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What is a “Subordinated Incentive Listing Distribution” and how is it calculated?

November 8, 2016

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What is a “Subordinated Incentive Listing Distribution” and how is it calculated?

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For 11 offerings of effective REITs as of September, 2016, the advisor is entitled to receive a listing incentive fee when the REIT’s common shares are listed on a national exchange of 15% of the amount over and above the “preferred return” rate defined as the non-compounded return to shareholders in excess of a hurdle rate based upon the market value of the listed shares plus distributions over the life of the REIT.

Learn more about these 11 offerings in our new Nontraded REIT Fee Study.


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The first Blue Vault Nontraded REIT Fees Study provides in-depth analysis of all fees associated with nontraded REIT investments currently offered, including definitions of the fees, how the fees impact shareholder returns, and a complete data set with each of the REIT’s share class fees as well as ranges, averages, and medians for the industry.

This study is the first of its kind to be a comprehensive view of the fee structures of nontraded REIT offerings, and the first to analyze the impacts of those fees on eventual shareholder returns. As the industry evolves with new share classes and class-specific expense allocations, such as the shareholder servicing fees assessed to Class T shares, it is more important than ever to understand how fees are calculated, assessed and will impact shareholders. The study provides both a glossary of terms as well as extensive tables and appendices with specific examples from the prospectuses of nontraded REITs. It also examines historical trends from closed offerings to identify how current offerings compare to those of the past.

The Nontraded REIT Fee Study is available beginning November 9th, at no charge to new and existing Financial Advisor subscribers. If you are a Financial Advisor that is not currently a Blue Vault NTR Subscriber, please contact Dawn McDaniel with Blue Vault by email or phone at 678-456-4787 for more information on pricing.

If you are a sponsor, Broker Dealer, real estate investment company, investment bank or any other entity other than a financial advisor with a retail book of business or a retail investor, please contact Brooke Heffington with Blue Vault by email or phone at 678-456-4290 for more information on pricing.

Go Back
Gregory De Jong, CFP, Co-Founder of Paragon Advisors, LLC.
July 7, 2015

Blue Vault is just what advisors need to size up the different offerings in the nontraded REIT market. Just as importantly, it’s what the industry needs to encourage best practices among REITs.