January 2021 Nontraded REIT Capital Raise Decreases 26% for Reporting Offerings

February 17, 2021 | James Sprow | Blue Vault

Blue Vault received January sales totals for 10 effective nontraded REIT program offerings as of February 11, 2021. Sales reported by those 10 NTRs totaled $137.73 million compared to $186.86 million for 12 reporting REITs in December, a decrease of $49.13 million, or 26%. Cantor Fitzgerald has yet to report the January sales for their two sponsored nontraded REITs. Cottonwood Communities did not have sales in January.  Four additional nontraded REITs have previously suspended their offerings or did not report sales for December (Griffin Capital Essential Asset REIT, Moody National REIT II, InPoint Commercial Real Estate Income, and Strategic Storage Trust IV).

Hines Global Income Trust’s offering led the 10 reporting NTRs with sales of $43.13 million, up 104% from $22.14 million in December, a month that brought the REIT’s 2020 total sales to $218.65 million, down 45% from the total for 2019 when the REIT raised $398.95 million. Black Creek Industrial REIT IV raised $41.10 million in January, down 9.4% from $41.10 million in December, a month that brought the REIT’s total for 2020 to $975.73 million, up 224% from $301.12 million in 2019. FS Investments raised $16.63 million for its FS Credit Real Estate Income Trust in January, down 44% from its December total of $29.82 million. Jones Lang LaSalle Income Property Trust raised just $12.95 million, down 78% from December when it raised $59.32 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 January 2021.

Table I

Table II shows January Y-O-Y comparisons for 17 nontraded REITs that have reported sales either in January 2020 or January 2021, or both. The only Y-O-Y increases among those REITs that were raising capital in January 2021 were for Hines Global Income Trust (up 22%) and Nuveen Global Cities REIT (up 5%).

Table II 

Nontraded BDC Sales

Just one nontraded BDC was raising funds in January 2021 and reported sales to Blue Vault. Owl Rock Capital Corporation II raised $19.44 million, down 55% from $43.24 million in December. MacKenzie Realty Capital reported nontraded BDC sales in October of $48,700 but did not report sales for November thru January.  Triton/Prospect’s TP Flexible Income Fund reported sales for October of $25,000 but did not report sales for November thru January. The total capital raise reported by the only nontraded BDC for January 2021 was $19.44 million, all by Owl Rock Capital Corporation II compared to $66.58 million reported by three BDCs for January 2020, a decrease of 71%.

Nontraded Preferred Stock Issued by Reporting Sponsors

Five listed REITs reported their nontraded preferred stock issuances in January 2021 to Blue Vault. Bluerock Residential Growth REIT issued $29.82 million of its preferred stock in January, up 2% from $29.22 million in December. Preferred Apartment Communities issued $16.17 million in two series of preferred shares in December, up 37% from the $11.77 million issued in December. Prospect Capital issued $3.25 million of nontraded preferred in December, down 69% from $10.41 million issued in December. Gladstone LAND and Gladstone GOOD issued a total of $3.15 million in nontraded preferred in January 2021, down from $7.94 million in December. Altogether, the five companies reported issuing $52.39 million in nontraded preferred shares in January, down 16% from the total for the six listed REITs of $62.50 million in December.

Table III

Source:  Blue Vault