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Among Maturing LifeStage nontraded REITs as of March 31, 2016, which REIT had the most properties and which REIT had the fewest property investments?

September 12, 2016

Among Maturing LifeStage nontraded REITs as of March 31, 2016, which REIT had the most properties and which REIT had the fewest property investments?

LifeStages_ImageAnswer:  Cole Credit Property Trust IV, Inc. (879 properties) and American Realty Capital New York City REIT, Inc. (five properties) respectively.

Maturing

A maturing nontraded REIT’s acquisition and debt strategy is crucial. By this time, the REIT owns at least 30 properties, has been in existence for four to eight years, and has more than $500 million in assets under management. The REIT will start tweaking the composition of the portfolio by selling certain properties (dispositions) and targeting acquisitions that will enhance the portfolio.

Distribution coverage is generally 90% to 200% — much more palatable than in the earlier phases. Debt levels are a manageable 25% to 55%. Debt costs should be lower at this point, and the REIT will use a sophisticated blend of fixed and variable rate debt, secured and unsecured instruments, and senior debt and bonds. This debt structure should carry the REIT through the remainder of its life-cycle.

Learn more about the Blue Vault LifeStages™

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Derek Hayes
Blue Vault's Services
April 14, 2016

BlueVault saves a lot of time and effort in obtaining good numbers for analysis and provides good insights to compare against my own.