61%), CNL Healthcare Properties II, Inc. (59%) and Black Creek Industrial REIT IV Inc. (58%).

Which four nontraded REITs have very low vulnerability to rising interest rates?

August 8, 2018

Answer: These four nontraded REITs have very low vulnerability to rising interest rates because they each have less than 10% of debt maturing in 2018 or 2019 and less than 10% of total debt at unhedged variable interest rates as of March 31, 2018: American Realty Capital New York City REIT, Inc.; Highlands REIT, Inc.; Inland Residential Properties Trust, Inc.; and Rodin Global Property Trust, Inc.

According to a filing with the SEC, what is the name of a limited partnership in Israel that owns over $100 million in nontraded REIT shares in the United States and recently concluded a tender offer for shares of Cole Office & Industrial REIT (CCIT II), Inc.?

August 1, 2018

Answer: Comrit Investments Ltd. is a real estate investment fund that was formed in 2015 and currently owns over $100 million in nontraded REIT securities in the United States. On July 30, 2018, the company accepted 56,691 Class A shares that were tendered and following the purchase of all of the tendered shares will own an aggregate of approximately 667,217 Class A shares in the REIT.

Which nontraded REITs have listed a portion of their common shares and delayed the listing of the remaining shares for up to 18 months to reduce potential selling pressure on the first listing date?

July 25, 2018

Answer: Whitestone REIT in 2012; Inland Western Retail Real Estate Trust, Inc. in 2013; Healthcare Trust of America, Inc. in 2013; Catchmark Timber Trust, Inc. (formerly Wells Timerland REIT, Inc.) in 2015; and American Finance Trust, Inc. in 2018.

On July 19, 2018, American Finance Trust, Inc. listed only Class A shares, with Class B-1 and Class B-2 to become Nasdaq-listed Class A shares in 90 and 180 days, respectively.

What is the median debt ratio for open and closed nontraded REIT programs?

July 19, 2018

Answer: The median debt ratio for all open nontraded REIT programs as of March 31, 2018, was 39%, compared to a median debt ratio of 45% as of March 31, 2017.  The median debt ratio for all closed nontraded REIT programs as of March 31, 2018, was 51%, compared to a median debt ratio of 48% as of March 31, 2017.

Which three nontraded REITs have the most total assets?

July 5, 2018

Answer: As of March 31, 2018, among all nontraded REITs, Blackstone Real Estate Income Trust, Inc. had the most total assets at $6.95 billion. Next was Cole Credit Property Trust IV, Inc. at $4.70 billion in total assets. Ranking third in total assets among nontraded REITs was Corporate Property Associates 17 - Global Incorporated at $4.59 billion.

What was the total nontraded REIT distributions payout in Q1 2018?

June 20, 2018

Answer: Total distributions paid by 56 nontraded REITs in Q1 2018 was $1.307 billion. Of that total, Carter Validus Mission Critical REIT paid $588.4 million via special liquidating distributions. Excluding Carter Validus Mission Critical REIT from total distributions paid by 55 nontraded REITs in Q1 2018 results in a total of $720.6 million compared to Q1 2017’s $659.6 million.

Which nontraded REIT repurchased the most common shares during Q1 2018?

June 12, 2018

KBS Real Estate Investment Trust III, Inc. repurchased more of its common shares than any other NTR in Q1 2018. The REIT repurchased 5,151,510 shares in the quarter ended March 31, 2018. Next was Carter Validus Mission Critical REIT, Inc. which repurchased 4,447,367 shares for the quarter. Hines Global REIT, Inc. repurchased 3,658,316 shares.

What percentage of nontraded REIT debt will mature during 2018?

June 7, 2018

Debt maturing during the fiscal year 2018 was 9.8% of the total debt for nontraded REITs reporting as of March 31, 2018.  Debt maturing during the fiscal year 2017 was 11.2% of the total debt for nontraded REITs reporting as of the year-earlier March 31, 2017.

What portion of nontraded REIT total debt is at fixed rates?

June 5, 2018

For 60 nontraded REITs reporting total debt at March 31, 2018, the portion of total debt that was at fixed rates, including debt that was hedged utilizing interest rate swaps, was 62.2%. For the year-earlier quarter ended March 31, 2017, 62 nontraded REITs reported 60.5% of all debt as having fixed rates.

Of the 4 nontraded REITs in the Blue Vault Liquidating LifeStage, American Finance Trust, InvenTrust Properties, KBS Legacy Partners Apartment Trust, and Lightstone Value Plus Real Estate Investment Trust V (formerly Behringer Harvard Opportunity REIT II), which REIT has the strongest interest coverage ratio?

May 24, 2018

Answer: Of the 4 Liquidating LifeStage REITs, Lightstone Value Plus Real Estate Investment Trust V has the healthiest interest coverage ratio at 7.7X.  However, each of the other 3 Liquidating LifeStage REITs also has what is considered to be a healthy interest coverage ratio; American Finance Trust at 3.4X, Inventrust Properties at 7.0X, and KBS Legacy Partners Apartment Trust at 2.0X.  According to industry analysts, a 2.0X interest coverage ratio, meaning operating income is at least twice interest expense, is generally considered to be in the healthy category.      
 
Furthermore, while American Finance Trust is paying a distribution yield of 5.20%, its MFFO payout ratio of 131% means it is not covering those distributions completely.