NTR Sales Up 17% in August While BDC Sales Increase 36%
September 14, 2017 | Luke Schmidt | Blue Vault
Sales by nontraded REITs increased 17% in August compared to July. August sales of $288.9 million reported to Blue Vault by nontraded REIT sponsors grew from $246.9 million in July. Despite this increase, August sales were below the trailing six-month average for nontraded REIT sales of $357.6 million. A drop in sales during the summer is not unusual for the industry and was also observed in 2016.
BDC sales reported in August were $57.4 million, up 36% from $42.2 million in July, but below the $64.5 million trailing six-month average for BDCs.
Blackstone REIT’s reported sales in August were $147.8 million, up 68% from the $87.9 million in July. The Blackstone REIT sales constituted 51% of reported nontraded REIT sales in August, up from the 36% share of nontraded REIT industry sales in July and 37% in June.
Blue Vault’s Managing Partner, Stacy Chitty, commented, “while sales continue to remain low for nontraded REITs, relative to the past several years, most importantly, ongoing operating performance seems to remain strong, according to the Blue Vault 2nd quarter NTR Review. Nontraded REITs on average are covering their interest on debt well and have strong FFO payout ratios (105%). They’re not raising the capital they’d like to be raising, and they’re not garnering the same attention as in years past, but they keep plugging away and chugging along still the same. Reminds me of the ‘little engine that could’.”
Among leading sponsors in the nontraded REIT sector in August following Blackstone’s $147.8 million were:
- Carter Validus $37.9 million
- Griffin Capital $30.6 million
- Cole Capital $22.1 million
- Hines Securities $14.8 million
Leading sponsors in the BDC sector for August sales were FS Investments ($28.6 million) and Owl Rock Capital Advisors ($7.6 million).
View Q2 2017 Sales by Sponsor and REIT.
