Nontraded REIT Sales Slide in January 2017 While BDC Sales Edge Upward
February 13, 2017 | by James Sprow | Blue Vault
Equity capital raised by open nontraded REIT programs in January 2017, appear to have fallen 24% from December 2016, according to sales figures reported by Blue Vault. The 27 effective nontraded REITs, sales for all share classes, including DRIP proceeds, totaled $273 million in January 2017, compared to $359 million in December 2016. A new entrant, Blackstone Real Estate Income Trust, Inc., was not included in the reported totals. In an 8-K filing with the SEC on January 4, Blackstone reported breaking escrow with $279 million in IPO proceeds, all in Q4 2016. If Blackstone REIT had sales comparable to their pace in Q4 2016, the industry nontraded REIT sales in January would be higher by a significant amount. Still, compared to January 2016, nontraded REIT capital raise for effective programs, excluding Blackstone REIT, were down 32% year-over-year.
The top five programs raising equity capital in January 2017 were:
| Griffin Capital Essential Asset REIT II, Inc. | $38,338,081 |
| (Intentionally left blank) | $35,589,856 |
| Carter Validus Mission Critical REIT II, Inc. | $21,257,123 |
| Griffin-American Healthcare REIT IV, Inc. | $19,288,927 |
| Industrial Property Trust, Inc. | $18,037,490 |
BDCs showed a slight 3% increase in sales, from $70.1 million in December 2016 to $72.4 million in January 2017. The top five BDC programs raising equity capital in January 2017 were:
| FS Investment Corporation IV | $23,680,000 |
| (Intentionally left blank) | $16,333,156 |
| FS Investment Corporation III | $11,530,000 |
| HMS Income Fund, Inc. | $5,832,251 |
| Corporate Capital Trust II, Inc. | $4,983,197 |
Blue Vault compiles sales each month for nontraded REITs, BDCs, Closed End Funds, Private Placements and Interval Funds. Reported sales are verified each quarter for any program that files financial reports with the SEC. The reported figures are estimates and should not be relied upon as 100% accurate.
