NTR Sales Down 8.5% in May While BDC Sales Increase 14%

June 14, 2017 | by James Sprow | Blue Vault

Sales by nontraded REITs fell 8.5% in May. The April sales of $332.6 million reported to Blue Vault by nontraded REIT sponsors slowed to $304.7 million in May. BDC sales reported in May were $63.4 million, up from $55.7 million in April, but 17% below the $76.3 million monthly average for BDCs in Q1 2017. Blackstone REIT’s reported sales in May were $130.6 million, up from $104.7 million in April. The Blackstone sales constituted 43% of reported nontraded REIT sales in May, increasing from 31% of the nontraded REIT industry sales in April.

Blackstone REIT’s sales significantly impact the nontraded REIT sector’s results and were not reported to Blue Vault for our monthly sales reports in January and February, 2017. Blackstone REIT reported breaking escrow in their public offering on January 1, 2017, with sales to that date of approximately $279 million.

Among leading sponsors in the nontraded REIT sector in May following Blackstone ($130.6 million) were Griffin Capital, Carter Validus, Cole Capital and Dividend Capital, with $37.1 million, $29.3 million, $26.4 million and $22.8 million, respectively.

Leading sponsors in the BDC sector with May sales were FS Investments ($31.7 million), Owl Rock Capital Advisors ($8.2 million) and CION Investments ($6.2 million). 

All nontraded REIT and BDC sales are reported to Blue Vault each month by program sponsors, broken down by share classes and DRIP proceeds. For May, DRIP proceeds were about 1% of reported nontraded REIT sales, but 9% of total sales in April. DRIP proceeds vary month-to-month due to the payment of quarterly distributions by many nontraded REITs and reporting DRIP proceeds only one month per quarter.